Vedanta is planning to acquire coal mines through auctions as the mining conglomerate seeks to ensure fuel security for its energy guzzling aluminium plants. The company will source overall coal mix from low-cost imports and auctioned coal to optimize the cost in FY 2016-17.
Vedanta Group firm Balco had won Chotia and Gare Palma IV/1 blocks, both in Chhattisgarh in the first tranche of auctions on February 17 and 21 last year, respectively. However, the Gare Palma IV/1 mine for which Balco had emerged as the highest bidder was cancelled and given to Coal India.
