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Source: Coal India Exploring Lithium Assets in Argentina with US Firm

FILE PHOTO: Brine pools used to extract lithium are seen next to a lithium mining camp at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Brine pools used to extract lithium are seen next to a lithium mining camp at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. REUTERS/Agustin Marcarian/File Photo
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Source: Coal India Exploring Lithium Assets in Argentina with US Firm

FILE PHOTO: Brine pools used to extract lithium are seen next to a lithium mining camp at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Brine pools used to extract lithium are seen next to a lithium mining camp at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. REUTERS/Agustin Marcarian/File Photo

State-run Coal India Ltd is exploring lithium blocks in Argentina along with a US company to secure supplies of the battery material, an Indian source with direct knowledge said on Tuesday.
The efforts are part of India's membership under the US-led Minerals Security Partnership (MSP), which New Delhi joined last year to ensure adequate supplies of minerals to meet zero-carbon goals.
India has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries. Prime Minister Narendra Modi's government last year listed 30 minerals, including lithium, nickel, titanium, vanadium and tungsten, as critical to drive the adoption of clean energy.
India and the United States said on Monday they were co-investing in a lithium resource project in South America and a rare earths deposit in Africa to diversify critical minerals supply chains.
India has been in talks with several countries, including the US, to collaborate in lithium processing and avoid relying on China, Reuters had reported. The rare
"Coal India has come forward for the Kachi block in Argentina in which a US company and two other countries are interested to explore under the MSP," the source said, declining to be identified due to the sensitive nature of discussions.
Preliminary studies are being conducted, the source added.
Australian miner Lake Resources, which has a lithium project in Kachi, is targeting 50 kilotons of annual battery-grade lithium from the project by 2030.
Coal India shares turned positive after the Reuters report, rising as much as 1.2% before trimming gains to trade 0.3% higher.
Shares of the company had been down 0.2% before the news.
In February, US Secretary of State Antony Blinken said on a trip to Argentina that the US was exploring investment opportunities in critical minerals, especially lithium.
Coal India and India's federal Ministry of Mines did not immediately respond to Reuters' emails for comments.
Under the minerals partnership, which India had joined last year, New Delhi was invited to participate in 20-25 critical minerals projects, of which four have been identified by the Indian government, with two of these are in collaboration with the US, the source said.
The second project is in the Kangankunde block in Malawi, the source said, which is being explored by India's state-owned IREL (India) Ltd for rare earths.
IREL did not immediately respond to a Reuters email seeking comments.
The Indian government has also asked miners to explore critical minerals in Australia's Dubbo region, the source said.
India had also proposed a critical minerals trade deal with US, which would prohibit imposition of tariffs on both countries by each other and would be similar to a pact US has with Japan that grants Japanese automakers wider access to US electrical vehicles tax credit, the source said.
However, the US is in talks with India for a bilateral Critical Minerals Memorandum of Understanding (MoU), both countries said on Monday.

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Israel-Iran Conflict Disrupts Air Travel in the Region

Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)
Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)
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Israel-Iran Conflict Disrupts Air Travel in the Region

Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)
Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)

The escalating military conflict between Israel and Iran is creating mounting challenges for Middle Eastern airlines, including airspace closures and rerouted flight paths, all of which are driving up operational costs.

While Gulf carriers are relying on alternative routes - albeit more expensive ones - private airlines in neighboring countries face the risk of exiting the market altogether if the crisis persists.

Countries geographically close to the conflict, such as Iraq, Lebanon, and Jordan, are increasingly concerned about the conflict’s deepening impact on the civil aviation sector, which represents one of the most sensitive branches of their economies. The threat is no longer confined to security concerns alone, but is now hitting the economic core of these nations.

Dr. Hussein Al-Zahrani, an aviation investor, told Asharq Al-Awsat that countries geographically tied to the Iran-Israel conflict are already facing direct complications in the aviation sector. These include airport closures and rerouted flights, such as the diversion of Jordanian planes to Egypt’s Cairo and Sharm El Sheikh, or grounding aircraft entirely.

Al-Zahrani noted that national carriers in these countries, particularly state-owned airlines, are more likely to receive government support to help them weather the storm. However, the limited number of private airlines operating in these regions may not survive a prolonged crisis.

Iraq has approximately five carriers, Lebanon one, Syria two (one of which is government-owned), and Jordan three; all of which could suffer significantly if the conflict drags on.

In contrast, Gulf airlines have contingency plans in place, Al-Zahrani said, although they are not immune to the repercussions.

Increased flight distances and restricted airspace will present logistical and financial burdens, though Gulf carriers are more resilient and often absorb the extra costs themselves. In many cases, rerouting results in only minor extensions - around 20 minutes - which allows airlines to maintain stable pricing.

He cited exceptions, such as some northern-bound Kuwaiti flights to Europe that typically rely on Iraqi airspace. These will now need to reroute via Saudi airspace, then over the Mediterranean to reach Europe, significantly increasing flight durations and operating expenses.

Al-Zahrani also pointed out that many transcontinental flights between East and West, which pass over Saudi and Iraqi airspace, will be disrupted if closures in conflict zones persist. This may force airlines to reschedule, reroute, or even suspend certain long-haul routes if they become economically unfeasible.

Aviation-sector companies are considered foundational contributors to national budgets, particularly in countries where the industry plays a major economic role. According to Al-Zahrani, these entities are typically the first to suffer in the event of military conflicts, especially as oil prices rise and long-haul operations become increasingly expensive.

Observers warn that if Iran were to close the Strait of Hormuz - a vital maritime corridor connecting the Arabian Gulf to the Gulf of Oman and the Arabian Sea - it would further heighten concerns for both maritime and air transportation companies, given the anticipated spike in insurance costs and risk premiums should the crisis continue.

Economic analyst Marwan Al-Sharif told Asharq Al-Awsat that airlines may be able to navigate the crisis if it remains short-lived, especially those operating in proximity to the warring parties. However, if the conflict drags on, the resulting losses could grow more severe, weakening the financial viability of many carriers amid rising fuel costs, airspace restrictions, and surging insurance rates.