India, Japan Eye Joint Ventures In Africa's Critical Mineral Sector: Report

(MENAFN- IANS) New Delhi, Oct 16 (IANS) Africa, a continent that is rich in critical mineral resources, is emerging as a priority in India-Japan discussions on closer bilateral ties to build economic security and supply chains. The two countries are positioning themselves to deepen cooperation in critical minerals, digital infrastructure, healthcare, green energy, and resilient supply chains across the Global South, seeing it as an opportunity for the next phase of investment, according to an article in The Diplomat.

India and Japan recognise the world's growing dependence on China for critical minerals. China controls roughly 90 per cent of global rare-earth refining and has also achieved a monopolistic advantage in development aid programs in Africa.

This comes at a time when the Donald Trump administration has decided to cut aid to African countries. Given this situation, African nations are eager to diversify their partnerships which gives India and Japan an opportunity to support Africa's development in a sustainable manner, the article points out.

It highlights that India's processing capabilities, and Japan's capital and technology with Africa as the core of the resource base, can form the basis of a triangular relationship.

This potential is reflected in an MoU signed in June 2025 between Pensana Plc and Toyota Tsusho for rare earth offtake. Toyota Tsusho, the trading arm of Japan's Toyota Group, committed to offtaking up to 20,000 tonnes per year of mixed rare-earth carbonate from London-listed Pensana's Longonjo mine in Angola, with processing at Toyotsu Rare Earths India (TREI) in Visakhapatnam before final delivery to Japanese magnet manufacturers.

This represents a significant step in developing a global rare earth supply chain and strengthening and diversifying the broader rare earth value chain, the article states.

Similarly, the Mozambique LNG project, worth roughly $20 billion and led by France's TotalEnergies, includes two onshore trains capable of producing about 13 million tonnes per annum.

Within the Mozambique LNG project, Indian companies, along with Japan's Mitsui, are already working in tandem on a major energy project in Africa. Indian state-owned firms ONGC Videsh, Bharat Petroleum, and Oil India together hold a combined 30 per cent of Mozambique LNG, while Japan's Mitsui holds 20 per cent.

This model could also be replicated in mineral projects across East and Southern Africa. While Japan has financed the expansion of Kenya's largest port in Mombasa, Indian companies have contributed to related logistics and trade facilitation. India and Japan are also working together to enhance road and rail connectivity in countries like Kenya, Tanzania, and Mozambique, the article observes.

MENAFN16102026000231011071ID1111819035