Coal India subsidiary, Eastern Coalfields Limited (ECL), has started the Narayankuri highwall mining project at its Kunustoria area in Paschim Bardhaman, West Bengal. This is the second highwall mining project of ECL after the Nimcha project.
Highwall mining is a technique for attaining additional coal recovery after the economic strip limit is reached in surface mining. Using this, the company is looking to unlock new reserves stranded in the mine as it aims to produce 1.69 million tonnes (mnt) of additional coal over the next four years.
The company had floated a tender to execute the deployment of highwall technology along with carrying out a scientific study, overburden removal and other associated works at Narayankuri. The contract has been awarded to Gainwell Commosales Ltd. at a mining charge of INR 1,476/t.
Thrust on increasing production
ECL has registered a steady decline in coal production over the past two years. In FY22, production fell 28% y-o-y to 32.4 mnt majorly on account of shortfall in output from the Rajmahal area, which is its chief coal-bearing region.
In order to boost production, the company has identified several new as well as abandoned projects, where mining operations have stopped, for development via external resources through the mine-developer-operator route.
Under this exercise, tenders for five new projects were floated, of which sale of the Lalmatia project has been cancelled due to non-receipt of bids. On the other hand, the Hura-C project was successfully tendered and awarded to Montecarlo Limited, while tenders for the remaining projects are currently under progress.
Meanwhile, ECL has also offered five abandoned mines at the two tranches of auctions initiated so far.
In another significant development, the company’s Madhujore underground coal project has become the first abandoned mine to be sold under this provision. The mine in West Bengal was allocated at a revenue share of 32%.
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