Centre Pushes Critical Mineral Exploration with Tech-Driven Strategy at NMEDT Governing Body meeting

“Achieving self-reliance in critical minerals is not optional—it is fundamental to India’s economic growth, energy transition and technological leadership,” Shri Kishan Reddy stated.

In a strong push to secure India’s mineral future and reduce import dependence, Union Minister of Coal and Mines Shri G. Kishan Reddy today chaired the 7th Governing Body meeting of the National Mineral Exploration & Development Trust (NMEDT), outlining a technology-driven, mission-mode strategy for critical mineral exploration.

The high-level review, held in New Delhi in the presence of Minister of State for the Department of Atomic Energy Dr. Jitendra Singh, assessed NMEDT’s performance for FY 2025–26 and set an ambitious roadmap focused on Aatmanirbharta, faster project execution and integration of advanced technologies.

Strategic Shift: Critical Minerals at the Core of India’s Growth Agenda

At the heart of the discussions was a clear directive: prioritise exploration of critical minerals essential for clean energy, electronics, defence and advanced manufacturing.

“Achieving self-reliance in critical minerals is not optional—it is fundamental to India’s economic growth, energy transition and technological leadership,” Shri Kishan Reddy stated.

India currently imports a significant share of key minerals such as lithium, cobalt, rare earth elements and nickel, which are crucial for sectors like electric mobility, renewable energy storage and semiconductors. Global supply chains remain concentrated in a few countries, making domestic exploration a strategic imperative.

Faster Exploration-to-Auction Pipeline: States Given Clear Mandate

The Minister directed States to:

• Expedite ongoing exploration projects

• Streamline approval processes and clearances

• Improve inter-agency coordination

The goal is to significantly reduce the time between mineral discovery and auction, a long-standing bottleneck in India’s mining ecosystem.

Data presented during the meeting showed that while exploration activity has increased, conversion of explored blocks into auction-ready assets remains uneven across States, necessitating stronger governance and monitoring frameworks.

Technology-Led Exploration: AI, Drones and Advanced Beneficiation

A major innovation thrust of NMEDT is the integration of cutting-edge technologies into mineral exploration.

The Minister emphasised adoption of:

• AI and Machine Learning (AI/ML) for predictive mineral targeting

• Drone-based geophysical and geochemical surveys for high-resolution mapping

• Modern beneficiation technologies to improve recovery rates from low-grade ores

These tools are expected to:

• Enhance accuracy of exploration data

• Increase success rates in mineral discovery

• Reduce time and cost of surveys

Dr. Jitendra Singh further stressed the need to integrate scientific institutions and advanced research capabilities into the exploration value chain to accelerate outcomes.

Opening the Sector: Startups and Private Players to Drive Innovation

In line with the Startup India vision, the government is expanding participation of:

• Startups and innovation-driven enterprises

• Notified Private Exploration Agencies (NPEAs)

• Research and academic institutions

This marks a shift from a predominantly public-sector-driven model to a collaborative, innovation-led ecosystem, aimed at bringing new technologies, agile execution and global best practices into mineral exploration.

NMEDT Transformation: Expanded Mandate and Higher Funding Pool

A key reform highlighted during the meeting was the transformation of NMET into NMEDT (National Mineral Exploration & Development Trust) following amendments to the MMDR Act, 1957 in 2025.

Key changes include:

• Increase in funding contribution from 2% to 3% of royalty

• Expanded mandate to include:

  • Offshore mineral exploration in India

  • Exploration and mine development abroad

This expansion significantly enhances India’s ability to secure mineral assets globally while strengthening domestic exploration capacity.

National Critical Mineral Mission: ₹20 Crore Pilot Funding Model

Under the National Critical Mineral Mission (NCMM), NMEDT has launched targeted funding initiatives to unlock unconventional mineral sources.

Key features:

• Up to ₹20 crore funding per pilot project

• Minimum 10% industry contribution

• Focus on recovery of critical minerals from:

  • Overburden and mine dumps

  • Tailings and industrial residues

  • Fly ash and red mud

A flagship pilot project has already been sanctioned to the Non-Ferrous Materials Technology Development Centre (NFTDC) for establishing a rare earth mineral separation facility, a critical step toward reducing dependence on imports.

Circular Economy Push: Mining Waste to Resource

NMEDT is also driving sustainable mining practices through:

• Geochemical analysis of mine waste, tailings and slags

• Collaboration with the Indian Bureau of Mines (IBM) to assess recovery potential

• Alignment with the National Tailings Policy, 2025

These initiatives aim to transform mining waste into valuable secondary resources, supporting both resource efficiency and environmental sustainability.

Performance Snapshot: FY 2025–26

The meeting reviewed key achievements:

• 76 critical mineral exploration projects sanctioned

• 45 NMEDT-funded blocks auctioned, including:

  • 10 blocks of critical minerals

• Significant increase in private sector participation

Officials noted that this represents a sharp acceleration in exploration activity, although further efforts are needed to streamline downstream processes.

Toward a Secure and Sustainable Mineral Future

The reforms under NMEDT are part of a broader national strategy to:

• Ensure long-term availability of critical minerals

• Strengthen energy security and industrial competitiveness

• Build a globally competitive mining ecosystem

• Promote sustainable and technology-driven resource development

With global demand for critical minerals projected to grow exponentially—particularly due to the clean energy transition—India’s proactive approach positions it to reduce vulnerabilities, attract investment and emerge as a key player in global mineral supply chains.

As the government accelerates reforms, the convergence of policy support, technology adoption, private participation and sustainability frameworks is expected to redefine India’s mineral exploration landscape in the coming decade.