ACC has entered an arrangement with the Madhya Pradesh State Mining Corporation Limited (MPSMC), a Government of Madhya Pradesh Undertaking, by which the State Government will make available four coal blocks for prospecting and mining through joint venture companies to be set up between MPSMC and ACC Mineral Resources Limited (AMRL), a wholly owned subsidiary of ACC Limited.
A Joint Venture agreement was signed between AMRL and MPSMC for exploration, development and mining of coal, subject to feasibility, from four coal blocks at Marki Barka, Bicharpur, Semaria Piparia and Morga IV blocks, which together have approximate reserves of 200 million tones. The four mines will be optimally linked to supply coal to the company’s cement plants at Gagal, Kymore, Tikaria and Lakheri, replacing the coal needs of these plants currently sourced through e-auctions and the open market. The mines are expected to become operational in four to five years.
Coal is essential to the manufacture of cement in India. However regular supply of the required quality and quantity of coal has for long been a critical constraint in cement production. Captive sourcing of coal from these dedicated mines will lead to improved performance of the company’s cement plants as a direct result of better supply assurance, lower inventory carrying costs and, above all, consistent and better quality. This arrangement with the Government of Madhya Pradesh will provide long-term assurance for a most vital source of the company’s energy requirements for some of its cement plants in northern India.
