Tata Steel Eyes Three-Pronged Strategy to Bridge Critical Mineral Gap, Reduce Dependency on Imports

The shortage of critical minerals can be addressed through three key methods, processing, co-product recovery, and extraction from e-waste, Pankaj K Satija, Managing Director of Tata Steel Mining Ltd told ANI, at the sidelines of an event organised by industry body FICCI in the national capital on August 28.

Elaborating on a three-pronged approach to address India's shortage of critical minerals, Satija stated that both government and industry are working together across three key areas."Both the government and industry are working on the three-prong approach. One is the virgin material, where the resources and results are there, how we can mine it and how we can process it," Satija confirmed to ANI.

According to the ANI report, the first approach requires tapping virgin resources through mining and processing. The government is bringing in expertise and systems to boost capabilities in this area. The second strategy includes recovering critical minerals as co-products from existing mining processes. For instance, minerals like nickel and chromite, often found as associated materials in overburden, can be extracted during mining operations. The third approach focuses on urban mining and e-waste recovery.

Due to widespread use of electronic appliances in both rural and urban areas, there is growing potential to extract critical minerals from discarded gadgets. Satija also emphasised in the ANI report that the narrowing rural-urban divide in digital device usage supports this strategy. Meanwhile, sector-specific skill councils, such as those for mining and green jobs, could collaborate to train youth in e-waste collection and mineral recovery.

On April 4, China imposed export restrictions on seven rare earth-related items, triggering supply concerns for countries across the globe including in India. As China dominates in global rare earth processing accounting for up to 90% of global separation and refining capacity, this sector remains vulnerable, as only few other suppliers exist.

In response, India launched the National Critical Mineral Mission (NCMM) in January 2025, with a budget of ₹16,300 crore and an expected ₹18,000 crore investment from PSUs. Additionally, the government is encouraging private companies to explore and mine critical minerals abroad to meet domestic demand. However, China has recently assured India of an unrestricted supply of critical minerals.

Why It Matters

India's reliance on imports for critical minerals poses risks to its technological and energy ambitions. The National Critical Mineral Mission (NCMM), launched with a ₹16,300 crore budget and an additional ₹18,000 crore investment from public sector undertakings, aims to address this vulnerability by expediting regulatory approvals for critical mineral projects and providing financial incentives for exploration. The mission also includes provisions for setting up mineral processing parks, promoting the recovery of minerals from overburden and tailing and creating a stockpile of critical minerals.

This initiative is crucial for ensuring the availability of essential materials for sectors such as electric vehicles, renewable energy, and defense, thereby supporting India's transition to a self-reliant and sustainable economy.