The Indian state of Arunachal Pradesh has approved Coal Pulz's mining lease for the Namchik-Namphuk coal mines in Kharsang, Changlang district.

The lease, signed in Itanagar, is seen as a significant step in reviving coal mining operations in the region.

Coal Pulz director Naveen Singhal and Arunachal Pradesh Geology & Mining Secretary AK Singh formalised the agreement.

Mining operations are expected to commence soon, with a projected annual production of 200,000 tonnes per annum (tpa), generating royalties for the state.

The mining operations are expected to create employment opportunities for the local population and contribute to economic sustainability.

According to Arunachal Pradesh Geology and Mining Minister Wangki Lowang the operations will help curb illegal coal mining activities in the area.

Located within the Namchik Reserve Forest, the mining lease area has received necessary forest clearances from the Union Ministry of Environment and Forests & Climate Change. The state Environment Impact Assessment Authority has also transferred the environmental clearance for the open-cast coal mine.

The Namchik-Namphuk coalfields, with approximately 15 million tonnes of coal reserves, were initially allocated to the Arunachal Pradesh Mineral Development & Trading Corporation in October 2003. The total area of the coal block is 133.65 hectares (ha), with open-cast mining previously conducted on 39.02ha between April 2007 and February 2012, extracting one million tonnes of coal.

Mining operations were suspended in 2012 due to violations of project terms and suspected underground armed element interventions. Although the Central Government announced a resumption in 2014, the project faced delays and scrutiny from civil society and environmental groups.

In 2023, Coal Pulz, based in Guwahati, Assam, was allocated the coal mine, but extraction permissions were initially withheld. An escrow agreement was signed on 4 February 2023 in Delhi, marking a significant step towards opening the largest coal mines in the north-east to the private sector.

The Arunachal Pradesh Government then sought approval to transfer forest clearance to Coal Pulz on 12 June 2023.

This latest development comes days after the Union Ministry of Environment, Forest and Climate Change gave exemptions for mining proposals involving atomic, critical and strategic minerals from public consultations, citing national defence and security requirements.