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  1. India expands critical mineral hunt to Africa and Australia, pushes for overseas mining rights

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India expands critical mineral hunt to Africa and Australia, pushes for overseas mining rights

Upstox

3 min read | Updated on February 27, 2025, 17:49 IST

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SUMMARY

The Indian government is working with Australia and exploring opportunities in Congo, Zambia, and Tanzania.

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Zambia has allocated a 9,000 sq km greenfield area for India to explore cobalt and copper reserves.

India is scouting for mining and exploration of critical mineral assets in Congo, Zambia, Tanzania and Australia, a senior government official said on Thursday.

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Speaking at a press conference, V L Kantha Rao, secretary, ministry of mines, revealed that the Indian government is working closely with Australia, alongside exploring mineral opportunities in African nations.

"The Australian government is working with KABIL....There are also other countries like Democratic Republic of the Congo, Tanzania and few other countries where through our missions...(we) are working on trying to get critical mineral assets for exploration and mining for Indian companies in those countries,” he said.

Critical minerals—including lithium, copper, nickel, cobalt, and rare earth elements—are important to fuel the development of clean energy solutions such as electric vehicles, wind turbines, and battery manufacturing.

Rao said that public sector units, including Coal India, NMDC, and ONGC Videsh Ltd (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corporation, are engaged in critical mineral exploration in Australia.

Zambia has recently allocated a 9,000-square-kilometer greenfield area for India to explore cobalt and copper reserves.

"We will take two to three years in doing this exploration and we hope that after exploration we will be able to get the mining rights also," Rao said.

Mines Minister G Kishan Reddy announced that the Geological Survey of India (GSI) has identified lithium blocks in Jammu and Kashmir as well as Chhattisgarh.

A dedicated GSI team will conduct further lithium exploration, with clarity expected by April-May, after which the blocks will be auctioned, Reddy said.

The Ministry of Mines is also set to launch an auction for exploration license blocks next month.

The Union Cabinet last month approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of ₹16,300 crore and an expected investment of ₹18,000 crore by public sector undertakings (PSUs) and other entities.

A key objective of the NCMM is to encourage Indian public and private enterprises to acquire critical mineral assets abroad and establish trade partnerships with resource-rich nations.

The government has identified 24 critical minerals, including lithium, cobalt, nickel, graphite, rare earth elements, and tungsten, which are essential for India's clean energy ambitions.

Following amendments to the Mines and Minerals (Development and Regulation) Act in 2023, the Ministry of Mines has auctioned 24 blocks of strategic minerals. The Geological Survey of India has also ramped up exploration, conducting 368 critical mineral exploration projects over the past three years. In FY 2024-25, 195 projects are underway, with plans to initiate 227 more in 2025-26.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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