Aditya Birla Group's metal flagship Hindalco Industries said it has been allocated the Meenakshi coal mine in Odisha. The allocation was formalised through a vesting order issued by the Ministry of Coal.

This development follows the successful signing of the Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024, marking a pivotal step in the company’s journey towards resource securitisation, energy efficiency and sustainable growth.

The Meenakshi coal mine, located in Odisha, is a fully explored block with a peak rated capacity (PRC) of 12 million tonnes per annum and 285.23 million tonnes of geological reserves.

With a favourable coal-to-waste stripping ratio of less than 1, the G12 grade mine is poised to be a cost-effective and sustainable energy source for the company’s operations, making the company self-reliant in coal production.

The allocation of the Meenakshi mine aligns with Hindalco’s strategy to reduce operating costs and boost energy self-sufficiency.

The mined coal will replace the company’s dependence on auction and linkage coal which is currently estimated at approximately 40% higher than the Meenakshi coal mine, thereby ensuring a stable supply for its smelters and solidifying its position as one of the lowest-cost producers of aluminium in the world.