Billionaire Anil Agarwal-led Vedanta expects to bring into operation two coal blocks in Odisha in this fiscal and is working out a plan to fast-track the operationalisation of another coal mine in the eastern state.
Vedanta is focusing on the long-term security of coal especially when thermal power plants and the non-regulated sector have witnessed supply shortages in the current and the last year.
"We intend to operationalise Jamkhani and Radhikapur (West) (coal blocks....," Vedanta said in its integrated report and annual accounts 2021-22.
Vedanta Limited is one of the world's leading oil & gas and metals company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa and Namibia.
The company bagged the Jamkhani coal block in 2019 and the Radhikapur West coal block in 2020 in auctions.
Jamkhani coal block is in proximity to the company's Jharsuguda aluminium smelter. It is one of the most attractive coal blocks for the company's Jharsuguda plant in terms of location, annual capacity, reserves and readiness to produce.
The approved per annum capacity of the mine is 2.6 million tonnes and has an extractable reserve of 114 million tonnes. Once operational, it will provide fuel security, improve power availability and further strengthen the company's aluminium operations and performance.
Vedanta had emerged as the highest bidder for the Radhikapur West coal block, located in Angul district, Odisha at a distance of about 190 km from the company's Jharsuguda Aluminium Smelter.
The coal block is an optimal fit for the Jharsuguda smelter given its logistical location and annual capacity. The mine has total reserves of 312 million tonnes and an approved per annum extraction capacity of 6 million tonnes.
"We continue to focus on the long-term security of our coal supply at competitive prices. We added Jamkhani (2.6 MTPA), Radhikapur (West) (6 MTPA) and Kuraloi (A) North ( 8 MTPA) coal mines through a competitive bidding process," Vedanta said.
These blocks, along with 15 million tonnes of long-term linkage will ensure 100 per cent coal security for the aluminium business.
"We also look forward to continuing our participation in linkage coal auctions and secure coal at competitive rates," the company said.
The company further said its core strategic priorities include expediting "operationalisation of...Kuraloi coal block(in Odisha), improve linkage coal materialisation," and added that "Vedanta is working out a plan to expedite operationalisation of Jamkhani, Radhikapur and Kuraloi coal mines." Vedanta had emerged as the successful bidder for a coal block in Odisha which was put for re-bid in the second attempt of auction of blocks for commercial mining.
Vedanta had emerged as the successful bidder for Kuraloi (A) North coal mine in Odisha which was put for re-bid in the second attempt of the auction of blocks for commercial mining.