Hindalco Industries Ltd., the flagship company of the Aditya Birla Group, has achieved a key milestone with the allocation of the Meenakshi Coal Mine in Odisha. The vesting order, granted by the Ministry of Coal, marks a pivotal moment following the signing of the Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024.
The fully explored Meenakshi Coal Mine boasts a Peak Rated Capacity (PRC) of 12 million tonnes per annum and approximately 285.23 million tonnes of geological reserves. Its favorable coal-to-waste stripping ratio of less than 1 ensures cost-effective operations. The G12-grade mine is set to bolster Hindalco’s resource securitization, significantly reducing reliance on auction and linkage coal, which costs around 40% more than Meenakshi’s coal.
This allocation aligns with Hindalco‘s strategy to enhance energy self-sufficiency, lower operating costs, and strengthen its position as one of the world’s lowest-cost aluminium producers. With coal production expected to begin by CY2028, the company aims to achieve sustainable energy use and support India’s industrial progress.
Also read | Sandur Manganese & Iron Ores Completes Major Acquisition of Arjas Steel
Beyond operational benefits, the project will contribute to India’s energy security, enhance national coal production, and create an estimated 16,000 employment opportunities, fostering economic growth and local development. Hindalco remains committed to responsible mining practices and community development while advancing India’s energy independence.
The company anticipates regulatory clearances and approvals to enable the commencement of mining activities in the coming years.
