The Australian mining industry could be set for a major boost as Australia and India prepare to strengthen trade ties during Indian Prime Minister Narendra Modi’s visit to Melbourne this week.
Uranium producers are expected to be among the biggest beneficiaries, with critical minerals, copper and other commodity exporters also likely to gain from closer economic cooperation between the two countries.
Modi will meet Prime Minister Anthony Albanese today, with critical minerals, trade, defence and security cooperation high on the agenda.
According to The Australian Financial Review, the two leaders are expected to discuss an agreement to expand uranium exports to India. While Australia and India signed a civil nuclear cooperation agreement in 2014, uranium exports have remained limited due to safeguards ensuring Australian uranium is used only for peaceful purposes, including electricity generation.
Asked about the prospect of a uranium agreement, Albanese indicated announcements were expected following the meeting.
“But we’ve engaged constructively, and so I look forward to — there’ll be a range of announcements that we make together,” he told reporters.
A uranium agreement would represent a significant opportunity for Australian producers as India accelerates investment in nuclear energy to support growing electricity demand driven by artificial intelligence, data centres and broader industrial growth.
India plans to add 18 nuclear reactors by 2032, substantially expanding its nuclear generation capacity. Increased uranium imports from Australia would mark a major shift in a trade relationship that has seen only limited shipments since the first exports began in 2017.
The visit also follows growing cooperation between Australia and India on critical minerals through the Quad Critical Minerals Initiative, agreed with fellow Quad partners the United States and Japan.
The framework aims to strengthen diversified supply chains across mining, processing, refining and recycling, with the four countries seeking to mobilise up to $20 billion in government and private sector support for projects that address critical minerals supply chain gaps.
Resources Minister Madeleine King said the initiative formed part of a broader strategy to build alternative supply chains for critical minerals and rare earths, highlighting government support for projects such as Arafura Rare Earths as evidence that international partnerships are helping advance new developments.
The agreement also promotes closer cooperation on project investment, permitting, geological mapping, resource assessment and the recovery of critical minerals from recycled materials.
Australia is already seeing commercial benefits from India’s growing demand for critical minerals.
Arafura’s Nolans rare earths project recently secured a binding offtake agreement to supply up to 500 tonnes per annum of neodymium-praseodymium (NdPr) oxide to an emerging Indian rare earth magnet manufacturer. The initial five-year agreement, with an option to extend for a further two years, supports India’s ambition to establish 6000 tonnes per annum of permanent magnet manufacturing capacity under a $1.2 billion government incentive program.
India has also emerged as an increasingly important market for Australian copper.
South Australia exported a record $5.2 billion worth of copper during the 12 months to April 2026, with India becoming the state’s largest export destination after purchasing $1.32 billion worth of copper, a 195 per cent increase year-on-year.
India is also emerging as one of the most important growth markets for Australian coal, with demand expected to increase as the country expands its steelmaking capacity and energy consumption. Coal Australia chief executive officer Stuart Bocking said Australia remained India’s largest supplier of metallurgical coal throughout 2025, with shipments in December rising nearly 40 per cent year-on-year.
“India is already one of Australia’s most important export markets for metallurgical coal and its role is only set to grow,” Bocking said.
Bocking said India’s plans to increase steel production capacity to 300 million tonnes by 2030 and 500 million tonnes by 2047 underpin strong long-term demand for Australian metallurgical coal, while thermal coal exports to India have also been steadily increasing since 2020.
