Coal India to explore rare earth reserves in Andhra Pradesh
What's the story
Coal India Limited has been declared the preferred bidder by the Ministry of Mines for the Ontillu-Chandragiri rare earth element (REE) exploration block in Andhra Pradesh. The decision comes after a tender notice issued by the ministry on March 30, 2025. The block covers an area of 209.62 square kilometers and comes with an exploration license under the Mines and Minerals (Development and Regulation) Act, 1957.
License agreement
Details of the agreement
Coal India has one year from the date of receipt of the letter of intent from the Andhra state government to execute the exploration license deed. The company has clarified that this contract is awarded by a domestic entity and does not fall under related party transactions. Earlier, Coal India had won a major graphite and vanadium block in the fifth round of critical mineral auctions held in May.
Market response
Coal India's shares see marginal increase
Following the news of winning the Ontillu-Chandragiri rare earth block, Coal India's shares witnessed a marginal increase of 0.38% on Tuesday. The stock has also seen a growth of 2.5% in the current year so far. This positive market response highlights investor confidence in Coal India's new venture into rare earth element exploration and potential future profitability from it.