Ukrainian firm lands Bharat Coking deal

KOLKATA: Engineering Plant (DEP) has pipped Chinese mining major China Coal Overseas Development Corporation (Codco) in the race for one of the biggest mining contracts from Bharat Coking Coal (BCCL) in Jharkhand. The project involves mining a section of reserves at Munidih mines in Jharkhand.

The total contract value may be a shade above Rs 300 crore.On the basis of price bid and technical information, the BCCL board has recently decided to award the project to DEP, BCCL CMD, PS Bhattacharyya told ET. Capital investment for the project is envisaged at Rs 100-110 crore.

An additional Rs 150-200 crore will be spent on spares and servicing over the next six years. The funds will be provided by SAIL and a memorandum of understanding (MoU) to this effect was signed recently. DEP would extract about 4m tonnes of coking coal from Top Seam 16 at Munidih over a period of six years, Mr Bhattacharyya said. Coal extracted by the foreign company will be supplied to SAIL for further use.

There are different layers of coal at Munidih and Top Seam 16 is one such reserve, Mr Bhattacharyya said. While the Ukrainian firm will bring its own equipment, technicians and specialised personnel, it will have to employ Bharat Coking Coal’s miners. Additionally, it will have to extract the promised quantum every year on a risk-gain sharing basis using longwall mining technique.