New Delhi: In a significant move to reduce India’s dependency on critical mineral imports, Coal India Limited (CIL) and IREL (India) Limited signed a non-binding Memorandum of Understanding (MoU). The agreement aims to foster collaboration in developing critical minerals, including mineral sands and rare earth elements (REE).
Under the MoU, the two companies will work jointly to acquire assets and source raw materials domestically or internationally. They will also focus on developing mining, extraction, and refining capabilities to strengthen India’s position in the critical minerals supply chain.
Significance of the Initiative:
According to CIL Chairman P.M. Prasad, this partnership aligns with the goal of supporting India’s clean energy goals by ensuring a stable supply of critical minerals like lithium and cobalt. The initiative is part of the government’s broader Critical Mineral Mission, announced in the Union Budget 2024-25. The mission seeks to expand domestic production, enhance recycling efforts, and incentivize the acquisition of critical mineral assets. This is crucial for India’s transition to clean energy technologies, which heavily rely on these scarce resources.
Currently, China dominates the global critical minerals market, raising concerns over supply chain vulnerabilities. By strengthening domestic capabilities, India aims to reduce its reliance on imports and ensure a more sustainable supply.
However, experts caution about the environmental implications of critical mineral development. The refining and processing of these minerals require substantial water resources and could lead to air and water pollution. Addressing these challenges will be essential for the success of India’s critical mineral strategy.
