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DGML Expands into Critical Minerals Sector, Secures Majority Stake in Lithium Blocks in Mozambique


DGML Expands into Critical Minerals Sector, Secures Majority Stake in Lithium Blocks in Mozambique


Deccan Gold Mines Limited (DGML), India’s only listed gold exploration and mining company (Scrip Code: DECNGOLD | 512068 | INE945F01025) has forayed into the critical minerals sector through the acquisition of majority stake in multiple critical mineral concession blocks spanning a significant area in Mozambique, Africa.

These concessions strategically position DGML within the renowned Alto Ligona pegmatite belt, globally recognized for its rich deposits of Lithium-CesiumTantalum (LCT) pegmatites, crucial for the extraction of Lithium, Tantalum, and Beryllium.

“Critical minerals form the basis of next-generation industrial value chains, from new energy to mobility, and hence by extension are integral to resource security. We have been actively scouting, surveying and assessing potential assets that are rich in the critical minerals list as officiated by the Government, to extend our expertise strategically. The JV with Magnifica Group shall unleash synergies in upstream capabilities and eventually also midstream that will cater to a burgeoning Indian market”, said Mr. Hanuma Modali, Managing Director, Deccan Gold Mines Limited.

In a strategic collaboration, DGML’s wholly owned subsidiary, Deccan Gold FZCO, Dubai, UAE (“DGFZCO”), has forged a joint venture with the Magnifica Group of Mozambique, leveraging on its ownership of multiple concessions within the region.

On May 7, 2024 DGFZCO and Magnifica have incorporated a Company viz., Deccan Gold Mozambique LDA (“DGMOZ”). DGFZCO will hold 51% majority ownership stake in DGMOZ, with a potential to further increase its ownership to 70% in the near future. 

Going forward, DGMOZ plans to establish a small-scale processing plant with a capacity of 100 tons per day, tailored to refine Lithium, Tantalum, and other mineral concentrates. Furthermore, the processing plant’s design would facilitate seamless scalability to a capacity of 1,000 tons per day following comprehensive exploration activities.

The resulting mineral concentrates will be earmarked for preferential sale within the burgeoning Indian market, projected to witness escalating demand for these critical minerals in the foreseeable future.

DGFZCO (DGML’s Dubai arm) is committed to investing approximately USD 10 million over the next three years into DGMOZ to bolster exploration, operations and infrastructure across the acquired concessions. DGFZCO plans to raise the requisite capital through strategic initiatives in the United Arab Emirates.

DGML believes that this is an important and significant milestone in its growth plans whilst underlining its commitment to sustainable growth. Further, DGML strongly believes that this strategic initiative seamlessly aligns with India’s strategic imperatives, particularly in securing a steady supply of critical minerals essential for advancing its green energy transition goals.


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