Tailings Policy & State Mining Index: Boosting India's Critical Mineral Mission

New Delhi, Feb 1 (PTI) Mines minister G Kishan Reddy on Saturday said the setting up of the state mining index will be a transformative step that will increase professionalisation of state mining departments, while the tailings policy would further bolster the objectives of the National Critical Mineral Mission.

The state mining index will encourage the state mining departments to innovate and adopt best practices in mineral exploration, auctioning, and sustainable mining.

Finance Minister Nirmala Sitharaman in her Budget speech said the mining sector reforms, including those for minor minerals, will be encouraged through sharing of best practices and instituting of a state mining index.

The announcement of a tailings policy, he said, would further bolster the objectives of the National Critical Mineral Mission.

The announcement of a tailings policy, he said, would further bolster the objectives of the National Critical Mineral Mission.

The FM in her Budget speech said the government will launch a policy for recovery of critical minerals from tailings or by-products of mining.

"Today's Budgetary announcements continue our government's steadfast commitment towards the growth and modernisation of the mining sector," Reddy said.

A state mining index will boost cooperative federalism as well as competition among states.

"...the introduction of the state mining index is a transformative step that will enhance professionalisation of state mining departments, encouraging them to innovate and adopt best practices in mineral exploration, auctioning, and sustainable mining. This will drive efficiency, attract investments, and unlock the immense potential of our mineral resources," the minister said.

The minister termed the elimination of import duties on non-ferrous metal scraps and critical mineral scraps, including cobalt powder and lithium-ion battery scraps, as a game-changer.

"These measures will enhance the competitiveness of our secondary metal and critical mineral recycling industries, reduce production costs, and stimulate new investments in advanced recycling technologies. This will lead to a major boost in supply chain resilience and promote India as a global leader in critical minerals processing," Reddy said.

Sitharaman said the Budget aims to initiate transformative reforms across six domains in which mining plays a significant role, Reddy said, adding that the reforms in the mining sector, especially with respect to critical minerals will mark a major step toward realising the vision of Viksit Bharat 2047, building an Atmanirbhar, future-ready Bharat.

"The series of reforms in the... mining sector will drive production and innovation at home and at the same time position India as a key player in the global minerals market. The reforms also come at an opportune time of the launch of National Critical Mineral Mission, giving it a massive thrust and will accelerate its implementation," he explained.

By enabling the recovery of valuable critical minerals from mining tailings, this policy will enhance domestic availability thereby strengthening our strategic industries, including clean energy, semiconductors, defence, and space.

Investing in research and development for efficient recovery processes will strengthen India's self-reliance in critical mineral supply chains, Reddy said.