New Delhi: The world's largest coal producer, Coal India Ltd, is setting up its first overseas trading office in Singapore, aiming to diversify into trading iron ore and critical and strategic minerals, two sources said.
The move comes as Indian state-run companies step up efforts to secure overseas supplies of critical minerals such as lithium and bauxite in order to reduce dependence on China, though such efforts have so far borne little fruit.
Coal India has applied with Singapore authorities to register the office, which will also support efforts to acquire mineral assets overseas, said the sources involved in the discussions, who sought anonymity as the talks are not public.
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The Singapore office will help Coal India expand its critical minerals business, pursue overseas asset acquisitions and support its iron ore business, one source said.
Coal India did not immediately respond to a request for comment.
EYEING OPPORTUNITIES IN AFRICA, CHILE AND CANADA
Coal India is evaluating opportunities in several mineral-rich regions, including bauxite assets in Ghana and other parts of Africa, the source said, adding that the miner was also looking at rare earth minerals.
For lithium, the miner is focusing on Chile while also evaluating opportunities in Canada and Australia for other critical mineral assets, though opportunities are at a preliminary stage, the second source said.
The company has already begun diversifying into other mineral sectors. This month it won an iron ore block in the eastern state of Odisha through a competitive auction, marking its entry into iron ore mining.
Last week, Reuters reported that Coal India was considering acquiring a unit of Canada's Wealth Minerals with lithium mining assets in Chile, providing potential access to a key battery metal used in electric vehicles and energy storage systems.
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Despite a push to acquire strategic mineral resources abroad to support its clean energy ambitions and manufacturing growth, India has had limited success.
So far, it has signed only one overseas lithium exploration and mining pact, covering five blocks in Argentina, in 2024.
