CIL focuses on pithead stock liquidation to improve supplies
KOLKATA (miningweekly.com) – Indian major Coal India Limited (CIL) plans to reduce its pithead stocks by 25-million tonnes by the end of 2013, by offering power companies the opportunity to lift coal directly from pitheads and arranging their own transportation.
According to a CIL official, the miner was offering pithead coal stocks on an ‘as-is-where-is’ basis to power producers to accelerate the pace of stock liquidation and make more coal available for the power sector.
However, evacuation arrangements would have to made by the buyers, as CIL would not be able to get more rakes allocated by the Indian Railways within such a short period of time, the official said.
The move was aimed at giving pithead offtake a boost, as demand for the resource was growing at a faster pace than mine production.
Between April and August, CIL’s mine production reached 167.3-million tonnes, clocking growth of 2.7% over the previous corresponding period, while offtake was up 3.6% .
In August, CIL pithead stocks were estimated at 36-million tonnes, compared with 67-million tonnes in April 2013, and the company was attempting to bring it down to 11-million tonnes by December 2013.
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