Coal India achieves record production of 60MTs in May 2023

Coal India Limited (CIL), a state-owned coal mining company in India, reported a record-breaking production in May 2023, reaching an impressive 60 million tonnes (MTs).

The company witnessed a significant growth rate of 9.5% compared to the same period last year, with a notable increase of 5.2 MTs. This surge in output surpassed the usual range of 40 MTs to 48 MTs for the month of May, highlighting the substantial progress made by Coal India Limited in the current fiscal year. Furthermore, all subsidiaries of Coal India Limited displayed positive growth during this period.

While the growth rate recorded in May 2022 was higher at 30%, the actual production at that time stood at 54.7 MTs, crossing the 50 MT mark for the first time in history. The remarkable growth witnessed by Coal India Limited in May 2023, both in volume and percentage terms, was achieved against a very high base.

The cumulative production until May 2023 reached 117.5 MTs, indicating a substantial increase of 9.3 MTs and a noteworthy year-on-year growth rate of 8.6%. Comparatively, during the same period in the previous fiscal year, the production amounted to 108.2 MTs.

May 2023 also witnessed a significant rise in total supplies, reaching a healthy level of 63.7 MTs, posting a growth rate of 4.1% compared to May 2022, which recorded supplies of 61.2 MTs. With the exception of Western Coalfields Limited (WCL), which fell slightly short, all subsidiary companies showcased an improvement in supplies compared to the previous year’s May performance.

In the period between April and May 2023, the coal off-take amounted to 126 MTs, reflecting a commendable growth rate of 6.2% compared to the same period last year, which registered 118.6 MTs. This increase accounted for an additional 7.3 MTs.

Coal India Limited’s overburden removal (OBR) experienced a sharp rise, reaching 178.2 million cubic meters (M.Cu.M) in May 2023. This marked a robust growth rate of 35% compared to May 2022, with all subsidiary companies contributing to this achievement.

The substantial growth in OBR not only indicates a positive outlook for future coal production but also contributes to the stabilization of mine geometry. During the two-month period leading up to May 2024, Coal India Limited successfully excavated 346 M.Cu.M of OBR, demonstrating a remarkable growth rate of 32%.

In a promising development, supplies to the non-power sector posted a remarkable growth rate of 29% year-on-year, amounting to 22.3 MTs by the end of May 2024. This represented an increase of 5 MTs compared to the same period last year, which recorded supplies of 17.3 MTs.

As the summer season intensifies, domestic coal-based power plants, primarily supported by Coal India Limited, are well-stocked with 35 MTs of coal as of May’s end. This figure is significantly higher, with an increase of 13.2 MTs or 60%, compared to May 2022, which saw supplies of 21.8 MTs.

Additionally, Coal India Limited’s pitheads currently hold an inventory of 61 MTs, while coal stored in private washeries, goods sheds, captive mines, ports, and in transit amounts to approximately 15 MTs. Collectively, these figures ensure a comfortable coal buffer of around 111 MTs.