India seeks rare earth samples from Rosneft-owned Siberian deposit, source says

Indian state-run miner IREL is in discussions with Rosneft to obtain rare earth samples from the Tomtor deposit in Siberia, which the Russian oil major acquired last year, as New Delhi looks to secure access to critical minerals largely dominated by China, a source said.

The negotiations are being conducted via government channels, the source noted, adding that the material would be processed in Russia before being sent to India.

India aims to assess the deposit’s mineral composition before deciding on any deeper engagement, said the source, who requested anonymity because the talks are private.

IREL, backed by the state, is leading India’s international efforts to secure rare earth supplies to meet growing domestic demand and reduce reliance on China, amid continued tensions between the two countries.

IREL, India’s Department of Atomic Energy, which supervises the miner, the Foreign Ministry, the Mines Ministry and Rosneft did not immediately respond to Reuters’ requests for comment.

The Tomtor deposit, located in Russia’s Yakutia region in Siberia, is regarded as one of the largest undeveloped rare earth reserves globally. The United States has imposed sanctions targeting Russia’s energy sector, including measures affecting Rosneft and Lukoil, in response to Moscow’s war in Ukraine.

Rare earth elements are essential components in permanent magnets used in electric vehicle motors as well as various clean energy and defence technologies.

In November, the Indian government approved a 73 billion rupee ($770.77 million) initiative to promote domestic rare earth magnet production. However, India currently lacks commercial-scale facilities capable of refining and separating the full spectrum of rare earth elements to high levels of purity.

Last year, Reuters reported that India had been exploring rare earth samples from neighbouring Myanmar with support from a powerful rebel group. IREL has also been in talks with companies in Japan and South Korea regarding plans to commercially manufacture rare earth magnets, according to earlier Reuters reports.

The company is additionally evaluating rare earth mining prospects in Argentina, Australia and Malawi, and intends to launch rare earth magnet production between 2029 and 2030, the source said.

Although India holds the world’s third-largest rare earth reserves—estimated at about 7.23 million metric tons—it does not yet produce rare earth magnets domestically.