Representatives from Coal India Limited, NLC India Ltd, and NTPC Ltd, who attended the meeting, have shown keenness in acquiring lithium, cobalt, and graphite assets abroad.
US-Led Minerals Security
The Ministry of Union Mines has put forward a proposal to share critical mineral block proposals from partner countries in the US-led Minerals Security Partnership (MSP) with central public sector undertakings or PSUs. This would enable the PSUs to acquire critical mineral assets from abroad. In a meeting held on October 30, 2023, the ministry has also suggested that the PSUs provide a clear financial mandate to their relevant subsidiaries in order to expedite the acquisition process. Representatives from PSUs such as Coal India Limited, NLC India Ltd, and NTPC Ltd, who were present at the meeting, have shown interest in obtaining lithium, cobalt, and graphite assets from overseas.
According to the minutes of the meeting obtained through the RTI by The Indian Express, VL Kantha Rao, Secretary, Ministry of Mines, pledged to offer full assistance to PSUs in acquiring crucial mineral assets overseas. This assistance includes sharing information on certain block proposals received through the MSP. It is worth noting that India became a member of the MSP in June 2023, during Prime Minister Narendra Modi’s visit to the US.
The MSP is an international initiative spearheaded by the United States, which brings together thirteen nations such as the United Kingdom, Australia, France, and Germany, along with the European Union. Its primary objective is to stimulate both public and private investments in critical mineral supply chains on a global scale. Presently, the collaboration is actively involved in establishing a platform for cooperation on critical minerals and metals, facilitating the exchange of knowledge and expertise. Additionally, they are working together to establish a resilient supply chain for battery materials and jointly developing a minerals processing facility in South America.
Kantha Rao further suggested the promotion of financial independence among pertinent subsidiaries to “ensure prompt implementation upon receiving feasible proposals.” He cited the case of ONGC Videsh Limited, a wholly-owned subsidiary and international division of Oil and Natural Gas Corporation Limited (ONGC), responsible for the exploration and development of oil and gas reserves abroad. Additionally, he mentioned NTPC Mining Limited, a wholly-owned subsidiary of NTPC, which presently manages the coal mining operations of the thermal power utility in India.
During the meeting, M. Nagaraju, Additional Secretary of the Ministry of Coal, provided information that Coal India Limited (CIL) and NLC India are keen on acquiring crucial mineral blocks abroad. He requested the assistance of the ministry and KABIL, a central public sector enterprise (CPSE) under the mines ministry, in this endeavor. It is worth mentioning that KABIL recently entered into an agreement with a state-owned company in Argentina to investigate and develop five lithium blocks in the South American nation.
According to a report on the mines ministry’s website, Asheesh Kumar, the General Manager at CIL, mentioned that the PSU is keen on acquiring lithium and cobalt blocks in Australia. In March 2023, the Union Minister of Coal and Mines and the Australian Minister for Resources identified two lithium and three cobalt blocks for investment by KABIL. However, both CIL and KABIL have not provided any response to a query seeking clarification on the extent of their collaboration in exploring critical mineral projects in Australia.
CIL made an announcement on January 18 regarding its plans to venture into the mining of critical minerals in India. This initiative will commence with the exploration of a lithium block that CIL expects to obtain from the central government. In 2023, CIL modified its Memorandum of Association (MoA) to include non-ferrous and critical minerals, aligning with the PSU’s increasing dedication to critical minerals. Previously, NLC India had shown interest in participating in the ongoing auction of twenty critical mineral blocks initiated by the mines ministry in November 2023.
During the October meeting, Kantha Rao suggested that ministries and PSUs interested in critical mineral assets abroad should engage international consultants. These consultants would be responsible for conducting thorough studies, compiling comprehensive reports, and overseeing due diligence procedures for potential projects. Kantha Rao also emphasized the importance of maintaining communication channels with Indian missions abroad, as embassies can facilitate the smooth acquisition of overseas projects.