KABIL Confident of Lithium Finds in Argentine Mines in 2 Years, Detailed Exploration Underway: NALCO CMD

India’s joint venture for securing critical minerals, Khanji Bidesh India Ltd. (KABIL’s) lithium exploration projects in Argentina is confident of finding lithium in the next two years, as ‘invasive’  exploration is already underway,  National Aluminium Company (NALCO) Chairman and Managing Director Birjendra Pratap Singh said on Thursday.

In January 2024, KABIL, a joint venture among three government enterprises: NALCO, Hindustan Copper and Mineral Exploration Consultancy Ltd., acquired five mines. “We are now going for invasive exploration in these mines and it will take around two years,” NALCO CMD said, while addressing a press conference in the national capital.

He further mentioned, “After two years, this detailed exploration will get complete and we will get to know about the grade and quantity of lithium present there.” “We are very much sure about the finds because near those areas, one Chinese mine is already operating. But to confirm, we need a detailed exploration,” he added.

Singh also said that after two years, the company will know whether to go ahead with commercial mining, and if so, at what scale and with what level of viability.

Expansion Plans and ‘Maharatna’ Goal

The company is planning a major expansion and will invest ₹30,000 crore in setting up aluminium smelting capacity and a coal-based power plant by 2030. This plan will involve 5 lakh tonnes of smelting capacity and an additional 1000 MW power plant.

For large upcoming projects like the smelter and power plant, the company plans to rely on debt financing at favorable rates. The CAPEX plan is pegged at ₹1,700 crore for FY2026 and by expanding operations and adding new refineries and smelters, NALCO aims to raise its turnover from the current ₹17,000 crore to over ₹25,000 crore in the next five years, thereby positioning itself to achieve ‘Maharatna’ status, the company’s CMD noted.

Focus on UK, Russia as Key Aluminium Export Markets

The 50% US tariff on Indian aluminium, besides other important sectors, is not much of a concern for NALCO, as US is not its major market. The company’s alumna exports are primarily to the Middle East, while aluminum exports are focused on other regions.

NALCO views UK as a favourable market, as tariffs are favorable there, especially in light of the recently signed trade agreement. According to Singh,  Russia stands as another key market for them, at a time when bilateral ties between India and Russia are improving and as local aluminum production there has witnessed a decline due to the war.

He also stated that the company is exploring ways to grow its presence in the European EV and solar markets, but acknowledges that success there will require increasing its share of green power.

Switching to Green Power

The guidelines from the ministry states that we should have at least 35-40% of green energy in our company’s operations, the CMD said. He further noted, “For that, we will be going in for investment, looking at solar power or hybrid power and where it is to be located, so that at least 30% of our power is coming from the green energy.”

Additionally, since a lot of windmills and solar projects are coming in India, having long-term PPA arrangements is crucial. “We are also in negotiations with many green power builders who will be supplying us green power on a long-term basis,” he stated.

The CMD also mentioned that at present, the company’s power cost is around ₹3.15 or 3.2 per unit and with green power, the costs will go more than ₹4 or 4.5, which will be slightly costly. “So having some PPAs and arrangements with the ones who are already manufacturing their solar power and building in our own also will be beneficial,” he added.