SECL signs agreement for maiden open-cast mining

South Eastern Coalfields Limited (SECL), the Chhattisgarh-based arm of Coal India (CIL), has signed an agreement to start mining operations at its first open Pelma Collieries mine in Raigarh district. This relocation is carried out under the framework of the mine developer and operator (MDO).

In this MSY model, introduced by CIL in 2021, a private company is selected to develop and manage coal mining operations. The chosen MSY is responsible for all operational aspects of the mine.

Under the agreement, Pelma Collieries will manage the mine for the next two decades. The expected coal mining from the mine during this period is more than 219 million tons (mt), with an annual production target of 15 mt. The mine, located in Raigarh Coalfields, is rich in high quality G-12 grade coal.

Raigarh Coalfields, the third largest coal field in India, has an estimated coal reserve of about 1.9 billion tonnes.

SECL is also working on a dedicated rail corridor to enable efficient coal transport.

A spokesperson stressed that the MSY model is a strategic move to contribute to CIL's ambitious goal of reaching a production target of 1 billion tonnes.