The three entities, namely Indian Rare Earths, the Indira Gandhi Atomic Research Centre (IGCAR), and the Bhabha Atomic Research Centre (BARC), had been under restrictions on the US Entity List for several years. However, the US Department of Commerce’s Bureau of Industry and Security (BIS) recently announced their removal, a decision that signals improved prospects for bilateral cooperation.

A Positive Step for India-US Relations

The MEA welcomed the move, highlighting its potential to enhance collaboration between the two nations in key strategic sectors. “It is a welcome step. These have been on the entity list of the US for several years. This action by the US government will lead to greater collaboration between India and the United States in the fields of nuclear energy, clean energy, and also in the field of critical minerals,” stated MEA spokesperson Randhir Jaiswal.

The spokesperson also emphasized that the removal aligns with ongoing discussions, particularly within the framework of the India-US Initiative on Critical and Emerging Technologies (iCET), a high-level dialogue aimed at fostering innovation and cooperation in critical sectors. Jaiswal added that India is looking forward to increased engagement with the US in these vital areas.

Advancing Clean Energy and Critical Minerals Cooperation

The US Department of Commerce has underscored the strategic importance of the removals, particularly regarding the advancement of clean energy and critical minerals cooperation. Matthew Borman, Principal Deputy Assistant Secretary of Commerce for Export Administration, noted, “The removal of the three Indian entities will enable closer cooperation between the United States and India to secure more resilient critical minerals and clean energy supply chains.”

This development is seen as a significant step toward strengthening India’s access to essential resources needed to accelerate its clean energy transition and bolster its nuclear energy capabilities. The US and India have long shared mutual interests in securing critical minerals, which are fundamental to various high-tech industries, including renewable energy technologies, electric vehicles, and telecommunications.

Addressing Sanctions and Energy Security

In a related matter, the MEA also addressed the recent sanctions imposed by the US on entities in the Russian energy sector. The sanctions, announced on January 10, target several individuals and companies linked to the Russian energy industry. India, which has maintained strong ties with Russia in the energy sector, has indicated that it is in active discussions with US authorities to clarify the implications of these sanctions on Indian entities.

Jaiswal emphasized that India’s oil purchases are guided by the country’s own energy security needs, taking into account global market conditions and geopolitical circumstances. “Our oil purchases have been and always are guided by our own energy security requirements along with prevailing global circumstances and market conditions. That is how we look at the scenario,” he explained.

India is working closely with relevant agencies to ensure that Indian companies are fully aware of the legal implications of these new sanctions and are prepared to navigate the evolving regulatory landscape.

Looking Forward to Deeper Collaboration

The removal of these three Indian entities from the US Entity List marks a significant milestone.

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The government has amended the Second Schedule to the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, to rationalise the royalty rates for 12 critical and strategic minerals. These include Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten, and Vanadium. The amendments are part of broader efforts to promote mineral exploration and utilization, ensuring that the royalty structure is more aligned with the industry’s needs.

To further ease mineral exploration, the government has amended several regulations, including the Minerals (Other than Atomic and Hydrocarbons Energy Mineral) Concession Rules-2016, the Mineral Conservation and Development Rules 2017, and the Mineral (Auction) Rules 2015. Additionally, the Atomic Minerals Concession Rule 2016 has been revised to streamline the process. These changes are expected to encourage faster exploration and development of minerals across India.

Furthermore, the First Schedule of the Offshore Areas Mineral Development and Regulation (OAMDR) Act, 2002 has been amended, rationalising the royalty rates for offshore minerals like construction sand, dolomite, limestone, polymetallic nodules, and crusts, as well as overburden and waste. These moves aim to unlock the potential of offshore resources and enhance the overall mineral sector.

In terms of actual progress, the Ministry revealed that 88 mineral blocks have been successfully auctioned by December 10, 2024, marking a significant achievement in mineral block auctions. Alongside this, the National Mineral Exploration Trust (NMET) has approved 120 mineral exploration and procurement projects, with an approved cost of Rs 609.54 crore, as part of its ongoing commitment to boost mineral exploration efforts across the country.

For critical and strategic minerals, the Geological Survey of India (GSI) has undertaken 195 mineral exploration projects. In addition, the Ministry has been empowered to auction blocks for the grant of exploration licenses through a new order dated October 21, 2024, under section 20A of the MMDR Act, 1957.

The Ministry has also placed a strong emphasis on funding mining exploration projects through NMET, which has supported 40 critical mineral exploration initiatives in 2024-25. To further enhance exploration efforts, 28 private exploration agencies (NPEAs) have been notified to encourage private sector participation in the mineral exploration landscape.

On the regulatory front, the government has implemented measures to promote the mining industry by cutting basic customs duties (BCD) on two minerals and removing customs charges on 25 others. These steps are aimed at making the mining sector more competitive and facilitating growth.

In a major announcement, the Union Finance Minister, during the Union Budget for 2024-25, declared the establishment of a Critical Mineral Mission. This mission aims to enhance domestic production, promote recycling of critical minerals, and acquire critical mineral assets from overseas markets, further strengthening India’s position in the global mineral supply chain.

These actions taken by the Ministry of Mines are expected to pave the way for sustainable growth in the mining sector, ensuring that critical and strategic minerals play a pivotal role in India’s economic development in the years to come.

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