The Rajya Sabha has successfully passed the Mines and Minerals (Development and Regulation) (MMDR) Amendment Bill, a major step towards opening up India's mining sector to private players for critical and deep-seated minerals. With both houses of Parliament endorsing the bill, it now awaits the President's assent. The government's aim is to enable private firms to mine minerals crucial for economic development, national security, and energy transition.

The MMDR Amendment Bill seeks to modify the Mines and Minerals (Development and Regulation) Act, 1957, which currently governs the mining sector. Pralhad Joshi, the Union Minister of Mines, emphasized the importance of exploring these minerals to propel India to become the world's third-largest economy.

This reform is seen as crucial since India heavily relies on imports of various precious and critical minerals like lithium and cobalt. By allowing private players to participate, the mining sector is expected to witness increased transparency and become a game changer for the country.

The Bill's statement of objects and reasons highlights the potential risks associated with the lack of availability or concentration of critical minerals in specific regions, which could lead to supply chain vulnerabilities and disruptions. The global economy's future depends on technologies that heavily depend on minerals like lithium, graphite, cobalt, titanium, and rare earth elements, the statement emphasized.

Under the proposed seventh schedule to the Act, the exploration license granted through the auction will enable licensees to conduct reconnaissance and prospecting operations for critical and deep-seated minerals. Following exploration, the blocks will be auctioned for mining leases within a prescribed timeline, resulting in increased revenue for state governments. The exploration agency will also be entitled to a share in the auction premium paid by the mining lease holder.

Six of the 12 atomic minerals, including beryl, lithium, niobium, titanium, tantalum, and zirconium, have been opened up for private mining. These minerals find applications in the space industry, electronics, communications, the energy sector, and electric batteries, and are critical for achieving net zero emissions. Deep-seated minerals like gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, and diamonds are known to be more challenging and expensive to explore and mine compared to surficial or bulk minerals.