Indian state-run steel producer Steel Authority of India Limited (SAIL) has awarded a mine developer, operator (MDO) contract to Power Mech Projects Limited (PMPL) to undertake mining projects of the steel producer of an estimated value of $3.71 billion over the course of the 28 years of tenure of the contract, a company statement said on Monday, July 31.
Under the MDO contract, PMPL will develop SAIL’s captive Tasra Open Cast coal project located in the eastern state of Jharkhand over a period of 28 years, including two years of developmental work.
As per the contract, Power Mech will be involved in mine infrastructure developments, removal of overburden and extraction of coking coal, crushing, transportation, setting up a coal washery of 3.5 million mt per year capacity, and supply of steel grade coking coal to SAIL and its affiliates.
The Tasra captive coal block has estimated reserves of 96.78 million mt.