India's maiden critical minerals bid: Experts caution on ecological impact

The bidding process for the first tranche of critical minerals is scheduled for the coming month. The country’s maiden critical mineral auction will see close to 7,182 hectares of land going under the hammer.

While the auction paves the way for India’s energy security, experts have raised concerns about whether the government will be able to make the diversion of land on the basis of equity and global just energy transition principles.

“The government will get clearances in place, but the point here is to make sure they are given on the basis of equity and just energy transition principles… which is where the current mining rules fell short of,” said an industry expert.

S P Sati, geologist and professor of environmental science at Uttarakhand University of Horticulture & Forestry, said: “In addition to the absence of a fair energy principle, the lack of stringent protocols for waste disposal is a significant issue.”

Furthermore, Sati emphasised that the impact of critical mineral mining would be particularly severe in environmentally sensitive hilly areas.

According to the auction documents, the 7,182 hectares of land needed for the 20 blocks are divided into three categories — forest land with status, government land with status, and private land. Among these, approximately 1,233 hectares constitute forest land. Details regarding the forest land with status are provided for only 13 of the 20 blocks.

While critical minerals fuel energy needs, their extraction does bring up issues around ecology. Mining of any kind scars landscapes, pollutes air and water, and risks ecosystem degradation. Along with local communities facing the fear of displacement and loss of interdependent flora and fauna.

During the launch of the auction process on November 29, Union Minister of Mines Pralhad Joshi said that the collective value of these 20 blocks was estimated to be $5.4 billion (Rs 45,000 crore).

The government is confident the auction will witness wide interest from a variety of industrial sectors. There is, however, uncertainty regarding the deployment of environmentally friendly and cleaner technology by investors, which experts say is an untested area in the country.

Environmental activists argue that these projects should undergo rigorous scrutiny because critical minerals, often rare and involving complex extraction processes, could have a more significant environmental impact.

For instance, lithium mining has the potential to pollute water sources, and cobalt mining has been associated with human rights abuses and environmental problems in specific regions.

Stalin Dayanand, director of NGO Vanashakti, asserts that the entire project could result in the felling of hundreds of thousands of trees, leading to the destruction of wildlife habitats and an increase in carbon levels in the region.

“Groundwater is expected to be adversely affected, and natural water reservoirs are likely to become polluted. While the project proponents may undertake tree planting, growing trees cannot serve as a substitute for a natural forest,” he said.

“The rules should be to conduct afforestation in the same area where the destruction is occurring, rather than implementing such initiatives elsewhere,” he added.

The government wants to expedite the process because of the growing demand for these critical minerals.

An analysis of Ministry of Commerce and Industry data reveals that the import value of all these 10 minerals rose 34 per cent to $11 billion (Rs 91,000 crore) from $8.3 billion (Rs 68,000 crore) in 2021-22.

Among the 10 critical minerals presently on bidding blocks, the commerce and industry ministry’s data indicates no import for glauconite. Of the remaining nine minerals currently being imported, all, except nickel, have experienced an increase in import levels.

The tender document issued by the Ministry of Mines comprises 14 minerals up for auction, but only 10 of them belong to India’s list of 24 critical minerals. The remaining four — chromium, copper, manganese (ore), and bauxite — are listed because critical minerals are frequently found in rocks that also contain other minerals.