India Starts Extracting Rare Earths from Mining Waste, Targets Supply from August

As part of India's race to secure rare earth elements (REEs), coal mines across the country are actively exploring REEs in their overburden (byproducts and waste), CNBC-TV18 reported.

Citing government sources, the report noted that while exploration of REEs is aimed at improving resource utilisation in open-cast mines, enhanced exploration will cover not just overburden from existing mineral-rich areas but also include coal mines and the petroleum sector.

This move came as part of India's broader plan to achieve self-reliance in critical minerals under the National Critical Minerals Mission (NCMM).

Chairman and managing director of Singareni Collieries Company (SCCL), N Balram told CNBC-TV18 that studies by the government-owned Non-ferrous Materials Technology Development Centre (NFTDC) have found one kilogram of Scandium plus Strontium in 15 tons of clay in the Sathupalli and Ramagundam open-cast mines. The supply of both these elements is slated to begin from August from both these mines, he added.

Scandium is commonly used in aircraft parts, fuel cells, and high-performance sporting equipment due to its strength and lightweight properties. Strontium, on the other hand, finds applications in making metal alloys, ferrite ceramic magnets, medical treatments, vacuum systems, and even in older cathode-ray tube (CRT) displays.

Government Doubles Down on REEs Security

India finds itself in a precarious position as its rapidly growing electric vehicle (EV) and defence industries hinge on rare earth magnets—vital components almost exclusively supplied by China. After China's strategic export restrictions on seven critical REEs, India is stepping up efforts to secure a reliable supply and mitigate possible disruptions amid global uncertainty.

In its Monthly Economic Review for May, the Ministry of Finance stated that the National Critical Mineral Mission (NCMM), launched in January 2025, is central to this strategy. With a seven-year roadmap running until 2030-31, the mission aims to secure critical minerals through 1,200 domestic exploration projects and support for overseas acquisitions by both PSUs and private entities.

To diversify supply sources, India is also expanding offshore exploration and forging international partnerships, including with Argentina and Australia.