Coal India Plans Chile Unit For Lithium And Copper
Coal India Ltd’s board has approved the creation of a wholly-owned intermediate holding company in Chile to pursue exploration and development of critical minerals such as lithium and copper, marking a significant diversification beyond its traditional coal-centric operations. The move aligns with India’s broader push to secure strategic raw materials necessary for energy transition, manufacturing and urban infrastructure supply chains, subject to regulatory approvals from India’s investment and coal ministries.
The Chile initiative is rooted in the country’s status as a global hub for lithium — a key component in batteries for electric vehicles and grid storage — and copper, essential in electrical infrastructure and power systems. A free trade agreement between India and Chile, nearing conclusion, is expected to facilitate access to these resources and provide structural support for future bilateral industrial cooperation.Officials have framed the overseas holding company as a strategic platform through which Coal India could engage in mineral exploration or joint ventures, though detailed project plans and capital commitments for the Chile operation are yet to be finalised. Regulatory filings note the company will hold 100 per cent equity in the new entity, but incorporation is contingent on approvals from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal.
Strategic minerals like lithium and copper are central to government agendas on electrification and urban infrastructure modernisation. Lithium’s role in battery storage links directly to city-scale energy resilience plans and decarbonisation targets, while copper is indispensable for power grids, e-mobility systems and smart city installations. Urban planners and industry strategists say securing long-term supplies of both minerals can help mitigate supply chain disruptions and reduce external dependencies.Coal India’s pivot abroad reflects broader shifts in the role of public sector enterprises as India grapples with energy transition imperatives. Moving into critical minerals positions the company to support domestic industrial ecosystems that increasingly rely on electrification and renewable technologies. Experts highlight that such diversification, if executed responsibly, can create synergies with India’s ambitions to build climate-resilient cities, expand electric mobility infrastructure and enhance domestic manufacturing of tech-critical components.
At home, Coal India’s board also approved large capital allocations to diversify its energy and chemicals portfolio, including investments in a coal-to-ammonium nitrate plant in Odisha and equity support for a joint power venture — signalling a multi-pronged strategy that balances traditional energy supply with downstream industrial value-chains.Nevertheless, analysts caution that international mineral ventures carry inherent risks including exploration uncertainty, regulatory and geopolitical complexity, and environmental stewardship challenges. Operating in foreign jurisdictions requires compliance with local environmental standards and robust community engagement plans, especially in regions where mining activities are closely monitored for social and ecological impacts.
As Coal India moves forward with its Chile plans, urban and industrial stakeholders will be watching how this overseas diversification supports India’s strategic material needs without compromising environmental commitments or local socio-economic priorities.
