India May Open Thorium Sector to Private Firms
India is considering allowing private companies to participate in selected parts of its tightly controlled thorium sector. The proposed changes are intended to strengthen critical mineral supply chains and support the country’s long-term nuclear energy programme.
Private Firms May Enter Thorium Sector
The government is examining options to permit limited commercial mining of coastal monazite sands for thorium extraction. It is also considering measures to shorten the time between mineral exploration and production.
Internal discussions have begun on possible policy changes, with a draft expected after consultations involving the power and mines ministries and other stakeholders.
Commercial mining of monazite is currently heavily restricted because it contains thorium and uranium, which are classified as prescribed substances for national security reasons. Indian Rare Earths Limited is presently the only authorised entity permitted to extract and process monazite in India.
India Holds Major Thorium Reserves
India is estimated to possess around 25% of the world’s thorium reserves. Approximately 13 million tonnes of monazite sands are located along the coasts of Kerala, Tamil Nadu, Andhra Pradesh and Odisha.
The government believes integrating thorium recovery with rare-earth extraction could reduce production costs and improve domestic access to both nuclear fuel resources and critical minerals.
Thorium Supports Nuclear Energy Target
Thorium is not directly fissile but can be converted inside a reactor into uranium-233, which can then be used as nuclear fuel. Accelerating research into this conversion process forms part of the proposed policy push.
India’s three-stage nuclear programme was designed to eventually use its large thorium reserves and reduce dependence on limited domestic uranium supplies.
The government aims to increase India’s nuclear power capacity to 100 gigawatts by 2047, with private investment and indigenous technology expected to support the expansion.
