Syllabus:

GS3: Distribution of key natural resources across the world (including South Asia and the Indian sub continent); factors responsible for the location of primary, secondary, and tertiary sector industries in various parts of the world (including India)

Context: 

The new Offshore Areas Atomic Minerals Operating Right Rules, 2025, notified by the government aims to regulate the exploration and mining of atomic minerals like uranium and thorium in offshore areas. 

More on the News

• The new rules notified by the Ministry of Mines, in coordination with the Department of Atomic Energy, as the Offshore Areas Mineral (Development and Regulation) Act, 2002, are aimed at unlocking India’s offshore atomic mineral potential and also lay down security and environmental safeguards. 
• The Department of Atomic Energy and the Atomic Energy Regulatory Board (AERB) will serve as the nodal oversight agencies, ensuring compliance with radiological safety and strategic protocols.
• It has restricted the sector to government entities and companies nominated by the Centre and mandated prior approvals for foreign contractors.   
• It will also regulate the award of exploration licenses and production leases for atomic minerals in the country’s territorial waters and Exclusive Economic Zone. 

New Offshore Areas Atomic Minerals Operating Right Rules, 2025 

These norms will apply only when atomic minerals like uranium or thorium are found in an offshore area, either alone or mixed with other minerals, but only if their concentration is above a certain minimum level, called the threshold value. 

• The threshold value is based on the percentage of atomic minerals in the ore.

Before declaring any block open for offshore atomic mineral mining, the central government will consult with at least 12 ministries, including the Ministry of Defence, the Ministry of Environment, Forest and Climate Change, the Ministry of Home Affairs and the Department of Fisheries under the Ministry of Fisheries, Animal Husbandry and Dairying, among others.

If the amount of atomic mineral present is below the threshold, then the area will be regulated under a different set of rules, namely the Offshore Areas Operating Right Rules, 2024. 

In India’s EEZ, only CPSEs or nominated agencies can get exploration or production licences, private firms need explicit nomination by the Centre. 

In case foreign domiciled entities or foreign entities or contractors, personnel, vessels or equipment are engaged or deployed, for undertaking exploration operations, prior approval shall be obtained from the Government authorities.

Moreover, Licensees must restore impacted marine and coastal areas within six months of project completion or licence termination to allow natural seabed rehabilitation, as per the rules. 

Foreign firms are effectively barred from direct participation unless subcontracted under highly restrictive guidelines, and only with prior security clearance from ministries including defence, home, and environment.

Under the rules, exploration will be allowed without a license, but only for notified government agencies.

Any later discovery of atomic minerals above threshold grades, as defined in alignment with the Atomic Mineral Concession Rules, 2016, must be reported to the Directorate of Atomic Minerals Exploration and Research (AMD). There is a possibility that post such reportage, there could be immediate reservation of the block for national use.

The government reserves the right to revoke or deny licenses if discoveries are deemed strategically sensitive or exceed the threshold grade. The Central Government has been empowered to directly acquire such sites. In such cases, compensation to original explorers may be provided based on incurred expenses, a mechanism expected to deter speculative activity by private parties.

Other Rules:

• Exploration and production plans should comply with the “Offshore Area Mineral Conservation and Development Rules, 2024”. 
• Periodic reports to AMD, environmental restoration, data sharing protocols, and deployment of tracking technologies on offshore assets has been made mandatory.

Atomic Minerals

• Atomic minerals are those containing elements used in the nuclear fuel cycle, primarily for nuclear energy production. 
• These include Uranium and Thorium, which are essential for nuclear power generation and also have other applications in various technologies. 
• Other important atomic minerals include Beryllium, Lithium, Niobium, Titanium, Tantalum, and Zirconium. 

Source: Business Standard

https://www.business-standard.com/economy/news/govt-nod-needed-for-foreign-contractors-in-offshore-atomic-minerals-mining-125071801312_1.html