Mines exploration will be beneficial in 6 yrs

New Delhi: Icra on Wednesday said that benefits from the 38 critical mineral blocks that have been put on sale are not likely to accrue in the current decade ending 2030 as the mines are not fully explored.

“The preliminary stage of exploration for most of the domestic blocks that are currently being auctioned suggests that their commercialisation and associated benefits are unlikely to fully accrue in the current decade ending 2030. Therefore, India’s downstream manufacturing facilities are likely to remain exposed to potential future supply shocks of critical minerals in the intervening years,” Icra said in a statement.

The government is auctioning two lithium blocks in the ongoing auctions. The one in Jammu & Kashmir has clay deposits. While the technology for extracting lithium from hard rock and brine deposits has matured, the same for extracting lithium from clay deposits remains untested globally. Given these challenges, the J&K lithium block received less than three bids, resulting in a re-auction of the block, Girishkumar Kadam, Senior Vice-President & Group Head, Corporate Sector Ratings, Icra said.