India’s Bharat Coking Coal Limited (BCCL), an operational wholly-owned subsidiary of government-run Coal India Limited (CIL), is in talks with four steel companies to set up coal washeries on land owned by BCCL and coal supplied by the miner, company sources said on Wednesday, December 25.
The sources also said that BCCL was also in talks with some steel companies to source coal rejects from the coal miner and use it to run captive thermal power plants at steel mills.
However, the sources declined to identify the steel companies but said that the four proposed coal washeries to be set up by the steel companies would have aggregate capacity of 7.1 million mt per year.
On its own BCCL had coal washing capacity of 1.5 million mt per year and plans to ramp it up to 2.5 million mt by end of current fiscal.
BCCL is now working on monetisation of low-grade coal mined by it by roping in private steel mills to wash the coal and suitable for use in steel production, the sources said.