OIL Signs Agreement for Graphite and Vanadium Exploration in Arunachal Pradesh

Why was the OIL agreement for graphite and vanadium exploration in the News?

Oil India Limited (OIL) has signed an agreement for a composite licence for the graphite and vanadium exploration in Yazali, Arunachal Pradesh.
This move marks a significant step in India’s push towards exploration and development of critical minerals, particularly in the strategically important Northeast region. The project supports India’s long-term goals of mineral security, energy transition, and self-reliance.

What are the Key Facts related to this OIL Agreement?

• Executing Agency: Oil India Limited (OIL), a Maharatna PSU with experience in energy exploration.
• The minerals involved to be explored are Graphite and Vanadium. Both are identified as critical and strategic minerals due to their role in clean energy and defence sectors.
• Type of Licence:
  • Composite Licence, which integrates exploration and mining under a single approval.
• The location of exploration will be Yazali Circle, Keyi Panyor District, Arunachal Pradesh.
• State Department Involved:
  • Arunachal Pradesh Geology & Mines Secretariat, responsible for mineral administration and regulation.
  • The Centre for Earth Sciences and Himalayan Studies (CESHS) will act as a local partner and stakeholder with a 10% partnership interest alongside OIL.
    • It will play a key role in supporting the project through preliminary and exploratory survey activities. It will involve local communities and relevant authorities to facilitate smooth execution of exploration operations.

What is a Composite Licence?

A Composite Licence is a regulatory mechanism under India’s mining framework that allows:

• Prospecting and mining under a single licence, unlike earlier systems requiring multiple approvals.
• Faster transition from mineral discovery to commercial extraction, reducing project delays.
• Lower bureaucratic hurdles, encouraging investment by PSUs and private players.
• Efficient utilisation of mineral resources, especially for critical minerals where time and scale matter.

This system is crucial for accelerating exploration in geologically under-explored regions like Northeast India.

What is Graphite?

• Graphite is an opaque, non-metallic polymorph of carbon, distinguished by its blackish-silver colour and metallic to dull sheen.
• Owing to its appearance, which resembles the metal lead, graphite is commonly referred to as “black lead” or “plumbago”, though it does not contain lead.
• Historically, the term graphite was coined in 1789 by the German chemist and mineralogist A.G. Werner.
• Etymologically, the name is derived from the Greek word “graphein”, meaning “to write”, reflecting its long-standing use in writing instruments such as pencils.

Formation of Graphite:

• Graphite is most commonly formed as flakes or crystalline layers within metamorphic rocks such as marble, schist, and gneiss.
• In addition, graphite is found in organic-rich sedimentary rocks, including shales and coal beds.
• In such cases, the graphite is believed to have originated from the metamorphism of dead plant and animal matter, indicating a biogenic origin.
• Apart from sedimentary and metamorphic environments, graphite also occurs in veins, often formed through hydrothermal processes.
• Occasionally, graphite is found in igneous rocks, particularly in basalt, though such occurrences are relatively rare.
• Remarkably, graphite has also been identified in meteorites, suggesting its formation under extraterrestrial conditions as well.

Molecular Structure of Graphite:

• Graphite is composed of carbon atoms arranged in hexagonal rings, with each ring consisting of six closely bonded carbon atoms.
• Structurally, these hexagonal units form flat, planar layers that are widely spaced from one another.
• Within each layer, the carbon atoms are held together by strong covalent bonds, providing high structural stability.
• Between the layers, however, the bonding forces are few and weak, allowing the layers to slide over one another easily.
• As a result, graphite exhibits properties such as softness and lubricating ability.
• Thermodynamically, graphite is the most stable form of carbon under normal surface conditions of the Earth.
• Consequently, diamonds tend to slowly transform into graphite near the Earth’s surface. This process occurs at an extremely slow rate and is not practically observable.

Uses of Graphite:

• Primarily, graphite is used in the manufacture of pencil leads, owing to its layered structure that allows smooth writing.
• In addition, graphite serves as an additive in ceramics, where it improves thermal stability and mechanical strength.
• In the aerospace sector, graphite is used in:
  • Rocket nozzles, due to its high heat resistance
  • Stealth aircraft such as the F-117A and B-2 bomber, owing to its lightweight and high-strength properties
• In the nuclear industry, high-purity graphite is employed as:
  • Structural components
  • Neutron reflectors
  • Neutron moderators, because of its low neutron absorption capacity
• Moreover, graphite is used as a hardening agent in steelmaking, enhancing the strength and durability of steel products.

What is Vanadium?

• Vanadium is a rare metallic element that is extensively used as an alloying element in steel, iron, and titanium alloys due to its strength-enhancing properties.
• In addition, it is widely used as a catalyst in various industrial and chemical processes.
• Chemically, vanadium is represented by the symbol “V” and has an atomic number of 23.
• Physically, it is a silver-grey metal that is ductile and malleable, making it suitable for alloy formation.
• Moreover, vanadium is harder than most metals, contributing to improved durability and tensile strength in alloys.
• Notably, it exhibits excellent resistance to corrosion, particularly against alkalis and acids.

Occurrence of Vanadium:

• Vanadium is the 22nd most abundant element in the Earth’s crust.
• Naturally, it occurs in a combined form, rather than in a free state.
• It is commonly found associated with various minerals, coal, and petroleum deposits.
• Mineralogically, vanadium occurs in more than 60 different minerals. Important among them are Vanadinite, Carnotite, Roscoelite and Patronite.
• Geographically, the largest reserves of vanadium-bearing minerals are concentrated in South Africa and Russia.
• In terms of production, the leading global producers of vanadium are China, Russia and South Africa.

Applications of Vanadium:

• Primarily, vanadium is used as an alloying element in steel and other metals to enhance strength, durability, and resistance to wear and corrosion.
• In the energy sector, vanadium plays a critical role in Vanadium Flow Batteries (VFBs), which provide a safe, stable, and reliable solution for large-scale renewable energy storage.
• In the chemical industry, vanadium compounds are widely used as catalysts in various industrial processes, notably in the manufacture of sulfuric acid.
• In the nuclear sector, vanadium is used in certain nuclear reactors as a structural material and neutron moderator, owing to its high thermal stability and low neutron absorption.
• In the medical field, vanadium-based compounds have been explored for the treatment and management of diseases such as diabetes, cardiovascular disorders, and high cholesterol.

What are the Significances of this Oil India Limited’s Agreement for Arunachal Pradesh?

• Places Arunachal Pradesh firmly on India’s critical minerals map.
• Encourages resource-based industrial development in a largely infrastructure-deficient region.
• Generates local employment opportunities, especially for youth.
• Improves connectivity and infrastructure in border and remote areas.
• Enhances strategic depth in a sensitive border state, linking development with security.

National-Level Significance:

• Aligns with major national initiatives such as:
  • Critical Minerals Mission of India
  • Atmanirbhar Bharat in strategic resources
  • India’s Energy Transition and Net-Zero goals
• Helps reduce import dependence, particularly on countries like China.
• Strengthens national security, strategic autonomy, and supply-chain resilience.
• Supports India’s ambition to become a global hub for clean energy technologies.

Conclusion:

In conclusion, the agreement signed by Oil India Limited for graphite and vanadium exploration in Yazali, Arunachal Pradesh marks a decisive step towards strengthening India’s critical mineral security. It not only accelerates mineral exploration in a strategically sensitive and under-explored region but also aligns closely with India’s clean energy transition, Atmanirbhar Bharat, and long-term national security objectives. Moreover, the project promises regional development through employment generation, infrastructure growth, and enhanced strategic presence in the Northeast, thereby linking economic development with national interest in a sustainable manner.

Source: Arunachal Times

You can also visit our APPSC page for the latest updates, syllabus, and exam-related current affairs.