PSU KABIL To Sign A Deal With Argentina To Secure Lithium Blocks: Report

KABIL was formed in August 2019 as a joint venture company among NALCO (National Aluminium Company Limited), HCL (Hindustan Copper Limited), and MECL (Mineral Exploration Corporation Limited). 

The firm is tasked to identify, acquire, develop, process, and make commercial use of strategic minerals in overseas locations for supply in India. ( Image Source :Getty )

The government-owned mineral exploration firm KABIL will "shortly" ink a deal will with Argentina to secure a few lithium mining blocks, reported news agency Reuters reported on Wednesday citing a government source with direct knowledge of the matter. Khanij Bidesh India Limited (KABIL) was formed in August 2019 as a joint venture company among NALCO (National Aluminium Company Limited), HCL (Hindustan Copper Limited), and MECL (Mineral Exploration Corporation Limited). 

The firm is tasked to identify, acquire, develop, process, and make commercial use of strategic minerals in overseas locations for supply in India. "Right now, we are concentrating on copper, cobalt and lithium among critical minerals and looking for collaborations with other countries," the source told Reuters. 

India, one of the leading contributors to global greenhouse gas emissions, has been actively seeking international agreements to ensure access to crucial minerals in countries abundant in resources, including Australia, Argentina, and Chile, the report said. 

As per the Ministry of Mines, KABIL is specifically focused on the identification and procurement of battery minerals like Lithium and Cobalt. Currently, KABIL is engaged in ongoing partnerships and projects in Australia and Argentina.

The equity participation between NALCO, HCL, and MECL is in the ratio of 40:30:30. At the time of formation of this joint venture government had said that the KABIL would carry out identification, acquisition, exploration, development, mining, and processing of strategic minerals overseas for commercial use and meeting country’s requirement of these minerals. The sourcing of these minerals or metals is to be done by creating trading opportunities, G2G collaborations with the producing countries, or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries. 

Lithium is a non-ferrous metal, which is used to make mobile-laptop, electric vehicles, and other chargeable batteries. India is completely dependent on expensive foreign supplies of lithium which is the reason for the costly electric vehicles in the country. 

It should be noted that India discovered to big lithium reserve in Rajasthan's Nagaur and in Jammu and Kashmir earlier this year. Currently, 75 per cent of the world's lithium refining is under Chinese control. Lithium for India is sourced from the US, China, and Hong Kong.