Coal India, the world's single largest coal producer and the source of the bulk of India's domestic coal, has filed an application to establish a trading office in Singapore that would trade critical minerals and iron ore, in what would be the company's first trading office outside India, Reuters reported on Thursday, citing anonymous sources involved in the discussions.

The state miner has applied with Singapore's authorities for approval of the planned trading hub. Singapore is one of the world's largest physical commodity trading centers, with many international energy and trading houses basing their Asian operations in the city-state. The move comes as several major state-owned Indian companies have been looking to acquire strategic minerals assets overseas to support India's rising minerals demand and reduce dependence on Chinese supply.

The new Singapore hub is expected to help India's coal giant expand its critical minerals business, pursue asset acquisitions outside India, and support its iron ore business, one of the sources told Reuters.

Indian firms, including Coal India, are searching for bauxite and lithium assets overseas, including in lithium-rich Chile and Australia. Indian state-held enterprises have also evaluated assets in Africa. India produces little of these minerals at home and relies on imports for lithium, rare earths, and other raw materials used in batteries, electric vehicles, wind turbines, and solar equipment.

Earlier this month, Reuters reported, citing sources with knowledge of the matter, that Coal India is considering buying a unit of Canada's Wealth Minerals with lithium mining assets in Chile.

India, meanwhile, has been working with Argentina to strengthen cooperation in lithium mining in the South American country. Last year, India and Argentina signed a memorandum of understanding (MoU) to strengthen ties in the critical minerals sector.

"This collaboration is expected to accelerate lithium exploration projects, enhance resource security, and create new opportunities for Indian companies in the Latin American mining landscape," the Indian government said in 2025.

Also last year, the Indian government announced a new royalty payment scheme for a list of critical minerals in a bid to motivate miners to ramp up local production. That list, drawn up in 2023, names 30 minerals — including lithium, nickel, and rare earths — that the government considers essential to the country's economic development and energy transition.

This year, India moved to invest $10 billion in rare earth elements in a bid to reduce China's dominance in the supply and refining of these key critical minerals, which are used to make the permanent magnets found in electric vehicle motors, wind turbines, and a range of electronics and defense systems.

The overseas hunt also comes as India pursues its target of net-zero emissions by 2070, with electrified transport and expanded renewable power capacity both requiring minerals such as lithium, copper, and rare earths.

By Charles Kennedy for Oilprice.com.