Kolkata: Coal India Limited (CIL) has signed the Exploration Licence Deed for the Ontillu–Chandragiri Rare Earth Element (REE) Exploration Block in Andhra Pradesh, marking a significant step towards expanding the company’s activities into critical mineral exploration.
The exploration block covers 209 square kilometres across Tirupati and Chittoor districts of Andhra Pradesh. The block was auctioned by the Ministry of Mines under Tranche-I of the Exploration Licence auction, in which Coal India emerged as the Preferred Bidder.
Coal India Enters Rare Earth Element Exploration
The signing of the Exploration Licence Deed marks an important development in Coal India’s efforts to explore critical minerals beyond its traditional coal mining operations.
The Ontillu–Chandragiri block has the potential for Rare Earth Elements, which are considered important resources for several advanced and strategic applications.
Key details of the exploration block include:
- Block: Ontillu–Chandragiri Rare Earth Element Exploration Block
- Location: Andhra Pradesh
- Districts: Tirupati and Chittoor
- Area: 209 sq km
- Auctioning authority: Ministry of Mines
- Auction tranche: Tranche-I of the Exploration Licence auction
- Preferred Bidder: Coal India Limited
REEs Critical for Advanced Technologies and Clean Energy
Rare Earth Elements play an important role in a range of modern technologies and clean-energy applications. Their strategic importance has increased as countries seek to strengthen access to critical minerals and reduce vulnerabilities in supply chains.
The exploration of the Ontillu–Chandragiri block is expected to help assess and unlock the potential of these resources in Andhra Pradesh.
REEs are particularly relevant to areas such as:
- Advanced technologies
- Clean energy applications
- Strategic industries
- Critical mineral supply chains
Exploration to Support India’s Critical Mineral Security
Coal India said the exploration initiative will contribute to India’s resource security and self-reliance in critical minerals.
The move comes amid growing importance of critical minerals for emerging technologies, energy transition and strategic applications. Exploration of domestic resources can help improve the understanding of India’s mineral potential and support efforts towards strengthening domestic resource availability.
The Ontillu–Chandragiri exploration block therefore represents a step towards identifying and developing additional domestic sources of Rare Earth Elements.
Ministry of Mines Auctioned Exploration Block
The Ontillu–Chandragiri block was offered through the Exploration Licence auction conducted by the Ministry of Mines under Tranche-I.
Coal India emerged as the Preferred Bidder in the auction before proceeding with the signing of the Exploration Licence Deed.
The execution of the deed enables the company to undertake exploration activities in the 209-sq-km block spread across Tirupati and Chittoor districts.
About Coal India Limited
Coal India Limited (CIL) is a government-owned Maharatna public sector enterprise under the Ministry of Coal, Government of India. It is primarily engaged in coal mining and production and operates through multiple mining subsidiaries across India. The company is also expanding its focus towards areas such as critical minerals and mineral exploration in support of India’s evolving resource and energy requirements.
Read also: Coal India Accelerates Shift From Conventional to Smart Mining With AI, IoT and Advanced Technology
