India's state-owned Khanij Bidesh India Limited (KABIL) is expected to commence lithium extraction in Argentina within five years after completing project feasibility, according to the latest reports. The company signed a ₹2 billion ($20.92 million) lithium exploration agreement in 2024 for five blocks in Argentina, marking a significant step in India's strategic lithium acquisition efforts. As per the latest reports, the company is now positioned to move forward with actual production planning following the completion of feasibility studies.
The government of Catamarca in Argentina has offered seven additional greenfield lithium brine blocks under the existing agreement, which KABIL is currently evaluating. The company is also in the process of signing a preliminary agreement with the Ministry of Production and Mining of the Province of Salta, Argentina and Energy and Mining Resources Salta SA to collaborate on lithium projects in Salta. Additionally, discussions are underway for obtaining two greenfield lithium brine projects in Jujuy province, as reported by the parliamentary panel. Two additional projects are being evaluated by KABIL and Oil India, and KABIL and Indian Oil Corp., further expanding the company's Argentine portfolio.
KABIL is evaluating investment opportunities across multiple countries including Brazil, Canada, Russia, Indonesia, and exploring rare earths opportunities. The company is also in talks with Malawi Mining Investment Company for critical mineral projects in Malawi. In Australia, KABIL, along with Oil India, Coal India and NLC India, was evaluating two lithium projects, according to the parliamentary report. The company's international diversification strategy spans multiple continents as it seeks to secure critical mineral resources for India's growing energy needs.
KABIL has flagged delays in Argentina operations due to lack of expertise in handling lithium brine deposits. The company's lithium project in Mali with Uranium One Group, a subsidiary of Rosatom, has been kept on hold due to recent socio-political instability. The parliamentary panel observed limited progress in securing overseas mineral assets and prolonged timelines in moving from negotiations to actual acquisition and production. These operational challenges highlight the complexities of international mineral extraction projects, particularly in politically sensitive regions.
