CIL set to finalise mining deals

Kolkata: Coal India Ltd (CIL) is all set to finalise the deals to develop seven underground and 19 abandoned mines in next six month's time.

'The last date for filing of the expression of interest (EOI) was extended to November 12 after many international majors showed keen interest to participate thanks to the interactions at the Las Vegas coal mining summit last month', said Partha S Bhattacharyya, chairman of CIL.

'The response to EOIs is quite encouraging, and we hope to finish signing the contracts within six months', he added.

CIL was scouting for a joint venture partner for mining these underground and abandoned mines.

CIL lacked technical expertise to develop the underground reserves.

CIL currently produced mainly from opencast mines.

Underground mines contributed to around 11 per cent of CIL's net production last fiscal.

The 19 abandoned mines had reserves of premium thermal and coking coal of 1.6 billion tons.

The joint venture partner was not needed to make any capital investment as CIL would fund project operations.

Of the seven prospective underground assets, three were under South Eastern Coalfields, and one each under Bharat Coking Coal, Eastern Coalfields, Mahanadi Coalfields and Western Coalfields.

A report by Central Mine Planning and Design Institute (CMPDI) indicated CIL could look at developing the 1400 million ton reserves lying in the Andal belt of Burdwan, the proposed site for the integrated airport city project.

Of this deposit, most was within a depth of 600 metres and some at greater depth.

CIL had never developed mines beyond a 600m depth.

Reserves lying at 800m to 1000m below ground could be developed with new private technology participation.

Demanding that the Aerotopolis project be shifted 15km south, Bhattacharyya said some ongoing projects like Sarpi under Eastern Coalfields would be affected if the Aerotopolis project was built.

'A continouous mining tender has been floated at Sarpi in Burdwan and a contract will be signed soon. Future projects could also be impacted', Bhattacharyya said.