First ever tranche auction of critical and strategic minerals

Why in News?

Recently, The Ministry of Mines has initiated the first ever tranche auction of critical and strategic minerals.

More about News

1. The first tranche auction comprises 20 blocks specializing in Lithium and Rare Earth Elements (REE).
2. Out of the 20 blocks, 16 are composite licences, encompassing exploration, discovery, and up-to-processing, while four are mining leases, indicating proven mineral reserves.

About Critical Minerals

1. Critical Minerals are crucial components of modern technologies and are at risk of supply chain disruptions.
2. The Ministry of Mines has identified 30 critical minerals in June 2023, including Lithium, Cobalt, Nickel, and Vanadium.
3. The 2023 amendment to the Mines and Minerals (Development and Regulation) Act 1957 has identified 24 minerals as Critical and Strategic minerals.
4. The amendment grants the Central Government the authority to grant mineral concessions for these minerals.
5. The revenue generated from auctions will be deposited into the accounts of the State Governments.

Significance of Critical minerals

1. This is crucial for a country's economic development and national security.
2. Lithium and Silicon are crucial in the production of technologies and materials utilized in the aerospace and defense sectors.
3. REE and Cobalt play a crucial role in the development of climate-friendly technologies such as electric vehicles, solar panels, and wind turbines.

Concerns associated with Critical Minerals

1. The scarcity of these minerals and their concentrated extraction and processing in a few countries could potentially create supply-chain vulnerabilities.
2. These minerals are insufficiently substituted and have low end-of-life recycling rates, thereby increasing their supply risks.

Must Check: Best IAS Coaching In Delhi