India will ramp up Coal production by 8%

The Coal industry dominates the mining sector in India and this is set to continue with the recent announcement that Coal India (CIL) will increase its production by 8% per annum over the next 5 years. The increase in Coal production in India is part of the 12th 5 year plan where by coal is seen as a solution to meet India’s growing Energy needs.

CIL produced just under 436 million tons of Coal in 2011 and since 2012 it’s expected to of produced just over 463 million tonnes which will mean an annual increase of 6.2%

With the 8% year on year increase in coal production outlined in India’s 12th plan this will mean by 2017 India will be producing 180 million tons more Coal then it is now. If India reaches its projected target of its 2017 coal production this will mean its producing 640 million tones.  CIL will develop new projects to help it achieve its target with 142 new projects have been selected which consists of 107 open cast mines and 35 underground projects. Investment in up to date Coal mining Technology is also a key focus in India Coal mines as they look to improve the efficiency and safety of the coal production industry in India and move away from its general labor intensive processes to the most modern methods of exacting coal.

Currently India is the World’s 3rd largest producer of Coal behind the US and its Bric Partner China, India currently has the World’s 5th largest proven reserves of Coal. It’s expected that by 2017 demand for Coal will be over 930 million tonnes so even with an annual 8% production increase India will still have to import Coal to meet its demands. Indian Mining companies have been investing in Mines in other countries with South Africa and Australia are now popular destinations for investment.

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Disclaimer: This information has been collected through secondary research and BricPartner is not responsible for any errors.