A coal mine reopens, sparking hope and fear

After over a decade of dormancy, the Rajhara North coal mine in Jharkhand’s Palamu district has reopened under private ownership.
While the mine’s revival is seen as an employment opportunity, villagers fear a repeat of past environmental damage, including groundwater depletion and blasting-related destruction.
The environmental clearance was given to the mining project, and there will be talks about river diversion next. An expert says it would impact the groundwater in nearby areas.

The Rajhara North coal mine in Jharkhand, which was non-operational for a decade, has now been reopened under private ownership. While its revival is celebrated as a much-needed boost for local employment, it has also revived deep-seated concerns over environmental degradation and its long-term impact on the local community.

Commercial production at the Rajhara North (Central and Eastern) coal block in Padwa village, in Jharkhand’s drought-prone Palamu district, restarted in February this year. The government had allocated this block to Fairmine Carbons Private Limited in 2021. The project covers over 116 hectares, costs Rs. 1.26 billion and is expected to mine over 15 million tonnes of coal over 22 years.

The Rajhara North coal mine, one of the oldest in India, was established in the pre-independence era and nationalised in 1973. Initially a thriving underground mine, it later became an open-cast operation to extract high-quality coal. It continued operating until 2010 when it closed over safety concerns and issues related to environmental clearances.

“Whether you call the region Jharkhand or United Bihar-Jharkhand, Rajhara is the very first mine discovered by the British during their rule,” says Nitish Priyadarshi, an assistant professor in the Department of Geology at Ranchi University and author of A Handbook of Geology of Chotanagpur and Squeezing Earth to Death: Premises and Effects. “The coal here is of excellent quality — whether anthracite or bituminous. In the past, mining was done underground where the coal seam was inclined. Now, when the seam is horizontal, we use open cast mining,”

A signboard pointing to Rajhara Colliery. After over a decade of dormancy, the Rajhara North coal mine in Jharkhand’s Palamu district has reopened. Image by Ashwini Kumar Shukla for Mongabay.

A history of impact and renewed fears

The immediate reason for the mine’s closure in 2010 was flooding, but locals had long been protesting against the mining operations in the area.

Ramji Ram, a 70-year-old resident of Padwa village, recalls how groundwater levels plummeted, leading to the decline of agriculture, once the region’s backbone. Now, with commercial mining resuming right at their doorstep, concerns are growing. “Previously, our wells and water sources never dried up, but ever since the open cast mining began in the 1970s, all the water in this area has disappeared gradually,” says Ram, gesturing to a dry hand pump. “If mining starts, our rivers and land will be destroyed,” he says. “As soon as they start pumping water, it will dry up,” says Ramji Ram pointing to his well — the only source of drinking water for over twenty families.

Open-cast mining, which involves large-scale machinery, often leads to significant landscape alteration, habitat destruction, and increased dust and noise pollution. In contrast, though more complex and expensive, underground mining tends to have a less visible environmental footprint.

“Rajhara, or more broadly the Chota Nagpur Plateau, is made of hard, metamorphosed rock. Groundwater in this area exists only in the cracks, joints, and faults of the rock,” says Priyadarshi, who has long studied the impacts of mining in the region. “During blasting, the vibrations can seal or shift these cracks and joints, which may cause the groundwater to either disappear or move away. In many open-cast mining operations, groundwater is the first resource to be affected. The high explosives used in blasting can dry up well water and disturb the underground water,” he further explains.

The community’s resistance to mining is not new. “We had protested several times even before the mine was shut down (in 2010),” says 58-year-old Bindu Devi from Padwa village. A 60-year-old Lalu Ram recalls past destruction, “When everyone’s houses began to suffer damage, they protested. It used to shake entire houses. Look, everything you see here is because of that—repaired, but the whole village nearly crumbled.”

Lalu Ram, who participated in the protests, adds, “When the water began to dry up and houses started collapsing, the villagers united in protest. The mine was closed in 2010 after the Sadabah river flooded the mining area, making operations impossible.”

Citing safety and environmental concerns, the Directorate General of Mines Safety (DGMS) had ordered all mining operations to be suspended, though water operations were permitted. And that is when the protests intensified further. “They were using heavy pumps to flush the water. All the handpumps and the well in the village started drying up one after the other. Then we protested and fought back, and even the local MLA and MP (Member of the Parliament) joined us in support,” adds Lalu Ram.

Now, over a decade and a half later, mining is back in the region. Mining has already started in the mines allocated to Fairmine Carbons Private Limited. Meanwhile, the Central Coalfields Limited (CCL) has received environmental clearance (EC) but is yet to resume mining.

As mining revives, residents also dread a return of blasting-induced tremors that once cracked homes. “Blasting causes a lot of damage!” says Bindu Devi, pointing to repaired cracks. “When blasting used to happen before 2010, coal chunks would fly a kilometre and hit our houses. Now the blasting is happening very close—it will damage homes completely,” she expresses her concerns.

Impact on rivers

Village residents are also concerned about the impact of mining on local rivers. Earlier, the CCL mines operated on both sides of the Sadabah river. Now, Fairmine Carbons Private Limited has started extracting coal in the same region.

The Sadabah river, a lifeline and tributary of the North Koel, now barely trickles. Villagers blame past mining for its decline. “Ever since mining began, the water in the river has decreased,” says Bindu Devi. “Now that mining has started, as soon as the water begins to deplete, this well will dry up,” she adds, pointing to her well.

Priyadarshi explains the possible reason for the river drying up. “High-intensity blasting seals or dislocates cracks that hold groundwater. This disrupts aquifer recharge, affecting rivers like Sadabah, which rely on rain-fed aquifers. In drought-prone Palamu, already a rain-shadow region, this is catastrophic,” says Priyadarshi. “Wherever mining takes place, it will inevitably impact surface water, subsurface water, and groundwater,” he added.

Ramji Ram with his wife Kamla Devi. They are residents of Padwa village, where the Rajhara coal mines have reopened. Image by Ashwini Kumar Shukla for Mongabay.

What environmental clearances reveal

The 2019 EC for CCL’s Rajhara Open Cast Project stated there were “no forest patches in the core zone” but noted buffer zones near protected forests like Aparar Khas, Murma, and Kokansa.

However, the EC granted to Fairmine Carbons Pvt Ltd—operating around the same region—omitted references to these forests. However, the Divisional Forest Officer (DFO) of Palamu has clarified in a 2021 letter that the nearest reserved/protected forest lies 250 metres from the mine site.

“Even if mining doesn’t clear forest areas, it still spreads pollution and dust. Additionally, the destruction of topsoil negatively affects the forests,” says Priyadarshi.

The 2022 EC also revealed plans to divert a meander of the Sadabah river by the third year of mining. “In Hazaribagh (another district of Jharkhand), we have observed that riverbanks are often encroached upon, and the river’s course is sometimes diverted for activities like mining, which negatively impacts the river’s flow and ecosystem. If similar actions are taken with the Sadabah river, it could further exacerbate the problem, leading to the river drying up,” warns Priyadarshi.

Remains of the mines operated by Central Coalfields Limited in Rajhara. Image by Ashwini Kumar Shukla for Mongabay.

Concerns regarding rehabilitation and compensation

As mining operations resume, villagers are growing increasingly anxious about their future. “They have started extracting coal, but we still haven’t decided where we will go,” says 75-year-old Ram Lakhan Ram.

The company has proposed a relocation site about three kilometres away along the riverside, but villagers have unanimously rejected the offer. They are demanding proper compensation for their land, but no agreement has been reached so far, allege villagers.

The reopening of the Rajhara coal mine was hailed as an opportunity to boost employment, a prospect that once led local landowners to sacrifice precious acres of their land. However, many residents now recall broken promises and unmet expectations.

Villagers claim that in 2024, the company assured them they would receive priority for jobs. Yet, so far, only a few community members have been employed. Lalu Ram, who was part of a delegation that met with the mining company’s management in 2024, recalls the assurances given in the meeting, “For the uneducated, they promised one job for every three acres, and for those with a matric pass, one job for every two acres.”

Lalu Ram, who has pledged six acres of his land to the company in exchange for jobs for his three sons, remains uncertain about when these promises will be fulfilled.

Many locals share similar concerns, saying that while the mine’s reopening might offer temporary relief, in terms of employment, it risks repeating a cycle of displacement and environmental damage. “There are many young, working men in the village, but they (mining company) have brought in outsiders instead,” adds resident Ramji. “They claim they will provide 8,000 new jobs, yet it seems these opportunities are not for us,” says another resident, Lam Lakhan Ram. “I will fight for my rights. If they want my land, they must pay me,” declares Bindu Devi firmly.

Mongabay India reached out to Fairmine Carbons but has received no comment at the time of publishing.

Banner image: Residents of Pulwama in Jharkhand say that while the Rajhara North coal mine’s reopening might offer temporary benefits, it risks repeating a cycle of displacement and environmental damage. Bindu Devi says that she will fight for the right compensation (R). The government has allocated mining blocks to Fairmine Carbons which has begun production (L). Images by Ashwini Kumar Shukla for Mongabay.