Coal India Eyes Strategic Rare Earth Pacts in Australia, Russia and Africa to Diversify Supply

Coal India Ltd is exploring partnership opportunities in rare earth mining across Australia, Russia, Argentina, Chile and several African nations, a senior executive of its coking coal–focused unit said, as India seeks to reduce dependency on China’s dominance in critical minerals.

Manoj Kumar Agarwal, Chairman and Managing Director of Bharat Coking Coal Ltd (BCCL), said the initiative is in its early stages and includes plans to collaborate with other companies to secure rare earth metals vital for industries from electronics to clean energy. The move follows China’s expansion of export restrictions on rare earth minerals, which has raised concerns about supply chain vulnerabilities for sectors reliant on these materials.

Coal India is pursuing opportunities both overseas and domestically, with potential collaboration with Indian state-run entities such as Indian Rare Earths Ltd (IREL), Khanij Bidesh India Ltd and Hindustan Copper Ltd. The strategy is supported by proceeds from BCCL’s $119 million initial public offering, which closed after being heavily oversubscribed.

In addition to rare earth pursuits, BCCL plans to acquire coking coal mines in Australia and Russia within the next two to three years as part of an effort to boost production capacity. The company aims to increase its coking coal output to 56 million tonnes per annum by fiscal 2030, up from about 40.5 MTPA at the end of fiscal 2025, aligning with India’s infrastructure and steel manufacturing needs.

Analysts say Coal India’s rare earth push reflects a broader strategy to secure critical minerals outside traditional sources and strengthen India’s role in global supply chains amid escalating geopolitical competition.