Hindalco Industries Ltd, the flagship company of the Aditya Birla Group, has been allocated the Meenakshi coal mine in Odisha. The formal allocation was finalized through a vesting order issued by the Ministry of Coal, following the signing of the Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024. This strategic acquisition underscores Hindalco’s focus on resource security, energy efficiency, and sustainable operations.
The Meenakshi coal mine, a fully explored block, boasts a peak rated capacity (PRC) of 12 million tonnes per annum and geological reserves of 285.23 million tonnes. With a favourable G12 grade and a coal-to-waste stripping ratio of less than 1, the mine is expected to provide a cost-effective and sustainable energy source for Hindalco’s operations, reducing its dependence on costlier auctioned and linkage coal.
By leveraging the Meenakshi mine, Hindalco aims to enhance energy self-sufficiency, lower operating costs, and solidify its position as one of the world’s lowest-cost aluminium producers. The coal sourced from the mine is expected to be approximately 40% cheaper than current alternatives, ensuring a steady and economical supply for the company’s smelting operations.
The project is projected to generate around 16,000 direct and indirect jobs, fostering local economic growth and community development. Coal production is anticipated to commence by 2028, subject to necessary regulatory approvals and clearances.
Hindalco’s acquisition aligns with its strong financial performance. In the second quarter ending September 30, 2024, the company reported a 123.3% year-on-year rise in net profit, reaching ₹1,891 crore, compared to ₹847 crore in the same period last year. The robust results were driven by strong operational performance, favourable market conditions, and effective cost management.
Shares of Hindalco closed at ₹604.95 on the BSE, reflecting a 1.97% dip. Despite this, the company remains focused on achieving its strategic goals and enhancing its competitive edge in the aluminium industry.
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