- Phutamura block holds estimated reserves of 170 mnt
- Mining operations expected to begin in July 2027
Shyam Metalics Group has made a strategic investment in Alom Solar Private Limited, the successful bidder for mining rights to the Phutamura coal block in Chhattisgarh. The development is expected to strengthen the group’s backward integration and secure long-term coal supplies for its captive power generation and steel manufacturing operations.
Located in the Mand-Raigarh coalfield in Raigarh district, the block covers approximately 7.324 sq km and holds estimated coal reserves of around 170 mnt. Mining operations and coal production are expected to begin in July 2027.
The investment is aimed at improving raw material security, reducing dependence on external supplies and supporting the group’s long-term operational requirements. The coal block is expected to provide a stable and cost-effective fuel source for its captive power plants and steelmaking operations.
Focus on backward integration
Brij Bhushan Agarwal, chairman and managing director of Shyam Metalics and Energy Ltd, said the investment and acquisition of mining rights marked a key step towards greater self-reliance. He added that securing long-term raw material supplies would support the group’s expanding manufacturing operations and strengthen operational resilience.
Shyam Metalics operates across the steel value chain, with interests in long and flat steel products, ferro alloys, and stainless steel. It is into aluminium as well. According to the company, its aggregate installed metal capacity of 16.93 million tonnes per annum (mnt/year) and captive power generation capacity of 467 MW.
The development adds to the group’s efforts to strengthen raw material linkages and support its integrated manufacturing operations. Coal production from the block is expected to commence in July 2027, subject to the planned development schedule.
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