The Centre should come up with a policy roadmap to ensure the participation of mine developer-cum-operator (MDO) in uranium mining, a Parliamentary committee has suggested, amid concerns that India’s domestic uranium production may not be enough to meet the future fuel requirements of its indigenous pressurised heavy water reactors (PHWRs).
The panel also recommended that any MDO participation in the sector should remain under the strict oversight of the Department of Atomic Energy (DAE).
An MDO is a contractor engaged by the mine owner, typically a government or public-sector entity, to develop and operate the mine and undertake mining activities on its behalf.
The recommendation comes at a time when the country seeks to expand its civil nuclear power capacity from the current 8.7 gigawatt-electric (GWe) to 100 GWe by 2047.
India’s indigenous PHWRs use natural uranium.
And their fuel requirements are currently met through a combination of domestic production from state-owned Uranium Corporation of India Ltd (UCIL) mines and imports. Enriched uranium used in the two light water reactor (LWR) variants — Tarapur Nuclear Power Plant and Kudankulam Nuclear Power Plant — is entirely imported.
UCIL, which alone has the mandate to mine and process uranium ore in the country, operates multiple underground and open-pit mines with processing plants in Jharkhand and Andhra Pradesh, and sends uranium concentrate to National Fuel Complex (NFC) for fuel fabrication for reactors operated by state-owned Nuclear Power Corporation of India Limited’s (NPCIL).
“As per NPCIL’s capacity expansion trajectory, PHWRs alone could require approximately 5,400 tonnes U3O8 (uranium oxide, or yellowcake) per annum for about 25 GWe, while UCIL currently estimates catering to about 30% of this need,” the panel on public undertakings noted.
The panel said this would imply continued reliance on imports unless domestic uranium production is accelerated and supply sources are diversified.
‘Expedite acquisition overseas uranium assets’
The parliamentary panel also noted that India currently imports uranium from Kazakhstan, Russia, Uzbekistan and Canada, with the long-term supply contract with Uzbekistan valid until 2026.
The panel sought an update on the government’s plans to secure long-term uranium supplies from Uzbekistan beyond 2026.
It also recommended expediting the proposed UCIL-NTPC joint venture to acquire stakes in overseas uranium assets to diversify supplies and reduce exposure to supply disruptions and market risks.
“The Committee believes that establishing strategic uranium stockpiles, calibrated to refueling cycles and outage risks, is essential to sustaining reactor operations during supply disruptions,” it noted.
The panel sought a comprehensive report from the DAE on the timelines for the UCIL–NTPC joint venture and plans for future fuel sourcing and the proposed framework for MDO participation in domestic uranium mining under DAE oversight.
DAE also informed the panel that it is pursuing an amendment to the MMDR Act to allow a one-time extension of mining leases for uranium minerals by up to 10% of the existing lease area.
The proposed change is aimed at addressing instances where newly identified or deeper extensions of ore bodies extend beyond existing lease boundaries. Under the current framework, such extensions require separate leases and clearances, which can affect the techno-economic viability of projects, particularly for deposits located at depths beyond 600 metres.
‘UCIL’s uranium oxide production capacity to double’
According to the panel, Atomic Minerals Directorate for Exploration and Research (AMD) has established about 4,31,000 tonnes of in-situ uranium oxide resources, but only about 80,423 tonnes have been transferred to UCIL under the provisions of Mines and Minerals (Development and Regulation) Act (MMDR) and the Atomic Minerals Concession Rules.
Of this, 39.22% has already depleted, leaving about 60.78% currently available. At current production rates, these reserves can last about 40 years if no new reserves are added, it noted.
The panel also noted that UCIL faces challenges including ore body depth, low ore grades, land acquisition hurdles, public resistance and tailings management, which could affect production schedules.
“Recognising the criticality of ore grades in India (0.02-0.045%) vis-à-vis much higher grades abroad, which raises costs and tailings burdens, the Committee underlines the need to mitigate grade-related inefficiencies through technology upgrades and process intensification,” it noted.
The panel then recommended that UCIL upgrade existing mines and mills, expand brownfield capacity at Turamdih, Jaduguda and Tummalapalle, and accelerate new mining centres in Rajasthan and Andhra Pradesh. It also called for greater use of advanced exploration techniques, sensor-based ore sorting, mine automation and improved beneficiation to raise head grades and lower costs.
DAE, meanwhile, informed the parliamentary panel that UCIL’s uranium oxide production capacity is expected to double to 1,160 metric tonnes (MT) by 2036, from the current 580 MT, once four mining and processing projects in Rajasthan, Chhattisgarh and Jharkhand are commissioned.
Enriched uranium used in the two light water reactor (LWR) variants — Tarapur Nuclear Power Plant and Kudankulam Nuclear Power Plant — is entirely imported. (Express Archive) 
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