Africa can make India’s ‘critical mineral mission’ shine

Africa can make India’s ‘critical mineral mission’ shine

Context:

Recently, the Union Budget 2024-25 introduced the Critical Mineral Mission to boost India’s supply of essential minerals needed for advanced technologies.

 

Relevance:
GS-01 GS-03 (Minerals, Economy)

 

Dimensions of the Article

• What is the Critical Mineral Mission?
• India’s Connections with Africa for Mineral Supply
• Implications for India

 

What is the Critical Mineral Mission?

• The mission focus on securing essential minerals like lithium, cobalt and rare earth elements which play a major role in sectors like renewable energy, electric vehicles, and advanced electronics.
• The mission aims to achieve three main goals:
  • Enhancing domestic production
  • Prioritizing recycling
  • Acquiring overseas assets to ensure a steady supply
• In order to ensure more inflow of resources to the country, the Indian government amended the Mines and Minerals (Development and Regulation) Act of 1957 allowing private sector to explore six minerals that were previously restricted for atomic use.
• Khanij Bidesh India Limited (KABIL), was established in 2019 to secure critical minerals from abroad.
• Consequently, the first major agreement of KABIL was signed in January 2024 to grant access to lithium blocks in Argentina.

 

India’s Connections with Africa for Mineral Supply

• India boasts three million-strong Indian diaspora and an extensive commercial networks with the continent. Having  a strong political, economic, and cultural ties with Africa, it is likely to become a strategic partner for India’s mineral needs.
• The continent is also known for 30% of the world’s known reserves of critical minerals and New delhi has even enhanced its diplomatic presence in Africa, reflecting the importance it places on the continent.
• India’s relationship with Africa goes beyond just trade in minerals. Bilateral trade between the two regions touched $98 billion in 2022-23, with $43 billion from the mining and minerals sector.
• India imports 15% of its oil requirements from Africa.
• India has even invested in energy assets across the continent.

Implications for India

• As African countries are transitioning towards focusing on value addition rather than the simple “pit-to-port” model of exporting raw materials, it is an advantage for India to collaborate.
• Countries like Tanzania, Zimbabwe, and Namibia are developing policies to process minerals locally to generate more economic benefits. India can utilize this opportunity to collaborate with the African nations and investment in mining infrastructure and capacity-building projects across Africa.
• It can significantly strengthen India’s supply chain for its clean energy and technological ambitions.
• However, China has been proactive in the region. It has already made substantial investments in the Democratic Republic of Congo, where it dominates cobalt mining (mineral crucial for battery production).

 

Way forward:

• India’s Critical Mineral Mission is a strategic move to secure essential minerals for its growing technology and clean energy sectors. However, India is still developing its capability in exploring, processing, and manufacturing the end-use products.
• In-order to harness the potential in Africa, India must prioritize positioning itself as a responsible and reliable player in the global critical minerals landscape by  focusing on sustainable and value-driven partnerships.
• It should also focus on building a skilled workforce in the related industries across the sectors.