CIL shortlists 10 companies for developing 18 abandoned mines

State-run Coal India Ltd today said it has shortlisted 10 global companies, including steel giant ArcelorMittal, to develop its 18 abandoned mines, which have 1.6 billion tonnes of proven coal reserves.

"We have shortlisted 10 global companies, including ArcelorMittal, to develop 18 difficult mines abandoned due to technical reasons in Jharkhand and West Bengal. These have 1.6 billion tonnes reserve of superior great coal, including 350 million tonnes of coking coal," Coal India Chairman Partha S Bhattacharyya told reporters on the sidelines of a summit here.

He said that the production from these mines is likely to start by 2013-14.

"Production from these mines will take three years from signing of contract. We are hopeful of signing contract with one or two companies in this financial year while the remaining will be signed next fiscal," he said.

Bhattacharyya said that clearance for signing of contracts is expected from the Coal Ministry soon.

He said that the joint ventures with companies with a provision of giving 50 per cent coal to the joint venture partner is strictly not in line with the new coal policy.

"New coal policy does not have a provision of joint venture partner picking up 50 per cent of coal and that is why the clearance is needed," Bhattacharyya added.