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NTPC to start coal mining at Chatti-Bariatu mines

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World Coal,

India’s largest power producer, NTPC, will begin coal mining at its Chatti-Bariatu mines in Jharkhand by March 2015, India’s The Economic Times has reported, quoting a spokesperson for the company. Initial production is expected to be around 1 million t but could rise to 7 million tpa.

NTPC has made the move into mining coal in a bid to guarantee access to the fuel and aims to provide about 20% of its coal needs from captive mines by 2017. It has been allocated six blocks in the coal-rich state of Jharkhand with another block in Odisha.

The news from Chatti-Bariatu contrasts with the recent announcement from NTPC to cancel a contract with Thiess Mintec – a subsidiary of Australia’s Leighton Holdings – to develop a coal mine at Pakri Barwadih, setting back the start of mining there.

India suffers chronic shortages of coal, despite sitting on some of the largest reserves of the black rock. The company has also mooted building a power plant based on imported coal in Pudimadaka in Andhra Pradesh to take advantage of the fall in global prices for thermal coal and cushion against local shortages of coal.

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