Page 13 - The Mineral Development and Regulation Framework in India (English Version)
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Discussion Paper
appropriate linkages between exploitation of minerals (REEs) and Energy Critical Elements (ECEs) are
and their end use including the development of industry extensively used in clean energy applications like wind
based on the minerals should be established wherever energy turbines, hybrid car batteries/electric motors, solar
feasible, a downward curve in an industrial sector using energy collectors, thin film technologies and in defense-
a particular mineral within the country need not be related systems. There is a need for development of an
allowed to effect the growth of mining activity for that appropriatestrategyfortheirindigenousproduction,based
mineral. Hence employment and tertiary sector spinoffs on the analysis of availability, identification, exploration
from both value addition as well as from mining will need and discovery of economically extractable deposits.
to be encouraged so as to maximize the contribution It is critical to develop processes for their recovery in
of the mineral sector to the country’s gross domestic usable forms in order to ensure long-term national raw
product. In particular emphasis needs to be given to co- materials security. In view of the increased demand of
production of by-product metals from base metal ores REE and near monopoly of supply from China, there is
through process R&D so that the country’s needs of a need to develop national policies and implementation
so-called Technology Metals and Energy Critical Metals strategies for ensuring indigenous supply of REE. ...We
are effectively met, and provide raw material security believe that REEs and ECEs are going to play a major
on the one hand and competitive edge on the other, for role in renewable energy applications and information
the country’s manufacturing sector. For the purpose, the technology products. If India is to be self-reliant in these
Non-Ferrous Technology Development Centre (NFTDC), products—which it must, if it is to minimize Green
Hyderabad and Jawaharlal Nehru Aluminum Research House Gas emissions-then it must adopt novel routes
Development and Design Centre (JNARDDC), Nagpur that do not emphasise only economic viability but also
will need to be suitably reoriented so as to focus more on self-reliance (Foreword). ... The recent imposition of
process R&D for Technology and Energy Critical Metals.” restrictions on export of rare earths by China has created
a scare in the developed countries to look for alternatives.
The Center for Study of Science, Technology and Along with REs, these countries have also focused their
Policy (CSTEP) in its publication Rare Earth Elements attention on other energy critical elements, particularly
and Energy Critical Elements: A Roadmap and Strategy in the context of clean energy technologies (Chapter 5:
for India July, 2012, jointly published with the Ministry The Way Forward).”
of Mines has stated as follows: “Rare Earth Elements
In sum, the concession grant system must
incentivize world-class exploration for the discovery,
and world-class mineral processing technologies
for the exploitation, of all those minerals which
are essential or likely to be essential for our food,
energy and national security. A short-term approach
which maximizes revenues based only on current
perceptions of our partly-developed mineral
industries may be detrimental to the long-term
national interest. Needless to say, national interest
also requires a systematic approach to acquiring
mineral assets in other geographies, particularly
for those strategic minerals where our geological
potential is low.
The National Mineral Policy 2008 rather prophetically
states in Para 11: “… The need for a well-planned
programme of survey and exploration, management of
JANUARY 2015 13
appropriate linkages between exploitation of minerals (REEs) and Energy Critical Elements (ECEs) are
and their end use including the development of industry extensively used in clean energy applications like wind
based on the minerals should be established wherever energy turbines, hybrid car batteries/electric motors, solar
feasible, a downward curve in an industrial sector using energy collectors, thin film technologies and in defense-
a particular mineral within the country need not be related systems. There is a need for development of an
allowed to effect the growth of mining activity for that appropriatestrategyfortheirindigenousproduction,based
mineral. Hence employment and tertiary sector spinoffs on the analysis of availability, identification, exploration
from both value addition as well as from mining will need and discovery of economically extractable deposits.
to be encouraged so as to maximize the contribution It is critical to develop processes for their recovery in
of the mineral sector to the country’s gross domestic usable forms in order to ensure long-term national raw
product. In particular emphasis needs to be given to co- materials security. In view of the increased demand of
production of by-product metals from base metal ores REE and near monopoly of supply from China, there is
through process R&D so that the country’s needs of a need to develop national policies and implementation
so-called Technology Metals and Energy Critical Metals strategies for ensuring indigenous supply of REE. ...We
are effectively met, and provide raw material security believe that REEs and ECEs are going to play a major
on the one hand and competitive edge on the other, for role in renewable energy applications and information
the country’s manufacturing sector. For the purpose, the technology products. If India is to be self-reliant in these
Non-Ferrous Technology Development Centre (NFTDC), products—which it must, if it is to minimize Green
Hyderabad and Jawaharlal Nehru Aluminum Research House Gas emissions-then it must adopt novel routes
Development and Design Centre (JNARDDC), Nagpur that do not emphasise only economic viability but also
will need to be suitably reoriented so as to focus more on self-reliance (Foreword). ... The recent imposition of
process R&D for Technology and Energy Critical Metals.” restrictions on export of rare earths by China has created
a scare in the developed countries to look for alternatives.
The Center for Study of Science, Technology and Along with REs, these countries have also focused their
Policy (CSTEP) in its publication Rare Earth Elements attention on other energy critical elements, particularly
and Energy Critical Elements: A Roadmap and Strategy in the context of clean energy technologies (Chapter 5:
for India July, 2012, jointly published with the Ministry The Way Forward).”
of Mines has stated as follows: “Rare Earth Elements
In sum, the concession grant system must
incentivize world-class exploration for the discovery,
and world-class mineral processing technologies
for the exploitation, of all those minerals which
are essential or likely to be essential for our food,
energy and national security. A short-term approach
which maximizes revenues based only on current
perceptions of our partly-developed mineral
industries may be detrimental to the long-term
national interest. Needless to say, national interest
also requires a systematic approach to acquiring
mineral assets in other geographies, particularly
for those strategic minerals where our geological
potential is low.
The National Mineral Policy 2008 rather prophetically
states in Para 11: “… The need for a well-planned
programme of survey and exploration, management of
JANUARY 2015 13