Coal India ltd plans to shut about 100 unprofitable mines
Coal India will shut nearly 100 unprofitable mines over the next two-three years. Of this, 37 will close operations this year. Last year, Coal India closed down over 15 mines. A recent study showed that about 15 mines are highly profitable and 90 others can be made profitable. “We have engaged Indian School of Mines and expertise of Singareni Collieries to chart out a roadmap for the set of 90 mines,” a company executive told media. “They would submit their study soon on the basis of which we would either merge a few of these mines with existing ones or change the method of operations in these mines.” He said opening new mines and shutting unviable ones is a continuous process. Coal India began with 750 mines but now has 394. Low grade coal extracted from mines that produce less than one million tonnes a year are generally considered unprofitable as the scale of operation in them do not support the cost involved visà-vis the price its coal fetches.
Tags : Latest News