
Author: Web Admin
CBI Letter to enquire Federation of Placer Mineral Industries
Mining Engineer’s Association Recommendations on EIA 2020
Will India win China in Rare Earth Industry by encouraging Indian producers?
Wrong Policy of India on Rare Earth help the Chinese growth in this filed. Our nation loose Rs. 90,000 Crore per year because of the wrong policy.
இந்திய அரசின் தவறான கொள்கை சைனா வளர்ச்சிக்கு வழிவகிக்கிறது. ஆண்டுக்கு 90,000 கோடி ரூபாய் வருமானத்தை நம் நாடு இழக்கிறது.
Policy on Beach Mineral issued by DAE
WHITE PAPER ON RARE EARTHS IN INDIA
WHITE PAPER ON RARE EARTHS IN INDIA
By C. SWAMYDAS
- INTRODUCTION
Honourable Prime Minister Modi in his speech at CII webinar, June 2020 invited the private sector into defense and nuclear mineral supply chain in the country, which has special reference to the Rare Earth Elements (REEs), which are extremely critical to defense manufacturing facilities. He also said that now the industry has a clear path – self-reliant India. “This means that we embrace the world with even more strength. Self-reliant India will be integrated more with the global ecosystem,” he said. Self-reliant India is about — Strong enterprises; generating employment; empowering people to come out and find solutions. Now, the need is that we make those products that are made in India, but made for the world. We have to cut our imports. We want to create enterprises of global repute; we want to create a robust local supply chain. We want to make private sector our partner for growth, adding that “we will together build self-reliant India”
In “Report on India’s Renewable Electricity Roadmap 2030: Towards Accelerated Renewable Electricity Deployment”, Former Member (Energy) of the erstwhile Planning Commission of India had observed” We should not get into the mindset that RE is the intruder and conventional energy is the main player. Why not consider RE to be the main occupants of the “house” and then work out the rest of the system around RE, essentially because RE is the future?”
Rare Earths play dominant role in the development of the country. Rare earth elements are a group of 17 elements classified as LREE and HREE. LREE’s are Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu). HREE’s are Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), Holmium (Ho), Erbium (Er), Thulium (Th), Ytterbium (Yb), Lutetium (Lu), Yttrium (Y), Scandium (Sc), Promethium (Pm).
The reason behind the incredible value of the rare earth industry is that they are incredibly useful and important to the technology industry, which is one of the biggest industries in the world. They are integral to clean energy, computers, advanced transportation, national defense and consumer electronics. Another industry which is hugely dependent on rare earth metals is the renewable energy industry, and these metals are especially common in wind turbines and electrical vehicles.
- APPLICATION OF RARE EARTHS:
- Defense, Aerospace and aviation: Precision-guided munitions and guided bombs, target designators and range finders, electronic counter measures, coatings, optical equipment, communication devices, radar systems and displays, space shuttles, light weight jet engine turbines, stabilizer material in rocket nose cones, laser crystals, electrical systems in aircrafts, missile guidance systems, electronic countermeasures and other aircraft parts.
- Health Care: CAT scans, MRIs, PET imaging X-rays, laser and radioscopic cancer treatments, neodymium light lasers, motors in surgical robots etc.
- Clean Energy: Energy efficient lightings, LEDs, Wind energy, Solar energy, Electrical vehicles etc.
- Electronic Devices: Smart phone, GPS system, Colour display, Rechargeable batteries, Hard drives etc.
- Advanced Communications: GPS, Space satellites, Communication systems, signal amplification and fiber optic cables.
- Automobiles/ Electronics/Consumer goods/ Miscellaneous : TV sets, camera lenses, battery electrodes, hydrogen storage, catalytic converters, coloured glass and steel production, welding goggles, microphones, nuclear reactor control rods, fluorescent glass, shielding in nuclear reactors, fuel cells, sonar systems, high temperature super conductors, petrol refining, integrated circuit manufacturing, automobiles, bicycle, cosmetics, stationary materials, watches, ornaments, tooth brush and paste, toilet seat, soap, clothing, trains, and supplementary tablets.
- RARE EARTHS REQUIREMENT IN THE INDIA
As per the Power Minister’s news report on 12th November 2019 to Times of India, the renewable energy capacity in India is planned to increase from 85 GW to 145 GW by 2022 and more than 55% of the installed power generation in India will be from renewable sources by 2030. As per National Institute of Wind Energy (NIWE), the potential of wind energy in the country with a minimum capacity factor of 20% ranges from 984 GW to 1549 GW for a 80 metre web height. The potential may be even higher when the web height increases from 80 metre to 120 metre. During the yearend review for 2018 of ministry of New and Renewable energy, it was decided that every year 10 GW wind energy will be added. As per Ministry of new and renewable energy, the solar power potential in the country is 750 GW. Both wind power and solar power require rare earths.
As per “Indian Automobile Industry Analysis” by Indian Brand Equity foundation, the total vehicle production in India during 2019 was 32 million. As indicated by NITI AYOG in their “Zero emission vehicles (ZEVs): Towards a policy framework”, 79% of them are two wheelers, 4% is 3 wheelers, buses and goods vehicles are 3% and the balance 14% is passenger vehicles.
The annual REE requirement in the country by 2030 will be minimum 25,000 t. (Annexure-1). The requirement will gradually increase from the existing level to this level by 2030 and may further increase after that based on our green energy requirement.
Present scenario: India presently produces only mixed rare earths of required quality. So far, after 70 years in this field, individual rare earth elements of required purity of 99.99/99.999/99.9999 is not produced in a commercial scale (May be other than Toyutsu), nor commercial production of rare earth metal, alloys, magnets and other REE based components is existing in India. This shows the complacent attitude of the concerned. All rare earths-based components required for various applications in India are presently being imported, mainly from China. It may not be out of place to mention that China had stopped REE and REE based components to Japan and USA when the relations between the countries were sour.
- RARE EARTH MINERAL RESOURCES IN INDIA
- Rare Earth Mineral sources:
Studies had been carried out to evaluate the primary RE minerals as well as extraction of REEs from secondary sources like fly ash, red mud etc., but the commercial viability and abundance are not encouraging. In India, as at present, the only techno-economically feasible mineral for production of rare earth elements is monazite, which occurs in the beach sand mineral deposits. Indian monazite contains typically 59% REE, 8-9% thorium and 0.35% uranium and the balance is phosphate. Monazite mineral always coexists with other minerals like ilmenite, garnet, zircon, rutile and sillimanite and it is called beach sand mineral deposit (BSM). For meeting the REE requirement Mining and processing of BSM for the production of monazite will also produce all the minerals. The table below shows the BSM deposits in the country.
| S.No. | Mineral | World Reserves
Million Tonnes** |
Reserves in India
Million Tonnes* |
Percentage share of global reserves |
| 1 | Ilmenite | 1400 | 593 | 35 |
| 2 | Garnet | 420 | 168 | 40 |
| 3 | Sillimanite | NA | 226 | NA |
| 4 | Zircon | 243 | 34 | 14 |
| 5 | Rutile | 310 | 31 | 10 |
| 6 | Monazite | 17 | 12 | 71 |
Table 1 ( *India figures are based on AMD. Hyderabad report. **World figures are based on USGS report for 2013)
- India’s attempt towards REE sector development :
Under the leadership of Dr. Homi Bhaba, India recognized the importance of rare earths way back in 1950 and started extracting the rare earths by forming a public sector company Indian Rare Earths Limited (IREL) under Department of Atomic Energy. India, however could not make progress in this sector due to several reasons.
Though IREL was primarily set up to develop India’s capacity to produce rare earth, subsequently its focus shifted to other common minerals (which are comparatively easier to extract) as evident from the fact that the majority of its income is generated from the production and marketing of the common minerals contained in the beach sands such as ilmenite, rutile, zircon, sillimanite and garnet. Despite being an early mover, India could not develop itself as a manufacturer of rare earth elements and further value addition to metals and magnets. Even after 50 years of operating the plant set up in 1950, IREL never ventured or even interested in carrying out R&D activities for the production of high pure individual rare earth elements or further value addition to metals and magnets.
In 2004, IREL stopped the operation of the plant and started to construct a new plant with new technology to process 10,000 tpa of monazite to produce mixed rare earths. It is worth mentioning that even after having the experience in the operation of monazite processing for 50 years to produce mixed rare earths, the new 10000 tpa monazite processing facility set up by IREL in Orissa has not reached the full capacity till now. As per information in December 2019, the plant has reached only 60% capacity after about 15 years since the project work was started. It makes further clear that IREL, presently the nodal agency in India for REE may not be in a position to handle the new challenge of 50000 tpa monazite processing facility.
- PRESENT STATUS OF BEACH SAND MINERALS AND THEIR PRODUCTS IN INDIA:
The beach sand minerals mining activity in India is over a century old and commenced in 1908 when the beach sand containing monazite was mined and taken to European countries from the erstwhile Travancore state. After independence, the BSM sector was brought under the controlled regime due to the presence of monazite. It is pertinent to note that until 1998, this sector was restricted only to Public sector companies and there was no substantial development in the production capacity of these beach sand minerals and no significant value addition facilities. Recognising the untapped potential of the Beach Sand Minerals sector, the Department of Atomic Energy (DAE) announced the Policy on exploitation of Beach Sand Minerals in 1998 and opened up this sector to wholly Indian owned companies which brought in significant investments by private sector companies. Since entry of the private sector, the production of beach sand minerals has substantially increased and the export value has increased from Rs. 35 crores in 1998 to over Rs 5000 crores in 2016. The private sector producers have spearheaded not only mineral production but also invested in the value chain.
However, consequent to the MMDR Amendment in 2015 and subsequent release of AMCR in 2016, the scope for private sector in BSM processing was limited by fixing threshold value of monazite in the total heavy minerals as 0.75%. This was subsequently changed to 0.0%, totally eliminating the private sector in BSM mining.
The reason being mentioned for fixing this threshold value was that as monazite contains 0.3% uranium and 9-10% of thorium and there is scope for export of monazite from the country. It may be noted that all regulations are in place to avoid export of the mineral monazite from India. Radiation scanners are already available in all the ports for this purpose. It is worth mentioning that commercial thorium fuel reactors are not working anywhere in the world and the uranium available in monazite is negligible. In India, it is not certain when the thorium-based power plants will be fully operational is not known and the possibility is it may take another minimum 50 years for the full utilization of Thorium in reactors. Presently, monazite is considered as the source of thorium. Instead the mind set needs to be changed to recognize monazite as the main source of Rare Earth Elements and consider thorium as a byproduct.
Till the MMDR amendment in 2015 and AMCR 2016 rules were implemented, private mining companies were operating in India. Presently, IREL and Kerala Metals and Minerals Limited (KMML) are the companies engaged in mining of beach sand minerals. In addition, IREL is processing monazite to produce mixed rare earths. IREL has a plant capacity to process 10,000 tpa of monazite mineral, but reached only 60% capacity so far. Part of the mixed rare earths is processed by Toyutsu corporation, a Japanese company in India to produce individual rare earth elements for their further use. Part of the mixed rare earths is processed by IREL for separation of individual REEs, but so far the anticipated purity and capacity are not achieved. India possesses significant reserves of Ilmenite, Garnet and Monazite, a rare earth mineral ( Table 1), but these resources remain grossly underutilized with the production to reserve ratio ( PRR) being a meagre 0.0008 % when compared to global PRR of 0.01% . India is stuck in this paradox and must leverage its plentiful resources to transform into a major global player.
Presently, in spite of having world’s third large deposits of BSM, India is an importer of ilmenite, zircon, rutile and entire REE based components, resulting in a huge foreign exchange drain.
- SPIN OFF IN MEETING THE REE REQUIREMENT INDEGENOUSLY:
India has to produce and process around 50,000 tpa of monazite in the country to meet the indigenous demand for REE. At this rate, the monazite available in the country will last for more than 200 years.
Processing the BSM deposits for monazite recovery will result in the production of other minerals like ilmenite, rutile, zircon, garnet and sillimanite and also open up multifarious value chain operations in the country. The following are the value chain possibilities for the BSM.
BSM minerals value chain: By mining and separation of the BSM deposits, individual minerals are produced which are further value added as per details below:
- Garnet can be used as such and after powdering for sand blasting, water jet cutting, filtration, glass polishing and lapping.
- Ilmenite have the value chain in the production of TiO2 pigment, titanium metal and TiO2 nanomaterials. The applications are Paints, coatings, plastics, paper, ink, fibre, specialty chemicals, foods, cosmetics, pharmaceuticals, aerospace, defense, corrosion resistant alloys, in dye-sensitised solar cells, an arsenic removal agent, cancer treatment and pollution absorbent cement.
- Rutile in addition to be used in welding electrodes directly has a value chain to produce TiO2 and can be used for all the applications mentioned for ilmenite.
- By processing monazite mineral, mixed rare earth compounds are produced from which high purity individual rare earth elements are extracted. The individual rare earths are converted to RE metal for making alloys from which magnets are produced. From individual rare earths, other REE based products are made for industrial use.
Beach sand minerals associated with monazite and their derivatives find diverse applications in day to day use as well as strategic and high tech applications as indicated below :
| Sl. No | Mineral | Mineral products | Applications |
| 1. | Ilmenite | TiO2 pigment
Titanium metal TiO2nano materials |
Paints, coatings, plastics, paper, ink, fibre, specialty chemicals, foods, cosmetics, pharmaceuticals, aerospace, defence, corrosion resistant alloys, in dye-sensitised solar cells, an arsenic removal agent, cancer treatment and pollution absorbent cement. |
| 2. | Rutile
Leucoxene |
TiO2 pigment | Welding electrode and all the above-mentioned applications |
| 3. | Zircon | Zircon powder
Zirconium chemicals Zirconium metal |
ceramics, foundry and investment casting, refractories, fused zirconia, abrasives and ceramic pigments, heat exchangers, reboilers, evaporators, reactor vessels, pumps, condensers, valves and piping, zircalloy tubes for holding the uranium pellets for nuclear plants. |
| 4. | Garnet | Garnet powder | Sand blasting, water jet cutting, filtration, glass polishing and lapping. |
| 5. | Sillimanite | cement, ceramics, glass making, metal smelting, refinery and treatment, tar distillation, coal carbonization, chemical manufacture and iron foundries. | |
| 6. | Monazite- contains 65% rare earths, 0.2%U and around 8-10% Th | (i)Rare earth elements and several products like
a.Permanent magnets b. Phosphors c. metal alloys d. catalysts e. ceramics f. polishing powders f. glass additives
(ii) uranium & thorium |
TV sets, cancer treatment drugs, camera lenses, battery electrodes, hydrogen storage, catalytic converters, coloured glass and steel production, super strong magnets, welding goggles, lasers, microphones, electric motors of hybrid automobiles, nuclear reactor control rods, fluorescent glass, shielding in nuclear reactors, fuel cells, sonar systems, commercial lighting, hard disk drives, transducers, signal amplification for fiber optic cables, high temperature super conductors, petrol refining, LED light bulbs and integrated circuit manufacturing, automobiles, bicycle, cosmetics, cell phones, solar panel, stationary materials, watches, wind turbines, aerospace, ornaments, tooth brush and paste, toilet seat, soap, clothing, trains, and supplementary tablets.
Uranium and thorium are present and future nuclear fuels. |
- PROPOSED SCALE OF OPERATION:
As monazite co-exists with all these minerals, during mining and producing 50,000 tpa of monazite to meet the REE requirement of the country, the following minerals also will be produced.
| Sl.No. | Mineral | Unit | Quantity |
| 1. | Ilmenite | Tonne | 25,00,000 |
| 2. | Sillimanite | Tonne | 17,00,000 |
| 3. | Garnet | Tonne | 7,00,000 |
| 4. | Zircon | Tonne | 1,40,000 |
| 5. | Rutile | Tonne | 1,20,000 |
The financial and socio economic benefits of producing and processing of 50,000 tpa of monazite and value addition of 25% of the ilmenite to meet the TiO2 requirements of the country with value chain for the minerals will be as follows:
- Capital Employed : Rs. 20,000 crores
- Turnover : Rs. 19,600 crores
- Revenue to states : Rs. 6,000 crores
- Direct manpower : 28,500
- Indirect labour : 35,000
This will also result in import reduction, dependence on China for imports, self-reliance and help the “Atmanirbhar”.
- MINING PLOICY CONSTRAINTS:
The issue is whether IREL or any other government entities will alone be able to set up the necessary facilities for this large scale of mining, mineral separation and value addition. Even in 1998 Beach Sand Policy, it was recognized that with government sector alone, the expected development of the sector was not possible and the policy recognized that Private sector participation was essential for the development of the BSM sector. Based on the track record of IREL over the last seven decades, it may not be possible to become self-sufficient in REEs with government companies alone and private sector participation must be encouraged to fast track the development of this sector to avoid dependence on China.
The amendment of MMDR Act 1957 in 2015 and the introduction of AMCR 2016 for these minerals, has totally denied the opportunity for private players in this sector. Even existing players had to close down their operations. Some of the clauses in the MMDR Act and AMCR 2016 rules, requiring immediate attention are:
- a. MMDR Act 1957- amendment 2015: classification of Beach sand minerals:
In the MMDR Act 1957, Ilmenite, Rutile, Zircon, leucoxene and Monazite were classified as Atomic minerals and placed under Part B of First schedule, since these minerals were categorized as “Prescribed substances “ in the Atomic Energy Act. However, from 1-1-2007 all these minerals except Monazite were delisted from the list of Prescribed substances and the Ministry of Mines was approached to delist all these minerals from the “Atomic Minerals”. However, this was not done and in the MMDR Act amendment 2015, all these minerals still continue as Atomic Minerals. Further, vide notification dated July 11, 2016, an item 12 inserted in Part B in the First Schedule states “Beach sand minerals that is economic heavy minerals found in teri or beach sands which include ilmenite, rutile, leucoxene, garnet, monazite, zircon and sillimanite “. This notification including Garnet and Sillimanite in Part B in the First Schedule is an illogical and retrograde action and the Government must make legislative changes to remove all beach sand minerals except monazite from Part B under Atomic Minerals and all these minerals except Monazite maybe classified as Beach sand minerals (Part C of first schedule as proposed in the draft MMDR Act in 2011) and a separate beach sand minerals concession rules may be brought in along with a monazite policy as earlier proposed by DAE.
- b. Atomic Minerals Concession Rules (AMCR )2016: The newly introduced AMCR 2016 proposes to reserve all BSM deposits containing more than 0.75% monazite in the THM for government owned corporations. This is now made as 0.0%, which totally denies opportunity for private sector in the BSM sector. This needs a relook, as with the government sector alone, BSM sector operations for producing the required REEs in India is not possible and the private sector needs to be encouraged in this sector The AMCR 2016 needs revision as otherwise in its present form denies opportunities for the private sector. All the minerals in the BSM assemblage excluding monazite are clearly non-atomic. These rules which are aimed at controlling the mining and processing of monazite are in effect restraining the utilisation of the other minerals and curbing development of the entire beach sand minerals industry. Further, monazite contains 65% high value rare earths which are non-atomic besides 3% uranium and 8-10% of thorium. The government must revisit these rules and make positive changes to enable and encourage mining and processing of all the beach sand minerals including monazite and provide a level playing field to both public sector and private sector miners in the interest of the national requirement of REEs. The Government must adopt a pragmatic and balanced approach so as to enable BSM development with adequate safeguards to address the safety and security concerns around monazite. The mineral monazite needs to be considered as a rare earth resource than a thorium reserve as REES are the need of the day.
- The BSM comprises an assemblage of all heavy minerals and the lessees must be permitted to mine and separate all minerals which will maximise mineral development. We must utilize these valuable mineral resources now for the economic development of our nation, as otherwise with current innovations in technology and development of alternate materials, these minerals resources may become worthless after few years.
- These minerals occur along the coastal tracts and beaches covering both government and privately owned lands. These lands are being diverted for other purposes including housing which will make it impossible for mining at a later stage.
- BEACH SAND MINERALS – WAY FORWARD TO UNLOCK RARE EARTH VALUES IN THE COUNTRY
The National Mineral Policy is aimed at maximizing mineral development, attracting foreign direct investment and bringing in latest technologies into mineral production and further value addition. The present government is focused on industrial development and mining is one of the core sectors that drive industrial growth and GDP. The Beach sand minerals resource is a classic example of an underutilized mineral asset, wherein India has ample world class mineral resources but still forced to import these very same mineral products. Immediate reforms are necessary to overcome this paradox and to make India self-sufficient and self-reliant in BSM based products. Towards this goal, the government may bring in legislative changes to make the BSM mining policy development oriented, investor friendly and improve the ease of doing business. The present Government initiated the “Make in India” programme and has liberalized the rules in several sectors including Defense which has attracted fresh investments and accelerated industrial growth and GDP. The Government should provide the same impetus to the BSM sector with industry friendly policies to “Mine in India” and “Make in India” for these BSM minerals and value-added products. The following points may be considered as guidelines for development of this sector in order to develop the REE industry in the country.:
- The beach sand minerals including monazite may be classified as a separate group under Part C of first schedule as proposed in the draft MMDR Act in 2011).
- All the minerals other than monazite may be removed from the list of prescribed substances and atomic minerals.
- Separate mineral concession rules may be framed for these minerals safeguarding monazite, thorium and uranium and the concept of threshold value of monazite may be done away with providing level playing field for government sector and the private sector.
- Encourage Private sector participation in BSM production and value addition.
- All minerals other than monazite may be allowed to be exported as was done prior to 2005 with a simple method of getting a monazite certificate from the regulatory authorities and the present system of canalization through IREL, a competing producer shall be done away with.
- Interested miners may be allowed to process monazite to produce rare earths with a condition that the thorium and uranium values shall be handed over to the government free of cost.
- At least 25% of the ilmenite produced must insisted be processed in the country to produce value added products like synthetic rutile or titanium dioxide.
- If possible, zircon also may be value added in the country.
- All the regulatory requirements in the national interest shall be entrusted to an autonomous body like Atomic Energy Regulatory Board. A separate body can even be made exclusively for this.
- WORLD SCENERIO TODAY:
The major producer of rare earth elements and rare earth based components in the world is China. At one point of time, China produced more than 90% of the rare earths produced around the world. When China denied supplies to Japan, other developed and developing countries started to develop their REE sector to be self- sufficient. It may be noted that USA had increased their REE production by 44% in 2019 over their 2018 production. Many of these countries are also developing the end products containing REE for direct use in the engineering and other industries. The present world trend is to free their dependence on China for the REEs and REE based products. This becomes all the more important with the green energy sector like wind turbines, solar power and electric vehicles. It is to be noted that all the developing and developed countries are planning to produce the REE based components for their internal use and no surplus is expected to be established in any country other than China.
- INDIAN SCENERIO TODAY:
India, after being in REE processing for the last seventy (70) years is only at the primary stage of mixed rare earths production which will not even meet the 20% requirement in the country. Commercial production of individual REEs of required purity is yet to be established and further value chain to metal to powder to alloys to magnets and other products containing REEs in the commercial scale is still a dream in India. All the industries in India using REE based components are only importing and major source at present is China, as no other country in the world seems to have surplus. India has to fast track the development of REEs and REE products as otherwise “India will be totally dependent on China for years together for the REE products, which is not in the country’s interest considering the present situation.”
- CONCLUSION:
India has to wake up to the reality where the country is now to meet the various development plans and take suitable decision to fast track the REE development in the country by involving private sector in BSM mining, monazite processing and production of REE based products in the country. The advantage of private sector is that they have financial and technical capabilities in all these activities and where required, they can bring in technical capabilities easily and in a faster way. Private sector will also be able to produce the products at comparatively lower cost. This will make our Honourable Prime Minister’s “Make in India” programme a reality and build a “self- reliant India”.
Author: The author is an engineering graduate from Indian Institute of Technology, Chennai, with a post graduate engineering degree from University of Rochester, USA. From 1970 onwards, he is in the beach sand minerals industry both in public and private sector in India and abroad, having experience in mining, mineral separation and value addition projects for ilmenite, zircon and monazite minerals and still continuing his service in these fields.
References:
- “Chinese dominance over rare earth elements and India’s critical dependencies” by Dr. Amit Tripathi and Lt. General. Rameshwar Roy.
- “The production of rare earths: Why India failed” – Dr. Rahul Nath Choudhury , South Asia Journal.
- “ India’s Rare Earths Industry: A case of missed opportunities” -Economic and Political Weekly Vol L-1, No.3 of 16-01-2016.
- Indian Rare Earths Industry: Need and opportunity for revival and growth – March 2018.
- Rare Earths : A review of landscape
- NRS Energy and sustainability, Voume 5 2018.
- Report on India’s Renewable Electricity Roadmap 2030: Towards Accelerated Renewable Electricity Deployment.
- Supply of Rare Earths Elements to the Wind Turbine Industry; Research Note:02/2020.
Annexure-1
CALCULATION OF RARE EARTH REUIREMENTS IN INDIA BY 2030
| Sl. No | Description | Unit | Quantity | Remarks | |
| 1. | Wind Power | ||||
| a. | Annual Addition of wind power contemplated | GW | 10 | Ref:1 | |
| b. | REE requirement per MW | kg | 230 | Ref:2 | |
| c. | Annual REE requirement for wind energy | tonne | 2300 | ||
| 2. | Electric Vehicles | ||||
| a. | Total Vehicles in 2019 | million | 31 | Ref:3 | |
| b. | With an annual increase of 5% requirement, the vehicles in 2030
Two wheelers (79%) Three wheelers(4%) 4 wheelers passenger vehicles (14%) Buses and Goods vehicle (3%) |
Million
|
36.5
29 1.46 5.1 1.1 |
Ref:4 |
|
| c. | REE requirement per vehicle
|
kg |
0.3 0.4 7 10 |
Ref:5 Ref:6 |
|
| REE requirement for 30% vehicle penetration in 2030 | |||||
| a. | Two and Three wheelers | tonne | 2944 | ||
| b. | EV passenger vehicle | tonne | 10710 | ||
| c. | Non-EV passenger vehicle | tonne | 1428 | ||
| d. | Buses and Goods vehicles | tonne | 330 | ||
| Total REE for automobile sector by 2030 | tonne | 15418 | |||
| Total REE requirement for wind mills and EVs | tonne | 17718 | |||
| Estimated requirement for all other uses | tonne | 7282 | Ref:7 | ||
| TOTAL ANNUAL REE REQUIREMENT IN THE COUNTRY
BY 2030 |
tonne | 25,000 | |||
Ref:1 – Ministry of New and Renewable energy year end review 2018
Ref:2 – European Wind Energy Association
Ref:3 – Indian Automobile Industry Analysis by India Brand Equity Foundation
Ref:4 – NITI AYOG – Zero emission vehicles (ZEVs) : Towards policy framework
Ref:5 – An assessment of rare earth content of conventional and electric vehicles
Ref:6 – Four things you should know about magnets for EVs- Electronic Design Magazine 2017
Ref:7 – As there is no assessment for REEs in the country had been done so far, it is assumed that for other applications 30% of the total will be required.
Mining Sector can create 5 Crore Jobs – Protect Mining Industry – FIMI appeal to Prime Minister
Except Water, Food, Wood and Wood products all others are made from minerals. So Mining Industry is important for the human being. It generate not only crores of employment, feed raw material for all the industries earn valuable foreign exchange to our nation in addition to huge revenue by way of tax – FIMI’s press release requesting PM to protect mining industry.

MINISTRY OF MINES NOTIFICATION GSR 126(E) DT. 19.02.2019 AND GSR 134(E) DT. 20.02.1019 are against the National Mineral Policy notified by Government
As per the above notifications, the private mining lessees for beach sand minerals will have to relinquish their rightful mining leases. No fresh mining lease could be granted for beach sand minerals, for any private players. The Vision of the National Mineral Policy (NMP), 2019, is while the Government Agencies will continue to perform the tasks assigned to them, for Survey and Exploration, whereas the Private Sector would be encouraged to take up Exploration activities. The aim is to promote Domestic industry, to reduce Import Dependency and to feed into Make in India initiative. Moreover the MoM Notifications GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 are totally deviating, contrary and conflict, to the Vision of NMP 2019.
National Mineral Policy, 2019, insists that the regulatory environment is conducive, to ease of doing business with simpler, transparent and time-bound procedures, for obtaining clearances. Since mining contributes significantly to state revenues, there is a need for an efficient regulatory mechanism with high penetration of e-governance systems. Mining contributes significantly to employment generation, thus, there shall be a keen focus on gender sensitivity in the mining sector at all levels. But the above notification is completely against the National Mineral Policy, 2019, notified by the MoM, Government of India.
There is a rumor that, the above said notifications are issued in order to take action against, Illegal Mining complaints against Private Mining Lessees. It is pertinent to point out here that, there are several procedures to penalise and punish the illegal miners, in accordance with the law and in case, if the lessee is punished, then automatically the leases will get terminated. Whereas in this case, only based on the complaints, these Notifications were issued. This is absolutely against the National Interest.
Due to business rivalry, the complaints were framed by a section of people, allegation against all other Private Beach Mineral mining lessees. In several occasions, the State and Central Govt. Authorities carried out Inspections, along with Executive Magistrates and submitted Inspection Reports that, the alleged complaints are false and baseless. Such Inspection Reports are readily available in Ministry of Mines file number 16/90/2007-M.VI (Part-IV) and 16/13/2013-M.VI. The Tamil Nadu State Govt. vide their letter No. 7810/MMD2/2011-1 dated 23.07.2013, also sent the Detailed Report stating that, all the complaints are False and the allegations were made, only with Business Rivalry.
It is pertinent to point out here that, from the year 2013 onwards, the entire mining operations were stopped and the lessees are permitted only to process the existing mined minerals stocks. So, the present Notification is absolutely unwarranted and unjustified.
Our Country have significant Reserves of Ilmenite, Garnet and Monazite containing Rare Earths (Table 1), but these Resources remain grossly under-utilized with the Production to Reserve Ratio (PRR) being a meager of 0.0018%, when compared to Global PRR of 0.01%. India is stuck in this paradox and must leverage its plentiful Resources, to transform into a major Global Producer.
| S.No. | Mineral | World Reserves
Million Tonnes** |
Reserves in India
Million Tonnes* |
Percentage share of Global Reserves |
| 1 | Ilmenite | 1400 | 593 | 35 |
| 2 | Garnet | 420 | 168 | 40 |
| 3 | Sillimanite | NA | 226 | NA |
| 4 | Zircon | 243 | 34 | 14 |
| 5 | Rutile | 310 | 31 | 10 |
| 6 | Monazite | 17 | 12 | 71 |
Table 1 – (*Indian figures are based on AMD, Hyderabad Report. **World figures are based on USGS Report for the year 2013)
Beach Sand Minerals and their Derivatives find Diverse Applications, in day to day use as well as, Strategic and High-tech Applications. With proper Encouragement and Recognition from the Government for the BSM sector, this could be a Mega Opportunity, for a successful “Mine In India” and “Make In India” Programmes.
The BSM Sector was brought under the controlled regime, due to the presence of the mineral Monazite. It is pertinent to note that until 1998, this sector was restricted only to Public Sector Companies and it was observed, there was no Substantial Developments in the country. Recognizing the untapped Potential of the Beach Sand Minerals sector, the Department of Atomic Energy (DAE) announced the Policy on Exploitation of Beach Sand Minerals in 1998 and opened up this sector to wholly Indian Owned Private Companies. This brought participation and Significant Investments in the Country by Private Sector Companies. Since the Entry of the Private Sector in the BSM Industry, the Production of Beach Sand Minerals has substantially increased and the Export Value has increased from Rs. 35 Crores in 1998 to over Rs 5000 Crores in 2016. The Private Sector Producers have spearheaded not only Mineral Production, but also invested in the Value Chain.
The current Estimated Production and Demand figures for the Minerals and Value-Added Products of Ilmenite (Table 2) amplify the incongruity in Domestic Production, despite ample Resource Potential.
| Mineral/ Product | Indian production (lakh tons) | Indian Demand (lakh tons) | World Production (lakh tons) | World Demand (lakh tons) | Average Growth Rate / Year | India Scenario | |||||
| Garnet | 7 | 0.15 | 12 | 12.5 | 5-8% | Exporter | |||||
| Ilmenite | 11 | 1 | 175 | 190 | 3-5% | Exporter | |||||
| Zircon | 0.4 | 0.8 | 15.5 | 15.5 | 3-5% | Importer | |||||
| Rutile | 0.25 | 0.45 | 9.75 | 9.75 | 5-8% | Importer | |||||
| TiO2 Pigment | 0.50 | 2.20 | 72.0 | 70.0 | 3-5% | Importer | |||||
| Rare Earths | Negligible | RE products imported | 1.7 | 1.6 | 5-10% | Importer |
Table 2 (* These figures are estimated based on the production figures available with the producers worldwide and port statistics on import and export of the minerals and their products when it was at the peak).
It is a pity to mention that the present “Make in India” Government is driving this BSM Sector, by Importing our requirements and ignoring all the Financial, Technical and Managerial Resources, which are indigenously and cheaply available.
The fall out of the notifications will be as follows:
- Foreign Investors will loose their faith over our nation for investment, as these Notifications amounts to termination of existing Mining Leases also. So, they feel insecurity to invest in India.
- The Beach Sand Policy of 1998, invited Private Sectors to participate and make Investments in the mining, mineral separation and value addition to Ilmenite. Pursuant to this Policy, Private Miners made significant Investments, which amounts to acquire Mining licenses and set up Mineral Separation facilities (with huge investments). Private miners thus not only enhanced the growth of the mineral sands industry, by earning significant foreign exchange of more than Rs. 3,000 Crores per year through exports, but also provided direct and indirect employment for more than one lakh persons. Thus the participation of Private Miners in the BSM Industry, has created a significant impact in socio economic development of the regions, which were otherwise very backward.
- Private miners have also made significant investments in Value Addition of Ilmenite Mineral, for Production of Titanium-di-oxide by meeting part of the India’s Domestic need and reducing the Import burden.
- Before entry of the Private Players, these Garnet sand were dumped into the sea, as rejects by the Government Companies.
- It is pertinent to point out here that, before the entry of Private Players, our Country was far behind in achieving the Garnet Production and Export, among the world. After entry of Private Players, India became No.1 Producer and Exporter of Garnet. The achievement is well published in Roskil International magazine with graphical representation.
- Because of these Notifications, the 30 years earned World Market by Indian Producers, will be lost forever which could not be regained by Indian producers in future.
- Our Country will permanently loose the foreign exchange earnings, of more than Rupees 3,000 Crore per year.
- Indian Titanium producers will be bound to import the raw material from the overseas countries, when we are already blessed with abundant resources of 1/3rd of the total world reserve. (Please refer DAE, Joint Secretary Speech and High Level Committee report of Nidhi Aayog.)
- These minerals are Replenishable Beach Placer deposits. Unless it is not utilized within a stipulated time, it will become a National Waste and there is possibility for these minerals getting shifted to neighbor countries. These minerals get deposited by the action of wind, will be used for domestic purpose and once that is shifted to neighbor country, which is loss to our Nation and the State.
- Our Indian Private Mining Companies has made huge investments, to Upgrade Quality of Products, to meet the International standards, by which India has gained No.1 Position in the Global Garnet Market, continuously for the past 10 years. Now, these Notifications will reverse our Nation’s No.1 Position.
- The allegations and illegal mining complaints about BSM Industry were raised from the year 1997 onwards. Meanwhile all the complaints were proved as False and Baseless, by the State Government Officials, the Central Government officials, the Joint Inspection team and the Honourable High court and as well as the Government Authorities. Now only one PIL is pending with the Honourable High Court of Madras for long time, since the petitioners could not be able to produce, valid documentary evidence to support for illegal mining. As such there was no illegal mining happened, the case is pending before the Court. For example : One of our association member M/s. V.V. Mineral has paid royalty for 98 Lakhs of M.Tons and transported the same with valid transport permit, where as they have exported only about 52 Lakhs of M.Tons of heavy minerals. How this can be proved that illegal mining was happened?? In case the illegal mining is proved and then the concerned Private mining company is ready to, get penalised under section 21 of MMDR Act.
- Already a request was made to the Department of Atomic Energy, to facilitate posting of their officials, in all the Sea Ports, for carrying out Inspection & Cross Examination, for Radioactive materials if any, in the Beach Sand Minerals prior to Export. The DAE Minutes held on 15.07.2013 will establish the same.
- All sea ports and airports were well equipped with latest Gadgets and equipments to monitor the movement of Radioactive Material and the equipments are inter-linked with sufficient number of Police Stations. Hence, it is not at all possible for export of any Radioactive Material. The reply to Parliament (Lok shaba) question No. 896 dated 20.12.2017 will establish the same.
- The set up already made by Private Miners, towards Value addition of the mineral Ilmenite has to be either closed down or import Ilmenite at higher cost. Perhaps, this will make their product uncompetitive compared to the titanium dioxide product imported from China.
- Beach Sand Mineral mining is Eco-friendly mining. It provides, huge number of employment, for both uneducated people and as well as educated people. In the beach mineral industries of Tamil Nadu, more than one lakh people get employment, through our association members. Being this area located in rain shadow area, agriculture activity or any other Industry were not developed. Whereas, the BSM Industries help these area people to live their life happily. Now, they are lost their jobs and starving for their day to day activities. In fact this has affected the education of many children and children have lost their education, due to the parents who lost their job from these Beach Sand Mineral Industry.
- We are proud to express that one of our Indian Private Beach Sand Mineral Producer have achieved, to make our India to reach No. 1 position in Producer and Exporter of Garnet Mineral and as well as to reach No. 2 position in Producer and Exporter of Ilmenite, in the world. However, by these Notifications, our country will loose the above credit.
- The main moto of National Mineral Policy and MMDR Act, for Exploration of Minerals by Government Agencies with the aid of NMET and subsequent Exploitation of Minerals by Private Sectors. But the latest MoM Notifications, totally deviating form the Policy and not having any relation or reference to the Policy. It will also have remarkable impact on Investments made by existing Private Mining Companies, Marketing network that developed in the past 3 decades, Millions of Foreign Exchange Revenue to our Nation, Employment Opportunities to thousand of people. Moreover, this will ease the Foreign Companies to utilize this golden opportunity, against the Indian Private Mining companies in the International Market. Thus our Indian Companies reputation will get spoiled in the International Market, which can not be regained, in the next 40 years.
- The aim of the National Mineral Policy, 2019 is to “Encourage Extraction of the Replenishable Deposits of Beach Sand Minerals for improved economic growth”. Whereas, these Notifications are irrelevant and extraneous to the National Mineral Policy, 2019.
- The efficient and trained manpower in the BSM industry will become obsolete. Perhaps, their expertise and experience will not have any value in the new filed.
- These Beach Sand Minerals and their derivative products, which have major Applications in Manufacturing, Electronics, Medical, Clean Energy and Defense have significant Market Demand and Revenue Generation Potential in today’s Economic Scenario. This opportunity to beneficially use these Resources may be lost as technological innovations look for alternate and substitute materials which will render these Mineral Resources of no value in the long term. This will be a National Loss and Poor utilization of the Country’s Natural Resources.
- The Capital and Infrastructural facilities set up by these Private Mining Companies will also become infructuous and they are forced to end up in huge losses to an approximate value of more than 10,000 crores of rupees as the investments become useless, due to these Impugned
- The Final Products and also the Semi Processed Minerals, having worth of hundreds of crores of rupees, will become useless, resulting in huge financial losses to the Private Mining Companies .
This drastic action, will totally eliminate the Private Sector from Beach Sand Minerals Industry. This action is similar to cutting off the hand, in order to cure the wound in the finger.
Flouting of Procedures in the Mining Sector, is not a new thing our country and the issues need to be resolved, by stringent control and not by total eradication of Private Mining operation. It may be noted that similar flouting of rules, in the Iron Ore Mining Sector were resolved peacefully. Hence similar steps need to be taken in this BSM sector also and Private sectors may be allowed to participate in Mining and Mineral Separation of BSM, for development of the Nation.
It is pertinent to point out here that, all over the world, Monazite is easily available and there is no demand for that. Only difference is In India the Monazite is available in better quality. So the Govt. Company, itself stopped their Monazite production w.e.f. 2004. Reply of Parliament question 420 dated 26.11.2014 will establish the same. Moreover, all over the world, none of the country including India, use Thorium available in Monazite for any purpose as, it is not a fissile material. But research is going on in India to use it in 3rd Stage Nuclear Programme may be after 2050 only. Even now also, Monazite cannot not be exported as, it is in the negative list and storage of monazite tailings either by way of back filling or stored in separate trenches under the institutional control of Government, is managed by Atomic Energy Regulatory Board (AERB) in accordance with the law.
We have no objection to take stringent action against illegal miners in accordance with law. But completely stoppage of Private Beach Mineral Producers will amounts our nation will lose valuable Foreign Exchange, Trust Worthiness for Investment, Revenue to the State and Employment Opportunity. Above all this amounts to loss of the naturally deposited Mineral Wealth.
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