Coal news and updates

RIL, HINDALCO, Jaiprakash bid aggressively in auctions

February 17: As many as eight coal mines from a total of 21 offered under Schedule II of the Coal Mines Ordinance have been allotted till February 16 with HINDALCO Industries bidding the most aggressively to win the Kathautia mine, according to information provided by the auctioneer.

Kathautia in Jharkhand’s Daltongunj, with estimated reserves of 29.33 million tons, had been originally allocated to Usha Martin Ltd under the previous screening committee route in September 2003.

HINDALCO won the bid with a closing bid price of Rs 2,860 per ton and this was the most expensive bid so far.

As many as three mines – Sarishatolli, Mandla North and Belgaon - of the total eight results out so far, have gone to the companies who had been allotted the blocks earlier through the screening committee route.

Jaiprakash Associates emerged the second most aggressive bidder with a bid of Rs 2,505 per ton for Mandla North coal mine, which has estimated reserves of 194.96 million tons.

Mandla North, located in the Pench Kanhan coalfield in Madhya Pradesh, had been originally allotted to the same company in September 2007 for use of the coal at its cement plant in the same state.

The third most aggressive bid of Rs 1,785 per ton came from Sunflag Iron and Steel Company Ltd for Belgaon mine, which had been allotted to it in March 2005. The initial reserve volume in the mine, located in the Wardha coalfields in Maharashtra, was estimated at 15.3 million tons.

Reliance Cement Company Private Limited emerged as the fourth most aggressive bidder with a bid price of Rs 1,402 per ton for Sial Ghoghri mine in the Wardha coalfields in Maharashtra, which had been originally allotted to Prism Cement in May 2007. The mine has estimated reserves of 30.38 million tons.

The other mines, the e-auction results for which have been announced, are Talabira, Sarishatolli, Marki Mangli III, Trans Damodar.

Following table provides results of e-auction for Schedule – II coal mines (till February 16, 2014):