Coal India on Wednesday said that its Odisha-based arm MCL witnessed a 42.6 per cent growth in overburden removal and produced 20.54 million tonnes (MT) of dry fuel till May 25 despite lukewarm demand from the consuming sectors due to COVID-19 led lockdown.

The development assumes significance as Coal India (CIL) has shifted its focus to overburden removal – the process of removing the top soil and rock to expose coal seams in its open cast mines – on account of slump in coal demand.

Advertisement

“Despite lukewarm demand for dry fuel from the consuming sectors, amid COVID-19 slowdown, Mahanadi Coalfields Ltd (MCL) managed to produce 20.54 MT of coal progressive up to May 25, 2020, the highest quantity among all coal companies of CIL,” the PSU said in a statement.

MCL reported a robust 42.6 per cent growth in over burden removal during the current fiscal up to 25 May, compared to same period year ago.

This is also the highest among all the subsidiaries of CIL, the statement

“MCL has cleared 27.51 million cubic metres (M CuM) of top soil and extraneous matter till May 25, compared to 19.29 M CuM year ago a volume increase of 8.22 M CuM resulting in 42.6 per cent growth,” it said.

Overburden removal is an important performance parameter as it exposes the coal seam for future mining. It also lends mine stability.

Ramping up coal production at short notice would not be a problem with coal ready for mining on the shelf, it said, adding that MCL would be able to pick up the production tempo once the demand for coal picks up.

For MCL, overburden removal assumes even greater importance as almost all its production yield is through opencast mining.

During 2019-20 MCL produced 140.36 MT of coal of which 139.52 MT was through opencast means, that is, 99.4 per cent.

MCL, which contributes to a little over 23 per cent of CIL’s overall production and off-take, is the second largest coal producer and supplier among CIL’s subsidiaries.

It has a target to produce 173 MT during the current fiscal and going forward is targeted to contribute significantly to the tune of 263 MT by 2023-24 in CIL’s quest of one billion tonnes of coal production by then.