Chairman and Managing Director of IREL (India) Limited Deependra Singh.
Credit: Special Arrangment.
Rare earth elements and other critical minerals are the building blocks of modern technologies. Be it the production of high-tech electronics, electric vehicles or modern defence equipment the role of critical minerals is pivotal. IREL (India) Limited, the erstwhile Indian Rare Earths Limited, is one of the key players in the rare earth and heavy mineral industry.
This mini ratna central public sector enterprise functions under the administrative control of the Department of Atomic Energy. In an interview with DH’s Gyanendra Keshri, Chairman and Managing Director of IREL (India) Limited Deependra Singh talks about the growing role of critical minerals in India’s strategic and economic future and challenges in the sector. Excerpts:
How important are the critical minerals for the economy and what kinds of investments are required in the area?
Critical minerals are quite important for the economy. Its incorporation in functional materials leads to superior material of construction, improved performance and technology which is vital for modern technology. Since critical minerals are subjected to long drawn ecosystems, economic application of such minerals requires exploration, exploitation, processing and refining. Intermediate industrial application is required to convert them into suitable materials for user industry. As far as investment is concerned, it would depend largely on scale of operation and content availability of minerals among other things.
Reserves of various critical minerals have been discovered in different parts of the country. By when do you expect India to become a significant player in the critical minerals sector?
There are diverse parameters and factors. Ore is just one part of it. Simply discovery or mining of ore will not make us a significant player. The development of processing and refining capabilities is crucially important. China is today a dominant player in critical minerals because of processing and refining capabilities. Ores are available in so many other countries but China is having a near monopoly in processing and refining of several critical minerals. Therefore along with the mining of ore we have to develop processing, refining and other capabilities to become a significant player in the sector. It may not be appropriate to indicate any timeframe for this.
Could you elaborate on the role played by IREL in India's strive to achieve Atmanirbharta in the areas of critical minerals?
Indian Rare Earths Limited (IREL) was set up in 1950 to process and produce rare earth concentrate. At present, IREL is engaged in mining, beneficiation, processing and refining of rare earth elements. These activities are even more complex than critical minerals. The experience of IREL in rare earth elements can be further utilised in the areas of critical minerals. Only three-four countries in the world have the capability to produce rare earth elements. India is one among them. IREL has been instrumental in striving to achieve Atmanirbharta in the case of mining, processing and refining of rare earth elements. However, further operations in terms of alloying and product manufacturing are open to the private sector.
Critical minerals have received a lot of attention in recent months. The government recently announced setting up a critical mineral mission and reduced tariffs on imports of certain critical minerals. How do you see the progress?
The Critical Mineral Mission is a policy initiative announced in the Union Budget 2024-25 to reduce India’s reliance on imports of critical minerals. The mission aims to expand domestic production, recycling, and incentivise acquisition of assets. The mission is progressing satisfactorily. Awareness programme has been conducted by the Ministry of Mines. Various research and development activities have been initiated by the Council of Scientific and Industrial Research and other laboratories. Sustained efforts are required to achieve the objectives of the mission.
What are the challenges you see in this area?
The biggest challenge is the geo-political monopoly in the sector. China has a near monopoly in several critical minerals. The Chinese dominance in processing and refining creates supply-side risks. It also leads to price volatility. There is insufficient data on consumption, production and trade of minerals. Then there are environmental concerns. Refining and processing of critical minerals requires a huge amount of water. So it may lead to water depletion and air pollution.