India’s lower house of Parliament (Lok Sabha) has recently passed the Mines and Mineral (Development and Regulation) Amendment Bill, marking a significant shift in the country’s mining sector. The new amendment allows private companies to participate in the mining of critical minerals, including lithium, which is a crucial element used in electric vehicle batteries.
Previously, the mining of lithium and other critical minerals was exclusively reserved for state-owned companies. However, with the passing of the amendment, private players will now have the opportunity to tap into the country’s lithium reserves and contribute to the development of India’s green energy sector.
In addition to lithium, the bill also removes restrictions on five other minerals, namely beryllium, niobium, titanium, tantalum, and zirconium, further opening up opportunities for private mining ventures.
The main objective of this amendment is to stimulate economic development and enhance national security by encouraging exploration and mining activities related to critical minerals. India recognizes the importance of these minerals for the country’s transition towards sustainable energy sources and aims to leverage the expertise and resources of private companies to accelerate this transition.
To facilitate the exploration and prospecting of deep-seated and critical minerals, the bill proposes the introduction of exploration licenses, which will be allocated through auctions. Junior mining companies will be able to undertake reconnaissance and prospecting operations based on available baseline survey data, potentially leading to the development of new mines and contributing to the growth of the sector.
The Union Cabinet had previously approved the amendment, emphasizing the pivotal role of critical minerals in India’s green energy ambitions. With the passage of the Mines and Mineral (Development and Regulation) Amendment Bill, India expects to attract private investment and expertise to bolster its mining industry and support the country’s transition to sustainable and environmentally-friendly energy sources.
Check out more Battery Mining news!