Indian integrated steel and energy producer Prakash Industries Limited (PIL) has signed a 30-year mining lease for Bhashkarpara coal block in Chhattisgarh state, securing the right to extract coal from the asset, a company said in a statement said on Tuesday, November 26.
The company plans to begin operations with overburden removal next month, followed by coal extraction in the next quarter. The coal from Bhaskarpara will support PIL’s integrated steel operations by ensuring a reliable supply and lowering production costs, it said.
“Coal supplies from this mine will provide stability to our integrated steel operations and result in substantial cost savings. Additionally, being a commercial mine, it will boost revenue and profitability through coal sales in the open market,” it said.
The company’s steel mill in Chhattisgarh produces billets and long products and other critical raw materials.