BENGALURU/NEW DELHI: Coal India is scouting partnership opportunities in rare-earth mining across Australia, Russia, Argentina, Chile and several African countries, a top executive of its coking coal-focussed unit said on Thursday, as New Delhi looks to reduce reliance on China-dominated supply chains.
The move comes after top producer China expanded export curbs on rare-earth minerals late last year, threatening operations in sectors from autos to electronics that depend on the critical materials.
“In our country and in foreign countries also, we are going to invest; we are going to explore; we are also collaborating with other companies for rare earth metals. It is in the starting stage,” Bharat Coking Coal Ltd Chairman and Managing Director Manoj Kumar Agarwal told Reuters in an interview.
Coal India is pursuing both overseas and local opportunities in this regard, and domestically aims to collaborate with state-run IREL, Khanij Bidesh India Ltd and Hindustan Copper, Agarwal said.
Coal India opens up auctions to buyers from Bangladesh, Nepal and Bhutan
The partnerships will be funded using proceeds from BCCL’s $119 million initial public offering, which closed Tuesday after being oversubscribed nearly 147 times. The company, whose offering comprised only existing shares with no new issuance, is set to list Monday.
BCCL also plans to acquire coking coal mines in Australia and Russia within the next two to three years, Agarwal added.
The company aims to raise its coking coal production capacity to 56 million tonnes per annum by fiscal 2030, up from 40.5 MTPA at the end of fiscal 2025, he added.
Investors are betting BCCL will benefit from India’s infrastructure push, which requires steel as a pivotal industrial raw material. Coking coal is a key steel-making ingredient.
American Dollar Exchange Rate