Coal India Secures REE License For Kawalapur Block
State-owned Coal India Ltd. has crossed a strategic threshold by securing a mineral concession license for the Kawalapur Rare Earth Elements (REE) and associated minerals block, covering nearly 400 hectares, marking a deliberate pivot towards critical minerals that underpin emerging clean-tech and decarbonisation industries. This regulatory milestone reflects deeper shifts in India’s mineral policy and industrial strategy as global demand for REEs intensifies. Coal India rare earth concession could reshape how the company positions itself beyond traditional coal extraction.
The Ministry of Mines has awarded a Composite License for Grant of Mineral Concession to Coal India under the Mines and Minerals (Development and Regulation) Act, 1957. This framework allows the company to undertake exploration and preparatory activities, with a clear roadmap to secure a formal mining lease within five years, contingent on statutory and environmental clearances and execution of a lease deed with the respective state government. Rare earth elements — including neodymium, dysprosium and others — are pivotal to electric vehicles, wind turbines, advanced electronics and defence technologies. India’s evolving industrial vision recognises REEs as strategic assets that reduce reliance on imports and support technology-intensive value chains. In recent critical mineral rounds, Coal India and other public sector partners have won competitive rights to graphite, vanadium and other resources, signalling a broader pivot in national resource strategy.
For Coal India, this development follows earlier steps into non-coal minerals, including its preferred-bidder status for a separate REE block in Andhra Pradesh and successful bids for graphite and vanadium assets under the government’s critical mineral auction rounds. This trajectory underscores a deliberate diversification from thermal coal to minerals central to India’s clean energy transition and industrial autonomy. Analysts say Coal India’s access to the Kawalapur REE block aligns with national priorities to shore up domestic mineral resources. REEs are typically sourced internationally, especially from East Asia, creating supply-chain vulnerabilities for energy and defence sectors. Domestic concession rights can reduce import exposure and encourage downstream value creation in processing and manufacturing. However, operationalising these assets will take sustained investment, technology adoption and partnerships with specialised off-take or processing companies. No international entities participated in the concession award, ensuring compliance with governance norms.
From an economic perspective, REE mining is capital-intensive and requires advanced beneficiation and separation technologies to yield usable materials. India’s ecosystem for REE processing remains nascent; most domestic projects will need technological partnerships and investment to move from raw concession to refined output. Industry planners note that public sector players like Coal India and IREL (India) Ltd have already discussed collaborations, hinting at possible integrated approaches to critical mineral development. Environmental and community considerations will also shape execution, especially as mining activities extend beyond traditional coal belts. Ecology advisors emphasise rigorous environmental impact assessments, community engagement, and sustainable rehabilitation plans to align critical mineral extraction with climate and social standards. Transparent compliance with environmental and land-use norms will be essential as Coal India transitions into this strategic domain.
In the coming years, Coal India’s entry into rare earth mining could signal a broader transformation: from a single-commodity behemoth to a diversified mining entity at the heart of India’s infrastructure and clean-technology ambitions. Success will depend on regulatory execution, technological investment and a market environment that values strategic resource independence.
