State miners establish GIFT City base for critical minerals acquisition

India's state-owned mineral companies are establishing subsidiaries in GIFT City, Gujarat's special economic zone, to finance and coordinate their international hunt for critical minerals. The initiative reflects a strategic pivot by public sector undertakings to tap global financial markets while securing supplies of materials essential for defence, clean energy and advanced manufacturing.

The National Mineral Development Corporation (NMDC), a key player in India's mining sector, characterised the GIFT City subsidiary as a platform for channelling investments into overseas mineral assets. Officials described the move as instrumental in supporting long-term expansion plans in jurisdictions with untapped reserves of rare earths, lithium, cobalt and other strategic commodities.

India's dependence on imports for critical minerals has intensified as domestic demand surges across battery manufacturing, renewable energy and defence production. Establishing operational hubs in international financial centres enables PSUs to structure complex cross-border transactions, access foreign currency financing, and manage mineral procurement operations more efficiently.

The GIFT City strategy aligns with broader government efforts to reduce supply-chain vulnerabilities and build strategic reserves. By consolidating international operations through a centralised financial platform, state miners aim to negotiate better terms with asset holders and mining companies while maintaining government oversight of critical resource acquisition.

Industry observers note the approach mirrors strategies employed by resource-hungry nations in securing long-term mineral contracts. The move signals India's determination to compete aggressively in global mineral markets as competition for critical materials intensifies among major economies.