The duration of the mine development and operation contract for the coal project located in Jharkhand, India is 28 years
SAIL awards MOO contract for the Tasra open cast project to Power Mech Projects and PC Patel Infra. (Credit: Martina Janochová from Pixabay)
Power Mech Projects, in consortium with PC Patel Infra, has bagged a contract worth around INR304.4bn ($3.7bn) from the Steel Authority of India (SAIL) pertaining to the Tasra open cast project in India.
The duration of the mine development and operation (MOO) contract is 28 years.
The Tasra open cast project is located in Jharia Coal Fields in Ohanbad in the eastern state of Jharkhand.
According to Power Mech Projects, the MOO contract will mainly call for mine infrastructure development, overburden removal, and coking coal extraction.
It also involves crushing, transportation, establishing coal washery of 3.5 million tonnes per annum (MTPA) capacity, supplying coking coal of steel grade quality to SAIL, undertaking rehabilitation and resettlement (R&R) activities, and other tasks related to mining as per the project document.
The Tasra open cast project has a total of 96.78MT coal extraction reserves and an annual capacity of 4MTPA. The overburden removal during the project period is more than 535.29 million cubic metres of bulk material (MBCM).
The mine’s concession period is 28 years, which includes a two-year development period.
Power Mech Projects, which is an infrastructure-construction company, holds a 74% stake in the consortium, while PC Patel Infra, a mining services contractor, will own the remaining 26% stake. A special purpose vehicle (SPV) will be created to execute the MOO of the Tasra open cast project.
Power Mech Projects chairman and managing director Sajja Kishore Babu said: “This project will further strengthen our robust order book and enable the company to diversify its order book, which is in line with its strategy to have an optimum mix between power and non-power segments.
“This mine has all statutory approvals in place and it is a ready-to-mine project. The revenue booking can be started from FY24 onwards.”
Tasra marks the second MOO contract that Power Mech Projects has bagged after the KBPMOO project in mid-2021.