PMO nudges CIL to invest in critical minerals in Australia: Outgoing CMD

Coal India's outgoing CMD says PMO has asked the miner to invest in Australian critical minerals, terming diversification beyond coal a potential game changer for the PSU

Coal India Ltd (CIL) is intensifying its diversification beyond coal, and is pushing ahead with plans to invest in overseas critical mineral assets, outgoing Chairman and Managing Director (CMD) PM Prasad said.

 

He called the move a “game changer” for the state-run miner.

 

“Many companies worldwide are entering into critical minerals. We are also searching. Our teams have gone to Argentina and their ministers have also come here. We were told recently that in Australia, hand holding will be done by the Prime Minister's Office (PMO),” Prasad said in an address at the company's foundation day ceremony on Friday, his final day in office.

 

 

He said Shaktikanta Das, principal secretary to the Prime Minister, recently conducted a meeting on the Australia plan.

 

It was attended by Prasad along with coal ministry's additional secretary Sanoj Kumar Jha.

 

“There is a clear direction from the principal secretary to the Prime Minister that we should go and invest in Australia. One or two mines have already been identified, and due diligence is going on. A breakthrough is needed. It can happen any time,” the outgoing CMD said.

 

Prasad retired on Friday, and Jha will take over as CMD until B Sairam, currently CMD of Northern Coalfields Ltd (NCL), formally assumes charge at CIL. Sairam’s selection was approved by the Public Enterprises Selection Board (PESB) last month. 

 

Prasad said Coal India’s teams have also been exploring assets in other countries. 

 

“I am very hopeful. Yesterday (Thursday), there was a minister from Western Australia (at an event) who said there are opportunities for critical minerals. We have to see what the best options are,” he added.

 

CIL is on the lookout for critical minerals assets, including lithium, graphite, cobalt, nickel and rare earths. However, the company's decision-making process needs to improve if it has to pursue diversification and not lose opportunities to private players who move fast while making decisions, Prasad said. 

 

Coal India has also made early moves in critical minerals exploration within India. It had in June signed an MoU with Hindustan Copper to collaborate in copper and critical minerals. The company recently emerged as the prefered bidder for the Oranga Revatipur Graphite and Vanadium block in Chhattisgarh. It has also been declared preferred bidder for the Khattali Chhoti Graphite block in Madhya Pradesh.

 

"The MoU in Chhattisgarh is already done. We have got one rare earth exploration block in Andhra Pradesh too,” he said, adding that the company will continue to participate in critical mineral exploration in India and abroad. India's economy will continue to use coal for at least two decades but CIL must prepare for the long-term energy transition and business diversification, according to Prasad.