India seeks rare earth samples from Rosneft-owned Siberian deposit

Indian miner IREL is in talks with Rosneft to source rare ‌earth samples from Tomtor, the Siberian deposit acquired by the Russian oil producer last year, as New Delhi seeks to secure supplies of critical minerals dominated by China, a source said.

The talks are taking place through government channels, ​said the source, adding that the samples would be processed in Russia before being shipped ​to India.

India is keen to study the mineral composition of the deposit before ⁠considering deeper engagement, said the source, who has knowledge of the matter and spoke on ​the condition of anonymity as the discussions are confidential.

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.

IREL, India’s Department of Atomic Energy, which oversees the state miner, the ​foreign ministry, the mines ministry and Rosneft did not respond to Reuters‘ requests for comment.

Tomtor is ​located in Russia’s Siberian region of Yakutia and is considered one of the world’s largest undeveloped rare earth deposits.

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.

Rare earth elements are critical for making permanent magnets used in electric vehicle motors and a range of other clean energy and defence applications.

In November, New Delhi approved a ​73 billion rupees ($770.77 million) program ​to support rare ⁠earth magnet manufacturing.

India lacks commercial-scale facilities capable of refining and separating the full range of rare earth elements to high purity levels.

Last year, India was ​scouting rare earth samples from neighbouring Myanmar with the assistance of a powerful ​rebel group, ⁠Reuters reported.

IREL is also in talks with Japanese and South Korean companies on plans to manufacture rare earth magnets commercially, Reuters reported last year.

The company is also exploring rare earth mining opportunities in Argentina, Australia ⁠and Malawi, ​and plans to begin rare earth magnet production in 2029 ​to 2030, the source said.

India has the world’s third-largest rare earth reserves, estimated around 7.23 million metric tons, but does not currently ​produce rare earth magnets domestically.

($1 = 94.71 rupees)

(By Neha Arora; Editing by Mayank Bhardwaj and Christian Schmollinger)