Coal India and Hindustan Copper Forge Strategic Alliance to Tap Copper and Critical Minerals Sectors

In a significant move for India’s mining and minerals landscape, Coal India Limited (CIL) and Hindustan Copper Limited (HCL) have signed a Memorandum of Understanding (MoU) on June 30, 2025, to jointly explore and evaluate opportunities in the copper and critical minerals sectors. The collaboration aims to leverage the strengths of both state-owned giants to identify promising projects and pursue global partnerships, particularly at a time when the demand for critical minerals is surging due to their importance in clean energy and high-tech industries.

 

Key Highlights:

 

Joint Opportunity Exploration: The MoU focuses on identifying and evaluating projects in copper and critical minerals, with an eye on forming partnerships with renowned global companies.

 

Strategic Diversification: HCL has announced plans to bid, often in partnership with other PSUs like IOCL, GAIL, and RITES, for upcoming auctions of copper, critical minerals, and rare earth element blocks, furthering its diversification and profitability strategy.

 

Record Financial Performance: HCL reported its highest-ever operational revenue at ₹2,070.97 crore for FY 2024-25, a 21% increase year-on-year, and a 54% surge in profit before tax to ₹633.51 crore, underscoring the sector’s robust growth.

 

Non-binding Agreement: The MoU is not legally binding but establishes a framework for cooperation and future joint ventures.

 

National Resource Security: With HCL holding all operating copper mining leases in India and CIL’s vast mining expertise, the alliance is poised to enhance India’s self-reliance in critical minerals supply.

 

Global Context: The International Energy Agency notes that despite strong demand projections, global investment in critical minerals slowed in 2024, making such collaborations vital for maintaining momentum.

 

Sources: The Economic Times, PTI/The Week, BusinessWorld