The main business interest of the Company lies in coal mining and coal beneficiation with coking coal as its priority.
Coking coal is a key raw material for the Steel Industry. In recent, years, there have been wide fluctuations in coking coal prices which, in turn, has badly impacted the cost of steel production. Globally, the exportable coking coal reserves are limited to a few geographies, which put the steel makers at great risk of disruption in supplies. This makes it imperative for the steel makers to have control over coking coal supplies.
Even though both SAIL and TATA Steel have captive coal mines, they are dependent for most of their supplies on imports (90% by SAIL and 50% by TATA Steel). This dependence is expected to rise with huge expansion in steel capacity being undertaken by both these companies.
Considering the above scenario, there is a renewed urgency for acquiring coking coal assets by the promoters and hence the Company has been making efforts in this direction. The company is also exploring opportunities in coal mining and beneficiation business of non-coking coal on a case to case basis. The Company has structured its business into three verticals:
Coal Mining – It intends to acquire coal blocks, develop and operate them for supply to its promoters.
Coal Beneficiation – It plans to set up a 1.8 mtpa coking coal washery in Jharia coalfield area. It also proposes to set up and operate washeries in collaboration with strategic partners
Mining Services – With more than 50 years long practical experience of mining by its promoters (SAIL and TATA Steel), S&T has got a unique advantage of leveraging their experience towards serving the needs of mining industry. S&T Mining provides services in following area:
- Exploration and Geology: The services covered under this segment are
- Exploration Program Design and Management
- Reconciliation of reports against previous studies
- Development of reserve models
- Detailed geological maps, burden characterization and modelling
- Mining Project Evaluation
- DPR, Mine Planning & Technical report preparation
- Banakable technical & financial feasibility studies
- Reconciliation of project report & financials
- Bid Process Management
- Preparation of Tender document
- Finalisation of selection criteria, technical & commercial terms
- Selection of successful bidder
- Preparation of contract agreement