Representative file image. , Photo credits: R. Ragu
To counter India’s dependence on China for import of critical rare earth minerals, the industry has urged the government to encourage private sector mining in the region and diversify sources of supply for these strategic raw materials .
The Confederation of Indian Industry (CII) suggested, “Set up an ‘India Rare Earths Mission’ run by professionals like the India Semiconductor Mission and make their exploration an important component of the government’s Deep Ocean Mission plan.” Steps to encourage private companies for mining of such minerals.
Though India has 6% of the world’s rare earth reserves, it produces only 1% of global production, and meets most of its requirements of such minerals from China, industry groups said in a recent Union Budget suggestion. In a memorandum of Finance Ministry.
‘broad-base supply’
For example, in 2018-19, 92% of rare earth metal imports by value and 97% by volume were sourced from China. “Clearly such an important and strategic raw material requires domestic capacity and broad base supply sources,” CII said, making a pitch for the country to harness the potential of its rare earth reserves.
Suggesting that such minerals should not be put under India’s civil nuclear programme, the industry body has recommended that Indian Rare Earths Limited (IREL), a public sector firm administered by the Department of Atomic Energy, be split into two entities. needed. While IREL primarily focuses on thorium mining, CII has suggested that a second unit could pursue other minerals.
The industry group has also considered making rare earth minerals a part of the ‘Make in India’ campaign, citing China’s ‘Made in China 2025’ initiative, which focuses on new materials including permanent magnets made using rare earth minerals. is concentrated.
China offers state support for the industry.