State-run Gujarat Mineral Development Corporation (GMDC) will expand its lignite coal production to acquire from small and medium enterprises (SMEs) on the lookout for cheaper gasoline.
GMDC produced 8.5 million tonnes of lignite final 12 months and plans to attain 10 million tonnes this 12 months. “In the final six months, we’ve got added 400 extra prospects and prospects are rising day-by-day. Our buyer base amongst MSMEs in textiles, chemical compounds, and ceramics together with captive energy crops is rising since coal costs proceed to stay excessive. Hence, we’re rising our lignite production this 12 months by a further 1.5 million tonnes even as we glance to add extra mines in close to future,” stated a GMDC spokesperson.
The firm will add six extra mines, leaving it with a complete of 9 within the subsequent 4-5 years. GMDC’s managing director Roopwant Singh has stated the corporate employs Deloitte for fast-tracking new lignite mining initiatives.
With coal costs being as excessive as Rs 8000 per tonne to Rs 10000 per tonne and past, common lignite costs have a tendency to be round Rs 4000-4500 per tonne, making it viable for MSMEs to go for the latter.
According to the GMDC spokesperson, whereas lignite mining will proceed to be the biggest contributor to the corporate’s income at over 90 per cent, the PSU plans to add different streams of income together with bauxite mining and thermal energy, amongst different issues.
In reality, as a part of its development plans, GMDC just isn’t solely tapping into its present companies together with lignite mining but additionally foraying into uncommon earth parts (REE) mining. The mining firm has roped within the Boston Consulting Group (BCG) for its strategic transformation, other than McKinsey & Co. for the event of REE belongings.
Meanwhile, other than lignite growth, the corporate is working at bettering bauxite mining that’s utilized in alumina, other than mining of fluorspar.
“While we’ve got bauxite and fluorspar mines, the production has not been as desired. We are attempting to resolve production points even as we give you higher marketability for these merchandise,” the spokesperson added.
For the monetary 12 months 2021-22, GMDC had registered a web revenue of Rs 405 crore as in opposition to a web lack of Rs 35 crore in FY’21 even as its whole consolidated earnings grew by 93 per cent to Rs 2889 crore for FY’22, up from Rs 1496 crore within the earlier fiscal 12 months 2020-21.
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