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CIL to shut 53 underground mines

Coal News - Published on Thu, 13 Sep 2018

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Business Line reported that Coal India Ltd (CIL) will close down 53 of its 174 underground (UG) mines this fiscal, shutting those that are either economically unviable or pose safety issues. The company had shut 43 such mines in the last fiscal. The company has a total of 369 mines, including 177 open-cast, 18 mixed and 174 UG. The production from UG mines has slid consistently, and in 2017-18, stood at 30 million tonnes, or five per cent of CIL’s total production.

CIL Chairman Anil Kumar Jha said the miner had appointed the Indian School of Mines (ISM) to study the rationalisation of its underground mines. He said “We inherited around 700 underground mines at the time of nationalisation. Now we are trying to rationalise mines that are very small and are not financially viable.”

As a part of the rationalisation exercise, CIL would consider amalgamating 3-4 mines into a larger outfit or convert them into open-cast mines wherever possible, apart from closing down those that are ‘highly unproductive’, financially unviable and also pose ‘safety concerns’.

The company would wait for ISM’s suggestions before proceeding further.

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Posted By : Rabi Wangkhem on Thu, 13 Sep 2018
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