Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has entered into a definitive agreement to acquire full ownership of EMIL Mines and Mineral Resources Ltd. (EMMRL), in a move designed to bolster its captive fuel supply chain. EMMRL holds the lease for the Bandha coal block in Madhya Pradesh, which is set to play a key role in powering Hindalco’s aluminium smelting operations.
The acquisition involves a cash consideration of Rs 48 lakh along with the assumption of Rs 1,131 crore in debt. Though modest in transaction value, the deal brings with it significant long-term value through resource security. The Bandha block, with an estimated 197 million ton of mineable coal, is projected to have a life of around 45 years.
Its proximity to Hindalco’s Mahan power plant — just 20 km away — enhances operational efficiency, with coal transportation feasible through multiple channels such as rail, road, and conveyor systems. This geographical advantage supports Hindalco’s goal of ensuring uninterrupted fuel supply to its smelting facilities.
EMMRL is currently a subsidiary of Essel Mining and Industries, classifying the acquisition as a related-party transaction. Although the company has not recorded any turnover since 2020, its strategic asset position makes it a valuable addition to Hindalco’s portfolio.
The deal has secured board-level clearance and is expected to be finalized within the next six to nine months, subject to necessary regulatory approvals.