The Gujarat Mineral Development Corporation (GMDC) is poised for a significant expansion in its lignite mining operations, as it prepares to open three new mines during the current financial year. This expansion plan comes as the corporation eyes the eventual closure of several older sites, ensuring a continued supply of lignite to fuel Gujarat’s industrial growth.
With a projected combined reserve of 483 million tonnes, these new mines represent a crucial step in GMDC’s strategy to meet the growing demand for lignite, a vital resource used in power generation, industrial processes, and manufacturing. The new mines will be located in Bharuch and Kutch, with the EFG Valia mine set to become the largest among the new projects, boasting a peak mining capacity of 5 million tonnes per annum (MTPA). The Lakhpat (Punrajpur) mine in Kutch is expected to produce 3 MTPA, while the Damlai mine in Bharuch is anticipated to contribute 2 MTPA. According to GMDC officials, initial production levels will be modest as operations ramp up, but they expect to achieve a combined output of 10 million tonnes annually from these new sites.
These mines are part of a broader plan to develop six new lignite sites, a necessary step as GMDC looks to compensate for the imminent closure of older mines. With the Rajpardi mine already ceasing operations, GMDC is preparing for the eventual shutdown of several other key sites, including Mata no Madh and Umarsar in Kutch by 2030, followed by the Tadkeshwar mine in 2032. These closures, which together account for an annual capacity of 4.4 million tonnes, underscore the importance of new mines in maintaining a steady supply of lignite to meet the demands of Gujarat’s industries. For GMDC, this expansion is part of a broader effort to ensure long-term sustainability in the lignite sector. While the closure of older mines may lead to some short-term disruption, the development of new and larger sites is expected to bolster the state’s energy security and industrial capacity for years to come. The corporation has already made significant progress, surpassing its target of 8 million tonnes for the current year, with more than 7.5 million tonnes mined by mid-March.
This is a marked improvement compared to last year, when GMDC produced just 6.5 million tonnes. Swagat Ray, GM of GMDC, stated that the corporation is in the process of securing environmental clearances and acquiring land for the new sites. These steps are crucial for the successful and timely development of the mines, and GMDC is confident that the ramp-up in production will be smooth. “Initial production will be modest, but we anticipate a combined output of 10 million tonnes annually from these sites,” Ray said. The strategic importance of these new lignite mines cannot be overstated. With Gujarat’s industrial sector heavily reliant on lignite for energy production and other industrial applications, ensuring a steady and reliable supply of this resource is critical for the state’s economic growth. The closure of older mines, while necessary, highlights the ongoing challenge of balancing environmental concerns with the need for industrial development.
As GMDC prepares to bring its new mines online, the corporation must also remain focused on sustainability and eco-friendly mining practices, ensuring that Gujarat’s industries continue to thrive while minimizing the environmental impact of mining operations. The closure of the Rajpardi mine, which had been in operation since 2007, marks a significant milestone for GMDC. The mine, located over 380 hectares, provided high-quality lignite to a variety of industries. With its closure, GMDC is now preparing a comprehensive mine closing report, ensuring that all environmental and regulatory requirements are met. As the corporation moves forward with its expansion plans, the focus will be on maintaining a steady supply of lignite, driving economic growth, and embracing sustainable practices in mining.
