National Critical Mineral Mission (NCMM)

Syllabus: GS3/Economy

Context

• The Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs.16,300 crore.

About

• Aim: To create a fast track regulatory approval process for critical mineral mining projects.
• The NCMM will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.
• Features: 
  • Setting up mineral processing parks and supporting the recycling of critical minerals.
  • Promote research in critical mineral technologies and proposes setting up Centre of Excellence on Critical Minerals.
  • It also proposes development of a stockpile of critical minerals within the country.
  • It encourages Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries.

What are Critical Minerals?

• Critical minerals are those minerals that are essential for economic development and national security. 
  • The future global economy will be underpinned by technologies that depend on minerals such as lithium, graphite, cobalt, titanium, and rare earth elements. 
  • These are essential for the advancement of many sectors, including hightech electronics, telecommunications, transport, and defence. 
• Supply Chain Vulnerability: Due to the lack of availability of these minerals and concentration of extraction or processing in a few geographical locations.
  • Hence, it has become imperative to identify and develop value chains for the minerals which are critical to country.

Applications of Critical Minerals

• Clean technologies initiatives such as zero-emission vehicles, wind turbines, solar panels etc.
  • Critical minerals such as Cadmium, Cobalt, Gallium, Indium, Selenium and Vanadium and have uses in batteries, semiconductors, solar panels, etc.
• Advanced manufacturing inputs and materials such as defense applications, permanent magnets, ceramics.
  • Minerals like Beryllium, Titanium, Tungsten, Tantalum, etc. have usage in new technologies, electronics and defense equipment.
• Platinum Group Metals (PGMs) are used in medical devices, cancer treatment drugs, and dental materials.

List of Critical Minerals

• Different countries have their own unique lists of critical minerals based on their specific circumstances and priorities.
• A total of 30 minerals were found to be most critical for India: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.

Initiatives by India to Secure Critical Mineral Supplies

• Mines and Minerals (Development and Regulation) Act, 1957, has been amended in 2023 to increase exploration and mining of critical minerals. 
• Exploration Projects by GSI: Geological Survey of India (GSI) has undertaken 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway in FS 2024-25.
  • For FY 2025-26, GSI is going to take up 227 projects for various critical minerals. 
• KABIL: It is a joint venture of the Ministry of Mines, it has acquired an area of about 15703 Hectare in the Catamarca province of Argentina, for exploration and mining of Lithium.
• Custom Duty: Government has already eliminated customs duties on the majority of critical minerals in the Union budget 2024-25.
  • This will increase the availability of critical minerals in the country and will encourage the industry to set up processing facilities in India. 

Way Ahead

• India is collaborating with countries such as Africa, Argentina, Australia and Mongolia to secure its energy requirements.
  • In Tanzania, India is pitching for access to resources such as niobium and graphite; in Zimbabwe for lithium, and for copper and cobalt in Congo and Zambia.
• Critical minerals have become essential for economic development and national security in the country. 
• Minerals such as Lithium, Cobalt etc.  have gained significance in view of India’s commitment towards energy transition and achieving net-zero emission by 2070. 

Source: TH