Two coal blocks will be functionalized by Vedanta to ensure the long-term supply security of its power plants

This financial year, Vedanta is on an expedition to activate two coal blocks in Odisha and is also plotting to quicken the operational instinct of another coal mine located in the eastern region.

In recent times and primarily last year, thermal power plants and the non-regulated sectors have experienced power supply shortages, thrusting Vedanta to emphasise more on the long-term availability of coal.

“We intend to operationalise Jamkhani and Radhikapur (West) (coal blocks…..,” as it was recorded by Vedanta in its integrated report and annual accounts pertaining to the years 2021-22.

The company had won in auction, the authority over the Jamkhani coal block in 2019 and the Radhikapur West block, the next year. The company’s Jharsuguda aluminium smelter is situated very close to this Jamkhani coal block, which would probably be beneficial in running the smelter’s operations.

The Jamkhani coal block will accurately provide the Jharsuguda aluminium smelter with all its required amount of energy to uplift the quality of aluminium produced in the hub, with a reserve secured for future purposes. The mine can produce almost 2.6 million of coal each year and features an extended reserve of 114 million tonnes.

When active, the coal block will harbour secured fuel options, multiply power capacity and by far enhance the aluminium operations and performances of the company.

Vedanta has also encompassed as the highest bidding advocate for the Radhikapur West coal block, situated in the Angul district of Odisha, approximately a 190km distance from the company’s aluminium smelter at Jharsuguda.

The Radhikapur West coal block is another source of energy for the Jharsuguda smelter with an accurate logistical address and enormous mining capacity. The mine consists of a total of 312 million tonnes of coal with an assessed per capita extraction rate of 6 million tonnes.

Vedanta proudly stated: “We continue to focus on the long-term security of our coal supply at competitive prices. We added Jamkhani (2.6 MTPA), Radhikapur (West) (6 MTPA) and Kuraloi (A) North (8 MTPA) coal mines through a competitive bidding process.”

The blocks jointly house 15 million tonnes of the long-term linkage which guarantees 100 per cent coal availability for the nearby aluminium units.

"We also look forward to continuing our participation in linkage coal auctions and secure coal at competitive rates," the company said.

The company further added "operationalisation of...Kuraloi coal block (in Odisha), improve linkage coal materialisation.”

"Vedanta is working out a plan to expedite operationalisation of Jamkhani, Radhikapur and Kuraloi coal mines."

The Kuraloi (A) North coal mine in Odisha was up for re-bid in the second deliberation for the auction of blocks designated for commercial mining. Vedanta had successfully captured the bid for the Kurolai (A) North coal mine then.