Coal India shifts focus to top soil removal as demand dips; OB removal grows 10% in Apr

Coal India Ltd (CIL) has removed 114.43 million cubic meters of top soil or over burden in its open cast mines in April 2020 as compared to 104.22 million cubic meters during the same period last year. This is an increase of 10% or 10.21 million cubic meters over the same period last year, sources said.

“With reduced domestic demand of coal, Coal has shifted its focus to the enhancement of the overburden removal – the process of removing the top soil and rock to expose coal seams in its open cast mines. Over 95% of CIL’s coal production comes from its 171 open cast mines,” an official said.

There has been a fall in demand for coal as the power sector, a major consumer of coal, witnessed almost 30% fall in consumption since industries and commercial establishments are closed down due to lockdown to prevent spread of Coronavirus.

Government data shows that as on April 30 2020, 50.89 million tonnes of coal was stocked up at power houses in India, enough to last for 31 days. CIL has a pit-head stock of about 76 million tonnes. The enhancement in over burden removal will enable CIL to accelerate coal production whenever the demand picks up and coal can be supplied at short notice.

CIL is in regular touch with its customers, especially in the southern states of India and is pursuing them to increase the intake of domestic coal as a substitute for imported coal, the official said.