CHENNAI: Tamil Nadu is poised to play a central role in India’s push for self-reliance in rare earth minerals, with Indian Rare Earths Ltd (IREL) planning to expand mining operations and establish a monazite processing facility in the state.
S B Mohanty, chairman and managing director of IREL, said the company is evaluating new mining projects in Tamil Nadu, along with a plant to process monazite, an atomic mineral that is the primary source of thorium and critical rare earth elements such as neodymium and praseodymium.
These materials are essential for electric vehicles, renewable energy systems and advanced electronics.
“The rare earth corridors announced in the Union Budget will significantly strengthen India’s ability to reduce dependence on Chinese imports and build self-reliance in critical minerals,” Mohanty told The New Indian Express.
He said the initiative would also support downstream manufacturing, encourage start-ups and generate employment.
Finance Minister Nirmala Sitharaman had announced rare earth corridors across four states in the Union Budget to support mining, processing and manufacturing through improved infrastructure and better coordination between the Centre and the states.
India currently mines rare earth-bearing minerals in Tamil Nadu, Kerala, Odisha and Andhra Pradesh, but processing capacity remains limited.
The Budget announcement also complements the ₹7,280-crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, aimed at reducing import dependence in sectors such as electric mobility and defence.
Together, the initiatives are expected to create an integrated pipeline from mining to processing and magnet manufacturing.
Southern coastal states, particularly Tamil Nadu and Kerala, are considered critical due to their rich beach sand mineral reserves, which serve as key feedstock for rare earth elements used in EV motors and clean energy applications.
IREL already operates a major mineral division at Manavalakurichi in Kanyakumari district, one of its three principal beach sand mining units, along with facilities at Chavara in Kerala and OSCOM in Odisha.
The company plans to expand mining across about 1,144 hectares at Inayam–Midalam in Kanyakumari district, subject to Coastal Regulation Zone clearance.
IREL has also formed a joint venture with Tamil Nadu Minerals Ltd to develop mineral sand deposits in the state. While field surveys and land demarcation have been completed, state-level approvals for nominating the prospective lessee are still pending, Mohanty said.
In addition, IREL and Tamil Nadu Minerals Ltd are setting up major mineral separation plants in the red sand regions of Sathankulam and Kuthiraimozhi in Thoothukudi district to process ilmenite, garnet and other heavy minerals.
Meanwhile, Kerala is exploring new mining areas, while Odisha and Andhra Pradesh are stepping up efforts to attract investments in critical mineral extraction and processing.
Mohanty said the rare earth corridor framework could help align these state-level initiatives with national manufacturing and strategic priorities.