29-Mar-2022: India’s Efforts to Attain Self-Reliance in Critical and Strategic Minerals

In order to ensure mineral security of the nation and to attain self-reliance in the area of critical and strategic minerals, the Ministry of Mines has created a Joint Venture company namely Khanij Bidesh India Ltd (KABIL) with participating interest of NALCO, HCL and MECL. KABIL is mandated to identify and acquire overseas mineral assets of critical and strategic nature such as Lithium, Cobalt etc. This initiative aimed at giving further fillip to AtmaNirbhar Bharat will cater to the requirements of crucial sectors such as e-mobility, renewable energy, medicine, aerospace, aviation etc.

Based on a commissioned study and selection criteria, select source countries have been shortlisted for exploring possibilities of mineral asset acquisition abroad. So far, engagements are underway with select source countries such as Australia, Argentina, Bolivia, Chile etc. which are endowed with the cited critical and strategic minerals specifically Lithium and Cobalt in hard rock formations as in Australia and Lithium as brine in the huge tract of SALARs as in Latin American countries. The interface has been the respective Embassies and Missions of India in those countries for sharing of information with respect to prospective mineral acreages primarily with state owned organisations for taking up due diligence and investment decisions.

Pursuant to the engagement with Australia, during the apex level discussion between the Hon'ble Premier of Australia and Hon'ble Prime Minister of India held on 3rdJune 2020, a G2G MoU was signed between Government of India and the Government of Australia through Ministry of Mines and Critical Minerals Facilitation Office (CMFO) respectively for co-operation in the field of mining and processing of Critical and Strategic Minerals.

Under aegis of the G2G MoU, now a detailed MoU with a collaborative framework has been signed between KABIL and  Critical Minerals Facilitation Office (CMFO), under the Department of Industry, Science, Energy and Resources (DISER), Government of Australia on 10th March 2022 for carrying out joint due diligence of select Greenfield and Brownfield projects to identify Lithium and  Cobalt mineral assets for final joint investment decisions and acquisition of the assets in Australia catering to the critical & strategic ecosystem of both the countries. Both India & Australia has committed an initial investment of USD 6 Million for the joint due diligence process in the 50:50 ratio of participating interest. The MoU has also outlined inclusion of any other CPSE as investment partner in the asset acquisition process. An estimated timeline of six months have been envisaged for the due diligence process & further investment decisions.

As part of the ongoing bilateral engagements between Australia and India, the second India-Australia Virtual Summit between Prime Minister Shri Narendra Modi,  Mr. Scott Morrison MP, Prime Minister of Australia was held on21stMarch 2022. Both the Leaders noted that the global low carbon transition requires rapid development of clean technologies and equitable access to critical minerals. They welcomed the signing of a Memorandum of Understanding between KABIL, India and CMFO, Australia for joint cooperation on critical minerals projects. The key principles and objectives of this MoU are as following:

1. To provide a collaborative framework for building an Australia- India partnership in critical mineral eco-system;
2. To support strategic national interest and commercial investment in Australian critical mineral projects; and
3. To develop a robust and commercially viable critical minerals supply chain with the purpose to foster innovation, to support sustainable production and to ensure reliable supplies of the materials needed to fuel sectors like transport, energy, telecommunications, medicine, aviation and defense.

1-Aug-2019: KABIL Set up to Ensure Supply of Critical Minerals

A joint venture company namely Khanij Bidesh India Ltd. (KABIL) is to be set up with the participation of three Central Public Sector Enterprises namely, National Aluminium Company Ltd.(NALCO), Hindustan Copper Ltd.(HCL) and Mineral Exploration Company Ltd. (MECL).

The objective of constituting KABIL is to ensure a consistent supply of critical and strategic minerals to Indian domestic market. While KABIL would ensure mineral security of the Nation, it would also help in realizing the overall objective of import substitution.

The sustained source of mineral and metal commodities is imperative for the transportation and manufacturing segment. Recalling the commitment at the UN Climate Change Conference, Pairs, 2015, where India has pledged to reduce greenhouse gas emissions and opting a greener mode of transportation, the Prime Minister has been emphasizing upon Electric Vehicle Mobility. Therefore it is important to ensure energy storage through batteries. Further segments like Aviation, Defence and Space Research also require minerals with lower weight and high mechanical strength. Among such twelve minerals identified as strategic minerals, which have meagre resource base, Lithium Cobalt are significant.

The KABIL would carry out identification, acquisition, exploration, development, mining and processing of strategic minerals overseas for commercial use and meeting country’s requirement of these minerals. The sourcing of these minerals or metals is to done by creating trading opportunities, G2G collaborations with the producing countries or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries. The new company will help in building partnerships with other mineral rich countries like Australia and those in Africa and South America, where Indian expertise in exploration and mineral processing will be mutually beneficial bringing about new economic opportunities. The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30

The joint venture agreement was signed in the presence of Shri Pralhad Joshi, Hon’ble Minister of Mines, Coal and Parliamentary Affairs. Shri Anil Mukim Secretary (Mines) and other senior officers were also present.