NEW DELHI, March 22 (Reuters) - Indian iron ore miner NMDC Ltd is exploring lithium assets in Africa and Australia and is currently in negotiations, a source with direct knowledge of the matter said on Friday.

"We are a government company and we want to use the reservation route instead of auctions," the source said, referring to taking over a mining block by being nominated to do so by the government.

NMDC did not immediately respond to a Reuters request for comment.

In June last year, Reuters reported that NMDC's unit Legacy Iron Ore had signed a lithium exploration pact with Australia's Hancock Prospecting Pty Ltd.

Additionally, NMDC is seeking lithium blocks from the Indian government on a nomination basis, according to the source.

NMDC shares were down 1.6% on Friday.

(Reporting by Neha Arora in New Delhi, Writing by Ashna Teresa Britto; Editing by Sonia Cheema)