India Boosts Rare Earth Mineral Exploration Amid Global Demand
In a recent update to the Rajya Sabha, the Minister of Coal and Mines, Shri G. Kishan Reddy, revealed the ongoing efforts of the Atomic Minerals Directorate for Exploration and Research (AMD) in exploring and enhancing resources of rare earth group elements across various geological terrains. These activities are aimed at both coastal and inland placer sands, indicating India’s strategic push to secure a foothold in the critical minerals market.
As of January 28, 2026, the AMD has identified a total of 136 deposits of Beach Sand Minerals, containing an estimated 13.15 million tonnes (Mt) of monazite. This mineral, rich in Thorium and rare earth elements, is primarily located in the coastal regions and diverse inland areas spanning Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, Gujarat, Jharkhand, and West Bengal. Collectively, these deposits harbor approximately 7.23 Mt in-situ Rare Earth Oxide resources.
Additionally, the AMD has cataloged three deposits of rare-earth minerals within hard rock formations located in Rajasthan and Gujarat, which account for 1.29 Mt of in-situ Rare Earth Oxide resources. Despite the significant presence of rare earth resources, the mining, processing, and refining of these minerals remain under strict government oversight due to their association with radioactive elements like uranium and thorium.
India’s capability in the rare earth sector is commendable, with the nation being one of the few globally equipped with the necessary technology and a skilled workforce. However, commercial exploration has been constrained by limited technological advancements and the absence of a robust infrastructure for mid-stream and downstream processing.
To address these challenges, the Mines and Minerals (Development and Regulation) Act of 1957 has been revised through the MMDR Amendment Act, 2023. This amendment allows the Central Government to auction blocks for 24 essential minerals, facilitating exploration and mining. To date, the Ministry of Mines has successfully auctioned 46 critical mineral blocks, which includes those holding rare earth elements.
In a significant move, the Union Cabinet established the National Critical Mineral Mission (NCMM) on January 29, 2025. This initiative aims to ensure a sustainable supply of critical minerals, covering all facets from exploration and mining to processing and recycling of end-life products.
Furthermore, regulatory reforms have simplified the process for obtaining environmental and forest clearances for critical mineral projects. These reforms allow for compensatory afforestation on degraded land and exempt critical mining projects from public hearings.
In a noteworthy development, the Union Cabinet also approved a scheme in November 2025 to promote the manufacturing of Sintered Rare Earth Permanent Magnets. With a substantial financial commitment of Rs. 7,280 crore, this initiative aims to establish a manufacturing capacity of 6,000 Metric Tons per Annum (MTPA), paving the way for India to become a vital player in the global market for rare earth permanent magnets.
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