Context

• The Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs.16,300 crore and approx Rs.18,000 crore investment by PSUs, etc.

What are Critical Minerals?

• Critical minerals are those minerals that are essential for economic development and national security. The lack of availability of these minerals or concentration of extraction or processing in a few geographical locations may lead to supply chain vulnerabilities and even disruption of supplies.

30 Critical Minerals for India

• Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE,Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium,Zirconium, Selenium and Cadmium.

Key Features of NCMM

• NCMM was announced in the Union Budget, 2024-25.
• Aim: To create a fast-track regulatory approval process for critical mineral mining projects.
• Government plans to create four mineral processing parks and prepare separate guidelines for the recycling of critical minerals.
• It seeks to promote Critical Minerals Partnership Agreements with resource-rich countries.
• To Intensify exploration of critical minerals within the country and in offshore areas.
• Mines and Minerals (Development and Regulation) Act, 1957, has been amended in 2023 to increase exploration and mining of critical minerals.

Financial Support

• Rs 5,600 crore is allocated to the National Mineral Exploration Trust (NMET) to finance risk coverage for foreign sourcing and to support exploration activities outside India.
• NCMM will receive Rs 1,000 crore from the Anusandhan National Research Foundation (ANRF) and other R&D schemes, and Rs 2,600 crore in budgetary support.
• The Mines Ministry proposed external funding for the NCMM through the World Bank’s Resilient and Inclusive Supply-Chain Enhancement (RISE) initiative.

Report of Institute for Energy Economics and Financial Analysis (IEEFA) in 2024

• India’s demand for critical minerals is expected to more than double by 2030.
• Report examines five critical minerals (and their compounds) – cobalt, copper, graphite, lithium and nickel.
• India depends heavily on China for synthetic graphite and natural graphite.
• India is highly import-dependent for copper cathodes and nickel sulphates to Japan and Belgium.

KABIL

• Joint venture company of National Aluminium Company Ltd, Hindustan Copper Ltd and Mineral Exploration and Consultancy Ltd.
• Objective: To ensure consistent supply of critical and strategic minerals to the Indian domestic market.