Critical Mineral Mining Policy Changes in India: Understanding the New Framework

India has taken a decisive step toward securing its strategic mineral resources by exempting critical mineral mining projects from mandatory public hearings. On September 8, 2025, the Ministry of Environment, Forest and Climate Change (MoEFCC) issued an Office Memorandum that alters the regulatory landscape for mining projects involving atomic, critical, and strategic minerals.

This policy shift affects crucial resources including uranium, thorium, rare earth elements, lithium, cobalt, and graphite. The government’s rationale centers on national defense requirements, strategic considerations, and the urgent need to reduce import dependence. However, this decision has sparked intense debate about the balance between strategic imperatives and democratic participation in environmental governance.

Understanding the New Regulatory Framework

The Office Memorandum exempts mining projects for minerals classified under Part B (atomic minerals) and Part D (critical and strategic minerals) of the Mines and Minerals (Development and Regulation) Act from public consultation processes. Previously, these projects required mandatory public hearings where affected communities could voice concerns and provide input on potential environmental and social impacts.

Under the new framework, critical mineral mining projects will undergo centralized appraisal by Expert Appraisal Committees (EACs) at the central level, regardless of project size. This represents a significant departure from the established Environmental Impact Assessment (EIA) procedures that have long emphasized public participation.

The minerals covered include uranium and thorium-containing substances like monazite and pitchblende, along with the 30 critical minerals identified by the Ministry of Mines in 2023, including Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Lithium, Nickel, Phosphorous, Potash, Rare Earth Elements (REE), Silicon, Tin, Titanium, and Tungsten. These resources are considered essential for India’s defense capabilities, clean energy transition, and technological advancement.

Democratic Deficit: Concerns About Bypassing Public Participation

Role of Public Hearings in Environmental Governance

Public hearings have traditionally served as a cornerstone of India’s environmental democracy. They provide affected communities with a legal platform to voice concerns, offer local knowledge, and hold project proponents accountable. This participatory mechanism ensures that development projects consider social and environmental impacts beyond technical assessments.

The Environmental Impact Assessment (EIA) Notification, 2006, issued under the Environment (Protection) Act, 1986, made public consultation a mandatory component of the clearance process for Category A and Category B1 projects, including mining. The notification institutionalized the role of affected communities by requiring project proponents to present their proposals before the local population and address concerns raised.

The Supreme Court has previously affirmed that public hearings “cannot be mere formalities” and that substantive concerns raised must be addressed for valid environmental clearances. This democratic check has been particularly important for mining projects, which often have extensive and long-lasting consequences for local communities.

Risks of the Centralized Approach

The new centralized appraisal system might lead to a lack of complete oversight. The Expert Appraisal Committees will mainly use data from project developers, without also getting input from the communities that will be affected. This one-sided approach could miss important local details about land use, water, wildlife, and social issues.

Environmental groups warn that eliminating public participation will weaken oversight and marginalize communities most affected by mining projects. This is particularly concerning given that an estimated 54% of critical materials lie near indigenous people’s land (International Renewable Energy Agency – IRENA), making environmental concerns and local protests a significant challenge in critical mineral mining and processing. 

Historical cases like the Niyamgiri Hills conflict demonstrate that bypassing public consultation doesn’t eliminate community resistance but rather redirects it to less structured, more volatile forms of protest and legal challenges.

India’s Comprehensive Critical Mineral Strategy

National Critical Mineral Mission (NCMM)

The exemption from public hearings is part of a broader strategic framework. The Union Cabinet approved the launch of the National Critical Mineral Mission (NCMM) on January 30, 2025, following its announcement in the Union Budget 2024-25. The mission represents a comprehensive approach with an expenditure of Rs.16,300 crore and expected investment of Rs.18,000 crore by PSUs.

International Collaborations and Supply Chain Diversification

India has developed multiple international partnerships:

• Khanij Bidesh India Limited (KABIL): Established in 2019 as a joint venture company to acquire critical minerals globally, with engagements in Argentina, Australia and other resource-rich countries
• India-Australia Critical Minerals Investment Partnership
• Minerals Security Partnership (MSP): India joined this US-led initiative in 2023 to ensure stable critical minerals supply chains
• Quad Critical Minerals Initiative: Launched in July 2025 by the United States, Japan, India, and Australia to strengthen cooperation on securing and diversifying reliable supply chains, and electronic waste (e-waste) critical minerals recovery and re-processing
• India-Argentina Agreement (2024) for exploration of lithium mines

Policy and Regulatory Reforms

Several regulatory changes have been implemented to accelerate critical mineral development:

• Mines and Minerals (Development and Regulation) Amendment Act, 2023: Six minerals, including lithium, have been delisted to encourage private sector investment in exploration and mining
• National Mineral Policy, 2019: Promotes sustainable mining and exploration of critical minerals
• Elimination of customs duties on majority of critical minerals in Union Budget 2024-25
• Science and Technology – Promotion of Research and Innovation in Start-ups and MSMEs (S&T PRISM) Program, 2023 for funding start-ups and MSMEs bridging the gap between research and commercialization

Supply Chain Vulnerabilities and Geopolitical Risks

The urgency behind India’s critical mineral strategy becomes clear when examining global supply chain concentrations:

• Democratic Republic of Congo supplies approximately 70% of the world’s cobalt, but political instability has led to supply disruptions
• The “Lithium Triangle” consisting of Argentina, Chile, and Bolivia controls much of global lithium production
• China refines 68% of the world’s cobalt, 65% of nickel, and 60% of lithium
• In 2024, China banned exports of gallium, germanium, antimony, and other key materials to the US, demonstrating how critical mineral exports can be weaponized

India’s demand for critical minerals is expected to more than double by 2030, according to the Institute for Energy Economics and Financial Analysis (IEEFA) report released in October 2024. The report examines five critical minerals – cobalt, copper, graphite, lithium and nickel – and finds that India remains heavily reliant on imports with associated risks including strategic vulnerability, price volatility, economic implications, and potential hindrance to renewable energy goals.

Implications for India’s Mining Sector

Accelerated Development vs. Social License

The government expects the policy to accelerate project approvals and reduce bureaucratic delays. The NCMM specifically includes provisions for fast track regulatory approval processes for critical mineral mining projects. 

By classifying critical mineral mining under national security exemptions, the administration aims to fast-track strategic resource development. This approach reflects broader efforts to streamline clearance processes, including amendments to forest approval rules and creation of dedicated categories on the Parivesh portal.

However, the long-term success of this strategy depends on maintaining social acceptance. Mining projects without community buy-in often face prolonged conflicts, legal challenges, and operational disruptions that can ultimately delay development more than initial consultation processes would have.

Enhanced Oversight Mechanisms

The Office Memorandum mandates that EIA reports for exempted projects must include detailed assessments of impacts on local settlements, social infrastructure, employment opportunities, and grievance redressal systems. This requirement aims to ensure comprehensive review despite the absence of public hearings.

Additionally, all projects will undergo central-level scrutiny regardless of size under the NCMM framework, potentially providing more consistent oversight than the previous state-federal division of responsibilities. 

The mission follows a whole-of-government approach, working closely with relevant ministries, PSUs, private companies, and research institutions. The challenge lies in ensuring that this centralized system can effectively capture local concerns and maintain accountability.

Conclusion

The exemption of critical mineral mining from public hearings represents a significant policy shift that must be understood within India’s comprehensive National Critical Mineral Mission framework. While the government’s national security and economic rationale is compelling, supported by substantial investments and international partnerships, the long-term success of this approach depends on building public trust and maintaining effective oversight.

The challenge lies in ensuring that accelerated development doesn’t come at the cost of environmental protection and community rights, particularly given that 54% of critical materials lie near indigenous people’s land. As India pursues strategic mineral independence through domestic exploration, international partnerships, and advanced recycling technologies, it must find ways to honor both its security needs and democratic values.

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Critical Mineral Mining Public Hearing Exemption FAQs

1. Which minerals are exempted from public hearings in India 2025?

Ans. Uranium, thorium, lithium, cobalt, rare earth elements, graphite, nickel, and 24 other strategic minerals.

2. Why did India exempt critical mineral mining from public consultation?

Ans. National security requirements and reducing import dependence from China.

3. How does India’s critical mineral policy affect environmental clearances?

Projects undergo centralized Expert Appraisal Committee review without public hearings.

4. When was India’s critical mineral mining law changed?

Mines and Minerals Act amended in 2023, public hearing exemption September 2025.

5. Which countries dominate global critical mineral supply chains?

China controls 60% production, 80% processing; Congo supplies 70% cobalt.