SUMMARY

The article from The Hindu BusinessLine, published on June 6, 2025, titled "India set to amend laws for allowing overseas exploration of critical minerals with ₹5,600 crore war chest," details proposed amendments to the Mines and Minerals (Development and Regulation) Act, 2023, to support India’s National Critical Minerals Mission (NCMM).

Key Points

1. Proposed Amendments: India plans to amend the Mines and Minerals Act in the upcoming Monsoon Session of Parliament to enable the use of ₹5,600 crore from the National Mineral Exploration Trust (NMET) for overseas exploration of critical minerals, including risk coverage (₹4,000 crore) and exploration support (₹1,600 crore).
2. National Critical Minerals Mission (NCMM): The NCMM, with a total outlay of ₹16,300 crore from 2024-25 to 2030-31 and an additional ₹18,000 crore from Central Public Sector Enterprises (CPSEs), aims to secure critical mineral supplies for strategic sectors like clean energy, electronics, and defense.
3. Overseas Exploration: Funds will support exploration in mineral-rich countries like Zambia, where India has secured 9,000 sq km for copper and cobalt exploration, and other regions like Australia, Argentina, and African nations through partnerships and acquisitions.
4. Tailings Policy: The amendments propose a new tailings policy to incentivize private players to extract critical minerals from mining waste (e.g., overburden, fly ash, red mud), with a revised royalty structure to encourage investment. A ₹1,500 crore recycling scheme is also planned.
5. Critical Minerals Focus: The policy reclassifies minerals like barytes, feldspar, mica, and quartz, previously considered minor, for critical mineral extraction to ensure proper reporting and utilization.
6. Strategic Importance: The amendments aim to reduce India’s import dependence (e.g., ₹30,000 crore import bill in FY24 for critical minerals) and enhance mineral security for industries vital to India’s green energy transition and economic growth.

These changes reflect India’s push to strengthen its global critical minerals supply chain through legislative reforms, international collaborations, and innovative recycling strategies.

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