India’s critical minerals drive: Legal reforms, domestic extraction, and aluminium’s emerging role

As the global clean energy transition, electric vehicle boom, and digital economy accelerate, India has realised the hard truth that its deep reliance on imported critical minerals is unsustainable. Thus, in an attempt to increase the domestic production of critical minerals, India is considering lifting a long-standing restriction that mandates the miners to extract only the mineral they have the licence for. Several reports indicate the reform will allow the leaseholders of thousands of mines, which were allocated before 2015 without formal auctions, to commercially mine newly-discovered strategic minerals like lithium, cobalt, and rare earths. Important to note, all of these minerals are vital for clean energy, automobiles, electronics, and defence.

Two officials on the condition of anonymity have even updated that the Indian government plans to introduce an amendment to the Mines and Minerals Act, making room for new provisions to cover over 2,500 legacy mining leases, many of which are currently idle.  The aim is to unlock the potential of the mines to revive operations and extract minerals critical to India’s economic and strategic goals.

Under the proposed act, miners will receive a separate licence through a deemed approval process.  No auctions or no additional premiums will be required, said the two people familiar with the updates. Although a query on the issue sent to the mines ministry has remained unanswered, but once the new framework comes into effect, miners will be able to extract critical minerals much needed for modern industries and the country’s economic well-being.