Government Notifies Coking Coal as Critical & Strategic Mineral

The Government of India has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). It has been included in Part D, which lists minerals of critical and strategic importance for the country.

Implications for Mining and Investment
The inclusion of coking coal in this category is expected to enable faster regulatory approvals, improve ease of doing business, and accelerate exploration and mining activities, including development of deep-seated deposits.
Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation, measures likely to encourage greater private sector participation in the sector.

Revenue to States Safeguarded
As per Section 11D (3) of the MMDR Act, royalty, auction premium and other statutory payments from mining leases will continue to accrue to the respective State Governments, even in cases where mineral auctions are conducted by the Central Government.

Domestic Availability and Import Dependence
India has an estimated 37.37 billion tonnes of coking coal resources, predominantly located in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal and Chhattisgarh.
Despite this, imports of coking coal have risen from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25. At present, nearly 95% of the steel sector’s coking coal requirement is met through imports, resulting in a substantial foreign exchange outgo.

Strategic Significance
The decision to designate coking coal as a critical and strategic mineral is aimed at reducing import dependence, strengthening domestic steel production, and enhancing resource security for key industrial sectors.

India’s Critical Minerals Framework
In 2023, the Ministry of Mines released a list of 30 critical minerals for India, including Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Platinum Group Elements (PGE), Phosphorous, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.