Friday, June 24, 2022

Commercial mining: Sarda Energy begins production from Gare Palma IV/7 coal mine

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  • Sarda Energy had won the coal mine under the Tranche I of commercial coal mine auctions held in November 2020
  • The company said that the vesting order for the mine has been issued to it on March 8 this year and the company has commenced production ahead of schedule

New Delhi: Sarda Energy & Minerals Limited has commenced operations at the Gare Palma IV/7 coal mine in Raigarh, Chhattisgarh, after receiving all required approvals. The company had won the coal mine under the Tranche I of commercial coal mine auctions held in November 2020. In a regulatory filing to the stock exchanges on Wednesday, Sarda Energy said, “… we are pleased to inform that after having received all required approvals, the Company has commenced operations at its Gare Palma IV/7 coal mines at Raigarh.”

“The Coal Washery is also ready for operations. The company has received consent to operate the washery from Chhattisgarh Environment Conservation Board,” said the company.

Production from Gare Palma IV/7 coal mine begins before schedule

Sarda Energy said that the vesting order for the mine has been issued to it on March 8 this year and the company has commenced production from the mine ahead of schedule. “The vesting order for the mine was issued by the Central Government on 8th March, 2021 and the Company has commenced production well before the time upto 7 March, 2022 given for commencement of the production,” the company told the bourses. 

The coal from the Gare Palma IV/7 mine shall be used for captive consumption as well as commercial sale.

Backdrop

The Gare Palma IV/7 coal mine is located in Chhattisgarh and was one of the 19 coal mines that were bid out under the Tranche I of commercial coal mine auctions last year. It has a geological reserve of 239.045 Million Tonnes (MT). The government has opened the coal mining sector for private players with a view to increase the domestic production of coal. In addition, the government has also allowed captive mines to sell up to 50 percent of the coal produced in a financial year in the open market. Despite having world’s fourth-largest coal reserves, India imports around 235 MT of coal. Of this, around 135 MT can be met from domestic reserves.

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