Africa can make India’s ‘critical mineral mission’ shine. The Hindu Editorial Explanation 6th September 2024.

Introduction

In the Union Budget for 2024-25, India’s Finance Minister, Nirmala Sitharaman, introduced a significant initiative called the Critical Mineral Mission. This mission is important for India’s future because it focuses on minerals that are crucial for modern technologies like batteries, electric vehicles, and renewable energy. The Critical Mineral Mission aims to secure a steady supply of these minerals for India.

In August 2024, the Ministry of Mines held a seminar to talk about the mission’s main goals. These are:

  1. Increase the production of critical minerals in India: India wants to mine more of these minerals within the country to reduce dependence on other nations.
  2. Focus on recycling critical minerals: Recycling will help India use minerals more efficiently and prevent shortages in the future.
  3. Encourage Indian companies to buy mineral assets in other countries: India is looking to invest in mining operations in countries rich in critical minerals, ensuring a long-term supply for the nation.

Steps India is Taking

To make progress on these goals, India is already taking action. The government made changes to an old law called the Mines and Minerals Act of 1957. This change now allows private companies to explore and mine six minerals that were earlier restricted. Opening up these resources to private companies could increase the production of these minerals in India.

In 2019, India also created a company called Khanij Bidesh India Limited (KABIL). This company’s job is to find and secure critical mineral supplies from other countries. In January 2024, KABIL signed a major agreement to explore and mine lithium (a key mineral used in batteries) in Argentina. This is a big step for India because it gives access to five lithium mining sites.

However, India is still in the early stages of developing its capacity to find, process, and use these minerals. The country also does not have enough factories to make products like batteries that use these minerals. Additionally, India needs to train more workers to support industries that use critical minerals, like electric vehicle manufacturing.

Importance of Africa for India’s Critical Mineral Mission

For India to be successful in securing critical minerals, it needs to work closely with African countries. Africa has 30% of the world’s known reserves of critical minerals. India already has strong relationships with many African nations, and there is a large Indian community (around 3 million people) living in Africa. These connections give India a good starting point to build stronger partnerships.

India and Africa already trade a lot with each other. In 2022-23, their trade amounted to $98 billion, and nearly $43 billion of that came from the mining and minerals sector. India also relies on Africa for other resources, like oil and natural gas. For example, India gets 15% of its total oil needs from Africa. These existing relationships show that Africa is already a key partner for India in securing energy and minerals.

African countries are making changes to their mining policies. For example, countries like Tanzania, Zimbabwe, Namibia, and Ghana are working on improving how they process minerals. They want to move away from simply exporting raw minerals and start processing them within their own countries to create more value. This presents a huge opportunity for India to collaborate and support Africa’s efforts in building industries that process these minerals.

Challenges from China

One of the challenges India faces in securing critical minerals is the strong influence of China. China has been ahead in acquiring mineral resources globally, especially in Africa. For instance, China has a significant presence in mining cobalt in the Democratic Republic of Congo (a mineral essential for battery production). China has also invested billions of dollars in building infrastructure and factories to process these minerals.

This gives China a lot of control over the global supply of critical minerals, which could be a problem for India. If India relies too much on China for these minerals, it could face both economic and security risks. Therefore, India needs to build strong partnerships with other countries, especially in Africa, to reduce its dependence on China.

Opportunities for India in Africa

Despite China’s influence, India has many opportunities to work closely with African nations on critical minerals. Indian construction companies have already completed several important projects in 43 African countries. These include building power lines in Tunisia, hospitals in Tanzania, and railway lines in Ghana.

India has also signed agreements with Zambia and Zimbabwe to work together on geological mapping and identifying mineral deposits. Additionally, India has been providing training to workers in African countries through programs like the Indian Technical and Economic Cooperation (ITEC), which has trained 40,000 Africans over the last 10 years. This training will help build the necessary workforce for Africa’s growing mining and minerals sector.

Indian technology companies are also getting involved in Africa’s mining sector. These companies are developing new tools and technologies that make mining more efficient and environmentally friendly. They are helping with exploration (finding minerals), extraction (mining), and processing (turning raw minerals into useful products). This expertise can be valuable for African countries looking to develop their mining industries sustainably.

Conclusion

India’s Critical Mineral Mission is a crucial step towards securing essential minerals that are key to modern technologies and renewable energy. However, for the mission to succeed, India needs to:

  • Increase its domestic production of critical minerals.
  • Build strong international partnerships, especially with African countries.
  • Reduce its reliance on China for critical minerals.

By working closely with African nations, investing in infrastructure, and supporting the development of industries in Africa, India can secure a reliable supply of critical minerals while contributing to the global shift towards cleaner energy solutions..

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