AFRICA CAN MAKE INDIA’S CRITICAL MISSION SHINE.
In the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman announced the establishment of a Critical Mineral Mission. The mission aims to:
- Promoting domestic production of critical minerals.
- Promote recycling of these minerals.
- Incentivize the acquisition of overseas assets.
EXAMPLES OF CRITICAL MINERALS
Some common examples of critical minerals and their applications:
- Lithium: Used in rechargeable batteries for electric vehicles, smartphones, and laptops.
- Cobalt: Essential for high-performance batteries, especially lithium-ion batteries, and various industrial applications.
- Rare Earth Elements (REEs): A group of 17 elements, including neodymium and dysprosium, used in magnets, catalysts, and various high-tech applications.
- Graphite: Used in batteries, lubricants, and as a key component in fuel cells.
- Nickel: Important for stainless steel production and electric vehicle batteries.
- Tantalum: Used in electronics, particularly in capacitors and resistors.
- Vanadium: Used in steel production to improve strength and durability.
KEY INITIATIVES
- Amendment of the Mines and Minerals (Development and Regulation) Act, 1957: Allows private sector exploration of previously restricted minerals.
- The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 was passed by Parliament on August 2, 2023.
- Establishment of Khanij Bidesh India Limited (KABIL): Aims to secure international mineral resources.
KEY OBJECTIVES OF INDIA’S CRITICAL MINERAL MISSION
- Expand Domestic Production: Boost local extraction and processing capabilities for critical minerals.
- Prioritize Recycling: Enhance efforts to recycle critical minerals to reduce dependency on new mining.
- Incentivize Overseas Acquisition: Secure international assets to ensure a stable supply of critical minerals.
AFRICA’S ROLE IN INDIA’S CRITICAL MINERAL MISSION
- Mineral Reserves: Africa holds 30% of the world’s known critical mineral reserves, making it a crucial partner in India’s mineral supply chain.
- Historical and Economic Ties: India has deep political, economic, and historical connections with Africa, supported by a significant Indian diaspora and expanding diplomatic presence.
- Bilateral Trade: In 2022-23, India-Africa bilateral trade was $98 billion, with $43 billion attributed to mining and minerals.
- Investment and Energy Supply: India has invested $75 billion in Africa, including in energy assets. Africa provides about 15% of India’s total oil demand and increasing amounts of natural gas and minerals.
- International Solar Alliance: India has allocated $2 billion for solar projects in Africa, further strengthening ties.
- African Policy Initiatives: Africa is diversifying from a ‘pit-to-port’ model, with countries like Tanzania, Zimbabwe, Namibia, and Ghana pursuing policies for mineral processing and value addition.
CHALLENGES & OPPORTUNITIES
- China’s Influence: China’s control over the mineral value chain poses economic and security risks for India. Beijing’s significant presence in cobalt mining and its $7 billion ‘minerals-for-infrastructure’ deal highlight the need for alternative partnerships.
- Strategic Collaboration
- Infrastructure Development: Building mining-adjacent infrastructure and identifying strategic projects with host countries are crucial for mutual benefit.
- Responsible Practices: India’s mission should focus on responsible mining practices to align with Africa’s priority of value addition.
INDIAN ADVANTAGES
- Construction Projects: Indian firms have completed numerous infrastructure projects across Africa, including transmission lines, hospitals, and railways.
- Technical Cooperation: India has signed MoUs with Zambia and Zimbabwe for geological mapping and capacity building, and the Indian Technical and Economic Cooperation has trained 40,000 Africans in 10 years.
- Technology Start-ups: Indian technology companies offer innovative solutions for mining exploration, extraction, and ore beneficiation, presenting value-added opportunities for African governments.
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