India recently secured a 9,000 sq km mining block in Zambia, where exploration for copper and cobalt will be carried out. The move is part of overseas mining expansion as the country is witnessing declining production of these minerals.
India’s Mineral Asset Acquisition Strategy
- Copper-cobalt mining in Zambia: Exploration rights secured for 9,000 sq km area. Led by Geological Survey of India (GSI), mining rights expected in 2-3 years. Zambia ranked 7th in copper and 14th in cobalt (2023).
- Collaboration with other African countries: India working on acquisition of critical minerals in Congo, Tanzania, Mozambique and Rwanda.
- Activities in South America and Australia: Minerals Abroad India Limited (KABIL) active in exploration of lithium and cobalt resources in Argentina, Chile and Australia.
- List of critical minerals: India identified 30 critical minerals, including lithium, cobalt, graphite, nickel and rare earth elements (REEs).
India’s Copper Exploration Initiative
Declining domestic production
- Copper production to be 78 million tonnes in 2023-24, 8% lower than 2018-19.
- Increased dependence on imports.
Copper–cobalt exploration in Zambia
- India acquires exploration rights over 9,000 sq km area.
- The region is known for high-quality copper and cobalt deposits.
- Geological Survey of India (GSI) will lead the exploration.
Importance of Copper
Key role in defence sector
- Copper is the second most used metal in the US defence industry.
- Demand likely to exceed supply by 2035, driving up mining and domestic production.
Global Copper Supply Situation
- China has about 50% of the world’s smelting and refining capacity.
- China is controlling copper ore supply to balance excessive production, which may affect the global supply chain.
India’s Foreign Copper Strategy
Decline in Domestic Copper Production
- Copper is an important mineral for India.
- Domestic production in 2023-24 was 3.78 million tonnes, down 8% compared to 2018-19.
- Hindustan Copper Limited (HCL) production declined 6% in April-January 2023-24.
Increasing dependence on imports
- Import of copper ore worth ₹26,000 crore in 2023-24, double that of 2018-19.
- India has large copper mines, but intensive exploration is required before mining.
Overseas expansion strategy
- India is acquiring copper mines in Zambia, Chile and DRC.
- These regions are attractive because of high-purity reserves and favourable mining policies.
- However, geopolitical risks remain a challenge for foreign investment.