Indian Public Sector Units (PSUs) have been at the forefront of economic development and nation-building. They have played a key role in anchoring strategic industries in the country including defence, heavy engineering, power generation, oil and gas and steel. As the world moves towards greater expanded defence capabilities, the development of renewable energies along with rapid digitisation and innovation in everyday technology products, the Indian PSUs have once again stepped up to secure access to 30 critical minerals identified by the government as required resources for India’s economic development and strategic resilience. Khanji Bidesh India Limited (KABIL)- a joint venture between three PSUs – National Aluminum Company Ltd. (NALCO), Hindustan Copper Limited (HCL) and Mineral Exploration & Consultancy Limited (MECL) – under the aegis of the Ministry of Mines plays a proactive role in securing critical minerals abroad. Through agreements in Argentina, Australia and Chile, KABIL is working to procure critical minerals to advance India’s energy as well as manufacturing ambitions. However, to build a more secure critical mineral access for India, proactive engagement with Africa is the need of the hour, and Indian PSUs are the best positioned to lead this effort, as evidenced by KABIL’s active engagement overseas.
The Case for Africa
Africa is home to 30% of the world’s mineral reserves and critical minerals from Africa are becoming increasingly important in global supply chains. Africa has substantial reserves of cobalt, copper, lithium and rare earths. These minerals form the backbone of the green technologies, which makes Africa a key player in driving green innovation globally. One of the factors that has led to China’s dominance in the critical mineral supply chain is its investment strategy in Africa. Chinese state-owned enterprises (SOEs), benefitting from favourable financing terms from Chinese banks and political backing from their government, have secured long-term access to Africa’s critical minerals, allowing them to become the major player in that area. In 2023-2024, Chinese companies have invested about $10 billion for acquiring mining and critical mineral assets on the continent. The US too has realised the importance of Africa’s mineral portfolio and has increased its presence on the continent. In 2023, the United States and its G7 allies launched the Lobito Corridor project- spanning Angola, the Democratic Republic of Congo (DRC) and Zambia- to enhance access to minerals and develop connectivity and infrastructure in the region, and then-President Biden in 2024 travelled to Angola. He remarked that “nations across the Lobito Corridor have solutions to some of the world’s toughest problems”, alluding to the importance of critical minerals in these countries. Recently, the US brokered a peace deal between the DRC and Rwanda. Congo has vast mineral reserves and is the largest producer of Cobalt in the world. President Trump has expressed hopes that American companies will gain access to the country’s resources in return for peace making.
India has deep historical and cultural ties with the African continent. The relationship has been built on trade, shared colonial struggles, and a common vision of diplomacy demonstrated through the Non-Aligned Movement. The Indian diaspora too has played a role in strengthening the ties between India and Africa. India’s steadfast support for Africa was visible when India, during its G20 presidency, played a key role in making the African Union (AU) a permanent member of the forum. The recent visits by the Prime Minister to Ghana and Namibia where he emphasised that India was seeking cooperation, not competition showcased India’s intent to help build the continent’s prosperity. Therefore, by capitalising on the historical ties and diplomatic goodwill, India must translate its relations with Africa into a concrete partnership for mining critical minerals, which would be beneficialto both sides.
PSUs: India’s best bet to advance the partnership
Indian PSUs are the best bet to spearhead the country’s partnership with Africa in the critical mineral sector because of their strategic orientation, the support they muster from the State and their proven track record in resource acquisition. Indian PSUs operate on a long-term vision which aligns with national priorities. This allows them to invest in projects necessary for India’s economic development and strategic resilience. KABIL’s successful deals in Argentina, Australia and Chile bear witness to the capabiities of Indian PSUs. It shows that Indian PSUs can navigate diplomatic relations and craft resource-development partnerships in consonance with the national interest. PSUs established technical expertise in geology, mineral exploration and metallurgy and and strong institutional support as a result of inter-ministerial coordination are other factors that qualify PSUs to access exploration opportunities in Africa. By leveraging PSUs capabilities, India can forge new critical mineral supply chains that not only help it diversify its critical mineral resource base and reduce its reliance on China, but also assist in the industrialisation of African countries.
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