Hindustan Copper Limited (HCL) and GAIL (India) Limited are close to signing a partnership agreement to jointly explore and develop critical minerals. The two public sector companies are expected to formalise a Memorandum of Understanding (MoU) within the next two weeks, officials familiar with the matter said.

The collaboration will focus on securing essential minerals such as copper, lithium, cobalt and rare earth elements—resources that are vital for sectors like renewable energy, electric vehicles, electronics, and defence manufacturing.

According to sources, the agreement will not only involve exploration within India but will also include efforts to identify and acquire mineral assets abroad. The aim is to reduce dependence on imports and create a more reliable supply chain to support the country’s industrial growth.

This development is part of a larger national strategy to secure long-term access to minerals that are becoming increasingly competitive in global markets. It aligns with the government’s Atmanirbhar Bharat initiative, which encourages self-reliance across critical sectors.

The timing is significant. Earlier this year, Prime Minister Narendra Modi visited Chile—a key supplier of copper and lithium—where both countries agreed to enhance cooperation in the mining sector. Discussions also touched upon starting negotiations for a Comprehensive Economic Partnership Agreement (CEPA) that would cover trade, investments, and mineral development.

If finalised, the HCL-GAIL pact will mark an important step in India’s broader effort to strengthen both domestic capabilities and international partnerships in the mineral space.

Industry observers see the move as a strategic one, especially as nations around the world compete for limited mineral resources to support their energy transitions and high-tech industries.