India has secured a 9,000-sq-km copper and cobalt exploration block in Zambia, a major step toward securing critical mineral resources. With domestic copper production stagnating and global demand rising, India is focusing on overseas mining operations to strengthen supply chains.
India’s Copper Mining in Zambia
- New Exploration Project: The Indian government has secured a 9,000-sq-km block in Zambia’s Northwestern province to explore copper and cobalt.
- Strategic Importance: This acquisition comes as domestic copper production is faltering, making overseas mining essential for securing raw materials.
- Exploration Oversight: The Geological Survey of India (GSI) will conduct exploration activities in the region.
Global Copper Demand and Supply Constraints
- Rising Demand: Copper is vital for electric vehicle (EV) batteries and clean energy technologies, with demand projected to outstrip supply by 2035.
- China’s Control: China dominates half of the world’s smelting and refining capacity, imposing stricter rules on new smelters to ensure secured ore supply.
- Major Suppliers: The world’s top copper producers are Chile, Peru, and the Democratic Republic of Congo (DRC), making them key players in global copper supply chains.
India’s Copper Supply Challenges
- Declining Domestic Production:
- India’s domestic copper ore production in 2023-24 was 3.78 million tonnes, 8% lower than in 2018-19.
- Hindustan Copper Ltd (HCL), India’s only copper miner, saw a 6% drop in output between April and January of the current financial year.
- Increasing Imports: Due to falling production, India’s copper concentrate imports doubled in value to ₹26,000 crore in 2023-24 compared to 2018-19.
- Exploration Delays: While India has large copper deposits, mining operations take an average of 17 years to become operational, making immediate domestic expansion difficult.
The Need for Overseas Mining Investments
- Securing International Assets: India is acquiring mineral-rich assets in Zambia, Chile, and the DRC to meet demand.
- Higher-Grade Deposits: Copper deposits in Zambia and other mining-focused nations offer better quality ore, enabling faster project development.
- Geopolitical Risks: Investments in foreign mining projects come with risks, including political instability, regulatory challenges, and competition from other nations.
India’s Expanding Global Mineral Strategy
- Government-to-Government Deals: India acquired the Zambian copper block through direct agreements with the Zambian government.
- Regional Expansion: The Ministry of Mines is working through nodal officers in the DRC, Tanzania, Mozambique, and Rwanda to secure more mineral assets.
- Intensified Competition: India faces strong competition from global players like China and the US in securing mineral resources.