In the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman announced the creation of a Critical Mineral Mission.
The mission aims to:
Expand domestic production of critical minerals.
Prioritise the recycling of critical minerals.
Incentivise the acquisition of overseas assets to secure supply.
Steps Taken to Achieve the Mission's Objectives:
The amendment of the Mines and Minerals (Development and Regulation) Act of 1957 resulted in the Mines and Minerals (Development and Regulation) Amendment Bill, 2023.
This amendment removed six minerals from the atomic list, allowing the private sector to explore them within India.
Khanij Bidesh India Limited (KABIL) Formed in 2019 as a joint venture of three public sector undertakings, KABIL was established to engage with mineral-rich countries to secure critical mineral supplies for India.
In January 2024, KABIL signed its first major agreement for lithium exploration in Argentina’s Catamarca province, granting access to five blocks.
Despite efforts, India's exploration and processing capacity for critical minerals is still underdeveloped.
Key challenges include:
A nascent capacity for exploration.
A lack of end-use component manufacturing.
A need for upskilling the labour force, especially for battery manufacturing.
Situating Africa in India’s Critical Minerals Supply Chain:
Africa holds 30% of the world’s known critical mineral reserves, making it crucial for India’s Critical Minerals Mission.
India has longstanding political, economic, and historical ties with Africa, reinforced by a 3 million-strong Indian diaspora.
New Delhi has strengthened its diplomatic presence in Africa, which External Affairs Minister S. Jaishankar calls the “land of the future.”
Of the total $98 billion bilateral trade between India and Africa in 2022-23, $43 billion is linked to the mining and mineral sectors.
India has invested $75 billion in Africa, largely through public sector undertakings for acquiring energy assets.
India imports 34 million tonnes of oil from Africa, which accounts for 15% of its demand, alongside increasing imports of natural gas, minerals, and fuels.
India’s involvement in the International Solar Alliance has earmarked $2 billion for solar projects in Africa.
Africa’s Shifting Mineral Policies:
African countries are moving away from the traditional ‘pit-to-port’ model by focusing on value addition in mineral processing.
The pit-to-port model is a way to connect, automate, and control various components of a mining site from a central control center
Tanzania’s multi-metal processing facility, Zimbabwe and Namibia’s ban on raw mineral exports, and Ghana’s policy for green mineral exploitation.
The upcoming African Green Mineral Strategy champions minerals-based industrialisation, creating opportunities for India to contribute to Africa’s developmental agenda.
The China Factor in Global Mineral Supply:
China exerts significant control over the critical minerals value chain, creating economic and security risks for India.
Chinese companies have a strong presence in cobalt mining in the Democratic Republic of Congo and recently signed a $7 billion minerals-for-infrastructure deal.
Opportunities for India in the African Critical Minerals Sector:
Indian construction companies have completed several key projects in 43 African countries, including transmission lines in Tunisia, hospitals in Tanzania, and railway lines in Ghana.
In the critical minerals landscape, strategic projects, along with mining-adjacent infrastructure, are essential for development.
India has signed MoUs with Zambia and Zimbabwe for cooperation in geological mapping, mineral deposit modelling, and capacity building.
To build a skilled workforce for critical minerals, India could leverage the Indian Technical and Economic Cooperation (ITEC) programme, which has trained 40,000 Africans over 10 years.
Indian tech startups are contributing innovative tools for mining exploration, extraction, and mineral ore beneficiation.
These technologies help accelerate mining processes while minimising ecological impacts, adding value to Africa's mining sector.
African Priorities:
African nations are prioritising value addition in mining.
As Marit Kitaw, Director of the African Minerals Development Center, stated: “The only way to transform lives is to add value.”
India’s Role:
India’s Critical Minerals Mission should adopt responsible practices that align with African goals, ensuring that cooperation in the critical minerals sector focuses on sustainable and value-driven development.
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