Protests At Mahanadi Coalfields Weigh On Coal India’s July Volumes, Offtake
Workers at Coal India unit Mahanadi Coalfields are protesting the death of four workers due to a landslide at a mine in Odisha.
Coal India Ltd.’s production and offtake fell in July, dragged down by a protest at one of its subsidiaries following the death of four miners in a landslide.
Output fell 5 percent year-on-year to 38.5 million tonnes, the world’s largest miner of the fuel disclosed to exchanges. Offtake, or despatches, declined for the fourth straight month, down 3 percent on a yearly basis to 46.8 MT.
The decline in July came as Mahanadi Coalfields Ltd., which contributes about a quarter of Coal India production, saw its volumes and offtake decline 14 percent and 7 percent, respectively, on a yearly basis due to a protest after four workers died in a landslide at Talcher mine in Odisha.
Output and despatches fell 12 percent and 9 percent year-on-year, respectively, at South Eastern Coalfields Ltd., the largest contributor. That, according to Edelweiss Securities, stemmed from a delay in finalising sub-contracting agreement.
Other smaller subsidiaries like Bharat Coking Coal Ltd. North Eastern Coalfields also reported decline in production and offtake. Western Coalfields, however, saw its volumes jump 30 percent and offtake rise 1.5 percent.