Critical Minerals

ndia has launched its first-ever auction for Exploration Licenses (EL) for critical minerals under the EL regime. These licenses were introduced following the enactment of the MMDR Amendment Act, 2023, allowing private participation in the exploration and prospecting of 29 critical and deep-seated minerals.

The auction will cover 13 Exploration License blocks, targeting essential minerals such as Rare Earth Elements, Zinc, Copper, and Diamond. The primary objective of this auction is to accelerate mineral discovery, attract investment, reduce imports, and support the clean energy sector and industry growth.

About Critical Minerals
Critical minerals are essential for economic development and national security. A shortage of these minerals can lead to vulnerabilities in supply chains and potential disruptions.
The Mines and Minerals (Development and Regulation) Act (1957) gives the central government the authority to auction mining leases and composite licenses for critical minerals.

Applications of Critical Minerals

• Clean Technologies: For example, Cobalt is used in electric vehicle batteries, corrosion-resistant alloys, and more.
• Information and Communications: Gallium is used in semiconductors, integrated circuits, and LEDs.
• Advanced Manufacturing: Hafnium is used in super alloys, catalyst precursors, and other applications.

Concerns Related to Critical Mineral Mining

• Improper mining practices can severely pollute and deplete water resources.
• 16% of critical mineral mines, deposits, and districts are located in water-stressed areas.
• High exploration costs and limited investment.
• Geopolitical issues, such as the political instability affecting mining industries in Chile and Peru, pose risks.

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