Western Coalfields Bids for Two Coal Blocks in Commercial Auction
25 Feb 2025
2 Min Read
CW Team
In a strategic move to overcome limited reserves and challenging geo-mining conditions, Western Coalfields Ltd (WCL) has participated in the bidding for two coal blocks under the 11th tranche of the commercial coal blocks auction, marking the first-ever participation of a Coal India subsidiary in such an auction.
WCL has placed bids for the Bandhak West and Dahegaon Makardhokra IV non-coking coal blocks, both located in Maharashtra and close to the company鈥檚 existing mining operations. Chairman and Managing Director Jai Prakash Dwivedi highlighted that securing these blocks would allow WCL to commence mining with minimal capital expenditure, leveraging its existing infrastructure.
Bandhak West emerged as the most sought-after block, attracting 15 bids鈥攖he highest among the 19 coal blocks that garnered interest out of the 27 offered. Dahegaon Makardhokra IV received three bids. The coal ministry has initiated the technical evaluation process, with the final allocation expected to be announced within a month.
Looking ahead, WCL remains open to participating in future coal block auctions, particularly for assets located near its current operations. The Nagpur-headquartered company operates 52 mines, including 19 underground and 33 open-cast mines, across Maharashtra and Madhya Pradesh. Between April and December, WCL produced 45.1 million tonne of coal, reflecting a modest 3.1% growth.
The company anticipates coal production for FY 2024-25 to remain steady at around 69 million tonne, similar to last year. However, mining challenges such as high stripping ratios, strata control issues, and limited reserves continue to drive up costs, posing obstacles to growth. Dwivedi noted that upcoming projects would primarily serve to compensate for depleting reserves rather than contribute to increased production.
WCL has projected a gradual decline in production, expecting output to fall to 50 million tonnes by 2047. This underscores the urgent need for securing new reserves and exploring alternative strategies to sustain long-term operations.
In a strategic move to overcome limited reserves and challenging geo-mining conditions, Western Coalfields Ltd (WCL) has participated in the bidding for two coal blocks under the 11th tranche of the commercial coal blocks auction, marking the first-ever participation of a Coal India subsidiary in such an auction.
WCL has placed bids for the Bandhak West and Dahegaon Makardhokra IV non-coking coal blocks, both located in Maharashtra and close to the company鈥檚 existing mining operations. Chairman and Managing Director Jai Prakash Dwivedi highlighted that securing these blocks would allow WCL to commence mining with minimal capital expenditure, leveraging its existing infrastructure.
Bandhak West emerged as the most sought-after block, attracting 15 bids鈥攖he highest among the 19 coal blocks that garnered interest out of the 27 offered. Dahegaon Makardhokra IV received three bids. The coal ministry has initiated the technical evaluation process, with the final allocation expected to be announced within a month.
Looking ahead, WCL remains open to participating in future coal block auctions, particularly for assets located near its current operations. The Nagpur-headquartered company operates 52 mines, including 19 underground and 33 open-cast mines, across Maharashtra and Madhya Pradesh. Between April and December, WCL produced 45.1 million tonne of coal, reflecting a modest 3.1% growth.
The company anticipates coal production for FY 2024-25 to remain steady at around 69 million tonne, similar to last year. However, mining challenges such as high stripping ratios, strata control issues, and limited reserves continue to drive up costs, posing obstacles to growth. Dwivedi noted that upcoming projects would primarily serve to compensate for depleting reserves rather than contribute to increased production.
WCL has projected a gradual decline in production, expecting output to fall to 50 million tonnes by 2047. This underscores the urgent need for securing new reserves and exploring alternative strategies to sustain long-term operations.
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