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Indian companies sign MoU with UAE’s IRH to secure critical minerals

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Synopsis:

Oil India, ONGC Videsh, and KABIL have signed an MoU with UAE’s IRH to jointly develop and acquire critical minerals globally. The partnership aims to secure a stable supply of key minerals for India’s growing energy needs.

Indian companies market today

Three Indian state-owned enterprises—Oil India Ltd. (OIL), ONGC Videsh Ltd. (OVL), and Khanij Bidesh India Ltd. (KABIL)—have signed a Memorandum of Understanding (MoU) with International Resources Holding RSC Ltd. (IRH), based in the United Arab Emirates, to collaborate on critical mineral supply chain initiatives. This partnership aims to enhance India’s access to essential minerals required for energy and technological sectors while strengthening global collaboration in mining and resource acquisition.

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Updated - 13 December 2024
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Strengthening India's critical mineral supply chain

The signing of this MoU marks a strategic move by India to ensure a stable supply of critical minerals essential for its energy and industrial growth. Critical minerals, such as lithium, cobalt, and rare earth elements, are crucial for manufacturing batteries, electric vehicles, and renewable energy technologies. With global demand for these minerals surging, India’s effort to secure reliable sources is both timely and significant.

Through this MoU, the Indian companies and IRH will explore and acquire mineral assets globally, including in countries with rich reserves of these essential resources. This collaboration will focus on identifying viable projects, conducting due diligence, and sharing risk management strategies to optimise operational excellence and long-term offtake agreements.

Role of OIL, OVL, and KABIL in the partnership

Oil India Ltd., a major player in India’s energy sector, along with its overseas subsidiary ONGC Videsh Ltd. (OVL), brings significant expertise in energy resource exploration and production. ONGC Videsh operates in 17 countries, contributing to India’s efforts in securing global energy assets.

Khanij Bidesh India Ltd. (KABIL), a joint venture between National Aluminium Company Ltd. (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration & Consultancy Ltd. (MECL), adds its vast experience in mineral exploration and mining consultancy to the partnership. KABIL’s focus on securing critical minerals, especially for India’s growing electric vehicle and renewable energy sectors, complements the broader goals of this agreement.

International cooperation in mineral acquisition

International Resources Holding RSC Ltd. (IRH), based in the UAE, plays a key role in this agreement by bringing its regional and global mining expertise to the table. The partnership aims to not only enhance India’s access to critical minerals but also develop new opportunities for international cooperation. By aligning with global entities like IRH, Indian companies can better navigate the complexities of resource acquisition and strengthen their standing in the global minerals market.

The MoU between OIL, OVL, KABIL, and IRH represents a major step forward in securing India’s long-term access to critical minerals. This partnership aims to address supply chain vulnerabilities, ensuring that India can meet its growing demand for key materials essential for energy security, industrial development, and technological advancement.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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