Coal India has bagged its first non-coal mineral asset, marking its entry into the graphite mining sector.
What Happened: The firm informed of its foray into non-coal mineral mining in a press release on Monday. The state-owned company announced its successful bid for the Khattali Chotti graphite block in Madhya Pradesh, on Friday. The auction, conducted by the Ministry of Mines on July 9, saw CIL quoting a mining premium of 150.05% of the value of the mineral dispatched, payable to the Madhya Pradesh government.
“Owning a graphite asset will give CIL an edge in powering green energy transition momentum to an extent. The company's decades of mining experience is yet another advantage,” the company added in the press release.
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India currently imports approximately 69% of its graphite needs. The graphite market is expected to grow by 25%-27% by FY2035.
In the June quarter, CIL reported an 8% surge in coal production which reached 189.3 million tonnes.
The company’s shares have also seen increased interest from investors. Parag Parekh Flexi Cap Fund raised its stake in the state-run miner during the April-June period, as per the company’s latest shareholding pattern.
Price Action: Shares of Coal India were up 0.9% at ₹492.70 on Monday.
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