Home India Department of Atomic Energy Parliament Question: Rare Earth Minerals...
Date: 2025-07-23 Category: Not Applicable State: Union Government Country: India

Parliament Question: Rare Earth Minerals

Issued by Department of Atomic Energy · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document, a response to Lok Sabha Starred Question No. 45 on July 23, 2025, addresses rare earth minerals (REM) in India. It details estimated reserves, import/export data, international collaborations, supply chain resilience measures, and potential impacts of export restrictions. The Ministry of Mines is actively working to secure critical mineral supply chains through policy reforms, exploration projects, and international partnerships, including the launch of the National Critical Mineral Mission (NCMM) on January 29, 2025. Key Points / Main Content: Rare Earth Element (REE) Resources: - Approximately 7.23 million tonnes (Mt) in-situ REO are contained in 13.15 Mt of monazite across multiple states. - 1.29 Mt in-situ REO resource exists in hard rocks in parts of Gujarat and Rajasthan. - Geological Survey of India (GSI) has augmented 482.6 Mt resources of REE ore. Import and Export: - Import: Nil. - Export: 18 Tonnes over the last 10 years. International Collaborations: - Ministry of External Affairs is engaging to address export restrictions imposed by certain countries. - Ministry of Mines has agreements with countries like Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D'Ivoire and organizations like the International Energy Agency (IEA). - Khanij Bidesh India Limited (KABIL) is acquiring overseas mineral assets, including lithium projects in Argentina. - Government-to-Government (G2G) MoUs are being pursued with Brazil and the Dominican Republic. Supply Chain Resilience: - Amendment to the Mines and Minerals Development and Regulation Act, 1957 (MMDR Act) in 2023. - Omission of six minerals from the list of 12 atomic minerals. - Creation of a list of 24 critical and strategic minerals. - Central Government empowered to auction mining leases for critical strategic minerals. - Introduction of exploration license for 29 minerals. - Geological Survey of India (GSI) is conducting 195 mineral exploration projects in FY 2024-25 and 227 in FY 2025-26. - National Mineral Exploration Trust (NMET) has funded 195 projects related to critical minerals. - 33 private exploration agencies (NPEAs) are notified. - Auctions of 34 blocks in five tranches have been conducted. - Auctions launched for offshore mineral blocks and Exploration License (EL) blocks. - Customs duties eliminated on 25 minerals and reduced on 2 minerals. - Government of India exempted cobalt powder and waste, the scrap of lithium ion battery, Lead, Zinc and 12 more critical minerals during 2025-26 Budget. - KABIL has acquired 15,703 hectares in Argentina for lithium exploration and mining. - The Union Cabinet approved the National Critical Mineral Mission (NCMM) on January 29, 2025, with an expenditure of Rs. 16,300 crore. National Critical Mineral Mission (NCMM): - Launched on January 29, 2025. - Budget: Rs. 16,300 crore, plus Rs.18,000 crore expected investment. - Budgetary support of INR 2600 crore. - Duration: Seven years, from FY 2024-25 to 2030-31. - Objectives: Secure a long-term sustainable supply of critical minerals and strengthen India's critical mineral value chains. - Funding: INR 500 crore for developing processing parks, INR 1500 crore for incentive scheme for recycling of critical minerals from secondary sources and INR 100 crore for pilot projects for mineral recovery. Impact Analysis: Government of India (Ministry of Mines, Ministry of External Affairs): Impact: Responsible for policy implementation, international negotiations, and ensuring supply chain resilience. Action Required: Continue pursuing international collaborations, policy reforms, and exploration efforts. Implement and monitor the National Critical Mineral Mission (NCMM). Indian Importers: Impact: Benefit from diversified sources of rare earth minerals and reduced supply chain disruptions. Action Required: Stay informed about policy changes and international agreements, and explore opportunities for collaboration. Critical Sectors (Electric Vehicles, Renewable Energy, Defence): Impact: Enhanced supply chain resilience for critical minerals vital to these sectors. Action Required: Monitor the progress of domestic exploration and international collaborations to secure a stable supply of necessary resources. Japan: Impact: Potential disruptions in bilateral trade and strategic collaborations if rare earth mineral exports are affected. Action Required: Monitor developments in rare earth mineral exports and be prepared to mitigate any disruptions.

Key Entities Referenced

Rare Earth Minerals: A group of seventeen chemical elements crucial for various technologies and industries, the subject of the policy document. China: Country that imposed export restrictions, causing concern about the supply of rare earth minerals. Ministry of Mines: The Indian government ministry responsible for ensuring supply chain resilience for critical minerals. Khanij Bidesh India Limited (KABIL): A joint venture company established to acquire overseas mineral assets, especially lithium and cobalt. Catamarca province of Argentina: Location where KABIL has signed an agreement for lithium exploration and mining. Australia: Country with which the Ministry of Mines is seeking bilateral engagement for securing mineral resources. Mines and Minerals Development and Regulation Act, 1957 (MMDR): Indian legislation amended to address critical and strategic minerals. National Critical Mineral Mission (NCMM): A mission launched to secure a long-term sustainable supply of critical minerals for India.
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GOVERNMENT OF INDIA DEPARTMENT OF ATOMIC ENERGY LOK SABHA STARRED QUESTION NO. 45 ANSWERED ON 23.07.2025 RARE EARTH MINERALS *45. SHRI PRADYUT BORDOLOI ADV DEAN KURIAKOSE Will the PRIME MINISTER be pleased to state:- (a) the estimated reserves of the various rare earth minerals in the country; (b) the quantum of rare earth minerals imported and exported by the Government during the last ten years; (c) the details of any international collaborations or trade agreements being pursued to secure alternative sources of rare earth minerals and related technologies, particularly in view of recent export restrictions imposed by China; (d) the measures taken/being taken to ensure supply chain resilience for critical sectors such as electric vehicles, renewable energy and defence; and (e) the details of likely implications of halting rare earth mineral exports to Japan on the country’s bilateral trade, strategic collaborations in clean energy and electronics and existing export agreements? ANSWER THE MINISTER OF STATE FOR PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH) (a) to (e): A statement is laid on the Table of the House. *****STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 45 FOR REPLY ON 23.07.2025 REGARDING “RARE EARTH MINERALS” ASKED BY SHRI PRADYUT BORDOLOI AND ADV DEAN KURIAKOSE. (a) Atomic Minerals Directorate for Exploration and Research (AMD), a constituent unit of Department of Atomic Energy (DAE), is carrying out exploration and augmentation of minerals of rare earth group elements along the coastal / inland / riverine placer sands as well as in hard rock terrains in several potential geological domains of the country. As on date, the REE resources estimated by AMD are as follows: (i) Approximately 7.23 million tonne (Mt) in-situ Rare Earth Elements Oxide (REO) contained in 13.15 Mt monazite [a mineral of Thorium (~10% ThO ) and Rare Earths (~55% REO)] 2 occurring in the coastal beach, teri / red sand and inland alluvium in parts of Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra. (ii) 1.29 Mt in-situ REO resource in hard rocks in parts of Gujarat and Rajasthan. Additionally, Geological Survey of India (GSI) has augmented 482.6 Mt resources of REE ore at various cut-off grades in 34 exploration projects. (b) The quantum of rare earth minerals imported and exported during the last 10 years is: Import : Nil Export: 18 Tonne (c) The Ministry of External Affairs is actively engaging with relevant stakeholders to alleviate the challenges arising from export restrictions on rare earth magnets imposed by certain countries. There have been continued engagements at bilateral and multilateral level to increase cooperation in peaceful uses of nuclear energy, including in rare earth minerals and related technologies. These efforts aim to mitigate disruptions in the supply chain and safeguard the interests of Indian importers. Ministry of Mines has been working to ensure supply chain resilience for critical minerals including Rare Earth Elements as they are key materials for sectors such as electric vehicles, renewable energy and defence. In the interest of developing bilateral cooperation with countries having rich mineral resources, the Ministry of Mines has entered into bilateral agreements with the Governments of a number of countries such as Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, Cote D’Ivoire and International organizations such as International Energy Agency (IEA). Ministry of Mines is also engaging on various multilateral and bilateral platforms such as Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF), and initiative on Critical and Emerging Technologies (iCET) for strengthening the critical minerals value chain.Ministry of Mines has set up Khanij Bidesh India Limited (KABIL), a joint Venture company with the objective to identify and acquire overseas mineral assets that hold critical and strategic significance, specifically targeting minerals like Lithium, Cobalt, and others. KABIL has already signed an Exploration and Development Agreement with CAMYEN, a state-owned enterprise of Catamarca province of Argentina for Exploration and mining of Five Lithium Blocks in Argentina. KABIL is also having regular interactions with Critical Mineral Office in Australia with the primary objective of acquiring critical and strategic mineral assets. Further, Ministry of Mines has initiated the process of entering into Government to Government (G2G) MoUs with Brazil and Dominican Republic for developing cooperation in the field of Rare Earth Minerals and Critical Minerals. The broad objectives of these MoUs are to provide an overarching framework for cooperation in research, development and innovation in mining, with a particular focus on rare earth elements (REE) and critical minerals. (d) Critical minerals such as lithium, graphite, cobalt, titanium, rare earth elements etc., are demand intensive due to their strategic uses in various sectors, viz., electric vehicles, renewable energy and defence. The Ministry of Mines has undertaken significant steps including various policy reforms to ensure supply chain resilience for these critical sectors: i. The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR) has been amended through the MMDR Amendment Act, 2023 w.e.f. 17.08.2023. Major reforms of Amendment Act, 2023 are: a) Omission of six minerals from the list of 12 atomic minerals namely Lithium, Titanium, Beryl and beryllium bearing minerals, Niobium, Tantalum and Zirconium bearing minerals. b) Created a list of 24 critical & strategic minerals in part D of Schedule-I of the MMDR Act. c) Section 11D of the Act empowered Central Government to exclusively auction mining lease and composite licence for critical & strategic minerals specified in Part D of the Schedule-I of the Act. d) Introduced exploration license for 29 minerals included in Schedule-VII. In addition, Ministry of Mines has also been empowered to auction blocks for grant of Exploration Licence through an order under section 20A of MMDR Act 1957. ii. To enhance the exploration program for identifying potential mining sites in order to boost domestic production for the critical minerals, Geological Survey of India (GSI), in the FY. 2024-25, has taken up 195 mineral exploration projects for critical and strategic minerals across the country. In the FY. 2025-26, total 227 projects are under execution. iii. Ministry of Mines has also focussed on funding various projects of mining exploration through National Mineral Exploration Trust (NMET). So far, NMET has funded 195 projects of critical minerals through various exploration agencies. iv. To encourage private participation in exploration, Ministry of Mines has notified 33 private exploration agencies (NPEAs). These agencies are taking up exploration projects through funding from NMET.v. Consequent to the amendment in the MMDR Act, Central Government has auctioned 34 blocks in five tranches. vi. First tranche of auction of offshore mineral blocks has been launched in November 2024 for 13 mineral blocks which includes 7 blocks of polymetallic nodules having critical minerals in Andaman Sea. vii. First tranche of auction of blocks for Exploration License (EL) was launched in March, 2025 for 13 Blocks for various critical minerals. viii. To support the critical minerals sector, Government has eliminated customs duties on 25 minerals and reduced Basic Customs Duties (BCD) on 2 minerals in the Union budget 24- 25. During 2025-26 Budget, GoI exempted cobalt powder and waste, the scrap of lithium- ion battery, Lead, Zinc and 12 more critical minerals. ix. Efforts are being made to secure overseas resources through bilateral engagements with mineral-rich countries such as Australia, Argentina, Chile etc. Notably, KABIL- a JV of the Ministry of Mines has acquired 15,703 hectares in Catamarca Province, Argentina, for lithium exploration and mining. Ministry of Mines is also engaged in various multilateral and bilateral platforms like Mineral Security Partnership (MSP), Indo-Pacific Economic Framework (IPEF), India-UK Technology and Security Initiative (TSI), Quad etc for strengthening the critical minerals value chain. Ministry of Mines has signed several MoUs with resource rich countries like Australia, Chile, Zambia, Peru etc. x. Further in order to develop a coordinated approach, the Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) on 29 January, 2025 with an expenditure of Rs. 16,300 crore and expected investment of Rs.18,000 crore by PSUs, etc. The Mission will be implemented over a period of seven years, from FY 2024-25 to 2030- 31 with a budgetary support of INR 2600 crore. The Mission aims to secure a long-term sustainable supply of critical minerals and strengthen India’s critical mineral value chains encompassing all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products. To strengthen the domestic processing capabilities for critical minerals, under the National Critical Mineral Mission (NCMM), INR 500 crore has been allocated for developing processing parks, INR 1500 crore has been allocated for incentive scheme for recycling of critical minerals from secondary sources. Pilot projects for mineral recovery have been approved with an allocation of INR 100 crore. Besides, to foster innovation the Ministry of Mines is providing funding R&D institutions, start-ups, and MSMEs. (e) In case of any further development in rare earth mineral exports to Japan, efforts shall be undertaken to mitigate the disruptions, if any. *****

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