India is planning to finalise a pact with Zambia on geological mapping and mineral exploration in the resource-rich African nation endowed with precious stones, copper, zinc, nickel, gold, and cobalt. This initiative aims at securing access to these resources and bolstering bilateral ties.
Last month, a delegation from the Ministry of Mines met with Zambian officials to initiate negotiations. “We have discussed cooperation in geological mapping and mineral exploration with the Zambian government and are confident of signing a pact soon,” a government official said.
Through geological mapping and mineral exploration in Zambia, India seeks to gain a better understanding of the country's resources, secure access to critical minerals, diversify its supply chain, boost domestic industries, and strengthen bilateral ties, the official explained.
Ministry of Mines, in response to a query sent by Business Standard, said that an India delegation led by Joint Secretary, Ministry of Mines, Vivek Bajpai visited Zambia from June 10 to June 11, to participate in the 2nd Joint Working Group (JWG) meeting and to further discussions on the exploration and mining of critical minerals in Zambia. “Zambia holds vast potential for critical minerals such as Lithium, Cobalt, Copper etc. These minerals are crucial for India’s strategic interests and economic growth. During this meeting, GSI has offered support to Zambia in geological and structural mapping and training and capacity building as sought by the Government of Zambia,” the ministry said in the statement.
A query sent to the mines ministry remained unanswered until going to the press.
This development follows the Union Ministry of Mines’ decision to explore mineral resources in other countries essential for India’s economic growth. The Centre plans to invite private parties to participate in these activities.
Currently, Khanij Bidesh India Ltd (KABIL), a joint venture comprising National Aluminium Company Ltd (Nalco), Hindustan Copper Ltd (HCL) and Mineral Exploration and Consultancy Ltd (MECL), is dedicated to the identification, acquisition, development, processing and commercial utilisation of strategic minerals from overseas locations to supply in the country.
KABIL has established a presence in Argentina and Australia and is actively negotiating with several countries abundant in critical minerals, such as Bolivia and Chile. It is likely to establish its presence in Zambia too.
“The government will assist public sector undertakings (PSUs) as well as private sector players in facilitating their entry into Zambia,” another official said.
Many private sector players have shown interest in mining activities in other countries. In May, Mines Secretary VL Kantha Rao mentioned that public sector undertakings like Coal India, NMDC, ONGC, and private entities like Ola Electric, Hindalco, and GMDC were exploring graphite mining opportunities in Sri Lanka.
Rao also talked about plans by Vedanta, SAIL, Tata Steel, and the Adani group to explore opportunities in Australia.
Strategic mineral wealth
According to the United States Geological Survey (USGS) 2019 report, Zambia is the seventh-largest producer of copper, contributing approximately 4 per cent of the world’s production. Besides copper, it is a leading global producer of gemstones, particularly emeralds.
The president of the Zambia Chamber of Mines said the country accounted for 20 per cent of the world’s emerald production. Zambia also produces cement, coal, cobalt, gold, lime, limestone, manganese, other gemstones such as amethyst, beryl, and tourmaline, refined petroleum products, raw steel, and sulfuric acid.
Of the total import value of $204 million in FY24, 95 per cent consisted of precious stones, metals, and minerals, according to data from the Ministry of Commerce and Industry.
Precious stones like natural or cultured pearls, clad with precious metal, and imitation jewellery and coins – accounted for the highest value at 75 per cent, followed by copper at 18 per cent.
The government is prioritising investment in Zambia as the mining sector is one of the major contributors to the country’s economy. According to USGS data, the mining and quarrying sector contributed 10.5 per cent to Zambia's real GDP of $12.6 billion. In 2016, a significant portion of Zambia's total exports consisted of mineral commodities, with copper making up 67.6 per cent, gold 2.9 per cent, and cobalt 1.7 per cent.