A number of overseas companies have expressed an interest in carrying out an underground mining contract in seven Coal India blocks. XIndia Ltd, Australia’s White Mining Co, Bucyrus and UK’s Anglo Coal are among the companies said to be interested.
“CIL has invited expressions of interest (EoIs) for undertaking underground mining contracts in seven mines located in West Bengal, Jharkhand, Orissa, Chattishgarh and Maharashtra. These would be a long term contract for extracting anything between 2-5 million tonnes of coal annually from each of these mines. Reserves are in excess of 400 mt in all these blocks and selected parties will invest in installing machinery and equipment in these mines,” said Mr Partha Bhattacharyya, chairman CIL.
Opening up seven new underground mines is part of CIL’s plan to enhance coal production from such mines to balance the supply of coal from open cast and underground mines. Currently, coal production is heavily skewed in favour of open cast mines.
Some companies interested in entering into contract with CIL for underground mining have asked for more time to participate in the process of expression of interest and the last date for participating in the EoI has been extended to June 27.
CIL has also decided to roll out their forward e-auction and has decided to sell 15 million tonnes of coal each year through this platform, two-thirds of which will be high quality coal from underground mines.
Under forward e-auction, bidders - who will have to be consumers of coal - will be able to quote for either a few quarters or more a maximum of a year. The bidding process will be undertaken by MSTC and Coal Junction on behalf of CIL and its subsidiaries. CIL has decided to sell about 40 million tonne of coal through spot and forward e-auction put together during 2008-09.
Source: Economic Times
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