Mission mineral

India needs to build processing capabilities

As India seeks to build capacity in critical minerals, private miners are increasing their presence in areas including graphite, cobalt, lithium, tin, tantalum and tungsten across resource-rich Africa through exploration ventures, local partnerships and joint ventures. These efforts point to an underused channel in India’s critical-minerals strategy: A mining network of the private sector and diaspora willing to take risks abroad. However, it needs stronger institutional and diplomatic backing. As a report in this newspaper recently showed, an entrepreneurial overseas mining ecosystem has emerged without depending on Indian state funding. The government should, therefore, see these firms as strategic partners. Mining firms are mostly in need of diplomatic backing, help in navigating host governments, and stronger links with Indian manufacturers. China has demonstrated the value of such an approach over decades, supporting mining companies with financing, infrastructure and diplomatic networks.

 

It is necessary for Indian embassies in Africa to play a more active role in this respect, while New Delhi should use government-to-government relations to help Indian firms secure mining rights, resolve regulatory difficulties, and build credible long-term collaboration with countries such as Tanzania, Zambia and the Democratic Republic of Congo. The renewed India-Zambia discussions on copper and other critical minerals underline the importance of such engagement. The urgency is clear. A recent Parliamentary Standing Committee report noted that India was 100 per cent dependent on imports for lithium, cobalt and nickel, and imports 25 per cent of its graphite requirements. At least 55 per cent of each identified critical mineral is concentrated in just 15 countries, making diversification essential. India also has Khanij Bidesh India Ltd (KABIL) — backed by National Aluminium Company, Hindustan Copper, and Mineral Exploration and Consultancy — to pursue overseas mineral assets, and the government is seeking both government-to-government and business-to-business opportunities. The private mining ecosystem should be incorporated into this strategy rather than treated separately.

 

However, acquiring mines, at home or abroad, is only the beginning. The more serious weakness is processing. The Parliamentary Committee has noted the extent of processing China does: Cobalt (77 per cent), graphite (91 per cent), rare-earth elements (92 per cent), and lithium (65 per cent). It often uses this advantage to achieve other objectives, including geopolitical. Thus, the world is looking for alternatives, and India could emerge as a reliable source. This calls for making domestic refining more cost-effective and adjusting existing Indian refining infrastructure where possible.

 

India’s domestic mining push also needs recalibration. The government has put 24 critical and strategic minerals under central auctioning and launched the National Critical Mineral Mission. Yet industry participation has been uneven. Industry has cited inadequate geological data, economically unviable small blocks, and lengthy regulatory clearances as obstacles. The government must quickly address such issues. Finally, mineral security should include recycling. Recovery of lithium, cobalt, nickel, graphite and rare earths from end-of-life batteries, electronics, industrial waste and mine waste can create a domestic secondary resource base. India, therefore, needs an integrated strategy: Domestic exploration and mining, along with overseas private and state-backed assets. This needs to be accompanied by processing, refining and recycling capabilities.