Mines Secretary Keshav Chandra has expressed serious concerns over delays in mineral production at the Federation of Indian Mineral Industries' (FIMI's) 60th annual general meeting on Tuesday in New Delhi. According to reports from Business Standard, Chandra revealed that some miners have received all necessary clearances and signed leases but have still not commenced operations. The secretary emphasized that the government is concerned about this practice and urged FIMI members to take it seriously, referring to the practice as 'squatting' and urging miners to start operations within given time frames as per the Act.
The mines ministry is implementing a comprehensive monitoring system to address these operational delays. As reported by Business Standard, the ministry is reviewing the progress of mine operationalisation on a monthly basis. Chandra explained that mining operations begin only after an arduous process involving various clearances, including forest and environmental clearances and state government approvals. The secretary noted that once the mining lease is signed, miners have a substantial time frame to begin operations, but some operations still do not start. The objective of mining reforms is to increase mineral production rather than promote speculation.
The operational delays are significantly affecting India's mineral wealth and production capabilities. According to Business Standard, Chandra stated that the production gets compromised due to these delays after clearances and lease signing. He emphasized that the practice is affecting India's mineral wealth, highlighting the urgent need for miners to start operations within the given time frames as per the Act. The government has declared four critical mineral parks in Gujarat, Maharashtra, Odisha and Andhra Pradesh and recently reviewed their progress, with Chandra noting that they have been able to identify sources, processing methods, and downstream industries within a short span of time.
Indian critical minerals producer Lohum is actively pursuing international acquisitions to dramatically expand its production capacity. As reported by Reuters, the company's founder and CEO Rajat Verma announced plans to acquire nickel mines in Indonesia and the Philippines as part of a strategy to increase nickel production capacity to 10,000 metric tons per year over the next 18 months. Currently producing only 1,000 tons of nickel annually through recycled materials processing at its Gujarat facility, Lohum is seeking to raise ₹10 billion ($105 million) in equity and ₹20 billion in debt over the next 12-18 months to fund its expansion plans. Verma noted that the increased capacity could be even greater if the company gains access to high-quality mining assets, stating that 'If we are able to get access to a good quality mine then we may set up a larger capacity.'
The government is preparing to announce a 'very substantial' scheme for lithium and nickel processing to address the gap in domestic processing capabilities. As reported by Business Standard, Chandra announced that the government would soon launch a substantial scheme for lithium and nickel processing to promote domestic processing of critical minerals. The Ministry of Mines already has a ₹1,500-crore incentive scheme for critical mineral recycling, but there is no similar incentive for processing freshly mined ore into value-added, battery-grade materials. The proposed scheme is expected to address this gap as demand rises from batteries, electric vehicles, energy storage and other industrial applications. Lohum is also expanding into lithium production, planning to invest $100 million in Zimbabwe where it has secured rights to 10 lithium mining blocks with estimated deposits of 30-40 million tons of ore.
