HomeNATIONALCENTRERare Earth Elements Found in Singrauli Coalfields Could Be India's New Oil:...

Rare Earth Elements Found in Singrauli Coalfields Could Be India’s New Oil: A Strategic Shift in Energy and Tech Security

In what could mark a turning point in India’s strategic resource landscape, promising reserves of rare earth elements (REE) have been discovered in the Singrauli coalfields of Madhya Pradesh, the government informed Parliament on Monday. The revelation could have far-reaching implications for India’s ambitions in clean energy, electronics, defence technologies, and electric vehicles—sectors that rely heavily on these critical metals.

Responding to a question in the Rajya Sabha, Coal and Mines Minister G. Kishan Reddy confirmed that the state-run Coal India Ltd (CIL) has taken up research and development projects to evaluate the potential of extracting REEs from coal mine waste.

Rare Earths: India’s Strategic Opportunity

Rare earth elements—like scandium, yttrium, and the 15 lanthanides—are critical components in modern-day technologies, ranging from wind turbines and smartphones to missile guidance systems and EV batteries. With China currently dominating global REE production, India’s discovery is being hailed as a potential game-changer in reducing import dependence and strengthening self-reliance.

“Results from appraisal of Gondwana sediments (coal, clay, shale, sandstone) in Singrauli indicate that rare earth enrichment is ‘promising’,” the minister said. Coal samples showed enrichment levels of 250 parts per million (ppm), while non-coal samples reached 400 ppm—a noteworthy concentration that demands further exploration.

Challenges to Commercial Extraction

While the findings are exciting, commercial extraction is still a work in progress. According to Reddy, the viability of extracting REEs depends on technological advancements and economies of scale.

Extracting rare earths from coal and its by-products is a complex process. India is now focusing on the development of indigenous technologies to make this economically feasible. This includes enrichment techniques using physical separation methods and ion-exchange resin-based extraction from acid mine drainage and surrounding non-coal strata.

Pan-India Research Collaboration Underway

To accelerate progress, public-sector mining entities are collaborating with premier research institutions:

  • Singareni Collieries Company Limited (SCCL) has signed MoUs with:
    • Institute of Minerals and Materials Technology (IMMT), Bhubaneswar
    • Non-Ferrous Materials Technology Development Centre (NFTDC), Hyderabad
    • Indian Institute of Technology (IIT), Hyderabad

These partnerships aim to build a robust domestic capability in critical mineral extraction—an area where India has lagged behind despite rich geological diversity.

What About the Northeast?

The minister also shed light on REE exploration efforts in the North Eastern Region Coalfields, where total REE concentration is lower, but heavy rare earth elements (HREE)—which are even rarer and more valuable—are relatively higher. This opens new research avenues for targeted extraction of HREEs using customized technologies.

Why Rare Earths Could Be India’s ‘New Oil’

Just as oil reshaped geopolitics in the 20th century, rare earth elements are poised to play that role in the 21st. With the global push toward green technologies, digitization, and energy transition, countries are scrambling to secure long-term access to these strategic resources.

India’s dependence on Chinese imports for most of its REE needs has long been seen as a vulnerability. The discovery in Singrauli, combined with a serious push for domestic technology development, could be a geostrategic turning point. It aligns with India’s broader policy direction of Atmanirbhar Bharat (self-reliant India) and energy security.

The Road Ahead

Experts caution that while the findings are encouraging, the journey from promising deposits to commercial-scale production involves years of scientific innovation, regulatory approvals, and infrastructure investment.

Nonetheless, this discovery adds to the growing chorus calling for India to take its place in the global rare earth supply chain. If harnessed correctly, these deposits could not only power India’s tech-driven future but also serve as a bargaining chip in international trade and diplomacy.

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