Hindalco Industries, the metals flagship of the Aditya Birla Group, has announced the acquisition of 100% equity in EMIL Mines and Mineral Resources Ltd. (EMMRL). The move aims to ensure a stable, long-term coal supply for Hindalco’s aluminium smelting operations. It also enhances operational efficiency and resource security.
Bandha Coal Block: A Key Asset
EMMRL currently holds the mining lease for the Bandha coal block in Madhya Pradesh. With an estimated 197 million tons of mineable coal and a projected mine life of 45 years, the Bandha block is a critical asset in Hindalco’s energy portfolio. Located just 20 km from Hindalco’s Mahan power plant, the Bandha coal block offers logistical advantages. Its proximity enables efficient transportation through rail, road, or conveyor systems, ensuring uninterrupted fuel supply to power-intensive smelting operations.
Related-Party Transaction and Timelines
EMMRL is a subsidiary of Essel Mining and Industries, also part of the Aditya Birla Group, making this a related-party transaction. The Hindalco board approved the deal on May 20. The company expects to complete the acquisition within six to nine months, subject to regulatory clearances.
Interestingly, EMMRL has not reported any turnover since 2020. This indicates the company has yet to begin commercial operations. This situation positions Hindalco to fully integrate and develop the mine in alignment with its own requirements.
Strengthening Vertical Integration
As reported by projectstoday.com, the acquisition marks a significant step in Hindalco’s vertical integration strategy. It allows the company to reduce reliance on external coal sources, improve cost control, and secure energy for its aluminium production chain.
