- A joint venture company namely Khanij Bidesh India Ltd. (KABIL) is to be set up with the participation of three Central Public Sector Enterprises namely, National Aluminum Company Ltd.(NALCO), Hindustan Copper Ltd.(HCL) and Mineral Exploration Company Ltd. (MECL).
- The objective of constituting KABIL is to ensure a consistent supply of critical and strategic minerals to the Indian domestic market.
- While KABIL would ensure mineral security of the Nation, it would also help in realizing the overall objective of import substitution.
- The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30.
Why need KABIL?
- The sustained source of mineral and metal commodities is imperative for the transportation and manufacturing segment.
- Recalling the commitment at the UN Climate Change Conference, Pairs, 2015, where India has pledged to reduce greenhouse gas emissions and opting for a greener mode of transportation by emphasizing upon Electric Vehicle Mobility.
- It is therefore important to ensure energy storage through batteries.
- Among such twelve minerals identified as strategic minerals, which have a meager resource base, Lithium Cobalt is significant.
What will KABIL do?
- The KABIL 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 sourcing of these minerals or metals is to be done by creating trading opportunities, G2G collaborations with the producing countries or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries.
- 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.