India's state-owned producer Coal India (CIL) has set up a Singapore subsidiary to explore global opportunities in critical minerals with an intent to diversify beyond its traditional coal mining business.
The subsidiary, CIL Global, was incorporated on 24 August to facilitate the acquisition of assets and manage overseas investments, CIL announced.
CIL aims to venture into mineral resources that are essential for clean energy technologies and industrial growth, it said in its recently released annual report for the April 2025-March 2026 fiscal year.
CIL is the country's largest coal producer, accounting for almost 75pc of total annual output of 1.04bn t. It has large cash reserves to adequately invest in potential acquisition opportunities. It had 86.2bn rupees ($900mn) in cash and cash equivalent and another Rs439bn in bank balances as of 31 March 2026, according to its annual report.
"CIL has succeeded in reducing India's coal imports and it has an opportunity to do something in the critical minerals space," Anil Kumar Jha, former chairman of Coal India, told Argus. "India is importing 96pc of its critical mineral needs and this model cannot last for long in a rapidly changing world. We need to act towards becoming self-reliant. India needs to act and secure assets outside."
Jha also stressed that there is an opportunity to make more money in the processing and value addition of minerals instead of just producing and selling coal.
India remains heavily reliant on imports for critical minerals including lithium, cobalt and rare earths, with domestic output projected to cover only around 10pc of annual demand by 2031. CIL's initiative aligns with India's National Critical Mineral Mission, which targets the acquisition of 50 overseas critical mineral assets by March 2031. The mission was launched in January 2025 with an outlay of Rs343bn over seven years, targeting 1,200 exploration projects and auctioning more than 100 critical mineral blocks.
CIL earlier inked a partnership with Indian state-owned producer Hindustan Copper in 2025 to explore opportunities in the domestic critical minerals space. It also entered an agreement with the state-owned Chhattisgarh Mineral Development last year to collaborate in exploration and development of critical minerals. The company also secured a rare earth elements block in the western state of Maharashtra early this year.
CIL is also investing in renewable and coal-fired power generation business, coal gasification and fertilisers, in a move to diversify.
