Coal India Ltd (CIL), the country’s largest coal miner, has reported 5% decline in production to 37.36 mn t in Jul ’20 as against 39.2 mn t in Jun ’20. The output was also 3% lower on the year from 38.51 mn t in Jul ’19.
Subdued demand because of continued effect of COVID-19 has adversely impacted CIL’s coal dispatch thus resulting in unprecedented stock level at mines, which in turn has affected its production. Besides, mining activities in the month were also disrupted during the three-day strike called by worker’s association.
Total production in the first four months of FY20 (Apr-Jul ’20) has dropped 10% y-o-y to 158.37 mn t as against 175.46 mn t recorded in the corresponding period of previous fiscal.
Subsidiary-wise production:
Mahanadi Coalfields Ltd (MCL) remained the largest coal producing subsidiary in Jul ’20, with an output of 10.17 mn t. The company also exhibited a strong performance y-o-y, as its production increased 17% from 8.73 mn t in Jul ’19.
NCL was the other subsidiary to record y-o-y growth in production during the month.
On the monthly basis, production from SECL improved 6% to 9.42 mn t in Jul ’20, along with BCCL which had recorded a sizeable rise in terms of output volume.
Production details for Jul ’20
| Subsidiary | Production | ||
| Jul ’20 | Jun ’20 | Y-o-Y Change | |
| MCL | 10.17 | 10.56 | 17% |
| SECL | 9.42 | 8.92 | -9% |
| NCL | 8.54 | 8.55 | 0% |
| CCL | 3.12 | 3.37 | -18% |
| ECL | 2.53 | 3.21 | -23% |
| WCL | 2 | 3.02 | -9% |
| BCCL | 1.58 | 1.57 | -5% |
| CIL | 37.36 | 39.2 | -3% |
Source : CIL | Quantity in Million Tonnes
Hope for revival
Despite the threat posed by the strike activity, CIL managed to ramp up coal supplies which increased 4% m-o-m to 43.39 mn t in Jul ’20 against 41.57 mn t in Jun ’20. However, the dispatch volume was down by 7% y-o-y from 46.82 mn t in Jul ’19.
Raising concerns over the continuing lock-down and various guidelines issued by central and state governments, CIL has anticipated gloomy outlook for the September end quarter.
Nevertheless, the negative growth in coal production and dispatch which has been brought down below double-digit mark during Jul ’20, offers an optimistic approach for the miner going forward at a time when it is working on Overburden Removal (OBR) to prepare the coal seam for future production.
It is pertinent to note that CIL’s OBR in Jul ’20 surged by 23% y-o-y to 88.47 million cubic meter, while the progressive growth in OBR during the four month period (Apr-Jul ’20) was recorded at 12%.
In addition, making a major progress towards excess stock liquidation, CIL has reported closing stock of 69.26 mn t at the end of Jul ’20, which has fallen to its lowest level since the beginning of FY ’21.
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