Economics Current

Government to set up KABIL to ensure a consistent supply of critical minerals

In News A joint venture company Khanij Bidesh India Ltd, KABIL, shall be set up soon. The ministry of mines has approved the project. Objective The Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi said that the objective of constituting KABIL is to ensure regular supply of critical and strategic Minerals to Indian domestic market. KABIL would ensure mineral security of the Nation. It would also help in realizing the overall objective of import substitution. A Joint Venture co. KABIL will be set up with the participation of three Central Public Sector Enterprises (CPSE): •National Aluminium Company Ltd.(NALCO) •Hindustan Copper Ltd.(HCL) •Mineral Exploration Company Ltd. (MECL) The equity participation will be in the ratio of 40:30:30 of NALCO, HCL and MECL respectively. Functions- KABIL The new company would carry out identification, acquisition, exploration, development, mining, and processing of strategic minerals overseas for commercial use and meeting the country’s requirement of these minerals. The new company will help in building partnerships with other mineral-rich countries like Australia and those in Africa and South America, where Indian expertise in exploration and mineral processing will be mutually beneficial bringing about new economic opportunities. Sourcing The sourcing of these minerals or metals is to done by creating: Trading opportunities Government to Government (G2G) collaborations with the producing countries; or Strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries. Other Details The sustained source of mineral and metal commodities is imperative for the transportation and manufacturing segment. At the UN Climate Change Conference, Paris, 2015, India has pledged to reduce greenhouse gas emissions and opting a greener mode of transportation. In regard to above, the Prime Minister has been emphasizing upon Electric Vehicle Mobility, therefore it is important to ensure energy storage through batteries. Other segments like Aviation, Defence and Space Research also require minerals with lower weight and high mechanical strength. The Government of India has identified twelve minerals as strategic minerals which have a small resource base. Among these 12 minerals, the most significant ones include Lithium and Cobalt. NALCO National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established in January 1981, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal and power. HCL Hindustan Copper Limited (HCL), a public sector undertaking under the administrative control of the Ministry of Mines, was incorporated in November 1967. It has the distinction of being the nation’s only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining and casting of refined copper metal into downstream saleable products. MECL Mineral Exploration Corporation Limited (MECL) was established as an autonomous Public Sector Company in October 1972, under the administrative control of Ministry of Mines, Government of India for systematic exploration of minerals, to bridge the gap between the initial discovery of a prospect and its eventual exploitation. MECL has the Mission "to provide high quality, cost-effective and time-bound geo-scientific services for exploration and exploitation of minerals".
Sources: PIB, NALCO HCL MECL Websites

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