Lok Sabha Passes Bill Allowing Private Sector To Mine Lithium

The bill permitting private enterprises to mine six atomic minerals, including lithium, and deep-seated minerals like gold and silver, has been endorsed by the Lok Sabha. The Mines and Mineral (Development and Regulation) Amendment Bill, 2023, passed through a voice vote despite opposition members' protests over the Manipur issue.

The bill aims to open up six out of the 12 atomic minerals for private sector exploration, moving away from the previous exclusivity of state-owned entities. The minerals include lithium, crucial for electric vehicle batteries and energy storage devices, as well as beryllium, niobium, titanium, tantalum, and zirconium.

These minerals find applications in various industries like space technology, electronics, communications, energy, and electric batteries, making them vital for India's net-zero emission commitment. By allowing private sector participation, the country anticipates a significant boost in exploration and mining activities for these minerals.

The bill also empowers the central government to exclusively auction mining leases and composite licenses for certain critical minerals. Deep-seated minerals like gold, silver, copper, zinc, lead, nickel, cobalt, platinum group minerals, and diamonds, which are challenging and expensive to mine, will now see increased private sector participation through transparent auctions.

Proponents of the bill highlight the meager share of deep-seated minerals in India's total mineral production, leading to heavy dependence on imports. The new exploration license aims to encourage private companies to explore and mine these critical minerals, promoting self-sufficiency.

Union Minister for Coal and Mines, Pralhad Joshi, believes that the bill's amendments will be a 'game changer,' introducing a transparent auction route for exploration licenses in addition to existing composite and mining licenses.

Joshi further shared that India's coal production is set to reach 1 billion tonnes, making the country self-sufficient in energy. The government aims to stop thermal coal imports by 2025-26, indicating a shift in energy strategy.

However, beach sand minerals like ilmenite, rutile, leucoxene, garnet, monazite, zircon, and sillimanite will continue to be reserved for public sector undertakings.

The bill's successful passage in the Lok Sabha marks a significant step towards greater private sector involvement in India's mining and exploration sector.

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