Coal India Ltd. plans to shut nearly 100 unprofitable mines over the next two to three years, with 37 of them targeted for closure this year, The Times of India reported Aug. 10.

Low grade coal extracted from mines that produce less than one million tonnes annually are generally considered unprofitable, the report said.

During the previous year, it also closed down over 15 mines. The company has currently 394 operating mines, down from its initial 750.

Citing a recent study, the report said the company has roughly 15 highly profitable mines, while a further 90 can be made profitable.

The move has been prompted by Coal Controller of India's recent downgrade to 50% of the company's 394 mines, resulting it to realize lower prices for the coal produced compared in the 2016-2017 fiscal year.

Increasing salaries and wages of its workforce have also affected the viability of a few mines, with more than 50% of the production cost representing workmen salaries, the report said.