The impetus should originate in states: Union minister Pralhad Joshi

In an interview with Nitin Kumar, Union Minister Pralhad Joshi says the government has taken proactive steps to develop a secure supply chain for critical minerals

India’s first ever critical mineral auction will commence soon. The Centre is hopeful of wide industry participation and reducing import dependence in the green-energy sector for minerals such as lithium, cobalt, and nickel. In an interview with Nitin Kumar, Union Minister for Coal, Mines, and Parliamentary Affairs Pralhad Joshi says the government has taken proactive steps to develop a secure supply chain for critical minerals. Edited excerpts:

How much industry participation is expected for India’s maiden onshore and offshore critical minerals mining?

Industry has shown a keen interest in auction. Representatives of around 68 companies, which included some international players, participated in the roadshow and pre-bid meeting in December.

We have initiated the auction process for 20 onshore critical and strategic mineral blocks, set to conclude by March. Regarding offshore minerals, we have introduced an auction regime under the Offshore Areas Mineral (Development and Regulation) Act, 2023. The inaugural auction for offshore minerals is scheduled for around March next year.

While discussions about offshore mining and critical mineral extraction are under way, we are importing bauxite and aluminium scrap, despite bauxite not being classified as a critical mineral. Our aim is to decrease our mineral import.

We possess gold resources domestically, and yet we continue importing it. Efforts are under way to encourage states to auction gold mines also.

Which policy changes expedited the critical mineral auctions?

We initiated a change in mine-clearance policies. In cases where the mining lease has expired but mineral reserves remain, we’ve enabled seamlessly transferring all leases and licences within the same area, avoiding the necessity of restarting the process. Moreover, we have eliminated the distinction between captive and non-captive mines.

To enhance efficiency, we are asking for constructing power plants closer to coal mines because it is easier to transport power than coal. Additionally, through amendments in legislation, we have emphasised exploration. The area under exploration is almost touching 200,000 square km out of 450,000 square km. Earlier lack of available data hindered participation, so we initiated a data repository.

We are providing funds for private exploration through the National Mineral Exploration Trust. Additionally, we allocate funds to state governments for procuring machinery and doing exploration.

Then why are just 17 blocks given exploration licences to private players?

The mindset of state governments and their officials needs to change. While we provide funds for exploration and offer policy support, the allocation of land is within the purview of state governments. I can take the horse to water, but I can’t make it drink. States such as Odisha, Madhya Pradesh, and Karnataka, which have begun proactive efforts, are reaping benefits. Andhra Pradesh is also progressing well. However, Karnataka has halted the process and is not issuing letters of intent (LoI).

The impetus should originate in the states. Rajasthan has potash, so I urged the new chief minister to take this opportunity.

Are there plans to trade mineral-processing technology with developed nations?

India has been inducted into the Mineral Security Partnership (MSP). It is negotiating mineral-processing technology within the India-US iCET program. Additionally, India has entered into agreement with Australia for cooperation in the mineral sector, which includes transferring mineral-processing technologies. We are also discussing technologies with countries.

Will processing facilities be developed in countries where mines are being acquired, or in India?

We are in the process of acquiring mines, and these specific details are yet to be finalised. My understanding is that we should focus on processing minerals. Rather than transporting raw mud or the entire lithium ore, we should transport only processed material. Countries rich in minerals are also advocating this approach.

Australia has expressed an interest in us bringing investment alongside industry.

How will you make mining activities ecological in the light of India’s energy transition goals?

It should be sustainable. Mining is happening across the world, not just in India. To achieve sustainability, we must strike a balance between the environment and our needs. We are addressing this and will continue to do so in the future.