The Ministry of Mines in India has clarified that there are no plans to merge three key state-owned enterprises: Indian Rare Earths Limited (IREL), Hindustan Copper Limited (HCL), and National Aluminium Company Limited (NALCO) into a single entity called the National Critical Mineral Corporation. This comes amid comparisons with China’s model of state-backed monopolies, which has contributed to the country’s dominance in the critical minerals market.
The Indian government has stated that IREL, HCL, and NALCO will continue to operate independently under the government’s oversight. Instead of consolidating these companies, the government is focusing on implementing technological reforms to improve transparency and efficiency in mineral management. Recent guidelines issued by the Ministry of Mines aim to prevent grade misclassification of iron ore and other minerals by using blockchain-based tracking and AI-powered satellite audits.
IREL, HCL, and NALCO are all crucial players in India’s strategic mineral value chain. IREL is involved in mining and processing rare earth minerals, while HCL is the only vertically integrated copper producer in India. NALCO, on the other hand, is engaged in integrated operations of bauxite mining, alumina refining, aluminium smelting, and power generation.
The government’s decision not to merge these companies suggests that it is taking a different approach to managing its critical mineral resources. Rather than relying on a single, centralized entity, the government is opting for a more decentralized approach that allows each company to operate independently. This approach is likely driven by a desire to promote competition and innovation in the sector, while also ensuring that India’s critical mineral resources are managed in a responsible and sustainable manner.
Overall, the Ministry of Mines’ clarification on the non-merger of IREL, HCL, and NALCO provides insight into the Indian government’s approach to managing its critical mineral resources. By leveraging technology and promoting independent operation of state-owned enterprises, the government aims to strengthen India’s position in the global minerals market while ensuring transparency and accountability.