Coal India revives 23 dormant mines

Coal India Limited (CIL) announced on June 19 that it has awarded 23 discontinued underground mines to successful private sector bidders in a bid to revive dormant coal mines and enhance revenue streams.

Coal India Limited (CIL) announced on June 19 that it has awarded 23 discontinued underground mines to successful private sector bidders in a bid to revive dormant coal mines and enhance revenue streams.

According to the state-run company, these mines were awarded under a revenue sharing model, aiming to maximize operational efficiency and harness untapped coal reserves.

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The cumulative peak rated capacity of these mines amounts to 34.14 million tonnes per year (MT/Y), with an estimated total extractable reserve of 635 million tonnes (MT).

CIL identified a total of 34 mines across various subsidiaries that were not operational but held substantial reserves of good quality coal. These mines were deemed financially unviable for CIL itself, prompting the decision to auction them off to private players.

Eastern Coalfields Limited and Bharat Coking Coal Limited, based in West Bengal and Jharkhand respectively, account for 10 mines each from the identified lot. Western Coalfields Limited secured 5 mines, South Eastern Coalfields Limited 4, Mahanadi Coalfields Limited 3, and Central Coalfields Limited secured the remaining 2 mines, as per the company statement.

Each contract awarded is for a maximum period of 25 years, with a minimum revenue share commitment of 4 percent specified in the terms.

The move is expected to breathe new life into these coal mines, leveraging private sector expertise to optimize production and contribute to the country’s energy requirements.