India to Sign MoU with Israel and Saudi Arabia for Critical Minerals

India is set to sign agreements with Israel and Saudi Arabia to explore and process critical minerals. This move aims to boost India’s domestic supply and reduce dependence on imports, Union Mines Minister G. Kishan Reddy announced on Thursday.

Agreement with Israel: Technology Transfer and AI in Mining

India’s MoU with Israel will focus on technology transfer to extract potassium from seawater. It will also introduce artificial intelligence (AI) in mining operations, improving efficiency and resource utilisation. The Indian government has already approved this agreement, and a policy framework is being drafted for finalisation in the coming months.

Collaboration with Saudi Arabia: Strengthening Mineral Sector Ties

The MoU with Saudi Arabia follows high-level discussions between Indian and Saudi ministers. It aims to enhance cooperation in the critical minerals sector and explore investment opportunities. India is also planning similar agreements with the Democratic Republic of the Congo and Zambia.

Deployment of Nodal Officers for Global Mineral Exploration

India is deploying 20 nodal officers in key global locations to strengthen international partnerships. These officers, stationed at Indian embassies, will identify critical mineral resources and coordinate with Indian companies for exploration and investment.

States Joining India’s Mineral Action Plan

Several Indian states, including Telangana, Bihar, and Arunachal Pradesh, have now agreed to participate in the mineral auction process. Currently, 14 states are involved, with Assam, Jammu & Kashmir, and Kerala expected to join soon. This initiative is expected to generate jobs, increase state revenues, and support economic growth.

Auction of Mineral Blocks and Revenue Generation

So far, India has auctioned 335 mineral blocks, out of which 106 have been successfully allocated. State governments have received ₹4.15 trillion in revenue, including ₹2.37 trillion from royalties. Jammu & Kashmir is also expected to adopt the auction model, with a focus on limestone extraction.

Mining Waste Utilisation and New Exploration Licenses

The government is also exploring ways to extract critical minerals from waste dumps, tailings, and offshore sites. This initiative is set to begin within the next 90 days. Additionally, an exploration license block auction is scheduled for next month, further integrating Jammu & Kashmir into India’s mineral strategy.

Record Mineral Production and the State Index Mining Initiative

India’s mineral production for FY24 reached ₹1.4 trillion and is projected to grow to ₹1.5 trillion in FY25. The country has achieved record production in key minerals like iron ore, limestone, and manganese. To improve state-level mining efficiency, the government has launched the State Index Mining Initiative, which will evaluate states based on regulation, administration, technical expertise, and sustainability, starting in FY26.

Conclusion

India’s strategic collaborations and policy initiatives aim to strengthen domestic mineral resources, enhance global partnerships, and drive economic growth in the mining sector.

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