India has announced the elimination of Customs duty on waste and scrap of twelve critical minerals, along with the development of a comprehensive tailings policy aimed at recovering these strategically important minerals from mining byproducts. Finance Minister Nirmala Sitharaman made this announcement during the Budget presentation, marking the second consecutive year where critical mineral security measures were highlighted in the Budget.
The Customs duty exemptions include waste and scrap of antimony, cobalt, tungsten, copper, lithium-ion battery, lead, zinc, and cobalt powder. The list of critical minerals also includes antimony, beryllium, bismuth, cadmium, molybdenum, rhenium, tantalum, tin, tungsten, and zirconium. The aim is to secure the availability of these minerals for manufacturing in India.
Additionally, the Budget proposes mining sector reforms, including the encouragement of best practices and the establishment of a State Mining Index for minor minerals. The MD and CEO of Hindustan Zinc, Arun Misra, sees these reforms positioning India as a key player in the critical minerals sector.
Prior to the Budget, the Cabinet approved the National Critical Minerals Mission, with a funding of ₹16,300 crore and an additional ₹18,000 crore to be raised from PSUs. The mission aims to secure supplies of critical minerals through domestic sources, overseas acquisitions, and the establishment of processing capacities.
Furthermore, the Budget document mentions the upcoming policy for the recovery of critical minerals from tailings. This policy will focus on recovering valuable minerals from mining waste, enhancing domestic availability for strategic industries such as clean energy, semiconductors, defense, and space.
The development of a tailings policy is crucial in managing and disposing of mining waste, but recent technologies have enabled the recovery of critical minerals from tailings. This policy will strengthen India’s self-reliance in critical mineral supply chains.
In conclusion, the focus on mining sector reforms and policies for the recovery of critical minerals from tailings in the Budget represents a positive step forward. The MD of Jindal Stainless Ltd, Abhyuday Jindal, believes that these initiatives will enhance India’s competitiveness and self-reliance in the critical minerals sector.
