Hindalco wins another coal mine

Aditya Birla group firm Hindalco Industries has won the Gare Palma IV/5 mine in Chhattisgarh by outbidding companies like BALCO, Sesa Sterlite, Ambuja Cements, which were also vying for the same block.

"Gare Palma IV/5 mine was won by Hindaco Industries at Rs 3,502 per tonne today. The mine was put on offer yesterday and the bidding for the block lasted for over 12 hours," a senior Coal Ministry official said.

Hindalco has bagged two mines out of the 13 put on offer so far.

On the second day of auction, Hindalco Industries had won Kathautia mine in Jharkhand.

States, including Chhattisgarh, Jharkhand and West Bengal, are set to get over Rs 50,000 crore from the coal blocks sold in the ongoing auction, sources said.

The total number of blocks sold so far is 13 with Essar Power MP Ltd bagging the Tokisud North mine in Jharkhand on the fifth day of the coal auction yesterday.

The government is auctioning the coal blocks after the Supreme Court cancelled allocation of 204 mines in September last year. It has put 19 mines on block in the first tranche.

GMR Chhattisgarh Energy, Reliance Cement, Sunflag Iron and Steel, Jaiprakash Associates and BALCO are among the companies that have bagged coal mines so far in the auction.

Gare Palma IV-5 mine has estimated extractable reserves of 42.43 MT.

The companies that were bidding for Gare Palma IV-5 mine are Ambuja Cements Ltd, BALCO, Hindalco Industries, Monnet Ispat and Energy Ltd, Rungta Mines Ltd, Sarda Energy and Minerals Ltd and Sesa Sterlite Ltd.

The government has put on offer 19 coal block in first lot. The last day for the auction of mines in first tranche is February 22.