RITES and Hindustan Copper sign MoU to co-develop India’s critical mineral supply chain

RITES Limited (NSE: RITES, BSE: 541556), a government-owned transport infrastructure and engineering consultancy, has signed a strategic Memorandum of Understanding with Hindustan Copper Limited on June 6, 2025, to jointly build a robust and sustainable supply chain for critical minerals in India and overseas. The agreement was inked in the presence of Union Minister of Mines G. Kishan Reddy, signaling strong policy backing for a project designed to support India’s mineral security, manufacturing ambitions, and energy transition strategy.

The collaboration between RITES Limited and Hindustan Copper Limited targets the full value chain of critical minerals—from exploration and extraction to refining and logistics. With a sharp focus on developing domestic capacity and reducing import dependence on key inputs like copper, lithium, cobalt, and rare earths, the MoU is part of a broader government-led push to indigenize strategic raw material sourcing and infrastructure development.

Why is RITES entering the critical mineral supply chain?

RITES Limited, a Navratna public sector enterprise under the Ministry of Railways, has steadily evolved beyond its traditional role in railway engineering into a diversified infrastructure consultancy with projects spanning ports, highways, and urban development. The new partnership with Hindustan Copper Limited marks a strategic pivot toward mineral logistics and resource-linked infrastructure development.

Under the agreement, RITES Limited will offer end-to-end support to Hindustan Copper Limited in areas such as transport logistics, project planning, rolling stock supply, and multimodal infrastructure integration. These services are crucial for optimizing mineral flow from pit to processing and ultimately to end-users across India’s industrial corridors.

While Hindustan Copper Limited focuses on metal production, especially copper—vital to electric mobility and renewable energy—RITES Limited’s involvement ensures these materials can move efficiently through an integrated transport backbone. This marks the first formal move by RITES Limited into the mineral infrastructure vertical, positioning it to serve both public and private sector mineral developers.

What makes this MoU strategically important?

Critical minerals are increasingly viewed through the lens of national security, green industrialization, and foreign policy. India remains heavily dependent on imports for high-purity lithium, cobalt, nickel, and even advanced forms of copper and aluminum. Global disruptions in recent years, including the COVID-19 pandemic and geopolitical friction with China, have exposed vulnerabilities in these supply chains.

The partnership between RITES Limited and Hindustan Copper Limited is designed to reduce these vulnerabilities by building infrastructure that can support secure mineral flows within and beyond India. The agreement covers not just domestic logistics but also international collaboration for mineral block auctions, exploration partnerships, and global asset acquisition—aligning well with India’s participation in initiatives like the Mineral Security Partnership (MSP), which seeks to diversify supply chains for essential minerals.

Analysts believe this move may be the beginning of a broader industry alignment where engineering firms, mining companies, and state institutions work jointly to build vertically integrated mineral ecosystems.

How does this alliance fit into India’s mineral policy roadmap?

India’s Ministry of Mines has identified 30 critical minerals and launched key reforms over the last three years, including transparent auctioning of mineral blocks, opening up exploration to private players, and allowing for composite licenses that include prospecting, mining, and production. Simultaneously, the government has been encouraging PSUs and private companies to invest in overseas mining assets through joint ventures.

Hindustan Copper Limited, which operates under the Ministry of Mines, is the only vertically integrated copper producer in India. It has been mandated to expand its mining and smelting footprint under the government’s Aatmanirbhar Bharat (Self-Reliant India) mission. The addition of RITES Limited’s logistics and transport capabilities will enable the firm to scale faster and more efficiently across multiple sites.

The new alliance could serve as a model for future collaborations between public sector engineering firms and mineral producers—especially as India attempts to build a battery-grade supply chain for EVs and grid storage, both domestically and via external partnerships.

What other projects is RITES currently involved in?

The MoU with Hindustan Copper Limited is part of a broader expansion drive by RITES Limited into newer high-growth domains. On May 28, 2025, RITES Limited entered into an agreement with Shree Cement Limited to develop rail infrastructure and provide allied services, reflecting its growing involvement in industrial logistics partnerships.

Just a few days later, on June 3, 2025, RITES Limited was declared the lowest bidder (L1) in a ₹28.5 crore tender issued by Gujarat Urban Development Company Limited for third-party inspection of water supply and sanitation infrastructure under AMRUT 2.0 and SJMMSVY across Gujarat’s municipalities. That contract, with a duration of 60 months, further cements its leadership in urban engineering services.

These developments indicate that RITES Limited is proactively diversifying its revenue base beyond traditional railway consultancy into sectors aligned with India’s infrastructure investment thrust and decarbonization agenda.

What is the institutional and market response?

While immediate market reaction to the RITES–HCL MoU has been neutral in terms of stock price movement, the institutional tone remains positive. Analysts tracking public sector infrastructure stocks view such partnerships as long-gestation but high-impact moves that enhance visibility and future order pipelines.

RITES Limited continues to maintain a robust order book, consistent margins, and a stable dividend policy. It remains debt-free, with a healthy cash position that supports its consulting and engineering operations across Asia, Africa, and Latin America. The company’s broadening scope in mining infrastructure and energy transition logistics is expected to add recurring consulting revenues while opening doors to EPC opportunities.

Institutional investors also appreciate that these MoUs, while non-binding initially, often serve as precursors to concrete mandates, which could reflect in order inflows over the next 6–12 months. Given the government’s budgetary commitment to infrastructure and mineral security, further collaborations in this space appear likely.

What lies ahead for India’s critical minerals push?

India’s aspirations to become a manufacturing hub for solar modules, electric vehicles, and battery storage depend largely on securing supplies of copper, lithium, nickel, cobalt, and rare earths. The nation is ramping up exploration and auction of mineral blocks, and forming partnerships with countries such as Australia, Argentina, and Namibia for mineral cooperation.

With initiatives like KABIL (Khanij Bidesh India Limited) aimed at overseas mineral acquisitions, there is potential for RITES Limited to integrate its capabilities into such global supply chains by providing infrastructure support, logistics planning, and feasibility studies for Indian-backed projects abroad.

The collaboration with Hindustan Copper Limited may evolve into a platform approach, with RITES Limited offering similar services to other CPSEs and private players operating in the mining and metals space. Experts anticipate that India will see greater consolidation of efforts between exploration, production, logistics, and export in the coming years, and RITES Limited is now well-positioned to benefit from this structural transformation.