State-owned Coal India Ltd. has secured its first critical mineral asset, a graphite block in Madhya Pradesh, it announced on Monday.
This move marks CIL's entry into non-coal mineral mining, enhancing its role in supporting the green energy transition.
CIL emerged as the preferred bidder for the Khattali Chotti graphite block in the Alirajpur district during the Ministry of Mines' second tranche forward auction held on July 9, according to a statement.
The company won the bid with a mining premium of 150.05% of the mineral dispatch value, payable to the state.
The company will formally receive the letter of intent after depositing performance security, and a composite licence will be issued within a year once all formalities are completed.
CIL, which accounts for over 80% of India's domestic coal output, highlighted that acquiring this graphite asset will help reduce the country's reliance on graphite imports, which currently stands at about 69%.
Graphite is crucial as an anode material in lithium-ion batteries, essential for electric vehicles and energy storage systems.
With the demand for graphite projected to increase by 25-27% by fiscal 2035, CIL's strategic move into graphite mining positions the company to capitalise on the expanding market.
The company stated that this diversification aligns with its broader strategy to venture into critical minerals, aiming to bolster domestic supply and support the growing needs of the energy sector.
(With inputs from PTI).
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