Hindalco Industries, the metals flagship of Aditya Birla Group, announced that it has received a vesting order for the allocation of the Meenakshi Coal Mine in Odisha by the Ministry of Coal. This development, it added, follows the successful signing of the Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024, marking a pivotal step in the company’s journey towards resource securitisation, energy efficiency and sustainable growth.
In a regulatory filing, the company informed that it is expecting the commencement of coal production in CY2028, subject to receipt of regulatory clearances and requisite approvals.
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The Meenakshi coal mine is a fully explored block with a Peak Rated Capacity (PRC) of 12 million tonnes per annum and ~285.23 million tonnes of geological reserves. “With a favourable coal-to-waste stripping ratio of less than 1, the G12 grade mine is poised to be a cost-effective and sustainable energy source for the company’s operations, making the company self-reliant in coal production,” it said.
This allocation aligns with Hindalco’s strategy to reduce operating costs and boost energy self-sufficiency. The mined coal will replace the company’s dependence on auction and linkage coal which is currently estimated at approximately 40 per cent higher than Meenakshi coal mine, thereby ensuring a stable supply for its smelters and solidifying its position as one of the lowest cost producers of aluminium in the world.
Beyond operational benefits, the Meenakshi mine is also expected to drive transformative regional impact by strengthening India’s energy security, enhancing national coal production, and catalysing economic growth in the area. The project, Hindalco said, is expected to create approximately 16,000 direct and indirect employment opportunities.
Earlier in November, Hindalco Industries Ltd had released its fiscal second quarter earnings with a profit of Rs 3,909 crore, registering a growth of 78.0 per cent in comparison to Rs 2,196 crore during the same period of previous financial year. The profit was driven by a strong operational performance by the India business, favourable macros and prudent cost management. The company had posted revenue from operations at Rs 58,203 crore, up 7.4 per cent on-year.
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