Hindustan Copper and NALCO Shares Surge on Argentina Lithium Mining Pact
Hindustan Copper and NALCO witnessed an increase in their stock values following the groundbreaking deal between India's KABIL and Argentina's CAMYEN SE for the inaugural exploration and mining of lithium. Hindustan Copper shares saw a rise of 3.7%, while NALCO shares experienced a 2.5% increase. The Ministry of Mines highlighted a significant achievement as KABIL secured an agreement with the state-owned enterprise in the Catamarca province of Argentina. This agreement grants KABIL exclusive rights for the evaluation, prospecting, and exploration of five blocks, with the potential for lithium mineral exploitation rights for commercial production upon discovery.
The agreement not only enhances India's efforts to secure a lithium source but also brings valuable technical and operational expertise in brine-type lithium exploration, exploitation, and extraction. A joint venture company, KABIL, has been established with the involvement of three Central Public Sector Enterprises: National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL), and Mineral Exploration Company Ltd. (MECL), with NALCO leading the partnership. This marks a significant stride in ensuring critical mineral security for the nation and aligns with the vision of 'Aatmanirbhar Bharat' (self-reliant India). Argentina, being part of the 'Lithium Triangle' alongside Chile and Bolivia, holds over half of the world's total lithium resources. It boasts the second-largest lithium resources, third-largest lithium reserves, and fourth-largest production globally.
Hindustan Copper Limited (HCL) is a Miniratna Category-I Government of India (GoI) Enterprise, operating under the Ministry of Mines, established on November 9, 1967, in accordance with the Companies Act, 1956. Formed with the objective of taking over the responsibilities related to the exploration and exploitation of copper deposits from the National Mineral Development Corporation Ltd., HCL is the exclusive entity in India dedicated to copper ore mining. It holds all active mining leases for copper ore and stands as the sole vertically integrated producer of refined copper in the country.
