CMDC is a company in the public sector of the Chhattisgarh government. The agreement marks a strategic step by the CIL – the largest coal producer in the world – because it accelerates efforts to diversify beyond coal and align with India’s growing concentration on securing critical mineral supply chains.
“Coal India Limited (CIL) and Chhattisgarh Mineral Development Corporation Ltd. (CMDC) … have executed a non -binding understanding memorandum for collaboration in exploration and exploitation of critical minerals and other minerals of mutual interest,” said the company in its file.
Part of the cil diversification conduct
The memorandum of understanding follows a series of Coal India movements to develop in non-Charbon mineral exploration, including its recent collaborations with IREL (India) limited for critical mineral development and offers for graphite blocks in Chhattisgarh and Madhya Pradesh.
Critical minerals – such as lithium, cobalt, nickel, graphite and rare earth elements – are essential for the manufacture of batteries, electric vehicles and renewable energy equipment, sectors that should see rapid growth while India pursues its zero net objectives.
The partnership comes as New Delhi intensifies efforts to reduce his dependence on imported critical minerals, in particular China. The government has listed 30 minerals as “criticism” and encourages the participation of the public and private sector in exploration, treatment and recycling.
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