What's Happening?
Coal India is actively seeking partnerships in rare-earth mining across Australia, Russia, Argentina, Chile, and several African countries. This initiative is part of India's strategy to reduce reliance
on China-dominated supply chains for critical materials. The move follows China's expansion of export curbs on rare-earth minerals, which are essential for sectors like automotive and electronics. Bharat Coking Coal, a unit of Coal India, is spearheading these efforts and plans to collaborate with state-run entities like IREL, Khanij Bidesh India, and Hindustan Copper. The funding for these partnerships will come from Bharat Coking Coal's recent $119-million IPO, which was oversubscribed. The company also aims to increase its coking coal production capacity significantly by 2030.
Why It's Important?
The diversification of rare-earth supply chains is crucial for India to secure its industrial and technological sectors against geopolitical risks. By reducing dependency on China, India aims to stabilize its supply of critical materials necessary for manufacturing and technology development. This move could also enhance India's position in the global market for rare-earth elements, potentially leading to economic growth and increased industrial output. The partnerships and increased production capacity could benefit India's infrastructure projects, which rely heavily on steel, a product of coking coal.
What's Next?
Coal India plans to continue exploring both domestic and international opportunities in rare-earth mining. The company is expected to finalize partnerships and begin operations in the identified regions. Additionally, Bharat Coking Coal's listing on the stock exchange will provide further capital for these ventures. The success of these initiatives could prompt other Indian companies to pursue similar strategies, potentially leading to a broader shift in India's approach to securing critical materials.
