India to Auction Rare Earth Minerals to Meet Growing Domestic Demand
India is set to hold a significant auction in June, offering 20-30 blocks of strategically important minerals as the country's demand for essential resources continues to surge. Kantha Rao, the Secretary of the Ministry of Coal and Mines, highlighted this initiative in discussions with the *Financial Times*, noting the auction's crucial role in meeting India’s technological, economic, and climatic targets. The minerals to be auctioned include key components like graphite, molybdenum, nickel, cobalt, and lithium, integral to various industries, particularly in technology and renewable energy sectors.
The move follows legislative changes last summer that enhance the central government’s authority to grant concessions for rare earth minerals and prioritize auctions based on national requirements. This legal adjustment underscores India's strategic emphasis on securing a stable and self-reliant supply chain for these critical resources.
Additionally, India is actively encouraging domestic companies to expand their mineral resource development internationally, particularly in regions rich in essential minerals like South America and Africa. A notable development in this directive was the January agreement between state-owned Kabil and Argentine state-owned Camyen to explore and mine lithium in Argentina's Catamarca province, covering approximately 15,000 hectares.
Further expansion plans include potential mining projects in Chile, Bolivia, Namibia, the Democratic Republic of Congo, Zambia, Mozambique, and South Africa, signaling India's commitment to establishing a robust global footprint in mineral resource extraction.
Domestically, the discovery of two lithium deposits in the union territory of Jammu and Kashmir and the state of Rajasthan by the Geological Survey of India in 2023 marks a significant stride towards reducing India’s dependence on lithium imports. These deposits are expected to substantially meet the nation's lithium requirements and lessen the economic burden of importing the metal from dominant suppliers like China.
