India’s coal giant looks beyond China with rare earth push across Africa and the West

Coal India is stepping up efforts to secure access to rare earth minerals, scouting partnerships across Australia, Russia, Argentina, Chile, and several African countries as India moves to cut its exposure to China-dominated supply chains.

• Coal India is scouting rare earth partnerships across Africa, Australia, and Russia amid tighter Chinese export controls.
• The move signals India’s push to secure critical minerals vital to the steel, automotive, and clean energy industries.
• Funding will come from Bharat Coking Coal Ltd’s oversubscribed IPO, which raised about $119 million.
• Analysts say the strategy could reshape India’s resource ties with Africa and other mineral-rich regions.

The strategy follows China’s expansion of export restrictions on rare earths late last year, a move that rattled industries from electric vehicles to consumer electronics.

Rare earths are critical inputs for advanced manufacturing, clean energy, and defence technologies, sectors that are increasingly central to both Asian and African growth ambitions.

Manoj Kumar Agarwal, chairman and managing director of Bharat Coking Coal Ltd, Coal India’s coking coal-focused unit, said the company is exploring investments and collaborations at an early stage, both within India and overseas.

He noted that discussions are underway with other firms as New Delhi seeks to secure alternative sources of the minerals.

Domestically, the company plans to work with state-owned entities, including IREL, Khanij Bidesh India Ltd, and Hindustan Copper, signalling a coordinated public sector push into critical minerals.

Funding for the expansion will come from the proceeds of BCCL’s recently completed initial public offering, which raised about $119 million.

The IPO, which consisted solely of existing shares, was heavily oversubscribed, and the company is expected to list shortly.

Beyond rare earths, BCCL is also eyeing acquisitions of coking coal mines in Australia and Russia within the next two to three years.

Agarwal said the company aims to lift coking coal production capacity to 56 million tonnes per year by the 2030 financial year, up from 40.5 million tonnes at the end of the 2025 financial year.

Investors are betting that India’s infrastructure drive, and the resulting demand for steel, will underpin long-term growth, with implications for resource-rich African economies seeking new global partners.