Indian companies will increase the purchase of critical mineral mines abroad, China's dominance will be challenged

The government cleared the National Critical Minerals Mission (NCCM) worth Rs 16,300 crore in view of technology-intensive industries' requirements for critical minerals (precious metal) for use in industries including solar panels, electric cars, semiconductors, computers, etc. In its budget in July 2024, its establishment was announced in its general budget.

The resolution to form the mission, through which India can make a considerable contribution towards becoming a developed nation, was adopted in the Union Cabinet session under PM Modi. Under such a mission, financial and other forms of aid will be granted to governments and private sectors of India for buying or taking over metal-abundant countries' mines of valuable metal. Presently, China is in a position of leadership in taking over metal-abundant countries' mines in the entire world. India is developing relations with many countries including America, and Australia in such a regard.

Giving information about the cabinet decision, Union Information and Broadcasting Minister Ashwini Vaishnav said that the period of NCCM will be from the year 2025 to the year 2031. It will be implemented by the Ministry of Mines. The budgetary contribution of Rs 16,300 crore will be Rs 2600 crore while the remaining amount will be made by public sector companies. Apart from this, an additional investment of Rs 18,000 crore is expected from government companies in the critical minerals sector.

The mission will not only buy mines and minerals but will also work to prepare the required trained labor in the country for this, and create a financial ecosystem. It will also work to assess how many minerals are needed in the country and how much the demand will increase and advise on the steps to be taken to meet it.

It should be noted that the central government has already declared 24 types of minerals as critical minerals. These include minerals like graphite, lithium, nickel, niobium, gallium, cobalt, cadmium. Some of these minerals have deposits in India while many are found only abroad. China has been acquiring such mineral deposits from countries from Africa to South American continents for many years.

It should also be noted that work is already underway on 1200 mining projects with the help of the Government of India. The search for critical mines has been accelerated domestically and a target has been set to auction 100 mineral deposits by the year 2030-31. Recently, some very encouraging reports have also come in the Ladakh region.