Coal India plans Singapore trading hub to target critical mineral assets

The coal producer says it is seeking to diversify beyond coal, with its first overseas trading office expected to support critical minerals deals and overseas asset acquisitions.

Coal India, a coal producer, is setting up its first overseas trading office in Singapore as it looks to diversify into trading iron ore and critical and strategic minerals, according to two sources.

The move comes as Indian state-owned companies step up efforts to secure overseas supplies of critical minerals such as lithium and bauxite, as the country seeks to reduce its dependence on China. However, these efforts have so far had limited success, Reuters reported.

Coal India has applied to Singapore authorities to register the office, which will also support efforts to acquire mineral assets overseas, the sources said. They spoke on condition of anonymity as the discussions are not public.

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 eyes mineral assets in Africa, Chile and Canada

Accordng to sources cited by Reuters, Coal India is evaluating opportunities across several mineral-rich regions, including bauxite assets in Ghana and other parts of Africa.

The miner is also looking at rare earth minerals as it explores ways to expand its presence beyond coal.

For lithium, Coal India is focusing on Chile, while also evaluating opportunities in Canada and Australia for other critical mineral assets. These opportunities remain at a preliminary stage, the second source said.

The company has already started diversifying into other mineral sectors.

Earlier in August, Coal India won an iron ore block in Odisha through a competitive auction, marking its entry into iron ore mining.

Reuters reported that Coal India was considering acquiring a unit of Canada’s Wealth Minerals with lithium mining assets in Chile. The potential deal could provide access to lithium, a key battery metal used in electric vehicles and energy storage systems.

India’s overseas mineral push

Coal India’s plans come as India continues to seek strategic mineral resources overseas to support its clean energy ambitions and manufacturing growth.

However, the country has had limited success in securing such resources abroad.

So far, India has signed only one overseas lithium exploration and mining pact. The agreement, signed in 2024, covers five lithium blocks in Argentina.