Whalesbook
De-risking Overseas Investments
Securing critical mineral supply chains through foreign acquisitions has seen private firms hesitate, worried about their capital being stranded by sudden geopolitical issues. To help, New Delhi is working with the World Bank and Asian Development Bank on financial tools to offset these risks. This effort is key to India’s self-reliance in resources vital for its industrial and technological growth.
India's Global Mine Exploration
India has already auctioned 46 blocks of critical minerals domestically. It is also actively exploring overseas opportunities, with production from five lithium blocks in Argentina expected soon. Investment prospects for lithium are being pursued in Argentina, Australia, and Brazil. Hindustan Copper is seeking a block in Chile, while a consortium of Public Sector Undertakings (PSUs) has bid for four blocks there, with final paperwork pending government approval.
Metal Supply Amid Global Crises
Officials confirmed that metal production has not dropped despite the West Asia crisis. However, prices have risen as suppliers invoked force majeure clauses. Smelting operations are facing pressure, partly due to market policies by some countries, not just the West Asia situation. GAIL and Indian Oil Corporation Limited (IOCL) have assigned officers to assess needs for explosives, and IOCL is building new plants near mining sites. Discussions are also underway for long-term international agreements to boost potash supply for fertilizers.
Profiting from Byproducts and New Tech
Challenges remain in investing capital to process waste materials like red mud and fly ash, though technology improvements could be a game-changer. Many companies initially found these prospects not economically viable. However, several PSUs are now profiting from byproducts such as silver, driven by high metal prices. Hindalco has started Gallium production, and Tantalum output has also begun, showing progress in using mineral resources more broadly.