CIL’s arm SECL inks agreement for maiden open-cast mine in Chhattisgarh

Coal India’s (CIL) Chhattisgarh arm, South Eastern Coalfields Limited (SECL), has signed an agreement to start mining at its maiden open-cast Pelma Collieries mine in Raigarh district, under the mine developer and operator (MDO) model.

According to the model, introduced by CIL in 2021, a private company is appointed to develop and operate a coal mine. The MDO is responsible for all aspects of the mine’s operations.

 

According to the agreement, Pelma Collieries will operate the mine for the next 20 years. More than 219 million tonnes (mt) of coal is proposed to be extracted from the mine in 20 years, a company spokesperson said, adding that the annual production target would be 15 mt. The mine under Raigarh Coalfields has been endowed with high quality G-12 grade coal. 

 

The Raigarh Coalfields is the third largest coalfield in India with an estimated coal reserve of about 1.9 billion tonnes. 

The SECL is developing a rail corridor for coal transportation.

 

The spokesperson said the MDO model would help achieve the CIL’s 1 billion tonne production target.

 

SECL operates 67 coal mines, of which 41 are in Chhattisgarh and 26 in Madhya Pradesh. Among them, 46 mines are underground while the rest 21 are opencast.

 

The company recorded the highest ever coal production of 167 mt in the last financial year, and plans to clock 200 mt in FY24.