Coal India Limited (CIL) has taken a significant step in diversifying its portfolio by securing its first critical mineral asset, a graphite block in Madhya Pradesh. This move marks CIL’s entry into non-coal mineral mining, a strategic pivot aimed at supporting the green energy transition.
The graphite block, located in the Khattali Chhoti region of Alirajpur district, spans 599.76 hectares. Graphite is essential for the production of lithium-ion batteries, which are crucial for electric vehicles and renewable energy storage systems. This acquisition positions CIL as a key player in the critical mineral sector, addressing India’s significant graphite import reliance, which currently stands at about 69%.
CIL won the bid with a mining premium of 150.05% of the mineral despatch value, showcasing its commitment to securing valuable mineral assets despite the subdued response from other bidders in the auction. The auction, part of India’s first tranche of critical mineral blocks, saw 28 out of 38 blocks annulled due to lack of interest, making CIL’s successful bid a notable achievement.
This venture aligns with CIL’s broader strategy to expand its footprint in the critical minerals sector. The company is also exploring graphite mines in Sri Lanka and pursuing lithium blocks in Chile, Australia, and Africa.
The shift from traditional coal mining to critical minerals is expected to leverage CIL’s extensive mining expertise, providing a competitive edge in the growing market for electric vehicles and energy storage solutions. By securing this graphite block, CIL aims to enhance its role in India’s green energy initiatives, utilizing its vast experience to support the country’s transition to sustainable energy sources.
