NMDC gets two coal blocks for commercial mining

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Hyderabad | Published: December 20, 2019 1:00:57 AM

The coal ministry has allocated two blocks to National Mineral Development Corporation (NMDC), which includes Rohne and Tokisud North under Section 5(1) of Coal Mines (Special Provisions) Act 2015 for commercial mining.

Both the coal blocks have been allocated to NMDC based on the diligent efforts of NMDC’s coal division.

The coal ministry has allocated two blocks to National Mineral Development Corporation (NMDC), which includes Rohne and Tokisud North under Section 5(1) of Coal Mines (Special Provisions) Act 2015 for commercial mining. Both these blocks are located at Hazaribagh district of Jharkhand.

The Rohne coal block has extractable reserves of 191 million tonne and planned production capacity of 8 million tonne per annum, a NMDC statement said. The Tokisud North coal block has extractable reserves of about 52 million tonne of thermal coal and planned production capacity of 2.32 million tonne per annum. Both the blocks are located at aerial distance of about 10-15 kms.

Rohne coal block has coking coal which may require washing of coal for feeding into steel plant and hence NMDC is exploring the possibility for setting up of coal washeries. NMDC is going to execute allotment agreement of Tokisud North coal block in next two days. The Rohne coal block allotment agreement would be executed as per the directives from ministry of coal with respective execution date.

Both the coal blocks have been allocated to NMDC based on the diligent efforts of NMDC’s coal division. This coal division has been set up at Hyderabad exclusively for coal assets in India to provide linkage to steel and power sector.

Incidentally, the Chhattisgarh government also extended the lease of four mines of NMDC that are due for extension in March 2020 for a period of 20 years. NMDC operates three iron-ore complexes in the country. While two are in Dantewada district of Chhattisgarh sharing a major proportion of company’s total output, one is located at Donimalai in Karnataka. Of NMDC’s 33-million tonne per annum (MTPA) production, Chhattisgarh’s two complexes in Bacheli and Kirandul under Bailadila projects contributed about 24 MTPA in 2018-19.

NMDC started the exercise for renewal of leases of Bailadila projects well in advance in Chhattisgarh. Of the five mines in Bailadila sector, lease of four mines with an installed capacity of over 29 MTPA has been extended now and one mining lease has already been extended in 2017. The leases of Bailadila Deposit No.5, Bailadila Deposit No.10, Bailadila Deposit No.14 and Bailadila Deposit No.14NMZ have been extended for the period of 20 years which is up to September 2035.

Meanwhile, a memorandum of understanding was signed by Andhra Pradesh government and NMDC for supply of iron ore for the proposed integrated steel plant in YSR Kadapa district, Andhra Pradesh. NMDC has agreed to provide iron ore linkage for supply of five million tonnes of iron ore per annum in the first phase to the proposed steel plant from its mines.

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