News Excerpt:

The Ministry of Mines has proposed sending an Indian industry delegation to copper-rich Zambia to discuss potential copper exploration and mining projects in the southern African country.

Why Zambia?

• Zambia has about 6 percent of the world’s copper reserves and was the eighth-largest producer of copper in 2022. 
• India already has a limited presence in Zambia’s copper mining sector. 
• In September last year, Vedanta regained control of Konkola Copper Mines (KCM) after it was seized by Zambian authorities in 2019. 
• The Zambian government owns a 20 percent stake in KCM. In 2023, Vedanta also pledged to invest over $1.2 billion in Zambia to increase the output of mined copper and pay outstanding debt. 
• KCM holds about 250 million tonnes of copper ore reserves

Entities involved in the mining exploration project:

• The Mines Ministry wants to send a combined business delegation to Zambia, with participation from both private and public sectors, for an effective outcome of the collaboration between the two countries.
• Among the interested companies to explore mining opportunities in Zambia is Vedanta-owned Hindustan Zinc, in which the Indian government also owns a 35 per cent stake.
• Khanij Bidesh India (KABIL), a central public sector enterprise (CPSE) under the mines ministry tasked with the acquisition and development of critical mineral projects overseas.
• Electric vehicle (EV) maker Ola Electric and lithium-ion battery recycler LOHUM, have expressed interest in joining the delegation to Zambia to attend a joint working group (JWG) meeting to discuss cooperation in the field of mineral resources.

Why is Copper needed now?

• The current scenario of increasing demand for copper coupled with limited domestic supply makes the acquisition of copper mining blocks overseas an attractive proposition for Indian mining companies.
• Copper is widely used in sectors like construction, consumer durables, transportation, and industrial manufacturing. 
• It is also used in clean energy technologies including solar panels, EVs, and energy-efficient motors.
• As per International Copper Association India, domestic copper demand grew by 16 percent in FY 2022-2023 (FY23), while demand for copper in clean energy technologies grew by 32 percent. 
• At the same time, net imports of copper cathode, which is the basic product of copper production, grew by 180 percent in the same financial year as India is not self-sufficient in copper due to low domestic reserves. 

Conclusion: 

India's Mines Ministry is actively pursuing collaboration with Zambia on copper exploration, involving major companies like Vedanta, Hindustan Zinc, Ola Electric, and LOHUM. It signifies the growing interest in Zambia's significant copper reserves, addressing India's rising demand and limited domestic supply.