The board of Coal India Ltd (CIL) has sanctioned the establishment of an intermediate holding company in Chile aimed at exploring opportunities in critical minerals, including lithium and copper.
This strategic move coincides with ongoing negotiations between India and Chile to finalize a free trade agreement (FTA), which is expected to enhance access to vital minerals for Indian businesses.
Commerce and Industry Minister Piyush Goyal recently indicated that discussions regarding the FTA would conclude soon, highlighting the potential benefits of increased access to essential resources for domestic industries. Chile, rich in lithium, copper, rhenium, molybdenum, and cobalt, plays a crucial role in supplying materials for electronics, automotive, and solar energy sectors.
Formation of Intermediate Holding Company
CIL plans to maintain full ownership of the new intermediate holding company in Chile, pending necessary regulatory approvals from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal. This initiative reflects Coal India’s commitment to diversifying its resource portfolio in alignment with global energy trends.
Investment in Energy Joint Venture
In a separate regulatory filing, the CIL board authorized an equity investment of ₹3,132.96 crore in a proposed joint venture with Damodar Valley Corporation (DVC) focused on energy. This investment is part of a larger project estimated at ₹20,886.40 crore, featuring a debt-equity ratio of 70:30, as confirmed by company officials.
Coal-to-Ammonium Nitrate Project
The board also approved an investment of ₹3,189.54 crore in Bharat Coal Gasification and Chemicals Ltd (BCGCL) to support a coal-to-ammonium nitrate project in Odisha. The project, currently in the pre-implementation phase, is expected to have an annual production capacity of 0.66 million tonnes.