Coal India Ventures into Non-Coal Mineral Mining with New Graphite Project.

Coal India Limited (CIL) is set to diversify its operations beyond coal, following an order from the Ministry of Mines granting the company a composite license for prospecting and mining graphite. The license pertains to the Khattali Chhoti Graphite Block in Alirajpur, Madhya Pradesh.

"This is the first mineral other than coal for us," said Debasish Nanda, Director of Business Development at Coal India, in an interview with PTI.

CIL will be required to pay a mining premium of 150.05 percent of the value of minerals dispatched to the state government. The company has announced a timeline of one year for the grant of the composite license and three years for the execution of the mining lease deed. Currently, the project is in a very preliminary phase and requires further exploration.

In alignment with the government's Atmanirbharta vision, Coal India has formed a special team to focus on other critical minerals both globally and within India. Graphite, which has multiple applications including use in batteries, is a key area of focus amid the ongoing EV revolution in India.

Nanda mentioned that it is too early to estimate the capital expenditure for the project. However, Coal India will leverage its coal mining expertise from its subsidiary Central Mine Planning & Design Institute Limited (CMPDI) during the initial phase.

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