24 critical mineral mines auctioned; government aims for more by 2031: MoS for mines

NEW DELHI: The Indian government is set to ramp up auctions of critical mineral blocks by 2031, reinforcing its commitment to securing domestic supply chains essential for the green energy and technology sectors.

Addressing the Critical Minerals Matrix conference organised by FICCI, on 22 February, Union Minister of State for Mines and Coal, Satish Chandra Dubey, detailed the government’s strategy to reduce reliance on mineral imports.

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His announcement follows the launch of the National Critical Minerals Mission, which has earmarked ₹34,300 crore over seven years to strengthen India’s position in the sector.

“The government has already auctioned 24 critical mineral blocks domestically, and we aim to auction as many critical mineral blocks as possible by 2031,” Minister Dubey stated, underscoring the broader strategy to enhance mineral security and mitigate supply chain vulnerabilities.

The minister called for increased collaboration between the government and the private sector, stating, “We must work as complementary partners and as a team to build a self-reliant India.” This aligns with the government’s push to involve private enterprises in mineral exploration and extraction, reducing dependence on international markets.

FICCI Director General Jyoti Vij welcomed the initiative, stressing the economic significance of critical minerals. She noted that the launch of the FICCI Committee on Critical Minerals would facilitate cooperation between the industry and government to address challenges and leverage emerging opportunities.

With the global demand for minerals like lithium, cobalt, and rare earth elements surging, the urgency of domestic resource development is becoming increasingly evident.

Dhiraj Nayyar, Group Chief Economist at Vedanta, highlighted that electric vehicles require six times more minerals than conventional cars, while offshore wind infrastructure demands nine times more minerals than traditional power plants. “We don’t want to move from import dependence on oil to import dependence on critical minerals. The key is exploration,” Nayyar asserted, advocating for streamlined approval processes and land allocation flexibility.

Echoing this sentiment, Pratyush Sinha, Vice President of LOHUM, described the ₹34,000 crorepolicy initiative as a methodical response to industry needs, shaped through extensive stakeholder consultation. Citing lithium as an example, Sinha noted that global production is expected to increase tenfold in the next decade, creating opportunities for new entrants in the critical minerals sector.

The conference also marked the launch of the FICCI-Deloitte report, Recovery of Critical Minerals from Mine Tailings and Overburden, which projects exponential growth in India’s mineral demand. 

Rajib Maitra, Partner at Deloitte, highlighted that lithium demand alone is set to rise nine to tenfold over the next decade.

The report identifies four key strategic areas for development:

1. Policies and Incentives – Establishing regulatory frameworks to promote mineral exploration.
2. Extraction and Processing Technologies – Advancing methods for sustainable mineral recovery.
3. Supply Chain Integration – Strengthening domestic supply chains to reduce import dependency.
4. Capacity Building – Developing skilled manpower and investing in R&D initiatives.

The report further recommends setting up Critical Mineral Recovery Zones through public-private partnerships, creating a nationwide mine tailings database, and establishing regulatory frameworks to facilitate mineral extraction. 

Additionally, it highlights the need for international collaboration, urging India to adopt best practices from Australia, the US, Japan, and Canada, where targeted funds and development programs support critical mineral recovery.