A top official said that in the dialect to cross limited reserves and adverse Jio-Mining conditions, Western Coalfields Limited has participated in bidding for two coal blocks introduced in the 11th installment of commercial coal block auction.
This is the first time any Coal India subsidiary has participated in the commercial coal block auction.
“We have bid for two non-cooking coal blocks-Bandhak West and Dahegaon Makardhokra IV. The necessary infrastructure in place,” Western Coalfields President and Managing Director Jai Prakash Dwivedi told PTI. Both coal blocks are in Maharashtra.
The Bandak West Block was in high demand, a total of 15 dialects were received – the highest out of all 19 coal blocks that attracted interest out of 27 blocks for auction. Dahigon Makardhokra IV received three dialects.
The coal ministry said that the technical evaluation process is currently going on currently, and the final allocation will be announced within a month.
Dwivedi said that WCL is eager to participate in the future phase of coal block auction, but preferably for blocks close to its current operations.
Nagpur-linked company operates 52 mines including 19 underground and 33 open-kasters in 10 areas of Maharashtra and Madhya Pradesh. WCL produced 45.1 million tonnes of coal between April and December, with a slight 3.1% increase.
“Our total production for FY 2025 will be around 69 million tonnes as last year. Despite our best efforts, we hope that production will be due to the next fiscal as well as unique mining challenges, which for high costs Leaders are, “said,” said, “said.
Dwivedi highlighted the major obstacles, including high stripping ratio (more than the cost of burden removal), strata control issues, and limited reserves.
He said that the upcoming projects will mainly compensate the depleting reserves instead of contributing to development.
The WCL had estimated a gradual decline in production, producing the output by 2047 to drop up to 50 million tonnes, indicating the need for new stores and alternative strategies.
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