Daily Current Affairs : 17-January-2024

India has recently achieved a historic feat by venturing into the lithium exploration and mining sector through a groundbreaking agreement between Khanij Bidesh India Limited (KABIL) and Argentina’s state-owned enterprise, Catamarca Minera y Energética Sociedad del Estado (CAMYEN SE). This marks a significant milestone as it represents the first-ever lithium exploration and mining project undertaken by an Indian government company.

The Agreement Details:

The agreement establishes the framework for KABIL to explore and develop five lithium brine blocks situated in Argentina’s Catamarca province. Covering an expansive area of approximately 15,703 hectares, these blocks hold the key to unlocking valuable lithium resources. This move not only signifies India’s foray into the lithium market but also strengthens diplomatic ties with Argentina.

Argentina’s Lithium Landscape:

Argentina, positioned as part of the renowned “Lithium Triangle” alongside Chile and Bolivia, plays a crucial role in global lithium production. With the world’s third-largest lithium reserve, Argentina boasts significant lithium deposits, particularly in its Catamarca province. This partnership enables India to tap into Argentina’s expertise and resources, fostering a collaborative approach in the global lithium market.

Strategic Importance for India:
  1. Reducing Dependency: The lithium exploration initiative aligns with India’s strategic goal of reducing dependency on external sources for critical minerals. Diversifying the lithium supply chain enhances India’s energy security and supports its ambitious electric vehicle (EV) and renewable energy goals.
  2. Economic Implications: This venture holds promising economic implications for India, creating opportunities for job creation, technology transfer, and economic growth. The exploration and mining activities are expected to contribute significantly to India’s GDP and provide a boost to the mining sector.
Important Points:
  • The Agreement Details:
    • KABIL authorized to explore and develop five lithium brine blocks in Argentina’s Catamarca province.
    • Blocks cover approximately 15,703 hectares, providing a substantial area for potential lithium extraction.
  • Argentina’s Lithium Landscape:
    • Argentina, part of the “Lithium Triangle” with Chile and Bolivia.
    • Holds the world’s third-largest lithium reserve.
    • Catamarca province in Argentina is crucial for lithium deposits.
  • Strategic Importance for India:
    • Reducing Dependency:
      • Aligns with India’s goal of reducing dependence on external sources for critical minerals.
      • Strengthens energy security and supports electric vehicle (EV) and renewable energy objectives.
    • Economic Implications:
      • Promising economic outcomes for India, including job creation and technology transfer.
      • Expected contributions to GDP and a boost to the mining sector.
Why In News

India has reached a historic milestone by signing an agreement between Khanij Bidesh India Limited (KABIL) and Argentina’s state-owned enterprise, Catamarca Minera y Energética Sociedad del Estado (CAMYEN SE), marking the first-ever lithium exploration and mining project by an Indian government company. This strategic collaboration underscores India’s commitment to securing a sustainable supply of lithium, a crucial component for advancing the country’s electric mobility and renewable energy initiatives.

MCQs about A Landmark Agreement in Lithium Exploration

  1. What is the significance of the agreement between KABIL and CAMYEN SE in the context of lithium exploration?
    A. It marks the first-ever lithium project by a private Indian company.
    B. It signifies the first lithium exploration project by an Indian government company.
    C. It represents India’s entry into gold mining in Argentina.
    D. It establishes a joint venture for coal extraction in Catamarca province.
    Correct Answer: B. It signifies the first lithium exploration project by an Indian government company.
    Explanation: The agreement between KABIL and CAMYEN SE is historic as it represents the first-ever lithium exploration and mining project undertaken by an Indian government company.
  2. Where are the five lithium brine blocks located as mentioned in the agreement?
    A. Chile
    B. Bolivia
    C. Catamarca province, Argentina
    D. India
    Correct Answer: C. Catamarca province, Argentina.
    Explanation: The agreement allows KABIL to explore and develop five lithium brine blocks located in Argentina’s Catamarca province.
  3. Why is Argentina strategically important in the global lithium market?
    A. It has the world’s largest lithium reserve.
    B. It is part of the “Gold Triangle” with Chile and Bolivia.
    C. It is a leading producer of copper.
    D. It holds significant lithium deposits, particularly in Catamarca province.
    Correct Answer: D. It holds significant lithium deposits, particularly in Catamarca province.
    Explanation: Argentina is strategically important in the global lithium market due to its significant lithium deposits, especially in Catamarca province.
  4. What is one of the key strategic goals for India in venturing into lithium exploration?
    A. Promoting tourism in Argentina
    B. Enhancing the diamond trade with Bolivia
    C. Reducing dependency on external sources for critical minerals
    D. Establishing a joint space exploration program with Chile
    Correct Answer: C. Reducing dependency on external sources for critical minerals.
    Explanation: India’s lithium exploration aligns with the strategic goal of reducing dependency on external sources for critical minerals, enhancing energy security, and supporting electric vehicle (EV) and renewable energy objectives.

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