Nalco, Hindustan Copper shares get a lithium boost

KABIL, a joint venture of NALCO, Hindustan Copper and Mineral Exploration, will explore and develop five lithium brine blocks as part of the Rs 200-crore project, according to a statement by NALCO.

National Aluminium Company Ltd (NALCO) and Hindustan Copper Ltd (HCL) shares rose on Tuesday after the government said that Khanij Bidesh India Ltd (KABIL) had signed a deal with Argentina's CAMYEN SE, the first lithium exploration and mining project by an Indian public sector company. NALCO and Hindustan Copper shares rose 2.7 per cent and 3.8 per cent to end at Rs 138.9 apiece and Rs 266.6 apiece on BSE, respectively.

KABIL is a joint venture of state-run companies NALCO, Hindustan Copper and Mineral Exploration.

According to a statement, released post-market hours on Monday, KABIL will explore and develop five lithium brine blocks as part of the Rs 200-crore project:

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The blocks, covering about 15,703 hectares of area, are located in Argentina's Catamarca province, NALCO said, adding that KABIL is preparing to set up a branch office at Catamarca.

With this agreement, KABIL obtained the exploration and exclusive rights for the five blocks to evaluate, prospect and explore and subsequent to existence/discovery of lithium mineral, exploitation right for commercial production, which "will not only boost its quest for sourcing lithium for India but will also help in bringing in technical and operational experience for brine type lithium exploration, exploitation and extraction", it said.

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, the state-run company added.

"This is a historic day for both India and Argentina as we are scripting a new chapter in bilateral ties with the Agreement signing between KABIL and CAMYEN—a step which will not only play a crucial role in driving the energy transition for a sustainable future, but also ensure a resilient and diversified supply chain for critical and strategic minerals essential for various industries in India," said Union Minister Pralhad Joshi, who attended the signing ceremony virtually and Mines Secretary VL Kantha Rao.

KABIL is jointly promoted by NALCO, Hindustan Copper and Mineral Exploration, three central public sector enterprises under the administrative control of the Ministry of Mines.

What is KABIL and what does it do?

Established in August 2019, KABIL is responsible for the exploration of critical minerals across the globe, with NALCO as the leading partner.

KABIL will carry out the identification, acquisition, exploration, development, mining and processing of strategic minerals overseas for commercial use, and help the country meet its requirement of these minerals.

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