Centre expands area limits by over 4x to boost critical minerals mining

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Centre expands area limits by over 4x to boost critical minerals mining

Notification 18 Jul 2024 03:35 PM IST ANI

The Centre has more than quadrupled the space allotted to individual players in order to encourage crucial resource mining. The government announced in an order that the 10 sq km restriction for mining leases has been increased to 50 sq km. The 25 sq km restriction for prospecting licences has been raised to 100 sq km.

The move comes after the Centre's maiden sale of crucial mineral blocks was unsuccessful earlier this year. The Centre cancelled 28 of the 38 blocks that were listed in the first two auctions because there were no interested bidders. This policy shift aims to address the unique challenges associated with mining critical minerals. These minerals are often found in deep-seated deposits and have a lower recovery rate compared to bulk minerals like limestone and iron ore.

The area limits were originally set under the Mines and Minerals Development and Regulation (MMDR) Act to prevent cartelisation in the mining sector. However, given the strategic importance of critical minerals for various industries and national security, the government has decided to revise these limits.

“Critical minerals require extensive exploration and extraction efforts due to their deep-seated nature and low recovery rates from ore. Increasing the permissible area for mining and prospecting is crucial to make these operations economically feasible,” said an official, adding that the decision has been taken within the ambit of the MMDR Act. The MMDR Act gives the Centre the power to increase the area but only if it is in the interest of development of a mineral or the industry.

As the Centre increases the area for individual players, sector experts emphasize enhancing technology to extract minerals fully from the mines.

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Centre expands area limits by over 4x to boost critical minerals mining

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