India’s largest coal producer is taking a tentative but strategically important step beyond fossil fuels. South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Ltd, has identified seven mine overburden dumps that may contain extractable rare earth elements (REEs), signalling a possible new frontier for the state-run mining giant.

The move comes amid growing global competition for critical minerals used in high-technology manufacturing, clean energy systems, and defence applications. Rare earth elements essential for electric vehicles, wind turbines, advanced electronics, and missile systems are overwhelmingly supplied by China, creating supply vulnerabilities for countries like India.

SECL Chairman and Managing Director Harish Duhan stated that the company has already initiated the tendering process for scientific exploration. The assessment will focus on overburden dumps large quantities of rock and soil removed to access coal seams and typically treated as waste.

This represents a shift in how mining companies view legacy assets. Instead of liabilities, waste dumps are increasingly seen as potential secondary resource deposits. Trace quantities of REEs have reportedly been detected in such dumps across major coalfields, prompting the government to encourage systematic evaluation.

The seven identified sites are located within SECL’s operational areas in Chhattisgarh and Madhya Pradesh — regions that host some of India’s largest coal reserves. According to the company, advanced geophysical and geochemical techniques will be used to determine not only the presence of rare earth elements but also whether extraction would be economically viable.

The timeline suggests a cautious approach. SECL expects to complete scientific assessments within roughly a year, after which it will identify the most promising sites for pilot extraction. Commercial production, if viable, would follow only after further validation.

From a policy standpoint, the initiative aligns closely with India’s broader strategy to secure domestic supplies of critical minerals. The government has been actively pursuing self-reliance in materials essential for clean energy transitions and defence manufacturing, especially as geopolitical tensions and export controls have disrupted global supply chains.

Rare earth exploration through mine waste also fits into a circular economy framework. Instead of opening entirely new mines a process often fraught with environmental clearances and social resistance reprocessing existing dumps can reduce ecological impact while extracting additional value from previously disturbed land.

For Coal India and its subsidiaries, this diversification could have long-term implications. India’s energy transition is expected to gradually reduce coal’s dominance in power generation. Developing capabilities in critical minerals could help state-owned miners remain relevant in a decarbonising economy.

However, significant uncertainties remain. Rare earth extraction is technologically complex and capital intensive, particularly when concentrations are low, as is often the case in coal overburden. Processing requires specialised chemical separation facilities, environmental safeguards, and a downstream ecosystem that India is still developing.