The contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coking coal, processing, crushing and transportation of coal up to washery of CCL, carrying out R&R activities at Kotre Basantpur Pachmo OCP located in Ramgarh and Bokaro Districts, Jharkhand.
The project has a total coal extraction capacity of approximately 105 million metric tonnes with an annual capacity of 5 million metric tonnes and overburden removal during the project period is over 539 MBCM.
The concession period is 25 years including two years of development period with an option of extending the contract for a period of another 10 years with the consent of both the parties. With this, the total contract period will extend up to 35 years.
The project has been awarded to a consortium of Power Mech Projects and AMR India wherein Power Mech is the consortium leader with 74 per cent equity stake and AMR India will hold 26 per cent stake.
“This project is a strategic step forward in the company’s journey, utilizing the technical know-how and further establishing the company’s position. The material handling expertise of the company in project development combined with the technical expertise of AMR in the field of greenfield mining project development, will greatly help in the overall development of the project, which will result in achieving the targets given by coal mining and service agreement,” said Sajja Kishore Babu, chairman and managing director at Power Mech Projects.
As of 10.50 am, the stock was up 10.35 per cent at Rs 737.25.
