Time to reduce dependency on China for critical minerals: G7

New Delhi: With an aim to reduce dependency on China for critical minerals, Group of Seven (G7) countries have agreed to step up cooperation with resource-rich countries and multilateral development banks, according to reports.

Japan-based The Mainichi national daily reports that finance ministers reached the agreement at a meeting in Washington, DC. The meeting was attended by mineral-producing countries, including Argentina, Australia, India, Indonesia, South Africa and South Korea.

Japanese Finance Minister Satsuki Katayama said the meeting discussed how to strengthen the supply chains of critical minerals.

“It’s a win-win situation for everyone. We can secure stable suppliers across a wide range of countries,” according to her. “For them, it provides an opportunity for new business and growth,” she added.

The meeting was attended by the heads of the World Bank, the Asian Development Bank and other international financial institutions, said the report.

Unlike a US-led initiative on critical minerals, this meeting “is more down-to-earth, focusing on developing business projects that benefit all parties involved”.

The report further stated that the US proposal is designed to insulate Washington’s partners from developments in global markets by setting reference prices within the trade zone through adjustable tariffs.

Meanwhile, India is stepping up efforts to explore critical minerals, promote startups in mining and build strong domestic supply chains to reduce import dependence.

India is in the process of scaling up exploration of critical minerals, creating a startup-driven mining ecosystem and building strong domestic value chains to reduce import dependence.

The government is also focusing on improving project timelines by simplifying approval processes and addressing issues such as forest clearances, which often delay exploration work. Better coordination among different authorities will be necessary to maintain momentum.

Faster approvals, better procurement systems, and timely pre-exploration clearances are necessary to maintain momentum in exploration activities.

—IANS