Commercial coal mining: End-users shy-away from bidding on Day 5

Another round of financial bidding concluded today wherein multiple blocks were offered, but as was the case on the previous occasion, no end-user industry has shown interest to procure them on a relatively quiet day for bidding.

Essel Mining added second block into its kitty as it acquired Radhikapur East at a closing bid of 16.5% against floor price of 16%. Earlier, the company had won Bandha block on Day 2.

Urma Paharitola despite falling under high conservation zone, managed to draw adequate response from the bidders due to the large coal reserve lying in the block.

It was bagged by Aurbindo Realty and Infrastructure at final price offer of 26.5%, thus claiming its second block in the auction having already won Takli-Jena-Bellora block in Maharashtra.

Next up, only a single block-Gondulpara will be put on auction tomorrow, having fairly large coal reserve of 176.33 mn t, but involves significant safety risks due to steeply dipping seams present in it.

The participants in contention are Essel Mining, India Coke and Power, Vedanta and Adani Enterprises (who is yet to won a block for the fifth straight day).