Tapping Central Asia’s Untapped Mineral Potential

With India's National Critical Mineral Mission's push, there is a strategic need to strengthening collaboration with Central Asia.
Central Asia, Critical Minerals, India, Energy Security, Collaboration
Listen to article
Getting your Trinity Audio player ready...

BACKGROUND

On January 29, 2025, the Union Government of India approved the ‘National Critical Mineral Mission’ with an outlay of 34,300 crores over seven years to build a reliable value chain for mineral resources which are essential for green technology.1 Critical minerals are essential for energy security, economic development and national security as these minerals are essential for defense manufacturing, renewable energy and electronics. This policy underlines India’s attempt towards the ‘net zero’ goal by 2070. Central Asian states can emerge as a strong contender for diversification of India’s critical mineral supply chain as the region has vast number of mineral resources.

MINERAL RESOURCES AND EXTRACTION IN CENTRAL ASIA

MineralsCentral Asia’s Share in the world
Manganese Ore Reserves38.6%
Chromium30.07%
Lead20.0%
Zinc12.6%
Titanium8.7%
Aluminium5.8%
Copper5.3%
Cobalt5.3%
Molybdenum5.2%

2

Central Asia is also top 20 in producing many critical minerals, which makes it an essential partner for India’s National Critical Mineral Mission as it would help India securing stable access to these resources, reduce dependence on China and meet its energy goals. However, these countries lack processing capacities and modern exploration methods and have outdated data dating back to Soviet era.3 Another important area of concern is that China and Central Asian countries have trade turnover of $70 billion and China has made significant investments in the region, especially in Kazakhstan and Tajikistan4 as opposed to India’s $27 billion.5

EXPANDING INDIA’S ROLE IN CENTRAL ASIA

India has recently signed an agreement with Kazakhstan to establish a joint venture company for the production of Titanium slag in India to develop India’s titanium value chain.6 This shows that India is serious about developing its energy chain as titanium is essential for aerospace and defence industry and expanding its influence in Central Asia as it would boost mining and technological advancement, increase trade and reinforce India’s influence in the region. India can also help these countries modernize their data so that these countries know the real data about the reserves they possess. This would help the Central Asian countries know how much they ought to extract and gain economic benefit. This would also help India make better trade agreements in Central Asia, will enhance India’s role in regional economic development and strengthen India’s position in global mining chains. India can do this through technology transfer programs, skill development programs, helping these countries with digital infrastructure and through public-private partnership.

India can also support these countries modernize their extraction and processing capacities by establishing a joint framework, through which it can promote exchange of technologies and best practises in mines exploration and mines processing and providing training to Central Asian engineers and technicians. India should explore opportunities in building mining related projects in these countries. India can offer favourable financing terms for setting up modern processing units or improving existing ones.

CONCLUSION

In conclusion, India must strategically engage with Central Asia in securing critical minerals as these minerals are crucial for advancing energy security, reducing reliance on China and meeting its 2070 goals. Through initiatives such as joint ventures, skill development programs, and infrastructure investments, India can strengthen its position in the region, contributing to regional economic development while enhancing its presence in global mineral supply chains. This collaboration not only benefits India but also empowers Central Asian countries, fostering sustainable growth and mitigating vulnerabilities in global supply networks.

BIBLIOGRAPHY

Government of India. “Cabinet Approves ‘National Critical Mineral Mission’ to Build a Resilient Value Chain for Critical Mineral Resources Vital to Green Technologies, With an Outlay of Rs.34,300 Crore Over Seven Years,” n.d., https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2097308.

Meirkhanova, A.  “Central Asia CRM Offers,”  Carnegie Endowment for International Peace, January 2025, https://carnegieendowment.org/russia-eurasia/politika/2025/01/central-asia-crm-offers?lang=en.

Vakulchuk, Roman and Indra Overland Central Asia’S Minerals Offer Hope for the Clean Energy Transition – Land and Climate Review,” Land and Climate Review, July 13, 2023, https://www.landclimate.org/central-asias-minerals-offer-hope-for-the-clean-energy-transition/#:~:text=Central%20Asia%20holds%2038.6%25%20of,producers%20of%20many%20critical%20materials

Umarov, T. “What Does Xi Jinping Want From Central Asia. Carnegie Endowment for International Peace, July 2024. https://carnegieendowment.org/posts/2024/07/what-does-xi-jinping-want-from-central-asia?lang=en

Roy Chaudhry. “India, Kazakhstan to set up a JV in critical minerals sector”. Economic Times. November 5, 2024. https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/india-kazakhstan-to-set-up-a-jv-in-critical-minerals-sector/articleshow/114981652.cms?from=mdr (Accessed: February 6, 2025).


1 “Cabinet Approves ‘National Critical Mineral Mission’ to Build a Resilient Value Chain for Critical Mineral Resources Vital to Green Technologies, With an Outlay of Rs.34,300 Crore Over Seven Years,” n.d., https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2097308.

2 Roman Vakulchuk and Indra Overland, “Central Asia’S Minerals Offer Hope for the Clean Energy Transition – Land and Climate Review,” Land and Climate Review, July 13, 2023, https://www.landclimate.org/central-asias-minerals-offer-hope-for-the-clean-energy-transition/#:~:text=Central%20Asia%20holds%2038.6%25%20of,producers%20of%20many%20critical%20materials

3 Aruzhan Meirkhanova, “Central Asia CRM Offers,”  Carnegie Endowment for International Peace, January 2025, https://carnegieendowment.org/russia-eurasia/politika/2025/01/central-asia-crm-offers?lang=en.

4 Temur Umarov. “What Does Xi Jinping Want From Central Asia. Carnegie Endowment for International Peace, July 2024. https://carnegieendowment.org/posts/2024/07/what-does-xi-jinping-want-from-central-asia?lang=en

5 Ministry of External Affairs, Bilat Brief, July 2024 https://www.mea.gov.in/Portal/ForeignRelation/Bilat-Brief-July-2024.pdf

6 Dipanjan Roy Chaudhry. “India, Kazakhstan to set up a JV in critical minerals sector”. Economic Times. November 5, 2024. https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/india-kazakhstan-to-set-up-a-jv-in-critical-minerals-sector/articleshow/114981652.cms?from=mdr (Accessed: February 6, 2025).

Add comment

Your email address will not be published. Required fields are marked *

Trishala Sancheti

Trishala is a Research Fellow in India Foundation. Her research interests include state building, infrastructure development, connectivity and energy. Her focus particularly lies on Northeast India, Central Asia and East Europe.

View all posts