Moneycontrol PRO
HomeNewsBusinessGovt exempts mining of critical and atomic minerals from public consultations

Govt exempts mining of critical and atomic minerals from public consultations

Prior to this, the Environment Ministry on August 31 also amended the Forest Conservation rules to create an exclusive category for critical and strategic minerals to fast-track forest approvals for such projects.

September 10, 2025 / 15:00 IST
.

.

In a significant move that could cut months and even years taken to initiate mining projects in India, the Ministry of Environment, Forest and Climate Change (MoEFCC) has exempted “critical, strategic and atomic minerals” from all forms of public consultations. The decision was taken based on requests from the Ministry of Defence and the Department of Atomic Energy,  according to the MoEFCC.

Usually, the MoEFCC, under the Environmental Impact Assessment (EIA) Notification, 2006, mandates public consultations as part of the environmental clearance process for mining projects. Often these public hearings, meant to ensure environmental protection and community rights, take significant time due to local objections and clarifications. However, the latest exemption is set to fast-track mining of atomic and critical minerals in the country.

“Keeping in view the national defence and security requirement and strategic considerations, all mining projects of atomic minerals notified in part B and critical and strategic minerals notified in Part D of the First schedule of MMDR Act shall be exempted from public onsultation in terms of sub-clause (f) of clause 7 (III) (i) of EIA Notification, 2006 (as amended) and will be appraised at the Central level irrespective of the lease area involved in the proposal,” read a September 8 office memorandum (OM) issued by the environment ministry and seen by Moneycontrol.

Also read: India to quadruple uranium imports for nuclear energy mission.

The atomic minerals listed in the MMDR Act or the Mines and Minerals (Development and Regulation) Act, 1957 include uranium, thorium, monazite (beach sand that contains thorium and rare earths) and zircon. The critical and strategic minerals listed in the MMDR Act include beryllium, cadmium, cobalt, gallium, indium, rhenium, selenium, tantalum, tellurium, titanium, tungsten, vanadium, graphite and potash among others.

Currently, only the government is empowered to explore and mine atomic minerals, while critical and strategic minerals are open to the private sector to bring in the scale in domestic production, which is also why the Indian government launched the National Critical Minerals Mission this January.

India faced a rare earth minerals supply crisis between April and July when China imposed export curbs, highlighting the country's heavy dependence on China for these critical materials essential for electronics, auto components and clean energy technologies.

Urging industries to support local suppliers, Union commerce and industry minister Piyush Goyal on September 9 said steel firms could also witness a shortage situation similar to what rare earth-dependent companies faced following China’s export curbs.

For national security, say Defence and Atomic Energy Ministries

The Environment ministry stated that its decision was based on letters sent by the Ministry of Defence and the Department of Atomic Energy (DAE) on August 4 and August 29 respectively, requesting to exempt such mining projects from public hearings for national security.

The Defence Ministry stated that it needs rare earth elements (REEs) for production of surveillance and navigational aids (such as radar and sonar), communication and display aids (such as lasers, monitors and avionics), mounting system in armed vehicles and tanks, precision guided munitions, guidance system (that controls targeting of missiles) and so on. It added that REEs have major applications in manufacturing permanent magnets, which are critical for defence equipment.

Also read: Critical minerals: India has agreements with 8 countries, talks on with 2 more.

The defence ministry further said mineral resources for rare earths are scarce in India, and with supply concentration in limited parts of the world, it poses a “huge supply risk for the country and requires a steady supply of rare earth elements from domestic mines.”

“Accordingly, the Ministry of Defence has requested that mining projects related to critical and strategic minerals may be considered as projects concerning National Defence and security or involving other strategic considerations and may be exempted from public consultations for the grant of Environmental Clearances,” read the OM issued by the Environment Ministry.

The DAE sought similar exemption stating that thorium extracted from monazite, a beach sand material, is a fuel source for use in India’s third-stage atomic energy programme, while uranium is needed in the current stage of India’s nuclear ambitions. “This requires enhancement of production of these minerals by way of operationalization of new deposits of uranium and beach sand minerals in the country,” it said.

The MoEFCC, however, said such projects will be subjected to a “comprehensive appraisal” by concerned sectoral expert appraisal committees, and they will be appraised at the central level, irrespective of the project size.

Slew of measures to expedite clearances

Prior to the September 8 order, the Environment Ministry on August 31 also notified amendments to the forest conservation rules - Van (Sanrakshan Evam Samvardhan) Amendment Rules, 2025, wherein it provided exemptions to projects of “defence”, “strategic” and “national importance”, “public interest” etc to submit their applications offline.

In the monsoon session of the Parliament, the ministry stated that it has also set up a separate category on its online clearance portal to speed up approvals for mining projects involving critical minerals.

Atomic minerals like uranium and thorium are crucial for fueling India’s nuclear power plants and advancing nuclear technology, which supports the country’s energy security and scientific research.
Strategic minerals such as iron ore, chromite, and copper are foundational for manufacturing defense equipment, aerospace components, and steel, making them vital for national security and industrial growth.

Meanwhile, critical minerals like rare earth elements, lithium, and cobalt drive the rapidly growing high-tech and green energy sectors by powering electric vehicle batteries, renewable energy systems, and advanced electronics, helping India reduce import dependence and transition to a sustainable, technology-driven economy.

Sweta Goswami
first published: Sep 10, 2025 02:58 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347