The State-run mining major Gujarat Mineral Development Corporation (GMDC) will enhance its lignite mining capacities, while exploring other basic metals at its existing mines in North Gujarat. The mining major, which currently has about 85 per cent operations in lignite mining, will soon start lignite mining at six more locations in the State, informed top company officials.

GMDC has already been allotted lignite blocks in Panandhro Extension (Kutch), Bharkandam (Kutch), while four other blocks have been reserved for GMDC at Valia and Damkai Padal in Bharuch District, Ghala in Surat district and Lakhpat in Kutch.

"We have significant reserves in all these blocks and it has been lying with us for a long time. Now we have received the letter of Intent for mining lease from the government for at least three of them in the past six months and we expect to commence lignite mining soon," Roopwant Singh, Managing Director, GMDC told Businessline.

The collective lignite reserves in these blocks exceeds 500 million metric tonnes.

To explore outside markets

With the additional lignite resources available with the company, GMDC now plans to explore markets outside Gujarat. On being asked how the additional massive reserves would be used, Singh stated, "After fulfilling the local demand within the State, we will explore markets outside Gujarat. This is the first time GMDC will sell lignite beyond Gujarat."

In another first for the mineral major, GMDC is planning to set up dry coal washery in Kutch and a modular pyrite removal plant at Bhavnagar with a combined investment of approximately ₹60 crore.

"These are being deployed in Gujarat for the first time. This will improve the liginte quality and bring higher calorific value to the coal. It will reduce pyrite lumps, sulphur and ash content in the coal," he added.

The company plans to issue the Expression of Interest (EOIs) for the projects over the next few weeks.

Singh also underlined the growing prospects for the company in the base metals space as it is exploring new base minerals at its Ambaji mines in North Gujarat, which has identified prospects for copper, lead and zinc.

"With these prospects, we can aspire to achieve 45-50 per cent share of metals in our overall operations. Currently lignite comprises 85 per cent share," said Singh.

For the third quarter ended December 2021, the company posted consolidated revenues from operations at ₹725 crore, which was 120 per cent higher than ₹329 crore reported in the corresponding quarter a year ago. Consolidated net profit for the quarter was ₹150 crore against net loss of ₹2.75 crore in the same quarter last year.

Singh, who also holds the portfolio of Commissioner of Geology and Mining (CGM), Government of Gujarat, stated that the mineral royalty income is set to revive for the CGM in the current fiscal. Royalty income is expected to return to its 2018-19 levels of ₹1,568 crore from a reduced levels of ₹1,352 crore reported in 2020-21. According to Singh, the royalty income for the department stood at ₹1,203 crore for the nine-month period of fiscal 2021-22, which is on track to touch ₹1,600 crore for the fiscal 2022.

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