Public sector miner Coal India Limited (CIL), which recently hit the capital markets, is looking to outsource seven of its coal blocks to private players which can include global entities too.
Global bids have been invited for six of these blocks which include two in the city-based Western Coalfields Ltd (WCL) — the flagship subsidiary of CIL. The bid for the seventh block—Khairaha under the Bilaspur-based South Eastern Coalfields Ld (SECL) is under consideration.
The two blocks under WCL include Borda and Murpar in Wani and Umrer areas, respectively. Both the mines have a capacity of 3 million tones per annum (MTPA) each. Other blocks too have a minimum capacity of 2 MTPA. Coal blocks in the other CIL subsidiaries for which the bids have been invited include Tilaboni in Eastern Coalfields Ltd (ECL), Kapuria in Bharat Coking Coals Ltd (BCCL), Beharaband in SECL and Jagannath in Mahanadi Coalfields Ltd (MCL).
The move is expected to increase production in the mines as the private partner will be deploying state-of the-art machines which CIL does not have. Even though outsourcing has been done earlier, it has been limited to deploying of machines under the supervision of CIL subsidiaries.
"However, now the entire job will handed over to the private partner which will not only deploy the machines but also draw the mine-plan and a project feasibility report which so far is done by the CIL subsidiary,"said a source.
CIL is also looking for forging a 50:50 joint venture with private players in 18 abandoned underground mines. These include 6 in ECL, 8 in BCCL and 4 in Central Coalfields Ltd (CIL). The reserves in these mines are estimated at 1647 million tonnes which include coking and high grade non-coking type. The mines have been abandoned for reasons like water logging, fire or difficult mining conditions. In fact, the CIL has been planning to have similar arrangement for these mines since over a couple of years.
Meanwhile, the city-based WCL has plans to invite tenders for deploying the continuous miner equipment through a private partner at its blocks in Saoner and Mauri. "Mining is under way in a part of the block while the rest will be provided to the ally," said a senior official in this company.
"However, despite efforts WCL's production will be limited a little to around 44 to 45 million tonnes which is the present level as the total reserves with it allow keeping the production only up to that level,"said a source here.
A similar arrangement of deploying continuous miner is under way in the Tansi and Kumbarni mines of WCL where US-based Joy Mining and SMS Infrastructure a company from Nagpur have been roped in.
Global bids have been invited for six of these blocks which include two in the city-based Western Coalfields Ltd (WCL) — the flagship subsidiary of CIL. The bid for the seventh block—Khairaha under the Bilaspur-based South Eastern Coalfields Ld (SECL) is under consideration.
The two blocks under WCL include Borda and Murpar in Wani and Umrer areas, respectively. Both the mines have a capacity of 3 million tones per annum (MTPA) each. Other blocks too have a minimum capacity of 2 MTPA. Coal blocks in the other CIL subsidiaries for which the bids have been invited include Tilaboni in Eastern Coalfields Ltd (ECL), Kapuria in Bharat Coking Coals Ltd (BCCL), Beharaband in SECL and Jagannath in Mahanadi Coalfields Ltd (MCL).
The move is expected to increase production in the mines as the private partner will be deploying state-of the-art machines which CIL does not have. Even though outsourcing has been done earlier, it has been limited to deploying of machines under the supervision of CIL subsidiaries.
"However, now the entire job will handed over to the private partner which will not only deploy the machines but also draw the mine-plan and a project feasibility report which so far is done by the CIL subsidiary,"said a source.
CIL is also looking for forging a 50:50 joint venture with private players in 18 abandoned underground mines. These include 6 in ECL, 8 in BCCL and 4 in Central Coalfields Ltd (CIL). The reserves in these mines are estimated at 1647 million tonnes which include coking and high grade non-coking type. The mines have been abandoned for reasons like water logging, fire or difficult mining conditions. In fact, the CIL has been planning to have similar arrangement for these mines since over a couple of years.
Meanwhile, the city-based WCL has plans to invite tenders for deploying the continuous miner equipment through a private partner at its blocks in Saoner and Mauri. "Mining is under way in a part of the block while the rest will be provided to the ally," said a senior official in this company.
"However, despite efforts WCL's production will be limited a little to around 44 to 45 million tonnes which is the present level as the total reserves with it allow keeping the production only up to that level,"said a source here.
A similar arrangement of deploying continuous miner is under way in the Tansi and Kumbarni mines of WCL where US-based Joy Mining and SMS Infrastructure a company from Nagpur have been roped in.
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