Graphite block acquisition: CIL ventures into non-coal minerals
In a significant expansion of its mining activities, Coal India Limited (CIL) has ventured into graphite mining by becoming the preferred bidder for the Khattali Chotti graphite block located in Alirajpur district of Madhya Pradesh. This move marks CIL's entry into non-coal mineral mining, aligning with its diversification strategy. The announcement came after the company won the bid at the tranche two forward auction organized by the Ministry of Mines on July 9. CIL has committed to a mining premium of 150.05% over the value of the mineral despatched, which will be paid to the state government of Madhya Pradesh. The firm will officially receive the letter of intent once it completes the necessary formalities, including the deposition of performance security. Subsequently, a composite license is expected to be issued within a year, adhering to the timeline stipulated in the National Invitation to Tender (NIT). The decision to bid for the graphite block is part of a broader initiative by the Ministry of Mines to diversify India's mineral production and reduce import dependency. Graphite is crucial for various industrial applications, particularly in manufacturing lithium-ion batteries, which are pivotal for the burgeoning electric vehicle market and energy storage systems. India currently imports about 69% of its graphite requirements, spanning natural, synthetic, and end-use products. With limited players in the graphite mining industry, CIL's entry could catalyze significant developments in this sector. The Khattali Chotti block, which spans nearly 600 hectares, has shown potential with fixed carbon content ranging from 1.99% to 6.50% based on initial bedrock samples. By leveraging its extensive mining experience, CIL is poised to contribute to India?s green energy transition. The company's move into graphite mining is timely, given the projected increase in the market demand for graphite, which is expected to surge by 25%-27% annually by FY 2035.
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