Logical Reasoning Questions for CLAT | QB Set 63

Africa can make India’s critical mineral mission shine

In the Union Budget 2024-25, Union Finance Minister Nirmala Sitharaman announced the setting up of a Critical Mineral Mission. In August the Ministry of Mines organised a seminar to discuss its objectives. Officials noted that efforts are being fast tracked in ‘mission mode’ towards three aims: expand domestic production, prioritise the recycling of critical minerals, and incentivise overseas acquisition of assets.

Work on these fronts is underway. The amendment made to the Mines and Minerals (Development and Regulation) Act of 1957, resulted in the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 removing six minerals from the atomic list, thus allowing the private sector to explore these in India.

To engage with mineral-rich countries overseas with a mandate to secure supply of critical minerals for the Indian economy, a joint venture of three public sector undertakings, Khanij Bidesh India Limited (KABIL), was founded in 2019. Its first major agreement for lithium exploration and mining was signed with Argentina in 2024 and provides access to five blocks owned by Camyen, the Catamarca province in Argentina.

Major and immediate-acting opportunities in Africa for India’s Critical Minerals Mission to succeed, New Delhi must help build networks with African countries for exploration of minerals in Africa. A familiar player among countries in Africa, New Delhi shares deep political, economic, and historic connections to the continent.

India will have to collaborate with countries of the continent to take advantage of the significant presence of critical mineral resources.

Wide commercial networks created by a three million strong diaspora. Described by External Affairs Minister S. Jaishankar as the “land of the future,” the recognition of Africa’s importance in advancing global priorities is reflected in New Delhi introducing new diplomatic missions in Africa.

Collaboration on critical minerals will bring in a new dimension to the multifaceted energy partnerships between the regions. Of the total bilateral trade of $95 billion in 2022-23, $43 billion is attributed to the mining and mineral sector. Similarly, a significant portion of the $75 billion that India has already invested in Africa, is by public sector funds for the acquisition of 36 energy assets. India’s imports reportedly surpass 9 million tonnes of coal – accounting for 15% of its coal demand – from Africa, alongside mining imports of natural gas, phosphates, and lithium floats. Further, as part of the International Solar Alliance, the Government of India has also been advocating investment opportunities in Africa as it expands its green energy goals.

Several mining and infrastructure deals have been signed: especially with South Africa for mineral processing plants, Zimbabwe and Namibia have hosted Indian delegations. Tanzania has also been invited for the exploitation and handling of rare earth materials. The region also has major locations for minerals and industrialisation. This presents both opportunities and risks for India’s developmental agenda.

China factor

With increasing international attention, especially the Chinese mining companies have a significant presence in cobalt mining in the Democratic Republic of Congo and recently signed a $7 billion ‘minerals-for-infrastructure’ deal.

Opportunities for collaboration

In this geopolitically fraught environment, where the African agency is looking to build viable alternative partnerships, India can secure new advantages and technology upgrades.

Indian construction companies have completed several projects in 34 African countries, hospitals in Tanzania, and railway lines across Ethiopia, Mozambique, and Mali.

The passage goes on to discuss investment host nations and building mining adjacent infrastructure, identifying several major nations with host operations, and Zambia and Zimbabwe cooperating in expanding mining services and development. India can learn much from the challenges that China has faced in Africa, and the need for a responsible mining policy that safeguards communities and the environment could explore mutually beneficial partnerships.

India’s Critical Minerals Mission should prioritise responsible practices in an era that is often seen to be dominated by the geopolitics of a not-so-green energy transition.

Question 1:
The passage suggests that India’s Critical Minerals Mission is primarily focused on:

• A. Ensuring a steady supply of critical minerals for domestic use
• B. Developing India’s mining industry to compete with China
• C. Promoting sustainable mining practices in Africa
• D. Diversifying India’s energy sources

Question 2:
The author argues that India’s collaboration with African countries is crucial for the success of the Critical Minerals Mission primarily because:

• A. Africa is rich in critical mineral resources
• B. India has a strong historical relationship with Africa
• C. China is also actively pursuing resources in Africa
• D. Africa is in need of foreign investment

Question 3:
The passage suggests that one of the major challenges facing India’s Critical Minerals Mission is:

• A. The lack of political stability in many African countries
• B. The high cost of mining operations in Africa
• C. India’s limited experience in mining and processing critical minerals
• D. The competition from developed countries

Question 4:
Based on the passage, which of the following is NOT a potential benefit of India’s collaboration with African countries in the critical minerals sector?

• A. Access to abundant critical mineral resources
• B. Opportunities for infrastructure development
• C. Increased geopolitical influence in Africa
• D. Reduced dependence on China

Question 5:
The author suggests that India’s Critical Minerals Mission should prioritize:

• A. Maximizing profits from mining operations
• B. Protecting the environment and local communities
• C. Establishing a dominant position in the global critical minerals market
• D. Developing new technologies for mining and processing

Question 6:
Which of the following is a potential drawback of India’s increasing reliance on critical minerals from Africa?

• A. Increased vulnerability to geopolitical risks in the region
• B. Decreased domestic production of critical minerals
• C. Higher costs associated with mining operations in Africa
• D. Negative environmental impacts in Africa