NEW DELHI: In a move that will open up India’s strategic lithium reserves to the private sector, the Lok Sabha on Friday passed the Mines and Mineral (Development and Regulation) Amendment Bill, 2023.
The legislation removes lithium, a key raw material used for manufacturing batteries in electric vehicles, and five other atomic minerals from the prohibited category. It also allows the private sector to mine deep-seated minerals such as gold and silver.
Under the existing Act, all 12 atomic minerals are reserved for mining and exploration by state-owned entities. The amendment will open up six atomic minerals — lithium, beryllium, niobium, titanium, tantalum and zirconium — to private players.
“These minerals have various applications in the space industry, electronics, communications, energy sector, and electric batteries and are critical in the net-zero emission commitment of India. Upon removal of these minerals from the said list, exploration and mining of these minerals will be opened up for the private sector as well. As a result, exploration and mining of these minerals is expected to increase significantly in the country,” said the statement of objects and reasons for the bill.
Union Minister for Coal and Mines Pralhad Joshi said the amendments in the bill will be a game changer for India. The minister also sought to clarify that mining of beach sand minerals — ilmenite, rutile, leucoxene, garnet, monazite, zircon and sillimanite — will be reserved for public-sector undertakings.
Speaking to this newspaper, RSP member N K Premachandran said he has made several interventions in the past not to allow the private sector to mine beach sand minerals as it will pose serious consequences to the environment and national security. The bill was passed amid sloganeering by the Opposition over Manipur.