India’s mining industry took a long stride this year supported by government policies in the critical minerals mining as it intends to boost domestic production, reducing dependency on imports and helping in realising the renewable energy targets. The government also has been encouraging companies for overseas exploration and production of critical minerals and rare earth elements.
Some key initiatives this year have been the launch of the auction of offshore critical minerals, amendments in the Mineral Conservation and Development Rules 2024 and Mineral (Auction) Amendment Rules, 2024. Since 2015, the government has so far successfully auctioned 441 blocks of critical minerals across various states. In the current fiscal year, 87 blocks of critical minerals were successfully auctioned, as per mines ministry data.
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“The Indian mining sector in 2024 has demonstrated positive growth and a focus on key areas like self-reliance, technology, and sustainability. While challenges remain, the government’s policy support and the industry’s focus on modernization are expected to drive further growth in the coming years,” said Rajib Maitra, Partner, Deloitte India.
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India’s mineral production (minerals other than atomic, minor, and hydrocarbon energy minerals) value saw a ~13% rise compared to previous year, as per data by Deloitte.
The MMDR (Mines and Minerals Development and Regulation) Amendment Act, 2021 removed restrictions on end use and allowed the sale of minerals produced by captive miners has encouraged the miners to ramp up production capacity, therefore, a better domestic mineral supply, Maitra said.
As much as 15 critical mineral blocks associated with lithium, cobalt, nickel and associated minerals auctioned in four tranches of critical mineral block auction are likely to strengthen the domestic supply of the minerals in future and reduce import dependency, analysts say.
Going ahead, in 2025, the industry expects more thrust to be given to the mining sector with the much-awaited Critical Minerals Mission expected to be rolled out.
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