India’s Role in Securing Critical Mineral Resources from Africa

Critical Mineral Resources: India has invested approximately $75 billion in Africa, with a primary focus on acquiring energy assets and mining rights. This significant investment includes reaching out to resource-rich countries in both Africa and Latin America to secure access to critical minerals vital for India’s economic growth and its green transition.

Key Government Initiatives

Critical Mineral Mission (Union Budget 2024-25): This mission is central to securing the supply of critical minerals essential for India’s green transition and overall economic growth. Its objectives include expanding domestic production, recycling, and incentivizing overseas acquisitions of critical minerals.

Mines and Minerals (Development and Regulation) Amendment Bill, 2023: The bill removes six minerals from the ‘atomic list,’ encouraging private sector participation in exploration. This aligns with India’s push for self-reliance in key minerals like lithium, cobalt, and rare earth elements.

Khanij Bidesh India Limited (KABIL): Established in 2019, KABIL focuses on securing overseas critical mineral assets. In 2024, it signed its first lithium exploration deal in Argentina, marking a crucial milestone for securing lithium, which is critical for India’s energy storage and electric vehicle sectors.

Africa’s Importance to Global and Indian Strategic Priorities Critical Mineral Reserves: Africa holds 30% of the world’s critical mineral reserves, making it a critical partner for India’s supply chain needs.

Existing Partnerships: India maintains strong political, economic, and historical ties with Africa, backed by a $98 billion bilateral trade relationship (2022-23). Indian investments in Africa have been focused on energy and mining sectors, with $75 billion already invested in the region.

African Green Mineral Strategy: African nations are promoting minerals-based industrialization. Countries like Tanzania, Zimbabwe, and Namibia are focusing on adding value to raw minerals, presenting opportunities for India to align its critical mineral strategies with Africa’s developmental goals.

Challenges in Africa

1. Sudan and Syria Crises:

The humanitarian crisis in Sudan, with over 10 million displaced since April 2023, poses a significant challenge due to its resource wealth and strategic location.
Both Sudan and Syria face internal conflicts driven by authoritarian regimes and foreign interventions, which have led to severe instability.

2. India’s Strategic Interests in Sudan:

India’s trade with Sudan amounted to $2,034 million in 2022-23, with significant investments in Sudan’s oil sector worth $2.3 billion.
India has historical ties with Sudan, reinforced by educational exchanges and medical tourism. The ongoing conflict may require India to engage diplomatically and provide humanitarian support to protect its investments and interests.

3. China’s Debt in Africa:

China has provided approximately $170 billion in loans to African countries from 2000 to 2022, representing only 12% of Africa’s total debt. However, undisclosed Chinese loans raise concerns about transparency and debt sustainability.

The Dominance of China in Critical Minerals

China dominates the global supply chain for critical minerals, particularly in cobalt mining in Africa, which presents geopolitical risks for India.
Recently, China signed a $7 billion minerals-for-infrastructure deal, showcasing its strategic approach to securing resources in Africa. India must counter this influence to maintain access to critical minerals.

Opportunities for India: The Way Forward

Collaborating on Infrastructure and Technology: India can support Africa’s critical mineral sector by investing in infrastructure like railways and power grids, while also providing technological solutions through its tech start-ups for enhanced exploration and processing.

Strengthening Diplomatic and Economic Ties: By leveraging historical and economic partnerships, India can collaborate on strategic projects, helping Africa’s industrialization goals while securing critical resources for India’s economy.

Reducing Dependence on China: Engaging more deeply with African nations will enable India to diversify its critical mineral supply chains, mitigating the risks posed by China’s dominance in the global market