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Indian Express
19 hours ago
- Business
- Indian Express
How clean energy needs, new tech shape mineral governance in India
— Renuka In a significant policy move, the Ministry of Mines has reclassified minor minerals Barytes, Felspar, Mica, and Quartz as major minerals. These minerals are essential for various new technologies, energy transition, spacecraft industries, the healthcare sector, etc. This reclassification, announced through a Notification dated February 20, 2025, aligns with the government's recent push under the National Critical Mineral Mission, which aims to secure critical and strategic mineral resources for India's clean energy and technological future. It also draws attention to a largely overlooked area in India's mineral governance – the regulation of minor minerals. But what are minor minerals, and how are they regulated? Let's explore. Minor minerals are defined under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, as building stones, gravel, ordinary clay, and ordinary sand. The term 'minor minerals' is often understood to imply a lesser quantity of significance. However, in the Quarry Owners Association vs State of Bihar (2000) case, the Supreme Court clarified that the classification of minerals as major or minor under the MMDR Act is determined by their end use and local importance, rather than by their volume, availability or production levels. The classification is also for the purpose of administrative convenience: while the Central Government retains control over major minerals with national and strategic relevance, like coal, iron ore or bauxite, the regulation and management of minor minerals fall under the purview of state governments. The Central Government also has the authority to declare any other mineral to be a minor mineral. It has thus far notified around 31 minerals as minor minerals such as Gypsum, Mica, Quartz, Clay-based minerals, Sand, etc. Minor minerals play a crucial role in infrastructure, manufacturing and local economies. They are primarily sourced from riverbeds, floodplains, hills, coastal areas, deserts, and open quarries across various states. Extraction typically takes place on a small to medium scale and is governed by state authorities. Silica-rich minerals like Quartz and Silica sand are commonly found in riverbeds and desert regions. They are used extensively in glassmaking and electronics. Sand is a vital component of concrete, mortar, and asphalt, making it essential for buildings, roads, and other infrastructure. Feldspar, Mica, and Kaolin are mostly used in ceramics, paints, and rubber industries. Similarly, limestone derivatives like Calcite, Gypsum and Lime kankar are essential for construction and chemical processing. The barytes, recently classified as a major mineral, is primarily used in oil and gas drilling. These minerals, though locally sourced and often extracted on a small scale, are vital to India's construction boom and industrial growth. However, their unchecked extraction, especially in ecologically sensitive areas, raises serious concerns around sustainability, environmental impact and regulatory oversight. Under the Indian Constitution, states are vested with the power to make laws on mines and minerals under List II (State List) of the Seventh Schedule. However, under List I (Union List), the Central Government can also make laws on the regulation of mines and minerals by declaring it in the public interest. Exercising this authority, the Central Government enacted the MMDR Act in 1957 – a key legislation regulating the mining sector. The Act classifies the minerals into two categories: major and minor and provides the legal framework for the grant of mining leases, royalty collection, and overall management of major mineral resources. Section 15 of the Act delegates the rule-making power to the state governments in relation to minor minerals. It empowers states to frame rules for granting leases, issuing permits, and fixing and collecting rent and royalties from the holders of mining leases and permits. This delegation of rule-making power ensures that states can design regulatory mechanisms to suit local needs. Further, given the significant environmental impact, the minor minerals are also regulated under laws related to pollution, wildlife and biodiversity protection, etc. On the policy front, the Central Government has historically prioritised major minerals, while minor minerals have largely been governed through state-specific policies and rules. However, growing environmental concerns – particularly related to sand mining from rivers and floodplains – have prompted central intervention. In response, the Ministry of Environment, Forest, and Climate Change (MoEFCC) issued Sand Mining guidelines in 2016 and 2020, and the Ministry of Mines released a Sand Mining Framework in 2018. The Supreme Court, High Courts and the National Green Tribunal have played a pivotal role in regulating the mining of minor minerals, especially by mandating Environmental clearances for extracting minor minerals. In the landmark case of Deepak Kumar vs State of Haryana (2012), the Supreme Court took notice of the unscientific and illegal mining of minor minerals and made it mandatory for all mining operations, even below five hectares, to obtain environmental clearances from the appropriate authority. The court also recommended a compulsory mining plan before granting environmental clearance. Notably, through various judgements, the Supreme Court has emphasised the need for the sustainable extraction of minor minerals. Following the apex court's decision in Deepak Kumar vs State of Haryana (2012), the MoEFCC in 2013 notified that the river sand mining project with a lease area of less than five hectares should not be considered for environmental clearance. However, the notification was declared invalid by the National Green Tribunal in Himmat Singh Shekhawat vs State of Rajasthan (2014). Similarly, in Satendra Pandey vs the Union of India (2018), the NGT struck down a notification dated January 15, 2016 on the ground that it diluted the environmental clearance procedure for mining of minor minerals in areas below 25 hectares. The notification exempted such projects from public consultation and environmental impact assessment prior to granting environmental clearance. Despite state regulations and judicial oversight, the mining sector continues to grapple with widespread issues, particularly illegal and unscientific mining. States like Tamil Nadu, Maharashtra, Andhra Pradesh, Punjab and Madhya Pradesh have become the hotspots of illegal sand mining. It is causing severe environmental degradation, such as lowering of groundwater levels in riparian areas, pollution in nearby areas, and disruption of the aquatic ecosystem. Sand and gravel extraction from rivers is one of the leading reasons behind the declining population of the Gharial and Ganges River dolphins. Apart from this, excessive mining of clay from agricultural fields leads to loss of soil fertility and long-term land degradation. Mining has also become a law-and-order issue due to rampant illegal extraction, violent clashes between miners and law enforcement, as well as threats and attacks on activists, journalists and officials attempting to curb the practice. Given the ecological importance of minor minerals, there is an urgent need for strong political and bureaucratic will to ensure their sustainable management. Upholding the Public trust doctrine, the state needs to act as a trustee of these resources and ensure the leasing of mines serves the public interest. Strict law enforcement, adoption of sustainable construction practices and promotion of viable alternatives to natural resource extraction are significant. A comprehensive model regulatory framework across states is needed to harmonise laws, ensure transparency and integrate environmental safeguards with development goals. What are minor minerals, and how are they regulated in India? What is the constitutional division of powers between the Centre and states on the regulation of minerals? How has intervention, particularly by the Supreme Court and the National Green Tribunal, shaped the regulatory landscape for minor mineral mining? What are the ecological consequences of unregulated sand and clay mining, and how effective have existing regulations been in addressing these challenges? How does minor mineral extraction impact biodiversity, particularly endangered aquatic species such as the Gharial and Ganges River dolphin? (Renuka is a Doctoral researcher at Himachal Pradesh National Law University, Shimla.) 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News18
a day ago
- Business
- News18
Rare Earth Minerals: Large Deposits Found In This State, Mining Auction To Begin Soon
Last Updated: India may soon strike it rich as new findings in Rajasthan could unlock rare earth elements, helping the nation rival China in global mineral dominance The global demand for rare earth elements (REEs) is accelerating due to their vital role in cutting-edge technologies. The 17 rare elements – lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and scandium (Sc) and yttrium (Y) – are essential for manufacturing smartphones, electric vehicles, defence systems, and renewable energy equipment. At present, China dominates the global REE market, accounting for 90% of production and processing. However, India is now preparing to challenge this monopoly, with significant discoveries in the Balotra district of Rajasthan, particularly in Bhati Khera, Siwana tehsil. Surveys carried out by the Geological Survey of India (GSI) and the Atomic Minerals Directorate (AMD) have uncovered large deposits of rare earth minerals in the region. These findings could help India become self-reliant and play a key role in the global supply chain. Several locations across Balotra and Jalore districts have been surveyed, with Bhati Khera's exploration nearing completion. The mining auction in the area, valued at approximately Rs 10 crore, is expected to begin soon, with participation from private firms and government agencies. Environmental clearance is expected to be smooth, as Bhati Khera does not fall within any wildlife sanctuary or environmentally sensitive zone. The area is rich in bastnasite, britholite, and xenotime, minerals typically found in carbonatite and microgranite rocks, key sources of rare earth elements. A Global Strategic Resource Rare earth minerals are indispensable for producing permanent magnets, which are used in high-demand items such as smartphones, computers, electric vehicles, lasers, and missile guidance systems. Despite possessing the world's third-largest REE reserves (6.9 million tonnes), India contributes less than 1% to global production; just 2,900 tonnes per year. This is largely due to outdated processing technologies, a shortage of technical expertise, and underdeveloped mining infrastructure. National Critical Mineral Mission To The Fore To change this, the central government launched the National Critical Mineral Mission (NCMM) in 2025. The initiative aims to advance the exploration, mining, and processing of critical minerals. GSI has been assigned 1,200 exploration projects between 2024 – 25 and 2030 – 31, with Bhati Khera considered a strategic cornerstone. Boosting Domestic Production To complement the mission, the government has introduced a Rs 1,000 crore Production-Linked Incentive (PLI) scheme for boosting the domestic manufacture of rare earth magnets. With policy support and recent discoveries, India now has a real opportunity to reduce reliance on China and become a global player in this strategic sector. view comments First Published: July 16, 2025, 15:06 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
4 days ago
- Business
- Hans India
India has huge rare earth metal reserves, but production is low
'Rare earth elements' (REEs) are not actually rare in the Earth's crust, but their extraction and processing are challenging. Hence, making them economically and strategically is more important. India has the fifth-largest REE reserves globally, particularly in coastal and inland placer sands. However, despite these substantial reserves, India's contribution to global REE production is less than one per cent. This is due to limited investment in mining and refining infrastructure, as well as challenges in extracting REEs from low-grade deposits and developing advanced separation and refining technologies, particularly compared to China, the US, and Japan. India possesses significant REE reserves, estimated at 6.9 million metric tons, making it the fifth-largest globally. However, its production remains low, with less than one per cent of global REE output. India is the fifth-largest rare earth resource globally, with significant deposits in the monazite minerals. There are around 13.07 million tonne of REEs, mainly found in the monazite sand, which contains 55-60 per cent total Rare Earth Elements oxide. India's primary REE deposits are found in coastal beach sands, which often contain low mineral content. India's decision to cordon off its rare earth output set the tone for a nervous week in critical mineral markets. New Delhi ordered Indian Rare Earths Limited (unlisted) to halt neodymium exports to Japan, a dramatic break with a 13-year supply pact and a reminder that Chinese licensing controls have given every producer political leverage. Although India mined only 2,900 tonne of neodymium oxide last year, officials now pledge to reserve enough for a future magnet industry and to sweeten domestic processing with incentives. Beijing answered from the shadows. Satellite imagery and local reports show the United Wa State Army—long backed by China—ring-fencing freshly opened dysprosium and terbium-rich deposits in Myanmar's Shan State. Trucks already carry concentrate across the border, offsetting supply lost to fighting farther north and tightening China's grip on the heavy rare earths that temper heat in electric-vehicle (EV) motors and precision-guided munitions. While exploration efforts are underway, particularly in Rajasthan, commercially viable deposits of magnet-grade REEs haven't been verified yet. India lacks the technology and infrastructure for large-scale mining and processing of REEs, leading to reliance on imports, particularly magnets, mainly from China. The Indian government is actively working to develop a self-reliant REE supply chain through the National Critical Mineral Mission and exploration projects. Efforts are being made to develop advanced separation and refining technologies to process REEs domestically, reducing reliance on imports and increasing domestic production.
India Gazette
5 days ago
- Business
- India Gazette
India to boost rare earth magnet production amid China's supply curbs: G Kishan Reddy
New Delhi [India], July 12 (ANI): Union Minister for Coal and Mines G Kishan Reddy on Saturday said that the Central Government has decided to begin the production of rare earth magnets in Hyderabad, as part of its broader push for self-reliance in critical technologies. Speaking to ANI, the minister said, 'The Central Government has decided to produce rare earth magnets in Hyderabad. Our Mining Ministry's NFTSM institute is working diligently, along with various industries, to manufacture the necessary machinery.' Reddy further added that the government will soon showcase its capabilities in manufacturing permanent magnets. 'Within the next 3-4 months, they will showcase their efforts in manufacturing permanent magnets. This initiative involves collaboration between the industry, mining, and other ministries, and has been discussed with Prime Minister Narendra Modi. The Central Government is working seriously towards the production of rare earth magnets,' he said. Highlighting India's shift in sourcing strategy, the minister noted that India was previously entirely dependent on China for rare-earth permanent magnets. 'We were 100 per cent dependent on China for rare earth permanent magnets, but recently China denied supplying to us,' Reddy said. China had announced in April 2024 that it would impose export controls on certain rare earth-related items, triggering a global supply shortage, including in India. In the light of rare earth magnet production, on Friday, Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), welcomed the central government initiatives to ramp up rare earth magnet production in India, particularly the incentives the latter is earmarking for. Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. (ANI)
India Gazette
5 days ago
- Business
- India Gazette
India to boost rare earth magnet production to counter China's supply curbs: G Kishan Reddy
New Delhi [India], July 12 (ANI): Union Minister for Coal and Mines G Kishan Reddy on Saturday said that the Central Government has decided to begin the production of rare earth magnets in Hyderabad, as part of its broader push for self-reliance in critical technologies. Speaking to ANI, the minister said, 'The Central Government has decided to produce rare earth magnets in Hyderabad. Our Mining Ministry's NFTSM institute is working diligently, along with various industries, to manufacture the necessary machinery.' Reddy further added that the government will soon showcase its capabilities in manufacturing permanent magnets. 'Within the next 3-4 months, they will showcase their efforts in manufacturing permanent magnets. This initiative involves collaboration between the industry, mining, and other ministries, and has been discussed with Prime Minister Narendra Modi. The Central Government is working seriously towards the production of rare earth magnets,' he said. Highlighting India's shift in sourcing strategy, the minister noted that India was previously entirely dependent on China for rare-earth permanent magnets. 'We were 100 per cent dependent on China for rare earth permanent magnets, but recently China denied supplying to us,' Reddy said. China had announced in April 2024 that it would impose export controls on certain rare earth-related items, triggering a global supply shortage, including in India. In the light of rare earth magnet production, on Friday, Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), welcomed the central government initiatives to ramp up rare earth magnet production in India, particularly the incentives the latter is earmarking for. Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. (ANI)
