Leg-up for lithium hunt as LS passes mining Bill

Source: The post is based on the article “Leg-up for lithium hunt as LS passes mining Bill”  published in Livemint on 29th July 2023.

What is the News?

Lok Sabha has approved the Mines and Minerals (Development and Regulation Amendment) Bill, 2023.

What is Mines and Minerals (Development and Regulation Amendment) Bill, 2023?

The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 which regulates the mining sector. 

The bill seeks larger participation of the private sector in mineral exploration and production.

How does the bill help in Lithium production?

The Bill brings lithium out from the list of restrictive atomic minerals which require mining grants from the Centre with only government companies given licenses. 

This would allow auction of this critical mineral used extensively for making batteries for electric vehicles.

What are the other key provisions of the bill?

Critical and strategic minerals: The bill proposes to bring eight of 12 atomic minerals, including lithium bearing minerals, zirconium bearing minerals, beach sand minerals, titanium bearing minerals, minerals of rare earth group containing uranium and thorium, into a new category – critical and strategic minerals. 

– The Centre will have the power to give concessions for these minerals to both public and private mining companies.

Auctioning of high value minerals: The bill empowers the central government to exclusively auction mining leases and composite exploration licenses for certain critical high value minerals such as gold, silver, platinum, copper.

Forest clearances: The Bill also dispenses with cumbersome forest clearances for mine reconnaissance and prospecting operations, making it easier for private firms to participate in exploration of the country’s mineral resources.

Composite general License: The bill empowers states to grant composite mineral license without having to get a central nod. This is expected to enable state governments to put up blocks for auction at a faster pace.