New Delhi: licence by the Ministry of Mines for the Kawalapur REE and RM block, marking the miner’s entry into the exploration and development of critical minerals. The move aligns with the government’s push to secure domestic supplies of rare earth elements and strategic minerals.
New Delhi/Kolkata: State-owned Coal India Ltd (CIL) on Tuesday said it has received a composite licence from the Ministry of Mines for the grant of a mineral concession, marking a strategic diversification beyond coal into the critical minerals space.
In a regulatory filing, the company said the licence pertains to the Kawalapur REE and RM block, spread over an area of about 398 hectares. The concession has been awarded under the Mines and Minerals (Development and Regulation) Act, 1957, as amended from time to time.
Under the terms of the composite licence, Coal India will undertake exploration of the block and, subject to meeting stipulated conditions, will become eligible for a mining lease after a period of five years. The mining lease deed will be executed by the concerned state government, the filing said.
The award has been made by a domestic authority — the Ministry of Mines, Government of India — and does not involve any related-party transaction, Coal India clarified.
The move assumes significance as India steps up efforts to secure access to rare earth elements (REEs) and other critical raw materials used in clean energy, electronics, defence and advanced manufacturing. The government has been encouraging public sector undertakings to play a larger role in the exploration and development of such resources to reduce import dependence.
Coal India, which accounts for over 80% of the country’s coal output, has in recent years signalled intent to diversify into non-coal mining and related businesses, including critical minerals, coal gasification and renewable energy.
While the company did not disclose the potential investment size or timelines for development, the grant of the composite licence marks an initial step in building a presence in the strategic minerals segment, which is expected to see rising policy and commercial focus in the coming years.