Indian cabinet allows Lithium's commercial mining to charge up it's EV ambitions

Indian Cabinet approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957, on July 12, allowing for mining of lithium and other minerals, ET reported citing sources.

It was widely reported earlier  that the government was planning to amend the  act to encourage exploration of deep-seated minerals   such  as tellurium, selenium, lead, zinc, cadmium, indium, gold, silver, diamond, rock phosphate, apatite, potash, and elements of the rare earth group.

Critical and strategic minerals such as lithium, cobalt, molybdenum, rhenium, tungsten, graphite, vanadium, nickel, tin, platinum  etc.   Group of elements like  columbite, tantalite, lepidolite, scheelite and cassiterite are also part of the list.

The amendment proposed to insert the provision of an exploration licence in the law which will be granted through auction for undertaking reconnaissance and prospecting operations, according to an official.

Companies will be allowed to suggest areas they want to explore, and eventually mine in India, as per the changes. This is a deviation from the usual practice where blocks or mines are defined by the government to be taken up for auction.

The licence will also be granted only for deep-seated and critical minerals that will be specified in a new schedule to the Act, said the official.

The changes are likely to incentivise private sector participation in all spheres of mineral exploration, with a focus on precious and critical ones. They will allow junior mining companies to get exploration rights on the basis of available baseline survey data. These companies explore the area from the reconnaissance stage and bring it up to the level required for starting mining operations.

Companies will also be allowed to transfer the mineral concession in full or part during the exploration period or at the conclusion of exploration, as per the changes.

 

Source : ET India (Reproduced with edited version)