Government is planning to inject additional money into Khanij Bidesh India Ltd (KABIL) to boost its acquisition of overseas mineral resources, particularly critical minerals such as lithium and copper. The proposal aims to increase the company’s paid-up capital to ₹500 crore, which is five times its current amount.
KABIL, a joint venture of three Central Public Sector Enterprises (CPSEs) under the ministry of mines, includes National Aluminium Company (NALCO) with forty percent equity, Hindustan Copper (HCL) with thirty percent, and the Mineral Exploration Corporation Ltd (MECL) with thirty percent.
KABIL is set to lead the charge in acquiring overseas mineral resources, especially those that are critical. The acquisitions are expected to be costly, necessitating additional funding for the company. Government has intensified its efforts in the critical minerals sector, having identified twenty-four such minerals, including lithium, copper, cobalt, and graphite.
The ministry of mines has already signed Memoranda of Understanding (MoUs) for potential exploration partnerships and mine acquisitions, including government-to-government collaborations in at least eight African countries.
As reported by businessline, the government is engaging with key lithium-producing countries in South America, such as Argentina and Chile, and is in advanced talks with Australia. In Asia, government plans to source graphite from Sri Lanka, a crucial mineral for EV battery production. Currently, India relies heavily on imports for its supply of critical minerals.
