India targeting Australian critical minerals

India’s strategic initiative to explore and invest in critical minerals within Australia could be a major development for the local mining sector.

India, one of the world’s fastest-growing major economies, announced on Thursday its aim to secure raw materials including lithium, cobalt and copper from nations such as Australia, Zambia and the Democratic Republic of Congo.

Companies such as Coal India, NMDC and ONGC Videsh are reportedly already exploring for critical minerals in Australia, having signalled their intention in May last year.

“Coal India is getting active … NMDC is already active in Australia. They have some gold mines in Australia and are also looking at lithium mines in Australia,” India Mines Secretary V L Kantha Rao said.

India’s approval of a $US1.88 billion investment to develop its critical minerals sector underscores its commitment to securing essential raw materials for the renewable energy transition.

This substantial investment could open avenues for Australian mining companies to collaborate, leading to increased exploration, extraction, and processing activities within Australia.

In December 2022, the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) eliminated tariffs for most Australian critical minerals.

This agreement enhances India’s access to these resources and promotes growth in Australian mineral exports by reducing customs duties on key products.

The Minerals Council of Australia at the time said the agreement “opens the door for mining trade and investment growth”.

“India has represented an enormous potential opportunity for Australian mining and METS companies, and exporters more generally,” Minerals Council of Australia chief executive officer national Tania Constable said.

“A deeper resources trade and investment relationship with India will broaden our economic, technology and trade coordination adding to the deep people-to-people links between the two nations.”

A critical minerals collaboration between India and Australia would deepen their economic and strategic partnership.

The Lowy Institute said that both countries “together create a powerful new pathway for stronger bilateral cooperation in a sector that underpins the global green transition”.

“Australia’s burgeoning critical minerals sector will benefit from India’s economies of scale,” the Lowy Institute said.

“India gains from a reliable supplier in Australia in its domestic ambitions for manufacturing-led growth in sectors such as electronics, semiconductors, electric vehicles, solar and green technology.

“This cooperation could help Australia meet its goals of becoming the ‘major powerhouse of the world in critical minerals by 2030’ set out in its Critical Minerals Strategy.”