India’s First Critical Mineral License Auctions

Context

Karnataka and Rajasthan are the first states in India to  have recently initiated auctions for exploration licenses of critical and deep-seated minerals.

Key Highlights

• The auctions in Karnataka and Rajasthan covered minerals like gold, copper, and lithium.
• Karnataka auctioned one block each of gold, copper, and lithium, at the same time as Rajasthan auctioned three blocks along with rare earth factors, rare metals, and potash.

What are exploration licenses?

• Exploration licenses are permissions or rights given by means of government authorities to perform exploration activities in the specific regions.
• These  licenses help Junior Mining Companies get knowledge from around the world to acquire, technique, and apprehend exploration information.
• It enables corporations to take risks to discover deep-seated minerals, the usage of expertise and new technologies.

Benefits of exploration licenses

• Empowering Junior Mining Companies

• • • Expansion of knowledge: Exploration Licenses assist small mining companies learn from experts worldwide.
    • Interpretation of Data: These businesses can gather, technique, and interpret exploration facts using contemporary technology. They use new equipment and techniques to locate valuable minerals deep in the earth.

• Boosting State Government Revenues

• The Mines and Minerals (Regulation and Development) Act (1957)

• • • • This rule regulates the mining sector in India.
      • In 2023, a brand new mineral concession of Exploration was introduced for License for 29 essential and deep-seated minerals
    • Objective: This amendment aims to enhance exploration and mining of essential and deep-seated minerals in the country.
  • Exploration of minerals: With Exploration Licenses, companies search for minerals in precise regions.
    • They locate particular areas wherein mining can happen.
  • Direct auction for mining rentals: These explored blocks can then be directly auctioned for mining rentals.
    • The money earned from selling these regions enables the state governments.

• Focusing on critical Minerals

• • Exploration Licenses assist in finding critical minerals like gold, copper, and lithium.
• Support to Other Industries: These minerals play an essential function in diverse industries and technology.
  • Exploring and the usage of these minerals further assist our economy develop and increase.

About critical minerals

• A mineral is critical when the risk of supply shortage and related effect on the financial system is (exceptionally) higher than different raw materials.
• These minerals are important for financial improvement and country wide protection, and their loss of availability/ the awareness of extraction/ processing in a few geographical locations ought to potentially result in supply chain vulnerabilities.
• These (consisting of lithium, graphite, cobalt, titanium, and uncommon earth elements) are critical for the advancement of many sectors, along with excessive-tech electronics, telecommunications, shipping, and defence.
• It bureaucracy part of more than one strategic cost chains, along with –
  • Clean technology initiatives inclusive of zero-emission vehicles, wind generators, sun panels;
  • Information and verbal exchange technologies, consisting of semiconductors; and
  • Advanced manufacturing inputs and substances which include defence programs, permanent magnets, ceramics.

Source: The Hindu

UPSC Mains Practice Questions

Q.“In spite of adverse environmental impact, coal mining is still inevitable for development”. Discuss. (2017)

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