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State-run Coal India (CIL) is considering exploration and extraction of lithium from the salt flats of Chile and has evinced its interest with the Chilean government, Parliament was informed on Monday.
“CIL has also submitted its expression of interest in the request for information (RFI) floated by Government of Chile for the development of projects for the exploration, extraction and processing of lithium contained salts or other types of deposits in Chile,” Coal Minister G Kishan Reddy said in response to a written query in Rajya Sabha.
CIL has signed non-disclosure agreements with companies from different countries for checking feasibility of potential investment in the critical mineral projects, he added.
Chile’s lithium reserves
Chile is home to half of the viable lithium reserves globally and is the world’s second-largest lithium producer. It accounts for around 36 per cent of the global trade.
The Government of Chile in March 2024 announced new opportunities for private sector investors in lithium exploration. Opportunities exist to partner with existing State-owned entities or to make a completely private investment, depending on the salt flat or type of business.
Under its National Lithium Strategy, Chile floated the RFI to invite interested domestic and foreign companies. Through Special Lithium Operation Contracts, the country will offer mining blocks for exploration and extraction of the critical mineral. The proposal was launched in April 2024 and the bids were opened on July 9, 2024.
In April, Chile’s Economy, Development and Tourism Minister, Nicolás Grau said the government is in touch with 97 companies from 12 countries that have expressed interest in being part of the national lithium industry. The countries include India, China, the US, Singapore and Germany.
The country offered around 26 salt flats for the extraction of lithium. It has received more than 80 proposals. It was not immediately clear whether CIL has secured any winning bids.
Argentina push
In June this year, CIL also floated a request for expression of interest (EoI) in Argentina for empanelment of technical consultants for due diligence of overseas mineral assets.
The empaneled consultants will be invited, as and when projects arise, to submit their financial proposals based on request for proposal (RFP) issued selectively at sole discretion of CIL to empaneled consultants on a project-to-project basis.
The scope of work includes reviewing all available information regarding the mineral assets, undertaking a site visit to the project areas and preparing a due diligence report commenting on the various project aspects.
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