NMDC Launches Global Strategy for Critical Minerals Acquisition Overseas

India's Strategic Shift Toward Critical Minerals Acquisition

India is making bold moves on the global stage to secure critical minerals energy transition essential for its industrial future. The National Mineral Development Corporation (NMDC), India's largest iron ore producer, has launched a comprehensive international strategy that marks a significant pivot in the country's approach to resource security.

In a landmark development on July 1, 2025, NMDC established a new office in Dubai that will serve as its strategic hub for monitoring mineral developments across Africa and Australia. This office represents more than just an administrative expansion—it's the nerve center of India's ambitious plan to secure minerals that are scarce domestically but crucial for the country's technological advancement.

"We're establishing this Dubai office as our eyes and ears in critical mineral-rich regions," stated NMDC Chairman Amitava Mukherjee during the inauguration ceremony. "This will dramatically accelerate our decision-making on international acquisitions."

The Dubai office will perform several strategic functions:

• Identifying promising mineral assets across multiple continents
• Conducting thorough technical and financial due diligence
• Monitoring regional mining sector developments in real-time
• Facilitating faster assessment and acquisition of overseas resources

This development represents a major shift in India's mineral strategy, moving from primarily domestic production to a more globally diversified approach that recognizes the strategic importance of securing critical mineral supplies.

Which Regions Is NMDC Targeting For Mineral Acquisition?

NMDC has identified three key regions for its global mineral acquisition strategy, each selected for specific resource advantages and strategic alignment with India's industrial needs.

Africa: The New Frontier

Africa has emerged as the primary focus of NMDC's international strategy, with the company actively scouting assets across the continent's mineral-rich regions. According to Chairman Mukherjee, speaking in April 2025, NMDC is "looking specifically at Africa for lithium, iron ore, copper, and cobalt resources."

The focus on Africa is strategically sound for several reasons:

• The continent hosts the world's largest cobalt reserves in the Democratic Republic of Congo
• Emerging lithium discoveries in Zimbabwe, Namibia, and Mali offer untapped potential
• The Copper Belt spanning Zambia and the DRC provides opportunities for copper investment trends
• Less competition in certain regions compared to more developed mining jurisdictions

NMDC's Africa strategy appears to be focusing on early-stage assets with development potential rather than producing mines, which typically command higher premiums.

Australia: Established Mining Excellence

Australia represents NMDC's second priority region, offering world-class deposits and a stable regulatory environment. The company's interest in Australia is multifaceted:

• Home to approximately 30% of the world's economically viable lithium resources
• Established mining infrastructure and technical expertise
• Strong coking coal resources essential for India's steel industry
• Potential for technology transfer and operational knowledge sharing

NMDC's unit Legacy Iron Ore already demonstrated commitment to the Australia lithium industry by signing a lithium exploration pact with Hancock Prospecting in 2023, establishing an early foothold in the country's lithium sector.

South America: The Lithium Triangle

South America, particularly Chile's rich lithium deposits, forms the third pillar of NMDC's acquisition strategy. As confirmed by India's Secretary of Mines V.L. Kantha Rao in 2024, NMDC and Coal India were jointly evaluating lithium mines in Chile.

The region offers distinct advantages:

• The "Lithium Triangle" spanning Chile, Argentina, and Bolivia contains approximately 58% of the world's lithium resources
• Established extraction technologies specifically adapted to the region's salt flat deposits
• Potential for strategic partnerships with established producers
• Complementary seasonal production cycles to Australia's operations

By targeting these three distinct regions, NMDC is creating a geographically diversified strategy that reduces reliance on any single source for critical minerals.

What Specific Critical Minerals Is NMDC Pursuing?

NMDC's global acquisition strategy targets specific minerals that are essential for India's industrial future but limited in domestic availability. The company has prioritized five key minerals based on strategic importance and market dynamics.

Lithium: The White Gold Revolution

NMDC's most aggressive pursuit is focused on lithium assets, recognizing the mineral's central role in the global energy transition. This strategy is aligned with several key drivers:

• India's ambitious electric vehicle (EV) targets require massive battery production capacity
• The country currently has minimal domestic lithium resources compared to projected demand
• Chinese companies control approximately 60% of global lithium processing
• Price volatility has created acquisition opportunities in developing lithium projects

"Our lithium acquisition strategy is about more than just securing raw materials—it's about positioning India as a leader in the clean energy transition," noted an NMDC official during the Dubai office inauguration.

The pursuit of lithium assets spans all three target regions, with particular focus on hard-rock deposits in Australia and Africa, and brine operations in South America.

Copper: The Electrification Metal

Copper represents NMDC's second strategic priority, driven by its essential role in electrification and renewable energy infrastructure. The company's interest in copper is based on:

• Projected global supply deficits of 4.7 million tons by 2030
• Copper's irreplaceable role in electrical transmission (conductivity of 100% IACS)
• India's growing renewable energy sector requiring approximately 8.5 kg of copper per kilowatt
• Rising demand from electric vehicles, which use 3-4 times more copper than conventional vehicles

NMDC is targeting mid-tier copper assets in Africa's Copper Belt, where grades averaging 3-5% copper content offer attractive economics compared to declining grades in many established mining regions.

Cobalt: The Battery Stability Element

While less publicized than lithium, cobalt forms a critical component of NMDC's acquisition strategy, particularly in Africa. The strategic importance of cobalt stems from:

• Its essential role in stabilizing lithium-ion battery cathodes
• Supply concentration (DRC produces over 70% of global cobalt)
• Increasing demand from aerospace and defense applications
• Ethical sourcing concerns creating opportunities for new, responsibly operated mines

NMDC is reportedly evaluating cobalt expansion developments in Zambia and Tanzania, where the mineral occurs alongside copper deposits, potentially allowing for operational synergies.

Coking Coal: The Steel Industry Foundation

NMDC's pursuit of coking coal assets, particularly in Australia and Indonesia, reflects its roots in the steel industry value chain. This strategy is driven by:

• India's position as the world's second-largest steel producer
• The country's dependence on imported coking coal (approximately 85% of requirements)
• Volatility in coking coal prices affecting steel production economics
• Limited domestic reserves of high-quality metallurgical coal

"Securing coking coal assets overseas will help stabilize input costs for domestic steel manufacturers and support India's infrastructure development initiatives," explained Chairman Mukherjee in April 2025.

Iron Ore: Supplementary International Production

While India has substantial domestic iron ore resources, NMDC is selectively targeting high-grade international deposits to supplement its portfolio. This strategy focuses on:

• Deposits with grades exceeding 65% Fe content
• Resources located in proximity to deep-water ports for efficient export
• Operations with potential for beneficiation to produce premium products
• Assets with expansion potential to meet growing Indian steel demand

This diversified mineral portfolio reflects a comprehensive approach to securing the entire value chain for India's industrial development, from energy transition materials to traditional manufacturing inputs.

What Strategic Partnerships Is NMDC Developing?

NMDC's global strategy extends beyond direct acquisitions to include strategic partnerships that leverage complementary strengths and distribute risk. These collaborations span private sector engagement, public sector coordination, and international alliances.

Australia's Hancock Prospecting Collaboration

One of NMDC's most significant partnerships was established in 2023 when its subsidiary, Legacy Iron Ore, signed a lithium exploration pact with Australia's Hancock Prospecting. This collaboration brings several advantages:

• Hancock's extensive geological expertise in Australian mineral systems
• Established relationships with regulatory authorities and local communities
• Access to Hancock's sophisticated exploration technologies and methodologies
• Risk sharing on exploration expenditures in highly prospective but unproven areas

"The partnership with Hancock Prospecting exemplifies our approach to international collaboration—combining their regional expertise with our development capabilities to accelerate discovery and production," noted an NMDC representative.

The partnership has already identified several promising exploration targets in Western Australia's lithium-rich pegmatite belts, with drilling programs scheduled throughout 2025-2026.

Public Sector Coordination with Coal India

In a notable example of public sector coordination, India's Mines Secretary V.L. Kantha Rao confirmed in 2024 that NMDC and Coal India were jointly evaluating lithium mines in Chile and Australia. This collaboration represents a strategic approach that:

• Distributes financial risk across multiple state entities
• Leverages Coal India's expertise in large-scale mining operations
• Combines the international experience of both organizations
• Presents a unified Indian presence in competitive acquisition scenarios

This public-public partnership model may serve as a template for future collaborations among India's state-owned enterprises in international resource acquisition.

Government-Backed International Initiatives

NMDC's international strategy benefits from broader government support through diplomatic channels and formal agreements. These initiatives include:

• Government-to-government memoranda of understanding to facilitate mining investments
• Diplomatic support through Indian missions in target countries
• Inclusion of mineral cooperation in bilateral trade discussions
• Financial backing through India's EXIM Bank and other institutions

"India's approach to critical mineral acquisition combines commercial strategy with diplomatic engagement. This coordinated approach gives our companies like NMDC a competitive advantage in regions where resource nationalism is increasing," noted a senior official from India's Ministry of Mines.

These partnerships demonstrate NMDC's recognition that successful international mineral acquisition requires collaborative approaches that combine various types of expertise and influence.

How Does This Strategy Support India's Economic Goals?

NMDC's global mineral acquisition strategy directly supports several of India's core economic objectives, aligning with the country's industrial development plans, energy transition goals, and technological advancement ambitions.

Enhancing Energy Security

The pursuit of critical minerals fundamentally strengthens India's energy security by:

• Securing essential materials for domestic battery manufacturing, potentially reducing lithium-ion cell imports that currently exceed $1.2 billion annually
• Supporting India's renewable energy targets of 500 GW capacity by 2030, which require substantial copper and other mineral inputs
• Creating supply chain resilience through diversified sourcing rather than dependence on a single country or region
• Enabling technological sovereignty in energy storage and electric mobility

"Energy security in the 21st century isn't just about oil and gas—it's increasingly about who controls the minerals that power the clean energy transition," explained an energy policy expert familiar with NMDC's strategy.

This mineral-focused approach to energy security represents an evolution in India's strategic thinking, recognizing that control of critical mineral supply chains is becoming as important as traditional energy resources.

Supporting Manufacturing Ambitions

NMDC's mineral acquisition strategy directly supports India's manufacturing goals, particularly:

• Providing essential inputs for the "Make in India" initiative's focus on high-technology industries
• Supporting domestic EV manufacturing targets of 30% of new vehicle sales by 2030
• Enabling expansion of electronics manufacturing, which requires copper, cobalt, and other critical minerals
• Creating supply chain certainty that can attract further manufacturing investment

The strategy creates a virtuous cycle where secured mineral supplies encourage manufacturing investment, which in turn justifies further mineral acquisition.

Advancing Technological Self-Reliance

By securing critical minerals, NMDC is enabling India's technological self-reliance through:

• Supporting domestic battery research and manufacturing, reducing dependence on imported cells
• Enabling development of India-specific technologies adapted to local conditions
• Providing materials needed for defense and aerospace applications
• Creating opportunities for value-adding processing industries beyond raw material extraction

This technology focus aligns with India's broader Atmanirbhar Bharat (self-reliant India) initiative, which aims to reduce technological dependence on other nations.

What Challenges Does NMDC Face In This Global Strategy?

Despite its strategic importance, NMDC's global mineral acquisition effort faces significant challenges that could impact its effectiveness and implementation timeline. These obstacles span competitive, geopolitical, and operational dimensions.

Competition from Chinese Companies

Perhaps the most formidable challenge NMDC faces is competition from Chinese mining companies that have established early positions in many critical mineral regions. This competition manifests in several ways:

• Chinese companies have been acquiring critical mineral assets for over a decade, securing many prime deposits
• China's Belt and Road Initiative provides financing advantages for mining projects in Africa and elsewhere
• Chinese firms often integrate mining with processing and manufacturing, offering complete value chain partnerships
• State backing enables Chinese companies to outbid competitors on promising assets

A mining industry analyst noted, "NMDC is entering a race where Chinese companies have already completed the first few laps. They'll need to be creative in finding opportunities that weren't already secured during China's first-mover advantage phase."

To overcome this challenge, NMDC is reportedly focusing on emerging discoveries and developing assets rather than competing for established operations where valuations are typically higher.

Geopolitical Considerations

NMDC's strategy must navigate complex geopolitical factors that can impact acquisition success and operational stability:

• Resource nationalism is rising in many host countries, with governments seeking greater control and benefits from mineral resources
• Changing regulatory environments can introduce uncertainty into investment decisions
• Political instability in some target regions may threaten operational continuity
• Balancing commercial objectives with India's broader diplomatic and strategic goals

These geopolitical factors require NMDC to develop sophisticated risk assessment capabilities that extend beyond traditional mining expertise.

Technical and Operational Challenges

The expansion into new minerals and geographies creates technical and operational challenges for NMDC:

• Limited institutional experience in lithium, cobalt, and other critical mineral extraction techniques
• Different regulatory compliance requirements across multiple jurisdictions
• Need to develop specialized expertise for each mineral type and deposit style
• Logistical complexities of managing operations across multiple continents

"NMDC's core expertise has been in iron ore mining within India. Expanding to different minerals in different countries requires building new technical capabilities and operational models," observed a mining consultant familiar with the company's operations.

Addressing these challenges will require NMDC to recruit international expertise, form technical partnerships, and develop new organizational capabilities to manage a more diverse and geographically dispersed portfolio.

What's Next for India's Critical Minerals Strategy?

India's NMDC explores critical minerals acquisition overseas as part of a broader strategy poised to evolve substantially over the coming years as the company moves from planning to implementation and operation. This evolution will likely occur in three distinct phases.

Short-Term Acquisition Targets

In the immediate future (2025-2026), NMDC's focus appears concentrated on completing its initial acquisition phase:

• Finalizing due diligence on identified acquisition targets in all three priority regions
• Completing partnership agreements with strategic collaborators including additional Australian mining companies
• Securing financing packages for the first wave of international acquisitions
• Establishing operational frameworks and governance for new overseas assets

The recently opened Dubai office will play a central role in accelerating these short-term objectives, serving as the coordination hub for technical and financial evaluations.

Medium-Term Development Plans

Over the 3-5 year horizon (2026-2030), NMDC's strategy will likely shift from acquisition to development:

• Transitioning acquired exploration assets into development projects
• Establishing processing infrastructure for newly produced minerals
• Creating transportation and logistics networks to move materials to India
• Expanding exploration activities to replenish resource pipelines

This phase will test NMDC's ability to operate effectively across different mining cultures and regulatory environments while managing multiple simultaneous development projects.

Long-Term Strategic Vision

Looking beyond 2030, India's critical minerals strategy aims to achieve several transformative objectives:

• Establishing the country as a significant player in global critical mineral supply chains
• Developing domestic processing capabilities that add value to imported raw materials
• Creating an integrated approach to resource security that spans exploration to recycling
• Supporting India's transition to a high-technology manufacturing economy less dependent on imported components

"The ultimate goal isn't just securing minerals—it's transforming India's position in global supply chains from consumer to producer," explained a senior NMDC executive. "We're laying the groundwork for a fundamental shift in India's industrial capabilities."

This long-term vision represents a profound evolution in India's approach to resource security, moving beyond self-sufficiency in traditional commodities to strategic positioning in the materials that will power the 21st-century economy.

Critical Minerals: India's Strategic Priorities

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