Mineral magic: Sarada Bhushan Mohanty

As the sole rare earth materials producer in the country, IREL (India) is in a unique position. Fully government owned under the Department of Atomic Energy, with the support of the Bhabha Atomic Research Centre, the company’s operations are tied closely to the government’s strategic priorities, particularly in the areas of critical mineral security and self-reliance.

With a background in law and accounting, and over 35 years of experience at companies including Tata Long Products, Vedanta and NALCO, IREL’s Chairman and Managing Director Sarada Bhushan Mohanty utilized his diverse skill set across multiple roles, including in policy and strategic advice, tax planning and project implementation, when he joined the company in 2022.

“On a global scale, heavy mineral sand mining is only carried out by a few countries, including Australia and South Africa,” he tells The CEO Magazine.

“In our country, these heavy minerals sands are associated with radioactivity. So the processing of these minerals is more challenging for us compared to other countries.”

IREL’s mining activities encompass both mechanized as well as manual mining, and are carried out in an environmentally friendly manner.

“Post mining, the processing of minerals involves the use of electrostatic, magnetic and gravity separation techniques to separate individual minerals. During the process, the rare earth-bearing minerals’ monazite is naturally liberated,” Mohanty explains.

“So our processes do not have any carbon footprint; they are completely eco-friendly because the mining area after the excavation of heavy minerals is refilled, planted and returned immediately.”

Accelerating growth

Since its inception in 1950, IREL has experienced a significant evolution, according to Mohanty. But from 2016, the company never looked back, with a compounded growth rate (CAGR) of around 30 percent and the production level increasing to a CAGR of around 20 percent.

Now, things are only continuing to accelerate. In the past year, it achieved its highest-ever production and turnover.

For a company on the up, where to from here? Over the next few years, Mohanty says IREL’s focus will be on the development of an ecosystem for rare earth metals, alloys and magnets at a technological demonstration plant.

“In India, we do not have a properly established ecosystem of rare earth – we have only produced up to the level of high pure oxides,” Mohanty reveals.

“While we have been producing high pure oxides for so long, no private players have come forward and tried to establish themselves within this value chain.

“So for that purpose, our Bhopal technological demonstration plant is the first of its kind in India and was established where lanthanum cerium metals are being produced, along with the recovery of critical minerals from end-of-life products.”

Another focus will be on the creation of two additional verticals for ilmenite and titanium.

“Right now, we only have predominantly lighter rare earth resources, wherein heavy rare earths are not available in economically extractable quantities. So heavies like gadolinium and dysprosium and europium or yttrium are not available,” he points out.

“But at the same time, lighter rare earths, such as neodymium and praseodymium, are available, 75 percent of which are being used in the magnet industries.”

In line with India’s Critical Mineral Mission, the company is improving production and at the same time, prioritizing end-of-life recovery of usable critical minerals. Even though it is still at a very nascent stage, it is progressing well.

Meeting challenges

Exploring joint ventures and through a memorandum of understanding with Coal India, Neyveli Lignite and other international partners to acquire assets and secure resources, IREL has entered a new realm of expansion.

And while challenges, ranging from limited labor to technological availability, inevitably arise, they are being tackled one step at a time.

“As we are the sole player, there is not sufficient manpower availability, which is why we have made the initiative at Bhopal, where we have facilities for technological demonstration plants, so training and development can happen on-site,” Mohanty says.

He adds that another ongoing stumbling block is public perception, given the radioactive elements involved in IREL’s operations. This is something the company is working very hard with the government to change, he says.

A culture of cooperation

Mohanty says partnerships are integral to many aspects of the business.

“We have a transparent tendering process, which fosters trust in the procurement process and ensures fairness in the selection of suppliers,” he reveals.

“Quality is all about doing the right thing the first time and every time, so there are fewer rejections, which improves product quality and reduces waste. This ensures that quality of procurement is never compromised.

“Through partnerships, the customer benefits from the mutual trust element that has been developed, which also reduces the cost of production.”

With this kind of operation providing immense benefits to all countries across the globe, Mohanty enthuses that a culture of cooperation is not only valuable but also vital. In an industry where innovation is paramount, IREL proudly acknowledges that there is strength in numbers.

“To develop a complete ecosystem, all our private players, as well as public sector undertakings, need to collaborate,” Mohanty says.

“Innovation and technology are the key drivers for the next generation. We have to look for how we can recover these rare earth elements and critical minerals from waste tailings and end-of-life products. These breakthroughs would completely change the game.”

While Mohanty can’t be certain of what IREL or the industry as a whole could uncover or discover over the next few decades, one thing is certain: the future is incredibly bright.

“What has already happened in this field is so encouraging and so dynamic,” he says with a smile. “The interesting thing is that it is always evolving, because the country is depending on this rare earth, which is not in fact rare.

“India is endowed with adequate resources of rare earth minerals, so if we can utilize it to its full potential, then the country can be self-reliant.”