The license granted by the Ministry of Mines pertains to the Khattali Chhoti Graphite Block located in Alirajpur, Madhya Pradesh. This block is part of a broader initiative by the state, which recently invited tenders for the auction of 51 mineral blocks, including those for graphite and other critical minerals essential for India's clean energy push.
Debasish Nanda, Director of Business Development at Coal India, highlighted that this is the company's first foray into mining a mineral other than coal. The project is in its preliminary stages, requiring further exploration and development. Coal India will leverage the expertise of its subsidiary, the Central Mine Planning & Design Institute Limited (CMPDI), during the initial phases of this project.
The strategic move into graphite mining comes at a time when the demand for graphite is surging, particularly due to its use in batteries, which are crucial for electric vehicles (EVs). This diversification is expected to bolster India's supply of key materials needed for the EV industry and other high-tech applications.
Coal India has committed to paying a mining premium of 150.05% of the value of the minerals dispatched to the state government. The timeline for the project includes one year for the grant of the composite license and three years for the execution of the mining lease deed. The company's decision to diversify is part of a larger strategy to focus on other critical minerals both domestically and globally.
The government's emphasis on mineral self-sufficiency and the ongoing EV revolution in India underscore the importance of this project. By entering the graphite market, Coal India is positioning itself to contribute significantly to the country's industrial and technological advancement.
This initiative not only represents a significant shift in Coal India's operational strategy but also aligns with the broader national goals of enhancing resource security and supporting sustainable development. As the project progresses, it is poised to play a crucial role in meeting the growing domestic demand for graphite and other critical minerals.