India is considering not merely buying raw materials from Russia, but making direct investments in extractive assets. India’s Deputy Minister of Steel Sandeep Poundrik has stated that Indian companies are ready to participate in mining projects in Russia, up to and including full or partial acquisition of mines. This signals a shift in strategy: New Delhi wants to secure a foothold in Russia’s resource base through long-term investment rather than trade alone.
India’s primary interest lies in coking coal, as well as nickel and manganese — all critical inputs for the steelmaking industry. Direct participation in mining will allow Indian steelmakers to reduce their exposure to supply disruptions and price volatility on global markets. Indian steel plants are currently expanding capacity aggressively, and guaranteed access to raw materials is becoming a matter of national economic security.
However, the track record of foreign investors in Russia’s coal sector is mixed. Australia’s Tigers Realm Coal operated in Chukotka, and Italian companies tried their hand in the Kuzbass — neither experience ended particularly well. Among active cases, there is a joint Chinese project in Transbaikalia involving En+, though it has been little heard from recently, with management reportedly citing the impact of secondary sanctions as a factor slowing progress beyond initial expectations.
India is nonetheless pressing ahead with the idea. Unlike European or Australian companies, Indian businesses have historically been less exposed to Western sanctions pressure, which could prove a competitive advantage. Russia and India also have an established track record of cooperation in the energy sector — Indian companies have invested in Sakhalin-1 and the Vankor field — and hard minerals appear to be the next frontier.
For Russia, the arrival of Indian capital in the mining sector represents an opportunity to diversify export markets and attract investment in new deposit development, particularly given the withdrawal of traditional Western partners. For India, it offers a chance to access mineral resources at domestic pricing and reduce dependence on Australian and African coal.
The Deputy Minister’s statement is more than a declaration of intent — it reflects a genuine strategic ambition. If Indian companies move forward with acquiring Russian mines, it could reshape the global balance of power in the coking coal and nickel markets.
Source: @Coala_russia
Image: RIA Novosti / Alexander Ivanov
