Coal India said on Wednesday that its Odisha-based MCL arm witnessed a 42.6 per cent increase in overload removal and produced 20.54 million tons (MT) of dry fuel by 25 May despite low demand from the consumer sector due to COVID-19 lockdown.
Development is assumed to be significant as Coal India (CIL) shifted its focus to overburden removal-the process of removing topsoil and rock to expose coal seams in its open-cast mines-because of the slump in demand for coal.
"Despite lukewarm demand for dry fuel from the consuming sectors, amid COVID-19 slowdown, Mahanadi Coalfields Ltd (MCL) managed to produce 20.54MT of coal progressive up to May 25, 2020, the highest quantity among all coal companies of CIL," the PSU said in a statement.
MCL reported a robust 42.6 per cent increase in overburden relief during the current fiscal period up to 25 May compared to the same period a year ago.
This is also the highest of all CIL subsidiaries, according to the statement.
"MCL has cleared 27.51 million cubic metres (M CuM) of topsoil and extraneous matter till May 25, compared to 19.29 M CuM year ago – a volume increase of 8.22 M CuM resulting in 42.6 percent growth," it said.
Overload removal is an important performance parameter as it exposes the seam of coal to future mining operations. It also lends stability to mine.
Bringing up coal production in the short term would not be a problem with coal ready for mining on the shelf, he said, adding that MCL would be able to pick up the production tempo once the demand for coal picks up.
For MCL, overload removal is assumed to be even more important as almost all of its output is produced by open-cast mining.
During 2019-20 MCL produced 140.36MT of coal, of which 139.52MT was produced by opencast means, i.e. 99.4%.
MCL, which contributes a little more than 23 percent of CIL's total output and output, is the second largest coal producer and supplier to CIL 's subsidiaries.
Its objective is to produce 173MT during the current fiscal year, and its aim is to make a significant contribution to the tune of 263MT by 2023-24 in CIL 's quest for one billion tons of coal production by then.
