Coal India to Foray into Critical Minerals Sector: Chairman PM Prasad Unveils Strategic Expansion Plans
Coal India Limited (CIL), the world’s largest coal producer, is preparing to enter the critical minerals sector, a strategic pivot aimed at aligning with India’s clean energy and manufacturing goals. Chairman and Managing Director PM Prasad has outlined the company’s plans to diversify beyond coal and establish a presence in the mining and processing of critical minerals such as lithium, cobalt, nickel, and rare earth elements.
This move marks a transformative shift in CIL’s role from a fossil fuel giant to a player in the global energy transition and mineral security framework.
Why the Shift to Critical Minerals?
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Energy Transition Demand
Critical minerals are indispensable for technologies like electric vehicles, solar panels, wind turbines, and batteries.
As India accelerates its green energy agenda, the demand for lithium, cobalt, and rare earths is expected to grow exponentially. -
Reducing Import Dependence
India currently imports nearly 100% of its lithium and other key battery minerals. Coal India’s entry aims to help build a self-reliant mineral value chain. -
Strategic Alignment with National Policies
The government’s focus on Atmanirbhar Bharat and recent policy support for critical mineral exploration and recycling aligns with CIL’s diversification.
Key Highlights from Chairman PM Prasad’s Statement
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New Business Division: CIL has created a dedicated vertical to explore and invest in critical minerals domestically and internationally.
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Focus Minerals: Initial focus will be on lithium, nickel, cobalt, graphite, and rare earth elements (REEs).
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Global Collaborations: CIL is considering joint ventures, overseas acquisitions, and partnerships with research institutions to access global resources and technologies.
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Exploration Plans: Active discussions are underway to participate in mineral blocks auctioned by the Government of India and to collaborate with other PSUs and the KABIL consortium (Khanij Bidesh India Ltd).
Steps Already Taken
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KABIL Collaboration
Coal India is already a part of KABIL, a joint venture formed with NALCO and Hindustan Copper Ltd, tasked with identifying and acquiring overseas mineral assets in countries like Argentina, Australia, and Chile. -
Domestic Exploration
CIL is engaging with the Geological Survey of India (GSI) and the Ministry of Mines to explore new mineral-rich zones in states like Rajasthan, Karnataka, Odisha, and Jharkhand. -
Technology Development
The PSU is exploring R&D partnerships for processing technologies, particularly for rare earth separation and lithium-ion battery recycling.
Strategic Significance
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Economic Diversification: This expansion could reduce CIL’s reliance on coal revenues, which may face long-term decline due to global decarbonization pressures.
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Geopolitical Advantage: Building domestic capabilities in critical minerals will reduce India’s dependence on countries like China for rare earth processing.
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Industrial Support: Domestic industries in sectors such as EV manufacturing, electronics, aerospace, and defense stand to benefit from a secure and affordable supply of key raw materials.
Challenges Ahead
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Technology and Expertise Gaps: India currently lacks large-scale refining and separation technology for several critical minerals.
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Global Competition: Securing international mining rights in politically stable regions may require aggressive strategy and diplomacy.
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Environmental Considerations: Mining of rare earths and lithium is environmentally intensive and must comply with new ESG standards.
Coal India’s proposed entry into the critical minerals sector, as articulated by Chairman PM Prasad, is a significant move in India’s resource security and energy transformation journey. It reflects a broader trend of Indian PSUs adapting to global shifts in energy consumption and industrial demand. By diversifying into this high-value, future-ready segment, CIL is positioning itself as not just a coal producer, but a strategic mineral powerhouse for a greener, tech-driven economy.