Coal Indias Rare Earth strategy: Boosting mineral security, reducing China dependence
India is strategically shifting its rare earth mineral procurement. Coal India, through BCCL, is actively seeking global mining partnerships in countries like Australia and Russia, and enhancing domestic exploration. This proactive approach aims to build a secure, independent supply chain, crucial for modern technology and defense, while significantly reducing reliance on China's dominance in critical mineral exports.
New Delhi: The world is slowly turning to minerals without which modern technology cannot work. These are called rare earth minerals. They play an important role in making mobile phones, electric vehicles, solar panels, wind power, defence equipment and semiconductors. So far, China has dominated the global supply of these minerals. Last year, China increased the strictness of its export of rare earth minerals, which threatened the industrial supply chain of many countries.
In such a situation, India is changing its strategy. Now instead of relying only on imports, India wants to access these important minerals through its own mining and partnership. In this direction, Bharat Coking Coal Limited, a subsidiary of Coal India, has taken a big step. The company is now exploring partnerships in rare earth mining in many countries including Australia, Russia and Africa.
Coal India's new global quest
Bharat Coking Coal Limited, a subsidiary of Coal India, is considering investment and partnership in the mining of rare earth minerals abroad. Company Chairman and Managing Director Manoj Kumar Agarwal said that negotiations are going on at the initial level. The company is exploring opportunities in Australia, Russia, Argentina, Chile and many African countries. The motive is clear that India has to reduce its dependence on China and build its own secure supply chain.
Along with foreign countries, Coal India will also work with government companies for rare earth mining in India. For this, cooperation will be made with IREL, Khanij Bidesh India Limited and Hindustan Copper. The benefit of this will be that India will be able to make better use of its own resources and foreign dependence will decrease.
Recently, BCCL's $119 million IPO was opened, which garnered record subscription. This issue was oversubscribed about 147 times. Now the company will use this money for rare earth mining and new projects. The company is going to be listed in the stock market next week.
Reducing China Dependency in Critical Mineral Supply
Apart from Rare Earth, BCCL is also planning to purchase coking coal mines in Australia and Russia. The deal is expected to be completed in the next two to three years. The company's target is to increase its coking coal production capacity from 40.5 million tonnes to 56 million tonnes per year by the year 2030.
Roads, railways, bridges, metro and big industrial projects are being built fast in India. This requires a lot of steel. Coking coal is the main raw material for making steel. So investors are assuming that BCCL will benefit greatly from building this growing infrastructure. This initiative of Coal India is not only business but also strategic. This will strengthen India's mineral security, reduce dependence on China and increase the country's industrial capacity.