New Delhi: In June, there were two major developments aimed at tapping India’s significant mineral potential, which did not garner as much attention as they should have.
First, India got included in Mineral Security Partnership (MSP), a coalition of 14 people led by the US developed countries, India is now the only developing country to be part of the MSP, an exclusive critical minerals club set up in June 2022 to secure critical mineral supply chains.
Another development that happened last week was the emergence of India comprehensive list Of 30 important minerals.
Even as the world struggles to secure the vital minerals, the two steps, along with several other proposed policy initiatives, could be a major jolt to India in ensuring self-sufficiency and addressing vulnerabilities in the minerals supply chain.
India is dependent on China and other countries to meet its requirement of critical minerals, including rare earth elements (REEs), which are the building blocks of modern technologies.
From aerospace to defense industry, from electronics (mobile phones, laptops) to electric vehicles, solar panels, semiconductors, wind turbines, high-tech industries, telecommunications, security technologies – important minerals and REEs are used in many industries.
They are called critical because their lack of availability or even the existence, concentration of extraction or processing in certain geographic locations can lead to supply chain fragility and disruption, threatening economic development and national security.
experts have said India’s inclusion in the MSP is “significant” as it is a group of countries with great technological capabilities in geology and mining, mineral processing and metallurgy. India’s inclusion also provides an international balance to the grouping, whose members have so far been developed countries.
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What does MSP mean for India?
it was just last june Prospectors and Developers Association of Canada ConferenceLargest mining event held in Toronto, Canada, attended by the US and its major partner countries – Australia, Canada, Finland, France, Germany, Japan, Republic of Korea, Sweden, the United Kingdom, the United States and the European Union. Commission – announced setting up of Mineral Security Partnership. Italy joined the group in February this year.
According to a media note released by the US State Department on June 14 last year, the goal of the MSP is to “ensure that critical minerals are produced, processed and recycled in a manner that helps countries achieve their full potential.” economic development benefits of their geological endowment”.
The note said that MSP will help catalyze investment from governments and the private sector for strategic opportunities across the entire value chain – that adhere to the highest environmental, social and governance standards.
Former Indian foreign secretary Ranjan Mathai, who closely follows issues related to energy security, told ThePrint, “As the first major developing country to join the group, India provides it with greater international balance. It should increase efforts for supply chain security, especially given China’s current dominance over the mining, processing and refining of many key critical minerals.
China produces 60 percent of the world’s rare earth elements. It has also become a major player in the refining and processing of important minerals that it does not produce.
Mathai said the move is expected to encourage India to make better use of its great geological potential. He went a step further and said that India needs to go beyond MSP and build significant mineral partnerships with major countries like Japan, US and Australia.
Announced to be inducted into the exclusive Important Minerals Club of India joint statement During Prime Minister Narendra Modi’s visit to America last month.
Senior Mines Ministry officials said becoming an MSP member would help India engage with countries using advanced exploration and extraction technologies and learn from their experience. “This will help us chalk out our roadmap at a time when China is gradually increasing its dominance over key minerals,” said an official on condition of anonymity.
However, MSP is not the only global alliance that India has joined. With the government’s emphasis on securing the critical mineral supply chain, India has entered into partnership with australia In April this year, five key mineral exploration projects in Australia will invest a combined $3 million each.
Australia Production of About half of the world’s lithium, the second largest producer of cobalt and the fourth largest producer of rare earth elements.
Lots of potential, not much done
Rishabh Jain, senior program head at the Delhi-based policy research institute Council on Energy, Environment and Water (CEEW), said that although India has huge geological potential, it has not necessarily done much on the exploration aspects of the mining supply chain . ,
He said, there are 14 companies, which are recognized for exploration in India, but the challenge is in finding the minerals.
Jain, who heads the market intelligence vertical, said, “Globally too, many countries, including Congo, Australia, Chile and Argentina, export these minerals from countries with processing capabilities or manufacturing capabilities of raw materials or have historically export.” Energy Finance Center of CEEW.
This is where a global alliance will help, he added. “It’s important to be part of the conversation.”
Jain said that till now, MSP was only with developing countries Some One of the biggest demands. “Since India is the only voice developing countriesThis is a great opportunity to take forward some of the discussions these nations are facing, talk about real life challenges and seek support from developed nations who have technology, resources.
“A lot of these facilities are in China, some are in Europe. This is important as we intend to secure some of these supply chains,” he said.
The April 2023 working paper “Assessment of Minerals Severity for India” released by the Center for Social and Economic Progress (CSEP), a public policy think tank working in the energy sector, states that the complex with high concentrations in critical minerals There are global supply chains. extraction and processing countries, resulting in higher supply risks.
“For example, China produces 60 percent of the world’s REE and 34 percent of molybdenum. About 69 percent of cobalt is mined in the Democratic Republic of Congo, while China accounts for the majority (65 percent) of the global mineral supply.”
“Australia produces 52 per cent of the world’s lithium, with China a major importer and processor of 58 per cent of the global supply,” the paper said. South Africa mines 72 percent of the world’s platinum production.”
low private sector participation
One of the problems in India is it is too small when it comes to important minerals. Private sector participation.
Dr. Amit Tripathi, director of MPXG Exploration, a private company that conducts mineral exploration and exploration management in Africa and other countries, said the kind of restrictions India has are nowhere else in the world.
Tripathi said, “Governments outside do not get into this business.”
India has the world’s largest rare earth resource potential, but it remains largely untapped. He said, adding, “When you do not have the raw material, you cannot develop any downstream manufacturing unit. India does not have any raw material for hard REEs and hence has not been able to manufacture any processed products such as rare earth permanent magnets.
Rare earth permanent magnets are used in all electronic components. They are also used in electric vehicles as the process requires strong magnets Build lightweight electronic high efficiency motors.
India still has a long way to go when it comes to harnessing its vast geological potential for vital minerals. This is the reason why joining alliances like MSP along with policy initiatives like bringing out the list of critical minerals and finalizing an important minerals policy is very important for India’s energy security.
(Edited by Smriti Sinha)