Government to set up KABIL to ensure consistent supply of critical minerals
KABIL, Khanij Bidesh India Ltd, a joint venture company will be set up soon to ensure a consistent supply of critical and strategic minerals to the Indian domestic market.
KABIL will be set up in joint partnership between three Central Public Sector Enterprises including National Aluminium Company Ltd.(NALCO), Hindustan Copper Ltd.(HCL) and Mineral Exploration Company Ltd (MECL). The equity participation between NALCO, HCL and MECL in the company is in the ratio of 40:30:30.
KABIL’s main objective will be to ensure a consistent supply of critical minerals to the Indian domestic market and the mineral security of the Nation. The company would also help in realizing the overall objective of import substitution.
The Indian government has identified twelve minerals as strategic minerals that have a small resource base. Among these minerals, the most significant ones include Lithium and Cobalt.
KABIL: Key Duties
KABIL would mainly carry out exploration, identification, acquisition, development, mining and processing of strategic minerals abroad for commercial use in India. The company would also ensure that India’s requirements of the strategic minerals are met.
The sourcing of the critical and strategic minerals will be done by creating trading opportunities and G2G collaborations with the countries producing the minerals or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries.
KABIL will help in building partnerships with other mineral-rich countries such as Australia and those in Africa and South America. Here, the Indian expertise in exploration and mineral processing will be brought in a mutually beneficial way of bringing about new economic opportunities.
Having a sustained source of mineral and metal commodities is crucial for the transportation and manufacturing segment.
India had pledged to reduce greenhouse gas emissions at the UN Climate Change Conference in Paris in 2015. India had pledged to opt for a greener mode of transportation.
Indian Prime Minister Narendra Modi has been laying increased emphasis on opting for Electric Vehicle technology. The Indian Army has already launched 10 e-cars for its officials in Delhi as a part of its pilot project to combat air pollution.
However, for the greener mode of transportation, it is important to ensure energy storage through batteries. Besides this, sectors such as Aviation, Defence and Space Research also require minerals with lower weight and high mechanical strength.