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India to sign MoU with Israel and Saudi Arabia for critical minerals

2025-02-27 00:00:00.0 商业标准报-经济和政策原网页

India is set to sign a memorandum of understanding (MoU) with Israel and Saudi Arabia to explore and process critical minerals, with an aim to strengthen New Delhi’s domestic supply and reduce dependence on imports, Union Mines Minister G. Kishan Reddy said on Thursday.

The agreement with Israel involves a technology transfer that will enable the extraction of potassium from seawater, as well as the incorporation of artificial intelligence in mining processes.

The minister said that the Union cabinet approved the agreement during its last meeting and that a policy framework is being drafted, which is expected to be finalised in the coming months.

This collaboration will also facilitate synergy between Israel’s expertise and India’s National Critical Minerals Mission (NCMM).

The MoU with Saudi Arabia follows a strategic meeting between the Indian minister and Saudi Arabia's Minister of Industry and Mineral Resources earlier this month. It is intended to enhance cooperation in the critical minerals sector and explore new investment opportunities between the two nations.

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Similar agreements are also planned with countries like the Democratic Republic of the Congo and Zambia.

Reddy further announced the deployment of 20 nodal officers in international locations that have the potential for critical minerals. These officers, stationed in Indian embassies, will be responsible for identifying critical minerals and overseeing all related matters, including developing action plans with Indian companies operating overseas.

He noted that states such as Telangana, Bihar, and Arunachal Pradesh, which were previously hesitant to join the auction process, are now on board. A total of 14 states are currently participating in India’s minerals action plan, with Assam, Jammu & Kashmir, and Kerala expected to join soon, as discussions are ongoing.

Reddy emphasised that mining activities will generate employment in these states, enhance revenue generation, and contribute to the overall development of the state economies.

To date, 335 mineral blocks have been put up for auction, of which 106 blocks have been successfully auctioned. State governments have received revenue amounting to ？4.15 trillion, with ？2.37 trillion coming in the form of royalties. Jammu and Kashmir is also anticipated to adopt the auction mechanism soon. The central government, in collaboration with the J&K government, plans to tap into the limestone potential after an unsuccessful search for lithium in the region.

Additionally, the central government has decided to test and extract critical minerals from waste dumping, tailings, or rejects, including offshore and petroleum exploration sites. This initiative will commence in the next 90 days across all mining activities, with an action plan being prepared.

Furthermore, the government is initiating the exploration license block auction next month. With this, Jammu and Kashmir will become part of the country’s action plan, specifically regarding limestone extraction.

The production value of minerals for FY24 reached ？1.4 trillion and is projected to be ？1.5 trillion for FY25 (April-December). There has been record production of metal minerals, including iron ore, limestone, and manganese, in India.

The State Index Mining initiative has also been launched to bring about reforms within the states. Announced for FY26, the State Index Mining will evaluate four key indicators- regulatory environment, mineral administration, technical expertise, and sustainability.