Most of auctioned coking coal mines to start production by 2025

New Delhi: Most of the 10 coking coal blocks that have been auctioned to the private sector in the last two years are likely to start production by 2025, according to the Coal Ministry. To augment the output of raw coking coal, a key input in the production of iron and steel, in the country, the ministry has auctioned 10 coking coal blocks to the private sector.

“Most of these blocks are expected to start production by 2025,” the coal ministry said citing its achievements in 2022.

These mines have peak rated capacity(PRC) of 22.5 MT. Domestic raw coking coal production is likely to reach 140 million tonnes (MT) by 2030.

Coal India (CIL) which accounts for over 80 per cent of domestic coal output has planned to increase raw coking coal production from existing mines up to 26 MT and has identified nine new mines with PRC of about 22 MT.

Also, CIL has offered eight discontinued coking coal mines, out of the total 30 discontinued mines, on an innovative model of revenue sharing to the private sector with a PRC of two MT.

The coal ministry has also identified four coking coal blocks and Central Mine Planning and Design Institute (CMPDI) also will finalise the geological report (GR) for four to six new coking coal blocks in the next two months.

These blocks may be offered in the subsequent rounds of auctions for the private sector to further step up domestic raw coking coal supply. At present, domestic raw coking coal washing capacity is about 23 MT per annum, including 9.26 MT of the private sector.

CIL is planning to set up and operationalise nine more new washeries with a capacity of 30 million tonnes per annum (MTPA). With the setting up of new washeries, it is estimated that CIL will be able to supply about 15 MT of washed coking coal to the steel sector, thereby reducing the import of coking coal.

During FY2021-22, CIL supplied 1.7 MT washed coking coal to the steel sector and set a target of 3.45 MT during FY2022-23.