Power Mech bags Rs 9,294 cr contract from Central Coalfields Ltd
Power Mech Projects Ltd said it has bagged a Rs 9,294 crore contract from Coal India arm CCL to develop and operate a mine. The project has been awarded to a consortium of Power Mech and AMR India Ltd. Power Mech is the consortium leader with 74 per cent equity stake and AMR India will hold 26 per cent stake.
“Power Mech…has been awarded a Mine Development & Operation (MDO) project from Central Coalfields Ltd (CCL), a subsidiary of Coal India Ltd aggregating to Rs 9,294 crore over the contract period,” Power Mech said in a statement.
The contract will comprise mine infrastructure development, removal of overburden and extraction of coking coal, processing, crushing and transportation of coal up to washery of CCL, carrying out R&R activities and any other activities incidental to mining as per the project document at Kotre Basantpur Pachmo OCP located in Ramgarh and Bokaro districts of Jharkhand.
The project has total coal extraction capacity of 105 million tonne (MT) with an annual capacity of 5 MT and overburden removal during the project period is over 539 MBCM.
The concession period is 25 years, including two years of development period with an option of extending the contract for a period of another 10 years with the consent of both the parties.
A special purpose vehicle (SPV) has been formed to undertake the project.
AMR India has also been engaged in contract mining involving operations like removal of overburden, mining of coal/lignite, logistics etc.
The SPV will have material handling expertise of Power Mech in project development and the technical expertise of AMR India in the field of greenfield mining project development.