New Delhi: Coal India Limited (CIL) has successfully opened its account in domestic critical mineral asset emerging as the preferred bidder for Khattali Chotti graphite block in Alirajpur district of Madhya Pradesh. “This was under tranche two forward auction held on 9 July by the Ministry of Mines. It would be CIL’s first ever non-coal mineral mining venture,” said the state-run coal miner in a statement on Monday.
CIL won the bid quoting a mining premium of 150.05 percent of the value of mineral despatch, which it would pay to the state of Madhya Pradesh. CIL shall formally receive the letter of intent once it deposits performance security. Composite license shall be issued to CIL in one year after the company meets the formalities under NIT timeline.
The country’s Ministry of Mines had invited bids from potential bidders to participate in the tranche two mineral block auction where CIL under its diversification portfolio won the bid.
“With this, CIL is poised to play a supporting role in critical minerals domestically. Based on five bed rock samples from the Khattali Chhoti block, the fixed carbon ranges from 1.99 percent to 6.50 percent. The total area of the block is nearly 600 hectares,” said the statement. India imports about 69 percent of its graphite needs — natural, synthetic and end-use products. Currently, the graphite mining industry has limited players and this offers space for willing players to venture into this business arena, said CIL.
Graphite has its utility as anode material in lithium-ion battery manufacturing due to its relatively low-cost and energy density. With electric vehicle market and energy storage systems fast gaining traction, where lithium ion cells are used, graphite has a big market.
“Owning a graphite asset will give CIL an edge in powering green energy transition momentum to an extent. The company’s decades of mining experience is yet another advantage. Market size for Graphite is projected to take a big leap with the absolute demand projected to shoot up at the rate of 25-27 percent by FY 2035 from the current level,” said the statement.
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