CIL to procure dumpers from Belarus for Rs 2,900 crore

By: |
February 04, 2021 2:15 AM

These are the highest capacity dumpers operational in the country at present, playing a critical role in opencast mines. The entire investment would be funded through CIL’s internal accruals and includes the cost of equipment along with the spares and consumables for 8 years.

Maintain ‘buy’ rating and revise FV to Rs185/share (from Rs180/share) based on March 2023E earnings.Maintain ‘buy’ rating and revise FV to Rs185/share (from Rs180/share) based on March 2023E earnings.

Mining PSU Coal India (CIL) has signed a Rs 2,900 crore purchase contract for procurement of 96 Dumpers of 240 tonne capacity each with Belaz, the Belarus-based mining equipment manufacturer. CIL’s board had given nod for procurement in August last year.

These are the highest capacity dumpers operational in the country at present, playing a critical role in opencast mines. The entire investment would be funded through CIL’s internal accruals and includes the cost of equipment along with the spares and consumables for 8 years.

About 95% of CIL’s entire coal output is through opencast mines and dumpers of such high capacity are pivotal in ferrying over burden (OB) from the excavating area to the dump yard. OB is the extraneous material that overlays the coal seam. Removal of it makes the dry fuel’s production easier.

The batch of 96 dumpers would be deployed in two of the large opencast mines of South Eastern Coalfields (SECL), namely Gevra and Kusmunda. While 84 machines would be pressed into action in Gevra, the rest 12 would be operationalised in Kusmunda.

The first lot of six dumpers would roll into Gevra OC expansion project within eight months from the signing of the contract on January 30. The rest 90 would follow with four machines per month on getting CIL’s green signal of their performance, after one year from the date of their commissioning, a CIL executive said, adding that this is the second contract that CIL has sealed with Belaz. Earlier, it had procured 77 dumpers of 150 tonne capacity each through a global bidding.

There are 66 machines of 240 tonne each already operational in SECL and the additional 96 would take the the fleet to 162.

CIL’s OBR performance has been persistently positive since the beginning of the fiscal. The growth clocked a robust 20% at 1,106 million cubic metres in January. The company is confident of sustaining OBR growth and the role of dumpers in transporting the extracted OB would be necessary.

CIL placed orders worth Rs 8,688 crore during the previous fiscal for heavy earth moving machinery (HEMM) procurement.

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