VIJAYAWADA: The state-run AP Mineral Development Corporation (APMDC) which is looking for new avenues to improve its coffers is venturing into coal mining in other states. APMDC was allotted two coal mine blocks in Madhya Pradesh and Chhattisgarh under the allotment of Coal Mines of State Government Companies of States other than coal bearing host states for sale of coal under the provisions of the Coal Mines (Special Provisions) Act, 2015.
Mining in these blocks is expected to begin in 2020. In Chhattisgarh, Mada-npur South Coal Mine was allotted to APMDC. It is located in Korba district, Chhattisgarh and has 183.38 million tonnes E to F grade reserves of coal in 713.5 hectares of area.
“The mining plan has been approved by Ministry of Coal, Government of India and Forest Clearance pending at MoEF for final approval. Production of coal is expected to commence from the year 2020 and peak production would be 5.40 million tonnes per annum,” said a senior APMDC official.
APMDC was also allotted Suliyari Coal Mine located in Singrauli Distrct of Madhya Pradesh with 145 million tonnes B to D grade reserves of coal in 1,298 hectares of area. The mining plan of this block was also prepared and submitted to the Ministry of Coal for final approval and the process of environmental clearance and land acquisition is in its final stage.
Production of coal is expected to commence from the year 2020 and peak production would be 5 million tonnes per annum. The operation of mines will be done through Mine Developer and Operator (MDO) basis.
The blocs are a virgin coal block and they will be operated upon through a mechanised opencast method deploying deep hole drilling and blasting along with a shovel-dumper combination for overburdened removal of coal and also for surface mining of coal.
Meanwhile, though it’s common knowledge that Andhra Pradesh also has coal reserves concentrated in West Godavari and Krishna districts region, latest Union government’s estimates using the latest available technologies put the reserves as 1,580.70 million tonnes.
There have been various attempts to assess the coal reserves in AP. While initially it was confirmed that quality coal reserves are concentrated in Chintalapudi region in West Godavari and Nuzvid region in Krishna district, the quantity could not be assessed so far.
However, sources in the union ministry of coal pointed out that there could be 1580.70 million tonnes of coal reserves. The estimation is based on the Geological Survey of India's inventory of geological resources of Indian Coal as on April 1, 2018.
APMDC can get the coal extracted with the help of private developers by auctioning the coal blocks.