Mining bill to ease sourcing and exploration of critical minerals

Under the mission, funds for domestic critical mineral exploration and exploration activities abroad are to be funded by National Mineral Exploration Trust, which can currently only be utilised for domestic reserves.

The Mines and Minerals (Development and Regulation) Amendment Bill, 2025, which is expected to be tabled during the upcoming monsoon session of Parliament will help fast-track mining of critical minerals and operationalise the National Critical Mineral Mission (NCMM), people familiar with the matter said.

Mining bill to ease sourcing and exploration of critical minerals

The draft legislation is expected to facilitate sourcing, exploration and mining of critical minerals outside India. NCCM envisions securing a long-term sustainable supply of critical minerals and strengthening India’s critical mineral value chains encompassing all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products. A key aspect of the mission is also acquisition of critical mineral assets abroad.

Under the mission, funds for domestic critical mineral exploration and exploration activities abroad are to be funded by National Mineral Exploration Trust, which can currently only be utilised for domestic reserves. “The amendment will be key to facilitate use of NMET funds for mining, sourcing activities abroad,” said one of the people cited above, asking not to be named. NMET is expected to provide funds of around ₹1,600 crore for exploration activities outside India, according to a mission document available on the website of the Union mines ministry.

There is a rush among countries to acquire and domestically mine critical minerals due to the global trade disruptions. In response to US’s tariff imposition, China placed export restrictions on rare earth elements in April, which not only squeezed supply of crucial minerals and magnets to the West but also to all other importers including India. China effectively has a monopoly over critical rare earth mineral resources. These are key for defence and clean energy technologies.

HT reported on July 16 that in a bid to fast-track forest and environmental clearances for critical or strategically important minerals, including rare earth ones, the Union environment ministry is considering these proposals under a separate head in its Parivesh 2.0 portal.

Officials in the ministry of mines said: “With the launch of the National Critical Mineral Mission there have been intensified discussions to fast-track critical minerals exploration as well as mining. As a result of these discussions, the MoEFCC recently issued two orders towards the fast tracking of clearances.” One of these is the creation of Parivesh 2.0 for processing of mining proposals for critical minerals.

“Also, there is a thrust on operationalisation of mines, especially the critical and strategic minerals. The ministry has set up a project monitoring unit which is handholding states for fast tracking of clearances,” they added.

The recently launched Special Assistance to States for Capital Investment (SASCI) incentive by the Centre will also help in faster operationalisation of mines. Incentives have been announced under SASCI for operationalization of mines and mining reforms.

In June 2023, a seven-member committee constituted by the ministry of mines identified a set of 30 critical minerals based on a three-stage assessment of resource/ reserve position in the country, production, import dependency, use for future technology/ clean energy, and requirement for fertilisers.

In January, the Centre also launched the National Critical Mineral Mission (NCMM) to establish a robust framework for self-reliance in the critical mineral sector. Under this mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from 2024-25 to 2030-31.

The International Energy Agency has already flagged environmental impacts of mining rare earths, including biodiversity loss and social disruption due to land use change, water depletion and pollution, waste related contamination, and air pollution.