SAIL to appoint MDO for developing Sitanala coking coal block

The mine has an estimated over 100 million tonnes of reserves

State-run SAIL has initiated the process to appoint a mine developer-cum-operator (MDO) for Sitanala coking coal block even though it is yet to get the lease allocation from the Jharkhand government, a source said.

The mine, which has an estimated over 100 million tonnes (MT) of reserves, would help the state-owned steel maker to partially tide over its coking coal requirement for sometime.

Located at Bharat Coking Coal Ltd's (BCCL) command area, Sitanala cooking coal block was allotted to SAIL way back in 2007. However, matters pertaining to the transfer of the block from BCCL to SAIL are still pending with Jharkhand government.

Meanwhile, last year, SAIL Board has approved engagement of S&T Mining Company, a joint venture between SAIL and Tata Steel, as consultant for undertaking the review of detailed project report (DPR) by CMPDIL and degasification studies.

Central Mine Planning and Design Institute Ltd (CMPDIL) is a fully-owned subsidiary of Coal India Ltd (CIL).

S&T Mining Company has already completed the mining study though degasification study is yet to be submitted. Mineral Exploration Corporation Ltd (MECL), a company under Ministry of mines, has also completed the drilling work in July this year.

"Based on the preliminary study, S&T Mining Company has suggested that mining operation in the Sitanala coking coal block can be started at upper levels even without degassing of coal seams," a source said.

"Accordingly, SAIL is taking necessary steps to engage  a suitable MDO for developing the block," the source added.

The Steel Ministry has already has had a couple of rounds of meetings with Jharkhand government on the issue of expediting the process of lease allocation to SAIL. The last was in Ranchi on May 28.

SAIL requires around 15-16 million tonnes of coking coal a year. It has to mostly depend on imports for meeting the need. A rise in the prices of coking coal often impact the bottomline of the company.

The company had in August this year appointed Lanco Infratech as the MDO for developing its Tasara coking coal block.