Close on the heels of emerging as a preferred bidder in an auction of an iron ore block, India's government-run Coal India Limited (CIL) is planning to bid for more iron ore assets across the country and to set up pellet plants, as it seeks to emerge as a diversified resource company, a company official said on Wednesday, August 19.
In a recent auction, CIL was the winning bidder for the Gadadharpur iron ore block in the eastern state of Odisha with reserves of 288 million mt.
The official said that the company will continue to bid for more such assets across the country and, with captive output of iron ore, pellets plants would be constructed to add value to the mineral.
This is a strategic decision to transform CIL from a pure-play coal miner to a diversified integrated metallurgical supplier, and to reduce the risks of being a pure fossil fuel company, the official said.
Over the last six years, the Kolkata-based firm has secured approvals from its shareholders to foray into new businesses, including mining of critical minerals, such as lithium and cobalt, producing hydrogen, and making energy storage batteries.
