A heated political exchange erupted in the Kerala Assembly after Chief Minister V.D. Satheesan accused the Opposition CPM of hypocrisy over allegations that the government was planning to privatise the state’s mineral wealth.
Replying to the discussion on the Revised Budget, the Chief Minister said the Opposition had strongly criticised the government over alleged privatisation, even though the Budget contained no such proposal. He then alleged that it was the previous LDF government that had initiated the process of involving a private company in the mineral sector.
According to the Chief Minister, Kerala Minerals and Metals Limited (KMML) had moved ahead with plans to sign an agreement with Hyderabad-based Midwest Limited for processing Monazite stocks before the change in government.
As Gold 101.3FM, UAE’s No.1 radio station, reports, Industries Minister P.K. Kunhalikutty also confirmed that the previous government had completed the tender process and selected Midwest Limited for the project. However, he clarified that the Memorandum of Understanding was never signed because the Assembly elections were announced before the process could be completed.
The Chief Minister said the KMML Board had approved a global tender in January 2026 after inviting Expressions of Interest from private companies. Three firms submitted bids, and in February, the board selected Midwest Limited to execute a pilot project for processing Monazite-rich residue into valuable rare-earth elements, including Neodymium, Praseodymium, Samarium, Gadolinium and Yttrium.
He also alleged that the Opposition, which had accused the current government of facilitating private exploitation of Kerala’s mineral wealth, had itself initiated the process while in power.
The project later ran into contractual issues after Midwest sought changes to a tender clause that prevented it from claiming commercial rights over the project. Following discussions, KMML reportedly agreed to grant the company a Right of First Refusal, giving it preference if a commercial-scale project was taken up in the future.
However, both the Chief Minister and the Industries Minister clarified that the proposed agreement with Midwest Limited has now been dropped. They also reiterated that private companies will not be involved in the proposed mineral corridor, reaffirming the government’s stand on the issue.
