Power Mech consortium wins MOO contract worth Rs 9294 cr from Central Coalfields

Power Mech Projects has been awarded a Mine Development & Operation (MOO) project from Central Coalfields (CCL), a subsidiary of Coal India, aggregating to Rs. 9,294 crore over the contract period.

The MOO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of Coking Coal, processing, crushing and transportation of coal up to washery of CCL, carrying out R&R activities and any other activities incidental to mining as per the project document at Kotre Basantpur Pachmo OCP located in Ramgarh and Bokaro Districts, Jharkhand. The project has total coal extraction capacity of approximately 105 million MT with an annual capacity of 5 million MT and over burden removal during the project period is over 539 MBCM. The concession period is 25 years including two years of development period with an option of extending the contract for a period of another 10 years with the consent of both the parties (with this the total contract period will extend up to 35 years).

The project has been awarded to a consortium of Power Mech Projects and AMR India wherein Power Mech is the consortium leader with 74% equity stake and AMR India will hold 26% stake. A Special Purpose Vehicle (SPV)- KBP Mining has been formed to undertake the project. AMR India , a two decades old Company, has also been engaged in contract mining involving operations like removal of overburden, mining of coal/lignite, logistics etc. The SPV will have material handling expertise of Power Mech in Project Development and the technical expertise of AMR India in the field of greenfield mining project development.

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