Partnerships with Africa can help secure India’s Critical Mineral Mission

Source: The post partnerships with Africa can help secure India’s critical mineral mission has been created, based on the article “Africa can make India’s ‘critical mineral mission’ shine” published in “The Hindu” on 6th August 2024.

UPSC Syllabus Topic: GS paper2-international relations-Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

Context: The article discusses India’s Critical Mineral Mission, which aims to increase domestic production, recycle minerals, and secure mineral resources from overseas. It highlights India’s partnerships with Africa and the challenges posed by China’s dominance in the mineral supply chain.

For detailed information on Critical Mineral Mission of India read this article here

What is India’s Critical Mineral Mission?

1. Launched in the Union Budget 2024-25 to secure critical minerals essential for India’s economy.
2. Focuses on three key areas: expanding domestic production, prioritizing recycling, and acquiring overseas assets.
3. The amendment to the Mines and Minerals Act (1957) allowed private sector participation by removing six minerals from the atomic list.
4. KABIL (Khanij Bidesh India Limited) signed a lithium mining agreement with Argentina in January 2024, securing five blocks in the Catamarca province.
5. However, India’s capacity for mineral exploration and processing is still developing. It also lacks manufacturing expertise in battery components, requiring upskilling of its workforce.

How can Africa be a part of India’s supply chain?

1. Abundant Mineral Reserves: Africa holds 30% of the world’s known critical mineral reserves, making it essential for India’s supply chain.
2. Strong Trade Relations: India’s trade with Africa totaled $98 billion in 2022-23, with $43 billion from mining and minerals, showing established ties.
3. Energy Investments: India imports 34 million tonnes of oil from Africa, accounting for 15% of its total demand. India is also investing $2 billion in African solar projects.
4. Strategic Projects: India has signed agreements with Zambia and Zimbabwe to collaborate on geological mapping, mineral exploration, and capacity building.
5. Value Addition Focus: African nations are shifting towards value addition, creating opportunities for India to support local mineral processing and industrialization efforts.

What role does China play?

1. China dominates the global critical mineral value chain, creating economic and security risks for India.
2. China has early acquisition of assets and advanced processing and manufacturing capabilities, which gives it significant influence.
3. Chinese mining companies have a large presence in cobalt mining in the Democratic Republic of Congo.
4. China recently signed a $7 billion “minerals-for-infrastructure” deal with the Democratic Republic of Congo, further strengthening its position.
5. This control over resources poses challenges for India as it competes for access to critical minerals needed for its own economic and energy needs.

How is India responding to these challenges?

1. India is leveraging its construction and infrastructure expertise in Africa, having completed projects in 43 countries. This includes hospitals, transmission lines, and railway lines.
2. India also trains African professionals through programs like the Indian Technical and Economic Cooperation, helping to build a skilled workforce for mining and energy sectors.

Question for practice:

Evaluate how India’s partnerships with Africa can help secure critical minerals and reduce its dependence on China’s mineral supply chain dominance.