Deccan Gold Mines in Talks with Kabul for Mineral Extraction Rights
Deccan Gold Mines Ltd has initiated discussions with potential partners in Afghanistan to access the country’s vast mineral resources, including lithium, rare earth minerals, and gold, according to Managing Director Hanuma Prasad.
Key Takeaways
- Deccan Gold Mines negotiating for Afghanistan’s lithium and rare earth deposits
- India faces critical mineral shortage with 90% supply controlled by China
- Banking channels and regulatory clarity remain key hurdles
Strategic Mineral Partnership
“We have been talking to a few people in Afghanistan for the last one to one-and-a-half years,” Prasad revealed in an exclusive interview. “There are entrepreneurs and authorities who have approached us, and we are in regular touch about possible business arrangements.”
Afghanistan holds some of the world’s largest identified resources of lithium, rare earth elements and gold, mapped extensively during Soviet-era exploration. “Potential-wise it is very, very good,” Prasad emphasized, noting India’s strategic need for critical minerals makes early engagement crucial.
Recent Developments and Challenges
On November 24, an Afghan delegation met with Indian industry body ASSOCHAM, offering long-idle mining sites to India for exploration as part of efforts to deepen economic engagement and generate local employment.
However, significant challenges remain. “As of today, there are no banks that would transfer money. That needs to be sorted out,” Prasad explained. “We also need clarity on licensing and how they are going to handle permits.”
While India maintains favorable ties with Afghanistan, governance and human-rights concerns persist. “There are issues, of course… but we hope things will improve. The mineral potential is definitely attractive,” he added.
India’s Critical Mineral Dependency
India remains heavily dependent on imports for rare earth magnets, with China controlling the lion’s share of global supply. Domestic output of 2,000-2,900 tonnes annually falls short of current demand of 4,000 tonnes, expected to rise to about 8,000 tonnes by 2030.
Government plans to raise capacity to 6,000 tonnes annually by the end of the decade would bring India close to self-sufficiency.
Government Support and Other Projects
The Union Cabinet recently approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ with a financial outlay of ₹7,280 crore. The scheme aims to establish 6,000 Metric Tons per Annum of integrated Rare Earth Permanent Magnet manufacturing in India.
“I think this is a very good step in the right direction because India is completely import dependent,” Prasad commented. “We are really squeezed by the Chinese, who control about 90 per cent of the global supply.”
Separately, Deccan Gold’s private gold mine in Andhra Pradesh has moved into production after successful trial runs, while trial production at its Kyrgyzstan project begins this week. Drilling at a nickel-copper-platinum block in Chhattisgarh will start in December.
