MCX To Invest ₹200 Cr In Coal, Minerals Trading Platforms

Multi Commodity Exchange of India Ltd (MCX) is planning an investment of up to ₹200 crore ($21 million) to build separate trading platforms for coal and minerals, as the government moves to open these two sectors and improve price transparency in the domestic market.

MCX, the country's biggest commodity bourse, is in the process of applying for licences to run both the coal and minerals exchanges, its Managing Director Praveena Rai said in an interview, as per Bloomberg's report. Company filings indicate two separate entities have already been set up to house these businesses going forward.

Rai said the SEBI has given its nod to MCX committing close to ₹100 crore towards each of the two new businesses. What remains pending is clearance from the Coal Controller Organisation and the Indian Bureau of Mines, the two bodies responsible for issuing licences in coal and minerals respectively.

Despite being among the world's top producers of coal and minerals, India largely takes its price cues from international markets, Rai pointed out. "So, that's really the policy imperative for the government," she reportedly said.

What Trading Will Look Like

At launch, the minerals platform is expected to cover a handful of commodities, among them iron ore, bauxite, limestone and manganese. The exchange should help widen market access while cutting down on disagreements over quality, price and contract terms that currently affect the trade, the report said.

Assaying agencies with proper accreditation will be responsible for certifying mineral quality under the new rules, which also build in surveillance mechanisms to catch manipulation, cartel behaviour and insider trading. Both bourses, coal and minerals, are designed as centralised electronic platforms supporting delivery-based contracts, and are on track to go live in the financial year starting April 1.

For now, MCX's business leans heavily on gold and energy contracts. Gold alone made up over half of the exchange's daily trading volumes in the April-June quarter, per its earnings presentation, with energy products, spanning oil, gas and power, accounting for roughly 40% of the rest.

"Each one of these segments will grow," Rai reportedly said. "As an exchange really focused on commodity markets, we wish to play a strong role in developing these markets further."

In a related development, the Centre has drawn up plans for four critical minerals processing parks, to come up in Andhra Pradesh, Odisha, Gujarat and Maharashtra. According to coal and mines minister G Kishan Reddy, the respective state governments will offer land and incentives to draw processing companies to these parks, while the central government handles technical support.

Mines secretary Keshav Chandra said the parks would initially prioritise lithium and nickel, given their role in battery manufacturing. "Batteries are currently the most important component globally for future growth," he said.

According to reports, the idea is to bring together the full value chain for each mineral, from raw processing to end-use industries, within a single hub.

Nearly 95% of India's critical mineral needs are currently met through imports. To address this, the Centre had launched the National Critical Mineral Mission in 2025, backed by ₹34,300 crore over seven years for exploration efforts both domestically and offshore. Minerals such as copper, lithium, nickel, cobalt and rare earths are considered vital inputs for clean energy industries.