New Delhi, 29/07/2025: India may be sitting on a valuable resource buried beneath its coalfields. Recent studies in Madhya Pradesh’s Singrauli region show that the area holds promising amounts of rare earth elements (REEs), a group of metals that play a big role in modern technology and green energy.
Coal and Mines Minister G. Kishan Reddy informed Parliament that Coal India Ltd (CIL) has started research to explore rare earth elements found in the waste produced by coal mining. These elements—like scandium and yttrium—are important for making electric vehicles, smartphones, wind turbines, and other high-tech equipment.
The findings so far look encouraging. Samples from the Singrauli coalfield showed REE concentrations of around 250 parts per million (ppm) in coal and about 400 ppm in non-coal materials like clay and shale. According to the minister, these numbers suggest a “promising” potential for rare earth extraction.
However, there’s a catch. Extracting these metals is not easy or cheap. It will require new technologies and larger-scale operations to make it affordable and efficient.
In India’s northeastern coalfields, where REE levels are generally low, researchers noticed something interesting: a higher share of heavy rare earth elements, which are even more valuable due to their specific uses in advanced electronics and defense systems.
To make the most of this opportunity, India is trying to develop its own technology to extract rare earth elements and other important minerals from coalfield waste. Efforts are also underway to recover these metals from acid mine drainage—a polluted liquid that comes out of mines—using special techniques like ion-exchange resins.
To support this mission, Singareni Collieries Company Limited (SCCL) has signed agreements with top research institutions, including the Institute of Minerals and Materials Technology (IMMT), the Non-Ferrous Materials Technology Development Centre (NFTDC), and the Indian Institute of Technology (IIT) in Hyderabad. These partnerships aim to speed up progress in REE research and extraction.
India currently relies heavily on imports of rare earth elements, with China being the top supplier. This dependency is risky. A recent study by the State Bank of India (SBI) warned that China’s export restrictions on rare earths could hurt India’s manufacturing sector. Industries that rely on these materials may see production slow down, become less competitive in global markets, or face financial troubles—especially those with heavy bank loans.
That’s why India is taking steps to tap into its own hidden reserves. Finding and using rare earth elements at home could reduce import bills, boost local industries, and make the country more self-reliant in key technologies.
Rare earths are part of a larger group called “critical minerals,” which are essential to today’s industrial world. Their special properties—like making products smaller, more stable, and more energy-efficient—make them vital for building the future.
With global demand for rare earths rising fast, the discovery in Singrauli may be more than just good news—it could be a game-changer for India’s economy and energy future.
