Shyam Metalics secured mining rights for Chhattisgarh’s Phutamura coal block, which holds around 170 million tonnes of reserves.

The company announced the win on 13 October in a press release. It got the rights by investing in Alom Solar Private Limited, the successful bidder for the block.

Put simply, the company reached the coal by backing the firm that won the bid. It has not said how much that investment cost.

The block sits in Raigarh district, inside the Mand-Raigarh coalfield, and covers about 7.324 square kilometres. The coal is non-coking, a type mainly burnt to produce power and heat.

Reserves are estimated at around 170 million tonnes. A Ministry of Coal allocation update cites 170.54 million tonnes of geological reserves.

The coal will feed the group’s captive power plants and its sponge iron and steel units.

Owning a supply means less need to buy from open-market auctions or to import fuel, and both can swing sharply in price.

Mining and coal production are expected to start in July 2027, the company said, so nothing changes at the plants yet.

The company has given no cost savings estimate, no yearly output target and no spending plan for the mine.

The block came through commercial auction rounds run by the Ministry of Coal. The ministry has completed the allocation and vesting formalities for it, which means the block has moved past the bidding stage.

The company has other projects moving too. On 29 July 2026, it commissioned a 1.5 MTPA beneficiation plant in Sambalpur, Odisha, with an investment of Rs 150 crore.

A beneficiation plant cleans raw material before it goes into production. On 2 October, Shyam Metalics signed a non-binding MoU with Maharashtra for a 9 MTPA steel complex at Chandrapur, with an investment of Rs 50,000 crore mentioned.

Non-binding means neither side has made a firm commitment yet. The next milestone to watch is progress at the mine ahead of the July 2027 start.

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