India initiates talks to acquire graphite blocks in Sri Lanka
- In Reports
- 07:20 PM, May 23, 2024
- Myind Staff
India is currently engaging in preliminary discussions with Sri Lanka regarding the acquisition of graphite blocks for mining, according to sources familiar with the matter. "We held talks with Sri Lanka on Monday. They possess the purest form of graphite and are willing to collaborate with India," stated one of the official sources.
In January, the mines ministry convened two meetings with industry stakeholders to explore opportunities for mining critical minerals in Sri Lanka and Australia.
The ministry is currently engaged in preliminary discussions with the island nation and is expected to draft a Memorandum of Understanding (MoU) soon. "Firstly, we will prepare an MoU and then will form Joint Working Groups to take it forward," another source stated. "Teams from both countries will review the possibilities, and private companies will also be involved."
The government's primary objective is to secure reserves of vital minerals globally, with a particular emphasis on promoting the participation of private companies in this sector.
The island nation possesses significant reserves of vein graphite, which is among the purest forms of natural graphite. Graphite, classified as a critical mineral, is essential for lithium-ion batteries, commonly used in electric vehicles (EVs).
In addition to exploring mineral reserves abroad, the government is also promoting domestic mining of critical minerals through auctions. In the second tranche of critical minerals auction, 6 out of 18 blocks put under auction contain graphite, with three blocks each located in Madhya Pradesh and Arunachal Pradesh.
According to data from the commerce ministry, the country's import of natural graphite increased by almost 6%, reaching $38.68 million in the financial year 2023-24, up from $36.59 million in FY23.
Furthermore, the government is engaged in discussions with 20 different countries to explore mineral reserves, with around 13-14 of these countries believed to possess critical mineral reserves, according to the source.
Among the countries being considered for potential critical mineral reserves are Zambia, Mozambique, South Africa, Tanzania, Brazil, Chile, the Democratic Republic of the Congo, and Argentina. The mines ministry aims to expand this list further.
In Tanzania, the government is also targeting graphite reserves along with reserves of niobium, which is utilised in manufacturing aircraft parts and alloys. Similarly, in the Democratic Republic of the Congo, the government plans to explore reserves of copper and cobalt.
Image source: Financial Express
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