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The incident occurred at 10:30 am at Bhowra Colliery Area of Bharat Coking Coal Limited (BCCL), about 21 km from here.
Deputy Superintendent of Police (DSP), Sindri, Abhishek Kuma, said the exact number of people killed and feared trapped or injured would be known after rescuers are able to locate the victims.
An eyewitness said many local villagers were engaged in illegal mining when the mine caved in.
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Bhowra police station Inspector Binod Oraon said rescue operations were on.