Explainer: The National Mineral Exploration Trust’s role in promoting clean mining tech

Since inception, NMET has funded 270 mineral exploration projects

The ministry of mines recently announced that the National Mineral Exploration Trust (NMET) had approved 51 mineral exploration projects worth Rs 419.48 crore in FY22-23, highlighting the significance of the non-profit body as the country looks to expedite mineral exploration amid its pivot to cleaner technologies.

The trust plays a crucial role in identifying and funding exploration of  critical minerals such as lithium, the platinum-group elements, graphite, molybdenum, etc., and helps the government strengthen the domestic supply of raw materials required to shift to green energy.

Moneycontrol explains what NMET is and why it is in the news.

What is NMET? 

NMET is a non-profit trust set up by the central government in 2015 to  support mineral exploration and other activities approved by the governing body.  NMET raises funds  by auctioning mining or prospecting-cum-mining leases.

Why was it formed? 

Formed to boost exploration activities in the country and introduce schemes to successfully auction mineral blocks, the trust has streamlined the process of sanction and release of funds for the speedy implementation of exploration projects.

What are its key functions?

The body funds special studies and projects designed to identify, explore, extract, beneficiate (improve a raw material) and refine deep-seated or concealed mineral deposits. It has formulated financial schemes to support  the procurement   of machinery, equipment, instruments, software upgrades, and other advanced technology for exploration and mining activities. The funds are provided to government organisations such as the Directorate General of Mines Safety and  state departments of mines and geology (DMGs).

What have they done so far?

Since inception, NMET has funded 270 mineral exploration projects, 162 of which have been completed and 108 are ongoing.  Of the 162 completed projects, 11 have been auctioned by the concerned state governments, and six projects are in pipeline. There is no update regarding the auction of the remaining projects.

The 51 mineral exploration projects approved in FY22-23 include 21 projects worth Rs 54.34 crore for critical minerals.

What are the future plans?

The trust is looking to add more staff to enhance autonomous functioning, the ministry said in a written reply in the  Lok Sabha when asked about the NMET’s future plans. Twelve posts will be created, including one post of  Director General, six posts in the technical division, three in the finance division, and two for the admin and legal departments.