Coal-ition of Strength: Chaman Metallics and SECL Team Up for a Decade of Reliable Supply

Chaman Metallics Ltd (CMNL) has entered into a significant fuel supply pact with South Eastern Coalfields Ltd (SECL) for guaranteed supply of 23,000 metric tonnes (MT) of coal per annum from SECL's Gevra Open Cast (OC) mines. The pact, which becomes effective from June 5, 2025, will be for 10 years or mine life, whichever is shorter, a milestone in the company's long-term resource strategy.

 

This fresh deal with SECL comes in the wake of Chaman Metallics' recent deal with Western Coalfields Ltd for the procurement of 2,000 MT of coal, and reflects the company's aggressive hunt for raw materials needed for its steel and sponge iron production.

 

Key Highlights

 

Long-Term Security: The deal assures Chaman Metallics a yearly supply of 23,000 MT of coal from SECL's Gevra OC mines for 10 years from June 5, 2025.

 

Strategic Expansion: This follows a recent deal with Western Coalfields for 2,000 MT, diversifying and consolidating Chaman Metallics' fuel supply chain.

 

Operational Impact: The secured supply of coal is delivered to the company's six plants in Chandrapur, Maharashtra, having a combined annual capacity of 72,000 MT of sponge iron.

 

Industry Background: SECL, as a subsidiary of Coal India, is at the forefront of adopting cutting-edge mining technology and mega supply arrangements, enhancing business partners' reliability.

 

Growth Outlook: These deals are likely to lead to increased operational stability, lowered supply risks, and facilitate expansion of Chaman Metallics in the steel and sponge iron business.

 

By these strategic fuel supply arrangements, Chaman Metallics will be able to offer stable and steady production and fulfill increasing demand in the metals industry.

 

Source: Marketscreener, TradingView, Economic Times