No gains from 38 critical blocks in this decade: Icra

PTI

New Delhi, May 22

Icra, a promiment credit rating agency, on Wednesday said 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.

Inferior grade ores

• Given the inferior grade of explored domestic ores, advancement in mineral processing technology remains critical for commercialisation of domestic critical mineral resources
• The technology for extracting lithium from hard rock and brine deposits has matured, but the same for extracting lithium from clay deposits remains untested globally

“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, Group Head, Corporate Sector Ratings, Icra said.

On the other hand, the lithium block being auctioned in Katghora, Chhattisgarh is a hard rock deposit. The ore here belongs to a broader class of lithium-bearing minerals named lepidolite. China is a large producer of lithium from lepidolite ores. Therefore, competition to acquire the Katghora mine is likely to be much higher compared to the J&K block.

However, given the inferior grade of explored domestic ores, advancement in mineral beneficiation/ processing technology remains critical for commercialisation of domestic critical mineral resources, Kadam added. Apart from developing domestic critical mineral resources, the government is parallelly looking at acquiring overseas assets from key resource-rich regions like South America, Australia, and Africa as an alternative to ensure mineral security.