Lignite miner NLC India is mulling to enter into exploration of critical minerals such as lithium as well as eyeing to foray into coal gasification and further expand its battery energy storage systems (BESS) offerings as the state-run company aims to expand its revenue streams.

“As of now, it is coal and lignite, but seeing the scenario in the mines and minerals space, with the mining experience that we have, we can diversify and go to mining of other precious minerals also. In the coming days, these minerals will play an important role in a country’s economy,” NLC India CMD M Prasanna Kumar told businessline about the PSUs expansion plans.

Talking about his visit to Australia for the World Mining Congress 2023 in Brisbane last month, Kumar said that this time focus on the elements required for battery storage such as Lithium, Cobalt, Palladium, Nickel, etc. The focus of the World Mining Congress was on the exploration of these minerals.

“My visit to the congress was mainly to learn about the latest technologies in the coal and lignite sector. For instance, we explored the possibility of briquetting of lignite. But, during the process we came to know that the focus is on exploration of minerals. So, we have been thinking that we can diversify in that direction,” he added.

Expanding revenue streams

One is the exploration of minerals, Kumar added that the other avenue is coal gasification, which India is also trying to expand.

“We have a target of 100 million tonnes production by 2030. That is also an area where we can have technology collaboration with Australia,” the NLC India Chief said.

The PSU miner is also upbeat out battery energy storage systems (BESS) and pumped storage systems (PSPs).

“NLC India is the first PSU that installed BSS at Andaman and Nicobar, about four or five years back. Before that they were getting diesel generated power that was disturbing the environment and ecology to a great extent. With the set up of our 20 MW plant along with 8 MW BSS capacity, the utilisation of RE, the environment in Andaman Nicobar improved a lot,” he noted.

Now they are requesting NLC India to add another 20 MW hour (MWh) of battery storage system. Currently, the company is in discussions with them to install this capacity.

On prospects of expanding revenue streams in BESS, Kumar explained “The only thing to consider here is the cost, which is on the higher side. So, we are watching the market and whenever the battery storage tenders come, we will certainly participate in that. Now, we are also initiating PSPs on pilot scale in our mine voids of small scale capacity to prove the technology and to ensure that we are into the storage business also.”

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