Vedanta Limited has emerged as the highest bidder for the Jamkhani coal block in Sundargarh district, Odisha, in the 10th tranche of the captive coal block auction.
The coal block is in proximity to the company's Jharsuguda aluminium smelter. The Jamkhani coal block is one of the most attractive coal blocks for the company's in terms of location, annual capacity, reserves and readiness to produce.
The approved per annum capacity of the mine is 2.6 million tonnes. It has an extractable reserve of 114 million tonnes.
Once operational, it will provide fuel security, improve power availability and further strengthen the company's aluminium operations and performance.
This is the company's second coal block after the Chotia coal block in Chhattisgarh that has an annual capacity of 1 million tonne.
Speaking on the development, Anil Agarwal, Executive Chairman, Vedanta Resources Ltd said, "I am very happy with this development. This will make us more self-sufficient in energy and aid our progressive plans."