Coal India Expands Global Footprint, Clears Chile Minerals Arm and Rs 6,300 Cr Capex

Coal India Ltd (CIL) on Wednesday approved the formation of an intermediate holding company in Chile to explore opportunities in critical minerals such as lithium and copper , marking a strategic push beyond coal as India looks to secure key resources for its clean energy transition.

The state-owned miner said it would hold 100 per cent equity in the proposed Chilean entity, subject to regulatory clearances from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal . The move comes as India and Chile near the conclusion of a free trade agreement (FTA) , which is expected to improve access for Indian companies to critical mineral supplies.

Chile is among the world’s leading producers of lithium and copper, and also holds significant reserves of rhenium, molybdenum and cobalt and materials essential for industries such as electronics, automobiles and solar energy.

In a separate regulatory filing, the Coal India board approved an equity infusion of Rs 3,132.96 crore for a proposed energy joint venture with Damodar Valley Corporation (DVC) . The investment forms part of a total indicative project cost of Rs 20,886.40 crore, structured with a 70:30 debt-equity ratio, officials said.

Additionally, the board cleared an investment of Rs 3,189.54 crore in its subsidiary Bharat Coal Gasification and Chemicals Ltd (BCGCL) to fund a coal-to-ammonium nitrate project in Odisha. The project, currently at the pre-implementation stage, will have an annual production capacity of 0.66 million tonnes per annum.

The approvals underline Coal India’s broader diversification strategy, spanning critical minerals, energy partnerships and downstream coal-based chemicals, as it adapts to India’s evolving energy and industrial requirements.