Coal India Ltd. (CIL) and IREL (India) Ltd. signed a non-binding Memorandum of Understanding (MoU) to collaborate on the development of critical minerals. The agreement underscores their shared commitment to promoting mineral sands and rare earth elements.
Focus on Critical Mineral Assets
The MoU outlines plans to jointly develop and manage critical mineral assets. Both companies aim to acquire assets, secure raw materials domestically and internationally, and enhance mining, extraction, and refining capabilities.
The initiative aligns with CIL’s strategy to reduce India’s reliance on imports for critical minerals such as lithium and cobalt.
Supporting Clean Energy Goals
CIL Chairman P.M. Prasad has consistently highlighted the importance of acquiring mineral assets to support India’s transition to clean energy.
He emphasized that securing these resources, both within the country and abroad, is crucial for achieving energy independence and meeting sustainability targets.
Critical Mineral Mission in Focus
The Indian government’s Union Budget 2024-25 introduced the Critical Mineral Mission, which aims to expand domestic production, boost recycling, and incentivize the acquisition of mineral assets.
The initiative provides a strategic framework for partnerships like the one between CIL and IREL.
Strengthening Domestic Capabilities
India possesses significant potential in producing rare earth elements, an area where IREL has been working toward self-sufficiency in mining, processing, and refining.
By leveraging these capabilities, the partnership aims to position India as a competitive player in the global critical minerals market.
Reducing Dependence on China
Currently, China dominates the critical minerals sector, controlling a major share of the global supply chain.
Through the collaboration, CIL and IREL aim to bolster India’s capabilities and reduce dependence on Chinese imports, ensuring a more secure and sustainable supply chain for the nation’s industrial and energy needs.
As reported by ndtvprofit.com, the partnership represents a vital step toward India’s aspirations to become a global leader in critical minerals.
