13th May 2013
KOLKATA (miningweekly.com) - Indian miner Neyveli Lignite Corporation (NLC) was set to start coal imports, as its power plants, which were aimed at diversifying the company’s project portfolio, neared completion.
Coal imports would start at one-million tonnes a year and increase to 10-million tonnes a year.
In view of the domestic coal shortage, some of NLC’s thermal power projects would have to be linked to imported feedstock through either long-term supply contracts with overseas miners or equity investments in foreign coal assets, a company official said.
NLC had already floated notices seeking expressions of interest (EOIs) for coal supplies and ten coal mining companies, including from Indonesia, South Africa and Mozambique, had responded, the official said, without disclosing identities of the coal asset owners.
Following a schedule drawn up by NLC, imports would commence from September 2013 and one-million tonnes would be shipped in the first year, increasing to 10-million tonnes, as the company’s thermal power plants went on-stream in phases, the official added.
The thermal power projects undertaken by NLC include two 500 MW plants at Tuticorin, in the southern Indian province of Tamil Nadu, and three 600 MW plants in the northern province of Uttar Pradesh. NLC has proposed another three 600 MW plants at Sirkazhi Tamil Nadu.
The Tuticorin plant was scheduled for start-up by year-end, while the Sirkazhi plants have been linked to imported coal feedstock.
Once all EOIs were obtained, NLC would initiate long-term supply contracts within a three-month timeframe, as well as equity investments in coal assets. The company had earmarked a corpus of about $450-million for strategic equity investments.
NLC, which operates predominantly in southern India, has three lignite reserves - Mine I, Mine IA and Mine II, which produces 10.5-million tonnes, three-million tons and 10.5-million tonnes of lignite respectively. The company also operates three lignite-based power plants in southern India with generating capacities of 600 MW, 1 470 MW and 420 MW respectively.
Source:-www.miningweekly.com
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