The Union Ministry of Mines announced on December 15, that it will directly sanction exploration projects to notified private exploration agencies (NPEAs) for critical and deep-seated minerals, so as to give impetus to exploration of such crucial minerals.
As per a release from the Ministry, it has also allowed the notified private exploration agencies to bid for auctions for mineral blocks explored by them, which was not allowed earlier.
The decision to allow NPEAs to directly submit projects in Ministry of Mines will help in cutting out delays in sanction of projects as well as help in faster execution of projects, the Ministry asserted.
“Further, the provision to allow these exploration agencies in bid to auction the explored mineral blocks by them will attract bigger companies in mining in the exploration arena. This provision is also expected to encourage junior mining companies from around the world to come to India and take up exploration projects with NMET funding,” it said.
The Mines and Minerals (Development and Regulation) Act, 1957, MMDR Act was amended in 2021, empowering the Union Government to notify entities, including private entities, that may undertake prospecting operations.
So far, a total of 16 private exploration agencies were notified to take up exploration projects through State Governments, funded by NMET (National Mineral Exploration Trust).
17 projects to five NPEAs for Rs 15.88 crore have been sanctioned from NMET funds so far. Out of those 17 projects sanctioned so far, 11 are of critical minerals, the Ministry said in the release.
Notably, India in June this year identified 30 critical minerals taking into account its requirements for sectors like defence, agriculture, energy, pharmaceutical, and telecom and in line with its Atmanirbar (self-reliance) roadmap.
Those critical minerals are Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.
Critical minerals are those minerals that are essential for economic development and national security.
The Ministry of Mines had constituted a seven-member Committee under the chairmanship of Joint Secretary (Policy), Ministry of Mines in November 2022 to identify the list of minerals critical. The Committee had a series of deliberations among the members and decided to arrive at the list.
“Recently, through an amendment in the MMDR Act on August 17 2023, 24 minerals such as Graphite, Nickel, PGE, REE, Potash etc. were notified as Critical and Strategic minerals by Ministry of Mines,” the mines Ministry release added.
(with inputs from ANI)
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