Coal India bags first critical mineral asset

Last Updated24/07/2024

State-owned Coal India on Monday said it has bagged the first critical mineral asset, a graphite block, in Madhya Pradesh. Owning a graphite asset will give Coal India an advantage in powering green energy transition momentum to an extent, according to a statement.

“Coal India Ltd. (CIL) has successfully opened its account in a domestic critical mineral asset emerging as the preferred bidder for Khattali Chotti graphite block in Alirajpur district of Madhya Pradesh,” the PSU said in the statement.
The company accounts for more than 80% of domestic coal output.
“This was under tranche two forward auctions held on 9th July by the Ministry of Mines,” it said.
The company won the bid quoting a mining premium of 150.05% of the value of mineral despatch. Further, a composite licence will be issued to CIL in a year after the firm meets the formalities under the notice inviting tender timeline. India imports about 69% of its graphite needs — natural, synthetic and end-use products.
Graphite has its utility as an anode material in lithium-ion battery manufacturing due to its relatively low cost and energy density. With the electric vehicle market and energy storage systems fast gaining traction, where lithium-ion cells are used, graphite has a big market.
The market size for graphite is projected to take a big leap with the absolute demand projected to shoot up at the rate of 25-27% by FY35 from the current level.