India is intensifying its efforts to secure essential critical minerals in Africa, aiming to challenge China's dominant position in the region. With Memorandums of Understanding (MoUs) in place with at least eight African nations, India is focusing on mining collaborations and access to resources. These nations include South Africa, Mozambique, Congo, Tanzania, Zambia, Malawi, the Republic of Cote d’Ivoire, and Zimbabwe. The key targets are critical minerals such as copper, cobalt, niobium, graphite, titanium, and lithium.
The race for critical minerals, primarily focusing on cobalt and copper—key metals for EV batteries apart from lithium—is intensifying. Congo and Zambia, forming the Copperbelt region, are of particular interest due to their rich mineral deposits. However, few Western mining companies have ventured into this region due to political risks, poor infrastructure, and issues surrounding artisanal mining, and fewer have lasted.
US producer Freeport McMoRan initiated production at the Tenke Fungurume copper-cobalt mine in 2009, but sold its holding to China's CMOC in 2016. In contrast, India is increasing its presence in the region through a mix of government-to-government (G2G) negotiations and private entity investments. These negotiations cover exploration of resources, acquisition, commercial off-take, and processing of minerals.
As recently as February, India signed an MoU with the Republic of Cote d’Ivoire for collaboration in geology and mineral resources. "We are tapping into some of the African nations for mineral deposits. MoUs are being looked into in the field of mining, primarily critical minerals," an official involved in the discussions told Businessline.
For example, in Tanzania, India is seeking access to niobium and graphite; in Zimbabwe, the focus is on lithium; and in Congo and Zambia, the targets are copper and cobalt.
China currently controls over 5% of cobalt processing facilities in Congo. Chinese companies own an estimated 80% of the Tenke Fungurume mines, which produce nearly 12% of the world’s cobalt. Additionally, China recently acquired 95% of the stake in the yet-to-be-developed Kinsafu cobalt and copper project. In Zimbabwe, significant Chinese investments are directed towards securing lithium resources.
India's strategic push in Africa aims to diversify its supply chains for critical minerals and reduce dependency on China. However, overcoming the established Chinese influence in the region will require sustained diplomatic efforts and robust investment strategies.
