Coal India Enters Critical Minerals as Diversification Strategy Gathers Pace

Coal India Limited (CIL) is expanding beyond conventional coal mining into energy, minerals, advanced materials and technology-driven businesses, with a growing portfolio spanning coal gasification, power generation, renewable energy, battery storage and critical minerals, according to an official statement issued on Sunday.

The company’s diversification strategy is centred on five interconnected platforms — coal gasification and coal-to-chemicals, thermal power, renewable energy and storage, critical minerals and advanced materials, and diversified minerals including iron ore, the statement said.

CIL’s portfolio already includes projects of significant scale, including investments of approximately Rs 69,346 crore across four coal-to-chemicals initiatives, a 2x800 MW ultra-supercritical expansion at Chandrapura, around 550 MW of commissioned solar capacity, grid-scale Battery Energy Storage System (BESS) projects and opportunities in critical minerals and downstream materials.

Coal gasification converts coal into synthesis gas, or syngas, which can be used to produce products such as synthetic natural gas (SNG), ammonia, urea, ammonium nitrate and methanol. The technology can help derive greater chemical value from coal while supporting import substitution.

CIL’s four major coal-to-chemicals projects include Talcher Fertilisers Ltd., Bharat Coal Gasification & Chemicals Ltd., Coal Gas India Ltd. and the CIL-BPCL Chandrapur coal-to-SNG initiative.

The company is focusing on technologies suited to India’s high-ash coal, along with process optimisation, localisation of critical equipment, advanced process controls and digital twins. It is also working on predictive maintenance and improved management of water, ash and emissions.

CIL said replication of coal-to-chemicals projects would be considered only after operating data and commercial performance have been validated.

The company is also exploring underground coal gasification (UCG), which could provide a route to convert deep-seated or otherwise unmineable coal into syngas. Since UCG has not yet achieved global commercial-scale validation, CIL is pursuing a phased pilot project at the Kasta West Block of Eastern Coalfields Limited (ECL).

In the power sector, CIL and Damodar Valley Corporation (DVC) are implementing a 2x800 MW ultra-supercritical brownfield expansion at Chandrapura in Jharkhand through a proposed 50:50 joint venture. DVC will facilitate the sale of the generated power.

The project’s focus areas include high-efficiency power generation, predictive maintenance, flexible plant operations, emission controls, water recycling and scientific utilisation of ash.

CIL is also increasing its renewable-energy footprint. Around 550 MW of solar capacity has already been commissioned, while additional rooftop, ground-mounted, captive, interstate and market-linked projects are under development.

The company is pursuing both captive solar projects, aimed at reducing electricity costs and carbon emissions, and utility-scale projects for commercial renewable-power generation.

CIL is further developing a 20 MW AC grid-connected floating solar project at Chilwa Taal in Gorakhpur. Floating solar installations can provide a land-efficient option for suitable water bodies.

Alongside renewable generation, CIL is developing Battery Energy Storage Systems to support renewable-energy integration, peak-demand management, grid flexibility and more efficient use of transmission infrastructure.

Its BESS initiatives include the TGGENCO Choutuppal project in Telangana and an Odisha portfolio of 80 MW/320 MWh spread across four locations, with a four-hour storage duration.

CIL is also pursuing opportunities in critical minerals, which are increasingly important for batteries, electric vehicles, renewable-energy systems, electronics, advanced manufacturing, aerospace and defence.

According to the statement, domestic opportunities being explored by CIL include graphite assets in Madhya Pradesh and Chhattisgarh, along with rare earth element (REE) and rare-metal opportunities in Andhra Pradesh and Maharashtra.

The diversification marks a broader shift in CIL’s business portfolio, with the company seeking to leverage its existing capabilities while expanding into emerging energy and materials sectors.