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Critical Minerals
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- Context (LM): The Union government has decided to launch a Critical Minerals Mission to boost the domestic production, recycling, and acquisition of these minerals from overseas in Budget 2024.
- It has also waived customs duty on 25 critical minerals, given their growing demand across sectors.
- A critical mineral is a metallic or non-metallic element crucial for modern technologies, economies, and national security, with the potential risk of disruptions to its supply chains. It includes both primary and processed minerals.
- A mineral is critical when the risk of supply shortage and associated economic impact is (relatively) higher than other raw materials.
- Countries create their own critical minerals list based on strategic needs.
- These are minerals that are essential for economic development and national security.
- The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations can lead to “supply chain vulnerabilities and even disruption of supplies”.
India’s net import dependency of Critical mineral
Critical Mineral | Percentage dependency | Major Import Sources (2020) |
Lithium | 100% | Chile, Russia, China, Ireland, Belgium |
Cobalt | 100% | China, Belgium, Netherlands, US, Japan |
Nickel | 100% | Sweden, China, Indonesia, Japan, Philippines |
Vanadium | 100% | Kuwait, Germany, South Africa, Brazil, Thailand |
Niobium | 100% | Brazil, Australia, Canada, South Africa, Indonesia |
Germanium | 100% | China, South Africa, Australia, France, US |
Rhenium | 100% | Russia, UK, Netherlands, South Africa, China |
Beryllium | 100% | Russia, UK, Netherlands, South Africa, China |
Tantalum | 100% | Australia, Indonesia, South Africa, Malaysia, US |
Strontium | 100% | China, the US, Russia, Estonia, Slovenia |
Zirconium(zircon) | 80% | Australia, Indonesia, South Africa, Malaysia, US |
Graphite(natural) | 60% | China, Madagascar, Mozambique, Vietnam, Tanzania |
Manganese | 50% | South Africa, Gabon, Australia, Brazil, China |
Chromium | 2.5% | South Africa, Mozambique, Oman, Switzerland, Turkey |
Silicon | <1% | China, Malaysia, Norway, Bhutan, Netherlands |
Critical Minerals of India
- GoI has unveiled the country’s first report on “Critical Minerals for India” and has identified 30 critical minerals, including nickel, titanium, vanadium, tungsten, etc.
- The identification of the critical minerals is a part of multiple strategic value chains, which include:
- clean technologies initiatives (such as zero-emission vehicles, wind turbines, and solar panels);
- information and communication technologies (including semiconductors);
- advanced manufacturing inputs and materials (such as defence applications, permanent magnets, and ceramics).
- The minerals were identified based on a report by an Expert Committee of the Ministry of Mines.
How does India identify Critical Minerals?
List of Critical Minerals of India
- These 30 critical minerals are 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.
- The committee also recommended the creation of the Centre of Excellence for Critical Minerals (CECM) under the Ministry of Mines.
- This proposed Centre will periodically update the list of critical minerals for India.
Private Mining of Critical Minerals
- Context (DTE): GoI amended the Mines and Minerals (Development and Regulation) Act of 1957, allowing private players to mine six critical minerals — lithium, titanium, beryllium, zirconium, niobium, and tantalum.
- These six minerals have been removed from the country’s atomic minerals lists to allow private players to mine them.
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Description of the Six Critical Elements Opened for Private Mining
Lithium
- Lithium is a non-ferrous, soft, silvery-white alkali metal.
- It is also called ‘white gold’ due to its high demand for rechargeable batteries.
Properties
- Under standard conditions, it is the least dense metal and the least dense solid element.
- Like all alkali metals, it is highly reactive and flammable, so it must be stored in vacuum, inert atmosphere, or inert liquid (such as purified kerosene or mineral oil).
- It exhibits a metallic lustre. But it corrodes quickly in the air to a dull silvery grey, then black tarnish.
Occurrence
- It never occurs freely in nature but occurs mainly as pegmatitic minerals.
- Due to its solubility as an ion, it is present in ocean water and commonly obtained from brines (high-concentration salt solution in water).
- Lithium metal is isolated electrolytically from a mixture of lithium chloride and potassium chloride.
Pegmatite is a coarse-textured igneous rock that forms during the final stage of magma’s crystallisation. It contains large crystals and minerals rarely found in other types of rocks. |
Global Reserves and Production
- Countries with largest reserves: 1st Bolivia > 2nd Argentina > 3rd Chile > 4th US > Australia > China.
- 54% of the world’s lithium reserves are in three South American countries: Argentina, Bolivia, and Chile. The area is referred to as the ‘Lithium Triangle’.
- Top Producers: 1st Australia > 2nd Chile > 3rd China > 4th Aregentina > 5th Zimbabwe
Uses
- Lithium-ion batteries are used in laptops, mobiles, electric vehicles, wind turbines, solar panels, etc.
- It is used to make alloys with aluminium and magnesium, which are stronger but lighter.
- It is used in nuclear reactions, the ceramics and glass industry, and lubricating greases.
- It is also used for carbon dioxide removal and air purification (esp. in confined areas, such as spacecraft and submarines).
Titanium
- Titanium is a metal that has a silver-grey appearance.
- Properties: high strength, lightweight, and is corrosion-resistant, heat resistant (due to high melting point), and biocompatible (compatible with living tissues and has low reactivity with the human body).
- Occurrence: found in nature only as an oxide, not in its pure metallic form.
- It is found in various minerals, rocks, and soils. It is also present in plants, animals, natural waters, deep-sea dredgings, meteorites, and stars.
- Ores: The most abundant titanium ore is ilmenite. Other titanium ores include rutile and titanite.
- Ilmenite: It is an iron-black, heavy, metallic oxide mineral. It is composed of iron and titanium oxide. It is commonly found in igneous rocks.
- Rutile: It has a distinctive reddish-brown colour and a higher titanium dioxide content than ilmenite. It occurs in igneous and metamorphic rocks and is often found in association with ilmenite.
- Titanite: It is a calcium titanium silicate mineral. It is green, yellowish-green, brown, or black in colour. It is commonly found in metamorphic and igneous rocks.
An oxide is a chemical compound that contains at least one oxygen atom bonded to one or more other elements. Oxides are formed when an element reacts with oxygen. |
- Top Producers of Titanium: 1st China > 2nd Russia > 3rd Japan > 4th Kazakhstan > 5th Ukraine
- Uses: nuclear applications, defence, aerospace, marine, and construction industries, high-performance alloys, electrical goods, medical implants, and jewellery.
Zirconium
- Zirconium is a greyish-white metal.
- Properties: soft, malleable, lustrous, ductile, and corrosion-resistant.
- Occurrence: zircon mineral (zirconium silicate) commonly found in beach sands.
- Baddeleyite (pure zirconium dioxide) is the only other important zirconium mineral.
- Top Producers: 1st Australia > 2nd South Africa > 3rd China > 4th Ukraine > 5th Mozambique
- Uses: nuclear applications, aerospace and defence industries, production of superalloys, capacitors, medical implants, ceramics, and zircon Gemstones.
Beryllium
- Beryllium is a steel-grey metal with chemical properties resembling those of aluminium.
- Properties: light, high melting point, excellent thermal conductivity, low density and brittle.
- Occurrence: It does not occur freely in nature. It is primarily extracted from beryl and bertrandite minerals. Beryl forms gemstones, such as emeralds and aquamarine.
- Top Producers of Beryllium: 1st United States > 2nd China > 3rd Mozambique > 4th Brazil > 5th Russia.
- Uses: nuclear applications, aerospace and defence industries, production of alloys and semiconductors (due to its ability to improve the electrical performance of semiconductors).
- Beryllium is transparent to X-rays, making it an ideal material for X-ray windows.
Niobium
- Niobium is a grey metal that looks like steel or, when polished, like platinum.
- Properties: It is soft, ductile, corrosion-resistant, and superconductive (at low temperatures).
- Occurrence: It is primarily obtained from the minerals columbite-tantalite (coltan) and pyrochlore.
- Top Producers of Niobium: 1st Brazil > 2nd Canada > 3rd Rwanda > 4th Nigeria > 5th Mozambique.
- Uses: nuclear applications, alloys, electronic components, orthopaedic and dental implants, etc.
Tantalum
- Tantalum is bright, silver-grey metal.
- Properties: It is very hard and has high density, high melting point, and corrosion resistance.
- Occurrence: It is obtained from the mineral columbite-tantalite (coltan).
- Columbite-tantalite is a black-to-brownish-black mineral that contains both niobium and tantalum.
- Top Producers: 1st Democratic Republic of Congo > 2nd Brazil > 3rd Rwanda > 4th Nigeria > 5th China.
- Uses: nuclear applications, aerospace and defence industries, production of capacitors, medical implants, super alloys, etc.
Why Private Mining is Allowed for These Critical Minerals
- Critical minerals are in high demand as countries move towards green transition and e-mobility.
- Allowing private players in the mining of critical metals will bring more capital and foster the use of new and emerging technologies for exploration and mining processes.
- India currently is heavily dependent on imports of these minerals. So, the need to increase their production is on high priority.
Lower Royalty Rates of Critical Minerals
- Context (PIB | IE): Cabinet has amended the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act 1957) to specify royalty in rates of three critical minerals, namely, Lithium, Niobium, and Rare Earth Elements (REEs).
- Recently through another amendment of MMDR Act 1957, GOI has removed six critical minerals, including lithium and niobium, from the country’s atomic minerals lists to allow private players to mine them.
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- These changes to the rules build on an earlier move to ease the issuing of mining leases and composite licences for 24 critical minerals.
Rare Earth Elements (REEs)
- REE are a group of 17 chemical elements.
- They comprise the 15 lanthanide elements, along with scandium and yttrium.
- They are relatively abundant in Earth’s crust.
- They are rare because they are found in low concentrations and mixed with other minerals, making them difficult and expensive to extract.
- REEs are used to make magnets for electric vehicles (EVs), wind turbines, weapons, etc.
- They are used in electric vehicle (EV) motors, medical devices, weaponry, etc.
- REEs are divided into Heavy (HREEs) and Light (LREEs).
- LREEs are abundant, while HREEs are more critical due to their high demand and low availability.
- Among LREEs, neodymium is the most critical as it is extensively used in all mobile phones, medical equipment and electric vehicles.
- HREEs (like dysprosium, yttrium, and cerium) are critical for clean energy technologies; however, due to their limited supply, they have a small market.
- REEs available in India: Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc.
Learn more about the Recycling of Rare Earth Metals.
Significance of lower royalty rates
- The lower royalty rates will attract private players in mining critical metals. They will bring more capital and new technologies; as a result, domestic production of critical minerals will increase.
- India is currently heavily dependent on imports of these minerals. So, the need to increase their production is a high priority.
- Critical minerals are in highly important for India to move towards green transition and e-mobility.
Strategic significance of critical minerals
- Economic implications: Integral to the manufacturing sector, especially in the production of EVs, renewable energy systems, and high-tech devices.
- National security and defense: It is essential for defense technologies, including weapon systems, communication equipment, and surveillance.
- Diplomatic Leverage: Fostering partnerships and collaborations with mineral-producing nations. For eg, the India-Australia Critical Minerals Investment Partnership.
Concerns associated with the mining of critical minerals
- Radioactivity: These six critical minerals are also atomic minerals. So the processing of these minerals may expose workers to radioactivity.
- Nuclear Waste Management: These minerals are used in nuclear applications and they are also corrosion-resistant. So the waste generated after their use in nuclear applications must be safely stored and isolated to prevent any potential environmental or health hazards.
- Environmental Impact: Mining activities of these minerals may disturb natural habitats, affect local ecosystems, and potentially contribute to soil and water pollution.
- Ethical Sourcing: In some regions, mining practices have been associated with social and human rights issues, including unethical labour practices and armed conflicts financed by the illegal trade of minerals.
- High-Temperature Processing Challenges: These minerals are high-temperature resistant. So, they require high-temperature processing which is energy-intensive and complex.
- Health Hazards: Inhaling the gases and fumes released during the mining and processing of these minerals cause different diseases. For e.g., prolonged exposure to beryllium can cause a lung disease called berylliosis.
- Infrastructure gaps: Insufficient infrastructure for mining, processing, and refining critical minerals poses a significant challenge leading to higher costs, delays, and environmental concerns.
- Dependence on imports:
- India imports 80 percent of its lithium and 85 percent of its cobalt from China.
- China is the world’s largest producer of 16 critical minerals, responsible for approx 60-70% of global production of cobalt and rare earth elements.
- Recycling and waste management: As per UNEP, less than 1% of the critical minerals used in electronic waste are recycled.
Way Forward
- Developing a national policy framework: Defining vision, objectives, priorities, and actions, and coordinating implementation across ministries and stakeholders. For eg. Creating a new list of such minerals in the MMDR Act.
- Enhancing exploration and production by leveraging geological potential, attracting private investment, and explore offshore and deep-sea mining for critical minerals.
- Strengthening international cooperation, diversify supply chains, promote responsible sourcing, and participate in global platforms. For eg, Mineral Security Cooperation between India, USA and Australia, being part of G7’s Sustainable Critical Minerals Alliance.
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