NALCO, Hindustan Copper shares gain up to 7% on India's first lithium exploration deal

, a PSU firm engaged in alumina and aluminum manufacturing and sales, saw its shares surge sharply in today's intraday session, hitting a new lifetime high of 144 apiece by gaining 6.70%. This achievement is particularly noteworthy as the stock has set a new record after a gap of 16 years, surpassing its previous all time high of 141.60 apiece, which was set in January 2008.

: In a similar positive trend, , a state owned company engaged in mining copper ore in India, also experienced a sharp increase in today's trade, reaching a new 52 week high of 289.30 apiece by gaining 7%. Factors behind the sharp rally On Monday, Khanij Bidesh India Limited (KABIL), a joint venture between NALCO, Hindustan Copper, and Mineral Exploration, signed an agreement with Argentina's CAMYEN SE to explore and develop five lithium mines, the government said in a press release.

KABIL was formed in 2019 to source strategic minerals like lithium and cobalt from overseas locations. Lithium is the single most important critical mineral for the energy transition and a fundamental component of lithium ion batteries, which power electric vehicles and battery energy storage systems.

: The agreement, a first ever lithium exploration and mining project by a government company of India, allows KABIL to commence exploration and development of five lithium brine blocks in Catamarca, Argentina. The blocks cover an area of approximately 15,703 hectares. The project cost is estimated to be around 200 crores, and KABIL is also preparing to establish a branch office in Catamarca, Argentina, as per the press release.

The agreement grants KABIL exploration and exclusive rights for the five blocks, allowing the evaluation, prospecting, and exploration of lithium. Upon the discovery of lithium mineral, exploitation rights for commercial production will be granted. : This move enhances India's lithium sourcing capabilities and brings in technical and operational experience for brine type lithium exploration, exploitation, and extraction.

This agreement is a significant step towards ensuring critical mineral security for the nation, aligning with the 'Aatmanirbhar Bharat' (self reliant India) initiative, according to the press release. Argentina, known as part of the "Lithium Triangle" along with Chile and Bolivia, possesses substantial lithium resources.

With more than half of the world's total lithium resources, it holds the distinction of being the second largest in reserves and the fourth largest in production globally. : In February last year, India found its first lithium deposits in Jammu and Kashmir with estimated reserves of 5.9 million tonnes.

In July 2023, the country tweaked its mining rules by allowing the entry of private miners to search for the materials. At 01:45 pm, shares of NALCO were trading with a gain of 1.3% at 137.10 apiece, while those of Hindustan Copper were trading at 263.90 apiece, up by 2.70%. Livemint tops charts as the fastest growing news website in the world to know more.

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