Corporate biggies like Rio Tinto, ArcelorMittal, Reliance, Sterlite, Essar and JSW Steel have evinced interest in reviving 18 abandoned mines of Coal India.
To a global expression of interest floated by the PSU in September 12, companies including the aforementioned have responded, a source in Coal India Ltd (CIL) said.
Among the international metal and mining companies that have given positive response to CIL proposal include Rio Tinto, ArcelorMittal and Titan Mining, Australia.
Domestic firms in the race for reviving the mines, which have estimated coal reserves of 1,647 million tonnes (MT), include Anil Ambani’s Reliance Natural Resources, Monnet Ispat, GVK Power and S&T, among others. All the 18 mines are spread across West Bengal and Jharkhand and fall under the jurisdictions of Coal India’s subsidiaries like Central Coalfields Ltd, Eastern Coalfields Ltd and Bharat Coking Coal Ltd, a senior official in the Navratna PSU said.
After scrutiny of the received proposals, CIL would finalise tender documents to form individual joint ventures on a competitive basis with each of the companies, he added.
Initially, CIL had planned to revive 26 of its abandoned mines, but later reduced it to 18 on the basis of scrutiny by CMPDI, the planning arm of the coal major. As the company’s global expression of interest received just two responses in the beginning, it extended the last date for submission of bids by a month to November 12.
According to CIL sources, companies roped in for revival of the abandoned mines would have access to only 50 per cent of the total output from the coal property.
Asked about the size of investment needed for revival of the mines and the time-frame by which production is likely to be commissioned, the official said that details have not yet been worked out.
In addition to reviving the abandoned mines, CIL also plans to develop seven underground mines with foreign technology on a turn-key basis.
Of the seven mines, two each would come up in Eastern Coalfields and South Eastern Coalfields, while one each in Mahanadi Coalfields, Western Coalfields and Bharat Coking Coal Ltd. The company’s thrust is on enhancing production from its underground mines by up to 500 MT in two decades. The seven underground mines are likely to produce about 20 MT of coal in six years.
As part of its initiative to provide washed coal to consumers, the coal major is also in the process of investing about Rs 1,500 crore for setting up 28 state-of-the-art washeries with a total washing capacity of 98 MT.
The washeries would be set up in association with private agencies on built-operate-maintain model. While construction cost for the washeries would be borne by CIL, the maintenance part would be taken care of by private agencies to be roped in for the project.
