South Eastern Coalfields Ltd (SECL), the largest coal producing subsidiary of CIL, has received an overwhelming response for coal sales seen in its recent spot auction held during Dec’19.
The coal company has reported sale of entire volume in the auction held on 18 Dec’19, wherein 1,012,000 MT coal was put forward for sale.
SECL had floated the entire coal volume pertaining to grades G5, G6, G7, G8, G9, and whole specifications ranging from G11 to G16, across its 14 mining areas. Incidentally, the entire sales were noted at an average bid price of INR 1972.41/MT which was received against the assessed reserve price of INR 1207.88/MT, thus fetching a premium of 63% in the auction.
The company had proposed more coal volume this term, which was probably incited due to a superior coal production reported in the month of Nov’19. Apparently, volume offered for Dec’19 auction was nearly 30% higher than that were put forward in the auction held on Nov’19.
| Grade | Source | Size | Reserve Price | Avg Bid Price | Gain on Reserve Price | Quantity |
| G5 | NCPH Seam II | 250 mm | 3285 | 3843.75 | 17% | 10,000 |
| G5 | Rajgamar 4 and 5 OC | 250 mm | 3285 | 4214.40 | 28% | 5,000 |
| G6 | Sharda OCM | 100 mm | 3029 | 3670.00 | 21% | 10,000 |
| G7 | Mahan II OCM | 100 mm | 2774 | 3886.19 | 40% | 40,000 |
| G7 | Khairaha UG | 100 mm | 2774 | 3343.75 | 21% | 30,000 |
| G8 | Mahan OCM | 250 mm | 2109 | 3172.00 | 50% | 5,000 |
| G8 | Amlai OC | 250 mm | 2109 | 3630.64 | 72% | 50,000 |
| G8 | Rajendra UG | 250 mm | 2109 | 3579.00 | 70% | 3,000 |
| G9 | Piparia | 250 mm | 1642 | 2750.00 | 67% | 10,000 |
| G11 | Dipka OC | 250 mm | 1374 | 3009.89 | 119% | 100,000 |
| G12 | Gare Palema IV/2 and 3 | 250 mm | 1276 | 1997.47 | 57% | 51,000 |
| G13 | Balrampur UG | 250 mm | 1176 | 1458.20 | 24% | 10,000 |
| G13 | Manikpur OC | 250 mm | 1176 | 2710.59 | 130% | 100,000 |
| G14 | Gare Palema IV/2 and 3 | 250 mm | 1077 | 1358.16 | 26% | 76,000 |
| G15 | Bijari OC | 100 mm | 850 | 1316.22 | 55% | 200,000 |
| G16 | Gare Palema IV/2 and 3 | 250 mm | 725 | 1133.08 | 56% | 312,000 |
| Total | 1207.88 | 1972.41 | 63% | 1,012,000 | ||
Source: CoalMint Research | Price in INR/MT | Quantity in MT
Bids in the range of INR 270-1930/MT were fetched in excess of reserve price across various coal grades, which were seen comparatively lesser for the lower grades of coal (G14, G15 and G16) being offered in the auction.
Highest premium was witnessed for G13 grade of coal offered from Manikpur OC, wherein average bid price of INR 2710.59/MT against reserve price of INR 1176/MT was received for sale of 100,000 MT coal. In contrast, the same grade of coal offered from Balrampur UG was sold at an average bid price of INR 1458.2/MT, at a premium of 24% over the reserve price.
Whereas, highest bid price of INR 4225/MT was received for the G5 grade of coal offered from Rajgamar UG coal mine.
Major Coal Receivers:
Traders had procured the largest coal in the auction, acquiring nearly 54% of the total volume offered in Dec’19.
Power utilities with 362,550 MT were the second-largest coal recipients followed by Sponge Iron and captive power producers.
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