Hindu Editorial Analysis : 14-September-2024
In the Union Budget for 2024-25, the Indian government introduced the Critical Mineral Mission. This initiative aims to ensure access to crucial minerals that are essential for the country’s energy transition and technological advancements. With limited domestic reserves of important minerals like lithium, cobalt, and rare earth elements, this mission is vital for India’s future.
Key Objectives of the Mission
The Critical Mineral Mission focuses on three primary areas:
- Expanding Domestic Production:
- The government is encouraging domestic exploration and production of critical minerals.
- The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, allows private companies to explore six minerals that were previously under government control, boosting local supply.
- Recycling of Critical Minerals:
- Given the scarcity of resources, recycling minerals from used batteries and electronics is being prioritized.
- This approach promotes sustainability and resource efficiency.
- Overseas Acquisition of Assets:
- India is actively acquiring critical mineral assets globally through Khanij Bidesh India Limited (KABIL).
- In 2024, KABIL secured a lithium exploration agreement in Argentina, marking a significant achievement in India’s resource diplomacy.
Africa’s Strategic Role
Africa plays a crucial role in India’s Critical Mineral Mission, holding 30% of the world’s critical mineral reserves. India’s historical and economic ties with Africa provide a strong foundation for collaboration.
Trade Relations
- India’s bilateral trade with Africa reached $98 billion in 2022-23, with $43 billion from the mining sector. This strong trade relationship supports further collaboration in critical minerals.
Energy Partnerships
- Africa is a major supplier of energy resources, providing 34 million tonnes of oil to India, which makes up 15% of its oil demand. Expanding this partnership into critical minerals aligns with Africa’s goals of diversifying resource exports.
Diplomatic Engagement
- India has strengthened its diplomatic ties with Africa, establishing new missions and engaging with a 3 million-strong diaspora. These connections enhance India’s ability to form partnerships for mineral resources.
Opportunities for Collaboration
Geological Mapping and Infrastructure Development
- India can help Africa transition from a ‘pit-to-port’ model to a value-added mineral processing model.
- Collaborations with Zambia and Zimbabwe on geological mapping and infrastructure projects are promising steps.
Capacity Building
- India’s Indian Technical and Economic Cooperation (ITEC) program has trained 40,000 Africans in ten years, and can further enhance skills for mineral extraction and processing.
Technological Collaboration
- Indian start-ups specializing in mining technologies can provide eco-friendly services, aligning with African governments’ goals for sustainable development.
Challenges: The China Factor
China has a dominant presence in Africa’s mining sector, controlling large portions of the cobalt supply in the Democratic Republic of Congo (DRC). This poses significant challenges for India:
- China’s Dominance:
- China’s strategic investments, like the $7 billion minerals-for-infrastructure deal in the DRC, give it considerable control over key mineral supply chains.
- Overcoming Competition:
- India must offer competitive alternatives to China’s extensive investments. Focusing on sustainable partnerships and transparent practices can help India gain favor with African nations.
The Way Forward
Responsible Mining Practices
India should promote responsible mining to stand out from China’s extraction methods. This includes minimizing environmental damage and ensuring fair trade agreements that benefit local economies.
Leveraging African Policies
Aligning India’s mission with Africa’s policies, such as the African Green Mineral Strategy, can help create long-lasting partnerships that benefit both parties.
Supporting Africa’s Green Energy Transition
India is already investing in solar energy projects in Africa. Extending this cooperation to critical mineral supply chains can create mutually beneficial partnerships, supporting Africa’s development and India’s industrial goals.
Why In News
In the Union Budget 2024-25, the Union government announced the Critical Mineral Mission, aimed at securing access to essential minerals crucial for the country’s energy transition and technology development, while also addressing the need for sustainable practices in resource extraction and management.
MCQs about India’s Critical Mineral Mission
- What is the main goal of India’s Critical Mineral Mission as announced in the Union Budget 2024-25?
A. To increase coal production
B. To secure access to essential minerals for energy transition
C. To enhance agricultural exports
D. To reduce reliance on technology
- Which of the following minerals is specifically mentioned as a critical mineral in the mission?
A. Iron
B. Gold
C. Lithium
D. Silver
- How does India plan to enhance its domestic production of critical minerals?
A. By banning all mineral imports
B. By allowing private companies to explore previously government-controlled minerals
C. By solely relying on international partnerships
D. By reducing exploration activities
- What role does Africa play in India’s Critical Mineral Mission?
A. It is a competitor in mineral resources.
B. It holds a significant portion of the world’s critical mineral reserves.
C. It is primarily focused on agricultural exports.
D. It has no relevance to India’s mineral needs.
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