Coal India, Hindustan Zinc, and Oil India Win Key Mineral Blocks in Latest Auction Round

By Metals Minerals Publication On May 28, 2025 0

In a significant development for India’s mineral sector, Coal India Ltd (CIL), Hindustan Zinc Ltd (HZL), and Oil India Ltd (OIL) have emerged as winners in the latest mineral block auction conducted by the Ministry of Mines. The auction, which was part of the government’s ongoing effort to enhance domestic production of critical and strategic minerals, saw competitive bidding from both public and private sector players.

These mineral blocks are expected to play a crucial role in strengthening India’s self-reliance in vital sectors such as energy, electric mobility, infrastructure, and defense manufacturing.

Winners and Their New Assets

1. Coal India Ltd (CIL): Diversifying Beyond Coal

Coal India, the world’s largest coal-producing company, has taken a strategic leap by venturing into non-coal mineral exploration. By securing a mineral block rich in critical minerals, the company aims to diversify its portfolio and align with the government’s broader energy transition strategy.

Block awarded: A critical mineral block (specific details awaited)
Objective: Diversify into minerals like bauxite, copper, and rare earth elements (REEs) to reduce over-reliance on coal
Significance: Marks CIL’s serious entry into the non-coal mining space and its adaptation to the clean energy economy

2. Hindustan Zinc Ltd (HZL): Expanding Its Resource Base

A leading global producer of zinc, lead, and silver, Hindustan Zinc has added to its mineral base through the acquisition of a strategic block with promising zinc and associated mineral reserves.

Block awarded: Likely in Rajasthan or Madhya Pradesh, rich in zinc and polymetallic ores
Objective: Secure long-term ore supply to sustain and expand smelting operations
Significance: Reinforces HZL’s position as India’s top non-ferrous mining company and a key player in global zinc production

3. Oil India Ltd (OIL): Exploring New Terrain

Traditionally focused on oil and gas exploration, Oil India is now stepping into the solid minerals segment with its recent auction win. The company secured a block with potential for phosphates or rare earths, aiming to support India’s fertilizer and electronics sectors.

Block awarded: A mineral-rich site, likely in Assam, Rajasthan, or Madhya Pradesh
Objective: Diversify business operations into mineral mining
Significance: Aligns with OIL’s broader strategic plan to become a multi-energy and mineral resource company

About the Auction

The auction was part of Tranche V of the critical and strategic minerals auction initiative, which was launched in January 2025 by the Ministry of Mines. The government aims to unlock the potential of India’s mineral wealth, reduce import dependency, and attract investments in sustainable and advanced mining technologies.

Total blocks auctioned in this round: 15
Blocks successfully awarded: 10
Key minerals offered: Graphite, phosphorite, rare earth elements (REEs), vanadium, potash, halite, and more
States covered: Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan, Karnataka, Uttar Pradesh

Strategic Significance

This development is particularly noteworthy due to:

India’s growing demand for critical minerals in batteries, solar panels, electronics, and fertilizers
Government’s push for “Atmanirbhar Bharat” (self-reliant India) in mineral sourcing
The inclusion of public sector enterprises (PSEs) in the competitive auction space
Support for the National Mineral Policy 2019, which promotes transparency and efficiency in mining allocation

Industry Outlook and Impact

The entry and expansion of companies like CIL, HZL, and OIL in the strategic minerals domain indicate a broadening of India’s mining ecosystem and signal growing corporate confidence in government policy.

This move is expected to:

Boost domestic mineral production
Create employment and infrastructure in resource-rich regions
Encourage public-private partnerships in advanced mining technologies
Strengthen India’s global competitiveness in strategic minerals