GS Paper 1: Indian Society, Geography: Distribution of Key Natural Resources, Industrialization, Urbanization and Globalization

Note4Students: Examine the geographical distribution of critical minerals like lithium and cobalt, emphasizing Africa’s role in India’s supply chain and industrialization efforts.

Microtheme : Natural Resource Potential

GS Paper 2: Governance, International Relations, and Social Justice: Effect of Policies and Politics of Developed and Developing Countries on India’s Interests, Government Policies and Interventions

Note4Students: Analyze India’s partnerships with African nations to secure critical minerals and how geopolitical competition, especially with China, affects mineral access.

Microtheme : Geo-politics affecting India’s Interest

GS Paper 3: Economy, Environment, Science & Technology, Security: Industrial Growth, Infrastructure Development, Sustainable Development, Energy Security, Inclusive Growth and Development

Note4Students: Study India’s efforts to boost domestic mineral production, develop mining infrastructure in Africa, and secure critical minerals for renewable energy and battery technologies.

Microtheme: Mining and Erosion

GS Paper 4: Ethics, Integrity, and Aptitude: Corporate Social Responsibility and Ethics in Economic Development, Ethics in Governance and International Relations, Environmental Ethics

Note4Students: Evaluate India’s ethical approach to responsible mining and fair-trade agreements with African nations, promoting sustainable development.

Microtheme : Applied Ethics

India’s Critical Mineral Mission

Launched in the Union Budget 2024-25 to secure critical minerals essential for India’s economy.
Focuses on three key areas: expanding domestic production, prioritizing recycling, and acquiring overseas assets.
The amendment to the Mines and Minerals Act (1957) allowed private sector participation by removing six minerals from the atomic list.
KABIL (Khanij Bidesh India Limited) signed a lithium mining agreement with Argentina in January 2024, securing five blocks in the Catamarca province.
However, India’s capacity for mineral exploration and processing is still developing. It also lacks manufacturing expertise in battery components, requiring upskilling of its workforce.

Role of Africa

Role	Description
Abundant Mineral Reserves	Africa holds 30% of the world’s critical mineral reserves, making it crucial for India’s supply chain.
Strong Trade Relations	India’s trade with Africa totaled $98 billion in 2022-23, with $43 billion coming from mining and minerals, reflecting strong existing partnerships.
Energy Investments	India imports 34 million tonnes of oil from Africa, accounting for 15% of its total demand, and invests $2 billion in African solar energy projects.
Strategic Projects	India has signed agreements with Zambia and Zimbabwe for geological mapping, mineral exploration, and capacity building in the mining sector.
Value Addition Focus	African nations are moving towards value addition, offering opportunities for India to support local mineral processing and industrialization efforts.

Opportunities for Collaboration: Enhancing Value Addition

Geological Mapping and Infrastructure Development: India’s expertise in mining infrastructure can help Africa move from a ‘pit-to-port’ model to a value-added mineral processing model. India’s MoUs with Zambia and Zimbabwe to collaborate on geological mapping, mineral deposit modeling, and infrastructure projects are steps in this direction.
Capacity Building: India’s Indian Technical and Economic Cooperation (ITEC) program, which has trained 40,000 Africans in 10 years, can further be used to upskill the workforce for Africa’s critical mineral extraction and processing sectors.
Technological Collaboration: Indian start-ups specializing in mining technologies, tools for exploration, and environmental conservation can provide services that accelerate exploration and extraction in an eco-friendly manner. These innovations align with African governments’ goals to add value to their mineral resources and ensure sustainable development.

China’s Role in the Critical Mineral Supply Chain

China’s strategic positioning in mineral-rich Africa, aligned with its Belt and Road Initiative (BRI), creates a complex geopolitical landscape, forcing India to balance resource dependencies while strengthening its own supply chains.

Dominance in Global Value Chain: China controls the critical mineral supply chain, from asset acquisition to advanced processing and manufacturing, which presents economic and security risks for India.
Influence in Africa: Chinese mining companies dominate cobalt mining, particularly in the Democratic Republic of Congo (DRC), which is home to the world’s largest cobalt reserves.
Strategic Investments: China’s $7 billion “minerals-for-infrastructure” deal with the DRC secures resources vital for global energy transitions, particularly electric vehicles (EVs) and renewable energy technologies.
Challenges for India: India faces tough competition from China for access to critical minerals. China’s established infrastructure and supply chain advantage make it difficult for India to secure these minerals independently.

Way Forward: Strategic and Sustainable Partnerships

Responsible Mining Practices: To differentiate itself from China’s heavy resource extraction methods, India must promote responsible mining practices. This includes reducing environmental degradation, respecting local communities, and offering fair trade agreements that benefit African economies.
Leveraging African Policies: African countries are increasingly pushing for value addition through policies such as the African Green Mineral Strategy. India’s mission must align with these policies to create long-term partnerships that benefit both sides.
India’s Role in Africa’s Green Energy Transition: India is already investing in solar energy projects in Africa as part of the International Solar Alliance. Extending this cooperation to include critical mineral supply chains would create a mutually beneficial partnership that supports Africa’s development agenda and India’s industrial goals.

# ENSURING CRITICAL MINERAL SECURITY

Component	Description	Example
Diversification of Supply Sources	– Geographical Diversification: Reduce dependence on a few countries by sourcing from multiple regions. – Exploration and Development: Invest in domestic mining capabilities to develop untapped resources.	Example: The U.S. aims to diversify its lithium supply sources beyond China by sourcing from Australia and developing domestic lithium mining projects in Nevada .
Recycling and Circular Economy	– Recycling of Minerals: Increase efforts to recycle critical minerals from used products. – Urban Mining: Promote recovery of minerals from electronic waste through advanced recycling technologies.	Example: The EU has implemented policies to boost the recycling of rare earth elements from old electronics, aiming to recover valuable materials while reducing waste .
Strengthening Strategic Partnerships	– Bilateral and Multilateral Cooperation: Strengthen partnerships with mineral-rich countries and engage in global forums. – Supply Chain Agreements: Sign long-term contracts with key producing nations.	Example: Australia and India signed a Comprehensive Economic Cooperation Agreement (CECA), enhancing collaboration on critical minerals, including lithium and rare earths .
Developing Alternative Technologies	– Research and Development (R&D): Invest in alternative materials to reduce reliance on scarce minerals. – Innovation in Extraction: Support innovations to extract minerals sustainably and efficiently.	Example: Researchers are developing methods to extract lithium from brine more efficiently, reducing the environmental impact compared to traditional methods .
Strategic Stockpiling	– National Reserves: Create or expand stockpiles of critical minerals to buffer against supply disruptions. – Public-Private Partnerships: Engage private sectors in stockpile management and distribution.	Example: The U.S. Department of Defense has been working on building a strategic reserve of critical minerals like rare earth elements to ensure supply during geopolitical tensions .
Promoting Sustainable Mining Practices	– Environmentally Responsible Mining: Minimize environmental degradation with sustainable practices. – Social and Ethical Sourcing: Ensure fair labor practices and respect local community rights.	Example: The Mining and Minerals Policy for Australia emphasizes the need for responsible mining practices, including community engagement and minimizing environmental impacts .
Governmental Policy and Regulation	– Regulatory Reforms: Streamline regulations to reduce delays while ensuring environmental standards. – Incentives for Mining Investments: Offer financial support to companies involved in critical mineral extraction.	Example: Canada’s government introduced tax incentives for companies investing in critical mineral projects, aimed at boosting domestic production .
Resilient Infrastructure Development	– Supply Chain Infrastructure: Develop robust infrastructure for transportation, storage, and processing of critical minerals.	Example: The European Union is investing in infrastructure to support the extraction and processing of critical minerals, including roads and ports .