Mining activity stopped at the Kaniha coal mines has deepened the situation at Mahanadi Coalfields Ltd (MCL), which is struggling to raise its coal production for FY19. As per sources; external disturbances had halted mining activity at the Kaniha mines because of which no coal was dispatched in the last 10 days.
Kaniha mine, an open cast project of MCL having 8 MnT reserve, was stopped by local villagers demanding employment.
After several conversations held at the project level had failed to garner any positive results, top management had also intervened. But the mine continues to remain at halt.
Kaniha mine belongs to the Talcher coalfields, which contributes to over 65% of total coal produced by MCL. Production at Talcher fields has also been affected by the close of work at the Balram OCP since 17th Feb 2019.
The closure of work at its various projects is likely to take its toll of MCL’s annual coal output for FY19, which already has been lagging y-o-y in the first 10-months of FY19.
MCL’s coal production during Apr’18-Jan’19 period has reached 111.61 MnT, down 2% Y-o-Y from 113.99 MnT from the corresponding period in FY18. Apart from MCL, only BCCL has recorded y-o-y fall in production during the first 10-month of FY19.
The closure of Kaniha mine due to external disturbances has also affected operations at the NTPC’s Talchar thermal plant.
The power station meets its coal requirement from Kaniha, which apparently is facing shut down of its one unit due to power plant.
As per the data provided by CEA, coal stock at the 3000 MW Talchar plant of NTPC, was assessed at 0.369 Lakh Tonne as on 20th Feb’19.
The continual stoppage of work at MCL may lead to shortage of coal to power plants in southern states as well.
Leave a Reply