Mining & exploration PSUs to look for more mineral assets abroad

16 May 2024 , 03:39 PM

Public sector undertakings (PSUs) are preparing a concerted plan to safeguard vital mineral resources abroad. A senior government official announced on Wednesday that Khanij Bidesh India Ltd. (KABIL), National Mineral Development Corporation (NMDC), ONGC Videsh Limited (OVL), and Coal India Ltd. (CIL) would be looking for vital minerals mines abroad.

PSUs with overseas offices will be give preference to obtaining essential minerals in nations where they already have a presence, union mines secretary V L Kantha Rao told reporters outside of the workshop. While NMDC is operating in Australia, CIL is already aggressively chasing lithium blocks in Chile.

In order to secure vital minerals abroad, National Aluminium Company Ltd. (Nalco), Hindustan Copper Ltd. (HCL), and Mineral Exploration and Consultancy Ltd. (MECL) founded a joint venture called KABIL. It was granted exclusive exploration rights to five lithium blocks in Argentina in January of this year. A vital component of batteries used in many different industries, including the manufacture of electric vehicles, is lithium. India is conducting feasibility assessments for five lithium and cobalt mines in Australia.

In April of this year, it was reported that India was attempting to introduce processing technology into the nation by contacting important suppliers of essential minerals. Following the government's launch of auctions for vital mineral mines, the action was nearly completed. India established its own list of 30 essential minerals for the first time in June 2023.

It was also mentioned that the government needs to immediately reevaluate its mineral requirements for energy transition and net-zero commitments in order to fulfill its international obligations to reduce carbon emissions.

Critical minerals including cobalt, graphite, lithium, and rare earth elements (REE) are essential for making electric vehicle (EV) components and are utilized in cutting-edge innovations for a variety of industries, including telecom, energy, agriculture, defense, and pharmaceuticals.

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