Ministry of Mines has launched a new scheme to directly sanction exploration projects to Notified Private Exploration Agencies (NPEAs) for critical and deep-seated minerals.
The Ministry has also allowed these NPEAs to bid for auction for mineral blocks explored by them which was not allowed earlier.
The interested private exploration agencies are required to obtain accreditation in accordance with the scheme of Ministry of Mines and thereafter apply to the Ministry for their notification, the Ministry said in a statement.
The ministry highlighted that the decision to allow NPEAs to directly submit projects will help in cutting out delays in sanction of projects as well as help in faster execution of projects.
Further, the provision to allow these exploration agencies in bid to auction the explored mineral blocks by them will attract bigger companies in mining in the exploration arena.
This provision is also expected to encourage junior mining companies from around the world to come to India and take up exploration projects with NMET funding.
Overall, this new scheme is expected to bring many players in exploration arena including international ones and help in bringing new technologies in the field of exploration.
The ministry highlighted that since March 2022, Ministry of Mines has notified 16 Private Exploration Agencies to take up exploration projects through State Governments, funded by NMET.
Since then, only 17 projects to five NPEAs for Rs 15.88 crore have been sanctioned from NMET funds. Out of 17 projects sanctioned so far, 11 are of critical minerals.
Recently, through an amendment in the MMDR Act on August 17, 2023, 24 minerals such as Graphite, Nickel, PGE, REE, Potash, etc., were notified as Critical and Strategic minerals by Ministry of Mines.
The amendment confers the power to grant mineral concession of these minerals to Central Government so that the Government can prioritize auction of these minerals looking at the requirements of the country.
Ministry believed that as these critical minerals are indispensable for the growth of our economy, authorising the Central Government to auction concession for these critical minerals would increase the pace of auction and early production of the minerals.