DHANBAD: At least two overseas companies are in the race for commencing mining operations in certain seams in Moonidih mines, the country's second deepest mine, owned by Bharat Coking Coal Ltd. Spread over 29 sq. km., these mines contain some of the best coking coal deposits in India.

The technical bids of a Chinese company and an Ukranian company are set to be opened later this month, BCCL officials told The Hindu.

The successful bidder will have to extract about four million tonnes in six years with a minimum annual output of five lakh tonnes. The entire project is likely to be funded by Steel Authority of India.

Commenting on the initiative, Partha S. Bhattacharjee, BCCL's Chairman and Managing Director, said that as part of its strategy to consolidate its turnaround, BCCL was keen on tying up with steel majors for developing some of its top-grade coking coal mines. This would be the first project taken up on a penalty-incentive basis in the coking coal sector. Years of losses had eroded BCCL's equipment totally and it was not safe to use them in challenging and capital-intensive mining conditions, he said.

Quick increase in production was the other compulsion for harnessing overseas companies, BCCL officials explained.

"A tunnelling technique is proposed to be used in this seam which will enable us to reach the targeted production level faster," the mining official said.

The plan for roping in user-sectors for funding operations has received the BCCL board approval. In this case, three steel companies are keen to fund the developments and the matter now rests with the Union Coal Ministry.

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