Govt to launch scheme to boost lithium, nickel processing: Mines Secretary Keshav Chandra

New business data points to the fact that The government will soon launch a “very substantial” scheme to promote domestic processing of lithium and nickel, Keshav Chandra, Secretary, Ministry of Mines, stated on Tuesday, as India seeks to build capacity for critical mineral processing and strengthen the downstream segment of the value chain.

Speaking at the annual general meeting of the Federation of Indian Mineral Industries (FIMI), Chandra stated the government has announced four critical mineral parks in Gujarat, Maharashtra, Odisha and Andhra Pradesh and recently reviewed their progress.

“Within a short span of time, they have been able to identify what are the sources, in what manner they will be processed and what are the downstream industries. Very soon, we will be rolling out our scheme for lithium and nickel processing. It will be a substantial scheme,” he stated.

Moneycontrol was the first to report on September 11 that the government had identified specific mineral ecosystems for the four parks, with Gujarat focused on rare-earth permanent magnets, Maharashtra on lithium, Odisha on nickel, and Andhra Pradesh on rare earth elements, titanium and zirconium.

The Ministry of Mines already has a Rs 1,500-crore incentive scheme for critical mineral recycling. That stated, there is no similar incentive for processing freshly mined ore into value-further noted, battery-grade materials. The proposed scheme is anticipated to address this gap, Chandra told reporters on the sidelines of the event.

The government is looking to develop domestic capabilities to process critical minerals as demand rises from batteries, electric vehicles, energy storage and other industrial applications.

Advanced technology not easily available despite MoUs

Chandra stated countries that have signed MoUs with India do not readily share technology and, in some cases, the technology offered is at an inferior stage of development.

He stated some technologies can be purchased from the market, but at a very high cost. Chandra stressed the need for stronger academia-industry partnerships and stated the ministry was focused on developing technologies indigenously through centres of excellence.

Govt flags delays in operationalising auctioned mining blocks

Chandra additionally flagged delays in operationalising auctioned mining blocks, saying some blocks had received clearances and had leases signed but had still not commenced operations.

He referred to the practice as “squatting” and stated the government was concerned around it. The ministry is reviewing the progress of operationalisation on a monthly basis, he stated, adding that the objective of mining reforms was to gain mineral production rather than promote speculation.

India exports minerals that it later imports in processed form

Chandra additionally flagged the export of minerals without beneficiation, saying several countries, including those in Africa, do not permit mineral exports without processing.

“Somehow in our country, some of the minerals are still getting exported,” he stated, adding that in some cases India exports minerals and then imports them after processing. He stated the government had reviewed individual minerals and found that a significant portion of what India exports is subsequently imported.

Chandra additionally flagged the export of black mass from recycling. He stated black mass has been banned from export by Japan, China and the US, but is still being exported from India.

India has sufficient feedstock and has already listed recycling facilities, he stated, adding that the country needs to develop domestic processing capacity.