Introduction

The Union Cabinet's ₹7,280 crore rare-earth magnet scheme underscores the necessity of processing minerals rather than just mining them. The scheme aligns with the new G-20 framework on critical minerals, emphasizing the importance of refining and manufacturing to create value.

Current State of Mineral Processing in India

• India has amended the Mines and Minerals (Development and Regulation) Act to promote domestic mining but lacks large-scale processing capabilities.
• Key minerals like lithium, nickel, and cobalt are imported, highlighting the processing gap and its impact on supply chains.
• China dominates the global refining market, controlling over 90% of rare earth and graphite refining.

Challenges and Opportunities

• India's processing lags in scale and quality despite mining seven critical minerals.
• The strategic gap in processing extends beyond clean energy to sectors like semiconductors and pharmaceuticals.

Strategies to Enhance Processing Capacity

1. Innovation and Research

• Nine Centres of Excellence under the National Critical Mineral Mission should focus on applied research for high-purity materials.
• Collaboration between IITs, NITs, industry, and think tanks is essential to accelerate innovation from labs to markets.

2. Unlocking Secondary Resources

• India produces over 250 million tonnes of coal fly ash annually. Pilot projects show potential for recovering rare earths and other minerals.
• Embedding recovery units in Critical Minerals Processing Parks and incentivizing recovery efforts can scale operations.

3. Workforce Development

• Skilling programs should focus on hydrometallurgy and advanced refining techniques.
• Apprenticeships in prominent refineries can provide practical experience, creating jobs in mineral-rich states.

4. De-risking Investments

• Implementing demand assurance and financing tools to stabilize the market and encourage new entrants.
• Encouraging domestic sourcing of inputs for key sectors and maintaining high standards can attract private investment.

5. Mineral Diplomacy

• India's overseas acquisitions should focus on processing capabilities to leverage global partnerships.
• Including critical mineral supply chains in economic dialogues can enhance global collaboration.

Conclusion

Control over mineral processing equates to control over industrial power. India's strategic autonomy lies in mastering the processing stage to transform raw materials into high-value products, ensuring resilient industries and economic growth.