Coal India (CIL) has secured a graphite block, as it emerged as the preferred bidder for the Khattali Chotti block in Alirajpur district of Madhya Pradesh. With this win, the company is set to play a supporting role in critical minerals domestically, as its non-coal mineral mining venture.

The Ministry of Mines had invited bids in the tranche two mineral block auction. CIL won the bid quoting a mining premium of 150.05 percent of the value of mineral despatch. CIL will receive the letter of intent once it deposits performance security, while the composite licence will be issued to CIL in one year after the company meets the formalities.

Based on five bed rock samples from the Khattali Chhoti block, the fixed carbon is in the range of 1.99 percent to 6.50 percent. The total area of the block is nearly 600 hectares.

Graphite is used as anode material in lithium-ion battery manufacturing due to its relatively low-cost and energy density, and will serve the electric vehicle market and energy storage systems. A graphite asset will thus give CIL an edge in contributing to the green energy transition. India imports about 69 percent of its graphite needs, as natural, synthetic and end-use products.