THE CONTEXT: India’s Critical Mineral Mission, outlined in the Union Budget 2024-25, seeks to secure essential resources for the nation’s clean energy transition and technological advancement by enhancing domestic production, fostering international partnerships, and promoting sustainable practices. This mission aligns with global efforts, such as the African Green Mineral Strategy, to create resilient supply chains and reduce dependency on dominant players like China.
PRIMARY OBJECTIVES OF THE CRITICAL MINERAL MISSION
- Boost Domestic Production: The mission aims to enhance exploration and mining activities within India to increase the domestic output of critical minerals. This involves leveraging technological advancements and regulatory reforms to facilitate private sector participation in mining activities. The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, was passed to allow private sector exploration of certain critical minerals in India.
- Secure International Supplies: India seeks to acquire long-term supply contracts with resource-rich countries, particularly in Africa, to ensure a stable and reliable supply of critical minerals. This involves negotiating bilateral agreements and establishing strategic partnerships with countries like Zambia and Zimbabwe.
- Reduce Import Dependency: India aims to reduce its reliance on imports for critical minerals by diversifying its supply sources and developing domestic capabilities. This includes exploring overseas mineral deposits and investing in processing and refining capabilities within India.
- Promote Research and Innovation: The mission emphasizes the importance of research and innovation in extracting, processing, and recycling critical minerals. Initiatives like S&T-PRISM (Science & Technology – Promoting Innovation in Minerals) are part of this effort to develop advanced technologies and promote sustainable mining practices.
- Develop a Resilient Value Chain: A key objective is creating a sustainable and resilient value chain for critical minerals. This involves fostering self-reliance through research, technology development, human resource training, and providing adequate funding and incentives.
INDIA AFRICA DIPLOMATIC DEVELOPMENTS:
- Deepening Economic Ties: India and Africa share robust economic connections, with bilateral trade reaching $98 billion in 2022-23. A substantial portion of this trade, $43 billion, is attributed to the mining and mineral sectors, highlighting the importance of minerals in their economic relationship. India has invested $75 billion in Africa, with significant investments made by public sector units in acquiring energy assets, reflecting a robust economic partnership.
- Collaborations in the Mining Sector: India actively seeks to collaborate with African countries on critical minerals. This includes signing memoranda of understanding with countries like Zambia and Zimbabwe for cooperation in geological mapping, mineral deposit modeling, and capacity building. Indian companies have completed infrastructure projects in 43 African countries, which include building transmission lines, hospitals, and railway lines.
- Leveraging Historical and Diaspora Connections: India and Africa share deep political, economic, and historical connections bolstered by a three-million-strong African Indian diaspora. This diaspora fosters commercial networks and cultural ties between the regions.
- Strategic Partnerships for Mineral Security: Africa, housing 30% of the world’s known critical mineral reserves, is a strategic partner for India in securing mineral supplies. India’s engagement with Africa is part of its broader strategy to diversify its sources of critical minerals and reduce dependency on imports from other regions, mainly China.
- Support for Africa’s Developmental Agenda: India is aligning its initiatives with Africa’s developmental goals, such as the African Green Mineral Strategy, which champions minerals-based industrialization. This presents opportunities for India to support value addition and sustainable development in Africa. As part of the International Solar Alliance, India has benchmarked $2 billion for solar projects in Africa, indicating a commitment to supporting renewable energy initiatives on the continent.
PERSISTENT ISSUES FOR INDIA:
- Domestic Production and Exploration Challenges: India aims to expand its domestic production of critical minerals, but its exploration capacity is still in its infancy. The country faces challenges such as complex geology, lack of advanced exploration technologies, and regulatory hurdles, which slow down exploration efforts.
- Dependency on Imports and Supply Chain Vulnerabilities: India heavily relies on imports for critical minerals, posing economic and strategic risks. For instance, China dominates the processing of lithium, cobalt, graphite, and manganese, which are crucial for India’s supply chain security.
- China’s Dominance in the Global Mineral Supply Chain: China’s control over critical mineral supply chains poses a significant challenge. It dominates cobalt mining in the Democratic Republic of Congo and has substantially invested in Africa and South America. China’s influence extends to processing and manufacturing capabilities, making it a formidable competitor in the global market for critical minerals.
- Environmental and Ethical Considerations: The extraction and processing of critical minerals often comes with environmental costs, such as habitat destruction and pollution. India must balance its mineral extraction with ecological considerations to ensure sustainable practices.
OPPORTUNITIES FOR INDIA IN AFRICA:
- Access to Rich Mineral Reserves: Africa holds over 30% of the world’s critical mineral deposits, including significant reserves of cobalt, copper, lithium, and rare earth elements. These minerals are essential for India’s growing electric vehicle (EV) and renewable energy sectors, providing a crucial opportunity to secure a stable supply of these resources.
- Strategic Partnerships and Agreements: India actively engages in government-to-government (G2G) negotiations with several African countries to secure critical mineral blocks. Memoranda of understanding (MoUs) have been signed with countries such as South Africa, Mozambique, Congo, Tanzania, Zambia, Malawi, Côte d’Ivoire, and Zimbabwe. These agreements strengthen bilateral ties and ensure access to vital mineral resources.
- Countering China’s Dominance: India aims to counterbalance China’s significant influence by establishing a more substantial presence in the African mining sector. China controls many cobalt processing facilities in the Democratic Republic of Congo and has significantly invested in lithium resources in Zimbabwe. India’s increased engagement in Africa offers a strategic opportunity to diversify its supply chain and reduce reliance on Chinese resources.
WAY FORWARD:
- Technological and Financial Investments: Significant investments in technology and infrastructure are required to advance exploration and processing capabilities. This includes developing advanced processing technologies and establishing facilities for refining and recycling critical minerals.
- Countering Geopolitical Risks: By engaging with multiple countries, India aims to reduce its reliance on dominant suppliers like China, thereby mitigating geopolitical risks associated with mineral supply chains.
- Joining Minerals Security Partnership (MSP): This partnership, led by the United States, includes 14 member countries, including Australia, Canada, Finland, France, Germany, Japan, and others. The MSP aims to catalyze global public and private investment in critical mineral supply chains. It is crucial for India’s ambitions to transition to sustainable energy and enhance its manufacturing capabilities, particularly in electronics and semiconductors.
- Infrastructure and Technology Transfer: Indian companies can leverage their experience in infrastructure development to support mining projects in Africa. Additionally, Indian technology start-ups can provide innovative solutions for sustainable mining practices.
- Developing Human Resources and Capacity Building: Initiatives like the Indian Technical and Economic Cooperation (ITEC) program, which has trained 40,000 Africans over a decade, can be expanded to build a skilled workforce in critical mineral sectors. Collaborations with African educational institutions can enhance local mineral exploration and processing expertise, benefiting both regions.
- Establishing a Dedicated Mission Office: A dedicated office within the Ministry of Mines will oversee the implementation of the Critical Mineral Mission, ensuring alignment with national goals for energy security and economic development.
THE CONCLUSION:
Through strategic collaborations and investments in technology and infrastructure, India aims to transform its critical mineral landscape, supporting domestic growth and international partnerships. By aligning with Africa’s mineral wealth and sustainable development goals, India is poised to play a pivotal role in the global shift towards a green economy.
UPSC PAST YEAR QUESTIONS:
Q.1 “If the last few decades were Asia’s growth story, the next few are expected to be of Africa’s.” Considering this statement, examine India’s influence in Africa in recent years. 2021
Q.2 Increasing interest of India in Africa has its pros and cons. Critically examine. 2015
MAINS PRACTICE QUESTION:
Q.1 Discuss the objectives and recent developments of India’s Critical Mineral Mission and analyze how it aligns with the African Green Mineral Strategy to support global clean energy transitions.
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