Earlier in January, the mines ministry held two meetings with industry stakeholders to discuss opportunities for mining of critical minerals in Sri Lanka and Australia.
Written by Arunima Bharadwaj May 23, 2024 financialexpress.com
The island nation holds large reserves of vein graphite, one of the purest forms of natural graphite. (Reuters)
After scouting for critical minerals in Australia and some African nations, India is now in preliminary talks with Sri Lanka to acquire graphite blocks for mining, sources aware of the development told FE.
“We had a discussion with Sri Lanka on Monday. They have the purest form of graphite and are ready to cooperate with India,” one of the official sources said.
Earlier in January, the mines ministry held two meetings with industry stakeholders to discuss opportunities for mining of critical minerals in Sri Lanka and Australia.
The ministry is now in the preliminary stage of discussion with the island nation and is likely to prepare a Memorandum of Understanding soon. “Firstly, we will prepare an MoU and then will form Joint Working Groups to take it forward,” said another source. “Teams from both the countries will review what are the possibilities. Private companies will also go.”
The government’s primary motive is to procure reserves of important minerals across the world, the source noted, adding that the government is keen to promote participation of private companies in the segment.
The island nation holds large reserves of vein graphite, one of the purest forms of natural graphite. Graphite, also categorized under critical minerals, is used in lithium ion batteries which typically find use in making of electric vehicles (EVs).
Apart from exploring mineral reserves overseas, the government is also pushing domestic mining of critical minerals via auction. In its second tranche of critical minerals auction, 6 out of 18 blocks put under auction contain graphite with three each in Madhya Pradesh and Arunachal Pradesh.
The country imported $38.68 million of natural graphite in the financial year 2023-24, up almost 6% from $36.59 million in FY23, data from the commerce ministry showed.
Additionally, the government is in discussions with 20 different countries for exploration of minerals of which 13-14 countries are said to have critical minerals reserves, as per the source.
Some other countries where the government is scouting for possible critical mineral reserves are Zambia, Mozambique, South Africa, Tanzania, Brazil, Chile, Democratic Republic of the Congo, and Argentina. The mines ministry intends to add more countries to the list.
In Tanzania too, the government is eyeing graphite reserves along with reserves of niobium which is used in making aircraft parts and alloys, while in the Democratic Republic of the Congo, the government will look for reserves of copper and cobalt.
India and Sri Lanka Discuss Acquisition of Critical Graphite Mines
By Vasant Shah Updated: Wednesday, May 22, 2024, Good Return
India is currently engaging in discussions with Sri Lanka to secure graphite mines, highlighting the increasing demand for this critical mineral, essential for the manufacturing of anodes in lithium-ion and other types of batteries. The Indian government's initiative, as part of its strategy to ensure a steady supply of critical minerals, involves negotiations at a preliminary stage with the Sri Lankan government for acquiring high-quality graphite mines located in the island nation.
Graphite is among the 30 critical minerals identified by the Indian government last year, underscoring its significance in the country's push towards enhancing its battery manufacturing capabilities. This move is part of a broader strategy where public sector companies such as Coal India, NMDC, and ONGC Videsh Ltd (OVL) are set to actively seek out critical mineral assets overseas. OVL, the international investment arm of the state-owned Oil and Natural Gas Corporation, along with other public sector enterprises, already has a footprint in foreign territories.
In addition to graphite, India is also exploring partnerships with Chile to access vital copper and lithium mineral assets. These minerals are crucial for the development of clean energy technologies, including wind turbines, electric vehicles, and electricity networks. The focus on copper, lithium, nickel, and cobalt reflects India's commitment to supporting the global transition towards renewable energy sources.
Khanij Bidesh India Ltd (KABIL), a joint venture formed by National Aluminium Company Ltd (Nalco), Hindustan Copper Ltd (HCL), and Mineral Exploration and Consultancy Ltd (MECL), represents another strategic effort by India to secure mineral assets abroad. Owned by three major public sector undertakings, KABIL's mission is to scout for mineral resources internationally, further emphasizing India's proactive approach in bolstering its mineral security. The pursuit of graphite mines in Sri Lanka and partnerships for accessing copper and lithium assets underscore India's strategic efforts to secure essential minerals critical for the country's energy transition goals. As these discussions progress, they mark a significant step towards enhancing India's position in the global clean energy sector.⍐
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