We report the detection of the LiI lambda 6708 resonance line in the K
4V secondary of the black-hole binary Nova Muscae 1991, The LiI featur
e changes with orbital phase, being stronger (EW similar to 400 m Angs
trom) around phi = 0.0 (observing the dark side of the secondary) and
weaker (EW less than or equal to 190 m Angstrom) around phi = 0.5 (obs
erving the side facing the compact object). This effect is interpreted
as LiI ionization induced by UV/X-ray illumination of the inner hemis
phere of the companion star. From the strength of the LiI feature obse
rved around phi = 0.0 we infer a photospheric lithium abundance of log
N(Li)similar to 3. This value should be considered in fact as a lower
limit to the true Li abundance because we have not fully corrected for
the LiI overionization expected from UV/X-ray illumination. High lith
ium abundances are becoming a common feature in the secondaries of bla
ck hole binaries. After the Li detections in V404 Cyg, A0620-00 and GS
2000 + 25, our observations of Nova Muscae not only add a new case to
the list, but also demonstrate the impact of irradiation on the format
ion of the LiI line for the first time. The LiI features observed in t
he other black hole binaries are probably also affected by irradiation
, although not as strongly as in Nova Muscae, and their Li abundances
are higher than previously thought. The most attractive scenario for e
xplaining the origin of the high Li abundances in black hole binaries
appears to be nucleosynthesis during the explosive accretion events th
at characterize these objects, We argue that our LiI detection in the
secondary of X-ray Nova Muscae 1991, and the transient gamma-ray narro
w emission feature at 476 keV observed during the 1991 outburst, are b
oth signatures of Li production around the black hole. We propose that
the gamma-ray emission line was due to Be-7 electron capture which yi
elded excited Li-7 atoms. This reaction is able to account for the cen
tral energy, narrow width and time scale of the observed gamma-ray emi
ssion feature. The presence of Li on the surface of the secondary show
s that Li atoms created during the outburst can escape and enrich the
interstellar medium.