Coal news and updates

Singareni Collieries Company Ltd is all set to float tenders this month for mine development operator, for the development of the Naini coal block in Odisha.

The State-owned mining company, seeking to step up its coal output as new thermal power projects come up in Telangana, is keen to take up production at the Naini coal mine, estimated to have potential for 450 million tonnes of coal.

Production in 36 months

Following a detailed review meeting of the Naini coal block development plan and efforts of the mining company to step up coal output, N Sridhar, Chairman and Managing Director of Singareni Collieries, decided that while the tenders would be floated in the second week of May, it is proposed to begin production within 36 months after securing all mandatory clearances.

The mining company decided to engage the third party mine developer as it is located in another State and far away from its existing mining infrastructure.

In January, when Singareni invited expression of interest, 14 mining development companies, both domestic and international, had showed interest to take part in the development initiatives.

As the company aims to increase the production target to meet the growing need, it seeks to open up seven new mines during 2016-17, and eight more during 2017-18.

Source: Business Line