OIL and HCL Join Hands to Boost India’s Strategic Mineral Security

As India accelerates its journey towards clean energy, digital innovation, and defence modernization, securing critical mineral supply will be as important as securing oil and gas.

In a landmark development that underscores India’s thrust towards self-reliance in critical resources, Oil India Limited (OIL) and Hindustan Copper Limited (HCL) signed a Memorandum of Understanding (MoU) on September 19, 2025, for collaboration in the exploration and development of critical and strategic minerals, including copper and associated minerals. The agreement marks a decisive step in strengthening India’s capacity to secure key raw materials vital for its industrial, energy, and technological future.

A Strategic Collaboration for Self-Reliance

The MoU was signed and exchanged in the presence of Mr. Sanjiv Kumar Singh, Chairman and Managing Director of HCL, and Dr. Ranjit Rath, Chairman and Managing Director of Oil India, along with senior officials of both PSUs.

The partnership comes at a time when the global demand for critical minerals such as copper, lithium, cobalt, and rare earth elements is rising sharply due to their extensive use in renewable energy technologies, electric vehicles (EVs), advanced electronics, defence systems, and green infrastructure. India, aspiring to reduce dependence on imports, is focusing on building domestic capabilities through such collaborations.

Role of Hindustan Copper Limited (HCL)

HCL, a Miniratna PSU under the Ministry of Mines, is the only integrated copper-producing company in India. It engages in mining, beneficiation, smelting, refining, and continuous cast rod production. Currently, HCL’s operations are focused on the extraction and sale of copper concentrates, a crucial raw material for downstream industries.

With India’s copper demand projected to nearly double by 2030, HCL’s enhanced exploration and production capabilities will play a critical role in meeting the nation’s needs for infrastructure, power generation, renewable energy, and electronics.

Role of Oil India Limited (OIL)

OIL, a Maharatna PSU under the Ministry of Petroleum & Natural Gas, is a leading player in India’s oil and gas sector, with expertise in exploration, development, production, and transportation of hydrocarbons. In recent years, OIL has diversified into renewable energy, hydrogen, and now critical minerals, recognizing their indispensable role in the energy transition and national security.

Through this MoU, OIL brings its geoscientific expertise, exploration capabilities, and operational experience to mineral development, thereby complementing HCL’s mining and processing strengths.

Advancing the National Critical Mineral Mission

This partnership aligns with the objectives of the Government of India’s National Critical Mineral Mission (NCMM), which aims to:

• Secure reliable supplies of critical minerals for energy security and strategic industries.

• Reduce dependence on imports by developing domestic reserves.

• Promote exploration, sustainable mining, and beneficiation of minerals.

• Support Atmanirbhar Bharat (Self-Reliant India) in high-tech manufacturing and clean energy transitions.

Copper, in particular, is a strategic metal with wide-ranging applications in power transmission, renewable energy systems, EV manufacturing, electronics, and defence equipment. Strengthening India’s domestic copper reserves will therefore be vital for sustaining industrial growth and technological advancement.

Global Context and India’s Strategic Imperative

Globally, critical minerals are increasingly at the centre of geopolitical competition. Countries such as China, the U.S., and Australia are ramping up control over supply chains. For India, which currently imports a significant share of its copper and other critical minerals, this partnership represents a strategic shift towards resource independence.

By leveraging the combined strengths of OIL and HCL, India aims to position itself as a global hub for mineral processing and green technologies, while ensuring long-term supply security.

Looking Ahead

The OIL–HCL partnership is expected to facilitate:

• Joint exploration projects in mineral-rich regions of India.

• Technology collaboration for modern mining, beneficiation, and processing.

• Development of value-added products from copper and associated minerals.

• Strengthened participation in global supply chains of critical minerals.

As India accelerates its journey towards clean energy, digital innovation, and defence modernization, securing critical mineral supply will be as important as securing oil and gas. The MoU between OIL and HCL is, therefore, not just a corporate partnership but a strategic milestone in India’s economic and security roadmap.