Certain miners holding onto acquired blocks without commencing timely operations - or squatting - is cause for concern industry must look to address, Union Mines Secretary Keshav Chandra said at 60th AGM of Federation of Indian Mineral Industries FIMI Tuesday.
Government concerned about squatting over mines. Mining commences after arduous process approvals including forest and environment clearances. Thereafter after mining lease signed miners expected to commence operations within given substantial time-frame. Despite that some operations do not start. It affects mineral wealth, production gets compromised. Chandra requested members to expedite and not contravene provisions. Squatting not going to help anybody, it is speculation, no activity should promote speculation, reforms aimed at accelerating production.
Squatting is rational for miners - acquire block cheaply, wait for mineral prices to rise, flip or use as as balance sheet asset. But for country critical mineral security suffers - lithium, nickel, iron ore blocks locked.
Secretary also said India kept prospects open on return to lithium exploration in Mali. Russian State Atomic Energy Corporation approached India last year for collaborative effort for lithium extraction in West Africa, pact kept on hold owing to political instability in Mali. We are looking at it very openly.
Also very substantial scheme for domestic processing of nickel and lithium in works to localise entire battery ecosystem.
India auctioned 100+ mineral blocks in last two years, but production from only 30 started. Squatting defeats auction purpose. Need use-it-or-lose-it clause with bank guarantee forfeiture, like coal. Without it, Atmanirbhar in critical minerals remains on paper while blocks sit idle.