Bill permitting private agencies to mine atomic minerals cleared
Parliament passed a bill allowing the private sector to mine key atomic minerals and deep-seated minerals in India. The move aims to reduce dependency on imports and promote exploration and mining of critical minerals, including lithium, gold, silver, copper, and zinc. The bill also introduces exploration licenses for deep-seated and critical minerals and removes certain minerals from the list of atomic minerals. The involvement of private agencies is expected to bring advanced technology, finance, and expertise to the sector.
Parliament on Wednesday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 that allows the private sector to mine key atomic minerals, including lithium, and deep-seated minerals such as gold, silver, copper and zinc.
The bill was passed by Rajya Sabha by a voice vote after Lok Sabha passed it on July 28. It has amended the Mines and Minerals (Development and Regulation) Act, 1957.
The discussion on the bill, which was moved by minister of coal and mines Pralhad Joshi, took place amid the Opposition staging a walkout, demanding a discussion on the situation in Manipur and a statement by Prime Minister Narendra Modi.
Until now, mining and exploration of all 12 atomic minerals was within the purview of state-owned entities.
One of the key reforms in the bill is to introduce exploration licences for deep-seated and critical minerals.
It also removes certain minerals from the list of atomic minerals – lithium, beryllium, titanium, niobium, tantalum and zirconium, which are technology and energy critical and have use in space industry, electronics, technology and communications, energy sector, electric batteries; and are critical in net-zero emission commitment of India, the ministry of mines said in a statement.
“Demand of minerals like lithium used in lithium-ion batteries is likely to increase manifold as the focus shifts towards clean energy. Currently, the country is dependent on imports for most of these important minerals as there is not much exploration or mining of these minerals due to existing legal provisions. These minerals have high economic importance and considerable supply risk due to geo-political uncertainties,” it added.
The removal of these minerals from the list of atomic minerals will open their exploration and mining to the private sector.
In his reply to the discussion on the bill, Joshi said the minerals are needed to build a new, modern India, and for the country to become a developed nation by 2047 (the centenary of India’s independence). He said India had been importing the minerals despite its rich, natural resources because of policy paralysis, corruption and nepotism in the past.
Involvement of private agencies in exploration would bring advanced technology, finance and expertise in exploration for deep-seated and critical minerals, the statement said.
