KOCHI: In a move that can generate much-needed revenue for the state and create employment opportunities for the local population, the Kerala Minerals and Metals Limited (KMML) has decided to proceed with a project to engage in monazite value addition. As the first step towards the process, KMML got the state government’s permission to proceed with the proposal.
However, rare earths fall primarily under the Union government’s purview and due to their strategic nature, they are managed under the Atomic Energy Act, 1962, and related regulatory frameworks. Hence, to proceed with the project proposal, KMML needs the Centre’s permission.
As per the government order dated April 17, the state government also sanctioned KMML to approach the Centre for the necessary permissions in this regard. As per the order, the director of Mining and Geology has also recommended considering KMML’s proposal in a favourable light. At present, KMML has the permission to mine monazite.
Both the state and Central budgets highlighted the rare earths’ importance in the country’s economic scheme of things. According to Dr Baiju K R, honorary director of the Institute for Integrated Programmes and Research in Basic Sciences, the decision is a timely one. “There is a great demand for various minerals comprising monazite. Monazite value addition involves processing the minerals in the sand to separate high-value rare earth elements (REEs) and thorium, increasing raw material value by up to 10 times,” he said.
According to him, at present, it is being done by Indian Rare Earths Limited (IREL). “If KMML is able to do monazite value addition, it will be an advantage to the Kerala government since the revenue generated will be huge. However, it needs to be seen whether KMML has the equipment and the know-how to carry out the process,” he added.
The demand for rare earth permanent magnets is rising sharply in India, with the government’s push for large-scale renewable energy expansion. India imported over 53,000 metric tonnes of rare earth magnets during the fiscal year ending March 2025. India’s consumption of rare earth permanent magnets is expected to double by 2030, but it currently meets its demand primarily through imports.
The Kerala Budget had proposed creation of a Rare Earth Corridor and a Defence Research Development Corridor, aimed at positioning the state as a strategic hub for critical minerals. The Rare Earth Corridor is expected to attract investments of Rs 42,000 crore and create around 50,000 jobs.