Paper: GS – I, Subject: Geography, Topic: Resources – World and India, Issue: India’s global search of critical minerals.
Context:
India is seeking global partnerships to secure critical minerals (e.g., lithium) essential for green technologies. State-run NLC (Neyveli Lignite Corporation) is negotiating a lithium deal in Mali, Africa.
Key Highlights:
Global Race for Critical Minerals:
- Significance of critical minerals: Minerals like lithium, cobalt, and rare earths are vital for clean energy tech, EVs, and electronics.
- Race for access: Countries are scrambling for access due to limited domestic resources and global concentration (For e.g., Congo holds 50% of cobalt)
India’s Current Approach:
Corporations such as NLC, a PSU, is negotiating a stake in a Russian-owned lithium mine in Mali.
Limitations of Existing Frameworks:
Though KABIL (Khanij Bidesh India Ltd) is the official mineral procurement agency it is:
- Is owned by three state-run firms.
- Lacks scale and capacity to act boldly on global stage.
- It is insufficient in scale and coordination
Measures needed:
- Unified Procurement Framework: A single, empowered national entity must lead resource acquisition globally.
- Drawing expertise: The National entity should draw from entire public sector’s capacities, private sector partnerships and diplomatic strengths for strategic deals.
- Expand State Capacity: Sovereign ownership and state-backed deals are more effective than purely commercial ventures. It is crucial to develop diplomatic, legal, and commercial expertise for high-value deals.
- Learn from Past Successes: Learn lessons from India’s oil venture in Sudan (early 2000s) which was one of its most profitable.
- Learn from China’s success: China combined diplomatic outreach, infrastructure development, and local integration which India can adapt.
- Treating Minerals as Strategic Assets: Strategic minerals like Lithium, in particular, is crucial for energy transition, EV batteries and National security amid global flux.
- Prepare for Geopolitical Shifts: Growing US-China tensions show that access to minerals can be weaponized. Therefore, India must reduce vulnerability by securing diversified sources.
- Build domestic capacity: India also needs to develop refining and processing capabilities, build resilient supply chains and invest in technology and R&D.
Conclusion:
India must scale up and institutionalize its hunt for critical minerals. A whole-of-government and public-private approach is needed. India must now execute a strategic mineral diplomacy roadmap for long-term national interest.
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