Published On:October 3 2024
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Coal India Investigates Leasing Strategies to Monetize Four Aging Washeries.
State-owned Coal India Ltd is exploring options to monetize its four aging washeries by leasing them out and bundling lease contracts with long-term coal supply agreements. This strategic move aims to optimize asset utilization and enhance operational efficiency.
In a report, Coal India Ltd (CIL) stated, "We are exploring the monetisation of four old washeries." The company, which contributes over 80% of the domestic coal output, is also diversifying its portfolio by establishing a non-coking coal washery at Ib Valley, Lakhanpur, under Mahanadi Coalfields Ltd (MCL), one of its subsidiaries.
In addition, CIL recently commissioned the Madhuband Washery, which has an annual capacity of 5 million tonnes, to further increase its coking coal beneficiation capacity. The company is also setting up three new washeries in Bharat Coking Coal Ltd (BCCL), another subsidiary, with a total throughput capacity of seven million tonnes per annum.
Moreover, five coking coal washeries with a combined capacity of 14.5 million tonnes per annum are being developed in Central Coalfields Ltd (CCL), which is also part of CIL. Currently, CIL operates 12 coal washeries with a total operable washing capacity of 29.35 million tonnes per annum. Among these, 10 are dedicated to coking coal, while the remaining two handle non-coking coal, with operable capacities of 18.35 million tonnes per annum and 11 million tonnes per annum, respectively.
In the fiscal year 2023-24, total washed coal production from the existing coking coal washers reached approximately 2.26 million tonnes (MT), representing a year-on-year growth of 4.8%. CIL has set an ambitious coal production target of one billion tonnes by 2025-26, having produced 773.6 MT of raw coal during 2023-24, compared to 703.2 MT in FY23.
HBL