New Delhi: Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited (CIL), informed stock exchanges on Wednesday that its Bhojudih Coal Washery had commenced commercial operations with effect from May 26. The company, in a regulatory filing, stated that "the commercial operation of the 2.0 MTPA Bhojudih Coal Washery of Bharat Coking Coal Limited (BCCL), has commenced with effect from 26th May, 2026."
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The Bhojudih Coal Washery is a three-product medium coking coal washery with a raw coal washing capacity of 2.0 million tonnes per annum (MTPA), or 20 lakh tonnes per annum. It has been constructed under the Build, Operate and Maintain (BOM) model.
The filing noted that the facility "is equipped with state-of-the-art technologies such as Heavy Media Cyclone, Spiral Concentrator and Froth Flotation for beneficiation of coking coal." The washery is designed to produce washed coking coal for supply to the steel sector.
The Bhojudih washery is one of several projects BCCL has been pursuing as part of a strategy to shift its product mix from raw coal to higher-margin washed coking coal. The company had set a target of expanding its total washery capacity from approximately 13.65 MTPA to over 20 MTPA by FY28, with key projects including the 2.5 MTPA Patherdih-II washery, the 2.0 MTPA Bhojudih washery, and a planned 2.5 MTPA Moonidih washery.
Washed coal commands a 35–40 percent pricing premium over raw coal, making the capacity expansion significant for BCCL's revenue realisation per tonne.
In FY2024-25, BCCL's washeries recorded a 25-year high in raw coal feed at 5.6 million tonnes, up 15 percent, and a 20-year peak in washed coal supply to the steel sector at 170.2 million tonnes, up 16 percent.
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Coal washing improves the quality of raw coal by removing impurities, thereby increasing its efficiency and market value. With the Bhojudih Washery now functional, BCCL's washed coal output is set to rise, likely resulting in better price realisation and improved profitability for the company. The availability of higher-grade washed coking coal will directly support downstream industries, particularly steel manufacturers that rely on consistent quality inputs.