Business Daily from THE HINDU group of publications
Monday, Jun 23, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Monday, Jun 23, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Outlook
Reviving the project entails an estimated investment of Rs 166 crore BCCL recently invited bids from the interested project contractors The company is the only source of primary coking coal in the domestic market Pratim Ranjan Bose Kolkata, June 22 With coking coal prices zooming in the global market, Steel Authority of India Ltd is taking a renewed interest in implementing its long pending proposal to fund an estimated Rs 166-crore project for re-development of Bharat Coking Coal Ltd (BCCL) operated Moonidih mine in Jharkhand. The project, conceived more than two years ago, will ensure an additional coking coal supply of approximately 0.5 million tonne per annum to SAIL, on operation cost-plus basis. The steel major procures 1.67 million tonne coking coal from BCCL – a wholly owned subsidiary of Coal India Ltd – which is roughly 12 per cent of its annual requirement of 13.5 million tonne. BCCL is the only source of primary coking coal in the domestic market and is currently producing approximately 2 million tonne a year. Chances of any major increase in production are also limited in the short or medium term. SAIL had entered into a MoU with BCCL in April 2006 for funding the redevelopment of Moonidih mine in Jharia coalfields by replacing a longwall face and introducing other mass production equipment. The near-defunct mine is believed to still have 50-60 million tonne of recoverable coking coal. However, according to sources, there was little progress in implementing the MoU until recently when the steel major requested the CIL authorities for fast implementation of the proposal. Backed by renewed interest of SAIL, BCCL recently invited bids from the interested project contractors. Two Chinese companies participated in the tender. When contacted CIL official sources admitted that things were finally moving ahead for re-development of Moonidih. “The technical evaluation of the bids is on. We are expecting to open the price bids shortly to reach at the final estimate of the cost of the project,” the CIL Chairman, Mr Partha S. Bhattacharyya, told Business Line. While comments were not available from SAIL, sources say that volatility of coking coal prices vis-À-vis limited availability in the domestic market has attracted the attention of the domestic steel makers on BCCL. The recently concluded price negotiations by BCCL for projected supplies during this fiscal witnessed competitive bidding by domestic steel makers to grab a share of the limited domestic supply. SAIL even agreed to enhance prices equivalent to $150 - up by approximately 50 per cent - to ensure its supplies for 2008-09. Meanwhile prices are hovering between $160 and $210 in the Asian markets up from $120 a couple of months ago. More Stories on : Outlook | Minerals | Steel | Steel Authority of India Ltd
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