In a significant milestone, Coal India Limited (CIL) has successfully ventured into the domestic critical mineral sector by emerging as the preferred bidder for the Khattali Chotti graphite block in Alirajpur district of Madhya Pradesh. This achievement marks CIL’s first non-coal mineral mining venture, following the tranche two forward auction held on July 9 by the Ministry of Mines.
CIL won the bid by quoting a mining premium of 150.05 percent of the value of mineral dispatch, which it will pay to the State of Madhya Pradesh. The company is set to formally receive the letter of intent after depositing performance security. A composite license will be issued to CIL within a year, pending completion of formalities under the Notice Inviting Tender (NIT) timeline.
The Ministry of Mines had invited bids from potential participants for the tranche two mineral block auction, where CIL, under its diversification portfolio, successfully secured the bid. This move positions CIL to play a supporting role in the domestic critical minerals sector. Based on five bedrock samples from the Khattali Chhoti block, the fixed carbon content ranges from 1.99% to 6.50%. The total area of the block is nearly 600 hectares.
India currently imports about 69% of its graphite needs, encompassing natural, synthetic, and end-use products. The limited number of players in the graphite mining industry provides opportunities for new entrants. Graphite is crucial 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 rapidly gaining traction, the demand for lithium-ion cells—and consequently graphite—is expected to rise.
Owning a graphite asset will give CIL an advantage in supporting the green energy transition. The company’s decades of mining experience further bolster its capabilities in this new venture. The market size for graphite is projected to expand significantly, with absolute demand expected to increase at a rate of 25%-27% by FY 2035 from current levels.
This development highlights CIL’s strategic move to diversify its portfolio and contribute to India’s critical mineral resources, supporting the nation’s growing energy and technological needs.
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