Securing India’s Strategic Future: Decoding Critical Minerals, Recycling & The Rights Debate (UPSC GS2 & GS3)

Context: The Union Cabinet recently approved the ₹1500 Crore Critical Mineral Recycling Incentive Scheme to boost domestic recovery of minerals like Lithium, Cobalt, and Nickel from e-waste. Simultaneously, the exemption of Uranium mining from mandatory public consultations in Meghalaya has triggered a constitutional debate regarding the Sixth Schedule and indigenous rights vs. National Security.

Basics: What are Critical Minerals?

Before diving into the news, it is essential to understand the core concept.

• Definition: Critical minerals are elements that are crucial for modern technologies, economies, and national security but face supply chain disruption risks.
• Why ‘Critical’?
  1. Economic Importance: Essential for key industries (Electronics, EVs, Renewable Energy).
  2. Supply Risk: High import dependence or geopolitical concentration (e.g., China controls ~60% of global rare earth processing).
• The List: In 2023, the Ministry of Mines identified 30 Critical Minerals for India, including Antimony, Beryllium, Cobalt, Copper, Gallium, Graphite, Lithium, Nickel, Rare Earth Elements (REEs), Titanium, Tungsten, etc.

Note: All Critical Minerals are not Strategic, but all Strategic Minerals are Critical.

Strategic Minerals: Specific subset required for atomic energy, defense, and space (e.g., Uranium, Titanium).

Deep Dive: The Critical Mineral Recycling Incentive Scheme

• This scheme is a component of the broader National Critical Minerals Mission.
• Objective: To create a “Circular Economy” by extracting value from “Urban Mines” (e-waste, used batteries) rather than relying solely on fresh mining or imports.
• Financial Outlay: ₹1,500 Crore.
• Key Targets:
  • Develop domestic recycling capacity (reducing reliance on China).
  • Process spent Lithium-ion batteries (LiBs) and electronic scrap.
• Implementation Mechanism:
  • Tiered Incentives: Divided into Group A (Large established recyclers) and Group B (Startups/MSMEs).
  • Capex & Opex Support: Grants for setting up machinery (Capital Expenditure) and production-linked incentives (Operational Expenditure) based on the quantity of minerals recovered.
• Significance: India generates huge e-waste but recycles <5% formally. This scheme aims to formalize the sector.

The Conflict: Uranium Mining vs. Indigenous Rights (Meghalaya)

While the recycling scheme is welcomed, the push for primary mining of strategic minerals has caused friction.

• The Issue: The Centre exempted exploration/mining of Atomic Minerals (like Uranium) from mandatory “Public Hearings/Consultations” under environmental laws.
• The Flashpoint: Domiasiat and Wahkaji (Meghalaya) hold India’s largest Uranium reserves.
• The Conflict:
  • Centre’s View: Uranium is vital for India’s 3-stage Nuclear Program and energy security. Public hearings delay strategic projects.
  • Local View: The Khasi Hills Autonomous District Council (KHADC) and student unions oppose this, citing health risks (radiation) and violation of the Sixth Schedule (which protects tribal land rights).
• Constitutional Tussle: Does the Centre’s power over “Regulation of mines” (Union List) override the Autonomy of Tribal Councils (Sixth Schedule)?

Legal & Institutional Framework

Instrument	Key Provision / Relevance
MMDR Amendment Act, 2023	Game Changer. It removed 6 minerals (Lithium, Beryllium, Titanium, Niobium, Tantalum, Zirconium) from the “Atomic” list, allowing private sector mining and auctioning.
Offshore Areas Mineral (D&R) Act, 2023	Regulates mining in maritime zones (EEZ/Continental Shelf), opening sea-bed mining for private players.
KABIL (Khanij Bidesh India Ltd)	A JV of three PSUs (NALCO, HCL, MECL) mandated to acquire strategic assets overseas (e.g., Lithium brine blocks in Argentina).
Minerals Security Partnership (MSP)	India joined this US-led alliance to secure supply chains against Chinese dominance.

Case Studies for Value Addition

Case Study 1: The Cautionary Tale of Jaduguda (Jharkhand)

• Context: India’s first uranium mine.
• Issue: Local communities have long alleged health issues (congenital deformities, cancer) due to radiation and tailing pond mismanagement.
• Lesson: This historical mistrust fuels the current resistance in Meghalaya. Development without trust is unsustainable.

Case Study 2: Urban Mining Success (Attero Recycling)

• Context: An Indian cleantech company.
• Achievement: Extracts 99% of Lithium, Cobalt, and Nickel from used batteries.
• Lesson: Shows that the ₹1500 cr scheme has viable technological backing; India can become a “Recycling Hub” for the Global South.

Issues & Challenges towards Stragetic Mineral Security

1. Extreme Import Dependence:
   • Lithium, Cobalt, Nickel: 100% Import dependence (mostly from China, Congo, Australia).
   • Copper: ~93% Import dependence.
2. Geopolitical Vulnerability: China controls the processing node. Even if we mine Lithium, we lack refining capacity.
3. Environmental Cost: Mining (especially open-cast) destroys biodiversity. Lithium extraction is water-intensive (harmful in water-stressed areas like Rajasthan/Karnataka).
4. Technological Gap: We lack “beneficiation” technology (separating ore from waste) for complex minerals like Rare Earths.
5. Federal Tensions: As seen in Meghalaya, bypassing local consent (Gram Sabhas) leads to project stalling and insurgency risks.

Way Forward & Recommendations

• “Urban Mining” as Policy: Enforce strict Extended Producer Responsibility (EPR) to ensure batteries return to recyclers, making the ₹1500cr scheme effective.
• Social License to Operate: For projects in Sixth Schedule areas, the government must adopt a Trust-First approach (transparent health audits, profit sharing) rather than a Force-First approach (bypassing hearings).
• Diversify Diplomacy: Leverage the Quad and Indo-Pacific Economic Framework (IPEF) to secure processing technologies, not just raw ore.
• Exploration Incentives: Fully utilize the new “Exploration License” regime to encourage private juniors to find deep-seated minerals.

Prelims: Key Facts (Don’t miss these)

• The “Critical” List: Know that Fertilizer minerals (Phosphorous, Potash) are also considered critical for India (food security), not just battery metals.
• KABIL: It is under the Ministry of Mines, not Ministry of External Affairs.
• Lithium Reserves in India: Preliminary findings in Reasi (J&K) and Mandya (Karnataka).
• Cobalt: Currently 0% domestic production.
• Global Leaders:
  • Lithium Producer: Australia (Production), Chile (Reserves).
  • Cobalt: DRC (Congo).
  • Nickel: Indonesia.
  • Processing: China dominates all.

UPSC Mains: Answer Writing Framework

Mock Mains Question: “Reducing import dependence on critical minerals is not just an economic imperative but a national security necessity. Discuss in light of the Critical Mineral Recycling Scheme and the challenges of domestic mining.” (15 Marks)