India signs pact with Argentina for lithium mining

Hyderabad:Union minister for coal and mines G. Kishan Reddy announced that India has signed a memorandum of understanding (MoU) with Argentina to explore and conduct lithium mining through Khanij Bidesh India Limited (KABIL). An action plan was prepared to secure the strategic mineral for domestic use in batteries, ceramics, glass and pharmaceuticals. KABIL is also in talks with Australia to lease strategic minerals and has signed an MoU with the International Energy Agency to acquire critical minerals.

Speaking to reporters, Kishan Reddy said India has also partnered with the United States and Israel for technology transfer and the use of AI in extracting potassium from seawater, a key component in fertiliser production. The National Critical Mineral Mission (NCMM), with an approved expenditure of `16,300 crore and an expected investment of `18,000 crore, will focus on domestic production, recycling, overseas acquisitions and research and development.

To strengthen India's mineral sourcing efforts, the minister announced the deployment of 20 nodal officers in key international locations. Stationed in Indian embassies, these officers will identify critical minerals and oversee related initiatives, including formulating action plans with Indian companies operating abroad.

Kishan Reddy also revealed that the ministry of mines will launch the first tranche auction of exploration licence blocks next month. Additionally, a new tailings policy will be introduced to recover critical minerals such as gallium, tellurium and selenium from overburden dumps and tailings, ensuring optimal resource utilisation. Overburden dumps refer to piles of soil and rock removed during surface mining operations.

He noted that states such as Telangana, Bihar and Arunachal Pradesh, which were initially reluctant to participate in the mining auction process, have now joined. Currently, 14 states are engaged in India’s minerals action plan. The auction process has significantly boosted state revenues, generating `4.15 lakh crore, including `2.37 lakh crore in royalties.

So far, 335 mineral blocks have been put up for auction, with 106 successfully awarded. The Central government, in collaboration with the Jammu & Kashmir administration, plans to explore the region’s limestone reserves following an unsuccessful search for lithium.