India Resumes Talks With Zambia to Secure Critical Minerals and Copper Supplies

India has resumed talks with Zambia to explore investment opportunities in copper and other critical minerals, according to two sources familiar with the matter. The discussions mark a renewed effort by New Delhi to secure raw material supplies overseas to meet the demands of its rapidly growing economy.

Officials from India’s Ministry of Mines held preliminary discussions with Zambian officials on August 26. The sources, who requested anonymity due to the confidentiality of the talks, stated that the two sides did not discuss a stalled project that had previously halted negotiations.

Earlier, in April, reports indicated that talks between India and Zambia had stalled over a lack of assurances from Lusaka regarding mining rights for a 9,000-square-kilometre area awarded to India last year. India’s Ministry of Mines did not respond to requests for comment, while a spokesperson for Zambia’s Ministry of Mines stated they could not confirm anything at this time.

India currently stands as the world’s second-biggest buyer of refined copper. The country's copper imports have increased sharply following the 2018 closure of Vedanta’s Sterlite Copper smelter. Government projections indicate that India may need to import between 91% and 97% of its copper concentrates by 2047.

To address this supply gap, Khanij Bidesh India Ltd, the primary vehicle for securing critical mineral supplies overseas, is evaluating investment opportunities across several countries including Australia, Brazil, Canada, Russia, and Indonesia, alongside ongoing talks regarding a project in Malawi. India has actively pursued critical mineral blocks through government-to-government agreements across Africa, Australia, and Latin America.

The Federation of Indian Mineral Industries noted that Africa, particularly the Democratic Republic of Congo and Zambia, plays a crucial role in fulfilling India's rising requirements for copper and cobalt. A spokesperson for the federation suggested that Indian companies should focus on brownfield and near-production projects, supported by long-term offtake arrangements.

"Securing raw materials through government-to-government channels is a strategic necessity for high-demand economies like India. With domestic copper production falling short of long-term projections, establishing stable international supply chains will be critical for industrial stability. Indian enterprises and public ventures focusing on near-production assets and structured offtake agreements can mitigate operational risks while ensuring steady inputs for downstream manufacturing sectors." — Dr. Shishir Gupta, Founder & CEO, StartupLanes