India: MCL to auction over 3 mnt of non-coking coal in Jun'26

• LBL Integrated leads auction volumes
  
  
• Road mode dominates coal offerings
  
  

Mahanadi Coalfields Ltd (MCL) is set to conduct a Single Window Mode Agnostic (SWMA) e-auction scheme on 10 June 2026, offering 3.61 million tonnes (mnt) of non-coking coal through both road and rail modes. The auction basket comprises coal grades ranging from G7 to G14, alongside washery rejects, making it one of the largest non-coking coal auctions scheduled by the company in recent months.

LBL Integrated tops auction volumes

Among the offered sources, LBL Integrated OCP accounts for the highest volume at 804,000 tonnes (t), comprising 800,000 t through road mode and 4,000 t through rail mode. The mine offers G14-grade coal and alone contributes over one-fifth of the total auction quantity.

Other major contributors include Samleswari OCP and Hingula OCP, each offering 504,000 t of G14 coal, followed by Garjanbahal OCP and Lajkura OCP, each with 304,000 t on offer. Kulda OCP will offer 254,000 t of G13-grade coal. Together, these six mines account for nearly 2.67 mnt, representing around 74% of the total auction volume.

G12-G14 grades dominate the basket

The auction portfolio is heavily skewed towards mid-grade non-coking coal, with G12, G13 and G14 grades accounting for the bulk of the offered quantity.

Large G14 volumes are available from LBL Integrated, Samleswari, Hingula and Garjanbahal, while Kulda and Lajkura are key sources for G13 coal. In the G12 category, MCL has offered substantial quantities from Bhubaneswari, Ananta, Lingaraj, Bharatpur, Jagannath and Kaniha mines. Additionally, Siarmal OCP is offering 104,000 t of G11 coal.

Limited high-grade coal available from Nandira

For consumers seeking higher-grade coal, Nandira UG Mine has been included in the auction with 15,000 t of G7 coal and 5,000 t of G8 coal. While the quantities are relatively small, these are the highest-grade lots available in the auction basket.

Road dispatch accounts for majority of volumes

The auction remains predominantly road-based, with most mines offering their entire quantities through road mode. Rail-linked volumes are comparatively limited and are mainly available through designated sidings attached to select mines such as LBL Integrated, Samleswari, Bhubaneswari, Ananta, Lingaraj and Siarmal. Most rail offers are in rake-load quantities of 4,000 t, while road quantities constitute the bulk of the basket.

This logistics profile is expected to attract strong participation from sponge iron units, cement producers and other industrial consumers located within trucking distance of MCL's mining areas.

IB Valley washery rejects offered

Apart from conventional coal grades, MCL has also included 200,000 t of washery rejects from IB Valley Coal Washery. The material, offered with a GCV range of 1,500-1,899 kcal/kg, is expected to draw interest from industries capable of utilizing low-calorific-value fuel.