Commercial mining of critical minerals approved
GS Paper - 2 (Polity)
The Union Cabinet approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957, that will pave the way for commercial mining of six critical minerals — lithium, beryllium, niobium, tantalum, titanium and zirconium — and deep-seated minerals like gold, silver and copper.
More about the News
Currently, commercial mining of these critical minerals by private companies is prohibited. Only government agencies were allowed in exploration and mining operations.
These minerals are key components of all modern technologies and go into the making of mobile phones, electric vehicles, solar panels, semiconductors, and wind turbines, among others.
In February this year, the Geological Survey of India discovered a 5.9-million-tonne reserve of lithium in Jammu & Kashmir’s Reasi district.
The amendments, once cleared by Parliament, will also allow the government to grant a single exploration licence to companies through auction.
This is expected to be a big incentive for private companies, especially junior mining companies involved in exploration operations.
This will allow companies a seamless process — from conducting reconnaissance (exploration) and prospecting operations (undertaken for the purpose of exploring, locating or proving the presence of mineral deposit) to finally getting the rights to mine a mineral resource, once it is discovered and the mine is auctioned.
Currently, the MMDR Act grants private companies a mining lease and a composite licence through an auction for conducting exploration and mining.
Flashback
The government is currently giving composite licences in a smaller area (up to 25 square kilometres).
But in the amendments, the ministry has proposed giving an exploration licence for a larger area of up to 5,000 sq km of a single block. The total area with one entity will not exceed 10,000 sq km.
The MMDR Act regulates the mining sector in India and mandates the requirement for granting leases for mining operations. This is the fifth time that the MMDR Act, 1957, will be amended.
India is dependent on China and other countries to meet its requirement of critical minerals including Rare Earth Elements (REE), which are the building blocks of modern-day technologies.
#upsc #news #union #commercialmining #criticalminerals #technologies #mmdr #geologicalsurvey #exploration #earth #elements #india #dependent
GS Paper - 2 (Polity)
The Union Cabinet approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957, that will pave the way for commercial mining of six critical minerals — lithium, beryllium, niobium, tantalum, titanium and zirconium — and deep-seated minerals like gold, silver and copper.
More about the News
Currently, commercial mining of these critical minerals by private companies is prohibited. Only government agencies were allowed in exploration and mining operations.
These minerals are key components of all modern technologies and go into the making of mobile phones, electric vehicles, solar panels, semiconductors, and wind turbines, among others.
In February this year, the Geological Survey of India discovered a 5.9-million-tonne reserve of lithium in Jammu & Kashmir’s Reasi district.
The amendments, once cleared by Parliament, will also allow the government to grant a single exploration licence to companies through auction.
This is expected to be a big incentive for private companies, especially junior mining companies involved in exploration operations.
This will allow companies a seamless process — from conducting reconnaissance (exploration) and prospecting operations (undertaken for the purpose of exploring, locating or proving the presence of mineral deposit) to finally getting the rights to mine a mineral resource, once it is discovered and the mine is auctioned.
Currently, the MMDR Act grants private companies a mining lease and a composite licence through an auction for conducting exploration and mining.
Flashback
The government is currently giving composite licences in a smaller area (up to 25 square kilometres).
But in the amendments, the ministry has proposed giving an exploration licence for a larger area of up to 5,000 sq km of a single block. The total area with one entity will not exceed 10,000 sq km.
The MMDR Act regulates the mining sector in India and mandates the requirement for granting leases for mining operations. This is the fifth time that the MMDR Act, 1957, will be amended.
India is dependent on China and other countries to meet its requirement of critical minerals including Rare Earth Elements (REE), which are the building blocks of modern-day technologies.
#upsc #news #union #commercialmining #criticalminerals #technologies #mmdr #geologicalsurvey #exploration #earth #elements #india #dependent
Today's Headlines - 01 August 2023
Lok Sabha passes MMDR Amendment bill
GS Paper - 2 (Polity)
The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 was taken up for consideration and passed by the Lok Sabha. This bill proposes to empower the Central government to exclusively auction mining lease and composite licence for 26 critical minerals in the country.
More about the Amendment
This amendment to the Mines and Minerals (Development and Regulation) Act, 1957, “would facilitate, encourage and incentivise private sector participation in all spheres of mineral exploration for critical and deep-seated minerals”. Under the existing framework, state governments auction mining blocks.
Even in case of conduct of auction by the central government, the mineral concession shall be granted to the selected bidders by the state government only and the auction premium and other statutory payments shall accrue to the state government.
According to the statement of objects and reasons for the bill, it would help hasten the pace of auction and early production of critical minerals such as lithium, cobalt, and graphite that are crucial for electric vehicles and batteries.
Nickel, platinum, and tin-bearing minerals are also among the 26 that are proposed to be brought under the ambit of the central government.
This would be the Fifth Amendment to the MMDR Act since 2014. Earlier changes included mandating e-auction for mineral resources, and allowing extension of mining leases which were expiring.
#upsc #news #loksabha #MMDR #amendnent #bill #polity #mines #minerals #development #central #goverment #critical #goverments #statutory #exploration #lithium #cobalt #grapite #nickel #platinum #resources #leases #private #sector
Lok Sabha passes MMDR Amendment bill
GS Paper - 2 (Polity)
The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 was taken up for consideration and passed by the Lok Sabha. This bill proposes to empower the Central government to exclusively auction mining lease and composite licence for 26 critical minerals in the country.
More about the Amendment
This amendment to the Mines and Minerals (Development and Regulation) Act, 1957, “would facilitate, encourage and incentivise private sector participation in all spheres of mineral exploration for critical and deep-seated minerals”. Under the existing framework, state governments auction mining blocks.
Even in case of conduct of auction by the central government, the mineral concession shall be granted to the selected bidders by the state government only and the auction premium and other statutory payments shall accrue to the state government.
According to the statement of objects and reasons for the bill, it would help hasten the pace of auction and early production of critical minerals such as lithium, cobalt, and graphite that are crucial for electric vehicles and batteries.
Nickel, platinum, and tin-bearing minerals are also among the 26 that are proposed to be brought under the ambit of the central government.
This would be the Fifth Amendment to the MMDR Act since 2014. Earlier changes included mandating e-auction for mineral resources, and allowing extension of mining leases which were expiring.
#upsc #news #loksabha #MMDR #amendnent #bill #polity #mines #minerals #development #central #goverment #critical #goverments #statutory #exploration #lithium #cobalt #grapite #nickel #platinum #resources #leases #private #sector