NMDC Initiates Pre-feasibility Studies for Australian Lithium Mines in April

NMDC, the largest iron ore miner in the country, is set to embark on preliminary feasibility studies (PFS) for its lithium mines in Australia, with the initiation planned for April 2024, as announced by Amitava Mukherjee, Chairman cum Managing Director (Additional Charge) and Director (Finance) of NMDC. The lithium mines are currently in the pre-PFS stage.

Mukherjee disclosed that there are operational lithium mines both above and below the terrain where NMDC's mines are situated in Australia. The preliminary feasibility studies are expected to be completed by October to November 2025. Speaking during a recent earnings call, Mukherjee mentioned, "We are just exploring right now. We are at the pre-PFS stage and will hopefully undertake the preliminary feasibility studies starting next April.... It should take around 18 months to do the PFS."

A pre-feasibility study (PFS) is an early-stage analysis crucial for providing stakeholders with essential information to make informed decisions about a potential mining project. It includes an overview of logistics, capital requirements, key challenges, and other critical details such as whether the operation will be open pit or underground. A pre-PFS involves mineral exploration work, including drilling, to inform a mineral resource report, orebody modeling, and a scoping study.

Mukherjee emphasized that if the results of the preliminary feasibility studies are encouraging, NMDC is prepared to expedite the process. The company, as a Central Public Sector Enterprise (CPSE) under the Ministry of Steel, is conducting pre-feasibility studies for magnetite iron ore and lithium mining in Australia through its subsidiary, Legacy, in partnership with Hancock Mining, the fifth-largest mining company globally.

"They (Hancock) are partnering with us in developing that (magnetite iron ore deposits), so we are in the PFS stage for the magnetized project and the pre-PFS stage for the lithium project," Mukherjee added, highlighting the ongoing collaboration with Hancock Mining in exploring and developing mining projects in Australia.

HBL