CIL to invite EoIs for 26 closed UG mines

The mines are spread across the Eastern (ECL), Central (CCL) and Bharat Coking (BCCL) coalfields each with minimum reserves of over 10 million tonnes.

After the EoI, CIL will be entering into a joint venture with one party for doing the job.

The CIL board recently decided on the EOI in response to a move made by the world's largest steel maker Arcelor-Mittal evincing interest before the ministry of coal ( MoC) that they would be doing the job of reviving closed and abandoned coal mines across India.

Almost 350 million tonnes of coal are currently locked up in the closed and abandoned mines. CIL estimates suggest that about 5 per cent of the closed and abandoned mines are gassy and therefore would require sophisticated and state of the art mine technology to revive them from the current state.

India has 265 billion tonnes of coal reserves of which 95 billion tonnes are proven.

CIL chairman Partha S Bhattacharya said, "Since we are focussing on ramping up our production in the underground mines category we have decided to issue EoIs for the closed and abandoned mines and create opportunities for players to come forward with their best technologies in reviving the mines."

Details of the closed and abandoned mines are being worked out by a fact finding team consisting of CIL experts and mine engineers from the CIL subsidiary Central Mine Planning and Design Institute (CMPDI).

The mines, according to CIL sources, might have been closed within a span of 50 to 5 years and mostly were in private hands.

Says N C Jha, director (technical), CIL, "Since Arcelor-Mittal has shown interest in entering the coal mining sector and approached the ministry to revive closed and abandoned mines we will have to provide them with details about those mines and hence the need for an EoI. Moreover, through the EoI other parties will also come to know the details."

The EoI process, according to CIL sources, will be followed up by a Notice Inviting Tender (NIT) which would be done after considering the technical ability and competence of different parties that have shown interest in reviving the closed and abandoned mines.

The tender document would then be prepared with CIL following it up with a joint venture agreement with the selected player.

CIL is currently focussing on improving UG production rates and standards and is scouting for partners both domestic and abroad in that sphere.

What created concern for CIL is that UG production has slid over the years from 65 million tonnes in 1974-75 to 43 million tonnes.

CIL targets increasing UG production to 75 million tonnes in the next couple of years.

Currently CIL has 318 UG mines across the country of which 80 per cent are in the loss making category.

The total cumulative loss from the UG mines is in the region of Rs 3084 crore.

CIL recently decided to close down 60 unviable, non-returning and loss making mines which account for a loss of over Rs 1000 crore.

The decision is to be ratified by the MoC.