Tuesday, February 16, 2010

Orissa Mining Looking To Diversify

Indian state-owned mining company, Orissa Mining Corporation (OMC), is to diversify into power and the coal mining sector, some two decades after becoming a mining-only company.

OMC will set up 2000 MW thermal power plant near Rengali in join venture with Orissa Hydro Power Corporation (OHPC) with an investment of Rs 80 billion. The two partners will each have a 50% stake in the new company, which will be known as Orissa Thermal Power Corporation Ltd (OTPCL). OTPCL has applied for the necessary documents for a coal block for the project. OMC is also looking at setting up an independent power plant consisting of two 660MW units though the company admit that such a plan is still at an early stage.

OMC has three coal blocks, one independently and two jointly with other enterprises. It has entered into agreements with the Assam Mineral Development Corporation (AMDC), Meghalaya Mineral Development Corporation (MMDC) and Tamilnadu Electricity Board (TNEB) to develop the Mandakini-B coal block in Angul with a reserve of 1200 million tons. Mandakini-B is expected to produce 15 million ton per annum (MTPA) of coal for power Generation.


The company is also planning to float another JV with Andhra Pradesh Mineral Development Corporation (APMDC) on 50:50 sharing basis to exploit a coal block at Nuagaon Telisahi in Anugul with a reserve of 733 million tons. The Mineral Exploration Corporation Ltd (MECL) is currently exploring the coal block jointly with OMC and the geological report is expected by the end of April, 2010.

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