India may open thorium sector to private firms to boost nuclear energy ambitions

New Delhi: India is considering opening parts of its tightly controlled thorium sector to private companies in a bid to strengthen critical mineral supply chains and support its long-term nuclear energy ambitions, people familiar with the matter said.

Among the options under consideration are partially opening commercial mining of coastal monazite sands to companies for thorium extraction, stepping up research and development to accelerate its conversion into uranium-233, and reducing the time from exploration to extraction to ensure a steady supply.

Internal deliberations have begun on policy interventions to boost thorium production, given India’s vast thorium reserves and limited uranium resources, people aware of the development told ET. A draft policy will be prepared after consultations with stakeholders, including the ministries of power and mines. “There is significant room for improvement in existing policies,” one of the people said.

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Coastal monazite sand mining restricted

“We are looking at measures that can give a push to thorium-based energy generation,” the person cited earlier said.

India holds about 25% of the world’s thorium reserves, with around 13 million tonnes of monazite sand found along the coasts of Kerala, Tamil Nadu, Andhra Pradesh and Odisha.

Commercial mining of coastal monazite sands is currently tightly restricted because the mineral contains thorium and uranium, which are classified as prescribed substances for national security reasons.

The government is of the view that integrating thorium recovery from coastal monazite sands with rare earth element extraction could significantly reduce costs and boost domestic production of nuclear fuel.

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The FY27 Budget provided for setting up dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, research and manufacturing of rare earth elements to meet rising demand for permanent magnets used in electric vehicle motors, wind turbines, consumer and industrial electronics, aerospace systems, defence equipment and precision sensors.

Indian Rare Earths, a public sector undertaking under the Department of Atomic Energy, is currently the only entity authorised to extract and process monazite in India.

Although thorium itself is not fissile, it can be converted into uranium-233 in a reactor, helping India achieve greater energy security and build a self-sustaining nuclear power programme.

Thorium is also considered safer than uranium, has better thermal conductivity and generates significantly less long-lived radioactive waste than conventional uranium fuel.