Bengaluru: Singareni Collieries Company Limited (SCCL) has entered a new chapter by venturing into critical mineral exploration. The company has secured a license through the Union Ministry of Mines’ auction to survey gold and copper blocks in the Devadurga region of Karnataka, making it the first coal PSU in the country to do so.

Revealing the development, SCCL Chairman and Managing Director N Balaram said the company emerged as the L-1 bidder by quoting 37.75% royalty in the online auction. Calling it a historic milestone, he described the move as a “golden step” in critical minerals exploration.

Exploration activities in Devadurga are expected to be completed within five years. The company’s Exploration Division will soon begin research in the region where gold and copper deposits have been traced. Following exploration, SCCL will submit its report to the Government of India, which will later auction the mines for commercial mining.

“The company that secures the mining rights, be it SCCL or another firm, will have to pay royalty to the Karnataka government and out of which 37.75% will go to SCCL throughout the lifetime of the mine,” Balaram said. He added that the exploration work would cost about ₹90 crore, of which ₹20 crore would be subsidised by the Central government.

Chief Minister A Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka congratulated SCCL, expressing confidence that with its 136 years of mining experience and proven exploration expertise, the company would become a leading player in critical minerals.

Singareni had earlier participated in three auctions for prospective blocks, including platinum group elements in Madhya Pradesh, rare earth elements in Andhra Pradesh and the gold and copper block in Karnataka. These were part of 13 exploration licenses put up for auction by the Centre on March 13, 2025.

BI Bureau