Coal India Limited (CIL) is diversifying its operations beyond coal for the first time by entering the graphite mining sector. The Ministry of Mines has granted CIL a composite license for both prospecting and mining at the Khattali Chhoti Graphite Block in Alirajpur, Madhya Pradesh.
“This marks our initial foray into minerals other than coal,” Debasish Nanda, Director of Business Development at Coal India, told PTI.
Under the new license, CIL will be required to pay a mining premium of 150.05% of the value of the minerals dispatched to the state government. The company has one year to secure the composite license and three years to finalize the mining lease deed.
In line with the government’s Atmanirbharta vision, Coal India has established a dedicated team to explore critical minerals both domestically and internationally. Graphite, which is crucial for battery production and the ongoing electric vehicle (EV) revolution in India, is a key focus area.
Nanda noted that it is too early to provide an estimate for the capital expenditure of the project. However, Coal India plans to utilize its coal mining expertise, drawing on the experience of its subsidiary, Central Mine Planning & Design Institute Limited (CMPDI), during the initial stages of the project.
