Public sector undertakings (PSUs) in India are devising a strategic plan to secure crucial mineral resources abroad. Khanij Bidesh India Ltd. (KABIL), National Mineral Development Corporation (NMDC), ONGC Videsh Limited (OVL), and Coal India Ltd. (CIL) will be seeking essential mineral mines internationally.
Union Mines Secretary V. L. Kantha Rao stated that PSUs with existing overseas offices will be prioritized for obtaining vital minerals in countries where they are already established. For instance, NMDC is active in Australia, while CIL is vigorously pursuing lithium blocks in Chile.
To secure vital minerals abroad, National Aluminium Company Ltd. (Nalco), Hindustan Copper Ltd. (HCL), and Mineral Exploration and Consultancy Ltd. (MECL) formed a joint venture known as KABIL. The venture was granted exclusive exploration rights to five lithium blocks in Argentina in January.
Lithium, a crucial component in batteries used in various industries, including electric vehicle manufacturing, is a significant focus for India. The country is also conducting feasibility studies for five lithium and cobalt mines in Australia.
In April, reports indicated that the government was working to introduce processing technology domestically by engaging with major suppliers of essential minerals. The effort followed the government’s initiation of auctions for vital mineral mines.
In June 2023, India established its own list of thirty essential minerals for the first time. The government emphasized the need to reassess its mineral requirements immediately to meet its energy transition and net-zero commitments, aligning with international obligations to reduce carbon emissions.
As reported by IIFL Securities, critical minerals such as cobalt, graphite, lithium, and rare earth elements are essential for manufacturing electric vehicle components and are used in advanced technologies across various sectors, including telecommunications, energy, agriculture, defense, and pharmaceuticals.
