APMDC signs MoU with central coal mines department to bag Jharkhand coal mine

The Andhra Pradesh Mineral Development Corporation (APMDC) has acquired a rare cooking coal block (Brahmadiha) in Jharkhand. The coal field was handed over to APMDC as it stood as APMDC L1 in the bidding. An agreement to this effect was reached between the Union Ministry of Coal and APMDC in Delhi on Monday. The agreement was signed by M Nagraj, Additional Secretary, Union Ministry of Coal Mining on behalf of the Central Government and Gopalakrishna Dwivedi, Chief Secretary, State Department of Underground Mines on behalf of APMDC.

Union Coal Ministry officials handed over the contract documents to Gopalakrishna Dwivedi in the presence of Union Home Minister Amit Shah and Coal Minister Prahlad Joshi. Giridih Coal Fields in Jharkhand has the highest quality, rarest S1 type cooking coal. According to the authorities, only 1.5 per cent of the country's coal consumption is produced here. The remaining 98.5 per cent is imported. Hence there is a good demand for it. It is used in blast furnaces in steel mills.

The mine acquired by APMDC is estimated to have 25 lakh tonnes of coal reserves. The state of Jharkhand will have to pay 41.75 per cent of the sale price of coal mined in the Brahmadiha field while the remaining 48.25 per cent is APMDC. Officials estimate that the acquisition of the mine will bring APMDC a net income of between Rs 250 crore and Rs 350 crore.