To double capacity,Coal India to invest Rs 35K cr over 5 yrs

According to CIL chairman N C Jha ,out of the total investment,Rs 2,400 crore would be used for setting up 20 coal washeries with a capacity of 111.1 million tonne per annum to enhance calorific value of raw coal by lowering its ash content and help power utilities reduce their import dependence.

In a recent presentation to the Indo-US Coal Working Group (CWG),Jha said that the 142 new projects,which include 107 opencast mines and 35 underground mines,would ramp up the company’s production capacity by 380.22 MT per annum. As of now,CIL and its subsidiaries have 273 opencast mines and 163 underground mines,which produce 431.32 MT annually. These mines have an estimated reserve of 67 billion tonne.

Jha said that the company was developing seven underground greenfield properties and has identified 18 abandoned mines with an estimated reserve of over 1,600 MT to reinforce its mineral resource base.

The PSU has also begun satellite surveillance for land reclamation and restoration of opencast mines and has commenced tapping large reserves below 300 metre depth,he said. Urging the US to come up with new technologies and extend expertise in mechanisation of CIL’s underground mines,the chairman said that the Indo-US CWG may come forward with suitable technology blueprint for mining deep-seated coal reserves.

The company is also planning to develop Coal Mine Methane (CMM) in the mines of its subsidiaries — Bharat Coking Coal Limited and Central Coalfields Limited — under a collaborative regime for which global Expressions of Interest (EoIs) have been floated. Stating that CIL has identified the US as a preferred country for both ‘equity’ and ‘off-take models’,Jha pointed out that in response to the global EoI for both the models,encouraging responses have been received from the country’s coal companies.

In order to secure coal properties abroad,the PSU,apart from acquiring two virgin blocks in Mozambique,has floated global EoI for selection of strategic partners for overseas operations. “We have received five proposals from three countries,which are being duly considered,” Jha told the CWG. He said that CIL was considering three models for enhancing its global presence,which includes,equity with off-take in brownfield projects,long-term off-take arrangement and equity in greenfield projects.

Under the equity model,the company has planned to acquire stakes in operating mines or greenfield coal blocks and import the produces from such acquisitions to India. While,in the off-take model,the firm proposes to enter into long-term off-take contract (for around 10 years) with coal companies for procurement of imported coal. The company is in talks with US-based firms Peabody and Massey Energy Corporation to forge a strategic alliance with them.