IRL signs contract with Prism to develop coal deposit

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IRL signs contract with Prism to develop coal deposit

Australia-based India Resources Limited (IRL) has signed a contract with India's leading integrated building materials company Prism Cement Limited to develop and operate the first phase of Prism's Sial Ghoghri coal deposit in Chindwara district of Madhya Pradesh.

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Australia-based diversified mining company India Resources Limited (IRL) has signed a contract with India's leading integrated building materials company Prism Cement Limited to develop and operate the first phase of Prism's Sial Ghoghri coal deposit in Chindwara district of Madhya Pradesh.

Once operational, the first phase of the Sial Ghoghri mine will produce 9.06 million tonnes of coal with a total contract value of 249 million Australian dollars, the company said today.

Production is for the sole consumption of Prism and Sial Ghoghri will be a critical source of energy, underpinning Prism's rapid growth in India.

IRL will also be responsible for the construction of all necessary infrastructure as well as mining engineering associated with the mine's development, the release said adding IRL and Prism have planned a 24 month construction period.

Announcing the signing of the contract, the Managing Director of IRL, Arvind Misra assured that the project works will commence immediately and IRL staff are scheduled on site next week, said K K Dubey, General Manager (Group HRA & Business Development), told PTI.

Meanwhile, Prism has been allotted the Sial Ghogri Captive Coal Block in Pench-Kanhan Valley Coalfields in Chindwara district of Madhya Pradesh to meet the company's energy requirements for their existing cement plant in Satna district of Madhya Pradesh.

The Mine Plan covering an area of 429.107 hectares was allocated to them by the Ministry of Coal. The current mine plan is based on a production of 300,000 tonnes of coal per annum for a period in excess of 30 years.

The Ministry of Coal has determined that the Sial Ghogri Captive Coal Block requires specialised skill and technology and has required that Prism appoint a technologically competent, financially sound and experienced manpower to develop and operator the coal block.