New Delhi- India is setting its sights on an unexpected source of critical minerals—coal mine waste and thermal power plant by-products like fly ash and bottom ash. Recent studies conducted on samples from Singareni Thermal Power Plant (STPP) and Neyveli lignite mines reveal the presence of rare earth elements (REE) and other valuable trace minerals in significant quantities.
In the fly ash and clay samples from STPP, the total REE concentration stands at around 400 parts per million (ppm). Meanwhile, samples collected from Neyveli by NLC India Ltd show even more promise, with fly ash containing up to 2100 mg/kg of REE, including a notable 300 mg/kg of Yttrium—an element crucial for modern electronics and defense technologies.
To capitalize on this potential, the Government of India approved the establishment of the National Critical Mineral Mission (NCMM) on January 29, 2025. Spanning from 2024–25 to 2030–31, the mission has an initial allocation of Rs100 crore for pilot projects that will focus on extracting critical minerals from industrial waste streams such as overburden, red mud, tailings, and fly ash. Guidelines to set up a Centre of Excellence under the mission were also cleared in April this year.
Coal India Limited (CIL) is actively engaged in research and development to explore rare earth deposits in coalfields, particularly in the North Eastern Region and Gondwana sediment zones. While some regions show relatively low total REE levels, the concentration of heavy REEs is encouraging. In the Singrauli coalfields, for example, REE enrichment reaches up to 250 ppm in coal samples and approximately 400 ppm in non-coal materials like shale and clay.
Efforts are also underway to develop indigenous technology for economically viable extraction of these minerals. This includes techniques for physical separation and ion-exchange resin processes for recovering critical metals from both overburden and acid mine drainage.
The Singareni Collieries Company Limited (SCCL) is collaborating with premier research institutions such as the Institute of Minerals and Materials Technology (IMMT), Bhubaneswar; Non-Ferrous Materials Technology Development Centre (NFTDC), Hyderabad; and IIT Hyderabad to accelerate innovation in this emerging field.
The government’s latest move reflects a strategic push to reduce dependence on imports and secure domestic sources of critical minerals vital for renewable energy, electronics, and national security.
This information was given by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in Rajya Sabha today.