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Economy
Mahesh

14/07/24 20:45 PM IST

India’s hunt for critical minerals

In News
  • Recently,the Centre declared the winning bidders for mining rights in six blocks of critical minerals  including graphite, phosphorite and lithium, for which India largely relies on imports.
Critical Minerals
  • Minerals such as copper, lithium, nickel, cobalt are known as critical minerals, as they along with some rare earth elements, are essential for the world’s ongoing efforts to switch to greener and cleaner energy.
  • As per the International Energy Agency (IEA), lithium demand rose by 30% in 2023, followed by nickel, cobalt, graphite and rare earth elements which saw an 8% to 15% growth, with the aggregate value of such minerals pegged at $325 billion.
  • In its Global Critical Minerals Outlook 2024 report, the agency has flagged that the world’s goal to limit global warming to 1.5 degrees Celsius in the net zero emissions scenario, would translate into very rapid growth in demand for these minerals.
  • By 2040, the demand for copper is expected to rise 50%, double for nickel, cobalt and rare earth elements, quadruple for graphite and eightfold for lithium, which is crucial for batteries.
  • The development of sustainable supply chains for such minerals is, therefore, an unavoidable task.
  • In India, the lack of ready reserves of critical minerals has resulted in 100% import dependence for minerals like lithium, cobalt, and nickel.
  • Late last month, Union Mines Minister highlighted that 95% of India’s copper requirements are met through imports. China is a key supplier or processor of many of these items. 
Natural reserves in India
  • India holds 11% of the world’s deposits of ilmenite, the main source of titanium dioxide used in many applications, but still imports a billion dollars of titanium dioxide a year.
  • Then there is the “lucky” discovery of lithium reserves in the Union Territory of Jammu and Kashmir (J&K) while the Geological Survey of India (GSI) was exploring the State’s terrain for limestone, which triggered hope of some self-sufficiency in the mineral.
  • Announced as the first discovery of lithium in the country last February, these reserves were pegged at 5.9 million tonnes, enthusing the government to expedite its tapping. 
  • The central government amended the Mines and Minerals (Development and Regulation) Act, 1957 in August 2023 to enable it to grant mining concessions for 24 critical and strategic minerals.
  •   A graphite block is being auctioned in Jharkhand and Arunachal Pradesh, with five additional blocks of graphite, tungsten and vanadium offered in the northeastern State for the second time.
  • The ‘second attempt’ blocks also include a tungsten reserve in Tamil Nadu’s Madurai district, a cobalt and manganese block in Karnataka’s Shimoga, and a chromium and nickel block in Sindhudurg, Maharashtra. 
Challenges
  • As per industry experts, the reasons for low interest among miners for some of these blocks include the lack of adequate data on the potential reserves buried within them.
  • Technology challenges also affect outcomes.
  • For instance, the lithium block in J&K has clay deposits, and the technology for the mineral’s extraction from clay remains untested globally.
Source- The Hindu

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