Coal India to close down 23 unviable mines, to help save around Rs 500 cr

Coal India Limited has decided

to close down 23 unviable mines and it would help save the company around Rs 500 crore considering all costs, officials said on Tuesday.

The worlds largest miner has shut down 82 such mines in the last three-four years.

Those 23 mines, comprising open cast and underground ones, to be closed down were identified in the last fiscal, officials said.

Underground mines are a major focus for closures as they are not remunerative. Some 158 underground mines employ 43 per cent of the workforce but contribute only 5 per cent of the total production, they said.

"Action is being taken to close the unviable mines in CIL in a phased manner. Production from 11 such underground mines has already been suspended," an official said.

The dry fuel major was also engaging Mine Developer and Operator (MDOs) in greenfield projects.

It plans to engage MDOs for 15 projects - 10 open cast and 5 underground - with a combined total targeted capacity of about 160 million tonne per year (MTY), officials said.

Out of the 15 projects, work order has been issued for two of 45 MTY. The remaining projects are at various stages of tendering and approval, they said.

Meanwhile, in FY21, the net realisation per tonne of coal was lower at Rs 1,442 against Rs 1,538 a tonne in FY20. The officials attributed to lower sales in e-auction and subdued price due to lockdown disruptions.