The Hindu Business Line : ECL inks mining pact with UK co

EASTERN Coalfields Ltd (ECL), a subsidiary of Coal India Ltd (CIL), has entered into a contract mining agreement with Joy Mining of the UK for the production of high-grade non-coking coal by introducing `continuous miners' equipment.

As per the terms of the agreement, the UK company will produce 0.42 million tonnes (mt) of coal per annum on risk/gain sharing basis for the Jhanjra underground project in Raniganj coalfield.

The Rs 65-crore agreement was signed in New Delhi by the ECL Chairman and Managing Director, Mr D. Chakravarty, and the Joy Mining Managing Director, Mr Simon Pickup, in the presence of the Union Coal Secretary, Mr P.C. Parekh.

The contract will initially be for Jhanjra but such equipment will also be introduced in other underground mines such as Khottadih and Sarpi for higher production, productivity, and safety.

Mr Chakravarty told Business Line that `continuous miners' equipment would boost underground coal production in ECL, which is considered an important step for the company to come out of the purview of the Board for Industrial and Financial Reconstruction (BIFR). It has plans to increase total production to the level of about 44 mt in 2009-10 from about 27 mt in 2004-05 to be able to come out of BIFR purview.

Mr Chakravarty also said that the company has plans to augment capacity of its opencast mines by expanding the Rajmahal project's annual production capacity from 10.5 mt to 17 mt. This mine's capacity would be expanded through private participation. A global tender in this regard has been floated, inviting bids from private parties to undertake jobs like over burden removal and mining and transportation of coal.

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