The Cabinet has reportedly cleared amendments to the Mines and Minerals (Development and Regulation) Act, 1957, to allow commercial mining of lithium and other critical minerals, including beryllium, titanium, niobium, tantalum and zirconium, said sources aware of the developments.

The amendment effectively paves the way for withdrawal of the ban on lithium mining by private players and also on these other critical minerals.

“All these mineral blocks will be auctioned,” an official aware of the developments told businessline.

Lithium, a non-ferrous, alkali metal, is a key component for electric vehicles, batteries and other energy storage solutions. Other minerals like beryllium find usage in aerospace, defence, IT, telecommunications and so on; titanium is used in mobile phones, bicycles, prosthetics; niobium is used in jet engines and rockets; tantalum finds usage in electrolytic capacitors and corrosion resistant chemicals; and zirconium is used primarily in fabrication and as an alloying agent.

Also read: Should India join the lithium battery race?

Those aware point out that the amendment to MMDRA will lead to relaxation of area required to be mined for lithium. Area to be mined will be brought down to 50 hectares, from 100 hectares.

According to an official, changes to the Act will incentivise private sector participation in all spheres of mineral exploration, with a focus on precious and critical ones.

Mining companies are likely to get exploration rights on the basis of available baseline survey data. These companies explore the area from the reconnaissance stage and bring it up to the level required for starting mining operations.

India’s Lithium Find

India has so far declared 5.9 million tonnes of lithium reserves in the Salal Hamima region, in Resai district, of Jammu and Kashmir. Further exploration is also ongoing in the region, Mines Ministry officials said. Auction of these declared reserves is likely around December, and the ministry is also in the process of working out the reserve price of lithium.

Incidentally, India has been import dependent on some of these key critical minerals like lithium, nickle, copper, cobalt and others. In FY23, India’s lithium import bill was around ₹23,171 crore; and covered electric accumulators, including separators. In FY22, imports for lithium ion was ₹13,673.15 crore.

Also read: India exploring investment in lithium mines overseas: Minister Pralhad Joshi

In June, the Mines Ministry compiled the first ever report on identification of Critical Minerals for India. Some 30-odd critical minerals identified that include the likes of titanium, tungsten, vanadium, zircon, niobium, germanium, nickel, graphite, silicon, antimony, beryllium, bismuth, among others.

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