From E&P to rare earth minerals at Oil India
China is one of the world's leading suppliers of rare earth minerals.
They're used in everything from mobile phones to computer hard drives, electric and hybrid vehicles to flat-screen monitors and televisions. But India wants to compete with its old adversary.
That's why Oil India has uncharacteristically invited offers from four major consultancy firms to help it expand into the critical and rare earth mineral domain, far removed from its core E&P competence. On March 6 (2024), Oil India sent a limited tender to KPMG Assurance and Consulting Services, Deloitte Touche Tohmatsu India, EY and PwC with an April 5 (2024) bid deadline.
The engagement of a consultant for Oil India to venture into the critical and rare earth minerals domain is the tender title. Whoever wins must help Oil India prepare a business strategy to participate in auctions for critical and rare earth minerals and provide project management services for prospective blocks.
They will report to Oil India's business diversification group at its Delhi corporate office. "The government of India has prioritised critical minerals as a sector for investment, and Oil India intends to explore venturing into critical and rare earth minerals in upcoming and future bids," says the tender.
"Given the increasing importance of critical minerals and the energy transition, Oil India wishes to explore energy resources apart from its present oil and gas portfolio." If this develops further, Oil India might work more closely with the mines ministry on this project.
"Future global economy will be underpinned by technologies that depend on minerals such as lithium, graphite, cobalt, titanium, and rare earth elements," says a June 2023 mines ministry report, which adds these minerals are essential for high-tech electronics, telecommunications, transport, and defence and to power the transition to a low carbon emissions economy and renewable energy. "Hence, it has become imperative to identify and develop value chains for the minerals critical to our country," says the report.