India eyes local allies to explore lithium blocks in Argentina
The Mines Ministry has initiated the process to onboard local partners to start exploration activities for lithium in Argentina, officials said.
The Stateowned KABIL (Khanij Bidesh India Ltd.) — a joint venture between Nalco, Hindustan Copper and Mineral Exploration Corporation Ltd. (MECL) — driving the process, acquired five lithium brine blocks, namely CortaderaI, CortaderaVII, CortaderaVIII, Cateo202201810132 and CortaderaVI in January.
The brine blocks cover an area of about 15,703 hectare in the Catamarca district of Argentina
Branch office
KABIL will also set up a branch office in the LatinAmerican nation, a government official told businessline. “The estimated cost (for development and exploration) is about ₹200 crore which will be spread over five years.”
The brine blocks cover an area of about 15,703 hectare in the Catamarca district of Argentina. Blocks were acquired for exploration and development and offtake of lithium from their stateowned entity, CAMYEN (Catamarca Minera Y Energetica Sociedad Del Estado).
Local partners
The laws in Argentina mandate there be “involvement of local partners” across stages like exploration and development, and in other processes too, the official said. The local exploration agency will be responsible for obtaining the necessary clearances (and other governmentmandated approvals). It will also start drilling activities post these.
“We (India) have obtained exploration and exclusivity right for these five blocks. The agreement will allow us to evaluate, prospect and explore the reserves. And, upon subsequent discovery of lithium mineral, right for commercial production has also been allowed.
“So, we are in the process of onboarding a local partner who will get the approvals, and start the process,” the official said.
Time frame
The MoU states there is a five year time frame given to KABIL within which exploration activities across these blocks have to start failing which “hefty fines” would have to be paid.
“There are confirmed reserves across the blocks that we have acquired. Studies by the government there and by our geologist too confirm the findings,” the official said.
(The writer is with The Hindu businessline)