Coal India, a major player in the global mining sector, is setting its sights on Chile as it seeks to expand its operations into critical and rare earth minerals.
Following its successful venture into Australia, Coal India is now directing its efforts towards exploring and mining critical minerals in Chile, a significant hub for such resources. The move comes as part of Coal India’s strategic initiative to diversify its resource portfolio and tap into the growing demand for critical minerals worldwide. With Chile being the largest supplier of copper and the second-largest producer of lithium, it presents a lucrative opportunity for Coal India to capitalise on the burgeoning market for electric vehicle batteries and other high-tech applications.
An unnamed official source revealed that Coal India plans to dispatch a dedicated team to Chile for exploration purposes. This move underscores the company’s commitment to exploring various minerals, including copper, nickel, lithium, and others, in its pursuit of global resource acquisition. India’s push to secure critical minerals aligns with its developmental objectives and aims to reduce import dependency. To facilitate this, the government has introduced legislative reforms, such as the Mines and Minerals (Development & Regulation) Amendment Bill, 2023, to encourage exploration and extraction of deep-seated and critical minerals. Coal India’s foray into critical minerals is part of a larger trend in India’s mining sector, with both public and private players showing keen interest in acquiring such resources. The government’s auction of critical mineral blocks has attracted bids from prominent players like Vedanta, Jindal Power, and Dalmia Group, signalling a growing appetite for diversification within the industry. In addition to its international ventures, Coal India has been actively expanding its domestic operations, with a focus on diversification projects including solar initiatives, joint ventures, washeries, and exploration projects. The company’s capital expenditure for the fiscal year 2023-24 witnessed a 6.5% increase compared to the previous year, reflecting its continued commitment to growth and diversification initiatives.
