Coal India plans to reopen abandoned mines

KOLKATA: Coal IndiaNSE -0.11 % plans to use mine developers and operators (MDO) to reopen mines it abandoned because of safety and viability concerns, company executives said.

The company may offer these mines, many of which hold good quality reserves, to MDOs on contract. It will earn additional revenue without fresh investment even if the MDOs operate relatively small quantities ranging between 250,000 tonnes and 300,000 tonnes of quality coal a year profitably, executives said.

“These are sunk investments as these mines don’t yield returns any more. CIL has been looking for ways to earn some revenue from them as large number of these pits, mostly underground, hold premium grade coal,” one executive said.

Initially, 15-20 such mines would be offered, and the number would increase if the response is good, company executives said.