India Coal India Wins Rare Earth Block Licence

Coal India Ltd (CIL) has secured a mineral concession licence from the Ministry of Mines for the Kawalapur rare earth elements (REE) block in Maharashtra, marking a notable expansion beyond its core coal mining business into critical minerals considered essential for modern technology and clean energy supply chains. The licence, valid for five years, reflects India’s evolving resource strategy amid ballooning demand for rare earths used in electric vehicles, renewable energy systems and defence applications. 

Under the Mines and Minerals (Development and Regulation) Act, 1957, this concession licence authorises Coal India to explore and potentially develop the Kawalapur block, an area believed to hold commercially significant deposits of rare earth minerals — a cluster of elements vital for high-performance magnets, batteries and electronics. While CIL’s traditional mandate centres on thermal coal for power and industrial use, the move into rare earth mining signals a strategic pivot toward commodities with higher long-term value and strategic relevance. Urban planners and industrial analysts view this development through dual lenses: industrial diversification and critical material security. India’s infrastructure build-out — from metro networks and electric vehicle roll-outs to solar and wind energy projects — depends on reliable access to these inputs. Historically, China has dominated global rare earth supply and processing, leaving India highly dependent on imports and exposed to geopolitical fragilities. Building domestic mining capability could help mitigate such risks and support local manufacturing ecosystems. 

Coal India’s licence for the Kawalapur block dovetails with the federal government’s broader National Critical Mineral Mission, aimed at bolstering exploration, processing and value-chain development for strategic minerals. Under this mission, India has auctioned several blocks and inked collaboration agreements between state mining firms to expand rare earth exploration and beneficiation capacity. This cluster of policy initiatives reflects a concerted effort to reduce import dependence for components critical to future-facing industries — including defence, aerospace, and clean energy technologies. Yet, challenges remain. India ranks among the world’s largest holders of rare earth reserves, but production and processing capacity lag significantly, constrained by regulatory complexities and technical barriers. Most rare earth deposits in India exist in mixed ores, complicating extraction and requiring advanced beneficiation infrastructure. Moreover, while the Kawalapur licence grants access for exploration and assessment, commercial viability hinges on subsequent findings about ore quality, processing costs and environmental clearances. 

From a real estate and built-environment perspective, assured availability of strategic minerals underpins critical sectors tied to urban expansion and decarbonisation. For example, the adoption of EVs and renewables in cities depends on magnets and battery components that require rare earths. Without secure domestic sources, project developers face input volatility that can inflate costs and delay timelines. Strengthening India’s rare earth value chain could therefore enhance resilience for infrastructure and technology projects that shape urban futures. 

Coal India’s entry into the rare earth segment reflects a broader trend where legacy resource companies diversify into critical commodities to align with global industrial shifts. For policymakers and investors, the progress of Kawalapur and similar blocks will offer early signals about India’s ability to build a homegrown rare earth sector — a key element of its strategic autonomy and sustainable development agenda.

Also Read: Coal India Strengthens Production Oversight At Gevra Mine

India Coal India Wins Rare Earth Block Licence