Coal India Limited (CIL) announced on September 16, 2025, that it has been declared the preferred bidder by the Ministry of Mines for the Ontillu-Chandragiri rare earth element (REE) exploration block in Andhra Pradesh, as per the exchange filings. The tender for this block was issued earlier on March 30, 2025.
The block covers an area of 209.62 square kilometres. The award grants Coal India the right to obtain an exploration licence under the Mines and Minerals (Development and Regulation) Act, 1957. The licence deed must be signed within one year of the state government issuing a Letter of Intent.
Coal India clarified in its exchange filing that the award has been made by a domestic entity and does not fall under related party transactions. The company also stated that its promoter group has no interest in the awarding entity.
Earlier this year, in May, Coal India secured rights to a graphite and vanadium block during the fifth round of auctions for critical minerals. The company has been gradually expanding its portfolio beyond coal production into the exploration of other resources.
Rare earth elements are used in a range of industries, including renewable energy, electric mobility, defence, and advanced electronics. India has been conducting auctions for these resources as part of plans to strengthen domestic capacity in critical minerals.
Read more: GST Rate Hike on Coal Explained: How Will 18% Tax Impact Different Industries?
As of September 17, 2025, 09:32 AM, Coal India share price was trading at ₹399.50, a 0.93% increase from the previous closing price.
The award of the Ontillu-Chandragiri exploration block represents another step for Coal India in diversifying its exploration activities. The licence process is expected to move forward once the state government issues the Letter of Intent.
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Published on: Sep 17, 2025, 11:35 AM IST
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