Shyam Metalics Group has secured strategic mining rights for the Phutamura coal block in Chhattisgarh through its investment in Alom Solar Private Limited, strengthening its long-term raw material security for power generation and steel manufacturing.
Kolkata, October 13 — Shyam Metalics Group has secured strategic mining rights for the Phutamura coal block in Chhattisgarh through its investment in Alom Solar Private Limited, which emerged as the successful bidder for the block.
The coal block is located in the Mand Raigarh coalfield in Raigarh district and covers an area of around 7.32 square kilometres. It has estimated coal reserves of approximately 170 million tonnes, according to the company.
Mining operations and coal production from the block are expected to begin in July 2027. The investment forms part of Shyam Metalics’ broader backward-integration strategy aimed at securing a stable and cost-effective supply of coal for its operations.
Coal from the block is expected to support the group’s captive power generation and steel manufacturing businesses, reducing dependence on external suppliers and improving the predictability of raw material costs.
The company said access to the Phutamura reserves would help strengthen raw material security, improve operational self-sufficiency and reduce exposure to fluctuations in external coal availability and prices.
For steel producers, captive access to coal can play an important role in managing production costs, especially for power-intensive manufacturing operations. Shyam Metalics’ move reflects a strategy of integrating key raw materials more closely with its downstream steel and energy operations.
The group said the investment also supports its focus on sustainable growth and long-term value creation for stakeholders.
The Phutamura coal block is expected to become an important part of the company’s supply chain once production starts, helping provide a more reliable source of fuel for captive power and steel production.
