Indian coal mining giant, CIL’s coal production has reversed the downtrend seen in the past few months, to record a 4-month high output in Oct’19.
Company’s coal production was noted at 39.35 MnT in Oct’19, up 28% M-o-M from 30.77 MnT in Sep’19.
CIL’s mining operations were badly hit in the previous month due to floods. Notably, production at Dipka mine belonging to its mining arm SECL, was affected following a breach in the embankment of a seasonal river, which had flooded the mine’s lower benches.
Although the company did manage to resume production from the mine, but a slower than expected growth and continuous reports of agitation arising from its Odisha based subsidiary MCL, had kept CIL overall production in Oct’19 below the levels attained in the year-ago period.
Apparently, CIL’s production had fell 21% Y-o-Y from 49.78 MnT in Oct’18.
NCL remained the largest coal producing subsidiary
As a consequence of the disrupted output from SECL and MCL, Northern Coalfields (NCL) clocked the highest coal production for the second successive month.
NCL’s coal production increased 8% Y-o-Y to 9.34 MnT in Oct’19 as against 8.65 MnT in Oct’18. Production from SECL and MCL were noted at 8.89 MnT and 7.65 MnT respectively during the month.
As matter of fact, all the 8 coal producing subsidiaries of CIL had posted an m-o-m growth in coal production in Oct’19, but only NCL had managed a y-o-y growth during the period.
In the first 7 months of FY20 (Apr-Oct’19), CIL’s overall production was down 8.5% Y-o-Y to 280.36 MnT compared with 306.24 MnT noted in the year-ago period.
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