Indian miner IREL is in talks with Russian oil producer Rosneft to source rare earth samples from Tomtor, a Siberian deposit acquired by Rosneft last year. According to reports from Reuters, the discussions are taking place through government channels, with the samples to be processed in Russia before shipment to India. India is keen to study the mineral composition of the deposit before considering deeper engagement, as reported by sources familiar with the matter. The talks are confidential and involve multiple government agencies including IREL, the Department of Atomic Energy, foreign ministry, mines ministry and Rosneft. State-backed IREL is at the forefront of India's global outreach to secure rare earth supplies to meet rising domestic demand and wean itself off dependence on China, with ties between the two neighbours remaining frosty.
The talks represent India's broader strategy to secure rare earth supplies amid rising domestic demand and reduce dependence on China. As reported by Reuters, IREL is at the forefront of India's global outreach to secure rare earth supplies, with ties between India and China remaining frosty. Rare earth elements are critical for making permanent magnets used in electric vehicle motors and various clean energy and defence applications. The United States has imposed sanctions targeting Russia's energy sector, with measures affecting Rosneft and Lukoil, to pressure Moscow over the war in Ukraine. Tomtor is located in Russia's Siberian region of Yakutia and is considered one of the world's largest undeveloped rare earth deposits.
In November, New Delhi approved a ₹7,300 crore ($770.77 million) programme to support rare earth magnet manufacturing. According to Reuters, India lacks commercial-scale facilities capable of refining and separating the full range of rare earth elements to high purity levels. The country has the world's third-largest rare earth reserves, estimated around 7.23 million metric tonnes, but does not currently produce rare earth magnets domestically.
Beyond the Rosneft discussions, IREL is pursuing multiple international partnerships. As reported by Reuters, the company is also in talks with Japanese and South Korean companies on plans to manufacture rare earth magnets commercially. IREL is exploring rare earth mining opportunities in Argentina, Australia and Malawi, and plans to begin rare earth magnet production in 2029 to 2030. Last year, India was scouting rare earth samples from neighbouring Myanmar with assistance from a powerful rebel group, according to Reuters reports. The company did not respond to Reuters' requests for comment, while IREL, India's Department of Atomic Energy, the foreign ministry, the mines ministry and Rosneft also did not respond to requests for comment.
