Coal India, the world’s largest coal miner, is considering acquiring a Chilean unit of Wealth Minerals, according to two people familiar with confidential discussions who spoke to Reuters.
A joint venture remains another possible structure, and Reuters reported that any decision is expected to depend on securing a Chilean lithium extraction licence.
Wealth, meanwhile, carried a market capitalization of about $26.74 million on Tuesday, with its shares trading around $0.07. Its latest financial statements showed $78,218 of cash at May 31.
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The junior miner’s 2024 preliminary economic assessment for the Kuska lithium project estimated US$749 million of base capital spending, plus US$44 million for additional exploration and permitting. The study outlined a 20,000-tonne-per-year lithium carbonate equivalent operation with a 20-year mine life.
The PEA estimated a pre-tax net present value of US$1.65 billion using a 10% discount rate and a 33% internal rate of return. Its after-tax estimate was US$1.15 billion with a 28% IRR.
The latest acquisition discussions come after months of increasingly visible contact between the companies. Reuters reported in April that Wealth was discussing a possible joint venture with Coal India while seeking investors for the Kuska development.
The Indian state-owned company then disclosed something more concrete through its procurement system. An April tender sought a legal consultant to conduct due diligence on “Lithium Brine Asset(s) of Wealth Minerals Chile SpA (Chile) in Chile.” The tender was issued through Coal India’s business development operation and carried a stated tender value of about ₹26.8 million.
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Reuters reported Tuesday that Coal India had reached the final stages of negotiations after months of talks, citing one of its unnamed sources. The same source said an acquisition could not advance until the required Chilean licence is issued.
Wealth’s permitting position has already moved substantially over the past year. The company formed Kuska Minerals SpA with the Quechua Indigenous Community of Ollagüe in 2025. Wealth disclosed a 95% interest, while the community holds 5%, along with anti-dilution protection and the right to appoint one member of the five-person board.
The project includes an indicated resource of 741,000 tonnes of lithium carbonate equivalent grading 175 milligrams per litre and an inferred resource of 701,000 tonnes grading 185 milligrams per litre.
On January 2, Chile’s Ministry of Mining issued a resolution accepting the Kuska consortium’s application for a Special Lithium Operating Contract. Wealth said the government determined that the consortium had satisfied the application requirements, moving the process toward negotiation of contractual terms and a presidential decree.
Reuters reported that Coal India and Kuska had jointly applied in October 2025 and that the process subsequently slowed following a change in Chile’s government.
A Coal India partnership would also arrive while Wealth is openly disclosing substantial financing requirements. At May 31, Wealth held $78,218 of cash, $1.72 million of marketable securities, and $807,202 of working capital. The company recorded a $2.31 million net loss during the first six months of fiscal 2026 and used $2.14 million of cash in operating activities.
Wealth said in its July MD&A that it has no revenue-generating operations and continues to fund itself primarily through equity financing, loans, property transactions, and other capital sources.
The company specifically said it requires “significant additional funds” to advance interests in its Chilean salar projects, including Kuska, and expects to require more capital during the current fiscal year to remain in business and maintain and explore its properties beyond November 30.
Coal India enters those negotiations from the opposite end of the mining industry. The company produced 768.19 million tonnes of coal during its fiscal year ended March 2026, compared with 781.06 million tonnes a year earlier.
Its move toward lithium is also part of a broader Indian government effort to secure critical minerals outside the country. India has pushed state-owned miners toward lithium, copper, cobalt, and other strategic resources abroad as it attempts to diversify supply chains that remain heavily influenced by China. Reuters previously reported Coal India was scouting lithium opportunities in Chile and Argentina as early as 2024.
For now, the transaction remains conditional and undisclosed.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
