KABIL (Khanij Bidesh India Ltd) is in advanced talks for the acquisition of multiple lithium blocks in Argentina. An MoU in this regard is expected “shortly”, Mines Ministry officials aware of these discussions, told businessline.
Apart from Argentina, KABIL is exploring tie-ups and acquisition opportunities for lithium across other LATAM nations like Chile and Brazil. It is also open to alternative structures like partnerships, long-term leasing of mines or lithium blocks or investment in these mines.
Lithium, an alkali metal, is one of the key components in rechargeable batteries that find usage in mobiles, laptops, electric vehicles and in medical devices like pacemakers. It is also used in energy storage solutions.
“KABIL is close to acquisitions in Argentina and will shortly sign an agreement to secure a few lithium blocks. It is scouting opportunities in Chile and Brazil too,” the official said.
KABIL is a joint venture between National Aluminium Company (NALCO), Mineral Exploration Corporation Ltd (MECL) and Hindustan Copper Ltd (HCL). It was formed for identifying, acquisition, development and processing of strategic minerals overseas for use in India.
Current focus
“Current focus is on the Latin American region when it comes to lithium,” the official said.
Argentina, together with Chile and Bolivia, forms the so-called “Lithium Triangle” and is currently the fourth largest producer and has the third largest world reserve of lithium.
India, currently, imports all major components that go into lithium-ion cell manufacturing. The country’s lithium-ion import bill for FY23 was ₹23,171 crore. It covers electric accumulators, including separators. In FY22, imports for lithium-ion were ₹13,673.15 crore.
“Right now, we are concentrating on securing copper, cobalt and lithium and in some cases nickel supplies among the critical minerals identified,” the official said.
Ministry officials said, KABIL will continue to be the front for such overseas pacts that include getting into agreements with governments overseas.
In Australia, KABIL is said to have entered into MoUs for exploration of two lithium blocks and three cobalt blocks in Australia.
Other overseas exploration
In September, Indian officials are expected to visit Mongolia to look into the possibility of exploring tie-ups for securing copper resources. While it will also tap for copper resources in African nations. Congo is one such nation that India’s Mines Ministry is keen to tap.
Copper mining in Congo mainly takes place in the copper belt of the southern Katanga province of the country. Nearly all cobalt in the country is sourced from copper deposits. The country produces about 63 per cent of the world’s cobalt, with about 80 per cent from industrial copper mines, and the remaining 20 per cent gathered by artisanal mining. Indian imports from Congo of copper was $4.58 million in 2022, according to the United Nations COMTRADE database on international trade.
