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Context

The Union Ministry of Environment, Forest and Climate Change (MoEFCC) allows critical, strategic, and atomic mineral mining projects to be approved without public hearings to expedite resource development.

What Are Critical Minerals?

They are natural resources essential for economic development and national security, where supply chain vulnerabilities or geopolitical factors pose risks.

India’s list, as per the Mines and Minerals (Development and Regulation) Amendment Act, 2023, includes 30 minerals, with Part B (atomic minerals) covering uranium, thorium, and beach sand minerals and Part D listing 24 critical and strategic minerals.  

Dominant Players

China controls 60% of REEs (rare earth elements) global output and 92% refining capacity. About 67% of global lithium supply is processed by China, along with 73% of cobalt, 70% of graphite and 95% of manganese.

Democratic Republic of the Congo (DRC) produces 74% of cobalt.

The 'lithium triangle' of Bolivia, Chile, and Argentina contain around half the world's known Lithium.

Indonesia accounts for 51% of the world's nickel mine production.

Supply Risks: Concentration in a few countries, geopolitical tensions (e.g., US-China trade war, Russia-Ukraine conflict), and China’s export restrictions create global supply vulnerabilities.

Production in India

Reserves: India holds around 11.93 million tonnes of monazite (Thorium bearing mineral) in Andhra Pradesh, Kerala, Tamil Nadu, and Odisha; 5.9 million tonnes of lithium in Jammu & Kashmir; and significant ilmenite (11% of global deposits) in Odisha, Kerala, and Tamil Nadu.

Import Dependency: 100% import reliance for lithium, cobalt, nickel, vanadium, niobium, germanium, rhenium, beryllium, tantalum, and strontium.

Exploration: The Geological Survey of India (GSI) completed 368 critical mineral projects, with 195 ongoing in 2024-25 and 227 planned for 2025-26.

Why Significance for India?

• Energy Transition: Lithium, cobalt, and nickel are vital for electric vehicle (EV) batteries and renewable energy storage, supporting India’s net-zero by 2070 goal.
• Defense and Technology: REEs, gallium, and indium power radar, sonar, semiconductors, and precision-guided munitions.
• Economic Growth: Domestic mining reduces import bills, creates jobs, and fosters industrial ecosystems.
• Strategic Autonomy: Reducing reliance on China enhances geopolitical resilience.

Recent Policy Change

New Approval Mechanism

Exemption from Public Hearings: Government exempts mining projects for atomic (Part B) and critical/strategic minerals (Part D) under the MMDR Act, 2023 from public consultations, quoting national defense and security needs.

Centralized Appraisal: All such projects, regardless of lease size, will be reviewed at the central level by sectoral Expert Appraisal Committees (EACs), ensuring comprehensive evaluation of Environmental Impact Assessments (EIAs) or Environmental Management Plans (EMPs).

Mandatory Inclusions: EIAs/EMPs must detail impacts on local settlements, social infrastructure (e.g., medical facilities, water supply), skill development, employment, and grievance redressal mechanisms, with adequate financial resources allocated.

Government Rationale

National Security: The Ministry of Defence emphasized REEs’ role in defense systems (radar, sonar, missiles) and limited domestic reserves.

Nuclear Energy: The Department of Atomic Energy (DAE) highlighted thorium (from monazite) for India’s third-stage nuclear program and uranium for the first stage.

Government mentioned the EIA Notification, 2006, allows exemptions for projects critical to national defense, security, or strategic considerations, aligning with India’s energy, defense, and net-zero goals.

Expected Outcomes of the New Policy

Positive Outcomes

• Faster Project Approvals: Bypassing public hearings could reduce clearance timelines, accelerating mining operations.
• Boost to Self-Reliance: Increased domestic production of lithium, REEs, and other minerals could cut import bills and strengthen supply chains for EVs, renewables, and defense.
• Economic Benefits: Enhanced mining create jobs and attract investments.
• Energy Transition: Supports India’s 500 GW non-fossil target by 2030 and net-zero by 2070.

Negative Outcomes

• Environmental Risks: Lack of public scrutiny may overlook ecological impacts like deforestation, water contamination, and biodiversity loss (e.g., monazite mining in Kerala’s coast).
• Social Impacts: Affected communities lose a voice, leading to displacement, loss of livelihoods, and social unrest.
• Transparency Concerns: Centralized appraisals without local input risk undermining trust and accountability.

What are the Challenges with Critical Mineral Mining?

Environmental Degradation: Mining in ecologically sensitive areas (e.g., Western Ghats, Himalayas) could exacerbate deforestation, soil erosion, and water pollution. For example, ilmenite mining in Tamil Nadu has raised concerns about coastal ecosystems.

Supply Chain Gaps: India lacks advanced processing/refining infrastructure for minerals like lithium and REEs, limiting value addition.

Global Competition: China’s dominance and lower costs pose challenges to India’s competitiveness.

Health Risks: Mining activities (e.g., uranium, thorium) expose workers to radiation and silicosis; unregulated cobalt mining globally has shown child labor and health hazards.

Policy Execution: Delays in land acquisition, forest clearances, and inconsistent state policies could hinder project timelines.

Way Forward

Strengthen Domestic Exploration: Expand GSI’s 227 planned projects (2025-26) with advanced technologies like geophysical mapping and AI-driven prospecting.

Build Processing Infrastructure: Invest in refining facilities for lithium, REEs, and cobalt to maximize value addition and reduce export of raw ores.

Sustainable Mining Practices: Adopt low-impact mining, water recycling, and reforestation to mitigate environmental damage.

Community Engagement: Even without mandatory hearings, voluntary consultations and grievance redressal mechanisms can build trust and address local concerns.

Global Partnerships: Leverage initiatives like the Minerals Security Partnership (MSP) and Quad to secure technology transfers and critical mineral supply chains.

• Expand KABIL's overseas acquisitions and partnerships (e.g., US-Australia Mineral Security Cooperation) to diversify from China.

R&D and Skill Development: Establish Centers of Excellence for critical minerals to drive innovation and train a skilled workforce.

Policy Streamlining: Fast-track forest clearances via amended Van (Sanrakshan Evam Samvardhan) Rules, 2023, and ensure single-window clearances on the Parivesh portal.

Sustainability Focus: Integrate circular economy (e-waste recycling) and ESG standards to balance speed with equity.

Conclusion

India's decision to exempt critical, strategic, and atomic mineral mining from public hearings aims for self-reliance in energy, defense, and technology sectors, but risks environmental degradation and social exclusion. Balancing national priorities with sustainable practices is crucial.

Source: DOWNTOEARTH