Govt announces Critical Mineral Mission to boost domestic output

Presenting Union Budget for 2024-25, Finance Minister Nirmala Sitharaman said the government will launch the auction of the first round of offshore mining blocks. Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential components in many of the rapidly growing clean energy technologies – from wind turbines and electricity networks to electric vehicles.

Demand for these minerals is on the rise as clean energy transition gathers pace. "We will set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets.”Its mandate will include technology development, skilled workforce, extended producer responsibility  framework, and a suitable financing mechanism," the finance minister said.

She also said the government will launch the auction of the first tranche of offshore blocks for mining, building on the exploration already carried out.

Offshore mining is the process of retrieving mineral deposits from the deep seabed, at a depth of more than 200 metres.

India is a net importer of critical minerals. In a bid to give a push to domestic mining, the mines ministry had last year passed the Mines and Minerals (Development & Regulation) Amendment Bill 2023, through which it can award exploration licences for deep-seated and critical minerals.

Last year, the government had released a list of 30 critical minerals. It includes antimony, beryllium, bismuth, cadmium, cobalt, copper, gallium, germanium, graphite, hafnium, indium, lithium, molybdenum, niobium, nickel, PGE, phosphorous, potash, REE (rare earth elements), tantalum, among others.