Coal India Subsidiary SECL Signed ₹7,040 Crore Mining Agreement

On April 18, 2025, South Eastern Coalfields Ltd (SECL), a Coal India subsidiary announced that it has signed a ₹7,040-crore agreement with TMC Mineral Resources to undertake large-scale coal mining using advanced paste filling technology. SECL is set to become the first public sector coal company in India to adopt paste filling technology for mining operations.

Paste filling is a modern underground mining technique that eliminates the need to acquire surface land. After coal is extracted, the remaining voids are filled with a specially formulated paste made from fly ash, crushed overburden from opencast mines, cement, water, and binding agents. This method helps prevent land subsidence and maintains the mine’s structural integrity.

Project Details

The project will focus on the Singhali underground coal mine, located in SECL’s Korba region, where coal production using this new method will be carried out on a large scale. Spanning 25 years, the initiative is expected to yield approximately 8.4 million tonnes of coal.

Approved in 1989 with an annual production capacity of 0.24 million tonnes, the Singhali mine began operations in 1993. Currently, it holds about 8.45 million tonnes of extractable non-coking coal. Mining activities have been conducted using the Bord and Pillar method, supported by load haul dumpers and universal drilling machines.

However, the surface area above the mine is heavily developed, with villages, high-tension power lines, and a PWD road, making conventional caving methods unsafe and environmentally unsuitable.

Also Read: Coal India Share Price in Focus: Check Why?

Conclusion

By introducing paste filling technology, SECL can now continue mining in this area without disturbing the existing surface infrastructure. The success of this initiative at Singhali is expected to set a precedent for restarting operations in other underground mines facing similar surface constraints.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.