Gujarat Mineral Development Corporation Limited (GMDC), one of the country’s largest lignite producers, has decided to develop six new mines with a total reserve of around 400 million tones.
“The company will be spending Rs 800 crore in the financial year 2023-24 for just acquiring the land—in Kutch, Bharuch and Surat districts—needed to develop these new mines. The groundbreaking for all six projects is expected to take place within the next 12-15 months,” said Roopwant Singh, managing director of GMDC.
Lignite is a type of “brown coal” that is used to generate electricity. Three of the six projects in Kutch district—Lakhpat, Bharkhandam, and Panandhro Extension—are “dual mineral” projects. They have 135 million tonnes of lignite and 1,800 million tonnes of limestone in total. “Previously, we had no plans to monetise limestone that was both cement-grade and chemical-grade. We intend to mine it in stages using a surface miner. However, current estimates indicate that only half of the limestone lying on top of the lignite bed can be used,” Singh said.
The remaining three new projects are located in South Gujarat. The largest of the six blocks, located in Valia, Bharuch district, is estimated to have a lignite reserve of 200 million tonnes. A new mine, Damlai, with 35 million tonnes of reserves, is also being developed in the same district.
The Ghala block, with 17 million tonnes of lignite near the existing Tadkeshwar mine, is the sixth block being developed in the neighbouring Surat district.The six mines have an estimated life span of 10-30 years, with GMDC spending an estimated Rs 13,000 crore during the mine’s life cycle. The GMDC currently operates lignite mines in Tadkeshwar, Mata no Madh, Umarsar, and Bhavnagar. The Panandhro mines have been depleted, and the Rajpardi mines are nearing the end of their useful life.
Currently, Mata no Madh is the largest mine, accounting for nearly one-third of the company’s lignite production. “The company’s existing 8-9 million tonnes of lignite production will be scaled up to 9-10 million tonnes by 2023-24, and we plan to increase production to 30-50 million tonnes by 2025-26,” Singh said.
The Lakhpat block in Kutch covers 3,000 hectares, Panandhro Extension 1,000 hectares, and Bharkhandam 5,000 hectares. The Ghala block in South Gujarat covers 1,600 hectares, Damlai 1,400 hectares, and Valia 3,000 hectares.
The life cycles of these mines range from 10 to 30 years. “While the population in Kutch is small, land acquisition in South Gujarat will be more expensive,” Singh added.