Prakash Ind secures long-term coal linkages for sponge iron

Prakash Industries today said it has secured long-term linkages for sponge iron.
"In the recent coal linkage auction conducted by Coal India Ltd, we have secured coal linkages of a total quanity of 6,49,300 MT per annum for the next five years from various mines of South Eastern Coalfields Ltd (SECL) in Chattisgarh. The company will sign the Fuel Supply Agreement (FSA) for the same," a company statement said here.
Securing these linkages will provide long term stability in the operations of the company, in addition to the cost savings in sponge iron production at its integrated steel plant at Champa in Chhatisgarh.

With this sourcing of coal the operating margins and profitability of the company would improve significantly in the following years, the release said.
The company is undertaking expansion and modernisation in its steel melting shop by setting up energy efficient furnaces.
The company is making all its efforts to make operational its allotted iron ore mines in the states of Chhattisgarh and Odisha, which will enhance operational performance significantly.