Coal India’s mining arm North Eastern Coalfields Ltd (NECL) has sought clearance to operationalise Tirap and Tikak open cast projects in FY23 after these mines were closed down on environmental concerns.
These two projects have a combined capacity of 0.8 million tonnes (mnt) that would help the company to attain 1 mnt coal production on an annual basis.
It is important to note that NECL has small-scale capacity unlike other CIL subsidiaries, and produced a mere 0.5 mnt of coal in FY20 post which its mining operations were temporarily suspended on environment concerns since June 2020.
In fact, the company has resumed mining in March 2022 and is currently operating at its Tikak colliery on a limited scale in the initial phase.
Addition of good quality of coal
The development assumes significance in the wake of efforts being made to improve coal availability at a time when demand for power is soaring. Besides, the operation of these projects would further augment supply of good quality coal that is available in the coal seams.
Notably, the Tirap mine bolsters gross caloric value (GCV) in excess of 6,500 kCal/kg and fixed carbon percentage up to 51%.
Similar coal grades offered from Tikak colliery have received overwhelming response in the auctions which took place post-the resumption of mining operation.
In May 2022 auction, G1 coal (having GCV 7,100-7,200 kCal/kg) fetched a bid price of INR 13,888/t, which was 297% higher than the notified price of INR 3,498/t. Bids for G2 and G3 were recorded at INR 11,542/t and 10,297/t, thereby garnering premiums of 250% and 226%, respectively.
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