India-Zambia Talks on Critical Minerals Stall Over Mining Rights
Negotiations between India and Zambia regarding the extraction of essential minerals have come to a standstill due to a lack of assurances from the Zambian government concerning mining permissions.
India was granted 9,000 square kilometers (equivalent to 3,474.92 square miles) for the purpose of conducting exploration for cobalt, an essential element found in batteries utilized in electric vehicles and mobile phones.
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Additionally, the allocation also includes the opportunity to explore for copper, a material extensively utilized in power generation, electronics, and construction.
Last year, India sent a group of geologists to collect samples of various minerals such as cobalt and copper, which they have brought back. The exploration initiative in Zambia was intended to span a duration of three years, at the conclusion of which New Delhi intended to extend invitations to private sector entities for potential involvement, contingent upon the acquisition of mining permits.
The rationale behind Zambia's decision to withhold guarantees related to mining concessions was not immediately discernible. Reports indicate that New Delhi is working towards resuming negotiations with Zambia, however, the current situation remains uncertain.
India has engaged in discussions with numerous African nations to secure essential mineral reserves through bilateral agreements, and has likewise been investigating potential ventures in Australia and Latin America.
Last year, the Indian government engaged in internal deliberations regarding the nation's increasing susceptibility to the tightening global copper market, and explored strategies to ensure a stable supply from resource-abundant nations amidst ongoing trade negotiations.
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India has experienced a significant increase in copper imports following the closure of Vedanta's Sterlite Copper smelter in 2018. In the fiscal year ending March 2025, the country imported 1.2 million metric tons of copper, reflecting a four percent increase compared to the previous year.
According to data from the government, India's reliance on cobalt imports is nearly absolute, as demonstrated by a 20 percent increase in shipments of cobalt oxide to 693 metric tons during the fiscal year 2024-25.
The Zambian Copper Belt is renowned globally for its exceptional production trends and insights in the copper mining industry. It is characterized by advantageous geological features such as high-grade ore deposits with an average copper content of 2.5 percent, shallow mining depths in comparison to counterparts in South America, and substantial cobalt co-deposits that contribute to the financial viability of mining projects.
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India's recent concession holds a significant strategic benefit due to its close proximity to the established copper operations of the Vedanta Group, which have an annual production output of around 200,000 tonnes. This close proximity offers immediate infrastructure advantages that could potentially lead to a reduction in development expenses by 15-20 percent when compared to new project sites that do not have existing neighboring operations.
Expedition strategies for the designated region incorporate state-of-the-art hyperspectral imaging technology to detect copper-cobalt deposits lying beneath a layer of Kalahari sand as deep as 50 meters. Preliminary geological evaluations indicate the presence of potential reserves surpassing 35 million tonnes of copper, vastly overshadowing the comparatively meager domestic reserves of India, which amount to only five million tonnes.