Coal India teaming up with private sector to revive 18 abandoned mines

Mumbai: Coal India Ltd (CIL), the largest coal mining company in the country, will reopen 18 abandoned underground mines owned by three of its subsidiaries - Eastern Coalfields Ltd, Bharat Coking Coal Ltd and Central Coalfields Ltd - in partnership with private players, reports quoting company sources said.

CIL, reports said, has identified six abandoned underground mines of Eastern Coalfields, eight mines of Bharat Coking Coal, and four mines of Central Coalfields for revival.

These together are expected to have approximate reserves of 1,647 million tonnes of coal.

CIL has invited expressions of interest (EoI) from both local and global bidders to take part in the mining on a 50:50 production sharing basis.

While parties may express interest in one or more mines, only one company would be finally selected after a bidding process, the reports said, adding, in case a single party gets more than one mine, the mines will be managed by a single joint venture between CIL and the private player.

The joint venture will have equal representation from CIL and the private party and the chairman of the board will hold office for one year on rotational basis.