KOLKATA (miningweekly.com) – Major producer Coal India Limited (CIL) will seek help from external domestic and foreign miners to develop underground mines requiring high-grade technology.

According to an official in the Coal Ministry, CIL had identified a string of underground mines wherein production had either fallen to uneconomic levels or stopped altogether. These mines would be offered to miners which had the high-end mining technological wherewithal to meet the geological challenges offered by these coal blocks.

The official said that the mines would be offered for development under the public private partnership (PPP) model, distinctly different in terms and conditions from the mine developer and operator (MDO) model, already initiated by CIL.

Under the PPP, evolved by the erstwhile Planning Commission, now replaced by the National Institute for Transformation of India, the underground mines would be offered to private miners for a longer tenure of 15 to 20 years for development and infusion of technology in collaboration with CIL.

Simultaneously, and unlike in mines operated by MDOs where production targets were established, CIL’s proposed collaborator under the PPP would be responsible for the entire production chain, geological estimation, identification and installation of appropriate technology, including imports if necessary, setting of production targets and achieving the milestones and transportation of coal to end-users, the official said.

He said that selection of domestic and foreign miners would be done through a competitive tendering process and final appointments would be completed within the current financial year.

If successful, the appointment of private domestic and foreign miners would mark the culmination of ground work done by the Coal Ministry over the past two years, including the appointment of a committee to study technology of existing underground mines, the appointment of foreign consultants to identify appropriate high-end mining technologies and even fiscal incentives for capital investments and the cost of imported technology.

However, it could not be determined whether the mines identified by CIL for PPPs included the list of defunct underground mines identified by the Indian miner for revival.

Since 2008, the Coal Ministry and CIL had attempted to revive 18 defunct underground mines, but had failed either to woo suitable miner partners or faced differences over terms of engagements.