The Ministry of Coal has vesting order of Meenakshi Coal Mine in Odisha to Hindalco Industries, an Aditya Birla Group company. The company expects to commence coal production in CY2028, subject to receipt of regulatory clearances and requisite approvals.

The project is expected to create about 16,000 direct and indirect employment opportunities and improve local livelihoods.

The development follows signing of the Coal Mine Development and Production Agreement in November, marking a pivotal step in the company’s journey towards resource securitisation, energy efficiency and sustainable growth, said the company.

The Meenakshi coal mine is a fully explored block with a peak rated capacity of 12 million tonnes per annum and 285.23 million tonnes of geological reserves.

With a favourable coal-to-waste stripping ratio of less than one, the G12 grade mine is poised to be a cost-effective and sustainable energy source for company’s operations, making the company self-reliant in coal production, it said.

The allocation of the Meenakshi mine aligns with Hindalco’s strategy to reduce operational costs and boost energy self-sufficiency. The mined coal will replace the company’s dependence on auction and linkage coal which is currently estimated at about 40 per cent higher than Meenakshi coal mine, thereby ensuring a stable supply for its smelters and solidifying its position as one of the lowest cost producers of aluminium in the world, it added.