According to a news report published in the Business Line, India has identified two lithium mines and one copper mine in Argentina for a possible acquisition or long-term lease.
Key points
- Commercial evaluation of the mines has begun and a report regarding this is expected by end February, the Business Line reported.
- The Centre had sent a team of three geologists to the Latin American nation to assess potential lithium deposits and possible acquisition opportunities in November 2022.
- The team comprised of one geologist each from the Mineral Exploration Corporation Ltd (MECL), KABIL (Khanij Bidesh India Ltd) and the Geological Survey of India (GSI).
- KABIL is a joint venture formed through the participation of National Aluminium Company (Nalco), Hindustan Copper (HCL) and MECL.
- KABIL aims to ensure consistent supply of critical and strategic minerals in the domestic market.
- Ownership (in case of acquisition or infusion of equity) or leasing rights of all the three mines will be with KABIL.
- So far KABIL has signed non-binding MoUs for sharing information with respect to prospective acreages of lithium with three state-owned organisations of Argentina.
Lithium Triangle and Lithium reserves
- Argentina is is currently the 4th largest producer of Lithium across the globe. Together with Chile and Bolivia, the north-west of the country forms the so-called “Lithium Triangle”.
- Argentina also has the third largest world reserve of lithium – the main component of batteries and other electronics used, including in rechargeable batteries (used in EVs) and energy storage solutions.
- Australia is the top lithium producer globally.
- The US and China, too, are key producers of the mineral besides the Lithium Triangle.
Lithium mining process
- Mining process Lithium is found in cedemine rock formation and in brine form, which is called salar in Latin America.
- The other alternative is its liquid form.
- In South America, lithium is typically extracted from the salt flats by pumping brine into ponds and processing the lithium salts that crystallise once the water has evaporated.
- It requires time and investment to set up, but thereafter, the production is cheaper than the hard-rock mining practiced in Australia.
- Argentina is already witnessing substantial investment in the sector from international players, including China-backed firms.
(Source: Business Line)
