TELF AG analyzes a recent update in India’s mining strategy
A future-oriented economic vision
Among the nations that in recent years have updated their strategy on raw materials, and in particular on all those minerals considered of great importance for economic and sustainable development, there is also India, which recently published a new list of minerals that the government considers of strategic importance for the Indian economy. In recent months, even before the international COP28 meeting, India had been talked about above all for its surprising levels of coal consumption, which, despite the international emphasis placed on the need to focus on renewable energy in various forms, continues to represent one of the country’s main energy sources.
India had already drafted lists of minerals or raw materials potentially beneficial for economic needs, but the recently published list represents a real novelty. For the first time, as the Indian ministerial authorities also stated, the list of minerals considered “critical” was created by examining key sectors’ needs and specific requests, such as those linked to pharmaceuticals, telecommunications, defense, and energy.
The fact that India is increasingly dedicating itself to clean energy has further amplified the role of these minerals, particularly for their ability to boost the global ecological transition and India’s energy conversion. According to New Delhi’s expectations, these minerals should not only contribute to the strengthening of some specific Indian industrial sectors, such as the automotive sector. Still, they will also have a non-negligible weight in strengthening Indian autonomy concerning supplies from abroad.
A holistic approach
The new list was therefore included in a broader, holistic strategy, which provides for economic, social, and environmental aspects and which has a clear link with the vision announced by Indian Prime Minister Narendra Modi, called “Atma Nirbhar Bharat” (literally, “self-reliant India”). The new list of critical minerals would have been drawn up with a very specific purpose, namely to respond in a concrete way to the uncertainties and unpredictabilities that characterize the raw materials market and the various supply chains, often subject to unexpected and sudden interruptions. With a list of minerals, it could be much easier for the government to develop defensive measures to safeguard itself from any unexpected event related to the strategic minerals market. In the medium and long term, this approach could allow India to have easier access to these minerals while also strengthening levels of economic security.
A representative of the Indian Ministry of Mines, in recent months, has defined these minerals as the “building blocks” of the new Indian economy. It is, therefore, no coincidence that India is focusing with renewed enthusiasm on these raw materials, also through specific initiatives undertaken abroad. The publication of the list of these minerals, in this sense, represents a concrete response to the needs of the rapid Indian industrialization that has been witnessed over the last few years. In its drafting, various factors were considered, such as stakeholders’ feedback, the quantity of reserves of certain minerals in India, and the import dependency for some of them.
The 30 minerals included in the list are the following: Antimony, Beryllium, Bismuth, Cadmium, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Platinum Group Elements, Phosphorus, Potash, Rare Earth Elements, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium and Selenium.
