Centre weighs grand plan for critical mineral show

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Subscribe to enjoy similar stories. New Delhi: India is putting in place an ambitious plan to secure access to critical minerals in foreign countries by buying majority stakes in overseas companies, two people aware of the development said.

This comes at a time when its neighbour China has already captured a big chunk of the global critical mineral supply chain through stakes in overseas mines and its significant processing prowess. The plan, drafted by the Union commerce and industry ministry in discussion with the Prime Minister’s Office (PMO), envisages creating country-specific dedicated investment funds to acquire majority equity stakes in foreign critical minerals companies to generate capacity for India, the people cited above said on condition of anonymity.

The move comes on the back of India’s growing need for critical minerals and rare earth elements (REEs), which are essential for high-tech industries such as green energy, green mobility and electronics. India imports most of its needs for these minerals from imports, despite having reserves of its own.

“The dedicated investment funds initiative is part of India’s efforts to secure critical minerals including forging strategic partnerships with resource-rich countries such as Australia, Chile, and Argentina to establish long-term supply agreements," said the first person cited above. Also read | Budget 2024: Why Nirmala Sitharaman waived import duty on critical minerals As part of the plan, the commerce ministry will leverage its trade connections across the world to send delegations to critical mineral rich countries in upcoming months to buy majority equity stakes in foreign companies through state-run Khanij Bidesh India Ltd (KABIL).