Cabinet Approves Rs 16,300 Crore National Critical Mineral Mission

The Union Cabinet has approved the National Critical Mineral Mission (CMM) with an outlay of Rs 16,300 crore. This initiative is aimed at addressing the critical need for minerals that are essential for key technologies and defense manufacturing. The CMM seeks to boost the domestic production of critical minerals, reduce dependence on imports, and enhance India’s resource security by fostering both onshore and offshore mining activities.

The mission will address the entire value chain of critical minerals, from exploration and mining to beneficiation, processing, and recovery from end-of-life products. With a focus on critical minerals like lithium, cobalt, copper, nickel, and rare earth elements, the mission also aims to streamline regulatory processes, incentivize exploration, and develop a national stockpile of these minerals. By promoting both public and private sector participation, the mission is poised to make India self-reliant in critical mineral resources.

Key Objectives of the National Critical Mineral Mission

• Explore Critical Minerals: Focus on both onshore and offshore areas.
• Streamline Regulatory Processes: Establish fast-track approval systems for mining projects.
• Encourage Financial Incentives: Provide financial support for exploration activities.
• Boost Mining Capabilities: Support the acquisition of critical mineral assets abroad.
• Promote National Stockpile: Build a reserve of critical minerals for long-term resource security.
• Enhance Self-reliance: Reduce India’s import dependence by fostering local mining activities.
• Public and Private Sector Collaboration: Encourage cooperation between government and industry players in mineral extraction and processing.

Major Steps in the Mission

• Exploration: Exploration of critical minerals within India and its offshore areas.
• Regulatory Simplification: Fast-track approval for mining projects.
• Incentives for Exploration: Financial incentives to attract exploration activities.
• Mineral Recovery: Focus on extracting critical minerals from overburden and tailings.
• International Collaboration: Acquisition of critical mineral assets from other countries to strengthen India’s mineral security.
• National Stockpile Creation: Establishment of a national reserve to ensure supply continuity.

Industry Participation

• The government is encouraging both public sector undertakings (PSUs) and private companies to acquire critical mineral assets abroad.
• The mission will help industries align with government efforts to make India self-sufficient in critical minerals.
• A successful auction of 48 critical mineral blocks was held, with 24 successfully allotted, and new offerings continue to encourage industry participation.

Definition of Critical Minerals

• Critical minerals are essential for economic development and national security.
• A lack of availability or concentration of extraction in specific regions can cause supply chain vulnerabilities and disruptions.

Declaration of Critical Minerals

• The designation of critical minerals is dynamic and evolves with new technologies, market shifts, and geopolitical factors.
• Different countries have their own lists based on local priorities,
• The US has declared 50 critical minerals for national security and economic reasons.
• Japan identifies 31 critical minerals.
• The UK considers 18 minerals as critical.
• The EU has listed 34, and Canada has 31 critical minerals.

Significance of Critical Minerals for India

Economic Development

• Crucial for industries such as high-tech electronics, telecommunications, transport, and defense.
• Vital for green technologies like solar panels, wind turbines, batteries, and electric vehicles.
• The growth of these sectors can stimulate job creation, income generation, and innovation in India.

National Security

• Essential for defense, aerospace, nuclear, and space applications, requiring high-quality materials that withstand extreme conditions and perform complex functions.

Environmental Sustainability

• Necessary for the transition to clean energy, reducing India’s dependence on fossil fuels and lowering greenhouse gas emissions.
• Critical for achieving India’s goal of 450 GW of renewable energy capacity by 2030.

Challenges for India Related to Critical Minerals

• Implications of the Russia-Ukraine Conflict
• Limited Domestic Reserves
• Increasing Demand for Minerals

Summary/Static	Details
Why in the news?	Cabinet Approves Rs 16,300 Crore National Critical Mineral Mission
Critical Mineral Exploration	Focus on both onshore and offshore areas.
Regulatory Process	Establish a fast-track approval system for mining projects.
Financial Incentives	Provide incentives to promote exploration activities.
Mineral Recovery	Emphasize recovery of critical minerals from overburden and tailings.
Public-Private Collaboration	Encourage cooperation between PSUs, private sector, and government.
Offshore Mining	Launch offshore mining auctions to reduce import dependence.
National Stockpile	Build a national reserve of critical minerals.
Self-reliance in Minerals	Decrease dependence on imports by enhancing local production.
Critical Minerals	Essential for economic development and national security; shortages or concentration in few regions lead to vulnerabilities.
Countries’ Lists of Critical Minerals	US (50), Japan (31), UK (18), EU (34), Canada (31).
Significance for India	Economic growth, national security, and environmental sustainability through clean energy technologies.
Challenges	Limited domestic reserves, reliance on imports (lithium, nickel), geopolitical disruptions (Russia-Ukraine conflict), increasing demand for minerals.