The Government of India has allocated the Meenakshi Coal Mine in Odisha to Hindalco Industries Ltd., the metals flagship of the Aditya Birla Group. This allocation was formalized through a vesting order issued by the Ministry of Coal on December 27, 2024, following the signing of the Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024.
The Meenakshi coal mine is a fully explored block with a Peak Rated Capacity (PRC) of 12 million tonnes per annum and geological reserves of approximately 285.23 million tonnes. With a favorable coal-to-waste stripping ratio of less than 1, the G12 grade mine is poised to be a cost-effective and sustainable energy source for Hindalco’s operations, making the company self-reliant in coal production.
This strategic move aligns with Hindalco’s objective to reduce operating costs and enhance energy self-sufficiency. The mined coal will replace the company’s dependence on auction and linkage coal, which is currently estimated at approximately 40% higher in cost than coal from the Meenakshi mine. This substitution ensures a stable supply for Hindalco’s smelters and solidifies its position as one of the lowest-cost producers of aluminum globally.
Beyond operational advantages, the development of the Meenakshi mine is expected to have a transformative regional impact by strengthening India’s energy security, increasing national coal production, and stimulating economic growth in the area. The project is anticipated to create approximately 16,000 direct and indirect employment opportunities, thereby improving local livelihoods and fostering community development.
Hindalco plans to commence coal production from the Meenakshi mine in Calendar Year 2028, subject to obtaining the necessary regulatory clearances and approvals.
