India revives talks with Zambia to invest in critical minerals, sources say

NEW DELHI: India has resumed discussions with Zambia to examine investment prospects in copper and other vital minerals, according to two sources familiar with the matter. As India's economy expands rapidly, the nation is increasingly seeking raw materials from abroad to meet growing demand. On August 26, officials from India's Ministry of Mines engaged in preliminary talks with their Zambian counterparts, the sources revealed, citing a need for anonymity due to the confidential nature of the discussions.

Reuters had previously reported in April that talks between India and Zambia had hit a standstill, primarily due to concerns over mining rights for a 9,000 square kilometer area in Zambia, which was awarded to India last year. India's Ministry of Mines has not commented on the matter. Zambia's Ministry of Mines, however, declined to confirm any developments at this time.

Khanij Bidesh India Ltd, India's primary vehicle for securing critical mineral supplies abroad, is also exploring investment opportunities in countries like Australia, Brazil, Canada, Russia, and Indonesia. Additionally, India is engaged in discussions regarding a project in Malawi. The country has been actively engaging with several African nations to acquire government-to-government mineral blocks, alongside exploring opportunities in Australia and Latin America.

A spokesperson for the Federation of Indian Mineral Industries emphasized the importance of Africa, specifically the Democratic Republic of Congo and Zambia, in meeting India's rising demand for copper and cobalt. The spokesperson suggested that Indian companies should focus on brownfield and near-production projects, as well as long-term offtake agreements.

As India is the world's second-largest importer of refined copper, with imports increasing significantly since the closure of Vedanta's Sterlite Copper smelter, the nation may need to import 91% to 97% of its copper concentrates by 2047.