Page 12 - Why we need a New Mineral Exploration Policy for National Mineral Security?
P. 12
Discussion Paper
Gallium (Ga), Germanium (Ge), Selenium (Se), Indium of new technologies and processes for improving
(In), and Tellurium (Te); and of course the Rare Earth the feasibility of conversion of the existing mineral
Metals and Atomic Metals. resources into viable economic resources and reserves.
In many cases, the technology or the knowledge needs
A study by The Council for Energy, Environment to be sourced from advanced mineral jurisdictions
and Water (CEEW) titled “Critical Non-Fuel Mineral (and locally customized), perhaps as part of FDI. As
Resources for India’s Manufacturing Sector: A Vision for advocated by the NMP 2008, attention needs be given
2030” states as follows: to beneficiation and agglomeration techniques to bring
lower grades and finer particle-size material into use.
“A clear understanding at the national level, of India’s Research organizations, including the Mineral Processing
mineral resource base, is a prerequisite for any kind of Laboratories of the IBM will need to be strengthened
strategic planning for resource security. Currently, less than for the development of regional-level processes for
10% of India’s total landmass has been geo-scientifically beneficiation and mineral and elemental analysis of ores
surveyed for an assessment of the underlying mineral and ore-dressing products. While CSIR labs and IBM can
wealth. This is a big deterrent for private exploration do “public good” process R&D based on regional samples,
agencies to invest, as they require good base line data to deposit-specific process R&D needs to be done by
justify risky investments. Further, the recently amended the concessionaire on a commercial basis (though CSIR
MMDR Act, 2015 advocates for a transparent regime for labs and IBM can do such work for the concessionaire
the grant of mining leases, but certain provisions such as on a job basis).
the non-exclusive reconnaissance permit act as deterrents
to private investment. The expectation of returns when risk In the intermediate R&D space, where the feasibility
capital is employed is also high and provisions of royalty of the deposit is the question, process R&D to establish
to RP holder (from the subsequent miner) are not seen as feasibility constitutes a high-risk high-reward situation
lucrative. and the creation of a venture-capital-funded process
R&D set up is clearly required if the concept of zero-
As recognised by the NMEP (2016), a prioritisation of waste mining is to be taken to its logical conclusion. Fiscal
exploratory activities is essential to make best use of the as well as non-fiscal incentives need to be structured
limited amount of resources available with the government. through a well-thought out policy after a detailed
The study (i.e the CEEW study) proposes a useful decision- study of how the system works in other countries,
tree analysis, overlaid with indicators of criticality of specific such as Australia and Canada, especially the Australia’s
mineral, which then provides a priority order for exploration Cooperative Research Centre (CRC) mechanism which
efforts. This is not a definitive approach but also identifies supports end-user driven research collaboration. In this
interventions at other levels – trade, recycling or finding connection, the importance of prefeasibility studies to
technical substitutes. The study also highlights minerals get the best value from the auction of mineral resources
with low or no reserves in India, and the ones, which are under the MMDR Act cannot be overemphasized in
available only as an associated, or by-product from other relation not only to the beneficiation of low grades, but
mineral processing. These include bismuth, cadmium, also (as mentioned earlier) the co-production of minor
gallium, germanium, indium, molybdenum, rhenium, metals, many of them of strategic value, as by-products.
selenium and tin, and all require specific attention at the
national level.”
Clearly the paradigm for mineral resource security in
India is one where exploration priorities are determined
keeping in view the medium-term requirement for
minerals and development of processes through R&D
to ensure optimum extraction of those minerals and
metals which are identified in the prefeasibility studies
as requiring process R&D for their economic extraction.
R&D to take exploration results forward
Efforts will need to be directed towards the development
12 JUNE 2017
Gallium (Ga), Germanium (Ge), Selenium (Se), Indium of new technologies and processes for improving
(In), and Tellurium (Te); and of course the Rare Earth the feasibility of conversion of the existing mineral
Metals and Atomic Metals. resources into viable economic resources and reserves.
In many cases, the technology or the knowledge needs
A study by The Council for Energy, Environment to be sourced from advanced mineral jurisdictions
and Water (CEEW) titled “Critical Non-Fuel Mineral (and locally customized), perhaps as part of FDI. As
Resources for India’s Manufacturing Sector: A Vision for advocated by the NMP 2008, attention needs be given
2030” states as follows: to beneficiation and agglomeration techniques to bring
lower grades and finer particle-size material into use.
“A clear understanding at the national level, of India’s Research organizations, including the Mineral Processing
mineral resource base, is a prerequisite for any kind of Laboratories of the IBM will need to be strengthened
strategic planning for resource security. Currently, less than for the development of regional-level processes for
10% of India’s total landmass has been geo-scientifically beneficiation and mineral and elemental analysis of ores
surveyed for an assessment of the underlying mineral and ore-dressing products. While CSIR labs and IBM can
wealth. This is a big deterrent for private exploration do “public good” process R&D based on regional samples,
agencies to invest, as they require good base line data to deposit-specific process R&D needs to be done by
justify risky investments. Further, the recently amended the concessionaire on a commercial basis (though CSIR
MMDR Act, 2015 advocates for a transparent regime for labs and IBM can do such work for the concessionaire
the grant of mining leases, but certain provisions such as on a job basis).
the non-exclusive reconnaissance permit act as deterrents
to private investment. The expectation of returns when risk In the intermediate R&D space, where the feasibility
capital is employed is also high and provisions of royalty of the deposit is the question, process R&D to establish
to RP holder (from the subsequent miner) are not seen as feasibility constitutes a high-risk high-reward situation
lucrative. and the creation of a venture-capital-funded process
R&D set up is clearly required if the concept of zero-
As recognised by the NMEP (2016), a prioritisation of waste mining is to be taken to its logical conclusion. Fiscal
exploratory activities is essential to make best use of the as well as non-fiscal incentives need to be structured
limited amount of resources available with the government. through a well-thought out policy after a detailed
The study (i.e the CEEW study) proposes a useful decision- study of how the system works in other countries,
tree analysis, overlaid with indicators of criticality of specific such as Australia and Canada, especially the Australia’s
mineral, which then provides a priority order for exploration Cooperative Research Centre (CRC) mechanism which
efforts. This is not a definitive approach but also identifies supports end-user driven research collaboration. In this
interventions at other levels – trade, recycling or finding connection, the importance of prefeasibility studies to
technical substitutes. The study also highlights minerals get the best value from the auction of mineral resources
with low or no reserves in India, and the ones, which are under the MMDR Act cannot be overemphasized in
available only as an associated, or by-product from other relation not only to the beneficiation of low grades, but
mineral processing. These include bismuth, cadmium, also (as mentioned earlier) the co-production of minor
gallium, germanium, indium, molybdenum, rhenium, metals, many of them of strategic value, as by-products.
selenium and tin, and all require specific attention at the
national level.”
Clearly the paradigm for mineral resource security in
India is one where exploration priorities are determined
keeping in view the medium-term requirement for
minerals and development of processes through R&D
to ensure optimum extraction of those minerals and
metals which are identified in the prefeasibility studies
as requiring process R&D for their economic extraction.
R&D to take exploration results forward
Efforts will need to be directed towards the development
12 JUNE 2017
