Manganese ore producer MOIL plans to enter coal mining and power generation if it gets coal blocks from the 17 earmarked by the Ministry of Coal for allocation to public sector units.
“In case, MOIL is allotted the coal blocks applied for, it will be expanding its operations into coal mining and also diversify into power generation,” MOIL has communicated to the steel ministry.
The Coal Ministry has earmarked 17 coal blocks, located in Maharashtra, Chhattisgarh, Odisha and Jharkhand for allotment to Central Public Sector Enterprises and their state counterparts. MOIL has applied for eight blocks.
MOIL said venturing into coal mining and power generation is intended at backing up down stream diversification for Ferro alloy production.
“This will further enhance the business prospects of MOIL,” it added.
MOIL has already entered into separate joint ventures with SAIL and RINL for setting up Ferro alloy plants aimed at manufacturing ferro manganese and silico manganese at a total cost of Rs 600 crore.
The company has also plans to increase its manganese ore production target to 2.2 million tonnes by 2020—21 from 1.1 mtpa now.
In order to achieve the target, the company has taken up sinking of vertical shafts in replacement of incline mining at Munsar and Ukwa mines.
Shares of MOIL closed 0.79 percent higher at Rs 203.05 apiece on the BSE.