Deccan Gold Mines Acquires Lithium Blocks in Mozambique
May 14, 2024 16:28
Deccan Gold Mines Ltd has acquired majority stake in five lithium blocks in Mozambique, aiming to establish a processing plant for lithium, tantalum, and other minerals.
Photograph: Steve Marcus/Reuters
New Delhi, May 14 (PTI) Deccan Gold Mines Ltd (DGML), the country's only listed gold exploration and mining company, on Tuesday said it has acquired majority stake in five lithium blocks in Mozambique, Africa.
This positions DGML within Alto Ligonha pegmatite belt, globally known for its rich deposits of lithium-cesium-tantalum (LCT) pegmatites, important for extraction of lithium, tantalum, and beryllium.
The critical minerals concession blocks were acquired through DGML's wholly-owned arm Deccan Gold FZCO (DGFZCO), the UAE.
"In a strategic collaboration...(DGFZCO) has forged a joint venture with the Magnifica Group of Mozambique, leveraging on its ownership of multiple concessions within the region," the company said in a statement.
DGFZCO and Magnifica had incorporated Deccan Gold Mozambique LDA (DGMOZ) this month.
DGFZCO will hold majority ownership stake of 51 per cent in DGMOZ, with a potential to increase its ownership to 70 per cent in the near future.
Going forward, DGMOZ plans to establish a small-scale processing plant with a capacity of 100 tonne per day to refine lithium, tantalum, and other mineral concentrates.
"The JV with Magnifica Group, shall unleash synergies in upstream capabilities and eventually also midstream that will cater to a burgeoning Indian market," Hanuma Modali, Managing Director, Deccan Gold Mines said.
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