Coal news and updates

Natural resources major Vedanta is planning to acquire coal mines via auctions as the mining conglomerate seeks to ensure fuel security for its energy-guzzling aluminium plants.

 

“Numerous initiatives are being taken to meet our coal requirements. We will source our overall coal mix from low-cost imports and auctioned coal to optimise the cost in FY2016-17. We are also looking to optimise our coal mix further by securing linkage coal through the auction route,” Vedanta said.

 

The government has not finalised the dates for holding a fourth round of coal mine auctions, annulled in December 2015.

 

The company, led by billionaire Anil Agarwal, added imported coal prices softened   20 per cent in 2015-16. Power constitutes 40 per cent of the input cost of making aluminium metal and is a major factor for producers.

 

Vedanta group firm Balco had won the Chotia and Gare Palma IV/1 blocks, both in Chhattisgarh, in the first tranche of auctions on February 17 and 21 last year, respectively. Vedanta group had bid for the largest number, 14. However, Gare Palma IV/1, for which Balco had emerged the highest bidder, was cancelled and given to Coal India.

 

Group firms, Balco and Sesa Sterlite, also participated in the second round of  auctions that took place in March 2015.

 

Vedanta and Balco also participated in the third round  in August 2015.  

 

The government in December last year annulled the process for a fourth round on account of poor response from bidders in sectors like steel, as well as depressed commodity prices and adverse market conditions.

 

The fourth round of mines auction was slated for January 18-22, 2016. The previous three rounds of auction will generate more than Rs 3 lakh crore from sale of 30 coal mines.source: business-standard.com