The economic reforms- Liberalization, Privatization, Globalization, (LPG) started in 1991 in India. The main objective of the government was to achieve high economic growth and industrialize the nation for the well-being of Indian citizens. Thus Indian market became Global and open market. Coal industry was not an exception to this phenomena of globalization. The improvement in productivity has become need of coal industry to take the competitive advantage of global market.The challenge to the coal Industry is to identify the wastes and meet the market price by maintaining a good profit. The only solution is to reduce total production cost. Lean manufacturing is a systematic approach to identify and eliminate the waste through continuousimprovements and synchronizing the production process to obtain manufacturing excellence. This can be achieved by Lean thinking (to identify and eliminate wastes) and Lean production (to improve efficiency and effectiveness of equipment). Earlier the lean manufacturing concept was limited to manufacturing organizationnow it is used invariably in operation industries.In this paper researcher has applied lean manufacturing concept in order to increase productivity and to minimize the production cost of mining.