State-run Coal India Ltd plans to lower its production of the dry fuel to 838 million tonne in the upcoming financial year 2024-25 against the targeted 850 million tonne, the company’s Chairman P. M. Prasad said. This will be due to having accumulated “huge stocks” which have grown to more than 38 million tonne, an all-time high for this time of the year, the Chairman said in an earnings call.
The company produced 78.4 MT of coal last month taking its cumulative output for the Apr-Jan period at 610.3 MT. The company has set a target of 780 MT production for the financial year ending March. However, it is likely to miss its FY24’s production target, the Chairman said.
Moreover, the company’s premiums on e-auction of coal has fallen from 117% in December to 45% in the current quarter. In the quarter ended December, e-auctions formed 15% of the company’s total revenue at Rs 5,233 crore. The company’s total revenue stood at Rs 33,000 crore.
Going ahead, Coal India will also be participating in the auction of three critical mineral blocks in February. It has also visited lithium mines in Australia and is in preliminary talks about operating them, Prasad said.
FE had earlier reported that the country’s largest coal mining company is looking to foray into critical minerals and had identified some lithium blocks in Australia, Chile, and Argentina.
“We are going to set up an office in Australia and we are in touch with the ministry of mines,” B Veera Reddy, Coal India’s Director (Technical) had earlier said.
The company has also set a target of Rs 17,500 crore for the financial year starting April 1. “The capex would be focused on strengthening infrastructure, especially transport,” Prasad had earlier told FE in an interview.