NMDC starts prospecting for lithium in Australia.

NMDC Ltd, the country’s largest iron ore merchant miner, has begun prospecting activities for lithium in Australia’s Mt Bevan region through its partner, Hancock Prospecting Pty.

The exact quantum of deposits are yet to be determined, said sources aware of the development

NMDC, through its 100 per cent owned Perth-based subsidiary, Legacy, has entered into an MoU with Hancock Prospecting for mining of lithium in Australia. Depending on the quantity of lithium reserves mined, Hancock will be granted a stake in Legacy, not exceeding 49 per cent. Hancock’s stake in Legacy would be upped as reserves/ mined lithium increase.

NMDC is a CPSE under the Ministry of Steel.

A prospecting activity incidentally determines the location, probable quantity and life of minerals and mines. It necessarily does not mean mining activities commence. From the prospecting stage to the actual mining of mineral, the time span could be anywhere from 2-5 years or more.

“Prospecting activities have commenced. In fact, NMDC through Legacy entered into a prospecting and mining agreement with Hancock; and MoUs were finalised / signed some four to six months back,” an NMDC official told businessline, requesting anonymity.

It could take anywhere between 12 and 15 months for the studies / prospecting activities to be complete.

HBL