NEW DELHI: The Union Cabinet on Wednesday approved the launch of the National Critical Mineral Mission with an expenditure of Rs 16,300 crore and an additional expected investment of Rs 18,000 crore by the public sector companies. The mission will be implemented under the ministry of mines for a period of seven years from FY25 to FY31.
“The expenditure on the mission will be Rs 16,300 crore out of which Rs 2,600 crore will be budgetary support. In addition, Rs 18,000 crore investment is expected by PSUs, etc,” the government said.
The decision comes amid the country’s focus on enhancing domestic critical mineral output and supply chain while reducing import dependency. In line with this, the government had announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25.
The government will boost domestic critical minerals production by expanding exploration and mining activities, with government agencies undertaking 1,200 exploration projects. Moreover, to scale up mining activities, the government has decided to auction more than 100 blocks of critical mineral resources by FY31.
Further, while boosting domestic exploration and output, the mission is also expected to support the mapping and detailed exploration of critical mineral assets in resource-rich countries.
“The government will motivate Central PSUs and encourage private sector companies to allocate funds for acquiring critical mineral assets overseas, empowering Central PSUs, their joint ventures, and subsidiaries to invest abroad by issuing necessary guidelines,” said the government.
Additionally, the government will provide targeted subsidies for mining and the establishment of evacuation infrastructure. The government said that KABIL, a joint venture of the Ministry of Mines, has acquired brine type lithium assets in Argentina for exploration and Development.
The government will also create four mineral processing parks to house mineral processing industries in order to build domestic critical minerals processing capabilities.
Pilot projects will also be set up for mineral recovery from various sources such as overburden, tailings, fly ash, red mud, existing mines etc, the government said.
“Appropriate fiscal measures will be developed to incentivise junior exploration and mining companies by introducing tax credits for investments in critical minerals exploration and development, aimed at reducing the financial burden on companies, and making investments more attractive and feasible,” it said.
The mission will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The mission aims to intensify the exploration of critical minerals within the country and in its offshore areas.
“It aims to create a fast track regulatory approval process for critical mineral mining projects. Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings,” the government said.
Under the mission, the government aims to encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries while developing a stockpile of critical minerals within the country.
Source: The Financial Express
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