Context

• Ministry of Mines, Government of India has signed an MoU between Mineral Videsh India Limited (KABIL) and Catamarca Minera y Energética Sociedad del Estado (CAMYEN SE), Catamarca, Argentina, a State Owned Enterprise of Catamarca Province, Argentina on 15 January 2024.

Key Points

• This is the first lithium exploration and mining project of a government company in India.
• KABIL will commence exploration and development work in five lithium brine blocks namely Cortadera-I, Cortadera-VII, Cortadera-VIII, CATEO-2022-01810132 and Cortadera-VI covering an area of approximately 15 thousand 703 hectares located in the Catamarca Province of Argentina.
• KABIL is also preparing to establish a branch office in Catamarca, Argentina.
• The cost of this project is approximately Rs 200 crore.
• With this agreement, KABIL has acquired exploration and exclusivity rights in 5 blocks for appraisal, prospecting and exploration.
• Along with this, KABIL has also got the right to discover lithium minerals and subsequently carry out commercial production.

Importance

• This agreement will not only boost the exploration of sourcing of Lithium for India, but will also help in gaining technical and operational experience for exploration, exploitation and extraction of brine type Lithium.
• This strategic move will not only strengthen bilateral relations between India and Argentina, but it will also contribute to the sustainable development of the mining sector, ensuring a flexible and diverse supply chain for critical and strategic minerals required by various industries.

Argentina and Lithium Triangle

• Argentina, along with Chile and Bolivia, forms an important part of the "Lithium Triangle", containing more than half of the world's total lithium resources.
• It also has the distinction of being the second largest lithium source, third largest lithium reserve and fourth largest producing country in the world.

IMPORTANT FACTS FOR EXAM

Argentina

• Continent: South America
• Geographical location: Brazil in the north, Chile in the west and Paraguay in the northwest.
•  Capital: Buenos Aires
• Currency: Argentine peso