Adani Power on September 2 announced that it has received approval from the Ministry of Coal to begin operations at the Dhirauli mine in Madhya Pradesh's Singrauli district.
In an exchange filing released in the post market hours of September 2, Adani Power said that this will provide the company with enhanced raw material security. The Dhirauli mine is owned by the Mahan Energen, a subsidiary of Adani Power, and has a capacity of 6.5 MTPA. This includes 5 MTPA from open cast mining and the remainder from underground operations.
"According to the geological report, the block has a gross geological reserve of 620 MMT and net geological reserve of 558 MMT, ensuring decades of supply, fuel security, and operational stability," the company said in its exchange filing.
As part of its responsible mining initiative, the Adani Group-company may also wash and process the mined coal within the mining area itself, so that impurities and inert materials are not carried beyond the mine area and thereby the emissions are benign, the firm said.
Notably, this is Adani Power's first captive mine which has received government approval to commence mining operations. "The mine's Open Cast Peak Rated Capacity (PRC) is targeted for FY27, with underground mining scheduled to commence nine years later," it said, while noting that it holds a 30-year mining lease for the block, ensuring long-term operational continuity.
The Dhirauli block is expected to fulfill Adani Power's merchant power requirements and also supply to the nearby 1,200 MW Mahan Power plant, which is currently undergoing 3,200 MW expansion.
Speaking about the development, Adani Power CEO SB Khyalia said, "The commencement of mining at the Dhirauli block marks a pivotal milestone in Adani Power's journey towards self-sufficiency and sustainable growth. By integrating backward into raw material sourcing, we are not only optimizing input costs but also enabling ourselves to deliver competitively priced power for millions of consumers. Our commitment remains unwavering in developing the mine responsibly, with a focus on long-term value creation for all stakeholders."
Adani Power shares closed in the green with marginal gains at Rs 606.95 apiece. The stock will be kept under active watch tomorrow when the market reopens.
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