Coal India Ltd. will halt production at its Dipka mine in India's Chhattisgarh province for at least 30 days due to flooding in the region, Reuters reported Oct. 2, citing a senior company official.
Dipka has an annual coal production capacity of over 30 million tonnes and makes up about 5% of the company's overall output, according to the report.
The halt comes as the country is trying to cut its dependence on coal imports, while also planning to sell a stake in Coal India.
The official said this is a "big setback" to the company's production goal of 660 million tonnes for the fiscal year ending March 2020 and will result in huge losses.
Coal India declined to comment on the extent of the damage caused by the flood that began Sept. 30, although the official noted that some expensive mining equipment may have been submerged.
The company reported that its output for September fell 23.5% to its lowest monthly level due to heavy monsoon rains hampering production at several mines in eastern India.
Coal India's Mahanadi Coalfields Ltd. unit recently resumed operations at its Talcher coalfields following protests by local villagers over the death of a goat at the site.
