Syllabus
GS Paper 2 – Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
Context
Partnership with Africa can make India’s critical mineral mission a success
Source
The Hindu| Editorial dated 6th September 2024
Africa can make India’s ‘critical mineral mission’ shine
In an increasingly competitive global landscape, with China exerting significant control over critical mineral supply chains, India’s efforts need to be strategically focused, particularly on strengthening partnerships with mineral-rich African countries. This shift presents both opportunities and challenges for India as it seeks to build sustainable, long-term access to critical minerals.
Critical Mineral Mission
India’s Critical Mineral Mission , announced in the Union Budget 2024-25, is aimed at securing key resources essential for various industries, including battery manufacturing, electronics, and renewable energy.
The mission has three main objectives:
- Expanding domestic production
- Promoting recycling, and
- Acquiring overseas assets of critical minerals.
Objectives of India’s Critical Mineral Mission
- Expand Domestic Production
- India aims to boost domestic exploration and mining capabilities, especially for minerals like lithium, cobalt, nickel, and rare earth elements (REEs).
- Recent amendments to the Mines and Minerals (Development and Regulation) Act, 1957, have allowed private sector involvement in exploring six key minerals, previously reserved for government control.
- The goal is to reduce India’s reliance on imports by developing self-sufficiency in critical mineral production.
- Promote Recycling
- A key focus is on developing a circular economy by encouraging the recycling of minerals like lithium and cobalt used in batteries and electronics.
- Initiatives are being designed to establish end-of-life product recycling facilities to extract valuable minerals, reducing the need for virgin mineral mining.
- The move towards sustainable extraction and recycling will help mitigate environmental impacts while ensuring a steady supply of critical minerals.
- Incentivise Overseas Acquisition of Assets
- India is actively seeking to acquire mineral assets abroad, particularly in regions like Latin America and Africa, which are rich in critical mineral resources.
- The joint venture Khanij Bidesh India Limited (KABIL), formed by three public sector units in 2019, has spearheaded efforts, securing a lithium exploration agreement in Argentina’s Catamarca province in January 2024.
Africa’s Role in India’s Critical Mineral Supply Chain
- Africa’s Resource Wealth
- Africa holds 30% of the world’s known critical mineral reserves, including cobalt, lithium, and platinum—vital to industries like electric vehicles (EVs) and green energy.
- India’s historical ties, along with deep political, economic, and commercial networks in Africa, make the continent a strategic partner for securing long-term mineral supplies.
- Existing Partnerships and Trade
- India’s $98 billion bilateral trade with Africa in 2022-23 reflects strong economic ties, with $43 billion attributed to mining and mineral sectors.
- Indian public sector units have already invested in African energy assets, and new projects like solar energy initiatives under the International Solar Alliance are expanding these ties.
- Supporting African Industrialisation
- African governments are moving towards policies that promote value addition and local processing, creating opportunities for India to participate in infrastructure and technology development.
- Countries like Zimbabwe, Tanzania, and Namibia have implemented restrictions on exporting raw minerals, prioritising mineral beneficiation and local capacity-building.
China’s Dominance in the Critical Minerals Sector
- China’s Extensive Control
- China has a stronghold on global critical mineral supply chains, particularly in cobalt mining in the Democratic Republic of Congo (DRC), with significant investments in minerals-for-infrastructure deals.
- This poses both economic and security risks for India, which is working to diversify its supply sources and avoid over-dependence on China.
- The Need for Strategic Countermeasures
- India must fast-track its efforts to secure alternative supply chains and strengthen geopolitical alliances with key African nations to counter China’s influence in the global minerals trade.
- Developing domestic processing and manufacturing capabilities in end-use components will be crucial to reduce reliance on China’s mineral exports.
Opportunities for Collaboration with Africa
- Mining-Adjacent Infrastructure
- Indian companies, particularly in construction and infrastructure development, have completed projects across Africa, positioning them well to contribute to mining-adjacent infrastructure.
- Collaborating on strategic mining projects with African countries can strengthen India’s mineral supply chain and support local development.
- Technical Cooperation and Capacity Building
- India has signed MoUs with Zambia and Zimbabwe for geological mapping and mineral deposit modelling, fostering long-term cooperation in the critical minerals sector.
- Through the Indian Technical and Economic Cooperation (ITEC) program, India has trained 40,000 African professionals, and this workforce development can extend to the critical minerals sector, creating a skilled labour pool.
- Role of Indian Technology Start-ups
- Indian technology start-ups are playing a crucial role in the mining value chain, from exploration and extraction to mineral ore beneficiation.
- These start-ups offer innovative solutions that African governments can leverage to enhance their mining operations while minimising environmental impact.
Conclusion
India’s Critical Mineral Mission is a vital step toward securing the raw materials essential for its economic growth and green energy transition. By building strong partnerships with Africa, promoting domestic production, and mitigating the risks posed by China’s dominance, India can ensure a sustainable and resilient supply chain. The success of this mission will hinge on a mix of strategic investments, technical innovation, and geopolitical partnerships, making it a cornerstone of India’s future resource security.
Related PYQ
Increasing interest of India in Africa has its pros and cons. Critically examine. [ UPSC Civil Services Exam – Mains 2015]
Practice Question
Discuss the significance of India’s Critical Mineral Mission, especially in the context of India’s partnerships with African countries and the global dominance of China in critical mineral supply chains.[250 words]
Guidelines to Answer
- Introduction:
- Introduce India’s Critical Mineral Mission from the 2024-25 Union Budget as a strategic move to secure these resources.
- Body:
- Mention how critical minerals are essential for India’s energy transition, renewable energy technologies, and industrial growth.
- Highlight Africa’s rich mineral reserves and India’s historical ties with African nations.
- Mention existing bilateral agreements with African countries for mineral exploration and technology transfer.
- Discuss the importance of infrastructure development and capacity-building in African nations as mutually beneficial for both regions.
- Discuss China’s dominance in the global critical minerals sector, especially its control over cobalt and rare earths.
- Outline strategic steps India can take: increasing domestic exploration, strengthening global alliances, and enhancing technology-driven mineral recycling.
- Conclusion:
- Sum up the need for effective implementation of the Critical Mineral Mission and the importance of strong international collaborations, especially with Africa, to ensure India’s resource security and economic resilience.