World’s largest miner Coal India Ltd has embarked on higher volume despite tepid demand and soft coal prices and the strategy seems to be paying off dividends.
“Even coal prices are soft, we are trying to produce and sell more coal to offset the negative impact of soft thermal coal prices as far as possible,” a top Coal India official told PTI.
The December ’16 (Q3) quarter production was 147.73 mt against a production of 104.37 mt in the previous quarter. When compared to even corresponding December ’15 quarter, production was higher by about four million tonne.
Coal India strategy for higher volume game despite soft prices is in sharp contrast to common strategy to lower production to match with demand.
The official said, in the Q3 period the miner was able to come out with very low profit with volume strategy.
Almost 80 per cent Coal India coal goes to the power sector and it saw PLF slipping to even 60 per cent in the recent past resulting lower sales. Read More….