This ambitious plan is crucial for India, which is predominantly dependent on imports for its critical mineral supply
Khanij Bidesh India Ltd. (KABIL), a joint venture company, is making significant strides in the global mining sector by exploring opportunities for acquiring critical mineral assets in Argentina, Australia, and Chile. This initiative aims to secure a resilient supply of strategic minerals for India's domestic industry, addressing the growing demand for resources like lithium (Li) and cobalt (Co).
 
KABIL, established with the equity contributions of three Central Public Sector Enterprises (CPSEs) - National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd (HCL), and Mineral Exploration and Consultancy Ltd (MECL), has been tasked with identifying, exploring, acquiring, developing, mining, processing, procuring, and selling strategic minerals abroad. This ambitious plan is crucial for India, which is predominantly dependent on imports for its critical mineral supply.
 
Union Minister of Coal and Mines G Kishan Reddy, in a written reply to a question in the Lok Sabha on Monday (July 31, 2024), provided detailed information about various aspects of this endeavour.
 
Expansion in Argentina

 In Argentina, KABIL has signed an Exploration and Development contract with the State-owned company of Argentina, obtaining exclusivity rights for the exploration and development of lithium blocks in the Catamarca Province. The company has initiated activities to secure statutory clearances and other necessary steps to commence exploration. This move positions KABIL to tap into Argentina's rich lithium reserves, which are vital to produce batteries used in electric vehicles (EVs) and other technologies.
 
Partnership in Australia

 KABIL's expansion efforts in Australia are equally promising. The company has signed a Memorandum of Understanding (MoU) with the Critical Mineral Office (CMO) of the Department of Industry, Science and Resources (DISER), Government of Australia. This partnership aims to carry out joint due diligence and further investment in lithium and cobalt mining assets in Australia.
 
The MoU will also help KABIL in making long-term investment decisions and establishing off-take arrangements to ensure a sustainable supply of these critical minerals to India. Given the high cost of lithium mines in Australia, this collaboration is a strategic move to secure essential resources.
 
Initiatives in Chile

 In Chile, KABIL has signed a Non-Disclosure Agreement (NDA) with the State-owned company ENAMI to explore brine-type lithium blocks. This agreement is part of KABIL's continuous efforts to explore possibilities in countries with rich potential for critical and strategic minerals. The company has also submitted an expression of interest against a Request for Information (RFI) floated by the Government of Chile for developing projects involving the exploration, extraction, and processing of lithium salts or other deposits.
 
KABIL's initiatives are part of a broader strategy supported by the Minerals Security Partnership (MSP). This international alliance aims to accelerate the development of diverse and sustainable critical energy mineral supply chains. MSP partners include Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, the Republic of Korea, Sweden, the United Kingdom, the United States, and the European Union. 
 
These partners strive to elevate environmental, social, and governance (ESG) standards across the global minerals sector, ensuring that supported projects meet high, internationally recognized standards and promote local value addition and community upliftment.
 
India is planning to inject additional equity into KABIL to ramp up the acquisition of overseas mineral resources, particularly critical minerals like lithium and copper. The plan is to increase the company's paid-up capital to ₹500 crore, a fivefold increase from the existing ₹100 crore. At its inception, KABIL had an authorized capital of ₹500 crore and a paid-up capital of ₹100 crore, contributed by the three CPSEs - NALCO (40% equity), HCL (30%), and MECL (30%).
 
Last year, the Union Ministry of Mines released a list of 30 Critical Minerals for India. This included lithium, copper, cobalt, and graphite, essential for various high-tech and clean energy applications. The Ministry of Mines has already signed Memoranda of Understanding (MoUs) for possible exploration tie-ups and mine acquisitions, including government-to-government (G2G) collaborations in at least eight African nations. 
 
In addition to exploring key lithium sourcing nations in South America and Australia, India is also considering tapping into Sri Lanka for graphite, a key mineral for EV batteries.
 
India's current lithium imports, including lithium-ion, oxides, and other categories, have been estimated at ₹25,074 crore, a 4% increase from ₹24,144 crore in FY23. Potash imports (caustic potash and caustic soda) reached around ₹1,284 crore, a 2% rise, while titanium ore imports surged by 29%. Nickel imports, including ores, concentrates, oxides, sulphates, and compounds, increased by 24% to ₹991 crore.
 
KABIL's strategic initiatives in Argentina, Australia, and Chile are pivotal for securing a sustainable and resilient supply of critical minerals for India's burgeoning industries. With the support of international partnerships and increased financial backing, KABIL is well-positioned to play a crucial role in the global minerals sector, ensuring that India can meet its growing demand for essential resources in the coming years.