India secures a 9,000-sq-km Zambian block for copper and cobalt exploration amid a global race driven by rising EV and clean energy demands. While China dominates smelting and the US raises national security concerns, India actively seeks overseas assets in Africa to counter declining domestic production and ensure long-term supply.
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The Indian government has secured a 9,000-sq-km block in Zambia for the exploration of copper and cobalt.
India, China, and the United States are engaged in a race to secure copper supplies due to a surging global demand that is projected to outstrip the available supply from mines by 2035.
Electric Vehicles (EVs) require more copper than traditional internal combustion engine vehicles. Copper is essential for EV batteries and charging infrastructure due to its excellent conductivity.
Clean Energy Infrastructure: Solar panels, wind turbines, and power grids all rely heavily on copper for efficient electricity transmission. As the world moves towards decarbonization, the demand for these technologies, and consequently copper, is skyrocketing.
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Experts predict that the demand for copper will soon exceed the supply, and this threatening supply deficit is prompting nations to proactively secure their access to copper to protect their economic and strategic interests. |
China's Strategic Move to Control Smelting and Refining
China currently controls about half of the world's copper smelting and refining capacity, giving it significant influence in the midstream of the copper value chain.
Recognizing the tightening supply of copper ore, China is strategically moving to control overcapacity in smelting. Companies intending to build new smelters in China are now required to secure long-term contracts with copper mines.
China is actively pursuing long-term contracts with copper mines located in countries rich in copper deposits, such as the Democratic Republic of Congo (DRC), Chile, and Peru.
India's Focus on Overseas Mining Assets
Domestic copper ore production has been declining, with an 8% decrease in 2023-24 compared to 2018-19. The sole domestic copper miner, Hindustan Copper Ltd (HCL), also experienced a 6% year-on-year production decrease.
To address the supply vulnerability, India is actively seeking to acquire both greenfield (new) and brownfield (existing) mineral assets in copper-rich countries like Zambia, Chile, and the DRC.
India recently secured a significant 9,000-sq-km exploration block in Zambia, a region known for high-grade copper and cobalt deposits.
The Ministry of Mines is actively engaging with nodal officers in Tanzania, Mozambique, and Rwanda to acquire other critical mineral assets for exploration, recognizing Africa's increasing importance in critical mineral production.
United States' National Security Concerns
The White House has warned about the "threat to national security from imports of copper," stressing that over-reliance on foreign copper could jeopardize US defense capabilities, infrastructure, and technological innovation.
President Donald Trump launched an investigation into copper imports to assess the vulnerabilities in the US copper supply chain.
The US investigation aims to identify measures to strengthen the domestic copper industry, potentially including tariffs, export controls, and incentives to increase domestic production and smelting capacity.
Despite having ample copper reserves, the US smelting and refining capacity is significantly behind global competitors like China. The US does not rank among the top five countries in copper smelting capacity.
Africa's role in the global production of critical minerals, including copper, lithium, and natural graphite, is expanding rapidly.
The Democratic Republic of Congo is on track to become the world's second-largest copper supplier by 2030. Zambia is already the seventh-largest copper producer globally, holding a significant portion of global copper deposits in its Copperbelt region.
With Africa becoming a central player in critical mineral supply, competition among nations like India, China, and the US for access to African copper and other resources is intensifying.
Increased copper recycling can alleviate some pressure on primary mining.
Research into battery chemistries that require less or no copper could also reduce demand in the long term.
Despite these alternative approaches, mining remains fundamentally critical to meet the overall projected global copper demand, especially in the near to medium term.
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CRITICAL AND STRATEGIC MINERALS
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PRACTICE QUESTION Q. Mining of critical minerals often leads to ecological degradation and social conflicts. Discuss the environmental challenges and propose sustainable practices to mitigate them. 250 words |
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