Coal India (CIL) has successfully opened its account in domestic critical mineral asset emerging as the preferred bidder for Khattali Chotti graphite block in Alirajpur district of Madhya Pradesh. This was under tranche two forward auction held on 9 July by the Ministry of Mines. It would be CIL's first ever non-coal mineral mining venture.
CIL won the bid quoting a mining premium of 150.05 percent of the value of mineral despatch, which it would pay to the State of MP.
CIL shall formally receive the letter of intent once it deposits performance security. Composite license shall be issued to CIL in one year after the company meets the formalities under NIT timeline.
The country's Ministry of Mines had invited bids from potential bidders to participate in the tranche two mineral block auction where CIL under its diversification portfolio won the bid.
With this, CIL is poised to play a supporting role in critical minerals domestically. Based on five bed rock samples from the Khattali Chhoti block, the fixed carbon ranges from 1.99% to 6.50 %. The total area of the block is nearly 600 hectares. |