India's Global Mineral Grab: Government's Bold Move to Secure Vital Resources Abroad!

The Indian government is actively pursuing a strategy to secure critical mineral assets located abroad. Coal and Mines Minister G. Kishan Reddy stated that policy measures have been enacted, including amendments to the Mines and Minerals (Development and Regulation) Act, 1957. These changes empower Public Sector Undertakings (PSUs) and private companies in India to forge partnerships with resource-rich nations and acquire strategic mineral assets overseas.

A significant move involves expanding the mandate of the National Mineral Exploration Trust (NMET). Renamed the National Mineral Exploration and Development Trust, its objective now includes utilizing funds for mineral exploration and development both within India and internationally. The trust's funding is expected to increase substantially due to a rise in contributions from mining lessees, from 2% to 3% of royalty.

India has already established bilateral agreements with countries such as Australia, Argentina, Zambia, and Chile to facilitate these overseas mining and exploration activities.

In a separate note on coal production, additional secretary Sanoj Kumar Jha mentioned subdued demand from the power sector, leading to a 4.5% decline in Coal India's output between April and October 2025. Despite this, he expressed confidence in meeting future demand and indicated higher coal stocks by year-end.

Impact This news has a moderate impact (6/10) on the Indian stock market, particularly for companies involved in mining, metals, and strategic resource acquisition. It signals government support and policy direction, which can influence investment decisions in these sectors and potentially boost the value of companies that secure overseas assets.

Difficult Terms: Strategic Mineral Assets: Minerals that are considered vital for a nation's economic prosperity, industrial growth, and national security, often with limited supply or concentrated sources. PSUs (Public Sector Undertakings): Companies that are owned wholly or in part by the government. NMET (National Mineral Exploration Trust): A fund established to promote and finance mineral exploration and development activities. Royalty: A payment made to the owner of a natural resource for the right to extract it. Corpus: A sum of money set aside as a permanent fund, the income from which is used for a specific purpose.