Adani in the news

Adani begins integrated coal MDO operations in India
April 08, 2013

Media Release
Adani begins integrated coal MDO operations in India
Has access to coal reserves of over 3 billion tonnes

Editor’s Synopsis
Announces launch of integrated MDO operations with start of coal output
Begins coal production from the Parsa East-Kente Basan mine in Chhattisgarh
The coal mine has reserves of in excess of 450 million tonnes
To produce 15 mt/yr from this particular black in Chhattisgarh coal block 2017
onwards
Coal will be supplied to Rajasthan state electricity board power plants
Rajasthan may become power surplus post coal supply from Chhattisgarh block
Adani has access to coal reserves over 3 billion tonnes from 4 MDO contracts
including this projects
Adani aims to produce 200 million tonnes of coal by 2020 across global assets
Ahmedabad, April 08, 2013: Adani Enterprises, the flagship company of the
Adani Group, a global integrated infrastructure player, today announced
commencement of its ambitious integrated coal mine developer cum operator
(MDO) operations with the start of coal production at the Parsa East-Kente
Basan mine in Chhattisgarh, owned Rajasthan Rajya Vidyut Utpadan Nigam Ltd
(RRVUNL), a state-run power generation utility of Rajasthan.
This is the first amongst the four MDO contracts bagged by Adani Enterprises
and marks the beginning of Adani Group’s “Resources” business vertical in
India. The company has outlined a phased capital outlay of Rs 3,000 crore for
the entire block.
With this development, Adani Enterprises is set to emerge as the largest
private coal miner with access to produce coal of up to 90 million tonnes and
reserves of over 3 billion tonnes over next 30 years, enough to produce about
18,000 megawatts of electricity by state electricity boards.
Mr. Gautam Adani, Chairman, Adani Group said, “The commencement of coal
mining at Parsa Kente is a milestone event in coal mining sector. With this we
at Adani rededicate ourselves to work resolutely towards energy security of
the country.”

Registered Office : Adani House, Nr Mithakhali Circle, Navrangpura, Ahmedabad 380 009, Gujarat, India
The Parsa East- Kente Basan block is located in Chhattisgarh and was awarded
to RRVUNL in 2007. RRVUNL issued a tender seeking MDO services which was
bagged by Adani Enterprises. The contract is now being executed by Adani
Mining, a 100 percent subsidiary of Adani Enterprises. The block holds reserves
of over 450 million tonnes of coal and will produce 2 million tonnes a year
initially to be ramped to 15 million tonnes a year from 2017 onwards.
As per the contract, Adani Mining will also set up a coal washery, a coal
handling plan and railway siding infrastructure to transport the coal at the
doorstep of RRVUNL’s fuel-starved power plants in Rajasthan.
The washed coal from Parsa East- Kante Basan block will be of a superior
quality and will help RRVUNL run its power plants at a plant load factor of over
95 percent and will make the state power surplus from its current situation of
being electricity deficient and massive load shedding.
Relatively new in India, MDO is a concept where in a coal block owner
contracts entire operations to a third party, which takes the responsibility of
land acquisition, resettlement and rehabilitation, mining, developing and
operating the particular mine by investing in it and then supplying the coal at a
tender determined price to the power plants of the mine owning state
electricity boards.
The other three MDO blocks contracted to Adani Enterprises are – Parsa block
in Chhattisgarh, owned by Chhattisgarh State Power Generation Co Ltd with
reserves of 150 million tonnes, Machakatta block in Odisha owned by MahaGuj
Collieries Ltd with reserves of 1.2 billion tonnes and Chendipada coal block,
also in Odisha, owned by UCM Coal Company Ltd with reserves of 1.5 billion
tonnes.
The Adani Group aims to produce 200 million tonnes of coal across its mining
assets globally by 2020. The group has a producing mine in Indonesia and has
just flagged off an impressive coal exploration programme in the Carmichael
mine, the biggest coal mine tenement in the world in the Galilee Basin of
Queensland Australia. The group plans to commence production of coal from
its Australian operations by 2016.

Registered Office : Adani House, Nr Mithakhali Circle, Navrangpura, Ahmedabad 380 009, Gujarat, India
About The Adani Group
The Adani Group is one of India’s leading business houses with revenue of over $8
billion for financial year 2012.
Founded in 1988, Adani has grown to become a global integrated infrastructure
player with businesses in key industry verticals - resources, logistics and energy. The
integrated model is well adapted to the infrastructure challenges of the emerging
economies. It multiplies the benefit of synergy and economies of scale both for the
Group and for the customers.
We live and work in the communities where we operate and take our responsibilities
to society seriously. The Group protects biodiversity in ecologically sensitive areas like
Mundra and undertakes initiatives to reduce CO2 emissions. At Adani, we deliver
benefits to our customers and customers’ customers.
Resources means obtaining coal from mines and trading; in future it will
also include oil and gas production.
Adani is developing and operating mines in India, Indonesia and Australia as well
as importing and trading coal from many other countries. Currently, we are the
largest coal importer in India. We also have extensive interests in oil and gas
exploration.
Extractive capacity is scheduled to increase from 3 million MT of thermal coal in
2011 to 200 million MT per annum by 2020, making Adani one of the largest
mining groups in the world.
Logistics denotes a large network of ports, Special Economic Zone (SEZ)
and multi-modal logistics - railways and ships.
Adani owns and operates three ports – Mundra and Dahej in India and Abbot Point
in Australia. The Mundra Port, which is the largest private port in India, benefits
from deep draft, first-class infrastructure and SEZ status.
Adani is also developing ports at Hazira, Mormugao, Visakhapatnam and Kandla in
India and Dudgeon Point in Australia. Our aim is to increase our annual cargo
handling capacity from 78 million MT in 2012 to 200 million MT by 2020.
Energy involves power generation & transmission and gas distribution.