Hindalco Industries, a leading metals company and part of the Aditya Birla Group, has signed a Coal Mine Development and Production Agreement (CMDPA) to develop the Meenakshi coal mine in Odisha. The mine, which has a peak rated capacity of 12 million tonnes per annum and 285.23 million tonnes of geological reserves, is expected to commence coal production in CY2028, subject to regulatory clearances and approvals.
The Meenakshi coal mine is considered a cost-effective and sustainable energy source due to its favourable coal-to-waste stripping ratio of less than 1. This will enable Hindalco to become self-reliant in coal production, reducing its dependence on external sources. The company’s goal is to produce coal that meets its own energy needs, while also generating surplus coal for sale.
Hindalco Industries is a diversified metals company with operations in aluminum, copper, and other metals. It is the world’s largest aluminum rolling and recycling company, and one of Asia’s largest producers of primary aluminum. The company’s consolidated net profit surged 78.01% to Rs 3,909 crore in the second quarter of FY25, driven by a 7.45% increase in revenue from operations to Rs 58,203 crore.
The company’s stock price, however, shed 0.35% to trade at Rs 600.10 on the BSE. Despite this, the development of the Meenakshi coal mine is expected to have a positive impact on Hindalco’s financial performance and sustainability, making it a significant milestone in the company’s growth strategy.