Western Coalfields faces flat coal production at 69MT amid operational challenges in FY'25

Kolkata, Jan 19 (PTI) Western Coalfields Ltd (WCL), a subsidiary of Coal India, has projected flat coal production at 69 million tonne in FY'25, mirroring last year's output, as it grapples with operational and pricing challenges.

Despite achieving its highest-ever coal production of 69.113 million tonne in FY24, reflecting a 7.5 per cent growth, WCL anticipates no growth this fiscal or the next due to limited reserves, adverse geo-mining conditions, and escalating production costs, a top company official said.

"Our total production for FY'25 will remain around 69 million tonne, similar to last year. Despite our best efforts, we expect production to remain flat next fiscal as well due to unique mining and pricing challenges," WCL Chairman and Managing Director Jai Prakash Dwivedi said.

The Nagpur-headquartered company operates 52 mines, including 19 underground and 33 open-cast mines, across 10 areas in Maharashtra and Madhya Pradesh.

WCL produced 45.1 million tonne of coal between April and December, marking a modest 3.1 per cent growth. However, coal offtake fell by 2.3 per cent to 48.7 million tonne during the same period.

Dwivedi highlighted major hurdles, including high stripping ratios (overburden removal costs), strata control issues, and limited reserves. He added that upcoming projects would primarily offset depleting reserves rather than contribute to growth.

WCL's coal also faces pricing pressures, with a mining levy of Rs 450 per tonne making its dry fuel less competitive in the market.

Looking ahead, WCL anticipates a gradual decline in production, projecting output to drop to 50 million tonne by 2047, signalling the need for new reserves and alternative strategies. PTI BSM RG

Source: PTI