SPV to acquire rare minerals overseas asset in 6 months

A special purpose vehicle (SPV) created by three PSUs to acquire overseas assets for rare minerals is expected to strike its first overseas asset within six months, a senior official said Thursday.

The Khanij Bidesh India Ltd (KABIL) - the SPV created by the Hindustan Copper Ltd (HCL), the Mineral Exploration Corp Ltd (MECL) and the Nalco Ltd - has shortlisted a few assets in countries like Chile, Peru and Bolvia.

"We expect the first asset to be acquired in the next 6 months. We had been carrying out due-diligence for some time in countries like Chile, Peru and Bolivia," HCL chairman and managing director Santosh Sharma said.

A shareholders' agreement will be signed shortly, he said. Respective company boards and the government have already approved the JV.

The HCL and the MECL hold 33 per cent each in the JV while the Nalco holds 34 per cent.

It will help in the formation of a joint working group, which will be empowered to deal with government-to- government (G2G) deals relating to sourcing of rare minerals.

The SPV is targeting 13 minerials such as lithium, cobalt and titanium.

The KABIL will have an authorised and paid-up capital of Rs 100 crore and Rs 30 crore respectively, Sharma said.

It is a part of the HCL's diversification process for sourcing rare minerals like titanium, he said.