India has upped its search for critical minerals that include the likes of lithium and cobalt, with the State-run Khanij Bidesh India Ltd (KABIL) – a joint venture of Hindustan Copper, NALCO and MECL – exploring investment opportunities, acquisition scope and JVs overseas, said Pralhad Joshi, Union Minister of Mines. Discussions are on with countries like Argentina, Chile and Australia.

In an interview to businessline, Joshi talked about KABIL’s journey so far and how India continues to tap overseas for securing critical mineral supplies. Excerpts:

Q

Which are the countries that India is tapping into for accessing critical minerals like lithium, cobalt and copper?

Through KABIL, India is currently focusing on sourcing of lithium (Li) and cobalt (Co); and its current engagement is with Argentina, Australia and Chile.

Q

What is KABIL’s role in securing critical mineral security?

KABIL was formed to ensure supply side assurance of critical and strategic minerals and mineral security of the nation, in August 2019. The mandate is to identify, explore, acquire, develop, mine, process and procure strategic minerals outside India, to meet the domestic requirements.

The JV is currently focusing on sourcing of lithium and cobalt by investment in countries with rich potential of these minerals, by joint venture or (through) off-take arrangements through G2G (government to government) engagement, or through G2B (government to business) or B2B (business to business) after due diligence.

The potential countries for sourcing critical and strategic minerals were identified and listed through a techno-commercial study carried out by KABIL in 2019. Discussions were initiated through G2G engagements with countries like Chile, Bolivia and Argentina, Australia, which have rich potential for lithium and cobalt.

Q

How has the entity fared in terms of securing supplies?

A team of officials of KABIL, along with NITI Aayog, visited Chile, Bolivia and Argentina for possible cooperation in lithium mining assets in October 2019. Discussions with Australia and Russia were also started through Missions and Embassies subsequently.

In December 2020, an MoU was signed with CAMYEN, a State-owned enterprise of Catamarca province in Argentina, to establish institutional co-operation for the joint development of lithium mining projects, under which five lithium blocks were identified. The exploration and development agreement (between the two) is expected to be signed shortly.

Further, in March 2022, an MOU was signed with the Critical Mineral Office (CMO), Department of Industry, Science and Resources (DISR), government of Australia for carrying out joint due diligence and further joint investment in lithium and cobalt mineral assets of Australia. A commitment of $3 million each was made by KABIL and the CMO for joint due diligence of these two mineral projects (for investment). Short-listing of three lithium and two cobalt projects in Australia has been done. Due diligence study for these projects to make investment decisions, is in progress.

A non-disclosure agreement (NDA) has been signed with ENAMI, the State-owned company of Chile, for exchange of information and sharing of data in May 2023.

Q

How close are we to securing supplies from Argentina?

Under the MoU with CAMYEN, five brine type lithium blocks in Fiambala area of Catamarca were identified based on internal technical due diligence.

KABIL board approved proposals forsigning the Exploration and Development Agreement with CAMYEN, opening of branch office in Catamarca and (an) investment proposal of $25.712 million (₹211 crore) for a initial five years. This is for exploration stage activities. Approval of the Ministry of Mines for the above proposals was also received in December. As mutually agreed with CAMYEN, the agreement is planned to be signed soon in Argentina.

Q

Is there some work going on down-stream?

KABIL is closely working with the domestic downstream industry to establish the value chain; and the renowned research institutes of India for technical collaboration in processing and extraction of the battery minerals.