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Hindustan Copper Ltd (HCL) and state-owned Oil India Ltd (OIL) have entered into an initial pact on Friday to explore and develop critical and strategic minerals, including copper.

The development comes in the backdrop of China restricting exports of rare earth minerals to other countries, leading to a shortfall of rare earth that is essential for use in electronics, electric vehicles (EV) and wind turbines.

While OIL has a proven expertise in exploration, development, production and transportation of crude oil and natural gas, HCL, a PSU under the mines ministry, is engaged in mining, production, processing and marketing of copper and related products.

The partnership will see it focus on mining and beneficiation of copper ore and selling of copper concentrate as Hindustan Copper is engaged in copper ore mining and holds all the operating mining leases for copper ore in the country.

 

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"In a significant step towards strengthening India’s self-reliance in critical and strategic mineral sourcing, Oil India Ltd and Hindustan Copper Ltd signed a Memorandum of Understanding (MoU) on September 19, 2025," HCL said in a statement. 

Hindustan Copper had been looking to bid for critical minerals and rare earth element blocks along with other PSUs like Indian Oil Corporation Ltd (IOCL), GAIL (India) and RITES as part of its diversification strategy.

It also signed an agreement with engineering firm RITES Ltd to jointly develop supply chains for metals and minerals, including critical minerals, in both domestic and international markets. They partnered up to participate in exploration, extraction, refining, and production activities in India and abroad.

To accelerate the country’s green energy transition, the government has approved a ₹16,300-crore National Critical Mineral Mission with a total outlay of ₹34,300 crore spread over seven years.

Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential raw materials required to fuel the growth of rapidly growing clean energy technologies.