CIL to open UG mine tenders in February

Coal India Limited (CIL) expects to open tenders for development of its underground mines by early February.

The public sector coal major has shortlisted nine overseas firms for development of these underground mines and some of these firms have joint ventures with Indian companies.

CIL has identified seven coal blocks which are located in the mining areas of its subsidiaries like Eastern Coalfields Limited (ECL), South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL), Western Coalfields Limited (WCL) and Bharat Coking Coal Limited (BCCL).

“CIL will hold a meeting with the nine shortlisted firms later this month. A document is being formulated to work out the modalities for the development of the selected underground mining assets. The tenders for the development of these underground mines are expected to be floated by early next month”, N C Jha, director (technical) told Business Standard.

The onus will be on the selected firms for planning, designing and operating these underground coal mines and initially, they will also bear the costs of operation of such mines.

The expenditure on such mines can be known only after the preparation of the detailed report and CIL will reimburse all expenses borne by the selected firms on development of these underground mines.

The selected firms would employ latest state of the art technology for developing the underground mines identified by CIL as it was difficult to carry mining operations in these areas using obsolete technology available with CIL.

On the acquisition of overseas coal assets by the International Coal Ventures Limited (ICVL), Jha said, “We have received some offers pertaining to the acquisition of coal assets but ICVL is yet to zero in on nay particular asset. Every proposal for acquisition has to be examined on its merit and our merchant bankers are advising us on this issue”, added Jha.

ICVL, a special purpose vehicle formed by Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, National Mineral Development Corporation, National Thermal Power Corporation and CIL was scouting for overseas coal assets.

It was also looking to pick up stakes in mining companies in Australia, Canada, Indonesia and Mozambique.