Coal news and updates

Shree Cement expects to start grinding unit in Bihar by May

February 5: Shree Cement Ltd is expecting to start 1 million tons per annum (mtpa) grinding unit at Aurangabad in Bihar in April-May this year, a company official told ICMW.

"The work is progressing fast and we expect to commence the grinding unit at Aurangabad anytime in April-May," the official said.

The clinker for Aurangabad unit will initially be brought from the company's main plant at Bewar in Rajasthan, the official added.

The product from Bihar would be sold mainly in the state and also in the neighbouring states of Jharkhand and West Bengal, the official said.

In addition, the company is planning to start operations at its 2 mtpa clinkers and cement plant at Bhatapara in the Raipur district of Chhattisgarh in December 2014, the official said.

"The work on the Bhatapara unit too is progressing as per schedule and it is likely to reach commercial production stage towards end of 2014," the official added.

Asked whether the company's main plant in Bewar will have sufficient clinker to supply to the Aurangabad unit, the official said, "We have already planned for expansion of clinker capacity in Rajasthan by 2 mtpa, which will come to operation in June."

The upcoming 2 mtpa clinker capacity at Rajasthan will increase the plant's capacity to 15 mtpa and the company's total cement production capacity will go up to 18 mtpa – Rajasthan 15 mtpa, Bhatapara – 2 mtpa and Aurangabad – 1 mtpa - by December this year, he said.

Asked what would be the company's total steam coal requirement once they increase their production capacity to 18 mtpa, the official said, "Right now, our fuel requirement, both pet coke and steam coal – is around 3 million tons per annum (basis 6,000 Kcal/kg NAR steam coal). This will go up to 4 million tons per annum once the new capacities are operational."