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PR FOR AMALGAMATED PAUNI-II & III OC (JUNE’ 2015) CMPDI

Job No.4101802 Page - 1 Executive Summary

BRIEF OF PROJECT REPORT

1.0 INTRODUCTION

The proposed PR has been envisaged by amalgamating property of Pauni-II OC

and Pauni-III OC. The Pauni-II OC mine was envisaged in Pauni Extension

geological block located in the south-western part of eastern limb of Wardha

Valley Coalfield. Pauni Extension Block is located west of Pauni OC mine. The

area of Pauni-III OC is located west of Pauni Extn. Block, which forms the south-

western most coal bearing area of eastern limb of Wardha Valley Coalfield. The

geological block is named as “Area west of Pauni Extn. Block”. The area falls in

the Rajura tehsil of Chandrapur district of Maharashtra State. The Chandrapur

district township is located at the distance of about 25 km from the block.

The entire geological block is virgin one and no mining activity is in progress. The

nearest working opencast mine i.e. Pauni O.C. is located east of Pauni Extn.

Block.

1.1 BRIEF HISTORY OF EARLIER REPORTS

The Project Report of Pauni-II OC mine was approved by WCL Board on

13.11.2003 in Total Hiring option for 0.60 Mty target capacity with capital

investment of Rs 28.1120 Crores.

The Project Report for Pauni-III OC was prepared in March, 2009 for a target

capacity of 1.25 Mty. The Project Report for Pauni-III OCP (updated February

2010) was placed in the 224th meeting of the Board of Directors of WCL held on

29.04.2010. After deliberations at length, the Board accorded first stage

approval, i.e., approval of the Mining Plan to facilitate application of forestry and

environment clearance for a capacity of 1.25 Mty at a capital investment of Rs

360.7987 crores with Departmental Option, as brought out in the agenda note.

The Board directed for entering into Coal Supply Agreement with prospective

consumer on Cost Plus Basis to yield 12% IRR at 85% target capacity and

clearance from CIL.



Presently Pauni-II OC mine is an on-going project of WCL & land acquisition is

under process. However, due to increase in land cost by Maharashtra Govt. &

new R&R Policy of CIL, it is not possible to acquire the land of this project within

the sanctioned capital. For Pauni-III OC mine, Cost Plus agreement is not

finalized till yet and so the final approval of the PR is yet to be done.

1.1.1 Salient Features of last Approved Reports

The salient features of earlier approved PRs of Pauni-II & Pauni-III OC mines are

tabulated below:

Sl.

No. Particulars

Approved PR of

Pauni-II OC

(July,2003)

(Total hiring

option)

Approved PR of

Pauni-III OC

(Feb., 2010)

(Departmental

option)

A Mining Parameters

1 Mineable Reserves (Mt) 4.91 24.11

2 Grade/GCV of coal (kcal/kg) G9/4775 G9/4830

3 OB Volume (Mm3) 31.90 157.57

4 Average S/R 6.49 6.54

5 Mine Capacity (Mty) 0.60 1.25

6 Manpower 110 755

7 Overall OMS (t) 20.66 6.27

B Financial Parameters

1 Total Capital (Rs. In Crores) 28.1120 360.7987

2 Cost of Production (Rs./t)

2.1 @ 100% of target capacity (Rs./t) 632.72 1376.32

2.2 @ 85% of target capacity (Rs./t) 662.92 1564.85

3 Av. Selling Price (Notified) (Rs./t) 725.85 1074.50

4 Profit (Rs./t)

4.1 @ 100% of target capacity (Rs./t) 93.13 (-) 301.82

4.2 @ 85% of target capacity (Rs./t) 62.93 (-) 490.35

5 Financial IRR @ 85% capacity (%) 20.60 NEGATIVE

6 Price to yield 12 % IRR @ 85%

capacity (Rs./t) 691.39 1801.65

7

Difference between Avg. Selling

Price (Notified) & price to yield 12

% IRR @ 85% capacity (Rs./t)

(+) 34.46 (-) 727.15



1.2 EXPLORATION STATUS

Pauni-II OC Block

Total 14 nos. of boreholes have been drilled in quarriable area (upto 120 m depth

of Composite Seam) and adjacent area of Pauni-II OC Block in an area of about

0.54 km2. The total meterage is 1558 and the borehole density works out to 26.

Pauni-III OC Block

Total 43 nos. of boreholes have been drilled in quarriable area and adjacent area

of Pauni-III OC Block in an area of about 2.17 km2. The total meterage is 3724.20

and the borehole density wotks out to 20.

The borehole density for Amalgamated PR for Pauni-II & Pauni-III OC works out

to 21 in quarriable area of 2.71 km2 (0.54 sq. km + 2.17 sq. km).

1.3 MINING ACTIVITY

The PR of Pauni-II OC mine was approved by WCL Board on 13.11.2003 in Total

Hiring Option. It is an on-going project and land acquisition is under process. No

mining activity has been started in this mine. The PR of Pauni-III OC mine is

approved on Cost Plus basis in Departmental Option and final approval is yet to

be done. Thus, no mining activity has been started in both the projects.

1.4 JUSTIFICATION OF AMALGAMATED PROJECT REPORT

Many of the existing opencast mines of Ballarpur Area (Pauni OCM, Gauri OCM)

are reaching near to its approved limits. The exhaustion of these mines would

create additional gap between Demand & Supply & therefore opening of new

projects like Pauni-II & Pauni-III OC is very essential to bridge this gap of demand

& supply. Presently Pauni-II OC mine is an on-going project of WCL & land

acquisition is under process. However, due to increase in land cost by

Maharashtra Govt. & introduction of new R&R policy of CIL, it is not possible to

complete the land acquisition of this project within sanctioned capital of PR. The

PR of Pauni-III OC has been approved on Cost Plus basis and Cost Plus

agreement is yet to be done. As both Pauni-II OC and Pauni-III OC are adjacent



projects, common infrastructure can be shared by both the projects thus

optimizing the capital and revenue cost. Thus, the PR of Amalgamated Pauni-II

and Pauni-III OC mine can be planned economically viable in notified price by

sharing the common infrastructure as well as by enhancing the target capacity of

the projects. Moreover, following new guidelines of project formulation have to be

incorporated in the PR.

1. Administrative cost per tonne to be considered as 10% of last audited

accounts of WCL which is Rs.16.85/t. This is as per decision of 310th CIL

Board meeting held on 08.11.2014 subject to vetting by Institute of Cost

Accounts of India.

2. In pursuant to Central Credit Rules intimated by WCL, Service Tax is to be

excluded while calculating hiring rates for OB removal / coal extraction.

3. Mid-point of Basic to be considered for estimation of salaries and wages.

4. While estimating mineable reserves, 10% geological losses and 5%

mining losses have to be considered.

Thus to make both the projects economically viable in notified price of coal by

sharing common infrastructure, enhancing the target capacity and incorporating

various new guidelines, preparation of PR for Amalgamated Pauni-II & Pauni-III

OC mines is essential.

The present proposal would work as replacement mine to depleting opencast

mines of Ballarpur Area and help in partially bridging the gap between demand &

supply of coal. The proposed PR would also help in gainful utilization of existing

men and machinery of existing OCMs after exhaustion of approved reserves of

mines like Pauni OCM, Gauri OCM etc.

1.5 SALIENT FEATURES OF PROJECT REPORT

It was desired by WCL that an amalgamated PR of both Pauni-II and Pauni-III

OC mines with common infrastructure facilities should be planned for better

economics of the two projects. Accordingly, a Project Report for Amalgamated

Pauni-II & III OC mine was prepared by CMPDI in May, 2015. The target of this



amalgamated mine was envisaged as 3.25 Mty (0.75 Mty of Pauni-II OC and 2.50

Mty of Pauni-III OC) & maximum possible proved reserves in both the blocks

have been considered. Only Total hiring option has been detailed in the this

Amalgamated PR as project economics is not yielding requisite IRR for approval

of PR at notified price of coal in Departmental Option & Partial hiring Option.

The salient features of the Project Report for Amalgamated Pauni-II & Pauni-III

OC prepared in May, 2015 for Total Hiring Option are tabulated below:

Sl.

No. Particulars

PR for Amalgamated Pauni-II & III OC

(May, 2015)

Pauni-II

OC

Pauni-III OC Total

A Mining Parameters

1) Mineable Reserves (Mt) 5.18 25.45 30.63

2) Grade/GCV of coal (kcal/kg) G9/4775 G9/4830 (G-9)/4817

3) OB Volume (Mm3) 31.90 157.57 189.47

4) Average S/R 6.16 6.19 6.19

5) Mine Capacity (Mty) 0.75 2.50 3.25

6) Manpower 242

7) Overall OMS (t) 50.87


1) Additional Capital (Rs. In Crores) 498.8690

2) Existing Capital (as on 31.3.2015)

(Rs. In Crores) 15.3094

3) Cost of Production (Rs./t)

a) @ 100% of target capacity (Rs./t) 915.40

b) @ 85% of target capacity (Rs./t) 981.14

Power Non power

4) Av. Selling Price (Notified) (Rs./t) 1190.50 1570.50

5) Profit (Rs./t)

a) @ 100% of target capacity (Rs./t) 275.10 655.10

b) @ 85% of target capacity (Rs./t) 209.36 589.36

6) Financial IRR @ 85% capacity (%) 12.27% 27.77

7) Price to yield 12 % IRR @ 85%

capacity (Rs./t) 1184.70 1184.70

8)

Difference between Avg. Selling

Price (Notified) & price to yield 12

% IRR @ 85% capacity (Rs./t)

(+) 5.80 (+) 385.80



The above PR was presented in Technical sub Committee of WCL Board at WCL

(HQ), Nagpur on 01.06.2015. The TSC after detailed deliberation directed to

revisit the capital provision of the PR with following observations :

i) The capital provision for residential buildings may be deleted except

provision for Hostel accommodation.

ii) The land provision made for Pauni-III OC may be finalized in consultation

with Ballarpur Area, WCL.

Based on the recommendations of TSC of WCL Board, the Project Report of for

Amalgamated Pauni-II & Pauni-III OC mine has been modified in June, 2015 and

the salient features of the modified PR are as follows :

Sl. No.

Particulars

PR of Amalgamated Pauni-II & III OC (Modified June, 2015)

Pauni-II OC Pauni-III OC Total

A Mining Parameters

1) Mineable Reserves (Mt) 5.18 25.45 30.63

2) Grade/GCV of coal (kcal/kg) G9/4775 G9/4830 (G-9)/4817

3) OB Volume (Mm3) 31.90 157.57 189.47

4) Average S/R 6.16 6.19 6.19

5) Mine Capacity (Mty) 0.75 2.50 3.25

6) Manpower 242

7) Overall OMS (t) 50.87


1) Total Capital 499.0042

2) Additional Capital (Rs. In Crores) 483.6948

3) Existing Capital (as on 31.3.2015) (Rs. In Crores)

15.3094

4) Cost of Production (Rs./t)

a) @ 100% of target capacity (Rs./t) 910.73

b) @ 85% of target capacity (Rs./t) 975.53

Power Non power

5) Av. Selling Price (Notified) (Rs./t) 1190.50 1570.50

6) Profit (Rs./t)

a) @ 100% of target capacity (Rs./t) 279.77 659.77

b) @ 85% of target capacity (Rs./t) 214.97 594.97

7) Financial IRR @ 85% capacity (%) 12.67 28.13

8) Price to yield 12 % IRR @ 85% capacity (Rs./t)

1182.05 1182.05

9) Difference between Avg. Selling Price (Notified) & price to yield 12 % IRR @ 85% capacity (Rs./t)

(+) 8.45 (+) 388.45



1.6 CONSTRAINTS / RISK IN MINING

Major constrains / risks associated with the project are as follows:

a) Diversion of Lendi Nalla and Seasonal nala

Lendi nala is passing through coal bearing area of Pauni-III OC, which is

proposed to be diverted as per route shown in Quarry and Surface Layout Plan.

The proposed diverted length of lendi nala is 1.50 km and proposed to meet in

Sakhri nala. The seasonal nala are proposed to divert and meet in Lendi nala.

However, no capital provision has been made for diversion of seasonal nala.

b) Diversion of Sakhari Nala

Sakhri Nala is passing through coal bearing area of Pauni-II and Pauni-III OC,

which is proposed to be diverted as per route shown in Quarry and Surface

Layout Plan. The proposed diverted length of Sakhri nala is 2.00 km and

proposed to meet in Pauni nala.

c) Diversion of 66 kV power line, 11 kV power line & other rural feeders

66 kV HT line, 11 kV power line and other rural feeders passing over the quarry

area are proposed to be diverted. As per discussion with Ballarpur Area officials,

temporary diversion of 66 kV HT line has also been proposed. The temporary &

permanent diversion of 66 kV HT line has been proposed as per route shown in

Quarry & Surface layout Plan.

d) Diversion of Chincholi- Sakhri road

Chincholi- Sakhri road is passing through property of Pauni-II OC which is

proposed to be diverted. As per discussion with Ballarpur Area officials,

temporary diversion of Chincholi-Sakhri road has also been proposed. The

temporary & permanent diversion of Chincholi-Sakhri road has been proposed as

per route shown in Quarry & Surface layout Plan.

e) Land Acquisition

Land acquisition will be a major challenge. For Pauni-II OC, 21.61 ha land is

already acquired for Pauni OC mine which is to be transferred by boundary

readjustment. Acquisition of land (305.80 ha) for Pauni-II OC is in advanced

stage. For Pauni-III OC, 825.25 ha land is proposed for acquisition. Out of 825.25



ha land for Pauni-III OC, 12.07 ha forest land is to be acquired which is a critical

activity.

2.0 MARKETABILITY & JUSTIFICATION

The mines of WCL are under constant pressure to meet the increasing

demand of non-coking coal for power plants and other bulk consumers from

Western as well as Southern part of country. The justification of this mine has

been studied in the light of estimated demand for coal from WCL and production

forecast from existing, completed, ongoing and future projects of WCL.

Following table shows the deficit in availability of coal, including middlings from

the various Existing, Completed, On-going, and Future Projects of WCL:

Sl.

No. Sector

Projections of Surplus / Deficit of Coal (Mt)

2015-16 2016-17 2017-18 2018-19 2019-20

1 Demand for coal 69.08 69.28 70.08 70.58 70.58

2 Availability of coal 45.000 48.00 50.00 55.00 60.00

3 Surplus / Deficit (+/-) (-) 24.08 (-) 21.28 (-) 20.08 (-) 15.18 (-) 10.58

The availability of coal shown above includes the coal production from

Amalgamated Pauni – II & III OC mine. From the above table, it is clear that the

deficit in supply of coal from WCL as a whole will be (-) 24.08 Mt in 2015-16

which will be narrowed down to (-) 10.58 Mt in 2019-20 provided WCL achieved

the target of 60.00 Mt production in 2019-20. New mines/ projects have to be

opened or expansion of existing operating mines has to be done by WCL in order

to meet the ever increasing demand of coal. There is a deficit in supply of coal

from the mines of WCL and therefore a ready market exists for the coal produced

from proposed Amalgamated Pauni – II & III OC mine.



Thus, there will be no problem in marketing of 3.25 Mty coal from Amalgamated

Pauni – II & III OC mine in view of large deficit in availability of coal from the

mines of WCL.

3.0 PROJECT SITE INFORMATION 3.1 LOCATION & COMMUNICATION

The proposed mine area falls in the Rajura tehsil of Chandrapur district of

Maharashtra State. The Chandrapur district township is located at the distance of

about 25 kms from the block. The area of Pauni-II OC is bounded by latitudes N

190 48’ 39” and 190 49’ 04” and Longitude E 790 15’ 04” and 790 16’ 13”. The area

of Pauni-III OC is bounded by Latitude N 190 48’ 19” and 190 49’ 27” and

Longitude E 790 13’ 48” and 790 15’ 36”. The block is covered in the survey of

India Toposheet No.- 55 M/5 .

The approach to the area at present is via Sasti Colliery or Rajura, Mathra, Gauri,

Pauni and Sasti villages by a fair weathered road, which is passing from north of

the block boundary. The area is free from village population, since no village exist

within the area of the block. Waroda village is located in the north-west outside

the block boundary and connected with all weather metal road with Rajura tehsil.

Delhi-Madras Grand Chord Railway line passes through Ballarpur township which

is located in the NE of the block at a distance of about 10 km. Ballarshah Railway

Station is located in the NE at about 10 km from the area.

3.2 TOPOGRAPHY & DRAINAGE

The altitude of the area ranges between 183.25 m and 200.29 m. A 66 KV High

Power Tension Line is passing through the southern part of the area. Few

seasonal nallas are passing through the block and joining easterly flowing Pauni

nala in the north, which ultimately joins Wardha river near Sasti village. The

general slope of the area is from west to east. The main drainage of the area is

controlled by the Wardha river which is flowing southerly and is located about 10

kms east from the area.



Few seasonal nalas are passing through the block and their flow direction is from

west to east. Lendi nala is passing through the middle part of the Pauni-III OC

block and Sakhri nala is passing through property of proposed Pauni-II OC block.

These nalas join easterly flowing Pauni nala in the north which ultimately joins

Wardha river near Sasti village.

4.0 GEOLOGY AND DEPOSIT APPRAISAL

4.1 INTRODUCTION

4.1.1 Geological Reports prepared for the blocks under reference The following Geological Reports have been prepared for the two blocks – 1. Geological Report on Quarriable Potentiality of Pauni Extension Block,

Wardha Valley Coalfield, Dist. Chandrapur, Maharashtra, March, 2002.

2. Geological Report of Area West of Pauni Extension Block (Pauni-III) Wardha

Valley Coalfield, Dist. Chandrapur, Maharashtra, November, 2006.

4.1.2 GEOLOGICAL BLOCK BOUNDARY

Pauni Extension Block (Pauni-II block) The Gelogical block boundary.of Pauni Extension Block are as follows : -

North - Fault F1-F1 (below Kamthi)

South - Fault F2-F2 (Floor of Bottom Section)

East - 170 m depth line

West - Subcrop of Composite Seam.

West of Pauni Extension Block (Pauni-III block) The area west of Pauni Extn. Block is 2.52 km2 and is located in the south-

western part of eastern limb of Wardha Valley Coalfield. The limits of area west of

Pauni Extn. Block are as follows :

1. North - Fault F2 (PE) – F2 (PE) (at the floor of Composite Top Section)



2. South - Fault F9 - F9 (at the floor of Composite Bottom Section & F10-

F10 (below Kamthi) and subcrop of Composite Seam

(below Kamthi)

3. East - Fault F2 (PE)- F2 (PE) (at the floor of Composite Top Section)

4. West - Subcrop of Composite Seam (below Kamthi) and faults F3–F3

& F10–F10 (Below Kamthi)

4.2 EXPLORATION STATUS

The exploration details of the proposed Pauni Extension Block (Pauni-II block)

and West of Pauni Extension Block (Pauni-III block) are tabulated below :

Sl. No.

Block Name No. of Boreholes

Meterage Area of Block (km2)

Borehole Density

1. Pauni Extension Block (Pauni-II)

14 1558 0.54 26

2. West of Pauni Extension Block (Pauni-III)

43 3724.20 2.17 20

Overall 57 5282.20 2.71 21

4.3 GEOLOGICAL STRUCTURE OF THE BLOCK 4.3.1 Strike & Dip Pauni – II block

The general strike of the coal seam as determined from the floor contour and roof

contour plans of Composite Seam is ENE-WSW dipping towards south. The dip

of the formation ranges 8o-9o (1 in 6 to 1 in 7).

Pauni – III block

The general strike of the coal seam as determined from the floor contour plans of

Composite Top and Bottom Sections is WSW – ESE with minor swing to NNW –

SSE in the north western part of the area. However, local minor swing in the

strike has also been observed in the area. The dip of the strata ranges from 6.50

to 140 (gradient 1 in 4 to 1 in 8.5) and dipping towards east. The northern and

southern part of the area generally having less gradient (1 in 8.5) as compare to

remaining part of the block.



4.3.2 Faults

Pauni – II block

A total of 2 nos. normal faults (F1-F1 & F2-F2) have been interpreted in Pauni-II

Block. Fault F1-F1 demarcate the northern limit and fault F2-F2 demarcate the

southern limit of the block. The details of these faults are furnished in the

following Table.

Description of Faults (Pauni-II Mining Block)

Fault

No.

Trend Throw Evidence

Direction Amount

F1-F1 NW-SE SW About

70 m

Omission of Top Section in

CMWG-59 and omission of

Bottom Section in CMWG-114.

F2-F2 NW-SE to

NNW-SSE

SW to

SSW

About

100 m

Omission of Composite Seam

in CMWG-104 & 116.

Pauni – III block

The area of the block is traversed by 12 numbers of faults. All the faults are

oblique faults, cutting across the strike of the strata. The major fault F2 (PE) - F2

(PE) is continuing from the eastern adjoining block i.e. Pauni Extension Block and

its fault number has been retained as mentioned in the geological report prepared

by CMPDI. This major fault F2 (PE) – F2 (PE) also demarcates northern / eastern

the limit of the block.

The details of the individual faults are given in the following Table :

DESCRIPTION OF FAULTS (AREA WEST OF PAUNI EXTN. BLOCK)

Sl. No.

Fault No.

Extent of faults

(m) Trend

Throw Evidence Direction Amount

(m)

1. F1 – F1

750 m NW - SE

SW 0-20 Difference in floor reduced level on both sides of the fault.

2. F2 (PE)–

F2

(PE) (Pauni Extn. Block)

3300 WNW-ESE

WSW About 80-150

Talchir and Vindhyan contact is faulted in CMWG – 173, Composite Top + Bottom Sections are omitted in CMWG – 124, 181 & 207 and Composite Top Section



Sl. No.

Fault No.

Extent of faults

(m) Trend

Throw Evidence Direction Amount

(m)

omitted and roof of Composite Bottom Section is faulted in CMWG -211.

3. F2 – F2

1300 WNW-ESE

NNE About 90

Composite Top Section omitted and roof of Composite Bottom section is faulted in CMWG–119 & Composite Top & Bottom Sections are omitted in CMWG - 106

Sl.

No.

Fault

No.

Extent

of faults

(m)

Trend

Throw

Evidence Direction Amount

(m)

4. F3 –

F3

1000 NW –

SE

NE 0 – 40 Difference in floor reduced

level on both sides of the

fault.

5. F4 –

F4

700 E - W N 0 - 15 Roof of Composite Top

Section is faulted in

CMWG – 107 and

Composite Bottom Section

is omitted in CMWG -154.

6. F5 –

F5

500 N - S E 25 – 60 Floor of Composite

Bottom Section is faulted

in CMWG – 170 &

difference in FRL on both

sides of the fault.

7. F6 –

F6

350 NW -

SE

NE 70 - 80 Difference in floor reduced


fault

8. F7- F7 500 E - W S 0 - 15 Roof of Composite Top

Section is omitted in

CMWG – 164.

9. F8 –

F8

350 NW -

SE

NE 50 Difference in floor reduced


fault.

10. F9 –

F9

1100 E - W S About

40

Difference in floor reduced


fault and floor of



Composite Top Section is

faulted and Composite

Bottom Section is omitted

in CMWG – 101.

11. F10 –

F10

400 NW –

SE

NE About

60


is omitted in CMWG -165.

12. F11 –

F11

675 NNW

- SSE

WSW About

10

Roof of Composite Top

Section is faulted in

CMWG – 142.

4.4 DESCRIPTION OF COAL SEAMS

The details of coal seams in Pauni-Extension Block (Pauni-II Block) and West of

Pauni Extension Block (Pauni-III Block) are described below :

Pauni –II block The major part of Wardha Valley Coalfield is characterized by presence of one

thick Composite Seam varying in thickness from 15 m to 20 m composed of

mainly 2 to 3 correlatable sections separated by well defined partings. In Pauni-II

OC Mining Block, the Composite Seam having thickness ranging from 17.65 m

(CMWG-80) to 20.79 m (CMWG-118) including all dirt bands and parting occurs

in the middle part of the Barakar Formation. The study of seam structure of

Composite Seam reveals that prominent fine grained sandstone, alternate shale

and sandstone and carb. Shale, etc occurring within the seam divides it into two

sections i.e. Top and Bottom.

For proving the quarriable potentiality of Pauni-II Mining Block, both the sections

i.e. Top Section & Bottom Section of the Composite Seam have been considered

as single coal bed horizon after excluding the parting between both sections. The

details of seam description for the individual seam sections i.e. Top Section and

Bottom Section as well as for the Composite Seam in the proposed Pauni-II OC

mining area (upto 120m depth at the floor of bottom section) are as follows :-



SEAM DETAILS (PAUNI-II BLOCK)

Sl.

No.

PARTICULARS TOP SECTION BOTTOM

SECTION

COMPOSITE

SEAM

1 Depth (Roof)

i) Minimum 19.80 m

(CMWG-109)

27.92 m

(CMWG-111)

19.80 m

(CMWG-109)

ii) Maximum 83.91m

(CMWG-118)

111.60m

(CMWG-110)

83.91 m

(CMWG-118)

2 Floor Reduced Level

i) Minimum 180.55m

(CMWG-118)

170.70m

(CMWG-118)

170.70m

(CMWG-118)

ii) Maximum 255.99m

(CMWG-109)

247.88m

(CMWG-109)

247.88m

(CMWG-109)

Sl. No.

PARTICULARS TOP SECTION BOTTOM SECTION

COMPOSITE SEAM

3 Full seam thickness

i) Minimum 10.72 m (CMWG-118)

2.55 m (CMWG-80)

13.50 (CMWG-80)

ii) Maximum 10.95 (CMWG-80)

4.30 (CMWG-118)

15.02 (CMWG-118)

4 Parting (with Top/ Bottom section)

i) Minimum 2.23 m (CMWG-111)

2.23 m (CMWG-111)

ii) Maximum 5.55m (CMWG-118)

5.55 m (CMWG-118)

Pauni – III block

SEQUNCE OF COAL SEAMS, AREA WEST OF PAUNI EXTN.BLOCK

Coal seam/ Parting

Thickness range (m) Generalised thickness

range (m)

Minimum Maximum

Composite Top Section

5.56 (CMWG – 151)

13.99 (CMWG – 174))

8.00 - 12.00

Parting 1.33

(CMWG – 174) 5.13

(CMWG – 180)


2.05 (CMWG – 174)

6.00 (CMWG – 176)

2.00 - 6.00



4.4.1 QUALITY OF COAL

Quality of coal has been assessed for both the quarries separately as well as for

Amalgamated OC based on the borehole data available within the quarry area.

Pauni – II OC The minimum and maximum range of analytical data for quality of coal for

composite seam is as given below:

Parameters Range

Minimum Maximum

Moisture % 8.0 (CMWG-118) 8.1 (CMWG-80)

Ash % 26.5 (CMWG-80) 27.3 (CMWG-118)

GCV (kCal/kg) (excluding Parting)

4470 4826

Average GCV (kcal/kg)

4755 kCal/kg (G-9)

Pauni – III OC

The minimum and maximum range of analytical data for quality of coal for bottom

section & top section is as given below:

Parameters Range

Minimum Maximum

Bottom Section


Ash % 18.7 (CMWG-164) 34.7 (CMWG-128)

GCV (kCal/kg)

(excluding Parting)

4072 5339

Top Section


Ash % 20.2 (CMWG-167) 40.0 (CMWG-155)

GCV (kCal/kg)

(excluding Parting)

3796 5073

GCV (Composite

Seam)

4830 kCal/kg (G-9)



OVERALL QUALITY

The overall quality of composite seam (top & bottom section combined) for

Amalgamated PR for Pauni-II & Pauni-III OC mine, on average basis, works out

to 4817 kCal/kg (Grade G-9).

4.5 GEOLOGICAL RESERVES

Pauni-II block

only one Composite workable seam in two sections designated as Top and

Bottom section occurs in the area under report. A total of 13.56 Mt of proved

quarriable reserves of Composite Seam have been established in Pauni

Extension Geological Block.

Out of 13.56 Mt Proved Geological Reserves in Pauni Extension Geological

Block, geological reserves upto 120m depth is 6.06 Mt and rest 7.50 Mt lies

beyond 120m depth.

Pauni-III block SECTORWISE, DEPTHWISE AND GRADEWISE QUARRIABLE NET PROVED

RESERVES, AREA WEST OF PAUNI EXTN. BLOCK.

Grade Depth (m) Total

reserves (Mt.)

Upto 50 50-100 100 - 150 150 - 200 > 200

SECTOR - A

i) Subcrop Zone 1.257 0.131 -- -- -- 1.388

ii) Full Thickness 0.050 14.037 8.769 2.550 0.093 25.499

TOTAL SECTOR – A 1.307 14.168 8.769 2.550 0.093 26.887

SECTOR – B

i) Subcrop Zone

0.494 -- -- -- -- 0.494

ii) Full Thickness 0.270 0.517 -- -- -- 0.787

TOTAL SECTOR– B 0.764 0.517 -- -- -- 1.281



Grade Depth (m) Total

reserves (Mt.)

Upto 50 50-100 100 - 150 150 - 200 > 200

SECTOR – C

i) Subcrop Zone 0.095 -- -- -- -- 0.095

ii) Full Thickness 0.186 0.838 -- -- -- 1.024

TOTAL SECTOR – C 0.281 0.838 -- -- -- 1.119

SECTOR – D i) No Subcrop Zone

ii) Full Thickness -- -- 3.045 8.921 2.398 14.364

TOTAL SECTOR – D -- -- 3.045 8.921 2.398 14.364

SECTOR-E NIL

TOTAL SECTOR A+B+C+D+E

A. SUBCROP ZONE

1.846

0.131

--

--

--

1.977

B. FULL SEAM THICKNESS

0.506 15.392 11.814 11.471 2.491 41.674

G. TOTAL 2.352 15.523 11.814 11.471 2.491 43.651

Pauni-III mining block has been projected in Sec - A, Sec - B and Sec - C.

Geological reserves estimated in the Pauni – III mining block is 29.287 Mt.

5.0 MINE BOUNDARY, MINEABLE RESERVES, TARGET & LIFE

5.1 MINE BOUNDARY DELINEATION

Pauni-II Block

The proposed Pauni-II OC Mine has been planned in Pauni Extension Geological

block which is bounded in north by fault F1-F1 (70m throw) and in south by

another fault F2-F2 (100m throw). Thus these two faults form the natural mine

boundary at the floor of coals seam of proposed Pauni II OC mine in northern and

southern side.

The top and bottom sections of composite seam subcrop in western side. The

subcrop of top section forms the mine boundary (in coal) in the western side

where bottom section also exists. The subcrop of bottom section has been

excluded because of high cut off ratio due to non-existence of top section at that



place.

In the eastern dip side, coal reserves have been proved upto a depth of 170m of

the floor of composite seam. However, in this report the dip side limit of quarry

has been fixed up to a depth of 120m at the floor of composite seam.

Thus the quarry boundaries (in coal) of the proposed Pauni-II OC Mine are as

follows:

Particulars North East South West

Proposed

Mine

Boundary

Fault F1-F1. 120m depth line at

the floor of bottom

section of composite

seam

Fault

F2-F2

Subcrop of

top section

of

composite

seam

Pauni-III Block

The geological block is bounded by faults in three directions & sub-crop of seam

in fourth direction. The block is divided in to five sectors i.e. ‘A’, ‘B’, ‘C’, ‘D’ & ‘E’

as detailed in para 4.6. The proposed mine is envisaged to mine coal in sectors

‘A’,’B’ & ‘C’ only, considering the geo-mining parameters, stripping ratio, etc.

Exploration is being carried out near sector ‘D’ and no geological reserves have

been projected in sector ‘E’ as it is having negligible width bounded with two

major faults.

The mining reserves in sector ‘A’, ‘B’ & ‘C’ have been considered upto dip side

major fault F2-F2 (max. depth about 200m). Faults namely F5-F5, F6-F6 & F8-F8

which exist towards east side of the property, make the eastern boundary of the

proposed mine. Reserves east of these faults (in Sector D) have not been

considered in this report as the extension of eastern side is still under geological



investigation. Subcrop of the bottom section of seam makes the southern &

western boundary of proposed mine.

The Mine boundary of Pauni – III OC mine are tabulated below :

5.2 MINEABLE RESERVES

Pauni-II OC The total in-situ geological reserves in entire Pauni Extension Geological Block

is 13.56 Mt, out of which 6.06 Mt is available upto 120m depth at floor of bottom

section. The net mineable reserves available in the proposed Pauni-II OC mine is

5.18 Mt. While estimating the net mineable reserves, 10% geological losses (0.61

Mt) and 5% mining losses (0.27 Mt) have been excluded from the proved

geological reserves.

Name Of

Seam

Floor Area

Considered

In Ha.

Thickness

Variation

'M'

Geological

Reserves

(Mt)

Geological

Losses

(Mt)

Mining

Losses

(Mt)

Mineable

Reserves

(Mt)

1 2 3 4 5 6 7

BOTTOM

SECTION

26.60 2.55m –

4.30m

6.06

0.61

0.27

5.18

TOP

SECTION

26.60 10.72m –

10.95m

Pauni-III OC

The total in-situ geological reserves in quarriable area of west of Pauni Extension

Geological Block (Pauni-III block) is 29.76 Mt. The net mineable reserve available

in the proposed Pauni III OC Mine is 25.45 Mt. While estimating the net mineable

reserve, 10% geological losses (2.98 Mt) and 5% mining losses (1.33 Mt) have

been considered.

Particulars North East South West

Proposed

mine

Boundary

Fault F2-

F2

Fault F5-

F5, F6-F6 &

F8-F8

Sub crop of

bottom section

Sub crop of bottom

section & Fault F1-F1



Name Of

Seam

Floor Area

Considered In

Ha.

Thickness

Variation

'M'

Geological

Reserves

(Mt)

Geological

Losses

(Mt)

Mining

Losses

(Mt)

Mineable

Reserv.

(Mt)

1 2 3 4 5 6 7

Bottom

Section

148.50 2.05 To

6.00

9.16 0.92 0.41 7.83

Top

Section

141.50 5.56 To

13.99

20.60 2.06 0.92

17.62

Total 29.76 2.98 1.33 25.45

Thus, the net mineable reserves assessed in Amalgamated Pauni-II & III OC

mine are 30.63 Mt (5.18 Mt in Pauni-II OC and 25.45 Mt in Pauni-III OC mine).

5.3 TARGET PRODUCTION & MINE LIFE

The proposed report has been prepared for a target capacity of 3.25 Mt/annum

from Pauni-II OC (0.75 Mty) and Pauni-III OC (2.50 Mty). The parameters of

opencast mine field and technical conditions of its development make this target

feasible with normal indices namely length, width & depth of the excavated block,

thickness of coal seam, seam gradient, method of mining etc.

The life of Amalgamated Pauni-II & Pauni-III OC mine works out to 14 years

considering annual target production of 3.25 Mty and mineable reserves of 30.63

Mt.

The break-up of mine life is as under:

Period Pauni-II OC Pauni-III OC Amalgamated Pauni-

II & Pauni-III OC

Pre construction period 1 Year 2 Years 1 Year

Construction/Production

Build-up period

2 Years 3 Years 4 Years

Target capacity period 5 Years 9 Years 3 Years

Tapering capacity

period

1 Year - 6 Years

Total life 9 Years 14 Years 14 Years



6.0 METHOD OF MINING

6.1 MINE PARAMETERS The different Mine parameters of proposed Pauni-II OC and Pauni-III OC mine

are as follows:

Sl. No. Particulars Pauni-II

OC

Pauni-III

OC

Total

1. Area of the Quarry

a) On floor (ha) 26.60 148.50 175.10

b) On surface (ha) 63.45 231.90 295.35

2. Depth (m) [upto floor of bottom section]

a) Initial 28-30m 27 27

b) Final 120m 200 200

3. Gradient of Seam 1 in 6 to

1 in 7

1 in 6 1 in 6 to

1 in 7

4. Average thickness of seams

a) Top Section 10.72m –

10.95m

10

b) Bottom Section 2.55m –

4.30m

4

5. Strike length (m) on floor of composite

seam

400 2500

6. Strike length (m) on surface 600 950

7. Width on surface (m) [dip rise] 1050 750

8. Width on floor (m) [dip rise] 825 750

9. GCV (kCal/kg) and Band of GCV 4755

( G-9)

4830

(G-9)

4817

(G-9)

10. Mineable Reserves (Mt) (considering

5% mining losses)

5.18 25.45 30.63

11. Total OB (Mm3) including access

trench

31.90 157.57 189.47

12. Average stripping ratio (m3/t) 6.16 6.19 6.19



6.2 SELECTION OF MINING METHOD

The target of proposed quarry has been envisaged as 3.25 Mty. Production is

proposed from multi sections (two sections) of composite seam. Property of

Pauni-II OC is having limited strike length, steep gradient (1 in 6 to 1 in 7) and

property of Pauni-III OC has several faults hence, deployment of Surface miner is

ruled out in the proposed PR. Deployment of dragline has not been proposed

considering the geo-mining conditions and lesser mine life (13 years revenue

life). Underground mining has been ruled out considering conservation of coal in

thick seam and better economics in an opencast compared to underground

mining.

Presently shovel-Dumper combination is being practiced very successfully in

existing mines of WCL. Hence, in proposed Amalgamated Pauni-II & III OC mine

also shovel-dumper combination has been proposed.

6.3 EQUIPMENT SELECTION

The proposed Amalgamated Pauni-II & III OC mine has been planned for Total

Hiring option and the entire coal and OB will be extracted by hiring / out-sourcing

agency.

Some Common departmental equipment have been proposed in the mine which

are as follows :

Sl. No. HEMM (For Common) Nos.

1. Fire Fighting Truck 1

2. 8-12 t crane 2

3. 2.8 m3 Backhoe 2

4. 3.1-4.6 m3 Front End Loader 1

5. Water Sprinkler 2

6.4 MINING SYSTEM & SYSTEM PARAMETERS 6.4.1 Width & height of benches

The height of benches in OB has been considered as 10m while height of

benches in coal has been considered as per thickness of seam. However,



maximum height of bench in coal seam has been considered as 5 m. The width

of working and non-working benches for top overburden removal have been

considered as 30m and 20m respectively. The height of benches for parting

removal has been considered as per thickness of parting. The width of coal and

parting bench has been considered as 20m. The height and width of uppermost

two benches in OB has been considered as 5m.

6.4.2 Slope of benches & quarry

i) During mining operation The slope of topmost two OB benches in quarry has been considered as 450. The

slope of Individual OB and coal benches has been considered as 700. The rise

side quarry slope has been considered as 370 and dipside working slope of

quarry has been considered about 220 during mining operation.

ii) At the end of quarry

At the end of quarry, the slope of topmost two OB benches has been considered

as 450 whereas the slope of individual OB benches in hard strata and coal

benches has been considered as 700. Quarry slope has been considered as 370

in rise side & dip side of quarry.

It is proposed in this Project Report to carry out scientific study for slope and

design of benches in quarry. Based on above scientific study, bench and quarry

profile may change.

7.0 MINING AND DUMPING STRATEGY 7.1 CONSTRAINTS ON MINE DEVELOPMENT

Major constrains / risks associated with the project are as follows:

a) Diversion of Lendi Nalla and Seasonal nala

Lendi nala is passing through coal bearing area of Pauni-III OC, which is

proposed to be diverted as per route shown in Quarry and Surface Layout Plan.

The proposed diverted length of lendi nala is 1.50 km and proposed to meet in

Sakhri nala. The seasonal nala are proposed to divert and meet in Lendi nala.

However, no capital provision has been made for diversion of seasonal nala.



b) Diversion of Sakhari Nala

Sakhri Nala is passing through coal bearing area of Pauni-II and Pauni-III OC,

which is proposed to be diverted as per route shown in Quarry and Surface

Layout Plan. The proposed diverted length of Sakhri nala is 2.00 km and

proposed to meet in Pauni nala.

c) Diversion of 66 kV power line, 11 kV power line & other rural feeders

66 kV HT line, 11 kV power line and other rural feeders passing over the quarry

area are proposed to be diverted. As per discussion with Ballarpur Area officials,

temporary diversion of 66 kV HT line has also been proposed. The temporary &

permanent diversion of 66 kV HT line has been proposed as per route shown in

Quarry & Surface layout Plan.

d) Diversion of Chincholi- Sakhri road

Chincholi- Sakhri road is passing through property of Pauni-II OC which is

proposed to be diverted. As per discussion with Ballarpur Area officials,

temporary diversion of Chincholi-Sakhri road has also been proposed. The

temporary & permanent diversion of Chincholi-Sakhri road has been proposed as

per route shown in Quarry & Surface layout Plan.

e) Land Acquisition Land acquisition will be a major challenge. For Pauni-II OC, 21.61 ha land is

already acquired for Pauni OC mine which is to be transferred by boundary

readjustment. Acquisition of land (305.80 ha) for Pauni-II OC is in advanced

stage. For Pauni-III OC, 825.25 ha land is proposed for acquisition. Out of 825.25

ha land for Pauni-III OC, 12.07 ha forest land is to be acquired which is a critical

activity.



7.2 MINING STRATEGY 7.2.1 Quarry & Access Trench

The proposed Amalgamated Pauni II & III OC mine has two quarries namely

Pauni-II OC & Pauni-III OC.

In Pauni-II OC, the Access Trench is proposed to touch the composite coal seam

near the sub-crop of Bottom section near fault F2-F2 (where top section also

exists). Slight variation in the position of fault F2-F2 can not be ruled out and it is

therefore proposed in this report to make confirmatory boreholes prior to making

the Access Trench to confirm the sub-crop of composite seam near the touching

point of Access Trench as well as to confirm the position of fault F2-F2.

Similarly, in Pauni-III OC, Access trench would be driven at a gradient of 1 in 16

to touch at subcrop of bottom section of seam (where thickness is 2.0m) in sector

‘A’. The Access Trench would be driven through the rise side batter to optimize

the OB excavation. Another Access trench is proposed to be driven for Sector ‘B’

& ‘C’. Part of this access trench would be common for both the sectors.

7.2.2 Cut-wise Coal, OB & Stripping Ratio

Both the quarries of Pauni-II & III OC have been divided into various Cuts. There

are six Cuts in Pauni-II quarry and ten Cuts in Pauni-III quarry. The different Cuts

and their extent along the floor of bottom section are tabulated below :

Quarry Cut No.

Description Quarry Cut No.

Description

Pauni-II

OC

Box cut Up to 37m depth Pauni-III

OC

Box cut 30 m along diprise in bottom section for 500m

strike length

Cut-I 37m to 45 m depth Cut-I Upto 30m depth

Cut-II 45m to 60m depth Cut-II 30m to 50m depth

Cut-III 60m to 80m depth Cut-III 50m to 70m depth

Cut-IV 80m to 100m depth Cut-IV 70m to 90m depth

Cut-V 100m to 120 m depth Cut-V 90m to 110m depth Cut-VI 110m to 130m depth Cut-VII 130m to 150m depth Cut-VIII 150m to 170m depth Cut-IX 170m to dipside limit



Cut wise quantities for both the quarries are summarized below.

CUT-WISE COAL, OB & STRIPPING RATIO

PAUNI – II OC

Cut No. COAL (Mt) OB (Mm3) S/R (m3/t)

Box Cut 0.40 1.98 4.94

Cut-I 0.35 0.99 2.84

Cut-II 0.71 3.50 4.95

Cut-III 1.00 7.66 7.64

Cut-IV 1.14 10.59 9.29

Cut-V 1.58 7.18 4.53

Total 5.18 31.90 6.16

PAUNI-III OC

Cut No.

COAL (Mt) OB (Mm3) S/R (m3/t)

Bottom

Section

Top

Section

Total Coal Parting

Top OB Total OB

Box Cut 0.07 0.35 0.42 0.19 3.81 4.00 9.52

Cut-I 0.22 0.75 0.97 0.30 7.93 8.23 8.48

Cut-II 2.05 3.76 5.81 1.29 35.48 36.77 6.33

Cut-III 1.26 3.27 4.53 1.07 21.42 22.49 4.96

Cut-IV 1.29 2.46 3.75 0.85 19.81 20.66 5.51

Cut-V 0.75 1.85 2.60 0.56 21.62 22.18 8.53

Cut-VI 0.56 2.06 2.62 0.44 20.18 20.62 7.87

Cut-VII 0.67 1.52 2.19 0.56 14.17 14.73 6.73

Cut-VIII 0.53 1.01 1.54 0.41 6.23 6.64 4.31

Cut-IX 0.43 0.59 1.02 0.26 0.99 1.25 1.22

Total 7.83 17.62 25.45 5.93 151.64 157.57 6.19

AMALGAMATED PAUNI-II & PAUNI-III OC

COAL, OB & STRIPPING RATIO

QUARRY COAL (Mt) OB (Mm3) S/R (m3/t)

PAUNI-II OC 5.18 31.90 6.16

PAUNI-III OC 25.45 157.57 6.19

Total 30.63 189.47 6.19

7.3 DUMPING STRATEGY

As detailed above, entire mining area is divided in 2 quarries namely Pauni-II OC

& Pauni-III OC. Due to limited strike length of the quarry in Pauni-II OC and steep

gradient of seam sections, no internal dumping is proposed in the quarry and

therefore the entire overburden will be dumped externally. The layout of these OB



dumps are shown in Quarry and Surface layout plan. External Dump ‘D” having

dumping capacity of 25.45 Mm3 and maximum height of 90m for dumping of hard

OB of Pauni-II OC, has three benches each of 30m height and final angle of

slope is proposed to be kept at maximum 25o. It is proposed to remove soil upto

3m depth in 120m trench along periphery of proposed external dump ‘D’ to

increase the stability of dump. However, it is proposed in this report to involve

some scientific agency to conduct the study on slope stability and the final angle

of slope as suggested by the above agency will be implemented. Provision for

the same has been made in PR.

Another external dump ‘C’ on coal bearing area between Pauni-II & Pauni-III OC,

having dumping capacity of 12.80 Mm3 and maximum height of 30m at slope

angle of 370 has been proposed for dumping of Black cotton soil of Pauni-II (3.63

Mm3), part of black cotton soil of Pauni-III OC (6.24 Mm3), trench cutting OB from

the site of Dump ‘A’ Of Pauni-III OC (1.88 Mm3) and trench cutting OB from the

site of Dump ‘D’ Of Pauni-II OC (1.05 Mm3). It is proposed to rehandle entire

12.80 Mm3 of black cotton soil dump quantity in void of Pauni-III OC as shown in

Calender programme of excavation. It is also proposed to construct an

embankment (6m high above HFL & top width of 20m) against Lendi nala, Sakhri

nala, Pauni nala and seasonal nala. 2.82 Mm3 of hard OB from Pauni-II OC will

be used for construction of this embankment.

The volume of different OB Dumps for Pauni-II OC are tabulated below:

DUMP CAPACITY (PAUNI-II OC)

Sl.

No.

Dump Height Volume of OB

Dump (Mm3)

1. Temp. Black cotton soil dump ‘C’ 30m 3.63

2. Embankment 6m above HFL 2.82

3. Dump ‘D’ 0 – 30m 14.15

30 – 60m 8.22

60-90m 3.08

Sub-Total 25.45



4. Internal Dumping 0.00

Total OB (1+2+3) 31.90

5 Trench cutting OB in dump ‘C’ 1.05

6. Total OB (including trench cutting OB) 32.95

In Pauni-III OC, external Dump ‘A” having dumping capacity of 76.60 Mm3 and

maximum height of 90m for dumping of hard OB of Pauni-III OC, has three

benches each of 30m height and final angle of slope is proposed to be kept at

maximum 25o. It is proposed to remove soil upto 3m depth in 120m trench along

periphery of proposed external dump ‘A’ to increase the stability of dump.

Another external dump ‘B’ on dipside non coal bearing area having dumping

capacity of 6.80 Mm3 and maximum height of 30m at slope angle of 370 has

been proposed for dumping of Black cotton soil of pauni-III OC. As mentioned

earlier, external dump ‘C’ on coal bearing area between Pauni-II & Pauni-III OC,

having dumping capacity of 12.80 Mm3 and maximum height of 30m at slope

angle of 370 has been proposed for dumping of Black cotton soil of Pauni-II &

part of black cotton soil of Pauni-III OC. In Black cotton dump ‘C’ having capacity

of 12.80 Mm3, it is proposed to dump 3.63 Mm3 Black cotton soil (upto 6 depth )

of Pauni-II OC and balance quantity 9.17 Mm3 (12.80-3.63) of black cotton soil

will be dumped from quarry of Pauni-III OC.

Internal dumping has also been proposed in the mine towards western side of the

property in the sector A of the proposed mine. It has been projected to backfill

67.93 Mm3 of OB in this dump. Out of 67.93 Mm3 of backfilled OB, 54.11 Mm3 of

OB will be dumped upto surface level and 13.82 Mm3 of OB will be dumped

above surface level. The details of OB dumps have been tabulated in the table

below :-

DUMP CAPACITY (PAUNI-III OC)

Sl. No. Dump Height Volume of OB Dump

(Mm3)

1. Black cotton soil dump ‘B’ 30m 6.80



2. Black cotton soil dump ‘C’ 30m 6.24

3. Dump ‘A’ 0 – 30m 35.37

30 – 60m 25.60

60-90m 15.63

Sub-Total 76.60

Total external dump (1+2+3) 89.64

4. Internal Dump (excluding rehandled OB

from temporary OB dump ‘C’

67.93

Total OB (1+2+3) 157.57

5. Trench cutting OB in dump ‘C’ 1.88

6 Total OB (including trench cutting OB) 159.45

Thus, Out of total 192.40 Mm3 OB (31.90 Mm3 from quarry of Pauni-II OC, 157.57

Mm3 from quarry of Pauni-III OC, 1.88 Mm3 from trench cutting at Dump ‘A’ and

1.05 Mm3 from trench cutting at Dump ‘D’), 124.47 Mm3 OB will be

accommodated in External OB Dump and balance 67.93 Mm3 will be dumped in

decoaled void of quarry of Pauni-III OC. Thus, 64.69% of total OB will be dumped

externally and 35.31% OB will be accommodated in Internal Dump. Thus, the

Dump Capacity for Amalgamated PR for Pauni-II & III OC is summarised below:



DUMP CAPACITY FOR AMALGAMATED PAUNI-II & III OC

Sl.

No.

Dump Location Source of OB Volume of

OB (Mm3)

A) EXTERNAL DUMP

1) Dump-A In rise side of

Pauni-III OC Pauni-III OC 76.60

2) BC Soil Dump-B In dip side of

Pauni-III OC Pauni-III OC 6.80

3) Dump-D In rise side of

Pauni-II OC

Pauni-II OC 25.45

4) Embankment Surrounding

Pauni-II & Pauni-

III OC

Pauni-II OC 2.82

Total (External Dump)

Pauni-II OC

Pauni-III OC

Total

28.27

83.40

111.67

B) Temporary BC

Soil Dump-C

( This entire OB dump

will be rehandled &

accomodated in

internal dump in

decoaled void of

Pauni-III OC

In Coal bearing

area between

Pauni-II &

Pauni-III OC

a) Pauni-II OC

b) Pauni-III OC

c) Trench Cutting at

Dump A

d) Trench Cutting at

Dump D

Sub-Total (B)

3.63

6.24

1.88

1.05

12.80

C) INTERNAL DUMP

1) De-coaled void of

Pauni-III OC

De-coaled void

of Pauni-III OC

a) Pauni-III OC

b) Rehandling of

Temporary BC Soil

Dump C

67.93

12.80

GRAND TOTAL (EXTERNAL+ INTERNAL)

Pauni-II OC

Pauni-III OC

Trench Cutting at

Dump sites

TOTAL

31.90

157.57

2.93

192.40



8.0 MINING SCHEDULE AND EQUIPMENT PHASING

8.1 DESIGN CRITERIA

Project report for Amalgamated Pauni-II & III OC mine has envisaged 330 days of

working in a year based on 7 days schedule of mine working. As per the

prevalent practice in WCL, there will be three working shifts in a day each of 8

hours duration. The excavation category of OB material has been assumed as

50% Category III + 50% Category IV, whereas for Coal it is assumed as Category

IV. The insitu volume weight of OB material has been considered as 2.2 t/m3

whereas for coal it is 1.60 t/m3.

8.2 ANNUAL PRODUCTIVITY OF HEMM WITH DIFFERENT LEAD

The entire coal and OB will be extracted through outsourcing agency and

therefore, the productivity of HEMM will depend on the HEMM to be deployed by

outsourcing agency. However, the lead for coal and for OB has been estimated

based on quarry and dump profile and distance of dump from quarry.

Based on the quarry profile, dump location & distance between different cuts of

quarry & dumps, the following haul distances have been assessed for OB and

coal.

Sl. No. COAL / OB LEAD

A) PAUNI – II OC

i) For Coal (Maximum) 2.50 km

ii) For OB (Average) 2.50 km

B) PAUNI-III OC

i) For Coal (Maximum) 3.50 km

ii) For OB (Average) 2.00 km



8.3 CALENDAR PROGRAMME OF EXCAVATION

Pauni-II OC is an on-going project of WCL & land acquisition is in progress. It is

envisaged in this PR of Amalgamated Pauni-II & Pauni-III OC mine that part land

of Pauni-II OC will be acquired in 1st year. It is proposed to start coal production

and OB removal from 2nd year in Pauni-II OC mine. However, coal extraction and

OB removal in Pauni-III OC mine will start from 3rd year. Thereafter, both Pauni-II

& Pauni-III OC will be operated simultaneously.

The separate calendar programme of both the mines as well as combined

calendar programme is tabulated below :

CALENDAR PROGRAMME OF EXCAVATION (FOR PAUNI –II OC)

Year

Coal (Mt) Natural OB (Mm3) Programed OB (Mm3)

In Quarry Trench

Cutting

In Quarry Trench

Cutting Total

Yearly Cumm. Yearly Cumm.

Yearly

Cumm.

Insitu RH* Total

1 Land Acquisition

2 0.40 0.40 1.98 1.98 1.05 2.00 0.00 2.00 2.00 1.05 3.05

3 0.60 1.00 2.23 4.21 2.25 0.00 2.25 4.25 2.25

4 0.75 1.75 4.48 8.69 4.50 0.00 4.50 8.75 4.50

5 0.75 2.50 5.82 14.51 6.00 0.00 6.00 14.75 6.00

6 0.75 3.25 6.97 21.48 6.75 0.00 6.75 21.50 6.75

7 0.75 4.00 5.07 26.55 4.76 0.74 5.50 27.00 5.50

8 0.75 4.75 3.40 29.95 2.76 0.74 3.50 30.50 3.50

9 0.43 5.18 1.95 31.90 1.40 0.00 1.40 31.90 1.40

TOTAL 5.18 31.90 1.05 30.42 1.48 31.90 1.05 32.95

Note:* 31.90 Mm3 OB of Pauni-II OC includes 1.48 Mm3 OB dumped in the dip

side of Pauni-II OC from nearby Pauni OC mine.



CALENDAR PROGRAMME OF EXCAVATION (FOR PAUNI – III OC)

Year

Coal (Mt) Natural OB (Mm3) Programed OB (Mm3)

In Quarry Trench Cutting

In Quarry Trench Cutting

Total Yearly Cumm. Yearly Cumm. Yearly Cumm.

1 Land Acquisition

2 Land Acquisition

3 0.40 0.40 3.79 3.79 1.88 4.00 4.00 1.88 5.88

4 0.80 1.20 6.82 10.61 7.00 11.00 7.00

5 1.50 2.70 9.92 20.53 10.00 21.00 10.00

6 2.50 5.20 15.83 36.36 15.50 36.50 15.50

7 2.50 7.70 15.12 51.48 15.50 52.00 15.50

8 2.50 10.20 12.42 63.90 14.00 66.00 14.00

9 2.50 12.70 12.95 76.85 14.00 80.00 14.00

10 2.50 15.20 13.78 90.63 14.25 94.25 14.25

11 2.50 17.70 20.48 111.11 18.50 112.75 18.50

12 2.50 20.20 19.91 131.02 18.50 131.25 18.50

13 2.50 22.70 17.40 148.42 18.00 149.25 18.00

14 2.75 25.45 9.15 157.57 8.32 157.57 8.32

TOTAL 25.45 157.57 1.88 157.57 1.88 159.45

CALENDAR PROGRAMME OF EXCAVATION (FOR AMALGAMATED PAUNI-II & PAUNI – III OC)

Year

Coal (Mt) Natural OB (Mm3) Programed OB (Mm3) Rehan-

dling of

BC Soil

Dump

(Mm3)

In Quarry Trench

Cutting

In Quarry Trench

Cutting Total

Yearly Cum. Yearly Cum.

Yearly

Cum.

Insitu RH Total

1 Land Acquisition

2 0.40 0.40 1.98 1.98 1.05 2.00 0.00 2.00 2.00 1.05 3.05

3 1.00 1.40 6.02 8.00 1.88 6.25 0.00 6.25 8.25 1.88 8.13

4 1.55 2.95 11.30 19.30 11.50 0.00 11.50 19.75 11.50

5 2.25 5.20 15.74 35.04 16.00 0.00 16.00 35.75 16.00

6 3.25 8.45 22.80 57.84 22.25 0.00 22.25 58.00 22.25

7 3. 25 11.70 20.19 78.03 20.26 0.74 21.00 79.00 21.00

8 3.25 14.95 15.82 93.85 16.76 0.74 17.50 96.50 17.50

9 2.93 17.88 14.91 108.76 15.40 0.00 15.40 111.90 15.40

10 2.50 20.38 13.78 122.54 14.25 0.00 14.25 126.15 14.25

11 2.50 22.88 20.48 143.02 18.50 0.00 18.50 144.65 18.50 3.20

12 2.50 25.38 19.91 162.93 18.50 0.00 18.50 163.15 18.50 3.20

13 2.50 27.88 17.40 180.33 18.00 0.00 18.00 181.15 18.00 3.20

14 2.75 30.63 9.14 189.47 8.32 0.00 8.32 189.47 8.32 3.20

TOTAL 30.63 189.47 2.93 187.99 1.48 189.47 2.93 192.40 12.80



8.4 DUMPING SCHEDULE

The year-wise Dumping Schedule in the proposed Amalgamated Pauni-II & III

OC mine is tabulated below :

Year QUARRY /

TRENCH

CUTTING

(Mm3)

PROG.

OB

(Mm3)

(including

Rehandling)

Dumping (Mm3)

Dump-

A

BC Soil

Dump-B

Temp.

BC soil

Dump-C

Dump-

D

Embank-

ment

Internal

Dumping in

void of

Pauni-III OC

1 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2

Pauni-II 2.00 0.00 0.00 0.20 0.00 1.80 0.00

Trench

Pauni-II 1.05 0.00 0.00 1.05 0.00 0.00 0.00

3

Pauni-II 2.25 0.00 0.00 0.30 0.93 1.02 0.00

Pauni-III 4.00 3.20 0.80 0.00 0.00 0.00 0.00

Trench

Pauni-III 1.88 0.00 0.00 1.88 0.00 0.00 0.00

4 Pauni-II 4.50 0.00 0.00 0.55 3.95 0.00 0.00

Pauni-III 7.00 5.70 1.30 0.00 0.00 0.00 0.00

5 Pauni-II 6.00 0.00 0.00 0.70 5.30 0.00 0.00

Pauni-III 10.00 8.20 1.80 0.00 0.00 0.00 0.00

6 Pauni-II 6.75 0.00 0.00 0.78 5.97 0.00 0.00

Pauni-III 15.50 11.40 2.60 0.00 0.00 0.00 1.50

7 Pauni-II 5.50 0.00 0.00 0.58 4.92 0.00 0.00

Pauni-III 15.50 9.20 0.30 2.50 0.00 0.00 3.50

8 Pauni-II 3.50 0.00 0.00 0.52 2.98 0.00 0.00

Pauni-III 14.00 7.50 0.00 2.50 0.00 0.00 4.00

9 Pauni-II 1.40 0.00 0.00 0.00 1.40 0.00 0.00

Pauni-III 14.00 7.76 0.00 1.24 0.00 0.00 5.00

10 Pauni-III 14.25 8.75 0.00 0.00 0.00 0.00 5.50

11 Pauni-III 18.50 13.00 0.00 0.00 0.00 0.00 5.50

Rehandling 3.20 0.00 0.00 (-) 3.20 0.00 0.00 3.20

12 Pauni-III 18.50 1.89 0.00 0.00 0.00 0.00 16.61

Rehandling 3.20 0.00 0.00 (-) 3.20 0.00 0.00 3.20

13 Pauni-III 18.00 0.00 0.00 0.00 0.00 0.00 18.00

Rehandling 3.20 0.00 0.00 (-) 3.20 0.00 0.00 3.20

14 Pauni-III 8.32 0.00 0.00 0.00 0.00 0.00 8.32

Rehandling 3.20 0.00 0.00 (-) 3.20 0.00 0.00 3.20

Total OB 205.20 76.60 6.80 0.00 25.45 2.82 80.73



8.5 EQUIPMENT SCHEDULE ~ SCHEDULE OF EXPENDITURE ON HIRING/ OUTSOURCING OF EQUIPMENT

As described earlier, the entire coal and OB will be excavated by

hiring/outsourcing of equipment. The cost of OB and parting removal and coal

extraction by hiring/outsourcing of equipment depends on type of strata and lead.

In the proposed Amalgamated Pauni- II & III OC mine, the strata under

consideration is medium hard strata. The rates for OB by hiring of equipment for

the proposed mine have been estimated on the basis of FD approved rates

circulated by WCL, updated with change in price of diesel for April’2015 (Rs

53.46/litre).

The average rate (Rs./m3) for excavation / rehandling of OB and extraction of

coal (Rs/t) are tabulated below :

Year

COAL OB Trench Cutting Rehandling OB

Prod.

Hiring

Rate

(Rs./t)

Insitu

OB

(Mm3)

Hiring

Rate

(Rs./m3)

Trench

Cutting

(Mm3)

Hiring

Rate

(Rs./m3)

Rehan-

dled OB

(Mm3)

Hiring

Rate

(Rs./m3)

1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2 0.40 28.53 2.00 50.78 1.05 51.91 0.00 0.00

3 1.00 28.53 6.25 50.31 1.88 51.91 0.00 0.00

4 1.55 30.05 11.50 53.78 0.00 0.00 0.00 0.00

5 2.25 31.56 16.00 55.83 0.00 0.00 0.00 0.00

6 3.25 32.35 22.25 56.85 0.00 0.00 0.00 0.00

7 3.25 33.15 20.26 58.58 0.00 0.00 0.74 58.58

8 3.25 34.70 16.76 59.56 0.00 0.00 0.74 59.56

9 2.93 36.25 15.40 59.81 0.00 0.00 0.00 0.00

10 2.50 37.04 14.25 52.47 0.00 0.00 0.00 0.00

11 2.50 37.83 18.50 52.47 0.00 0.00 3.20 45.16

12 2.50 39.01 18.50 52.47 0.00 0.00 3.20 45.16

13 2.50 40.18 18.00 52.47 0.00 0.00 3.20 45.16

14 2.75 40.18 8.32 52.47 0.00 0.00 3.20 45.16

TOTAL 30.63 187.99 2.93 14.28



Rates for excavation for hiring/ outsourcing of HEMM are being adopted in this

report for planning purpose and economic evaluation of the project. These rates

may vary at the time of actual implementation. The rates include excavation,

transport, drilling, dozing at face & dumps, water spraying and Land Reclamation.

It is also suggested here that before awarding the work to hiring agency,

geological structure should be further confirmed by drilling additional boreholes.

Lead for OB, bench-wise, horizon-wise has been calculated for each cut on

weighted average basis keeping into account the OB dumping programme. The

lead for coal is calculated based on floor RL of each cut to coal stock yard. On

actual implementation of report these rates and lead may vary based on site

conditions. It is suggested to re-assess hiring rates again based on site

conditions while awarding tender.

8.6 DRILLING & BLASTING

Drilling pattern in overburden, with a bench height of 10 m has been envisaged

with the burden as 5.0-6.0 m and spacing as 6.5-7.0 m. The powder factor of

3.65 m3/kg has been considered for overburden for planning purpose.

For coal, depending upon the thickness available in the horizons, bench height of

maximum 5 m is being proposed. For coal bench, drilling pattern with burden

and spacing of 2.5 m & 3.0 m respectively has been proposed. A powder factor

of 5.48 t/kg has been considered for blasting in coal for planning purpose.

However at the time of operation of mine, drilling parameters have to be

optimized on the basis of actual field trial depending upon joint pattern, bedding

plane and local geology of the blast site and accordingly powder factor for OB &

coal may vary after final trial of blasting.

It is proposed that bulk loading explosive may be used. For storage of L.D.

explosive and accessories existing magazine at Pauni OC is proposed to be

used.



9.0 QUALITY

Quality of coal has been assessed for both the quarries separately as well as for

Amalgamated OC based on the borehole data available within the quarry area.

Pauni – II OC The minimum and maximum range of analytical data for quality of coal for

composite seam is as given below:

Parameters Range

Minimum Maximum


Ash % 26.5 (CMWG-80) 27.3 (CMWG-118)

GCV (kCal/kg)

(excluding Parting)

4470 4826

Overall quality has been assessed based on borehole wise GCV in quarriable

area which works out to 4755 kCal/kg (G-9).

Pauni – III OC

The minimum and maximum range of analytical data for quality of coal for bottom

section & top section is as given below:

Parameters Range

Minimum Maximum

Bottom Section


Ash % 18.7 (CMWG-164) 34.7 (CMWG-128)

GCV (kCal/kg)

(excluding Parting)

4072 5339

Top Section


Ash % 20.2 (CMWG-167) 40.0 (CMWG-155)

GCV (kCal/kg)

(excluding Parting)

3796 5073



Overall quality for Pauni-III OC has been assessed based on borehole wise GCV

in the quarriable area (calculated basis) which works out to 4830 kCal/kg (G-9).

OVERALL QUALITY

The overall quality of composite seam (top & bottom section combined) for

Amalgamated PR for Pauni-II & Pauni-III OC mine, on average basis, works out

to 4817 kCal/kg (Grade G-9).

10.0 PUMPING & DRAINAGE

The Pumping capacity required at the time of five years after reaching the target

has been calculated as under:-

Sl.

No.

DESCRIPTIONS CALCULATED DATA

Pauni-II OC Pauni-III OC

1 Maximum exposed area (ha) 53.7 131.5

2 Maximum backfilled area (ha) 0.00 73.5

3 Surface area of mine considered for

excavation (ha)

53.7 205

4 Area beyond excavation (ha),5% of item

(3)

2.685 10.25

5 Run-off co-efficient for

a) Open excavation 0.70 0.70

b) Area beyond excavation 0.10 0.10

6 Rainfall infiltration co-efficient for backfilled

area

0.20 0.20

7 Probable max. rainfall in a day (mm) 172 172

8 Water collected in the quarry due to

exposed area and area beyond excavation

(cum/day)

65117 184741

9 Required pumping capacity to handle the

whole water of the rain water in 100 hrs

(lps)

181 513

10 Seepage due to strata (15% of Item 9) 27 77

11 Total pumping capacity 208 590

12 Depth in target plus five years (m) 120 200



Pumping system has been designed for the volume of water accumulated in the

mine at the target plus five year production considering maximum rainfall in a day

as 172mm

Peak pumping capacity worked out as 74884 cum for Pauni-II & 212452 cum for

Pauni-III

Above volume of water will be dewatered in 5 days at the rate of 20 hrs pumping

per day.

Pumping capacity per day thus worked out as 14977 cum for Pauni-II & 42490

cum for Pauni-III

10.1 SELECTION OF PUMPS DELIVERY RANGES

Pauni-II OC (i) Four pumps of 80lps x 150m head have been proposed. Out of four

pumps, one pump is standby.

(ii) Two pumps of 80 lps x 80m head have been proposed.

(iii) One diesel pump of 80lps x 60m head has been proposed.

(iv) Three face pumps of 11lps x 30 m head have been envisaged in this

report.

(v) One delivery range of 312mm dia. has been proposed for main pumps of

80lps x 150m head and maximum two pump will be connected in this

delivery.

(vi) One delivery range of 219mm dia. have been used for main pumps of

80lps x 150m.

(vii) Two delivery ranges of 219mm dia. have been used for auxiliary pumps of

80lps x 80m.

(viii) 80 mm dia. G.I. pipe will be used for face pumps.

(ix) No piping provision have been made for standby pumps.



Pauni-III OC

i) Five pumps of 160lps x 250m head have been proposed. Out of five pumps,

one pump is standby.

ii) Three pumps of 80 lps x 150m head have been proposed.

iii) One diesel pump of 80lps x 60m head has been proposed.

iv) Six face pumps of 11lps x 30 m head have been envisaged in this report.

Out of six pumps, one pump is standby.

v) One delivery ranges of 406.4 mm dia. have been proposed for main pumps

of 160lps x 250m head and maximum two pumps will be connected in each

delivery.

vi) One delivery range of 312mm dia. has been proposed for main pumps of

160lps x 150m head and maximum one pump will be connected in this

delivery.

vii) Three delivery ranges of 219mm dia. have been used for auxiliary pumps of

80lps x 160m.

viii) 80 mm dia. G.I. pipe will be used for face pumps.

ix) No piping provision have been made for standby pumps.

11.0 COAL HANDLING ARRANGEMENT

Combined CHP has been proposed for both quarries in this PR to handle the

entire production of coal from both mines (Pauni-II & Pauni-III OC). Location of

the CHP has been proposed near access trench of proposed Pauni-III OC.

However, exact location will depend upon site conditions.

Salient Features of CHP are summarized below.

a) There will be two streams. In first stream there will be three numbers of

integrated feeder breaker with secondary sizer for crushing of coal to (-) 100

mm size and discharging crushed coal onto 1400 mm wide belt conveyor. In

second stream there will be one number of integrated feeder breaker with

secondary sizer for crushing of coal to (-) 100 mm size and discharging

crushed coal onto 1200 mm wide belt conveyor.



b) Conveying of coal by two streams of 1400 mm wide belt conveyors and

1200 mm wide belt conveyor. 1400 mm wide belt conveyors are for first

stream and 1200 mm wide belt conveyor is for second stream.

c) Storage of coal in one no. of 2 x 100 t capacity overhead hoppers in second

stream and in 7000t capacity ground bunker in first stream.

d) Despatch of coal by trucks in second stream and feeding to Cross Country

Conveyor Transportation (CCT) in first stream by the belt conveyors. A CCT

of 1400/1600 mm wide belt width will be installed for Gauri, Pauni and Sasti

group of mines which will collect coal from mines and discharge coal into 20

thousand tonne capacity ground bunker at proposed Rapid Loading system

(RLS) siding at Sasti by tripper conveyor. Coal from ground bunker will be

loaded into reclaim conveyor by plough feeder. Reclaim conveyor will

discharge into elevating conveyor which will discharge into 4000t capacity

silo. From silo coal will be loaded into wagons by RLS. Cost of silo, RLS,

CCT, Ground bunker for silo, siding, other common conveyors and other

common equipment will be provided through a separate scheme, hence

capital provision has not been made in this PR.

e) Dust suppression and fire extinguisher system

f) Power supply, illumination and control systems

g) Civil and structural cost

h) Weighment of coal with the help of road weighbridge for road dispatch.

11.1 RAILWAY SIDING

No financial provision has been made in this report under this head. Railway

siding shall be prepared by a separate scheme.



12.0 WORKSHOP & STORES

12.1 WORKSHOP

The proposed Amalgamated Pauni-II & III OC mine has been planned for Total

hiring option. The entire coal extraction and OB removal will be done by hiring

agency. The HEMM deployed in the mine will be operated and maintained by

hiring / out-sourcing agency. Hence, No provision for excavation workshop

has been made in this report.

E & M workshop E & M Workshop facilities have been proposed in this PR to carry out

maintenance & repair of the CHP, equipment, pumps, LMVs, electrical etc. The

E&M workshop is essentially a unit workshop and will depend on central/regional

workshop for major repair and part manufacture.

12.2 STORES

Unit store will cater the routine needs of consumables, spares, POLs etc.

13.0 POWER SUPPLY

For the proposed Amalgamated Pauni II & Pauni III OC Mine, maximum demand

of the mine will be 4636 kVA for Total Hiring Option (Including Township). Initially

at the starting of this project, the power will be made available by extending the

11kV feeder from existing Pauni mine to Pauni II O/C mine. This 11kV feeder will

have insulator, Conductor & pole structure of 33kV rating. When the proposed

Amalgamated Pauni II & Pauni III OC Mine will reach its production stage this

11kV feeder will be converted to 33kV feeder.

A 220 kV/33 kV, 2 x 16 MVA central substation is proposed to be installed near or

adjacent to the premises of existing Sasti central 66kV/11kV S/S. It is proposed

to draw approx. 5 km long, 220 kV line from the new 220 kV/33 kV substation,

which is under construction near Ballarpur Paper Mill in Ballarpur township to

Sasti central substation.



From this proposed 220 kV/33 kV S/S a 33kV feeder, 11 km long, will be drawn

to meet the power requirement of Amalgamated Pauni II and Pauni III OC mine.

A 33 kV/3.3 kV, 2 x 5 MVA substation is proposed to be installed near

Amalgamated Pauni II and Pauni III OC mine at a suitable location in non coal

bearing area to meet the power requirement of this proposed mine.

In another option for power supply, if power will be available at 33 kV nearby area

in Ballarpur then it can be utilized as incoming power source of Amalgamated

Pauni II and Pauni III OC mine. Two situations are being envisaged at this stage.

The first one is the conversion of existing 66 kV incoming line to 33 kV, of Sasti

central substation by MSEDCL which is under consideration. The second one is

availability of power at the new 220 kV/33 kV substation, which is under

construction near Ballarpur Paper Mill in Ballarpur Township.

Salient features of the electrical parameters are given in table below:-

Sl. No. ITEM HEAD TOTAL HIRING

1

PROJECTED MAXIMUM DEMAND

A) ONLY MINE 8084 kW

B) ONLY TOWNSHIP 334 kW

C) TOTAL 8418 kW

2

SPECIFIC ENERGY CONSUMPTION

A) WITH RESPECT TO OB PRODUCTION NIL

B) WITH RESPECT TO COAL PRODUCTION 2.59 kWh/t

C) WITH RESPECT TO COMMON LOAD 2.11 kWh/t

D) WITH RESPECT TO TOTAL LOAD 4.70 kWh/t

3 SPECIFIC POWER COST 47.87 Rs. /t

4 FIXED PERCENTAGE OF POWER COST 44.09 %

5 VARIABLE PERCENTAGE OF POWER COST 55.91 %

6 AVERAGE COST OF PURCHASED POWER 10.19 Rs./kWh



14.0 CIVIL CONSTRUCTION WORKS

The Building Cost Index for the Maharastra has been worked out to 560 in 2015

(1st half) taking the prevalent rates of materials and labours in Maharastra. This

Building Cost Index is with reference to base 100 in Nagpur as on 1.1.1992.

14.1 SERVICE BUILDINGS

Keeping in view the needs and requirements of this mine, provision for all

necessary service buildings such E & M workshop, Sub–station and other service

buildings have been provided.

14.2 RESIDENTIAL BUILDING

Total manpower proposed for this project is 242. Considering the availability of

quarters at existing colonies of Pauni OC, Gauri OC etc. TSC of WCL Board

held on 01.06.2015 at WCL (HQ), Nagpur directed to delete the capital

provision for residential buildings. Only Hostel type accommodation has been

provided in the proposed PR.

14.3 ROADS & CULVERTS

1.40 km long Haul road for 35T dumper capacity has been provided for

transportation of coal / OB inside quarry. For approaching different Service

Buildings 1.00 km long Sector Road on Stratum `D’ specification with culverts,

drain, tree guards etc. has been proposed.

Temporary diversion of road from Chincholi to Sakhri village for 1.0 km length of

Stratum ‘C’ and Permanent diversion of road (on proposed embankment) from

Chincholi to Sakhri village for 7.5 km length of Stratum ‘C’ has been proposed.

Accordingly, provision for road diversion have been made in proposed PR for

Amalgamated Pauni-II and Pauni-III OC.



14.4 WATER SUPPLY & SEWERAGE

Water supply arrangements have been envisaged for project only. The total water

requirement for project site has been worked out to 880 kl. Water demand for

project site includes water to be supplied for dust suppression, fire fighting, water

sprinkling on roads, etc.

Sub-soil water has been envisaged as the source. Accordingly, bore-well

provisions have been made. Sub-soil water through bore well has been proposed

to be conveyed to O.H. reservoirs via ground sumps. Further, water from O.H.

reservoir shall be supplied under gravity to different buildings after chlorination.

It is, however, suggested that permanent water supply arrangement should be

formulated after carrying out detailed survey, investigations for the adequate

source of water and detailed engineering. The details and estimated amount for

Water supply in colony use & industrial use is given in PR.

To avoid any discharge of effluent into natural water-courses, sewage disposal

arrangement has been envisaged. Estimated amount for sewage disposal

arrangement for project site along with required surface drains is given in PR.

However, final economical scheme may be formulated after detailed survey &

engineering considering the site parameters.

15.0 SAFETY & CONSERVATION

15.1 SAFETY FROM INUNDATION

Lendi nala, Sakhri nala and some seasonal nalas are passing through proposed

mine area of Amalgamated Pauni-II & Pauni-III OC. The HFL of these nalas are

not known. In this report, if required, it is proposed to make a flood protection

embankment 6m above HFL around the proposed mine wherever necessary. The

top width of embankment is proposed as 20m. During rainy season regular

inspection of embankment shall be done. All precautions as per CMR 126 shall

be taken.



15.2 DUST SUPPRESSION

For suppression of dust, fixed type water sprinklers may be provided.

Suppression of mine dust may be done by using package bond & dust bond, for

methodology of application DGMS Circular No.8 of 1997 may be referred.

15.3 SAFETY FROM FIRE AND SPONTANEOUS HEATING

No person shall deposit heated material or ashes on any opencast working. No

person shall light a fire or permit a fire to be lighted in any OC working except by

the permission in writing of the Manager and only for a special purpose specified

therein. No coal shall be left exposed in coal benches more than its incubation

period to avoid fire in seam due to spontaneous heating. Proper type of the

extinguisher should be kept in each HEMM ready for use in case of emergency.

In coal stock, coal shall be dispatched on the basis of first in first out.

15.4 SLOPE STABILITY

Proper care for stability of dump slope is required as proposed dumps are 90m

above ground level. Slope stability studies should be done beforehand & its

recommendation should be implemented. Also on dip side of quarry it is

proposed to conduct studies for stability of quarry slope. Again side batter runs

faults. These faults shall be knocked out at the floor of the coal seam to avoid any

bench slope failure due to fault. It is suggested that following action may be taken

to deal with slope stability problem :

i) Vulnerable area may be identified and marked on quarry plan.

ii) Observation of actual alignment of fault planes, its throw, joints, etc. may be

recorded during the process of excavation.

iii) Water drainage system may be properly implemented. Regular monitoring of

tension cracks, horizontal and vertical movement of strata in critical area may be

done.

iv) Mine encounters lot of faults, whenever mine workings approaches to fault plane

proper monitoring may be done. Efforts may be made to reduce load on fault plan

v) Water accumulation at dump top and toe is major cause of dump failure.

Adequate drainage shall be maintained at top and toe of dump.



15.5 HAUL ROAD MAINTENANCE

In this PR, haul road shall be constructed and maintained from time to time. It will

be maintained by hiring agency. Safe distance between the haul road and the toe

of the backfill shall be maintained.

15.6 PRECAUTIONS FROM BLASTING

Special precautions will be taken while performing blasting operations to avoid

danger from fly rock. Controlled blasting shall be practiced near built up area and

near embankment to avoid any damage to them.

15.7 SAFETY ASPECTS FOR OUTSOURCING / HIRING OF HEMM

Special precaution should be taken while employing contractual machine &

labours in the mine. Before employing contractual workers to the mine proper

vocational training should be imparted based on recommendations of various

Safety Conference. Terms and conditions for deployment of contractual labours

as well as machineries shall be fixed by management. Some of the major aspects

are as follows:

A) For persons :

i) Records in Form-B & Form-E shall be maintained.

ii) Records of VTC driving license of operators shall be kept by

Operators and readily available for inspection by management

iii) Salaries shall be distributed in front of management representative

iv) No person shall be employed unless person holds VTC certificate and

Management is informed.

v) Adequate supervision shall be maintained by competent person.

vi) All persons employed in mine shall obey lawful instructions of mine

supervisors and officials.



B) For Machineries :

i) All the machineries to be deployed in mines should be passed by the

management.

ii) RTO certificate photo copies of all vehicles shall be submitted to

management.

iii) Daily welding, monitoring, inspection shall be done by contractor's

mechanic as directed by management.

iv) Machine manufacturers should be asked to give risk analysis.

v) Records of daily maintenance breakdown repairs etc shall be

maintained by contractor and shall be available for inspection by mine

officials.

C) General : i) No person/vehicle shall be deployed at any place other than authorized

place.

ii) All employees of contractors should obey lawful instruction of mine

management.

iii) Risk Management Plan by contractor of tipper and excavators may be

made and implemented.

iv) VTC trained Manpower shall only be deployed in the mine.

v) Restricted traffic & traffic control planning shall be done and

implemented.

15.8 CONSERVATION OF COAL

Quarry limits are fixed in such a way to exploit maximum possible coal. Although

for calculation of mineable coal reserves 5% mining losses has been taken

into account, but in practice all efforts would be made to minimise the losses.

OB benches would be kept sufficiently advanced to avoid mixing of coal & OB.

Maximum possible backfilling is proposed in mine.



15.9 SCIENTIFIC STUDIES

Provision for scientific studies regarding Slope stability & Hydro-geological study

etc. have been made in this PR. It is suggested that before starting of backfilling

operation in Pauni-III OC, scientific studies have to be conducted for design of

backfill dump and to find out safe distance between working face and toe of

backfilled dump.

16.0 ENVIRONMENTAL MANAGEMENT

Pauni-II OC mine is an on-going project of WCL and Environment Clearances for

Pauni-II OC (Capacity 0.60 MTPA) vide letter no J-11015/71/2005-IA.II (M) dated

02/02/2006 is available. Environment Clearances for Pauni-III OC is not accorded

till date. However for enhanced capacity of Amalgamated Pauni-II & Pauni-III OC

mine (Target capacity of 3.25 Mty and Peak capacity of 4.06 Mty), Environment

Clearance will be required.

Although, the target capacity of the mine has been planned as 3.25 Mty, the mine

may achieve higher or lower than target capacity under following favourable or

unfavourable geo-mining, climatic and other conditions:

i) Availability of larger or smaller strike length and flatter or steep gradient of

seam. In the proposed mine the peak capacity of 4.06 Mty is likely to be

achieved during the period from 7th year to 8th year due to larger strike

length and flatter gradient.

ii) Less or more number of rainy days in particular years.

iii) Timely and efficient working by hiring/out-sourcing agency or vice versa..

iv) Encountering less or more geological disturbances than projected in the

geological report.

v) Upgradation of size and type of HEMM at the time of replacement due to

technological advancement.

Due to above conditions, it is possible that the production from mine may be

more or less than target capacity. In case of higher than target production, the



higher production is catered through cushion available in the system or by

increasing workload of out-sourcing agency as departmental capacity can not be

increased for short and irregular period of such higher than target capacity.

Hence, inclusion of peak capacity in calendar programme is not feasible. But, a

peak capacity of 25% more than target capacity (4.06 Mty) is very likely in some

years of mine life.

16.1 AIR QUALITY MANAGEMENT

Air pollution is likely to be generated due to dust, exhaust from vehicles, blasting

fumes etc. In opencast mines, dust is likely to be produced during blasting,

crushing of coal, handling of overburden and coal, drilling and operation of

HEMM. The following measures have been proposed to control air pollution :

i) Water spraying is to be carried out on haul road at regular interval during

each shift.

ii) Water spraying arrangement at dust generating points in CHP, feeder

breaker, conveyor transfer points etc.

iii) Proper maintenance of all internal combustion engines to reduce smoke and

exhaust fumes.

iv) Dust extractors in working condition in all the drills

v) Tree plantation in rows and blocks along the approach road of the mine and

also along the coal transportation road on both sides.

vi) Perimeter tipping of external overburden dumps. Tree plantation on the

slope of the perimeter dump.

vii) Water spraying mixed with safe and non-toxic dust suppression chemicals

on haul roads during dry months.

viii) Coal transportation in trucks covered with tarpaulin.

ix) Avoiding overloading of trucks.

x) Frequent cleaning of coal transportation road.



16.2 WATER QUALITY MANAGEMENT

The quantity of mine water pumped out would vary according to the season. The

mine water may contain various impurities like coal dust, traces of grease, oil etc.

in various proportions. The mine water would be allowed to collect in the quarry

sump where primary settling would take place. The mine water would then be

pumped into secondary settling tanks on the surface. Here the water would be

allowed to settle and thereafter part of treated water will be utilized for meeting in

-house water requirement (like dust suppression, watering of plants, washing of

HEMM, potable use etc). Peripheral trenching is recommended near external OB

dumps for coursing the run-off and leached water from the dumps. If required, the

water may be sent to surface settling tanks before discharging it into the drainage

channels.

The used water from the industrial area comprising CHP, Workshop, Garage etc.

may be contaminated with grease, oil, coal dust, dirt etc. This water will be

allowed to settle and suitable treatment will be carried out in oil and grease trap.

Thereafter the treated water will be mostly recycled.

16.3 GROUND WATER MANAGEMENT

Due to proposed project, it is anticipated that the effect on ground water regime

will be pronounced upto around 500 m from mine edge and effect will be

pronounced in the down-dip side and milder in the up-dip side. But this effect will

be temporary in nature and once the project is over, after 2 – 3 rains, the regime

will regain its almost original status. Any shortage of water in the affected villages

during the temporary period will be supplemented through supply of treated water

pumped out from the mine.

16.4 NOISE AND GROUND VIBRATION MANAGEMENT

Existing noise level at the mine site (wrt pre-mining level) is likely to increase and

following measures are being suggested to reduce noise and ground vibration

effects :



i) With judicious use of explosives and correct blasting techniques, ground

vibration and noise pollution would be reduced.

ii) Structures prone to vibration or those with moving parts are suggested to be

inspected periodically and source of vibration should be damped to minimize

noise and vibration.

iii) Proper maintenance of HEMM and exhaust silencers.

iv) Vegetation barrier around the service buildings will act as effective acoustic

barrier.

v) Ground vibration and fly rock can be controlled by proper use of delay

detonators. This will help to reduce the noise pollution.

16.5 FLORA AND FAUNA MANAGEMENT

No Changes in the diversity of species or number of any species of animal and

no reduction in the number of any unique, rare or endangered species of animals

are anticipated. Any deterioration to existing fish or wild life habitat due to mining

is ruled out. Similarly, no changes in the diversity of species or number of any

species of plants and also no reduction of the number of unique, rare or

endangered species of plants are anticipated.

Adequate plantation has been proposed with native species to maintain the

diversity and also to attract the fauna.

16.6 LAND RESOURCE MANAGEMENT

Regarding land use during mining, in addition to excavation of quarry for coal,

overburden dump will be created along with development of other mine related

infrastructures. Overburden dump is proposed to be technically and biologically

reclaimed and sufficient greenery will be developed.

16.7 ENVIRONMENT MANAGEMENT SYSTEM

To have a close watch on the environmental condition and implementation of

various measures suggested, a multi- disciplinary approach is essential. At

present WCL headquarter acts as apex body which supervises the activities

relating to environment at project level through the General Manager. General



Manager of the area coordinates the activities of various disciplines in the area to

render all necessary assistance at the implementing level i.e. the project. Area

Nodal Officer (Environment) monitors all aspects of environment on behalf of the

General Manager. He also takes suitable steps for generation of environment

data alongwith its analysis and interpretations. As far as plantation is concerned

horticulturist with suitable backup staff is provided in the area for undertaking the

plantation jobs including raising of a nursery. Sub-Area Manager is responsible

for mechanical reclamation of the area. He is also responsible for biological

reclamation with assistance of GM’s office.

16.8 CAPITAL PROVISION

A capital provision of Rs. 97.09 lakhs has been made against environment

protection and details are as provided in the Appendice G.

In addition to this, Rs. 6.00/t has been considered in the report for revenue

expenditure related to environmental activities in the mine.

17.0 LAND REQUIREMENT

The TSC of WCL Board held on 01.06.2015 in WCL(HQ), Nagpur directed to

revisit provision of land requirement for Pauni-III OC in consultation with

Ballarpur Area. Accordingly, Land provision for Pauni-III OC has been made in

the proposed PR. The total land requirement for Amalgamated Pauni-II & III OC

mine is 1152.66 ha out of which the land requirement for proposed Pauni-II OC

and Pauni-III OC is 327.41 ha and 825.25 ha respectively. Out of 327.41 ha land

for Pauni-II OC, 21.61 ha land is already acquired for Pauni OC which is to be

transferred to Pauni-II OC by boundary readjustment. For economic evaluation,

one time monetary compensation in lieu of employment (@ Rs. 5 lakh/Acre) for

50% of Tenancy land has been considered in this PR. However, it is envisaged

that WCL may offer jobs as per the New R&R policy of CIL to land losers who are

not willing to take monetary compensation in lieu of employment.



17.1 TYPE OF LAND

The type of land for proposed Pauni-II & pauni-III OC is as follows:

17.2 LAND USE PATTERN

The land required for the project for various activities is as follows:

Sl. No. Particulars Area (ha)

1. Quarry Area 295.35

2. External OB dump 308.90

3. Infrastructure 10.00

4. Area needed for rationalization 336.41

5. Area needed for blasting zone 200.00

6. Colony land (Hostel only) 2.00

Total Land 1152.66

Note: Out of 1152.66 ha land, provision of 21.61 ha land has been made in the

approved PR of Pauni OC.

18.0 MINE CLOSURE PLANNING

Mine closure planning has to be carried out at the starting of the mine and

needs periodic reviewing and revision during its life cycle to cope with the geo-

technical constraints, safety and economic risks, social & environmental

challenges. In the proposed Amalgamated Pauni – II & III OC mine, necessary

provision has been kept towards mine closure based on latest guidelines of

MOEF. The closure cost works out to Rs. 42.14/t.

Sl. No.

Particulars Land (ha)

Pauni-II OC Pauni-III OC Total Land

Existing (acquired for Pauni OC)

Proposed Proposed

1) Tenancy land

21.61 281.03 748.35 1050.99

2) Government land

0.00 24.77 64.83 89.60

3) Forest land 0.00 0.00 12.07 12.07

Total 21.61 305.80 825.25 1152.66



The mine closure cost will cover the closure activities for which a corpus fund will

be created by opening an escrow account with the coal controller organization in

nationalised bank. In case of occurrence of acid mine drainage, post closure acid

mine drainage management cost shall also be included in the total closure cost.

An amount @ Rs 6.00 lakhs per Ha of the project area will be deposited in this

account for final mine closure. Progressive mine closure will be done with the

fund provided in approved report.

The above rate has been taken from Circular No. 55011-01-2009-CPAM,

Government of India, Ministry of Coal, Dated 27 August, 2009 duly updated on

7th January, 2013.

Type of Mine : Open Cast.

Life (start of mining activity i.e., 1st year to

end of mine life i.e. 14th year) : 14 years

Total project area of the mine including 21.61 ha

land already acquired for Pauni OC : 1152.66 ha

Land for mine closure plan in this PR :1131.05

The financial provision for closure of Project Report for Amalgamated Pauni-II &

III OC mine for the entire mine life comes to around Rs. 129.0878 Crores (based

on March, 2015 WPI @ Rs 6 lakh/ Ha and 5% escalation each year. The break-

up of closure cost for Amalgamated Pauni-II & III OC mine is tabulated below.

1) Mining should be carried out in a phased manner initiating afforestation/

reclamation work in the mined out area of quarry and dumps done during

previous years.

2. Upto 80% of the total deposited amount including interest accrued in the

ECSROW account may be released after every 5 years. The amount

released should be equal to expenditure incurred on Progressive Mine

closure in past 5 years or 80% whichever is less.



3. The cost/expenditure of mine closure activities will be met from the corpus

fund deposited in the escrow account by the mine operator. However, the

additional amount beyond the escrow account will be provided by the mine

operator after estimating the final mine closure cost (as per the mine

closure guideline).

4. The amount indicated separately under each head in the following table is

indicative only and based on actual expenditure the amount may change.



BREAK-UP OF CLOSURE FUND FOR VARIOUS MINE CLOSURE ACTIVITIES

Sl. No.

Activity % of Total Mine closure

Cost

Amount (Rs.in Lakhs)

Remarks

A Dismantling of structures To be included in

final mine closure

plan. Service Building 0.2 25.82 Residential Building 2.67 344.66 Industrial Structures like, Workshop, Field

substation, etc. 0.3 38.73

B Permanent Fencing of mine void and other dangerous area

To be included in

final mine closure

plan. Random rubble masonry of height 1.2 meter including leveling up in cement concrete 1:6:12 in mud mortar

1.5 193.63

C Grading of highwall slopes To be included in

final mine closure

plan. Levelling and grading of highwall slopes 1.77 228.49

D OB Dump Reclamation

Handling/Dozing of OB Dump into mine void and preparation of Internal dump for reclamation.

88.66 11444.92 71% for progressive

and 17.66% for final

mine closure.

Technical and Bio-reclamation including plantation and post care.

0.4 51.64 Equal Weightage

throughout the life

of the mine.

E Landscaping

Landscaping of the open space in leasehold area for improving its aesthetic and eco value.


throughout the life

of the mine.

F Plantation

Plantation over cleared area obtained after dismantling.

0.5 64.54 To be included in

final mine closure

plan.

Plantation around the quarry area and in safety zone.


throughout the life

of the mine.

Plantation over the external OB Dump 0.02 2.582 Equal Weightage

throughout the life

of the mine.

G Post Closure Env Monitoring/Testing of Parameters for three years.

For three years after

mine closure

Air Quality 0.22 28.40 Water Quality 0.2 25.82

H Entrepreneurship development (vocational/ skill development) Training for sustainable income of affected people.


throughout the life

of the mine.

I Miscellaneous and other mitigative measures.

2 258.18 Equal Weightage

throughout the life

of the mine.

J Post Closure Man power cost for supervision

0.8 103.27 To be included in

final mine closure

plan.

TOTAL 100% 12908.78



ESTIMATE OF PROPOSED ESCROW FUND

The total area involved in proposed Pauni-II & III OC mine is 1152.66 Ha. Out of

this area, provision for mine closure plan of 21.61 ha land is already made in

Pauni OC. Hence, in this PR, provision for mine closure plan has been made for

1131.05 ha land only. So the corpus based on August, 2009 rate is 67.863 crores

@ Rs 6.0 Lakh /ha of project Area. The wholesale price Index in August, 2009 is

129.6 and the WPI for the month of March, 2015 available in the website of Office

of Economic Adviser, Ministry of Commerce, Government of India is

176.1(provisional). So the current value of corpus for 2015-16 is Rs.

67.863*176.1/129.6 crores which comes to Rs.92.2120 crores. This corpus is to

be divided by the life of mine which is 14 years in case of Amalgamated Pauni-II

& III OC mine (starting from the year when mining activity is started, i.e. 1st year

till the end of the mine i.e. 14th year). The mine is proposed to start production

from 2nd year (2016-17), however, the activities like consent of opening of mine

and Escrow account opening will have to be completed in 1st year (2015-16). So

dividing by 14 years, the annual corpus comes to Rs 6.5866 crores. The above

annual corpus amount calculated for 1st year will be deposited in escrow a/c in

1st year of mine i.e. 2015-16. Thereafter in each subsequent year, the annual

corpus amount will be deposited by escalation @ 5% per annum.

Annual Corpus Fund to be Deposited in Escrow Account

Project Year Financial Year Amounts (Rs. ‘000)

1 2015-16 65866

2 2016-17 69159

3 2017-18 72617

4 2018-19 76248

5 2019-20 80060

6 2020-21 84063

7 2021-22 88266

8 2022-23 92680

9 2023-24 97314

10 2024-25 102179

11 2025-26 107288

12 2026-27 112653

13 2027-28 118285

14 2028-29 124200

Total Corpus Fund 1290878

Closure Cost per tonne Rs. 42.14/t



19.0 MANPOWER & PRODUCTIVITY

The manpower requirement for proposed amalgamated Pauni-II & III OC is 242 in

total hiring option. The manpower requirement for proposed project has been

calculated on the basis of 3 shift operation for 330 days in a year. The

manpower requirement for this project has been detailed in Appendix-B

and B.1 of the project report. The OMS including Welfare manpower works out

to 50.87 t.

Manpower Requirement

Sl. No. Particulars Total Hiring Option

1. Executives 28

2. Non-executives:

i) Monthly rated staff 81

ii) Daily rated staff 133

3. Total 242

20.0 PROJECT IMPLEMENTATION SCHEDULE

The proposed OC mine is amalgamation of Pauni- II OC & Pauni-III OC mine.

Pauni-II OC is an-going project and land acquisition is under process. In this PR,

initial one year (2015-16) has been earmarked for land acquisition in Pauni-II OC

mine and coal production has been envisaged from 2nd year (2016-17) onwards.

Pauni-II OC mine will achieve target capacity of 0.75 Mty in 4th year.

In Pauni-III OC, land will be acquired in initial two years (2015-16 & 2016-17) and

coal production will start from 3rd year (2017-18) onwards. The mine will achieve

target capacity of 2.50 Mty in 6th year.

Thus, the amalgamated Pauni-II & III OC as a whole will start production in 2nd

year (2016-17) and will achieve target production of 3.25 Mty in 6th year. As this

is a Greenfield project, all the infrastructural facilities have been provided

independently in order to ensure its proper development.



The two main phases in project construction would be Pre - Sanction and Post -

Sanction phases. Some major activities under both heads are detailed in

following table.

PRE AND POST SANCTION ACTIVITIES BEFORE STARTING EXCAVATION

Pre Sanction Activities Post Sanction activities before

starting excavation

Detailed surveying of the area

Preparation of budgetary estimates

for construction of various

infrastructural facilities like ,

Workshop, VTC Building, Approach

Road etc.

Dialogue with State Government and

other appropriate authorities to

expedite various statutory clearances.

Posting of core management group.

Dialogue with MAHAGENCO to

finalise sources of power supply and

diversion of power line passing over

the Property.

Getting various statutory clearances.

Soil investigation for construction

work.

Procurement of HEMM and OPM

equipment. Creating facilities for

erection and commissioning of

equipment.

Preparation and submission of EMP Starting construction of permanent

approach road.


other appropriate authorities for

diversion of road

Starting construction of workshop, pit

office etc.


other appropriate authorities for

diversion of Nalas

Selection and training of manpower

for the project as per manpower

budget.

Proposal for various scientific studies.

Construction of Railway siding



21.0 PROJECT ECONOMICS

Proposed PR for Amalgamated Pauni-II & III OC has been prepared for Total

Hiring Option considering leasing/out sourcing of HEMM for excavation,

transport, drilling, dozing, Dumping etc. for Top OB, coal and Parting. Blasting,

surface illumination, pumping, CHP, supervision etc. would be done

departmentally. Mine target is 3.25 Mty and the weighted average GCV of coal

works out to 4817 kCal/kg (calculated).

21.1 EXISTING CAPITAL AND ADDITIONAL CAPITAL WITH PHASING

The total estimated capital investment for the proposed Amalgamated Pauni-II &

Pauni-III OCM, having an annual capacity of 3.25 Mty of coal and 22.25 Mm3/y of

Peak OB, works out Rs. 499.0042 crores (including existing assets as on

31/3/2015 worth Rs. 15.3094 crores). Additional capital requirement for proposed

Amalgamated Pauni-II & Pauni-III OCM works out to Rs 483.6948 crores. The

phasing of capital has been given in Appendix- A. The summarised form of

Appendix-A is given in Table below.

Initial Capital Investment (Total Hiring Option)

A/c

Head Particulars

Capital Provisions ( in Rs. Crores )

Total Capital

(Existing

+Additional)

Existing as

on

31.3.2015

Additional

Capital

01 Land 318.5859 0.0000 318.5859

02 Service & Residential

Buildings 3.6556 0.0000 3.6556

03 Plant & Machinery 84.6888 0.0000 84.6888

04 Furniture & Fittings 0.3000 0.0000 0.3000

05 Railway Siding 0.0000 0.0000 0.0000

06 Vehicles 0.2724 0.0000 0.2724

07 Prospecting & Boring 12.8946 12.5626 0.3320

08 Mine Development 74.0576 1.9665 72.0911

09 Revenue Expenditure

Capital. 4.5493 0.7803 3.7690

Total 499.0042 15.3094 483.6948



21.2 BASIS OF PRICE OF P&M & CIVIL WORKS

The pricing of P&M is based on the standard price list of August, 2014 (Updated

upto April’2015) circulated by the specialist cell of CMPDI, Ranchi. The cost of

civil works has been estimated on the basis of Cost Index of 560 at

Maharashtra as on 1st half of the year 2015 with a base of 100 in Delhi as on

1.1.1992. The other cost indices taken in costing are as under:-

Indices AICPI WPI Diesel Cost

for Hiring rate

Electricity

Cost

Value 5767.34 for the period

1.12.14 to 28.2.15 for

non Executives

176.1

(prov.

March’2015)

Rs. 53.46

/lit.

(April,2015)

Rs.

10.19/kWh

21.3 OPENING OF REVENUE ACCOUNT AND COMMERCIAL READINESS

The mine is proposed to be in revenue from 2nd year. The mine would be

commercially ready in 2nd year.

Commercial Readiness A project will be treated to have reached the stage of commercial readiness to

yield production on a sustainable basis, from the year when all the following

criteria have been achieved :

i) 30% of the total volume of excavation (coal and OB) envisaged in the

target year

ii) The land required for the project upto target year has been acquired.

Within the above mentioned construction period, the project is in commercial

readiness, as it would be able to yield production on sustainable basis and most

of the infrastructure facilities like Road, CHP, Workshop, Service Building, Power

Supply, Water Supply and Development activities for mine operation, would be

completed and accordingly, capital provision has been made. In this Proposed



Project, the mine will have cash surplus in the 2nd year of operation (including

one year for land acquisition).

21.4 REPLACEMENT CAPITAL Yearwise replacement capital is indicated in cash flow statement (App.-D)

21.5 SOURCES OF FINANCE: INTERNAL RESOURCES OR LOAN The source of finance will be through internal resources.

21.6 COMPLETION COST

The completion cost for the project works out to Rs. 573.3813 crores. (excluding

existing assets of Rs. 15.3094 crores.)

21.7 COST OF PRODUCTION AT DIFFERENT LEVEL OF PRODUCTION:

A) SALARIES & WAGES COST

The detail of category-wise /scale-wise manpower requirement and year-wise

estimated wages cost is given in appendix-B.1. The estimated salaries & wages

cost works out to Rs. 70.31/t at 100% target capacity.

B) STORES COST

Stores cost has been estimated taking into account provision for repair &

maintenance, POL, explosive, and miscellaneous stores cost. The estimated

stores cost has been worked out to Rs. 89.26/t at 100% target capacity.

C) POWER COST

The average power cost per tonne of coal production works out to Rs. 55.88/t at

100% capacity.

D) MISC. EXPENDITURE

This cost has been estimated to cover expenditure on printing & stationary,

postage, telephone, repair & maintenance of assets other than P&M, workshop

debit, ins. & taxes for vehicles and other repairs and a further provision has been



made for deterioration of coal stock. The miscellaneous cost per tonne of coal

production works out to Rs. 55.48 at 100% level of operation.

E) ADMINISTRATIVE CHARGES

As per decision taken in 310th meeting of CIL Board, administrative charges shall

be taken as 10% of Administrative overhead as communicated by WCL for

financial year 2014-15. Accordingly the administrative cost works out to Rs.

16.85/t at 100% capacity. However, the above decision of CIL Board is subject to

vetting by Institute of Cost Accountants of India.

F) HIRING / OUTSOURCING COST

The average outsourcing cost per tonne of coal production works out to Rs.

376.80 at 100% level of operation.

G) INTEREST ON WORKING CAPITAL

Interest on working capital (@ 14.50%) works out to Rs. 34.45/t at 100%

capacity.

H) DEPRECIATION

Straight line method of depreciation has been considered to arrive at depreciation

cost per tonne of coal production. The depreciation cost works out to Rs. 113.56

per tonne at 100 % capacity.

I) INTEREST ON LOAN CAPITAL

Interest @ 11.50% on loan capital has been computed based on given debt

equity mix. Interest on loan capital works out to Rs. 50.00 /t.

J) ENVIRONMENT RELATED COST

Rs. 6.00/t of coal has been provided for environmental related cost in the project

at 100% capacity utilization.



K) MINE CLOSURE COST

Rs. 42.14 /t have been provided in the project against mine closure cost at 100%

target production.

L) COST OF PRODUCTION

Total cost of production works out to be Rs. 910.73/t and Rs. 975.53/t at 100%

and at 85% of target capacity respectively.

21.8 GRADE OF COAL & WEIGHTED AVERAGE SELLING PRICE

The weighted average GCV of coal works out to 4817 kCal/kg (Grade G-9)

(calculated). The selling price of coal of G-9 Grade is Rs.1190.50/t. for Power

Fertilizer and Defense sector, whereas for Other than Power, Fertilizer and

Defence Sector the selling price is Rs. 1570.50/t.

- TRANSPORTATION / LOADING / SIZING CHARGES

Rs. 79.00/t. has been considered for sizing charges for coal upto (-) 100 mm size.

- DESPATCH OF COAL & POINT OF SALE.

Coal from the face would be dispatched to coal stock yard. From stock to CHP it

will be transported by tippers. Capital provision for railway siding has not been

made in this PR. Railway siding/Silo will be constructed through separate

scheme.

21.9 PROFITABILITY (PROFIT/LOSS)

The profit with average sale value of coal as Rs. 1190.50/t for power fertilizer

and defense sector works out to be Rs. 279.77/t and Rs. 214.97/t at 100%

and 85% target capacity respectively.

The Profit with average sale value of coal as Rs. 1570.50/t for other than

power, fertilizer and defence sector works out to Rs. 659.77/t and Rs. 594.97/t

at 100% and 85% capacity respectively.



21.10 MANPOWER & OMS

The total requirement of manpower works out to 242 giving OMS of 50.87 t. This

includes provision for leave/ sickness. Details of manpower requirement and

manpower analysis are given in Appendix-B and B.1of this report.

21.11 EMS

The overall EMS works out to Rs. 3288.21 based on CMPDI norms. The salary

& wages works out to Rs. 70.31/t.

21.12 FINANCIAL IRR

The IRR of the project at 100% and 85% capacity works out to 17.71% &

12.67% for power sector.

The IRR of the project at 100% and 85% capacity works out to 34.40% &

28.13% for Non-Power sector.

21.13 DESIRED SELLING PRICE:

The desired selling price to yield 12% IRR at 100% and 85% of target production

works out to Rs.1182.05/t and Rs.1087.40/t respectively. Appendix-C shows the

estimates of cost of production at various production levels.

21.14 SENSITIVITY ANALYSIS

Risk analysis and its impact on IRR, NPV (@ 12%) and Desired selling price at

discounting rate of 12% have been studied due to change in different parameters

such as Land capital cost, Mine development capital cost, Salary and wages

cost, Store cost, Power cost, Operating cost, sales realization and capacity

utilization etc. The risk analysis for power Sector is given in table below:



RISK ANALYSIS FOR POWER SECTOR

PARAMETERS

0% 5% 10% 15% 20% 25% 50% 100%

INCREASE IN LAND

IRR 17.71% 17.03% 16.37% 15.74% 15.15% 14.57% 12.04% 8.14%

NPV 130.4111 117.4852 104.5594 91.6336 78.7078 65.7820 1.1530 -128.1051

Sale Price for 12% IRR

(Rs,.t) 1082.54 1093.24 1103.94 1114.64 1125.34 1136.04 1189.55 1296.55

INCREASE IN MINE

DEVELOP-MENT EXP

( A.8.1)

IRR 17.71% 17.62% 17.52% 17.43% 17.33% 17.24% 16.77% 15.87%

NPV 130.4111 128.5242 126.6374 124.7505 122.8637 120.9769 111.5427 92.6743


(Rs,.t) 1082.54 1084.10 1085.66 1087.22 1088.79 1090.35 1098.16 1113.78



PARAMETERS 0% 5% 10% 15% 20% 25% 50% 100%

INCREASE IN CAPITAL

IRR 17.71% 16.74% 15.83% 14.97% 14.16% 13.40% 10.12% 5.38%

NPV 130.4111 111.7282 93.0454 74.3625 55.6797 36.9969 -56.4173 -243.2457


(Rs,.t) 1082.54 1098 1113.47 1128.94 1144.40 1159.87 1237.21 1391.87

INCREASE IN WAGES/

SALARIES

IRR 17.71% 17.51% 17.31% 17.11% 16.91% 16.71% 15.70% 13.66%

NPV 130.4111 125.7598 121.1085 116.4572 111.8059 107.1546 83.8982 37.3853


(Rs,.t) 1082.54 1086.39 1090.24 1094.09 1097.94 1101.79 1121.04 1159.55

INCREASE IN STORE COST

IRR 17.71% 17.47% 17.23% 16.99% 16.75% 16.51% 15.28% 12.77%

NPV 130.4111 124.7420 119.0730 113.4039 107.7349 102.0658 73.7206 17.0301


(Rs,.t) 1082.54 1087.23 1091.92 1096.62 1101.31 1106.00 1129.47 1176.40

INCREASE IN POWER COST

IRR 17.71% 17.56% 17.41% 17.25% 17.10% 16.95% 16.17% 14.61%

NPV 130.4111 126.8274 123.2438 119.6602 116.0766 112.4930 94.5750 58.7390


(Rs,.t) 1082.54 1085.50 1088.47 1091.44 1094.40 1097.37 1112.20 1141.87

INCREASE IN OPERATING

COST

IRR 17.71% 15.72% 13.67% 11.55% 9.36% 7.06% -6.97% -57.61%

NPV 130.4111 83.7126 37.0142 -9.6843 -56.3827 -103.0812 -336.5734 -803.5578


(Rs,.t) 1082.54 1121.20 1159.86 1198.52 1237.18 1275.84 1469.14 1855.74

INCREASE IN SALES

REALISATION

IRR 17.71% 20.61% 23.38% 26.03% 28.59% 31.08% 42.63% 63.32%

NPV 130.4111 202.3129 274.2147 346.1165 418.0184 489.9202 849.4294 1568.4477


(Rs,.t) 1082.54 1023.01 963.49 903.96 844.44 784.91 487.29 -107.96

DECREASE IN CAPACITY

UTILISATION

IRR 17.71% 16.09% 14.41% 12.67% 10.86% 8.97% -2.46%

NPV 130.4111 91.7919 53.1728 14.5537 -24.0655 -62.6846 -255.7803


(Rs,.t) 1082.54 1115.63 1146.99 1182.05 1158.12 1198.60 1623.73

DECREASE IN SALES

REALISATION `

IRR 17.71% 14.65% 11.37% 7.82% 3.88% -0.60% -49.05%

NPV 130.4111 58.5092 -13.3926 -85.2944 -157.1963 -229.0981 -588.6073


(Rs,.t) 1082.54 1142.06 1201.59 1261.11 1320.64 1380.16 1677.79



21.15 CONCLUSION

This PR of Amalgamated Pauni II & III OC mine has been prepared for a target

capacity of 3.25 Mt for Total Hiring option. The entire workload of OB and coal

extraction would be catered by hiring of HEMM. Total Cost of Production is Rs.

975.53/t at 85% of target capacity. Average Sale Price of coal (Grade G-9) is

Rs.1190.50/t for Power Sector and Rs. 1570.50/t for Non Power Sector. IRR

works out to 12.67% for power sector at 85% of target capacity and 28.13%

for non- power sector at 85% of target capacity in Total hiring option. The Desired

Selling Price to yield 12% IRR at 85% of target capacity is Rs. 1182.05/t.

The Project Report in Total Hiring option is yielding 12.67% IRR (> 12.00%) at

85% of target capacity for power sector, hence this option with total capital of Rs

499.0042 crores (including existing capital of Rs 15.3094 crores) may be

considered for approval by competent authority as this mine is economically

viable for approval on notified price.

The other related mining and financial parameters are as tabulated below:-

Sl. No.

Particulars

Approved PR of

Pauni-II OC (July,2003) (Total hiring

option)

Approved PR of Pauni-III OC (Feb., 2010)

(Departmental Option)

PR of Amalgamated Pauni-II & III OC

(Modified June, 2015)

Pauni-II OC

Pauni-III OC Total

A Mining Parameters 01 Mineable Reserves (Mt) 4.91 24.11 5.18 25.45 30.63

02 Grade/GCV of coal (kcal/kg) G9/4775 G9/4830 G9/4775 G9/4830 (G-9)/4817

03 OB Volume (Mm3) 31.90 157.57 31.90 157.57 189.47 04 Average S/R 6.49 6.54 6.16 6.19 6.19 05 Mine Capacity (Mty) 0.60 1.25 0.75 2.50 3.25

06 Manpower 110 755 242 07 Overall OMS (t) 20.66 6.27 50.87 B Financial Parameters 01 Total Capital (Rs. In Crores) 499.0042

02 Additional Capital (Rs. In Crores)

28.1120 360.7987 483.6948

03 Existing Capital (as on 31.3.2015) (Rs. In Crores)

0 0 15.3094

04 Cost of Production (Rs./t)

i at 100% of target capacity 632.72 1376.32 910.73

ii at 85% of target capacity 662.92 1564.85 975.53



Sl. No.

Particulars

Approved PR of

Pauni-II OC (July,2003) (Total hiring

option)

Approved PR of Pauni-III OC (Feb., 2010)

(Departmental Option)

PR of Amalgamated Pauni-II & III OC

(Modified June, 2015)

Power Non power

05 Av. Selling Price (Notified) (Rs./t)

725.85 1074.50 1190.50 1570.50

06 Profit (Rs./t)

i @ 100% of target capacity (Rs./t)

93.13 (-) 301.82 279.77 659.77

ii @ 85% of target capacity (Rs./t)

62.93 (-) 490.35 214.97 594.97

07 Financial IRR @ 85% capacity (%)

20.60 NEGATIVE 12.67 28.13

08 Price to yield 12 % IRR @ 85% capacity (Rs./t)

691.39 1801.65 1182.05 1182.05

09

Difference between Avg. Selling Price (Notified) & price to yield 12 % IRR @ 85% capacity (Rs./t)

(+) 34.46 (-) 727.15 (+) 8.45 (+) 388.45

************

Date post:	08-Apr-2018
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