Illustration: Yogendra Anand /CSE
Mining

Second act: Abandoned coal mines can support new livelihoods

Repurposing mine infrastructure could create local economic opportunities and avoid demolition waste, but policy gaps complicate asset transfers

Prerna Sah, Ajad Kumar Singh

In June this year, Union Minister for Coal and Mines G Kishan Reddy announced a programme for the scientific or formal closure of mines in the country by 2028. This includes the shutdown of 147 long-abandoned mines, where active extraction has ceased without any formal closure process. This programme opens an opportunity to reuse and repurpose mine infrastructure in a way that can boost local livelihoods and economies, create value for local communities, and also re-duce waste that would be generated from demolition.

However, tapping into this opportunity would require moving away from how mine closure has traditionally been understood in India. Historically, policy design has been focused on the physical and biological reclamation of mined land, treating mine infrastructure as a liability to be cleared rather than an asset to be reused. For instance, the Mineral Concession Rules, 1960, require companies to remove all movable property and dismantle structures within six months of the termination of their lease. Failing to do so will see the lease forfeited to the state government without compensation. Such mandates have seen demolition become the path of least resistance for recovering value, while repurposing remains largely unexplored.

Jharkhand's Giridih region, one of India's oldest mining hubs, illustrates just how complex it can be to translate policy into practice on the ground. The landscape is shaped by legacy mines and informal closures: three mines in the district (covering roughly 11.4 hectares or ha) have already been permanently or informally closed, yet the infrastructure remains undemolished and unused.

Two mines in the region are still operational: Kabribad Opencast Project (OCP) and Giridih OCP, whose infrastructure, including roads, covers 3.53 ha and 4.8 ha respectively. Both are slated to close within five years. The respective mine closure reports estimate the cost of dismantling structures (service and residential buildings, and industrial structures) at these two sites at roughly Rs 2 crore.

As part of a recent study, researchers from the Bengaluru unit of the think tank Center for Study of Science, Technology and Policy (CSTEP) visited Giridih and held discussions with the local communities on the mine closures. The local residents were vocal about …

This article was first published in the November 1-15, 2026 print edition of Down To Earth.