CMPDI to invite tenders soon for development of abandoned mines

State owned Coal India Limited (CIL), which aims to revive and develop 18 abandoned mines through joint ventures with national and international miners, has decided to invite tenders soon for the purpose.

These abandoned coal mines with a combined reserve of 1.6 billion tonnes are located in the command areas of the three subsidiaries of CIL- Bharat Coking Coal Limited (BCCL), Eastern Coalfields Limited (ECL) and Central Coalfields Limited (CCL).

"Initially, the respective subsidiaries- BCCL, ECL and CCL were supposed to invited tenders for the development of abandoned mines. But now it has been decided that Central Mine Planning and Design Institute (CMPDI) will invite the tenders”, a top CIL official told Business Standard.

CMPDI, one of India's leading consultants in the spheres of resource exploration and development, is also a fully owned subsidiary of CIL.

The subsidiaries of CIL- BCCL, ECL and CCL would form a 50:50 joint venture (JV) with the companies who are finally selected for the development of the abandoned mines following the completion of the tendering process. The number of JV companies to be formed for the revival and development of abandoned mines was yet to be decided.

CIL had shortlisted 10 companies for the development of the abandoned coal mines.

The shortlisted firms are Rio Tinto India Limited, ArcelorMittal, Titan Mining Private Limited, GVK Power and Infrastructure Limited, Sunflag Iron & Steel Limited, S&T Mining Company Limited, Essar Minerals Resources, JSW Steel with Singareni Collieries Company Limited, JSW Steel with US-based Joy Mining and Monnet Ispat & Energy Limited.

The abandoned mines that were offered for development include Sangramgarh, Seetalpur, Kapasara, Shyampur A, Sripur and Girimint of ECL; Dharmaband, Gaslitand, Industry, Kendwadih, Kustore, Kujama, Victoria and Begunia of BCCL and Hindegir, Associated Karanpur , Khas Karanpura and Pipradih of CCL.

CIL was looking to rope in global firms who would bring latest technologies for development of these abandoned mines. These mines were water logged and CIL lacked technology to develop them.