Coal India is looking to rationalize its mines for safety and financial viability. Accordingly it might be closing 53 of its 174 underground mines, Chairman Anil Kuamr Jha said. The production from underground mines decreased in 2017-18 to 30 million tonnes (MT).
Jha said that he had appointed Indian School of Mines (ISM) to study on the rationalization of the underground mines. The report are expected in 6 months. Coal India has 369 mines. Out of this 177 are open cast, 18 are mixed and 174 underground. About 43 mines were shut down last fiscal.
‘We inherited around 700 underground mines at the time of nationalization. Now we are trying to rationalize mines that are very small and are not financially viable,’ Jha told reporters.
AGM highlights
This year the company acquired 24 environmental clearances with a capacity to produce 237.22 MT of coal per annum. Apart from that 14 stage 1 forest clearances spanning about 1919.4 Ha and 7 stage 2 for 832.55 Ha have been acquired.
CIL supplied 454.24 MT of coal to power sector this fiscal. A 6.8% growth from 425.40 MT last year. Coal production stood at 567.36 MT, a 2.4 % growth from last fiscal. In 2017-18 the pre tax profit stood at ₹10726.44 cr and the profits after taxes were at ₹7020.22 cr.
Customer satisfaction
An independent assessment of grades of mines for the annual grade declaration was finalized by the Coal Controller Office. According to reports, for 2018-19 386 mines were assessed. Out of which 61 mines were downgraded and 42 upgraded.
Coal Imports
Coal India accounts for nearly 80% of the domestic supply. Yet coal imports rose to 78.7 million tonnes (MT) during April to July this year. According to mjunction services- a joint venture between Tata Steel and SAlL, this was a substantial increase of 11.9% from 70.3 MT during the same time last year. Coal imports increased to 42% in July YoY.