By Bizodisha Bureau, Bhubaneswar, December 19, 2019: Vedanta Ltd is all set to improve its bottom line after emerging as the successful bidder for Odisha’s Jamkhani coal block located in Sundargarh district.

The company plans to commence mining from this coal block within a year of formal handing over the mine, company officials said adding that the Jamkhani coal block would improve the company’s coal security for carrying out its operations.

Since the Jamkhani coal reserve is located close to Vedanta’s aluminium smelting units at Jharsuguda- a standalone smelter and a Special Economic Zone (SEZ), it is expected to help the company achieve cost competitiveness in metal production. Vedanta is eyeing aluminium production cost of $1500 per tonne in the near term.

The Jamkhani coal block is Vedanta’s second captive one after Chotia in Jharkhand that has a rated capacity of one million tonne per annum (mtpa). Jamkhani coal block has geological reserves of 222 million tonnes (mt) of which mineable reserves are 14 mt. Initially, Vedanta plans to extract 2.6 mt each year which may be ramped up later.

Last month, Vedanta Ltd had emerged as the highest bidder for Jamkhani block in the government’s 10th tranche of coal block auction for captive use. The conduct of coal auctions is part of the government’s initiative to attract private sector’s participation.