Coal India Explores Rare Earth Partnerships in Australia, Russia, Africa

India’s largest coal producer is widening its strategic ambitions beyond fossil fuels, with Coal India Ltd scouting partnerships in rare earth mining across Australia, Russia, Argentina, Chile and several African nations, as New Delhi steps up efforts to loosen China’s grip on critical mineral supply chains.

The move follows China’s decision late last year to expand export curbs on rare earth minerals—materials essential for industries ranging from automobiles and electronics to renewable energy—prompting fresh concerns in import-dependent economies such as India.

“In our country and in foreign countries also, we are going to invest, explore and collaborate with other companies for rare earth metals. It is at a starting stage,” said Manoj Kumar Agarwal, Chairman and Managing Director of Bharat Coking Coal Ltd, in an interview.

Coal India is evaluating both overseas and domestic opportunities, Agarwal said. Within India, the miner is looking to collaborate with state-backed entities including Indian Rare Earths Limited, Khanij Bidesh India Ltd, and Hindustan Copper Ltd.

IPO funds to back overseas push

The proposed partnerships will be financed using proceeds from BCCL’s $119 million initial public offering, which closed on Tuesday after being oversubscribed nearly 147 times. The offering comprised only existing shares, with no fresh equity issuance, and the company is scheduled to list on Monday.

Alongside rare earths, BCCL is also eyeing acquisitions of coking coal mines in Australia and Russia within the next two to three years, Agarwal said, underscoring the company’s intent to secure long-term raw material supplies.

Capacity expansion amid infrastructure boom

BCCL plans to raise its coking coal production capacity to 56 million tonnes per annum by fiscal 2030, from 40.5 million tonnes at the end of fiscal 2025. The expansion comes as investors bet on sustained demand driven by India’s infrastructure push, which relies heavily on steel production.

Coking coal remains a critical input for steelmaking, and analysts see BCCL as well positioned to benefit from rising domestic consumption. The foray into rare earths, meanwhile, signals a broader strategic shift, one that aligns Coal India with India’s emerging critical minerals agenda at a time of intensifying global competition for supply.