India Accelerates Rare Earth Exploration And Value Addition

In a written reply, Union Minister of Coal and Mines G. Kishan Reddy said the Atomic Minerals Directorate for Exploration and Research (AMD), under the Department of Atomic Energy, is carrying out exploration of rare earth elements across coastal and inland placer sands as well as hard rock terrains in several geological domains.

As of January 2026, AMD has estimated 136 deposits of beach sand minerals containing about 13.15 million tonnes of monazite across states including Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, Gujarat, Jharkhand and West Bengal, with around 7.23 million tonnes of in-situ rare earth oxide resources. In addition, three hard rock deposits in Rajasthan and Gujarat hold an estimated 1.29 million tonnes of rare earth oxide resources.

Monazite, which contains thorium and rare earths, is classified as a prescribed substance due to its association with radioactive elements, placing its mining and processing under government control. India is among a handful of countries globally with capabilities in rare earth extraction and refining, although domestic resources are relatively low-grade and extraction is complex and capital-intensive.

To boost exploration and mining, amendments to the Mines and Minerals (Development and Regulation) Act, 1957, have enabled auctioning of blocks for 24 critical and strategic minerals. The Ministry of Mines has auctioned 46 critical mineral blocks, including rare earth elements, along with seven exploration licence blocks.

The Union Cabinet has also approved the National Critical Mineral Mission to strengthen the entire critical mineral value chain, from exploration and mining to processing and recycling. Regulatory reforms have been introduced to expedite environmental and forest clearances for critical mineral projects.

In November 2025, the Cabinet approved a scheme with an outlay of Rs 7,280 crore to promote manufacturing of sintered rare earth permanent magnets, targeting 6,000 tonnes per annum of integrated capacity and positioning India as a key player in the global rare earth magnet market.