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India's Critical Minerals : Energy and Growth Catalysts.



  Oct 13, 2023

Critical Minerals



UPSC Civil Services Examination

What are Critical Minerals, and why are they significant for India?

Critical minerals are minerals that play a pivotal role in various high-tech industries, clean energy technologies, and national security. They are essential for applications like electric vehicles, renewable energy, electronics, and defense. India's focus on critical minerals is vital for its clean energy transition and achieving its net-zero emissions target.

How do Critical Minerals contribute to India's clean energy transition and net-zero emissions goal?

Critical minerals, such as lithium, niobium, and rare earth elements (REEs), are crucial for the production of clean energy technologies like electric vehicle batteries and renewable energy systems. They are essential for reducing greenhouse gas emissions and achieving a sustainable energy future.

What are the royalty rates for mining Critical Minerals in India?

The royalty rates for critical minerals in India are as follows:

For lithium extraction, mining companies will pay 3% of the prices prevailing on the London Metal Exchange (LME).
Niobium mining will incur a royalty rate of 3% of the average sale price.
For REEs (Rare Earth Elements), the royalty rate is set at 1% of the average sale price of rare earth oxide.

How do these royalty rates impact the domestic mining industry?

The establishment of royalty rates incentivizes domestic mining of critical minerals. It reduces India's dependence on imports and encourages the growth of the mining sector, leading to job creation and economic development.

Are there plans for auctions related to Critical Minerals in India?

Yes, the Indian government plans to launch auctions for critical and strategic minerals shortly. These auctions will include minerals like lithium, REEs, nickel, platinum group elements, potash, glauconite, phosphorite, graphite, and molybdenum.

How does the Geological Survey of India (GSI) contribute to this initiative?

The Geological Survey of India (GSI) plays a vital role by conducting exploration and providing valuable exploration reports for critical minerals. These reports inform India's efforts to harness its mineral resources for domestic use.

What is the overall impact of these initiatives on India's energy and economic landscape?

These initiatives support India's transition to clean energy sources, reduce emissions, and create opportunities for economic growth. They strengthen the nation's energy security and reduce dependence on foreign mineral supplies.

Can you provide examples of the applications of Critical Minerals in India's context?

Critical minerals like lithium are used in rechargeable batteries for electric vehicles and mobile devices, while REEs find applications in electronics, petroleum extraction, and renewable energy technologies. These minerals are essential for India's technological advancements and sustainable development.


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