Coal India is seeking rare-earth mining partnerships in Australia, Russia, Argentina, Chile, and several African nations, according to a top executive of its coking coal unit. This move aims to help New Delhi reduce dependence on supply chains dominated by China.
The move follows China’s recent expansion of export restrictions on rare-earth minerals, which has raised concerns for industries such as automotive and electronics that rely heavily on these critical materials.
“In both domestic and international markets, we are planning to invest, explore, and collaborate with other companies in the field of rare earth metals. These initiatives are still in the early stages,” stated Bharat Coking Coal Chairperson and Managing Director Manoj Kumar Agarwal in an interview with Reuters.
Coal India is pursuing opportunities abroad and within India, aiming to work in partnership with state-run organizations such as IREL, Khanij Bidesh India, and Hindustan Copper, according to Agarwal.
These partnerships will be financed using proceeds from BCCL’s $119-million initial public offering, which closed on Tuesday after being oversubscribed nearly 147 times. The offering consisted solely of existing shares without any new issuance, and the company is scheduled to list on Monday.
BCCL also intends to acquire coking coal mines in Australia and Russia over the next two to three years, Agarwal added.
The company targets increasing its annual coking coal production capacity to 56 million tonnes by fiscal year 2030, up from 40.5 million tonnes at the end of fiscal 2025.
Investors are optimistic that BCCL will benefit from India’s infrastructure expansion, which necessitates steel as a crucial industrial raw material. Coking coal remains an essential component in steel manufacturing.