India’s Strategic MoU with UAE Firm to Secure Critical Minerals for Sustainable Development
Summary
India’s ONGC Videsh Ltd, Oil India Ltd, and Khanij Bidesh India have signed an MoU with UAE’s International Resources Holding to collaborate on global critical mineral projects, aimed at securing resources crucial for renewable energy and advanced technologies. This initiative aligns with India’s Critical Minerals Mission to enhance domestic and international resource acquisition, amidst China’s market dominance.
India’s prominent international oil and gas exploration company, ONGC Videsh Ltd (OVL), alongside Oil India Ltd (OIL) and Khanij Bidesh India (Kabil), has entered into a memorandum of understanding (MoU) with the United Arab Emirates-based International Resources Holding RSC Ltd (IRH). This agreement was announced by the Oil and Natural Gas Corporation Limited (ONGC) and seeks to foster collaboration in the acquisition and development of critical mineral projects on a global scale. The MoU emphasizes initiatives for identifying, acquiring, and progressing on significant mineral projects, with particular focus on critical minerals both internationally and domestically. This strategic partnership emerges in the context of China’s prevailing dominance in the critical minerals sector. The collaboration aligns with India’s recent Critical Minerals Mission, aimed at enhancing local production, fostering recycling endeavors, and facilitating overseas acquisition of these vital resources. In June 2023, India’s mines ministry categorized 30 minerals as critical for the nation’s economy, including antimony, cobalt, lithium, and various rare earth elements, all essential for sectors such as renewable energy and advanced battery technologies. The companies involved are state enterprises; OVL is a subsidiary of ONGC, while Kabil, founded in 2019 by National Aluminium Co. Ltd (NALCO), Hindustan Copper Ltd (HCL), and Mineral Exploration Co. Ltd (MECL), aims to secure international critical mineral resources to fortify India’s mineral security. The MoU outlines collaborative plans for project identification, joint due diligence, and the development of a long-term supply chain strategy for critical minerals, underscoring their importance in various high-tech applications. This initiative is a critical component of India’s broader strategy to ensure a stable supply of minerals essential for achieving the country’s net-zero carbon emissions goal by 2070. Similar initiatives include earlier agreements with Australia for mining cooperation, reaffirming India’s commitment to engage with other resource-rich countries, including several nations in Latin America. IRH, a subsidiary of International Holding Co. (IHC), has interests in significant mining assets and recently withdrew from a major acquisition attempt of Zambia’s Konkola Copper Mine, highlighting the dynamic nature of investments in the minerals sector.
India is strategically seeking to bolster its mineral security due to the increasing global demand for critical minerals essential for technologies related to energy storage, renewable energy, and modern electronics. The country is focusing on reducing dependence on foreign sources, particularly from China, which currently dominates the critical minerals market. The establishment of the Critical Minerals Mission illustrates India’s proactive approach to fostering domestic production and exploration capabilities while ensuring access to these important resources through international collaborations.
The memorandum of understanding between India’s OVL, OIL, Kabil, and UAE’s IRH signifies a significant step towards realizing India’s ambitions in critical minerals, reinforcing its strategy to secure essential resources for sustainable development. This alliance not only aims to enhance India’s mineral security but also aligns with global efforts towards clean and renewable energy solutions.
Original Source: www.livemint.com
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