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By Ricky Chopra, Advocate
The world we live in is encapsulated by geopolitical chaos that stands on the bedrock of elements from the periodic table that are rare – not rare to find, but rare to isolate from raw ore compounds. These 15 odd heavy metal lanthanides along with scandium and yttrium are the only way forward to a clean world alternative. The only choice.
Now, since China controls most of these ‘jewels’, the world faces all sorts of horrific export controls and supply chain threats. Thus, it became incumbent that India adopted a legal framework that is robust enough to provide for a sustainable future innovations platform and a landscape that promotes public-private partnerships.
The Mines and Minerals (Development and Regulation) Act (MMDR), 1957 of India, with all its revisions has become an exceedingly potent weapon to guard India’s interests in the critical minerals world. Not only six critical minerals have been delisted from the atomic minerals category but twenty four critical minerals have been brought into the purview of auction concessions – both these steps giving a forward push to India in the brutal world of hard rocks.
Opening Exploration Licenses (ELs) with terms of seven years and permitting incentives in foreign direct investment (FDI) in this category have opened the world of forty six critical mineral blocks to public auctions, therefore fostering entrepreneurship.
The proposals mooted last year contain provisions enabling existing leaseholders to mine recently discovered critical minerals sans approvals or participative auctions. Additionally, the National Mineral Exploration Trust can fund the states to acquire assets in foreign lands and create diverse supply lines. The interest of the investors even otherwise has been rekindled since the implementation of rationalized (at one percent) royalty rates for REEs like rare earth oxides. No critical mineral project now falls under the ambit of public hearings and the research and exploration has got a great push through the forward-looking National Critical Mineral Mission with its thick purse of more than INR 16000 crores.
Also with the encouragement the latest budget provides to private participation, the government monopoly and its drawbacks like over production and environmental corrosion may be eliminated to a large extend. Further, the customs duty exemptions on many critical minerals and REEs provide a big boost to the outsourcing industry engaged in importing and processing.
India with its massive 6.9 million tonnes of reserves and intelligent stockpiling strategy, with new corridors opening up in Odisha, Hyderabad, Tamil Nadu and Kerela, with export controls in place, and existing memberships of vital international accords like the Mineral Security Partnership and Quad Initiates, has a solid future in not only supply governance but also in research and development.
I will conclude this way: If India matches production with sustainability, it can earn a seat at the table within no time.
