Adani begins integrated coal MDO operations in India

Share:

Editor’s Synopsis

  • Announces launch of integrated MDO operations with start of coal output
  • Begins coal production from the Parsa East-Kente Basan mine in Chhattisgarh
  • The coal mine has reserves of in excess of 450 million tonnes
  • To produce 15 mt/yr from this particular black in Chhattisgarh coal block 2017 onwards
  • Coal will be supplied to Rajasthan state electricity board power plants
  • Rajasthan may become power surplus post coal supply from Chhattisgarh block
  • Adani has access to coal reserves over 3 billion tonnes from 4 MDO contracts including this projects
  • Adani aims to produce 200 million tonnes of coal by 2020 across global assets

Ahmedabad, April 08, 2013: Adani Enterprises, the flagship company of the Adani Group, a global integrated infrastructure player, today announced commencement of its ambitious integrated coal mine developer cum operator (MDO) operations with the start of coal production at the Parsa East-Kente Basan mine in Chhattisgarh, owned Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), a state-run power generation utility of Rajasthan.

 

This is the first amongst the four MDO contracts bagged by Adani Enterprises and marks the beginning of Adani Group’s “Resources” business vertical in India. The company has outlined a phased capital outlay of Rs 3,000 crore for the entire block.

 

With this development, Adani Enterprises is set to emerge as the largest private coal miner with access to produce coal of up to 90 million tonnes and reserves of over 3 billion tonnes over next 30 years, enough to produce about 18,000 megawatts of electricity by state electricity boards.

 

Mr. Gautam Adani, Chairman, Adani Group said, “The commencement of coal mining at Parsa Kente is a milestone event in coal mining sector. With this we at Adani rededicate ourselves to work resolutely towards energy security of the country.”

 

Registered Office : Adani House, Nr Mithakhali Circle, Navrangpura, Ahmedabad 380 009, Gujarat, India

 

The Parsa East- Kente Basan block is located in Chhattisgarh and was awarded to RRVUNL in 2007. RRVUNL issued a tender seeking MDO services which was bagged by Adani Enterprises. The contract is now being executed by Adani Mining, a 100 percent subsidiary of Adani Enterprises. The block holds reserves of over 450 million tonnes of coal and will produce 2 million tonnes a year initially to be ramped to 15 million tonnes a year from 2017 onwards.

 

As per the contract, Adani Mining will also set up a coal washery, a coal handling plan and railway siding infrastructure to transport the coal at the doorstep of RRVUNL’s fuel-starved power plants in Rajasthan.

 

The washed coal from Parsa East- Kante Basan block will be of a superior quality and will help RRVUNL run its power plants at a plant load factor of over 95 percent and will make the state power surplus from its current situation of being electricity deficient and massive load shedding.

 

Relatively new in India, MDO is a concept where in a coal block owner contracts entire operations to a third party, which takes the responsibility of land acquisition, resettlement and rehabilitation, mining, developing and operating the particular mine by investing in it and then supplying the coal at a tender determined price to the power plants of the mine owning state electricity boards.

 

The other three MDO blocks contracted to Adani Enterprises are – Parsa block in Chhattisgarh, owned by Chhattisgarh State Power Generation Co Ltd with reserves of 150 million tonnes, Machakatta block in Odisha owned by MahaGuj Collieries Ltd with reserves of 1.2 billion tonnes and Chendipada coal block, also in Odisha, owned by UCM Coal Company Ltd with reserves of 1.5 billion tonnes.

 

The Adani Group aims to produce 200 million tonnes of coal across its mining assets globally by 2020. The group has a producing mine in Indonesia and has just flagged off an impressive coal exploration programme in the Carmichael mine, the biggest coal mine tenement in the world in the Galilee Basin of Queensland Australia. The group plans to commence production of coal from its Australian operations by 2016.

 

Registered Office : Adani House, Nr Mithakhali Circle, Navrangpura, Ahmedabad 380 009, Gujarat, India

 

About The Adani Group

 

The Adani Group is one of India’s leading business houses with revenue of over $8 billion for financial year 2012.

 

Founded in 1988, Adani has grown to become a global integrated infrastructure player with businesses in key industry verticals - resources, logistics and energy. The integrated model is well adapted to the infrastructure challenges of the emerging economies. It multiplies the benefit of synergy and economies of scale both for the Group and for the customers.

 

We live and work in the communities where we operate and take our responsibilities to society seriously. The Group protects biodiversity in ecologically sensitive areas like Mundra and undertakes initiatives to reduce CO2 emissions. At Adani, we deliver benefits to our customers and customers’ customers.

 

Resources means obtaining coal from mines and trading; in future it will also include oil and gas production.

 

Adani is developing and operating mines in India, Indonesia and Australia as well as importing and trading coal from many other countries. Currently, we are the largest coal importer in India. We also have extensive interests in oil and gas exploration.

 

Extractive capacity is scheduled to increase from 3 million MT of thermal coal in 2011 to 200 million MT per annum by 2020, making Adani one of the largest mining groups in the world.

 

Logistics denotes a large network of ports, Special Economic Zone (SEZ) and multi-modal logistics - railways and ships.

 

Adani owns and operates three ports – Mundra and Dahej in India and Abbot Point in Australia. The Mundra Port, which is the largest private port in India, benefits from deep draft, first-class infrastructure and SEZ status.

 

Adani is also developing ports at Hazira, Mormugao, Visakhapatnam and Kandla in India and Dudgeon Point in Australia. Our aim is to increase our annual cargo handling capacity from 78 million MT in 2012 to 200 million MT by 2020.

 

Energy involves power generation & transmission and gas distribution.

© 2018 Adani Group