Policy for Critical Minerals in India

We will be using 5 stage Model which is a watch glass for policy formation, it involves 5 stages :

 Agenda Setting
 Policy Formulation
 Decision Making
 Policy Implementation
 Policy Evaluation

We will generally follow those stages in developing India's public policy for critical minerals.

Before setting the Agenda let’s look at some data sets that can be helpful in the formulation of Critical
mineral policy.

World Reserves and Production of Selected Critical Minerals (2019)

Mineral Reserves (million Production (thousand tonnes)
tonnes)
Antimony 170 70
Beryllium 330 280
Cobalt 7.1 140
Gallium N/A 320
Germaniu 8.8 160
m
Graphite 690 1,200
Indium N/A 720
Lithium 79 77
Manganese 770 18,000
Niobium 96 70
PGMs 81 260
Rare Earths 130 210
Scandium N/A 10
Tantalum 100 330
Titanium 600 180
Tungsten 3.5 82
Vanadium 56 80
Zinc 230 13,000

1. Agenda Setting:
Critical minerals are minerals that are essential for the development and growth of industries
that are critical to the economic, technological, and strategic interests of a country. These
 minerals are essential components of modern technologies such as smartphones, electric
vehicles, renewable energy, and defense equipment.
India is the third-largest consumer of critical minerals in the world, and its demand for these
minerals is expected to increase with the growth of its economy and the promotion of
sustainable development. However, India is heavily dependent on imports to meet its critical
mineral requirements, which poses a significant risk to its economic and strategic interests.
Thus, it is essential for India to frame a critical mineral policy to ensure a reliable and sustainable
supply of these minerals. The policy should focus on the following aspects:
i. Exploration and Mining: India should promote exploration and mining of critical
minerals within its territory to reduce its dependence on imports. The policy should aim
to encourage private sector participation in the exploration and mining of these
minerals.
ii. Recycling and Reuse: The policy should encourage the development of technologies for
the recycling and reuse of critical minerals. Recycling and reuse can help reduce the
demand for these minerals and also minimize the environmental impact of their
extraction and production.
iii. Strategic Reserves: India should create strategic reserves of critical minerals to ensure a
steady supply during times of crisis or disruption in the global supply chain.
iv. Research and Development: The policy should focus on promoting research and
development in the field of critical minerals. This can help develop new technologies and
processes for the extraction, processing, and use of these minerals.
v. International Cooperation: India should collaborate with other countries and
international organizations to secure a reliable and sustainable supply of critical
minerals. This can involve joint exploration and mining projects, sharing of technologies
and expertise, and participation in international forums on critical minerals.

Critical Mineral Availability in India Geography

Antimony Reserves Andhra Pradesh, Madhya Pradesh, and Rajasthan
Beryllium Reserves and resources Rajasthan and Jharkhand
Cobalt Resources Madhya Pradesh, Orissa, and Jharkhand
Gallium Resources Tamil Nadu, Maharashtra, and Karnataka
Germanium Resources Rajasthan, Andhra Pradesh, and Kerala
Graphite Reserves and resources Jharkhand, Arunachal Pradesh, and Tamil Nadu
Indium Resources Tamil Nadu and Kerala
Lithium Resources Karnataka and Rajasthan
Manganese Reserves and resources Madhya Pradesh, Maharashtra, Orissa, and Karnataka
Niobium Resources Jharkhand and Chhattisgarh
Platinum Group Metals
(PGMs) Resources Madhya Pradesh and Orissa
Rare Earth Elements (REEs) Resources Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Jhar
Scandium Resources Kerala and Tamil Nadu
Tantalum Resources Orissa and Jharkhand
Titanium Reserves and resources Kerala, Tamil Nadu, and Orissa
Tungsten Reserves and resources Rajasthan and Chhattisgarh
Vanadium Resources Andhra Pradesh, Kerala, Tamil Nadu, and Rajasthan
Zinc Reserves and resources Rajasthan, Andhra Pradesh, Gujarat, and Madhya Prade
Critical Mineral and its Availability in INDIA

Framing a critical mineral policy is essential for India's economic, technological, and strategic
interests. The policy should focus on promoting domestic exploration and mining, recycling
and reuse, strategic reserves, research and development, and international cooperation. A
holistic approach to critical minerals policy can help ensure a sustainable and secure supply of
these minerals for India's development needs.

2. Policy Formulation:
Based on the agenda mentioned above, here is a proposed policy framework for India on critical
minerals:

i. Exploration and Mining

a. Creation of National Critical Minerals Inventory: A comprehensive inventory of critical
minerals resources in India will be created through a multi-stakeholder effort involving geological
survey agencies, academia, and the private sector.
b. Encouragement for Private Sector Participation: The government will offer incentives to
private sector players to participate in the exploration and mining of critical minerals. This will
include tax breaks, concessional finance, and streamlined regulatory procedures.
c. Mapping of Geographical Areas for Exploration: Based on the critical minerals inventory, the
government will map out potential areas for exploration and invite private sector participation in
exploration.

ii. Recycling and Reuse

a. Creation of a National Recycling Program: The government will establish a national recycling
program for critical minerals, which will involve collection, segregation, and recycling of waste
electronic and electrical equipment.
b. Incentives for Recycling: The government will offer incentives for companies to invest in
critical minerals recycling, such as tax credits, subsidies, and grants.
c. Creation of a Certification Program: A certification program will be created to recognize
companies that recycle critical minerals in an environmentally responsible manner.

iii. Strategic Reserves

a. Creation of National Strategic Reserve: The government will create a strategic reserve of
critical minerals to ensure a steady supply during times of crisis or disruption in the global supply
chain.
b. Incentives for Private Sector Participation: Private sector players will be incentivized to invest
in the creation and maintenance of strategic reserves.
c. Creation of a Contingency Plan: A contingency plan will be created to manage the release of
critical minerals from the strategic reserve in times of crisis or disruption.

iv. Research and Development

a. Establishment of a National Research and Development Program: The government will
establish a national research and development program to encourage research and innovation in
the field of critical minerals.
b. Creation of Centres of Excellence: Centres of excellence will be created in collaboration with
academia, research institutions, and the private sector to promote research and development in
critical minerals.
c. Promotion of Technology Transfer: Technology transfer will be encouraged through
collaboration between the public and private sectors to commercialize research outcomes.

v. International Cooperation
a. Participation in International Forums: India will actively participate in international forums on
critical minerals to gain knowledge, share best practices, and build strategic partnerships.
b. Bilateral Agreements with Other Countries: Bilateral agreements will be signed with other
countries for joint exploration and mining projects, sharing of technologies and expertise, and
supply chain diversification.
c. Formation of International Alliances: India will form international alliances with other
countries to secure a reliable and sustainable supply of critical minerals.

Overall, the above policy framework aims to promote a reliable and sustainable supply of critical
minerals for India's economic, technological, and strategic interests. The policy framework
emphasizes the importance of domestic exploration and mining, recycling and reuse, strategic
reserves, research and development, and international cooperation. The successful
implementation of this policy framework will not only reduce India's dependence on imports but
also promote sustainable development.

When framing a policy on critical minerals, there are several policy approaches that India can
consider from other nations. Some examples include:

i. United States: The United States has implemented the "Energy Resource Governance
Initiative" (ERGI) that aims to promote secure and sustainable supply chains for critical
minerals. The initiative focuses on building partnerships with other countries to develop
critical minerals in a responsible manner, promoting investment in the sector, and
reducing the reliance on a single source of critical minerals. India can consider
 partnering with the US under this initiative and adopting similar approaches to promote
the development of critical minerals in a sustainable manner.

ii. European Union: The European Union has implemented the "Raw Materials Initiative"
that aims to secure access to raw materials, including critical minerals, while promoting
sustainable and responsible mining practices. The initiative includes measures such as
developing a European Raw Materials Knowledge Base, promoting resource efficiency
and recycling, and supporting the development of mining projects with high
environmental and social standards. India can consider adopting similar measures to
promote the sustainable development of the critical minerals sector.

iii. Japan: Japan has implemented the "Strategy for Ensuring Stable Supply of Critical
Metals" that aims to promote the development of domestic resources and reduce the
reliance on imports of critical minerals. The strategy includes measures such as
developing recycling technologies, promoting exploration and development of domestic
resources, and diversifying sources of imports. India can consider adopting similar
measures to promote the development of domestic resources and reduce the reliance
on imports of critical minerals.

iv. Australia: Australia has implemented the "Critical Minerals Strategy" that aims to
support the development of a sustainable and competitive critical minerals sector. The
strategy includes measures such as promoting investment in exploration and mining,
supporting research and development of new technologies, and improving regulatory
frameworks to promote responsible mining practices. India can consider adopting similar
measures to support the development of a sustainable and competitive critical minerals
sector.

There are several policy approaches that India can consider from other nations when framing a
policy on critical minerals. By adopting best practices and lessons learned from other countries,
India can develop a policy that promotes the sustainable and responsible development of the
critical minerals sector while reducing the reliance on imports and enhancing economic
competitiveness.

3. Decision Making:

The decision-making process for the above policy framework would involve a collaborative effort
involving all stakeholders, including government agencies, private sector players, academia, and
civil society organizations. The following steps could be taken to involve all stakeholders in the
decision-making process:

i. Consultation and Engagement: The government should engage with stakeholders to

understand their perspectives on critical minerals policy, their needs, and their concerns.
This could involve holding public consultations, workshops, and roundtable discussions
with representatives from different stakeholder groups.

ii. Formation of Working Groups: Working groups can be formed to bring together
stakeholders with expertise in different aspects of critical minerals policy, such as
exploration and mining, recycling and reuse, strategic reserves, research and
development, and international cooperation.

iii. Stakeholder Feedback and Recommendations: Working groups can provide

recommendations based on stakeholder feedback and research on different aspects of
critical minerals policy.

iv. Policy Formulation and Implementation: The government can use the
recommendations provided by the working groups to formulate policy and implement it
in collaboration with stakeholders.

Challenges involved in involving all stakeholders in the decision-making process could include:

a. Lack of Coordination: Stakeholders may have different goals and priorities, which could
make coordination difficult. It will be important to ensure that there is effective
communication and coordination between stakeholders to avoid conflicts and ensure a
shared vision for critical minerals policy.

b. Capacity Building: Some stakeholders, such as small and medium enterprises and civil
society organizations, may lack the capacity and expertise to participate effectively in the
decision-making process. It will be important to provide them with the necessary
support and capacity building to ensure their participation.

c. Conflict of Interests: Stakeholders may have conflicting interests, especially in areas such
as exploration and mining, where there may be competition for resources. It will be
important to address these conflicts of interest through transparency and effective
conflict resolution mechanisms.

d. Regulatory Environment: The regulatory environment for critical minerals policy in India
is complex and may require coordination between multiple government agencies. It will
be important to ensure that the regulatory environment is conducive to stakeholder
participation and does not create unnecessary barriers.
 e. International collaboration: India should collaborate with international
organizations and other countries to share information and best practices on the
sustainable management of critical minerals. The government can work with
international partners to develop new technologies and explore new sources of
critical minerals.

World Production of Selected Critical Minerals by Country (2019)

 Mineral Top Producing Countries
Antimony China, Tajikistan, Russia
Beryllium United States, Mozambique, Brazil
Cobalt Congo (Kinshasa), Russia, Australia
Gallium China, Kazakhstan, Germany
Germanium China, Russia, United States
Graphite China, Brazil, Mozambique
Indium China, South Korea, Japan
Lithium Chile, Australia, Argentina
Manganese China, Australia, South Africa
Niobium Brazil, Canada, Nigeria
PGMs South Africa, Russia, Zimbabwe
Rare Earths China, United States, Myanmar
Scandium China, Russia, Kazakhstan
Tantalum Congo (Kinshasa), Rwanda, Nigeria
Titanium China, Australia, South Africa
Tungsten China, Vietnam, Russia
Vanadium China, South Africa, Russia
Zinc China, Peru, Australia

Involving all stakeholders in the decision-making process for critical minerals policy is essential to
ensure a shared vision and successful implementation. However, there are challenges involved in
stakeholder engagement, including lack of coordination, capacity building, conflicts of interest,
and regulatory environment. These challenges can be addressed through effective
communication, capacity building, conflict resolution mechanisms, and regulatory reform.

4. Policy Implementation:
Here are some measures to be taken in order to execute India's policy framework for key
minerals:

i. Establish Implementation Framework: The government should establish an

implementation framework consisting of a project management team, steering
committee, and working groups to oversee the implementation of the policy framework.
The framework should also include timelines, deliverables, and performance indicators.

ii. Establish Regulatory Mechanisms: The government should establish regulatory

mechanisms to oversee the exploration and mining of critical minerals, as well as the
recycling and reuse of waste electronic and electrical equipment. These mechanisms
 should include licensing and permitting processes, environmental and social impact
assessments, and monitoring and reporting requirements.

iii. Establish Incentive Mechanisms: The government should establish incentive

mechanisms to encourage private sector investment in the exploration, mining, and
recycling of critical minerals. These mechanisms could include tax incentives, grants,
low-cost financing, and streamlined regulatory processes.

iv. Establish Strategic Reserves: The government should establish strategic reserves of
critical minerals to ensure a steady supply during times of crisis or disruption in the
global supply chain. The reserves should be managed by a dedicated agency and should
be regularly reviewed and updated based on changing market conditions.

v. Promote Research and Development: The government should promote research and
development in critical minerals through the establishment of research centers and
funding for collaborative research projects with academia and the private sector. The
government should also encourage the commercialization of research outcomes through
technology transfer and incubation programs.

vi. Promote International Cooperation: The government should promote international

cooperation on critical minerals through participation in international forums and the
signing of bilateral agreements with other countries. The government should also
establish partnerships with international organizations to share best practices and
promote sustainable development.

vii. Capacity Building: The government should provide capacity building support to
stakeholders, including small and medium-sized enterprises, civil society organizations,
and local communities, to ensure their effective participation in the implementation of
the policy framework.

viii. Monitoring and Evaluation: The government should establish a monitoring and
evaluation framework to track the progress of the policy framework's implementation
and to identify areas for improvement. This framework should include performance
indicators, reporting mechanisms, and regular reviews of the policy framework.

The implementation of the policy framework for critical minerals in India will require a
comprehensive approach that involves the establishment of regulatory and incentive
mechanisms, the creation of strategic reserves, the promotion of research and development, the
promotion of international cooperation, capacity building, and monitoring and evaluation. The
successful implementation of the policy framework will require effective coordination and
collaboration between stakeholders and the government.
Here are some assumptions that should be kept in mind while implementing the policy
framework for critical minerals in India:

i. Availability of Funds: The successful implementation of the policy framework will

require a significant amount of investment from the government and private sector. The
assumption is that sufficient funds will be available for the implementation of the policy
framework.

ii. Political Will: The implementation of the policy framework will require the sustained
support and commitment of the government at all levels. The assumption is that there
will be a high level of political will to implement the policy framework.

iii. Stakeholder Participation: The successful implementation of the policy framework will
require active participation from stakeholders, including government agencies, private
sector players, academia, and civil society organizations. The assumption is that
stakeholders will be willing to participate in the implementation of the policy
framework.

iv. Availability of Skilled Workforce: The successful implementation of the policy

framework will require a skilled workforce with expertise in areas such as exploration
and mining, recycling and reuse, and research and development. The assumption is that
there will be a sufficient pool of skilled workers available for the implementation of the
policy framework.

v. Access to Technology: The successful implementation of the policy framework will

require access to advanced technology and equipment for the exploration, mining, and
recycling of critical minerals. The assumption is that there will be access to the necessary
technology and equipment for the implementation of the policy framework.

vi. Favorable Market Conditions: The successful implementation of the policy framework
will require favorable market conditions, including stable demand and prices for critical
minerals. The assumption is that market conditions will remain favorable for the
implementation of the policy framework.

vii. Supportive Regulatory Environment: The successful implementation of the policy

framework will require a supportive regulatory environment that enables and
encourages private sector investment in the exploration, mining, and recycling of critical
minerals. The assumption is that the regulatory environment will be conducive to the
implementation of the policy framework.

It is important to keep in mind these assumptions while implementing the policy framework for
critical minerals in India. Regular monitoring and evaluation of the implementation of the policy
 framework will help to identify any challenges or issues that arise, and appropriate measures can
be taken to address them.

5. Policy Evaluation:
Here are some evaluation criteria that can be used to assess the effectiveness of the policy
framework for critical minerals in India:

i. Availability and Accessibility of Critical Minerals: The availability and accessibility of

critical minerals should increase over time as a result of the policy framework. This can
be measured by tracking the production of critical minerals, the level of imports, and the
prices of critical minerals.

ii. Reduction in Environmental and Social Impacts: The policy framework should aim to
minimize the environmental and social impacts of critical minerals exploration, mining,
and recycling. This can be measured by monitoring compliance with environmental and
social impact assessments, the level of environmental remediation and restoration, and
the level of community engagement and participation.

iii. Increase in Investment in Critical Minerals: The policy framework should encourage
private sector investment in the exploration, mining, and recycling of critical minerals.
This can be measured by tracking the level of investment in critical minerals projects, the
number of companies engaged in critical minerals activities, and the level of innovation
and technological advancement in critical minerals activities.

iv. Promotion of Sustainable Development: The policy framework should promote

sustainable development in the critical minerals sector, including the protection of
biodiversity, the promotion of local economic development, and the development of
green technologies. This can be measured by tracking the level of adoption of
sustainable practices and technologies, the level of economic diversification, and the
level of job creation in the critical minerals sector.

v. Promotion of International Cooperation: The policy framework should promote

international cooperation on critical minerals to ensure the stability of the global supply
chain. This can be measured by tracking the level of participation in international forums
and the number of bilateral agreements signed with other countries.

vi. Effective Monitoring and Evaluation: The policy framework should have an effective
monitoring and evaluation system in place to track progress and identify areas for
improvement. This can be measured by tracking the level of compliance with reporting
requirements, the level of stakeholder engagement in the monitoring and evaluation
process, and the level of responsiveness to identified issues.
 Overall, these evaluation criteria will help to assess the effectiveness of the policy framework in
addressing the challenges related to critical minerals in India. Regular monitoring and evaluation
of the implementation of the policy framework will be necessary to ensure that the desired
outcomes are being achieved, and appropriate measures can be taken to address any challenges
that arise.

We have categorized the Policy evaluation into 3 stages: Output, Outcome and Impact.

i. Outputs: Outputs are the tangible products and services that are produced as a result of the
policy. The outputs of the policy framework for critical minerals in India could include:
 Increased production of critical minerals
 Adoption of sustainable practices and technologies in critical minerals activities
 Increased investment in critical minerals projects
 Development of local skills and knowledge in critical minerals activities
 Implementation of effective monitoring and evaluation systems

ii. Outcomes: Outcomes are the changes or benefits that occur as a result of the outputs produced
by the policy. The outcomes of the policy framework for critical minerals in India could include:
 Reduced dependence on imports of critical minerals
 Increased economic diversification and job creation in the critical minerals sector
 Reduction in environmental and social impacts of critical minerals activities
 Promotion of sustainable development in the critical minerals sector
 Improved international cooperation on critical minerals

iii. Impact: Impact is the overall effect of the policy on the economy, society, and the environment.
The impact of the policy framework for critical minerals in India could include:
 Increased availability of critical minerals for domestic industries, leading to improved
economic competitiveness and reduced reliance on imports
 Development of a sustainable and resilient critical minerals sector that contributes to
national and local economic development and job creation
 Reduction in the negative environmental and social impacts of critical minerals activities,
leading to improved environmental health and social well-being
 Promotion of sustainable and responsible mining practices that contribute to global
efforts to address climate change and achieve sustainable development goals.

Overall, the above policy framework for critical minerals in India has the potential to produce
significant outputs, outcomes, and impact, contributing to the sustainable and responsible
development of the critical minerals sector in India. Regular monitoring and evaluation will be
necessary to ensure that the desired outcomes and impact are being achieved, and appropriate
measures can be taken to address any challenges that arise.
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