WCL generates revenue by selling OB sand to MOIL Limited

WCL has earned a revenue of Rs 1.25 crores by selling the sand under an MoU which had signed between WCL and MOIL for the commercial sale of OB sand

Nagpur: Western Coalfields Limited (WCL), a Coal India Limited's (CIL) subsidiary and under the administrative control of the Ministry of Coal, is earning a part of its revenue by selling the sand to the MOIL Limited, a Miniratna state-owned manganese-ore mining company. In a statement, CIL said that WCL has earned revenue of Rs 1.25 crores in last three months by supplying segregated sand from overburden (OB) dumps of Gondegaon open cost mine (OPC), Nagpur area of WCL to MOIL Limited.

WCL and MOIL had signed MoU

WCL and MOIL Limited had signed an MoU in July for the commercial sale of sand on and it is based on the sand extraction due to the overburden of the sand which is valid up to September 11, 2020. The first consignment of sand has been given to MOIL Limited was sent off from the Gondagaon project in Nagpur region in presence of WCL's Chairman and Managing Director Rajiv Ranjan Mishra and senior officials.

Accordingly, the permission for commercial selling of segregated sand was secured by WCL from the government of Maharashtra to sell to both private and government consumers at Rs 797.
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06 per M3 with and without e-auction.

What is overburden?

Overburden (OB) is the soil excavated during Open cast mining. OB is used for backfilling material after coal excavation. Post excavation of OB the volume of OB swells up to 20 percent and this excess quantity is utilised for segregating sand. Sand being a minor mineral comes under the jurisdiction of the state government.

According to the WCL statement, it has diversified beyond coal mining and has commenced commercial selling of segregated sand from its overburden dumps.