Vedanta Ltd on Wednesday said it had emerged as the highest bidder for Jamkhani coal block in Odisha’s Sundargarh district in the government’s tenth tranche of coal block auction for captive use. The coal block is in proximity to the company’s Jharsuguda aluminium smelter that it will feed.
Once operational, the coal block will provide fuel security, improve power availability and further strengthen the company’s aluminium operations and performance.
The approved per annum capacity of the mine is 2.6 million tone against extractable reserves of 114 million tonne, it said in a release.
The Jamkhani coal block is the company’s second coal block after the Chotia coal block in Chhattisgarh that has an annual capacity of 1 million tonne.
Wednesday on the BSE, Vedanta shares closed the session at Rs148.25, down 2.8% from Monday’s close. The markets were shut on account of Guru Nanak Jayanti.
The auction is part of the government’s initiative to attract private sector participation in India’s mining sector which has otherwise so far been unable to get much of it. Vedanta is a subsidiary of the London-based Vedanta Resources Limited.
Source: Mint