Daijiworld Media Network - New Delhi
New Delhi, Sep 1: India has resumed discussions with Zambia to explore investment opportunities in copper and other critical minerals as New Delhi steps up efforts to secure overseas sources of raw materials to meet rising demand from its rapidly expanding economy, according to two sources familiar with the matter.
Officials from India's Ministry of Mines held preliminary discussions with their Zambian counterparts on August 26, the sources said, requesting anonymity as the talks were confidential.
One of the sources said the discussions did not cover a previously stalled project that had led to the suspension of talks between the two countries.
Reuters had reported in April that negotiations between India and Zambia had stalled over Lusaka's lack of assurances regarding mining rights for an area covering around 9,000 square kilometres that was awarded to India last year.
India's Ministry of Mines did not respond to a Reuters request for comment. A spokesperson for Zambia's Ministry of Mines said the ministry could not confirm the latest discussions at present.
Khanij Bidesh India Ltd (KABIL), India's main government-backed vehicle for securing critical mineral supplies overseas, is also assessing investment opportunities in Australia, Brazil, Canada, Russia and Indonesia. The company is separately holding discussions over a project in Malawi.
India has been engaging with several African nations to secure critical mineral blocks through government-to-government arrangements while also exploring opportunities in Australia and Latin America.
Africa, particularly the Democratic Republic of Congo and Zambia, could play an important role in meeting India's growing requirements for copper and cobalt, according to the Federation of Indian Mineral Industries.
The industry body said Indian companies should primarily be encouraged to pursue brownfield and near-production projects, along with long-term offtake agreements, as part of efforts to strengthen the country's mineral supply security.
India is the world's second-largest buyer of refined copper, while its copper imports have risen sharply since the closure of Vedanta's Sterlite Copper smelter in 2018.
The Indian government has projected that the country could need to import between 91% and 97% of its copper concentrates by 2047, highlighting the growing importance of securing overseas mineral resources.