New Delhi: In a major step toward its strategic diversification, Coal India Limited (CIL) has been declared the preferred bidder for the Ontillu-Chandragiri Rare Earth Element (REE) exploration block in Andhra Pradesh by the Ministry of Mines.
Spread across 209.62 square kilometres, the block was awarded under a tender issued on March 30, 2025, marking a significant milestone in the Maharatna company’s foray into the exploration of critical and rare earth minerals.
The company informed stock exchanges that the exploration licence deed is to be executed within one year from the issuance of the Letter of Intent by the Andhra Pradesh state government.
CIL’s Push Toward Clean Energy Minerals
This move is part of Coal India’s broader strategy to diversify beyond fossil fuels and into minerals vital for clean energy technologies. Rare earth elements play a key role in the manufacturing of electric vehicles (EVs), renewable energy systems, semiconductors, and defence technologies.
“These initiatives mark CIL’s entry into the exploration of rare earth and critical minerals, which are vital for clean energy technologies and advanced manufacturing,” a senior company official said.
Earlier this year, CIL had also secured a graphite and vanadium block during the fifth round of critical mineral auctions held in May, reinforcing its commitment to support India’s Atmanirbhar Bharat vision in the critical minerals space.
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Strategic Shift from Coal to Critical Minerals
As the world’s largest coal producer, CIL’s expansion into the exploration of rare earths and critical minerals marks a paradigm shift. The move aligns with India’s national goal to reduce import dependency and build a resilient supply chain for minerals necessary for the energy transition.
The initiative also places CIL alongside other state-run enterprises and global mining companies pivoting toward future-facing minerals, as demand for clean energy and digital infrastructure accelerates.
About CIL
Coal India Limited (CIL) is India’s state-owned coal mining enterprise, founded in 1975, and is currently the world’s largest coal producer. As a Maharatna public sector company under the Ministry of Coal, CIL plays a crucial role in India’s energy security by supplying a significant portion of the country’s coal. The company operates numerous mines across eight Indian states, manages several subsidiary companies, and has a vision to achieve sustainable growth as a global energy leader.
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