India in talks with World Bank, ADB to offset geopolitical risk for private cos acquiring mines abroad

India is in talks with the World Bank and the Asian Development Bank (ADB) to offset geopolitical risk for private companies acquiring mines abroad. Stating that India’s quest for self-reliance in mineral value chains, including for critical minerals, will need overseas acquisitions to ensure ample availability, Mines Secretary Piyush Goyal said that the move is aimed at helping private companies overcome hesitation in making huge investments abroad over fears of capital remaining stuck in event of an unforeseen geopolitical tension.Stating that India has successfully auctioned 46 blocks of critical minerals and is focusing on supply chain resilience through foreign mine acquisitions, he said that production is expected to start from 5 blocks of Lithium in Argentina while opportunities for investment are being explored in Lithium projects in Argentina, Australia and Brazil. Speaking on the impact of sourcing metals and minerals due to the West Asia crisis, he said that a high-level empowered group by the government is regularly holding meetings with Industry associations and mining sector bodies to compile their requirements for C3 C4 compounds and explosives.Stating that GAIL and IOCL have appointed nodal officers to ascertain the need for explosives for which the latter has also set up new plants near mining clusters to source explosives, he said that 70% provision for commercial LPG will include metals while he expressed hope for things to improve further with ceasefire. Assuring that no drop in production has been noted for any metal, he said that prices have increased as several suppliers have invoked the force majeure clause due to the crisis. He added that while smelting operations are under pressure, the move is linked to policies by some countries to dominate the market and not the West Asia crisis.On overseas operations, he said that Hindustan Copper was taking over one block in Chile, while a consortium of PSUs had bid for 4 blocks in the South American country, for which the bids are at final stages and the Chilean government is supposed to give a date for paperwork. Pointing to challenges on sourcing of potash for fertilizers, he said that discussions are underway with the Department of Fertilizers and the Ministry of External Affairs to supplement supply through long-term win-win arrangements with source countries. He added that production of Tantalum has begun, while Hindalco has started production of Gallium.On sifting of red mud and fly ash for tailings of minerals by PSUs and the GSI, he said that the challenge is to get capital investment despite availability of minerals as many companies didn’t find the prospect economically feasible, though he noted that technology improvements can be a game changer. He added that among byproducts of processing of tailings, several PSUs are making profits from byproducts like Silver due to high metal prices.(Edited by : Srabastee Biswas)

Source link