India has restarted discussions with Zambia to examine investment prospects in copper and other critical minerals, according to two sources, as New Delhi increasingly turns abroad for raw materials to satisfy the rising demand of its rapidly expanding economy.
Officials from India’s Ministry of Mines engaged in initial talks with Zambian authorities on August 26, according to two individuals familiar with the discussions, who requested anonymity because the talks were confidential.
According to one source, the two parties did not address the suspended project that had previously brought negotiations to a standstill. In April, Reuters reported that discussions between India and Zambia had broken down because Lusaka had not provided sufficient guarantees regarding mining rights for a 9,000-square-kilometre (3,475-square-mile) area granted to India last year.
India's Ministry of Mines did not reply to a request for comment from Reuters, while a representative of Zambia's Ministry of Mines stated they were currently unable to confirm any information.
Khanij Bidesh India Ltd, India’s primary vehicle for acquiring critical mineral supplies abroad, is also assessing potential investments in Australia, Brazil, Canada, Russia and Indonesia, and is engaged in discussions regarding a project in Malawi.
India is holding discussions with multiple African nations to secure critical mineral blocks through government-to-government arrangements, while simultaneously seeking similar opportunities in Australia and Latin America.
Africa, and the Democratic Republic of Congo and Zambia in particular, can play an important role in meeting India's growing requirements for copper and cobalt, said a spokesperson for the Federation of Indian Mineral Industries.
Indian companies should primarily receive incentives to prioritize brownfield projects and ventures close to the production stage, supported by long-term offtake agreements, the spokesperson said.
India is the world’s second-biggest buyer of refined copper, and its copper imports have risen sharply since the closure of Vedanta’s Sterlite Copper smelter in 2018. Government estimates indicate that by 2047, the country may have to import between 91% and 97% of its copper concentrates.
