India's Critical Minerals Push: Oil India, Hindustan Copper Join Forces For Exploration
Oil India Ltd. and Hindustan Copper Ltd. will jointly explore for critical and strategic minerals, including copper, as the country prioritises domestic production to reduce import reliance on China.
The two public-sector companies signed a Memorandum of Understanding (MoU) on Friday to collaborate for the exploration and development of critical and strategic minerals.
Oil India, a legacy crude oil and natural gas explorer, has diversified into critical minerals.
HCL is currently focusing on mining and beneficiation of copper ore and the sale of copper concentrate.
"OIL and HCL's partnership marks a crucial milestone in India's pursuit of self-reliance in critical and strategic minerals including Copper and associated minerals," a statement said.
In June, Rites Ltd. signed an MoU with Hindustan Copper to jointly develop a rapid, reliable and sustainable supply chain of metals and minerals, including critical minerals in India and overseas. The collaboration includes participation in mineral block auctions and the development of mining infrastructure.
India has increased its focus on securing supplies of critical minerals like lithium, copper and cobalt, which are necessary to develop electric cars and green energy grids. The country has finalised a list of 30 critical minerals essential for its economic development and national security.
China controls over 90% of the entire rare earth supply chain in the world. Beijing's recent decision to tighten export controls on rare earth magnets — materials crucial for electric vehicles, wind turbines, and electronics — has pushed New Delhi to accelerate its plans.
India has signed multiple MoUs with countries, including Australia and the EU, to diversify sourcing and support domestic processing capacity.
Earlier this month, the central government approved a Rs 1,500-crore incentive scheme for critical and rare earth minerals. The scheme is part of the National Critical Mineral Mission and is designed as a six-year package.
The scheme's incentives are expected to help develop at least 270 kilo tonne of annual recycling capacity, resulting in around 40 kilo tonne of annual critical mineral production, according to an official release.
This will bring about Rs 8,000 crore of investment and create close to 70,000 direct and indirect jobs, it added.
