Centre studying impact of Karnataka’s proposed mining tax: Union Minister

New Delhi: India will appoint nodal officers in around 20 countries including Australia, Argentina, Zambia and Tanzania to facilitate collaboration in the critical mineral sector, Union Minister for Coal and Mines G Kishan Reddy said on Thursday.

Addressing a media briefing, Reddy said that the centre is studying the impact of Karnataka’s newly proposed taxes on the mining sector. “We need to have a stable tax regime. State governments should not increase taxes like that,” he said.

Under the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, passed in December last year, the Karnataka government seeks to sharply increase taxes on mining in the state. The state’s Governor Thaawar Chand Gehlot has sent back the bill to the government seeking clarifications on the matter.

At the briefing, Reddy said Indian private as well as public sector companies were exploring critical mineral assets in several countries. The nodal officers would liaison with the governments in respective countries and provide necessary support to the companies.

Mines Secretary V L Kantha Rao said Khanij Bidesh India Limited (KABIL) is exploring acquisition of critical minerals assets in countries like Australia, Argentina and Chile. KABIL is a joint venture company among Nalco, Hindustan Copper and Mineral Exploration and Consultancy Company (MECL). 

“There are also other countries like Democratic Republic of the Congo, Tanzania and few other countries where through our missions we are working on trying to get critical mineral assets for exploration and mining for Indian companies in those countries,” Rao said.

The centre will provide support to Indian public and private companies in acquisition of minerals assets under the National Critical Mineral Mission, which was approved by the cabinet last month with an outlay of Rs 16,300 crore and an expected investment of Rs 18,000 crore, focusing on areas including domestic production, recycling, overseas acquisitions, and R&D.

Reddy said the Ministry of Mines will launch the first tranche auction of exploration license blocks next month. The provision of grant of exploration license for critical and deep-seated minerals through auction was made through the Mines and Minerals (Development and Regulation) Amendment Act, 2023.

The minister informed that a State Mining Index will be introduced in this year to evaluate states on parameters such as regulatory environment, technical expertise, and sustainability practices. The State Mining Index is expected to be released in the second quarter of 2025.