1st pact inked for mining critical minerals abroad

Tribune News Service

Sandeep Dikshit

New Delhi, January 16

India achieved a significant milestone when its public sector company signed the first agreement for the exploration and mining of the critically required lithium in another country. A joint venture of three PSUs, Khanij India Bidesh Limited (KABIL), inked an agreement to this effect with Argentinean state-owned enterprise CAMYEN SE on Monday.

Dependent on China from where it imported bulk of its lithium worth Rs 25,000 crore in 2022-23, KABIL is on a worldwide hunt for graphite, lithium, nickel and cobalt that find extensive applications in the burgeoning sectors of EV batteries, semiconductors and high-end electronics manufacturing which also finds application in space and defence industries.

Under the agreement, KABIL and the Argentinian company will start exploration and development of five lithium brine blocks covering an area of about 15,703 hectares, located in Catamarca province of Argentina. KABIL is also preparing to set up a branch office at Catamarca, stated an official news release. The project cost is about Rs 200 crore over a period of five years. In Australia, KABIL is in line to explore and mine critical minerals in five blocks — two for lithium and three for cobalt.

In Argentina, the agreement was signed in the presence of Governor of Catamarca Lic Raul Jalil and Ambassador of India to Argentina Dinesh Bhatia. The signing ceremony was virtually attended by Mines Minister Pralhad Joshi and Mining Secretary VL Kantha Rao. Joshi described the agreement as a step that “will not only play a crucial role in driving the energy transition for sustainable future, but also ensure a resilient and diversified supply chain for critical and strategic minerals essential for various industries in India”.

Argentina is part of the “lithium triangle” along with Chile and Bolivia with more than half of the world’s total lithium resources. “This strategic move not only strengthens the bilateral ties between India and Argentina but also contributes to the sustainable development of the mining sector, ensuring a resilient and diversified supply chain for critical and strategic minerals essential for various industries,” said the official statement.

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