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Informist, Thursday, Sep 5, 2024

 

NEW DELHI – Coal India Ltd has identified seven critical minerals – lithium, nickel, cobalt, molybdenum, graphite, phosphorus and potash - as part of its diversification plan, Director of Business Development Debasish Nanda said today. While looking at opportunities in India, Coal India is also looking at Argentina, Bolivia, and Chile for acquiring lithium mines. 

 

"We are also looking at Australia for mining of lithium and nickel and are also searching parts of Africa for diversification," Nanda said at the BloombergNEF Summit. 

 

"We are looking at many countries and are at various stages of dialogue," he said, adding that Coal India will likely make an announcement regarding offshore mining of a non-coal mineral. He did not divulge details as part of protocol. 

 

If the offshore lithium mining plan sees the light of day, it could help India's lithium battery manufacturers such as Exide Industries Ltd and Amara Raja Energy Mobility Ltd secure raw material supply.

 

The government has asked state-owned Coal India, NMDC, and ONGC Videsh to actively scout for critical mineral assets overseas. Such minerals include lithium, cobalt, copper, graphite, gallium, and others used in technology-intensive sectors.

 

Argentina's lithium reserves are estimated at 19 mln tn, accounting for 20% of the world's overall lithium reserves of 98 mln tn. Bolivia holds the largest reserves, estimated at 23 mln tn, and Chile's estimated reserves of 9.3 mln tn are the third-largest. China accounts for 41% of Argentina's total lithium exports and Japan accounts for another 31%. South Korea accounts for 13% and the US 9%.

 

In 2023-24 (Apr-Mar), India imported 117,381 tn of lithium. The country's import bill for the metal was $33.4 mln. The imports were mainly from trading companies in Southeast Asia and China. There were no imports from Argentina, Bolivia or Chile.

 

Although lithium ore was recently discovered in India, companies are unwilling to venture into exploration. 

 

Nanda said Coal India had recently acquired a graphite route in Madhya Pradesh through an auction held by the Ministry of Mines. "This shows our intention and how positively we are thinking about acquiring non-coal mines."

 

Speaking about solar energy, Nanda said 5 GW of solar energy is needed for the state-owned company to achieve net-zero by 2030. He, however, added that the target will be achieved by 2028-29. 

 

India has set an ambitious goal of achieving net-zero carbon emissions by 2070. To enhance renewable energy capacity, the government has set a net-zero electricity consumption plan for coal and lignite public sector undertakings. 

 

Nanda said Coal India has identified four states--Maharashtra, Rajasthan, Gujarat, and Karnataka, which will contribute to 50% of India's demand for solar energy. "We are signing joint venture agreements with state governments so that we put solar panels, or we get the solar panels and give it to them," he added. End

 

Reported by Priyasmita Dutta and Afra Abubacker

Edited by Vidhi Verma

 

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