India's Mining Reform: Towards a Sustainable and Competitive Future

India is implementing transformative reforms in its mining sector. Key initiatives include the state mining index, a tailings policy aligned with the National Critical Mineral Mission, and elimination of import duties on critical mineral scraps. These measures aim to enhance sustainability, professionalise state mining departments, and boost competitive advantage.

In a bid to overhaul the landscape of mineral exploration and processing, India's government announced several transformative reforms aimed at modernizing the mining sector. A key highlight is the introduction of a state mining index, designed to foster innovation and best practices within state mining departments, according to Mines Minister G Kishan Reddy.

Reinforcing this momentum, Finance Minister Nirmala Sitharaman revealed plans in her Budget speech for a comprehensive tailings policy, which dovetails with the National Critical Mineral Mission. This policy will focus on the recovery of critical minerals from mining by-products, further highlighting the government's commitment to enhance sustainability in the sector.

In a move set to enhance the competitiveness of the critical mineral recycling industry, import duties on non-ferrous metal scraps, such as cobalt powder and lithium-ion battery components, will be abolished. This measure is expected to lower production costs, drive new investments in advanced recycling technologies, and position India as a leader in the global minerals market.

(With inputs from agencies.)