Hindalco to Launch Meenakshi Coal Mining Operations by 2028.

The Ministry of Coal has issued a vesting order for the Meenakshi Coal Mine in Odisha to Hindalco Industries, a flagship company of the Aditya Birla Group. Hindalco aims to commence coal production by CY2028, contingent on receiving necessary regulatory clearances and approvals.

The project is anticipated to generate approximately 16,000 direct and indirect jobs, contributing significantly to local livelihood improvement.

This development follows the signing of the Coal Mine Development and Production Agreement in November, marking a critical milestone in Hindalco’s efforts towards resource securitisation, energy efficiency, and sustainable growth, the company stated.

The Meenakshi coal mine is a fully explored block with a peak rated capacity of 12 million tonnes per annum and geological reserves of 285.23 million tonnes. With a favourable coal-to-waste stripping ratio of less than one, the G12 grade mine is positioned as a cost-effective and sustainable energy source for Hindalco’s operations, enhancing the company’s self-reliance in coal production.

The allocation of the Meenakshi mine aligns with Hindalco’s strategy to reduce operational costs and achieve greater energy self-sufficiency. The mined coal will replace the company’s dependence on auctioned and linkage coal, which currently costs about 40% more than coal from the Meenakshi mine. This move ensures a stable supply for Hindalco’s smelters and reinforces its position as one of the world’s lowest-cost aluminium producers, the company added.

HBL