New Delhi: In a significant development for India’s rare earth and mineral sector, Coal India Limited (CIL) announced that it has been awarded a composite licence for the Kawalapur REE and RM block in Maharashtra by the Ministry of Mines. The licence, granted under the Mines and Minerals (Development and Regulation) Act, 1957, allows CIL to explore and prospect for minerals in the designated area.
Details of the Composite Licence
In a regulatory filing to stock exchanges, CIL stated, “The Composite License for Grant of Mineral Concession has been awarded to CIL by the Ministry of Mines, Government of India.” Under the terms of the grant, the mining lease deed will be executed by the Maharashtra state government, and CIL, as the holder of the composite licence, will become the official mining lease holder after a period of five years.
A mineral concession is a legal right that allows companies to explore, prospect, and mine specified minerals within a defined area. This step marks a critical milestone for CIL as it diversifies into rare earth elements and related minerals.
About the Kawalapur REE and RM Block
The Kawalapur REE and RM block is located in Kawalapur village, Ramtek tehsil, Nagpur district, Maharashtra, covering a total area of 398.23 hectares. The block is currently at the G3 (preliminary exploration) stage and has been recommended for the grant of a composite licence. Exploration was carried out by the Geological Survey of India’s Central Region, Maharashtra unit, Nagpur.
The block is estimated to contain 27.95 million tonnes of rare earth elements (REE) with an average grade of 4.35% total REE at a cut-off grade of 1,000 ppm. The mineralisation is largely associated with weathered soil profiles formed by the disintegration of pegmatite rock.
Exploration Findings and Mineral Profile
According to exploration findings, among heavy rare earth elements (HREE), dysprosium, gadolinium, and yttrium are dominant, with yttrium being the most prominent and xenotime identified as the yttrium-bearing mineral.
For light rare earth elements (LREE), lanthanum, cerium, praseodymium, samarium, and neodymium dominate, with cerium being the most abundant and monazite serving as the cerium-bearing phase. These findings highlight the strategic importance of the block for India’s domestic supply of rare earths, crucial for electronics, renewable energy technologies, and advanced manufacturing.
About Coal India Limited
Coal India Limited (CIL) is India’s largest public sector undertaking (PSU) in the coal mining sector and one of the world’s leading coal producers. Headquartered in Kolkata, CIL operates across multiple subsidiaries and regions, engaged in coal exploration, production, and supply for power generation, steel, and other industries. The company plays a pivotal role in India’s energy security while actively exploring diversification into rare earth elements, metallurgical coal, and other strategic minerals to support industrial growth and sustainable development.
