Hindalco Secures Meenakshi Coal Mine in Odisha

31 Dec 2024 , 03:59 PM

Hindalco Industries, part of the Aditya Birla Group, has been allocated the Meenakshi coal mine in Odisha. The ministry of coal released the vesting order, one of the critical steps toward company’s growth and sustainability targets.

The company had earlier in November 2024 signed a deal to develop and produce coal from the mine, which further indicated the seriousness of the firm to acquire resource security and to reduce energy expenses.

Meenakshi is a well-explored block with a peak capacity of 12 million tonnes per year and reserves of more than 285 million tonnes. This mine can provide a predictable source of energy for Hindalco’s business.

The mine has a good coal-to-waste ratio of less than 1, and its coal will come at a significantly lower cost compared to the present auction and linkage supplies, which are about 40% higher. This would help Hindalco maintain a stable supply of cheap coal, minimize its operating costs, and remain one of the lowest-cost aluminum producers globally.

The project will generate around 16,000 jobs that will enhance the employment of local people and benefit the community as well.

Hindalco will produce coal by 2028. This would be possible when all the clearances and approvals are in place. Recently, Hindalco posted an excellent 123.3% leap in its quarterly report at a net profit of ₹1,891 crore, driven by very strong operations from India and healthy market conditions.

In doing this strategic move, Hindalco is securing the resources and thereby strengthening its commitments to sustainability and efficiency and the wellbeing of communities.