GHCL Secures 20-Year Lignite Mining Extension

GHCL has received a significant boost for its mining operations, with the Gujarat Industries and Mines Department renewing the company’s lease for the 171-hectare Khadsaliya Lignite Mines in Bhavnagar district. The lease is now extended for 20 years, valid until December 8, 2043.

In a major diversification move, GHCL had earlier signed a ₹850 crore memorandum of understanding (MoU) with the Government of Gujarat in December 2023. This agreement paves the way for the development and commercial sale of secondary minerals such as Bentonite and Sand, expanding the scope of operations beyond lignite.

“With this renewal and diversification, the Khadsaliya project will evolve into a composite mining operation, combining lignite extraction with secondary mineral development. This represents a transformative opportunity aligned with our sustainability goals, circular economy vision, and commitment to resource optimisation,” GHCL said in a regulatory filing.

The expanded project is expected to strengthen GHCL’s long-term resource security, contribute to regional economic development, and enhance the sustainability and efficiency of its mining operations.

News by Rahul Yelligetti.