Parliament Question: Countering China's Curbs on Rare Earth Minerals

Executive Summary: The Ministry of Heavy Industries addressed concerns regarding China's restrictions on rare earth minerals. SIAM reported no specific information on meetings between Indian and Japanese companies for EV battery and mineral collaboration. The Union Cabinet approved the National Critical Mineral Mission (NCMM) on January 29, 2025, to secure a long-term supply of critical minerals. Amendments to the Mines and Minerals Development and Regulation Act, 1957 (MMDR) have been made to boost domestic production and reduce import dependence. Key Points / Main Content: National Critical Mineral Mission (NCMM): * Launched on January 29, 2025, for seven years (2024-25 to 2030-31). * Proposed expenditure of Rs. 16,300 crore, with expected investment of Rs. 18,000 crore by PSUs and other stakeholders. * Aims to secure a long-term sustainable supply of critical minerals. * Focuses on strengthening India's critical mineral value chains from exploration to recovery. Amendments to Mines and Minerals Development and Regulation (MMDR) Act, 1957: * MMDR Amendment Act, 2023, effective from August 17, 2023. * Includes a list of 24 critical and strategic minerals in Part D of Schedule I. * Removes six minerals from the list of atomic minerals in Part B of Schedule I and includes them in the list of 24 critical and strategic minerals. * Empowers Central Government to exclusively auction mining lease and composite license for critical and strategic minerals specified in Part D of Schedule I. * Provides exploration license for 29 minerals included in Schedule VII of the Act. * Ministry of Mines empowered to auction blocks for Exploration License under Section 20A of MMDR Act 1957 via order dated October 21, 2024. Exploration and Auctioning: * Central Government successfully auctioned 24 blocks of critical and strategic minerals in 4 tranches in 2024. * Increased exploration of critical minerals: GSI undertook 368 exploration projects in the past three years. * 195 projects are being executed in FY 2024-25, and 227 projects have been approved for the upcoming financial year. Foreign Investment and Trade: * 100% FDI allowed under the automatic route for mining and exploration of metal and non-metal ores. * A foreign company can incorporate an Indian subsidiary or invest in an existing Indian Company to become eligible for grant of mining and exploration rights. * Eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals in the Union Budget for 2024-25. Impact Analysis: Ministry of Mines: Impact: Responsible for implementing the NCMM and auctioning blocks for exploration licenses. Action Required: Continue auctioning blocks, oversee exploration activities, and manage the implementation of the NCMM. Mining Companies (Public and Private): Impact: Opportunity to invest in and develop critical mineral resources in India. Action Required: Participate in auctions, conduct exploration activities, and develop mining projects. Foreign Investors: Impact: Can invest in Indian mining companies or establish subsidiaries for mining and exploration. Action Required: Explore investment opportunities and establish a presence in the Indian mining sector. Geological Survey of India (GSI): Impact: Responsible for conducting exploration projects for critical and strategic minerals. Action Required: Execute approved exploration projects and plan for future exploration activities. Automobile Manufacturers/SIAM Impact: Indirectly affected by the availability and cost of critical minerals for EV batteries. Action Required: Monitor developments in the critical minerals sector and collaborate with relevant stakeholders to secure access to these resources.

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