New Delhi, Icra on Wednesday said profits from 38 critical minera blocks put up for sale are unlikely to be realized in the current decade ending 2030 as the mines have not been fully explored.
“The early stage of exploration for most of the domestic blocks currently being auctioned suggests that their commercialization and attendant benefits are unlikely to be fully realized in the current decade ending 2030, therefore, India's downstream manufacturing The facilities are likely to be exposed to potential future supply shocks in the intervening years, Icra said in a statement.
The government is auctioning two lithium blocks in the ongoing auction. There are reserves of clay in Jammu and Kashmir.While the technology to extract lithium from hard rock and brine deposits has matured, the technology to extract lithium from soil deposits remains untested globally. Given these challenges, J&K Lithium block received less than three bids, resulting in re-auction of the block, said Girishkumar Kadam, senior vice president and group head, Corporate Sector Ratings, ICRA.
On the other hand, the lithium block that is being auctioned in Katghora, Chhattisgarh is a hard rock deposit. The ore here belongs to a broad class of lithium-bearing minerals called lepidolite. China is a large producer of lithium from lepidolite ores.Therefore, competition to acquire the Katghora mine is likely to be much higher than for the Jammu and Kashmir block.
However, given the low grade of discovered domestic ores, advancement in mineral beneficiation/processing technology remains important for commercialization of domestic critical mineral resources, Kadam said.
Apart from developing domestic significant mineral resources, the government is also considering acquiring overseas assets from key resource rich regions such as South America, Australia and Africa as an alternative measure to ensure mineral security.
Mineral Videsh India Limited, a joint venture between public sector enterprise Nalco Hindustan Copper and Mineral Exploration Company, has recently become the first domestic company to acquire overseas lithium brine assets in Argentina.
The country's lack of reserves of critical minerals required for Greece's transition has led to 100 percent import dependence for minerals such as lithium, cobalt and nickel.Therefore, the Center has recently initiated the process of auctioning 38 blocks of critical minerals.
Furthermore, as the risk profile of exploration activities for deep, critical minerals is significantly higher than for surface or bulk minerals, the Ministry of Mines has introduced 'Exploration License' to enable a more attractive risk-return framework to bring in specialized offshore mining. ' Started auction.Companies.
“The early stage of exploration for most of the domestic blocks currently being auctioned suggests that their commercialization and attendant benefits are unlikely to be fully realized in the current decade ending 2030, therefore, India's downstream manufacturing The facilities are likely to be exposed to potential future supply shocks in the intervening years, Icra said in a statement.
The government is auctioning two lithium blocks in the ongoing auction. There are reserves of clay in Jammu and Kashmir.While the technology to extract lithium from hard rock and brine deposits has matured, the technology to extract lithium from soil deposits remains untested globally. Given these challenges, J&K Lithium block received less than three bids, resulting in re-auction of the block, said Girishkumar Kadam, senior vice president and group head, Corporate Sector Ratings, ICRA.
On the other hand, the lithium block that is being auctioned in Katghora, Chhattisgarh is a hard rock deposit. The ore here belongs to a broad class of lithium-bearing minerals called lepidolite. China is a large producer of lithium from lepidolite ores.Therefore, competition to acquire the Katghora mine is likely to be much higher than for the Jammu and Kashmir block.
However, given the low grade of discovered domestic ores, advancement in mineral beneficiation/processing technology remains important for commercialization of domestic critical mineral resources, Kadam said.
Apart from developing domestic significant mineral resources, the government is also considering acquiring overseas assets from key resource rich regions such as South America, Australia and Africa as an alternative measure to ensure mineral security.
Mineral Videsh India Limited, a joint venture between public sector enterprise Nalco Hindustan Copper and Mineral Exploration Company, has recently become the first domestic company to acquire overseas lithium brine assets in Argentina.
The country's lack of reserves of critical minerals required for Greece's transition has led to 100 percent import dependence for minerals such as lithium, cobalt and nickel.Therefore, the Center has recently initiated the process of auctioning 38 blocks of critical minerals.
Furthermore, as the risk profile of exploration activities for deep, critical minerals is significantly higher than for surface or bulk minerals, the Ministry of Mines has introduced 'Exploration License' to enable a more attractive risk-return framework to bring in specialized offshore mining. ' Started auction.Companies.
