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India is mulling financial support towards development of processing facilities for critical minerals such as lithium, apart from eyeing acquisition of mines and exploration activities overseas. The Mines Ministry is also eyeing ways to help financing such overseas acquisitions by state-owned entities and private companies.
- Also read: A strategy for securing critical minerals
A “whole of government approach” would mean handholding will be done for PSUs under other Ministries like Steel, Power and Coal; apart from facilitating access to private companies for acquisition of mines overseas, a senior official aware of the discussions told businessline.
It will work with the Ministry of External Affairs (MEA) for “development of mineral evacuation infrastructure” too.
Lithium blocks
India acquired five lithium blocks in Argentina recently, and is carrying out due diligence for the mineral in Australia and in LatAm nations like Chile.
Representatives of several African nations have sought a meeting with ministry officials for exploration and investment opportunities there for minerals like copper, cobalt, lithium, among others. Some of the African nations include Zimbabwe, Congo, Kenya, Tanzania, among others.
- Also read: Supreme Court ruling could inflict ₹1 lakh crore hit on mining sector, says Mines Ministry
National Critical Mineral Mission Underway
Under the proposed National Critical Minerals Mission, preparation for which is under-way, the Centre will provide targeted subsidies for mining and for setting up evacuation infrastructure.
“An incentive scheme for setting up mineral recycling is being explored and will soon be introduced,” the official said. Ministry officials met industry participants and have been taking feedback before finalising Mission details.
The Mission components will also include a PLI scheme for mineral recycling, and push for having pilot projects that will look at recovery of critical minerals from over-burden. Timelines will be decided later.
As part of the proposed Mission, attempts will be made towards securing loans from multilateral financial institutions; while there will be Budgetary provisions for securing foreign and domestic source of critical minerals.
“Discussions are on with the industry on how to go about the various components of the critical mineral mission. So there are fund allotment or monetary announcement that has been made. As we put out a second draft, there will be more clarity on timelines, funding, and so on,” the official said.
Upping Domestic Exploration
Thrust will also be on upping domestic critical mineral production and upping exploration activities. This will include fast-tracking of clearances and auction processes.
A Budgetary allocation of ₹400 crore for FY25 has been made – up 66 per cent over FY24’s ₹300 crore – as part of the focus on increasing exploration activities, especially for critical minerals.
“If necessary, this allocation will be increased as details under the National Critical Minerals Mission are finalised,” the official said.
In fact, Union Mines Secretary, VL Kanta Rao, during a recent inter-ministerial meeting of the National Mineral Exploration Trust (NMET) hjad said lithium exploration work is being expedited (in Jammu and Kashmir and elsewhere).
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