Steel Authority of India Awards Contract for Mine Development and Operation Project

SEATTLE (Scrap Monster): Steel Authority of India (SAIL) has awarded a contract worth Rs 30,438 crore to Power Mech Projects (PMPl) and PC Patel Infra Consortium for a mine development and operation project (MDO), Tasra OCP located in Jharia Coalfields, Dhanbad district of Jharkhand.

The contract is to be executed within 28 years, including two years of development period. The project has received all statutory approvals and it is in the ready-to-be-mined stage. Moreover, a special purpose vehicle (SPV) will be formed to undertake the project.

The MDO contract will primarily involve mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up coal washery of 3.5 million tpa capacity, supply of steel grade coking coal to SAIL, carrying out R&R and other activities incidental to mining.

The total coal extraction reserves of the project is 96.78 MT with an annual capacity of four million tpa and over-burden removal during the project period is more than 535.29 MBCM.

In the contract, PMPL is the consortium leader with a 74 percent equity stake, while PC Patel Infra owns a 26 percent stake.

Courtesy: www.projectstoday.com