Coal India signs agreement with Australian firms to mine critical minerals

“CIL has signed two non-disclosure agreements (NDAs) with New South Wales (NSW) companies and are in the advanced stage,” the coal ministry said on Friday.

The ministry informed that the state-owned largest coal mining company is also actively seeking to mine critical minerals in Argentina.

CIL’s chairman, PM Prasad, had previously said the company’s intention to participate in the auction of three critical mineral blocks by the mines ministry. “It has also visited lithium mines in Australia and is in preliminary talks about operating them,” Prasad stated.

On February 29, the government launched the second tranche of critical minerals auctions, including 18 minerals such as nickel, cobalt, and potash.

The first tranche received a positive response, with 56 bids received so far, coal and mines minister Pralhad Joshi had said. He had also stated that Coal India, Vedanta, Jindal Power, and Dalmia Group are among the top bidders for critical minerals launched in the first tranche. Results for the first tranche are anticipated to be released in mid-April.

FE had earlier reported that the country’s largest coal mining company is looking to foray into critical minerals and had identified some lithium blocks in Australia, Chile, and Argentina.

“We are going to set up an office in Australia and we are in touch with the ministry of mines,” B Veera Reddy, Coal India’s director (Technical) had earlier said.

The government aims to focus on both domestic exploration and overseas sourcing of critical minerals, particularly lithium, cobalt, copper, and rare earth elements.

“The ministry of coal is looking into critical minerals for enhancing India’s critical and strategic mineral supply while aligning with global fossil fuel transition goals set at COP28,” the government had said.