In 2015, India's Prime Minister Narendra Modi visited Mongolia. He was the first Indian PM to do so. India needed a small piece of Mongolia's vast reserves of coal, copper and other minerals. For years, policymakers explored routes through China and, later, Russia. Each came with logistical and geopolitical problems.
More than a decade later, that has reached a notable step. Last month, Steel Authority of India Ltd. (SAIL) brought one tonne of Mongolian coking coal to India for testing by flight.
As India grows, it will need more coal, copper, lithium, rare earths and other minerals. Some are scarce at home, while others lack adequate processing and refining capacity. That is why India is looking overseas for mines, offtake agreements and long-term supply deals. But signing an agreement is only the first step.
Resources still have to move from exploration and mining to processing, transportation, and finally to an Indian manufacturer. That takes time. This one-tonne Mongolian shipment makes that clear.
India's Lithium Play Across Continents
Established by National Aluminium Corporation (NALCO), Hindustan Copper and Mineral Exploration and Consultancy Limited (MECL), Khanij Bidesh India Limited (KABIL) has been tasked with securing minerals overseas.
Its most important project is in Argentina, where it has rights to five lithium-brine blocks. The project has moved more slowly than initially expected, with commercial production now expected around 2030.
India has also explored Australian lithium assets. KABIL, along with other public sector enterprises, has explored five Australian lithium projects. The consortium lost competitive bids for two projects to South Korea's POSCO, while its evaluation of two others is ongoing. A fifth project was found unsuitable for investment.
High valuations, volatile lithium prices and strong international competition made these deals difficult. India also lacks a well-developed value chain from lithium ore to battery materials and cells, making such investments harder to justify commercially.
NMDC is pursuing a broader approach through its Australian subsidiary Legacy Iron, which has interests across iron ore, nickel, lithium and rare earths.
Lohum, India's critical minerals company, had a different journey in Zimbabwe. The company has acquired rights to 10 lithium-bearing blocks and shipped its first lithium ore last month. It plans to invest around $100 million in Zimbabwe while also developing downstream battery-material capacity in India. The company is also looking for nickel assets in Indonesia and the Philippines.
This year, Zimbabwe suspended exports of raw minerals and lithium concentrates to encourage more processing within the country. For Indian companies, that means they may have to process the mineral in the host country before sending it to India. That means more investments abroad.
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Lloyds & Adani Tap Copper's Immediate Need
Now, turn to copper. India's growing demand for copper makes an urgent case to secure the metal before it's too late. Without significant new mine development, India's copper concentrate import dependence could rise to 91–97% by 2047, according to the Ministry of Mines.
That gives Indian companies a strong commercial reason to look for copper mines overseas. And two of the biggest efforts are coming from Lloyds Metals and Adani.
Lloyds Metals and Virtus, a US-based mining company, acquired Chemaf, a copper and cobalt producer in the Democratic Republic of Congo (DRC), through a distressed-asset transaction. The deal gave them control of both mines and processing facilities. Like Zimbabwe, the DRC is increasingly pushing for more local beneficiation.
Adani Enterprises is pursuing another route: its wholly owned subsidiary Kutch Copper operates a copper smelting and refining complex at Mundra. It is exploring opportunities to secure raw materials.
In Australia, Kutch Copper has signed a non-binding Memorandum of Understanding (MoU) with Caravel Minerals for potential funding and long-term copper offtake. The project is still being developed, with a final investment decision targeted for 2027 and production still several years away. It has also signed an MoU with Chile's Codelco to examine three copper projects.
Hindustan Copper is also separately working with Codelco.
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Other Deals
There's more.
Hyderabad-based Midwest is exploring rare-earth opportunities in Indonesia, while Deccan Gold is exploring lithium and other critical minerals in Mozambique. Sakariya Mines is developing a graphite project in Tanzania. Most of these projects remain at the exploration or evaluation stage.
Meanwhile, Coal India is exploring lithium opportunities in Chile and other minerals. It has also set up a commodity trading platform in Singapore to explore opportunities in global mineral markets.
At the more mature end, JSW Steel and International Coal Ventures Pvt. Ltd. (ICVL) have used overseas coal assets in Mozambique and elsewhere to support their Indian steel operations.
Final Take
Ultimately, the real test is not what India acquires but what reaches Indian factories. An MoU, a mining block or an overseas acquisition is only the start. The resource still has to be mined, processed, transported and delivered at a competitive cost.
Several challenges may arise in the process. The ore may be difficult to process. Mines need roads, railways, power and water connectivity. Host country rules can change, local opposition can emerge, and commodity prices can move against the project. By the time a mine starts producing, the economics may look different.
Although India's steps are in the right direction, they remain modest compared with India's growing dependence, and most projects are still years away from meaningful production.
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