SECL signs agreement for maiden open-cast mining

31 Aug 2023 CW Team

South Eastern Coalfields Limited (SECL), the Chhattisgarh-based arm of Coal India (CIL), has entered into an agreement to initiate mining operations at its first open-cast Pelma Collieries mine in Raigarh district. This move is executed under the mine developer and operator (MDO) framework.

In this MDO model, introduced by CIL in 2021, a private firm is selected to develop and manage coal mining operations. The chosen MDO holds responsibility for all operational aspects of the mine.

As per the agreement, Pelma Collieries will manage the mine for the next two decades. The projected coal extraction from the mine over this period is more than 219 million tonnes (mt), with an annual production target of 15 mt. The mine, situated within Raigarh Coalfields, is rich in high-quality G-12 grade coal.

Raigarh Coalfields, the third-largest coalfield in India, boasts an estimated coal reserve of around 1.9 billion tonnes.

SECL is also working on a dedicated rail corridor to facilitate efficient coal transportation.

A spokesperson highlighted that the MDO model is a strategic move to contribute towards CIL's ambitious goal of achieving a production target of 1 billion tonnes.

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