Centre plans speeding up MMDR amendments to boost critical mineral availability

India is expediting steps to boost domestic availability of critical minerals. Changes to the Mines and Minerals (Development and Regulation) Act are being fast-tracked. The move comes close on the heels of China putting curbs on supplies of permanent magnets derived out of rare earth elements (REEs). Besides regulatory tweaks, the centre is also expecting commercially viable domestic production of rare earth permanent magnets in small quantities later this year.

Addressing a gathering of industry professionals and academicians during the critical minerals processing seminar, Union Mines Minister G Kishan Reddy said, “The demand for critical minerals will increase four to six times by 2040. Global supply chains are concentrated in a few countries.”

Referring to the ongoing concerns regarding supplies of Rare Earth magnets from China, Reddy said, “Geopolitical tensions, trade restrictions, and increasing trend of resource nationalism can cause supply chain disruptions. India is currently almost 100% import dependent for critical minerals. We see this as a major challenge.”


The Minister said India recognises the pivotal role of these minerals in driving economic growth.

Commenting on the way ahead, Mines Secretary, V L Kantha Rao said tweaks are underway to support domestic critical mineral ecosystems. “We are planning to amend the (MMDR) act to support the critical mineral mission,” he said.

Rao also said Indian research institutions have found solutions for producing rare earth magnets. “This has enabled one of the companies in India to produce rare earth magnets in the next three-four months,” he said.

The secretary was referring to government sanctioned funding for Midwest Advanced Materials Private Limited (MAM), Hyderabad. The Nonferrous Materials Technology Development Centre (NFTDC), a research and development (R&D) institution under the Mines Ministry, has also transferred advanced technology to MAM. These supports have paved the way for commercial production of Neodymium (NdFeB) materials and Rare Earth Permanent Magnets.

Neodymium permanent magnets are vital for propulsion systems in electric vehicles and generators in renewable energy infrastructure.