New Delhi: The Union Cabinet on Wednesday approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957, which will pave the way for commercial mining of six important minerals – lithium, beryllium, niobium, tantalum, titanium and zirconium – and deeper minerals . Like gold, silver and copper, ThePrint has learnt.
At present they are being mined commercially. important minerals Restricted by private companies. Only government agencies were allowed to carry out exploration and mining operations.
These minerals are key components of all modern technologies and are used to make mobile phones, electric vehicles, solar panels, semiconductors and wind turbines, etc.
Geological Survey of India in February this year discovered Reasi district of Jammu and Kashmir has reserves of 5.9 million tonnes of lithium.
The amendment, once approved by Parliament, will also allow the government to award single exploration licenses to companies through auctions.
This is expected to be a big boost for private companies, especially junior mining companies involved in exploration operations.
Government sources told ThePrint that this would allow companies a seamless process – from reconnaissance and prospecting operations (those aimed at discovering, locating or proving the presence of mineral deposits) to ultimately mining the mineral resource once till obtaining the right to mine. It is discovered and the mine is auctioned.
Currently, the MMDR Act provides a mining lease and a composite license through auction to private companies to conduct exploration and mining operations.
A government source said, “The single exploration license will encourage more private investment in the sector, where private presence is currently limited.”
The source said that the government is currently giving composite licenses in small areas (up to 25 square kilometers).
“But in the amendment, the ministry has proposed to grant exploration license for a larger area of up to 5,000 sq km of a block. The total area of a unit will not exceed 10,000 sq km,” said the source.
The MMDR Act regulates the mining sector in India and mandates the need to grant leases for mining operations. This is the fifth time that the MMDR Act, 1957 will be amended.
Commercial mining approved in offshore areas as well
The Union Cabinet on Wednesday also approved amendments to the Offshore Minerals (Development and Regulation) Act, 2002, which allows commercial mining of mineral resources in offshore areas.
At present, the private sector is not permitted to mine mineral resources in offshore areas, including territorial waters, continental shelf, exclusive economic zones and other maritime zones of India under the Territorial Waters, Continental Shelf, Exclusive Economic Zones and Other Maritime Zones Act. Are included. ,
Sources said both the amendment bills will be introduced in Parliament during the monsoon session beginning July 20.
In both the bills, the government last month identified 30 critical minerals it considers essential for economic development and national security, and India has joined. mineral security partnershipThe US-led coalition of 14 countries is expected to ensure self-reliance and address vulnerabilities in the supply chain of these critical minerals in India.
India is dependent on China and other countries to meet its requirement of critical minerals, including rare earth elements (REEs), which are the building blocks of modern technologies.
(Editing by Anumeha Saxena)