In a promising development for India's pursuit of essential minerals from abroad, Australian authorities have made headway by identifying a minimum of five mines containing lithium and cobalt. These resources have been earmarked for Indian entities, with the state-owned Khanij Bidesh India (KABIL) taking the lead. KABIL represents a joint venture involving state-run entities such as NALCO, Hindustan Copper, and the Mineral Exploration Corporation.

"These are a mix of explored assets and somewhere reserves have been identified, which includes lithium and cobalt," a government official told TOI. In an endeavor to ensure a stable supply of critical minerals, the mines ministry, in conjunction with KABIL and Australia's Critical Minerals Office, has been engaged in collaborative efforts. These endeavors hold significance in light of India's energy transition goals.

According to reports, the India-Australia partnership initiated shortly after the Covid-19 outbreak, in collaboration with Japan, aimed at establishing a resilient supply chain and reducing dependency on China. The efforts gained momentum through the Economic Cooperation and Trade Agreement (ECTA), backed by financial contributions from KABIL and Critical Minerals. Anticipating further advancements, discussions for a dedicated chapter on critical minerals are projected to take place during the upcoming full free trade agreement (FTA).

Notably, the Indian government is exploring similar opportunities in countries like Mongolia, Argentina, and Chile, focusing on minerals such as copper and lithium. Commerce secretary Sunil Barthawal recently highlighted India's discussions on potential FTAs with Peru and Chile, aligning with its strategic interest in securing critical minerals.

To bolster the processing of these minerals, particularly where China holds global dominance, steps are being taken to foster domestic capabilities. India plans to invite laboratories to contribute their expertise in developing technologies for processing minerals used in battery manufacturing. With the identification of 30 critical minerals earmarked for exploration and mining both domestically and internationally, these measures are pivotal in shaping India's resource security.

Recent amendments to the Mines and Minerals (Development and Regulation) Act are expected to bolster domestic mining efforts, particularly among "junior miners" specialized in exploration and development. Officials emphasized the significant escalation of domestic mining initiatives, highlighting that India's investment stood at approximately $150 million, significantly lower than the $2 billion in Canada and over $1 billion in Australia.

Image source: TOI