Bharat Coking Coal Ltd (BCCL) has halted all coal mining and dispatch operations at its ABOCP mine in Dhanbad following an 'illegal' protest by local workers demanding full-time wages and benefits, impacting a key supplier to India's steel industry.
Coal mining and dispatch operations at Bharat Coking Coal Ltd's (BCCL) ABOCP mine in Dhanbad have remained suspended since around 3 pm on April 2 following a disruption by local persons, the company said.
The stoppage at the Block-II area is ongoing and has brought production and transportation activities to a halt.
BCCL described the action as an "illegal" stoppage by unorganised persons.
The issue relates to local mazdoors who were earlier deployed by transport contractors for shale picking and segregation work at railway sidings.
The company said such work has become largely irrelevant with the reduction in departmental production and the mandatory requirement of coal crushing in outsourced operations.
According to an agreement with the local administration dated August 18, 2020, the number of such persons was significantly higher than the requirement.
They were therefore engaged for only 4-5 days per month and paid HPC wages for those limited days, BCCL said.
Despite this arrangement, these persons have continued to demand full-time HPC wages and other benefits, BCCL added.
BCCL, a wholly owned subsidiary of Coal India Ltd, operates 34 mines including underground, opencast and mixed operations across Jharkhand and West Bengal and is a key supplier of coking coal to the steel industry.
The company produced 35.5 million tonnes (mt) of coal in FY26, marking a decline of 12.3 percent from 40.5 mt a year earlier.
Following the disruption, BCCL said it had written to the SSP, Dhanbad, and CISF authorities, and lodged an FIR at Baghmara police station.
The matter has also been escalated to senior officials within the company.
The company did not disclose the extent of production loss due to the ongoing stoppage.