Bill to allow the private sector to mine lithium and five other atomic minerals has been passed in the Parliament

On August 2, 2023, the Rajya Sabha passed a bill that would permit the private sector to mine six of the twelve atomic minerals, including lithium, as well as deep-seated minerals like gold and silver.

Union Minister for Coal and Mines, Mr. Pralhad Joshi moved the Mines and Minerals (Development and Regulation) Amendment Bill, 2023.

The bill read, "The mineral sector requires certain more reforms, particularly for increasing exploration and mining of critical minerals that are essential for economic development and national security in the country.”

The bill suggests amending the law to restrict exploration licences for deep-seated and critical minerals. This licence will be awarded through an auction in order to undertake operations for prospecting and reconnaissance.

Additionally, the bill gives the central government the exclusive right to put up for auction mining permits and composite licences for specific critical minerals.

When compared to bulk or surficial minerals, deep-seated minerals such as gold, silver, copper, zinc, lead, nickel, cobalt, platinum group minerals, diamonds, etc., are more difficult to explore and mine.

With the amended bill, which was passed by the Union Cabinet earlier this month, companies would be able to designate areas they want to explore and potentially mine in India. This is a deviation from the standard practice, in which mines or blocks are identified by the government and put up for auction.

In light of India's commitment to the energy transition and its goal of achieving net-zero emissions by 2070, critical minerals have increased importance.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.