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New UserSAIL to appoint MDO for developing Sitanala coking coal block
27 Nov 2013
State-run SAIL has initiated the process to appoint a mine
developer-cum-operator (MDO) for Sitanala coking coal block even though it is
yet to get the lease allocation from the Jharkhand government, a source
said.
The mine, which has an estimated over 100 million tonnes (MT) of
reserves, would help the state-owned steel maker to partially tide over its
coking coal requirement for sometime.
Located at Bharat Coking Coal
Ltd's (BCCL) command area, Sitanala cooking coal block was allotted to SAIL way
back in 2007. However, matters pertaining to the transfer of the block from BCCL
to SAIL are still pending with Jharkhand government.
Meanwhile, last year, SAIL Board has approved engagement of S&T Mining Company, a joint
venture between SAIL and Tata Steelas consultant for undertaking the review of detailed project report (DPR) by
CMPDIL and degasification studies.
Central Mine Planning and Design Institute Ltd (CMPDIL) is a fully-owned subsidiary
of Coal India Ltd (CIL).
S&T Mining Company has already completed
the mining study though degasification study is yet to be submitted. Mineral
Exploration Corporation Ltd (MECL), a company under Ministry of mines, has also
completed the drilling work in July this year.
"Based on the preliminary study,
S&T Mining Company has suggested that mining operation in the Sitanala
coking coal block can be started at upper levels even without degassing of coal
seams," a source said.
"Accordingly, SAIL is taking necessary steps to
engage a suitable MDO for developing the block," the source added.
The Steel Ministry has already has had a couple of rounds of
meetings with Jharkhand government on the issue of expediting the process of
lease allocation to SAIL. The last was in Ranchi on May 28.
SAIL requires around 15-16 million tonnes of coking coal a year. It has to mostly
depend on imports for meeting the need. A rise in the prices of coking coal
often impact the bottomline of the company.
The company had in August
this year appointed Lanco Infratechas the MDO for developing its Tasara coking coal block.
Source: PTI