Coal India approves incorporation of Chile holding company

Kolkata: Coal India's board on Wednesday approved the proposal for the incorporation of an intermediate holding company (IHC) in Chile to explore and develop opportunities in the South American country in the field of critical minerals, especially lithium and copper.The coal giant said in a filing that it will have a 100% equity investment in the IHC. For its incorporation, regulatory approvals are required from the department of investment and public asset management (DIPAM) and the ministry of coal (MoC). Coal India said the incorporation of the IHC in Chile aligned with its diversification strategy.
It may be noted that CIL is scouting for the acquisition of critical mineral assets within the country and overseas in mineral-rich countries such as Australia, Argentina and Chile.Coal India will invest Rs 3,189.54 crore in its subsidiary, Bharat Coal Gasification and Chemicals, to fund a coal-to-ammonium nitrate project.The CIL board, at its meeting held on Wednesday, also accorded approval for this investment towards its equity contribution in the promoter's equity stake in BCGCL.In a separate stock exchange filing, CIL said the proposed investment will be made in BCGCL by way of subscription to equity shares in cash at face value. The joint venture firm's objective is to establish a coal-to-ammonium nitrate project in Odisha with an annual capacity of 0.66 million tonnes per annum (MTPA) of ammonium nitrate."The project is under the pre-implementation stage," CIL said in the BSE filing. The project implementation period is 48 months.