By IANS
New Delhi : Even as the Indian government grapples with the complexities of the civilian nuclear deal with the US, the cabinet is all set to approve the mining of titanium bearing minerals, officials said.
The proposal is to permit, with prior government permission, up to 100 percent foreign equity in mining and mineral separation of titanium bearing minerals and ores, value addition and certain integrated activities.
But such permission will be subject to sector-specific regulations (as also the provisions of the Mines and Minerals Development and Regulation Act, 1957) in the present policy on foreign direct investment in atomic minerals, officials said.
The commerce and industry ministry’s proposal after through consultations has been pending for sometime now and came up for review in May this year. Now it will feature as part of an overarching policy to review foreign investment across multiple sectors, officials explained.
India has one sixth of ilmenite (titanium bearing mineral or ore) and most of it is concentrated in Tamil Nadu, along the south eastern coast from Cuddalore to Vedaranyam.
Titanium is unique because of its high strength-to-weight ratio. While it is as strong as steel, it is also 45 percent lighter.
Analysts reckon that titanium can be used as a catalyst in the crucial first phase to trap hydrogen with a particular class of hydrogen storage materials. It is also very popular in the aerospace industry.
The present policy is governed by the Beach and Sand Minerals Policy of the Department of Atomic Energy since ilmenite was included as an atomic mineral. Given the furore over iron ore reserves being handed over to South Korean steel giant Posco in the past, the government is taking adequate measures for titanium mining.
Officials said foreign investment of up to 100 percent will also be allowed for mineral separation, but only if the value addition facilities are set up within India along with the necessary technology transfer.
Even more vitally, disposal of tailings shall be carried out in accordance with regulations framed by the Atomic Energy Regulatory Board such as Atomic Energy Radiation Protection Rules 2004 and Atomic Energy Safe Disposal of Radioactive Wastes Rules 1987.