Deccan Gold Mines Ltd (DGML), India’s sole listed gold exploration and mining company, announced on Tuesday its acquisition of a majority stake in five lithium blocks in Mozambique, marking its entry into the critical minerals sector.
The acquisition places DGML in the Alto Ligonha pegmatite belt, renowned globally for its abundant lithium-cesium-tantalum (LCT) pegmatites, crucial for the extraction of lithium, tantalum, and beryllium.
These critical mineral concession blocks were secured through DGML’s wholly-owned subsidiary, Deccan Gold FZCO (DGFZCO), based in the UAE.
“In a strategic collaboration, DGFZCO has formed a joint venture with the Magnifica Group of Mozambique, leveraging its ownership of multiple concessions in the region,” DGML stated.
This month, DGFZCO and Magnifica established Deccan Gold Mozambique LDA (DGMOZ), with DGFZCO holding a majority stake of 51%, with the potential to increase to 70% in the future.
Moving forward, DGMOZ aims to set up a small-scale processing plant with a daily capacity of 100 tonnes to refine lithium, tantalum, and other mineral concentrates.
“The joint venture with Magnifica Group will unlock synergies in upstream capabilities and eventually extend to midstream operations, catering to the growing Indian market,” commented Hanuma Modali, Managing Director of Deccan Gold Mines.
“DGFZCO is committed to investing approximately USD 10 million over the next three years into DGMOZ to enhance exploration, operations, and infrastructure across the acquired concessions.
DGFZCO plans to raise the necessary capital through strategic initiatives in the United Arab Emirates,” reads the “Update on foray into critical minerals vertical in Mozambique through Deccan Gold Mozambique LDA (step-down subsidiary),” published on May 12 by Deccan Gold Mines Limited.
