Challenges Loom for Western Coalfields as Production Stagnates

Western Coalfields Ltd (WCL) faces operational and pricing challenges, anticipating flat coal production at 69 million tonnes for FY'25, despite last year's growth. Limited reserves, high costs, and adverse conditions hinder growth. Pricing pressures further strain competitiveness, with output projected to decline by 2047 without new reserves.

Western Coalfields Ltd (WCL), a subsidiary of Coal India, is confronting significant operational and pricing challenges as it projects flat coal production at 69 million tonnes for the fiscal year 2025, replicating last year's output.

Despite reaching its highest-ever production of 69.113 million tonnes in FY24, marking a 7.5% increase, the company anticipates no growth in the current or next fiscal due to limited reserves and escalating production costs. According to Jai Prakash Dwivedi, WCL Chairman and Managing Director, production is expected to stay flat because of unique mining and pricing hurdles.

The company, headquartered in Nagpur and operating 52 mines in Maharashtra and Madhya Pradesh, produced 45.1 million tonnes between April and December, showing only modest growth. Offtake, however, saw a decline due to pricing pressures. WCL forecasts a production drop to 50 million tonnes by 2047, highlighting the urgency for new reserves and strategies.

(With inputs from agencies.)