4th Tranche Auction for Critical and Strategic Minerals

Home 4th Tranche Auction for Critical and Strategic Minerals

Economy

Jun 26, 2024

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Union Minister of Coal and Mines along with Minister of State for Coal and Mines, inaugurated the 4th tranche of the auction for critical and strategic minerals.

What are Critical and Strategic Minerals:

Those minerals that are essential for economic development and national security.
Called the ‘new oil’ due to their crucial role in clean energy technologies.
Used in solar modules, wind turbines, transmission networks, and batteries, telecommunications, transport, defence, and renewable energy technologies needed for ‘Net Zero’ commitments.
Demand for critical minerals is expected to quadruple by 2040 (International Energy Agency).
Scarcity or geographic concentration can cause supply chain vulnerabilities and disruptions due to concentration of reserves and processing in few countries.
- Particularly concerning developing economies like India, affecting economic growth and clean energy transition.

Critical and Strategic Minerals for India.

A Seven-member Committee identified 30 critical minerals.
These are: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorus etc.
The Ministry of Mines identified 24 critical and strategic minerals for India.
- Central government will now auction critical and strategic minerals, with revenue going to state governments.
- Six minerals, including lithium, delisted from the atomic minerals list to allow private sector entry.

Khanij Bidesh India Limited (KABIL), is a Joint Venture Company among the three Government Enterprises: NALCO, HCL and MECL, in the ratio of 40:30:30.
- Under: Ministry of Mines, Government of India
- Formed:To ensure supply side assurance of critical and strategic minerals and mineral security of the nation.
- KABIL was Incorporated in 2019 under the Companies Act 2013.
India has recently been inducted into the Mineral Security Partnership (MSP), a US-led collaboration of 14 countries.
- Aims to catalyse public and private investment in critical mineral supply chains globally.
India-Australia Critical Minerals Research Partnership (CMRP) was established to strengthen supply chains, add value to Australian exports, and work with India to commercialise technology.