Sri Lanka (Commonwealth) _ India is in negotiations with Sri Lanka to purchase a graphite mining block in the island nation, moving forward with its strategy to form international coalitions to ensure vital mineral supplies.
Since graphite is the most widely used material for anodes in lithium-ion and other batteries, the demand for it is rising continuously. According to reports, the Indian government held talks with the Sri Lankan government about purchasing graphite mines there.
The sources, however, declined to provide further information, claiming that the discussions are still in their very early stages. Sri Lankan graphite is of exceptionally high grade. The government published a list of 30 essential minerals last year, and graphite is one of them.
The government has said that it will begin actively searching for vital mineral assets abroad on behalf of the public sector businesses Coal India, NMDC, and ONGC Videsh Ltd (OVL). The state-owned Oil and Natural Gas Corporation’s foreign investment division is known as OVL. These public sector companies are already present overseas in some capacity.
In the meantime, three public sector companies joined together to create Khanij Bidesh India Ltd (KABIL), a joint venture, to search for mineral assets abroad. Three public sector enterprises, namely Mineral Exploration and Consultancy Ltd (MECL), Hindustan Copper Ltd (HCL), and National Aluminium Company Ltd (Nalco), hold KABIL.Additionally, the United Arab Emirates has extended an offer to the nation to collaborate on essential minerals, they claimed.
Since graphite is needed to make batteries, it is essential for India. In order to acquire a graphite block on the island, work is now being done on a cooperation with Sri Lanka, an official stated, adding that private organizations have also been invited to actively engage in the process.
With a carbon concentration of above 98%, Sri Lankan graphite is regarded as among of the cleanest in the world, according to authorities. India has also held discussions with other nations on obtaining other vital minerals. According to government sources, agreements have been struck with Tanzania for niobium and graphite, South Africa for graphite and titanium, and the Democratic Republic of the Congo for cobalt and copper.
In addition to investigating foreign mineral deposits, the government is encouraging domestic essential mineral extraction through auctions. Graphite is present in six of the eighteen blocks up for auction in the second tranche of the key minerals auction, with three blocks each in Madhya Pradesh and Arunachal Pradesh.
According to data from the commerce ministry, the nation imported $38.68 million worth of natural graphite in the fiscal year 2023–2024, an increase of over 6% from $36.59 million in the previous year.
Furthermore, the government is reportedly in talks to explore minerals with 20 other nations, of which 13–14 are thought to have significant mineral deposits, according to the source.
The governments is further seeking the business deals with several other nations, including Zambia, Mozambique, South Africa, Tanzania, Brazil, Chile, the Democratic Republic of the Congo, and Argentina, with potential vital mineral deposits. The ministry of mining plans to expand the list of countries.
The government of Tanzania is also searching for sources of graphite and niobium, which are utilized to make alloys and parts for airplanes. In the Democratic Republic of the Congo, on the other hand, the government plans to search for reserves of copper and cobalt.
In Sri Lanka, there has been graphite mining ever since the Dutch took over the nation. It is the only nation in the world that presently produces less than 1% of the world’s total commercial production of vein graphite, also referred to as lump graphite of the global output of graphite. The majority of the island’s graphite (sometimes referred to as plumbago) mines were found in the northwest and southwest, with operating pits being in Aluketiya, Meegahatenna, Matugama, and Agalawatta.
Beginning in 1903, the Geological Survey Department kept records of every mine, shallow working, and graphite pit under the jurisdiction of the Inspector of Mines. Nevertheless, with the establishment of the Geological Survey and Mines Bureau in 1992, these documents were destroyed. The miners were Sinhalese peasants who contributed to local legend by driving mines using rudimentary tools.
Entrepreneurs like Don Charles Gemoris Attygalle, Don Spater Senanayake, and Duenuge Disan Pedris built their riches in plumbago mining, which resulted in the control of numerous major mines by several business families, such as De Mels, Kotalawelas, and Senanayakes. Due to their ANC participation, these families controlled Ceylon’s political scene both before and after independence.
Many of these politicians—Dudley Senanayake in Digama and Sir John Kotelawala in Dangaslanda—established their support bases in these mining regions, where they have historically held sway over the communities where their mines hired laborers. Between 9,000 and 10,000 tons are now produced annually in Sri Lanka from two underground mines, Kahatagaha and Bogala.
