In a significant move towards achieving self-reliance in critical and strategic minerals, the Ministry of Mines in India has taken pioneering steps to identify and secure essential resources vital for the nation’s economic growth and energy transition. The latest initiative comes on the heels of a comprehensive report by a committee formed on November 1, 2022, to pinpoint 30 minerals crucial for India’s priorities and future requirements.
Among the identified minerals, copper takes centre stage due to its high economic importance. Recognising the challenges posed by critical and deep-seated minerals like Copper, Gold, Silver, Cobalt, Lithium, and Nickel, the Central Government launched the first tranche of e-auction on November 29, 2023. This auction includes 20 blocks encompassing Copper, Lithium, Rare Earth Elements (REEs), Platinum Group of Minerals, Nickel, Potash, and more.
Copper, a mineral of immense economic significance, has posed a challenge for India as the country has traditionally been an importer of copper ore and concentrate. The surge in imports over the past two years can be attributed to increased demand in copper refining, driven by post-pandemic recovery, particularly in sectors such as infrastructure, construction, telecom, electrical, renewable energy, and electric vehicles.
To address the hurdles associated with exploring and mining critical and deep-seated minerals, the Mines and Minerals (Development and Regulation) Amendment Act, 2023, introduces a new Mineral Concession – an exploration license specifically designed for 29 such minerals, including copper. This license empowers private agencies to undertake reconnaissance and prospecting operations, leveraging advanced technology, finance, and expertise in exploring these challenging resources.
The introduction of the exploration license is a strategic move to encourage private sector participation, bringing innovation and efficiency to mineral exploration. Accredited private exploration agencies, without prospecting licenses, are now eligible for funding under the National Mineral Exploration Trust, further incentivising their involvement in this crucial endeavour.
