OIL forays into critical mineral mining with its maiden block, plans to scout for assets abroad

New Delhi: State-run Oil India Limited (OIL) has bagged its maiden critical mineral block on Thursday, marking its foray into the sector. According to the Ministry of Mines, OIL has secured a Graphite and Vanadium block in Arunachal Pradesh under Tranche IV of the Auction of Critical and Strategic Mineral Blocks. The acquisition of a critical mineral block is a first for the public sector undertaking (PSU) which is primarily involved in the exploration and production (E&P) of oil and gas.

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OIL looks to diversify into critical mineral mining

Commenting on the development, Saloma Yomdo, OIL’s Director (Exploration & Development) who also holds the additional charge of the post of Director (Operations), said that the acquisition is in line with the mandate given to government agencies as part of India’s plans to develop its critical mineral industry. “The block acquisition is part of our plan to diversify into critical minerals. The government has mandated all its agencies to look for ways to venture into critical minerals. This acquisition is in line with that directive,” the top official told PSU Watch. Going forward, OIL has plans to bid for critical mineral blocks that fit into its “scheme of things,” said Yomdo.

A spokesperson for OIL told PSU Watch that going forward, the PSU will be focussing on all the 30 minerals listed by the Ministry of Mines as ‘critical’ for India. He added that OIL is also looking to acquire critical mineral assets abroad as part of its plan to diversify into the sector.

The Union Budget 2024-25 proposed to set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. The government has mandated PSUs, which already have a presence abroad (Coal India Limited, ONGC Videsh Ltd, NMDC Limited and KABIL), to foray into the critical mineral exploration and mining sector and acquire assets abroad. While Coal India, NMDC and KABIL are actively scouting for critical mineral assets overseas, ONGC Videsh is yet to take a call on the same. Now, Oil India has also joined the list of India’s state-run companies that are looking to acquire critical mineral blocks overseas.

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