Coal India Limited (CIL) has made a significant move by securing its first domestic critical mineral asset, emerging as the preferred bidder for the Khattali Chotti graphite block in Madhya Pradesh. This marks CIL’s inaugural non-coal mineral mining venture, diversifying its portfolio and venturing into new territory.
In a forward auction held by the Ministry of Mines on July 9, CIL outbid competitors by quoting a mining premium of 150.05% for the graphite block. This premium will be paid to the state of Madhya Pradesh, solidifying the deal once performance security is deposited and formalities are met.
The Ministry of Mines had invited bids for the mineral block auction, and CIL’s success in this venture highlights its commitment to playing a key role in securing critical minerals domestically. India currently imports around 69% of its graphite needs, making the exploration and extraction of this mineral a strategic move for CIL.
Graphite is in high demand as an anode material in lithium-ion battery manufacturing, particularly for electric vehicles and energy storage systems. This asset will position CIL at the forefront of the green energy transition, leveraging its extensive mining experience to meet the projected increase in demand for graphite over the coming years.
With this significant achievement, CIL is not only diversifying its operations but also contributing to India’s self-reliance in critical minerals. This move sets the stage for further expansion and growth opportunities in the mineral mining sector.
