Coal India to take EoI to develop abandoned mines

Kolkata: Coal India seems to have dumped ArcelorMittal’s proposal for forming a joint venture, on a nomination basis, to extract coal project from its closed or abandoned mines.

Instead, the coal major has decided to seek expression of interests (EoI) from the interested parties to develop a select 26 abandoned underground assets, having large quantities of mineable coking and non-coking coal reserves left, through the joint venture route. Depending on the EoIs, CIL would determine the broader guidelines of joint venture equity structure and other details.

ArcelorMittal and Ispat group of India which were the first to approach CIL with joint venture proposals to redevelop the abandoned mines will now have to come through the EoI route for the same. “We have decided to follow the EoI route to extract coal from 26 identified abandoned mines including 10 having invest 10 million tonnes coking coal project reserve — in joint venture with interested parties. We hope to float a global tender seeking EoIs within a month’s time,” the CIL Chairman, Mr Partha S. Bhattacharyya, told newspersons on the sidelines of the 38th annual conference of the Kolkata Chapter of National Institute of Personnel Management, here on Saturday.

Elaborating on the project, he said both the coal producing and user companies may take part in the EoI route. However, it would be mandatory for the users groups to come jointly with a technology partner. CIL would enter into an equity joint venture with the selected parties.

“The equity structure of the joint venture and other details would be finalised following receipt of EoIs,” he said.

Meanwhile, CIL’s initiative to develop seven underground coal blocks having reserves, in technologically challenging conditions, has reportedly evoked sufficient response from global mining majors.

“A large number of companies have participated in the global tender seeking EoIs to develop, operate and maintain seven coal blocks,” Mr Bhattacharyya said. The tender will be closed this month.

Earlier, addressing the conference, the Union External Affairs Minister, Mr Pranab Mukherjee, highlighted the importance of human capital in ensuring high economic growth.