Coal India Limited has received board approval for establishing an Intermediate Holding Company (IHC) in Chile, marking a significant step in the Maharatna company's international expansion and diversification strategy. The company disclosed this development through a regulatory filing dated February 4, 2026, addressed to both BSE and NSE.

Strategic Focus on Critical Minerals

The newly approved Chilean entity will concentrate on exploring and developing opportunities in critical minerals, with particular emphasis on lithium and copper resources. This initiative aligns with Coal India's broader diversification strategy as the company seeks to expand beyond its traditional coal mining operations into strategic mineral segments.

Ownership and Investment Structure

Coal India will maintain complete control over the Chilean subsidiary through 100% equity investment. The company has indicated that this will be a cash consideration-based investment, though the specific subscription cost and share price details are yet to be finalized.

Regulatory Requirements and Timeline

The incorporation process requires approvals from key government bodies, specifically the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal (MoC). The company has stated that the final name and incorporation date of the IHC will be communicated once these formalities are completed.

Corporate Governance Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the relevant SEBI circular dated November 11, 2024. The disclosure was signed by B.P. Dubey, Executive Director (Company Secretary) and Compliance Officer, ensuring proper regulatory adherence.

This strategic move represents Coal India's commitment to diversifying its portfolio and establishing a presence in the critical minerals sector, particularly in South America's resource-rich Chilean market.

Coal India has announced its board approval for a substantial investment in a joint venture project, marking a significant step in the company's expansion strategy. The mining giant has committed ₹31.33 billion towards this strategic partnership, reflecting its focus on growth through collaborative ventures.

Investment Structure and Financial Framework

The joint venture project represents a major capital commitment with comprehensive financial planning. The investment details highlight the scale and strategic importance of this initiative for Coal India's future operations.

Project Financing Strategy

The project will be financed through a structured approach utilizing a 70:30 debt-equity ratio. This financing mechanism indicates a balanced approach to funding, where 70% of the total project cost will be funded through debt instruments while the remaining 30% will come from equity contributions. This structure allows for optimal capital utilization while managing financial risk effectively.

Strategic Implications

The approval of this substantial investment underscores Coal India's commitment to expanding its operational footprint through strategic partnerships. The joint venture model enables the company to leverage shared resources, expertise, and risk distribution while pursuing large-scale projects that require significant capital investment.