Coal India secures first domestic critical mineral asset
Coal India Limited (CIL) has successfully secured its first domestic critical mineral asset, emerging as the preferred bidder for the Khattali Chotti graphite block in Alirajpur district, Madhya Pradesh. This milestone was achieved during the tranche two forward auction held on July 9 by the Ministry of Mines. This venture marks CIL’s initial foray into non-coal mineral mining.
CIL won the bid by quoting a mining premium of 150.05% of the value of mineral despatch, which it will pay to the state of Madhya Pradesh. The company will receive the letter of intent after depositing the required performance security. A composite license will be issued within a year, once the formalities under the NIT timeline are completed.
The Ministry of Mines had invited bids for this tranche two mineral block auction, with CIL securing the win as part of its diversification strategy. The total area of the block is nearly 600 hectares.” Currently, India imports about 69% of its graphite needs, which includes natural, synthetic, and end-use products. The limited number of players in the graphite mining industry presents opportunities for new entrants.
Graphite is a crucial material for anode production in lithium-ion batteries, valued for its cost-effectiveness and energy density. As the electric vehicle market and energy storage systems continue to grow, the demand for lithium-ion cells and, consequently, graphite, is expected to rise significantly.
This strategic move into graphite mining aligns with CIL’s commitment to supporting India’s critical mineral needs and contributing to the country’s green energy transition.
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