What Happened
- Union Minister of State Dr. Jitendra Singh announced that India is scaling up exploration of critical minerals, creating a startup-driven mining ecosystem, and building end-to-end domestic value chains to reduce import dependence.
- The announcement was made at the governing body meeting of the National Mineral Exploration and Development Trust (NMET).
- Ongoing exploration projects in the Siwana belt (Rajasthan) and Salal–Haimna block (Jammu & Kashmir) were highlighted, with calls to expand to additional potential zones.
- India's domestic production capacity for rare earth permanent magnets is targeted to reach 5,000 tonnes by 2030.
- Rare earth processing corridors have been announced in Tamil Nadu, Odisha, Andhra Pradesh, and Kerala to build the domestic ecosystem for value addition.
Static Topic Bridges
India's Critical Minerals List and Strategic Importance
The Ministry of Mines released India's first list of 30 critical minerals in June 2023 — minerals assessed as essential for economic development and national security, where supply concentration risks create vulnerability. The list includes lithium, cobalt, nickel, graphite, rare earth elements (REEs), titanium, vanadium, germanium, gallium, phosphorous, silicon, and others that underpin clean energy technology (EV batteries, wind turbines, solar panels) and defence electronics. India currently imports the vast majority of these minerals, with China dominating global processing capacity for REEs (~85% of global processing). The 2023 Mines and Minerals (Development and Regulation) Amendment Act designated 24 minerals as "critical and strategic," allowing the central government to directly auction these blocks rather than delegating to states.
- India's 30 critical minerals list: released June 2023 by Ministry of Mines.
- Key minerals: Lithium, Cobalt, Nickel, REEs, Graphite, Titanium, Vanadium, Gallium, Germanium.
- 2023 MMDR Amendment: 24 minerals classified as "critical and strategic" — central auction, not state allocation.
- China's dominance: ~85% of global rare earth processing; India seeks to break this dependence.
- India has significant deposits of REEs (monazite coastal sands), lithium (Jammu & Kashmir, Rajasthan, Karnataka), and titanium (ilmenite in coastal states).
Connection to this news: Dr. Jitendra Singh's emphasis on startup-driven exploration and domestic value chains is the operational follow-through of the 2023 policy framework — moving from listing critical minerals to actively building the exploration-to-processing-to-manufacturing supply chain.
National Mineral Exploration Trust (NMET) and Exploration Architecture
The National Mineral Exploration Trust (NMET) was established in 2015 under the MMDR Act to fund regional and detailed exploration activities in India. NMET is funded through a 2% contribution from the royalties and DMF (District Mineral Foundation) levies collected by state governments. NMET finances Geological Survey of India (GSI), Mineral Exploration Corporation Limited (MECL), and other central and state agencies for systematic exploration. India's exploration spending has historically been far below its peers — for a country with India's geological endowment, exploration remains underfunded relative to potential. The latest push includes inviting private sector and startups into exploration, which was earlier an exclusively government domain.
- NMET: established 2015, funded via 2% of mineral royalties and DMF contributions.
- Key exploration agencies: GSI (Geological Survey of India), MECL (Mineral Exploration Corporation Ltd), AMD (Atomic Minerals Directorate).
- India's mineral exploration spend as % of GDP: significantly below global leaders (Australia, Canada, South Africa).
- Private sector now permitted to explore critical minerals under 2023 MMDR Amendment.
- Siwana belt (Rajasthan) and Salal-Haimna (J&K): ongoing priority lithium/REE exploration zones.
Connection to this news: The governing body meeting of NMET signals heightened institutional attention to translating policy intent into funded exploration outcomes — with startups now being explicitly encouraged to participate alongside established PSUs.
India's Rare Earth and Domestic Value Chain Ambitions
India holds approximately 6% of global rare earth reserves — primarily in monazite beach sands along the east and west coasts (Kerala, Odisha, Andhra Pradesh, Tamil Nadu). However, India extracts and processes only a fraction of this endowment; the bulk of REE processing capacity is held by the state-owned Indian Rare Earths Limited (IREL). The government's new strategy envisages rare earth processing corridors in four coastal states and targeting 5,000 tonnes per year of rare earth permanent magnet production by 2030 — magnets being critical for EV motors, wind turbines, and defence systems. The SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Act, 2025, which opened the nuclear sector to private participation, also has implications for rare earth development, as thorium separation from monazite sands is linked to nuclear feedstock.
- India's REE reserves: ~6% of global total (primarily coastal monazite sands).
- Key REE-bearing states: Kerala, Odisha, Andhra Pradesh, Tamil Nadu.
- IREL (Indian Rare Earths Limited): primary state PSU for rare earth extraction and processing.
- Target: 5,000 tonnes/year rare earth permanent magnet production by 2030.
- Rare earth corridor states: Tamil Nadu, Odisha, Andhra Pradesh, Kerala.
- SHANTI Act 2025: allows private participation in nuclear sector, unlocking REE co-development alongside thorium extraction.
Connection to this news: Dr. Singh's announcement covers the full vertical — from upstream exploration (NMET, startups, new blocks) to downstream value addition (rare earth corridors, magnet manufacturing) — representing a shift from India being a raw material exporter to building an integrated critical minerals supply chain.
Key Facts & Data
- India's 30 critical minerals list: published June 2023, Ministry of Mines.
- Rare earth permanent magnet production target: 5,000 tonnes by 2030.
- Rare earth processing corridors announced: Tamil Nadu, Odisha, Andhra Pradesh, Kerala.
- NMET: established 2015 under MMDR Act, funded by 2% of royalties and DMF contributions.
- India's REE reserve share: ~6% of global total.
- China's share of global REE processing: ~85%.
- 2023 MMDR Amendment: 24 critical/strategic minerals placed under central auction authority.
- Active exploration zones: Siwana belt (Rajasthan), Salal–Haimna (J&K).