CHAPTER III

MINING ENVIRONMENT, MINING POLICIES AND

ENVIRONMENTAL IMPACT ASSESSMENTS (EIA): A

CRITICAL APPRAISAL

Introduction

"Mines are the source of treasury, from treasury comes the power of

Government ". The words are from Kautliya's Arthashastra, a 4th century

treatise written by Chanakya, conveys the critical role that mining industry has

played in the growth of civilization.

A high quality environment should be an important policy objective for every

society. Mining activities by its nature has certain associated environmental

problems and most of the dent to environment is being caused by past mining

operations and leaves the responsibility for rectification of the problem and the

provision of required funds to the government. Mining can now be undertaken

with only minimal effect on the environment with proper attention to mining

methods and control procedures.

Beginning of Coal Mining in Jharkhand

Industrialization began in the Chotanagpur Plateau area with first coal mining

industry in Raniganj in the year 1775. In 1843 the first joint stock company, MIS

Bengal Coal Company was formed. A series of collieries were established on the

left bank of the Damodar River. In 1856, the coalmining at Jharia, Bokaro and

Karanpura coalfields began. Coal mining in Dhanbad area started during the

second half of the 191h century. The establishment of the Tata Iron and Steel

Company in Jamshedpur in Singhbhum district in 1907 marked the beginning of

the large-scale exploitation of mineral and other industrial resources of

Jharkhand.

48

Indian .Coal Mining Scenario:

India is the third largest coal producer in the world and has substantial coal

reserves (204 billion tonnes, plus 63 billion tonnes of prognosticated reserves).

Opencast mining accounts for 74% of the total coal output and the remaining

26% is met by underground mining. The share of the underground output in the

total production is expected to be maintained at the current level, though coal

production is expected to increase by 2010.The average depth of the

underground mines is 150-200 meters with a seam thickness of 2-3 meters and

60 meters for open cast mines with average seam thickness of 3-4 meters.

On an average, 75% Indian coal types are not highly gaseous. However, the

underground coking coal reserves of the eastern coal belt are highly gaseous and

go up to gaseousness of degree three. Almost 45% of the underground coal

output is met from the two coal fields in the sample sites selected, belonging to

the eastern region of the country. The coal seams of the region primarily possess

superior grade coal: prime and medium coking, and some semi and weekly

coking coal.

Coal mining activity in this region has been and will continue to be a major

industry, maintaining a dominant share in the coal sector of the country given the

demand for superior grade coal in the region with high concentration of

industrial units (steel plants, chemical, ceramic, and glass industry, all of which

demand high temperature long flame coal found in the region), .and high

population density. As such, use of coal has been a major contributor of methane

to the atmosphere. If suitably harnessed, coal bed methane associated with coal

reserves could be a significant potential source of energy both in the region and

for the country.

Coal mining and. employment

Coal production in India is largely in the state sector except for the captive mines

of Tata Steel. Coal India Limited (CIL) is the largest public sector undertaking,

accounting for nearly 88% of the national coal production. Nearly 68% of the

49

total coal production in India is consumed by the thermal power plants and rest

is distributed to other industries with a major share going in the steel sector.

The table 3.1 below shows, that the employment in coal sector in Jharkhand is

91.06% of the total employment provided in the mining sector. This shows the

impmiance of the ·coal sector, as far as, size of the workforce employed is

concemed. In the present study, the sample population has been selected from

this workforce. to assess the problems related to health in the mining sector.

Table 3.1

Jharkhand: Employment in mines - 2002

Mining Sector No's Employed No's Employed (in «}'(,)

Coal 135659 91.06

Copper 1285 0.86

Iron Ore 4694 3.15

Limestone 1062 0.71

Magnesite 57 0.04

Manganese 54 0.04

Mica 153 0.10

Stone* 2794 1.88

Other Mines 3226 2.17

Total 148984 100

Source: Directorate General of Mines Safety, Ministry of Labour Statistical Abstract, India, 2003,

pp299-300

*From 1995 onwards the original figures of stone exclude granite

50

.

The following table 3.2 (a) shows the employment share of all the minerals at

India level and coal sector is seen to be consistently a major employer since

1991-1992. The share of employment provided by coal sector has marginally

increased in the years from 1991 to 2002 (except 1995 which has recorded a

very minor decline ofless than 1 %).

Table 3.2 (a)

India: Employment in mines (in °/o)

(1991 - 2002)

Year coal copper chromite diamond gold

1991 70.15 1.63 1.34 0.05 1.18

1995 69.73 1.42 1.28 0.05 0.96

1996 70.71 1.39 1.37 0.05 0.96

1997 71.45 1.46 1.30 0.05 0.97

1998 71.65 1.27 1.31 0.06 0.89

1999 72.20 1.17 1.22 0.06 0.89

2000 71.76 1.08 1.08 0.06 0.84

2001 73.12 0.67 1.09 0.04 0.60

2002 72.63 0.57 1.19 0.04 0.57

Source: Directorate General ofMines Safety, Ministry of Labour; Statistical Abstract, India, 2003,

pp299-300

*From 1995 onwards the original figures of stone exclude granite

51

gypsum

0.08

0.09

0.06

0.08

0.08

0.08

0.08

·--

0.09

0.07

Table 3.2 (b)

India: Employment in mines (in o/o)

(1991 - 2002)

Year iron ore limestone magnetite manganese mica stone*

1991 5.07 5.51 0.83 2.26 0.28 1.42

1995 5.39 5.41 0.55 2.46 0.24 1.02

1996 5.21 4.99 0.50 2.53 0.17 0.72

1997 5.48 4.68 0.49 2.28 0.17 0.70

1998 5.44 4.56 0.45 2.31 0.16 0.77

1999 5.49 4.52 0.41 2.50 0.15 0.78

2000 5.53 4.87 0.49 2.53 0.15 1.00

2001 5.39 4.05 0.48 2.28 0.10 1.05

2002 5.78 4.33 0.39 2.36 0.11 1.34

Source: Directorate General of Mines Safety, Ministry of Labour; Statistical Abstract, India, 2003,

pp299-300

*From 1995 onwards the original figures of stone exclude granite

other

mines

10.20

11.40

11.07

10.89

--

11.05

---

10.53

10.54

·--

11.05

10.62

·--

The table 3.2 (b) shows the employment percentages m rest of all other

minerals. Therefore, it is clear that, in India, coal dominates as far as

employment in the mining sector is concerned [as shown in table-3.2(a)].

The data for the above tables (3.1 &3.2) cover all persons employed in mines as

defined in Section 2(h) of the mines Act, 1952 whether employed permanently

or on temporary basis, direct or through contractors and include clerical and

supervisory staff also. Senior Supervisory Officials like agents, Managers, Under

52

Managers, Engineers, and Doctors are excluded m calculating figures for

average daily employment.

According to the mines act, 1952 "Average daily employment of a mine is the

ratio of total number of man-shift worked to the total number of working days

during the year. Average daily .employment of a district/state or owner is sum

total of the daily employment of all the mines belonging to that district/state or

owner."(SOtvHI, 2 001)49

Though coal is a major employer but technology has not been revived in many

cases and therefore, Indian coal industry, in spite of having vast reserves, lags

behind in the global competition at production level. Coal washeries are

inefficient, and not upgraded to the latest technology level.

"Indian coal industry is facing one of the challenges due to the use of obsolete

technology and poor health of washeries, the coal industry is unable to

beneficiate the coal even to 17% ash level, as required by the steel plants".

(Chattedee,2002)~

Machinery used in opencast mining

In opencast mining, deploying heavy coaling, loading and transporting,

machines are responsible for mass production of coal.

The machines used are:

1) Heavy Earth Moving Machine (HEMM)

2) Heavy Drilling Machines and Blasting Cycle

3) Shovel-rope, Shovel/hydraulic excavator

4) Transport system: conveyors, dumpers

5) Inpit crushing conveying system

49Statistics Of Mines In India (2001), GOI, Ministry of Labour, Directorate General Of Mines Safety; Vol.I (Coal); (lntroduction,pp-iii) 5°Chatterjee. A (2002) Coals for the Indian Steel Industry - The Future; Journals of Mines Metals and Fuels; 2002 (Dr. Arnit Chatterjee, Chief Technology Officer, Tata Steel Jamshedpur) ·

53

The abO\·e machines are manufactured and supplied by various companies such

as CAT (Caterpillar), HEML etc In most of the Indian opencast coalmines after

the removal of overburden the coal seams are broken by blasting techniques and

then heavy machinery is used for various purposes.

Coal is extracted from various depths upto the level, it is economically feasible.

When coal seams are found to be at greater depths and coal and overburden ratio

is economically not viable, then underground mining is preferred. Of course, in

that too, other economic and geographic considerations play a role and are not

overlooked.

"Opencast mining, in India, at present is done maximum up to a depth of 160

meters. Few mines have been planned for working even for depths upto 290

meters. Shovel and dumper combination is the most prevalent system of coal

extraction and overburden removal. Draglines have been deployed wherever the

conditions are conducive. So far as equipment size is concerned, draglines upto

30 cubic meter, 170 tonne rear dumpers, 770 hp dozers and 311 mm diameter

blast hole drills are used in Indian mines."(Sinha, 2002)51

Coal Production trends: Opencast mines versus Underground mines

In the table 3.3 below the coal production trends from 1973-74 to 2001-02 are

given. It is clear that coal production trend in the underground mining has

decreased over the years, whereas, the opencast share in coal production has

increased manifold.

51 Sinha, M.K (2002) Technology for tomorrow- the challenge for the Indian coal Industry; Journal of mines, metals & fuels, 2002;pp.251-256

54

Table 3.3

Coal production trends in CIL (in million tonnes)

·--

Production Year (Mt) ·--

1973-74 1981-82 1991-92 2001-02

Underground 53.6 63.3 56.6 49.2

Open cast 16.4 45.7 147.5 230.4

Total 70 109 204.1 279.6 ·--

%Share of 23.4 41.9 72.3 82.4 Open cast

·--

Source: Coal Directory 2003, Coal India Limited

Percentage share of the opencast mines of coal India limited has reached to

82.4% in 2001-02. The reason may be that since vast coal reserves are available

now there is plenty of option for depleting the near surface reserves first and

moreover, underground coal mining is becoming less and less feasible as per the

cost-benefit ratio. "The Indian underground coal sector, though the fifth largest

underground producer in the world with 80 million tones per year, still has a low

level of mechanization and massive scope for improvements. The cost of coal

from underground mines in India at US$ 30.09/ tonne and same for opencast is

$ 9.39/ tonne. The cost in US $ per billion calories from underground and

opencast mines in India works out to 5.47 and 2.18 respectively, against global

mining cost of 2.42 to 3.54". (Sinha, 2002)52

"In India the share of underground coal production has declined from 72% to 21% of

the total production from 1973-74 to 1998-99. In India, good - quality coking is

found at depths and can be mined by underground methods. The decline has resulted

in the import of coking coal to meet the demands of the Indian industry. The coal

52 ibid

55

Industry has been nationalized but because it is not able to meet the expected results,

this sector has been lagging behind."(Singh, 2000)53•

The paper has discussed that due to changes in the economic policies concerning the

coal industry~ cost of underground coal production cannot compete with opencast­

mined coal . The underground mined coals are superior in quality with lesser

contamination of stones, yet is high due to low productivity and higher power,

transpm1, ventilation, strata control, and pumping cost. Therefore, in the free market

economy, due to economic considerations, coal companies have opted to increase

coal production by cheaper methods, or by opencast instead of, underground mining.

In the table 3.4 below, the figure of some of the major heavy machineries being

used in Coal India Limited is given. It shows that Rear Dumpers are the chief

heavy machines for transportation of coal from the site of extraction to the

dumping site.

Table 3.4

Major Heavy Machineries used in CIL (as on 1.4.2002)54

··-

Draglines 41

Rope Shovels 364 ---

Hydraulic Shovels 439 ---

Rear Dumpers 3502 ---

Drills 963 ---

Dozers 1072 ··-

Front end Loader 198

. 53 Singh A.K (2000) A retrospective of underground coal mining in India; Minetech 21(2); pp 53-59 (Review in TIDE (TERI Information Digest On Energy); Volll, No. 1 March 2001) 54 Coal Directory (2003); Coal India Limited

56

Underground and open cut mining processes

Underground mining in NSW is generally based on the bord and pillar method

or the long wall mining method. These methods involve the following

procedures:

Bord and pillar: underground lanes ('bords ') are cut into the coal seam with

pillars of coal being left to support the roof. Extracting coal while leaving the

pillars is known as 'first workings' and will result in minimal surface

subsidence. Removing pillars is termed 'second workings' and will result in the

collapse of the roof and surface subsidence.

Long wall mining: coal is extracted in a series of panels, that may be up to 200

metres wide and two kilometers long. As no coal is left to support the roof at the

mining face, hydraulic roof supports must be used to hold it up and the roof is

allowed to fall once the coal has been extracted. This method of coal mining

causes surface subsidence. In underground mining, coal is transported from the

underground mining face by conveyor to the mine coal handling plant. Water,

which is often polluted, may be disposed of from underground mine workings

with adverse environmental impacts.

'Bord and pillar system' is the most common and contribution from mechanized

'Long wall' or method of gallery blasting has also been adopted in India. While

intemationally long wall system is the safest, most productive and cost-effective

method of mining underground seams and is common throughout in USA,

Australia, South Africa, Poland, Russia, China and Westem Europe. Long wall

system is capital intensive and requires low intensity of geological faults, which

would allow large enough iong wall panels to be developed.

Coal Mine safety and Environment

Throughout the history of civilization, the surrounding environment had undergone

change, but the last century has seen excessive interference by man into the domain

of nature.

57

In the coalfields of Jharkhand, coal mining has been threatening the environment and

in many cases, there has been over-exploitation in an unscientific manner, without

caring for the environmental consequences. Due to coal mining and associated

industries, the components of the environment in the mine area e.g. land water and

forest resources are constantly undergoing a process of change.

At the time of nationalization, there were more than 900 coalmines, most of

which were small units developed by the private sector in a profligate manner.

The shallow coal deposits were exploited irrationally for easy and quick gains,

without consideration of long-term requirements and consen'ation.

Coal mining deals with handling and transport of a section of the earth's crust, which

incidentally has useful heat value, and is therefore a source of energy. The handling

and transportation requires active mechanical and human power.

Coal mining is by nature destructive to the surrounding environment and for the

people who work in the coalmines is also exposed to a set of hazards and risk to

their health. Though technological advances and proper health facilities, if used

as preventive measures for the mineworkers, can make it possible to reduce the

risk of health hazards.

Hazards and Risks Hazards are not equal. A hazardous condition does

necessarily imply an unacceptable risk. Lay people and safety professionals may

judge risk differently. To deal with hazardous situation:

• Hazardous situations can be identified and ranked

• Priorities can be established

• Resources can be allocated efficiently

• The greatest hazards can be controlled first

Risk

• Risk can be probability of event and the potential loss e.g. Probability of death,

injury, etc

• If we say "Safe" means, the risk is acceptable.

58

Risk Perception

Risk perception does not equal risk assessment and risk perception among

laymen may differs from experts.

"The issue of reduction of accidents I injuries needs to be addressed through

reactive measures of hazard control. There is need to focus upon apart from the

fatal and serious accidents but also the minor and near miss/near hit incidences

which are potential safety problems in the mine."(Bhattacharjee 2000f5

The issues of safety of coalmines should be judged by examining the past,

present, and future scenarios of accident and injury prevention. The emphasis

should be on various emerging areas such as human factors, human behavior,

injury, epidemiology, injury surveillance system, and computer based training

for safe operation as well as safety of the environment, using information

technology. '

The coal mining requires funding m the field of safety research; vanous

organizations including the DGMS (Directorate - General of Mines Safety),

CMRI (Central Mining Research Institute), academic institutions, and other

research organization should work together to achieve the ultimate goal of

further improving safety and protection and harmony with environment.

Though in the existing system and funding, how much Coal India Limited has

done is a matter of study and analysis. Many a times, budgetary funds or fund

allocations for safety related measures and concerns remain underused or are not

utilized in an efficient manner and also there has been no proper check on illegal

mining or theft of coal in the mine areas.

According to Coal India Limited, "Though mining is one of the most hazardous

peacetime operation and all efforts are being taken to reduce hazards to the

55 Bhattacharjee A.(2000)Coal Mine safety: Where do we go from here; Journal of mine and fuels;48(8);pp.215-22l(Department ofMining Engineering Indian Institute of Technology, Kharagpur)

59

minimum. Various steps for mine safety have been adopted, and a well-defined

safety policy is being implemented" (CIL Official Website, 2005)56

In retrospect, the Parliamentary-standing committee on Energy has criticized

Coal India in the past for failure to utilize budgetary funds for safety-related

measures and check illegal mining activities. Against the budgetary provision of

Rs 353.4 crore during 2000-0lfor safety norms, the expenditure was only Rs

292.2 crore (TIMEJ, 2002)57

The illegal mining activities were rampant, the committee said, "The committee

do not approve of such sordid action on the part of the Department of coal,

especially in the matters of safety", the parliamentary panel under the

chairmanship of Santosh Mohan Dev, said. (TIMEJ, 2002)58

The CIL attributes the failure to the inability to seek approval from the

Directorate General of Mines Safety (DGMS), owing to non-confonnance with

Bureau of Indian Standards (BIS). It asked the government to take proactive

steps, to expand the budgetary allocation and strengthen safety apparatus in

coalmines. Expressing displeasure over the increasing incidence of illegal

mining, it noted that despite mining lease being vesting with CIL, the land was

being encroached upon.

A number of times illegal mmmg activities have led to accidents of great

magnitude and it were difficult to fix responsibility. The committee had given

guidelines to curb such illegal activities and also a close supervision of

closed/abandoned mine was not undertaken.

CIL should constitute a committee to examine the re-errgmeenng of the

suspended/closed mines.

CIL will have to counter the negative discernment for coal mining and invest on

measures for mitigation of environmental impact of mining. Requirement is for

56 CIL Website (2005): http://www.coalindia.nic.in; (as on January 27,2005) . 57 Coal News (2002) The Indian Mining and Engineering Journal; Special issue on mineral Beneficiation; may; pp.34 58 ibid

60

sustainability and, concrete steps for the ready environmental challenge

including social impacts through a carefully crafted environmental planning for a

longer duration (say a decade in advance).

Stages of a mine project

When an area is found suitable for mining through areal, satellite, and geological

surveys, then exploration begins with sampling, mapping and surveying. After

the collection of basic data, the'planning of the project can start.

The planning stage includes choice of mining method and processing of the ore,

design and engineering of the chosen site. When the approval is sought and is

sanctioned and required permits are obtained, then construction and thereafter­

operational stages take over. Construction may include constructing shafts,

tunnels or removal of the overlaying rocks.

The Mine Project life can be precisely divided into the following stages:

In the operational stage the mineral is extracted and processed .In the last stage,

the closure of the mine involves filling up of voids, and reclamation of the used

area and prepare it for future use.

The different stages of a mine project have been conceptualized via a flowchart,

which is shown below. It attempts to show different stages from

Exploration stage till mine closure.

61

Stages of a mine project

EXPLORATION STAGE

0 PROJECT PLANNING STAGE

D ACQUISITION OF THE MINE SITE

AND CONSTRUCTION STAGE

D OPERATION AND PRODUCTION

STAGE

D MINE CLOSURE

Backdrop of coal mining in India

PROJECT APPROVAL

The nationalization of coal mines in the seventies ushered in the era of hope, for

organized and sustainable growth of the coal mining industry. In these formative

years, almost the entire coal sector came under the authority of Coal India

limited.

The onus to discover mineral deposits in the country is borne by the Geological

Survey of India (GSI) and Directorate of mine and geology of state

governments. Indian Bureau of Mines (IBM) and mineral exploration

Corporation limited (MECL) have also contributed on this subject.

With the initiation of second and fifth plan, special impetus was laid on the

development of coal resources. Since 2nd five-year plan, GSI is engageq in

exploratory drilling. Systematic detailed exploration of coal was taken up by

IBM and National Coal Development Corporation (NCDC) IN 2ND and 3rd plan

periods. On 1st April 1964, IBM was taken over by NCDC and by the end of 3 nJ ·

62

PROCEDURE FOR FORESTRY CLEARANCE

Submission of forestry

-loFol ·EJ application ~ Nodal Officer

PCCF. Nodal Officer,

1-EJ~ -I Stage - I approval CF, DFO

Project 1--- ---+"' DFO, CF, Nodal Officer, PCCF, Secy. Of Forest

Mutation of land I 0111

1------.·1 MOEF

L___P_ro_j_ec_t _ __.l ...

Fig. 3.1

I PCCF I Secy. __. ~ (Forest)

,,

I MOEF I~ MOEF Reg. Office

~ Final approval

l Secy. Forest, PCCF,

Nodal Officer, CF, DFO

-

plan period, NCDC assumed full responsibility of detailed coal exploration.

Later, in the due course of time, Coal India Limited was formed and assumed the

responsibility of coal mining and exploration and other associated activities.

Geographical location and geology of the coal reserves in India

India's major \vorkable coal deposits occur in two distinct stratigraphic horizons

- the upper Paleozoic (Permian), commonly called 'Gondwana' coals and the

tertiary coals.

About 99% of the country's coal resources are found within a great succession

of fresh water sediments, that is supposed to have been deposited during

Permian period (225 -270 million years ago), located in the peninsular India in

the south -eastern quadrant bounded by 78° E longitude and 24° N latitude,

which leaves three fourth of the country practically devoid of any important coal

deposits. The major coalfields are represented by isolated basins which occur

along the prominent river valleys such as Damodar (Study area for the present

study 'Argada area' in South Karanpura Coalfield (SKCF) lies in the Damodar

river basin in Jharkhand)

Other river valleys are Koel, Sone, Mahanadi, Pench-Kanhan, and Pranhita­

Godavari. There are about 50 coalfields varying in size from a few Km2 to as

much as more than 6000 Km2 and there are small lenticular occurrences of coal

along Himalayan foothills, with varying thicknesses of mine able horizons and it

varies from less than 1 meter to more than 150 meters in thickness.

A few isolated deposits of Mesozoic coals have been reported from Gujarat, but

at present, are not of much economic significance. There are besides small

Tertiary (Eocene and Oligocene - 25 to 60 million years ago) coalfields

constituting about 1% of the total coal resources. These resources are located in

the Naga, Mikir, Khasi-Jaintia and Garo hill in the states of Assam,. Nagaland,

and Meghalaya and also, some in the Jammu & Kashmir.

63

Lignite deposits of Eocene, Upper Miocene to Pliocene and Pleistocene are known to

occur in widely separated areas such as Kashmir, Rajasthan, Gujarat and Tamil

Nadu, the most important being the South Arcot lignite in Neyveli.

The coals in India are largely sub-bituminous/bituminous with characteristic high ash

content (generally 20-35%) but low sulphur (up to 0.7%) and phosphorous content

(about 0.01 %) The coals are also banded with carbonaceous shale, shale or even

sandstone.

Geography and geology of the coalfields in Jh~rkhand

Jharkhand consists of several geological formations. (Dunn, 1941 ). 59 They are as

follows arranged in orders of age from youngest to oldest:

1. AlluYium

2. Laterite

3. Late Tertiary Gravels

4. Rajmahal Trap

5. Gondv,rana

6. Vindhyans

7. Newer Dolerite

8.· Archaean

Archaean is the oldest rock formation and occupies most of the area of the

plateau.

Cropping out the remaining area are the Gondwana sediments rich in coal, and

small areas of Vindhyans in the Northwest and the Rajmahal traps in the

Northeast.

59 Dunn, J.A.: (1941), "The Economic Geology and Mineral Resources of Bihar", Memories, G.S.L vol. I, LXXVIII, 1941, pp. 15-16.

64

The Ranchi Plateau is separated from another surface of the same elevation by

the Damodar trough. It is upper Hazaribagh Plateau and is a continuation of

Ranchi plateau.

There are twenty-one promising coalfields in Jharkhand of which three are in

Dhanbad, seven in Hazaribahg, three in Palamau and eight in Santhal Pargana

(Dumka, Godda, Deoghar and Sahebganj). Most important are Jharia, Bokarao,

Giridih and Karanpura (North & South). Lying south-west ofDhanbad town and

covering an area of 453 sq. km., working at seams of over 1 meter thickness

each, the Jharia coalfield has been recognized as the storehouse of the best

metallurgical coal in India.

The coalfields of Bokaro are in form of a narrow but long strip in the catchments

of Bokaro river. It was an area of about 674 sq. km. The 30-meter thick Kargali

coal seam in east Bokaro also bears cooking coal. To the South-West of Giridih

lies the Giridih coalfield also known as Karharbari coalfield. Its field of 285 sq.

km. has three main seam of varying thickness:

a) The lower Karharbari,

b) The upper Karharbari, and

c) The Badhua seams, of which the 3 to 7.5 m thick, lower Karharbari provides

one of the finest cooking coal in India for metallurgical purposes.

Karanpura and Ramgarh coalfields lie to the west of Bokaro and cover an area of

about 1550 sq. km.

The coal production is being undertaken by the Central Coal Fields Limited

(Ranchi), Eastern Coal Fields Ltd. (Asansol) and Bharat Cooking Coal Ltcl.

(Dhanbad).

The total ~oal reserves are estimated in the region to be more than 55000 crore

tonnes.

65

Coal India Limited

The Coal India Limited formed in 1975 is now the largest coal mining company

in the world with a work force of around 5, 24,000.

Table 3.5

CIL- Growth & production under various five year plans

(In million Five Year Plan Average annual Production

tonnes) growth over (India)

Terminal Year previous year

1955-56 First 6.95 38.13

1960-61 Second 4.00 55.72

1965-66 Third 0.93 67.74

1973-74 Fourth 7.52 78.17

1978-79 Fifth 6.28 101.97

1984-85 Sixth 6.38 147.43

1989-90 Seventh 5.16 200.91

1996-97 Eighth 7.74 285.66

2001-02 Ninth 4.19 327.79

Source: Coal Directory2003, Coal India Limited, Kolkata

As far as constitutional safeguard in Indian context is concerned, the Indian

constitution is clear and categorical, in making the state responsible to protect

and improve the environment and to safeguard the forests and the wildlife of the

country (Article 48-A). More emphatically, Article 51-A makes it the

fundamental duty of every citizen of India: To protect and improve the natural

66

environment including forests, lakes, rivers and wildlife, and to have compassion

for living creatures. (Article 51A (g)

Mining Regulations in Retrospect

The first concrete proposal for inspection and regulation of mining operations in

India came in 1890, from Lord Cross, the then Secretary of State of India.

Accordingly, in 1894, James Grundy was appointed as the first ever Inspector of

Mines in India within the organization of the Geological Survey of India. After

preliminary study by inspector of mines in the year 1894, a committee was

appointed by Govt. of India to frame suitable legislation to afford full protection

to persons working in the mines in such matters, in which they had a reasonable

claim on the state for protection.

Mines Acts:

The first Mines Act was enacted on 22nd March 1901. It was applicable to all

mines situated in the British India, and to the Princely States. The mines act

1901 was superseded by a new Indian Mines Act 1923 and was finally replaced

by the Mines Act 1952. Major changes were incorporated in this act by

amendments in the year 1959 and 1983, which was enforced with effect from

31.05.1984. Major amendments in coalmines regulations were brought about in

the year 1985.

Mines Act had been amended from time to time; the general framework had

remained ·the same. The operations in the mines are regulated by Mines Act,

Rules, and Regulations, Byelaws etc. These rules, laws are required to be

constantly upgraded. based on the experience gained while implementing and

enforcing in the mines. "Major developments in mining technology have come

in opencast mine, which have created new hazards to the health & safety of

persons engaged in the mines."(Pattojoshi et al, 2002)60

60 Pattojoshi, T. and Sahu, P.N (2002) Proposed Amendment Of Mines Act, 1952: A Suggestion & Implication; The Indian Mining &Engineering Journal; June ; pp. 24-26

67

The national mineral policy (NMP) 1993 laid down the foundation for the

liberalization of the Indian mineral sector, as a result of which, The mines and

Minerals (Regulation and Development) Act, 1957,was ultimately amended on

January 25, 1994.This opened. up 13 minerals to exploitation, production and

processing by private sector, both domestic and foreign. These minerals are iron­

ore, manganese ore, chrome ore, sulphur, gold, diamond, copper, lead, zinc,

molybdenum, tungsten ore, nickel and platinum. The NMP also encourages the

use of foreign technology and participation, and encourages the mining of high

value and scarce minerals.

Mining joint ventures having foreign equity participation up to 50% receive

automatic approval by the government. It is possible to have 100% foreign

equity, subject to approval by the Foreign Investment Board (FIPB). These

conditions do not apply to mineral and metal processing units, which wish to

develop captive mines for assured supply of raw material.

Coal falls under the purview of Coal India Limited, a maJor public sector

company. Captive mining of coal is now permitted for the power, steel and

cement industries. Companies owing captive coalmines must, however, retain a

minimum of26% equity in the company.

An overview of the mineral policy of India:

The new mineral policy of the government of India announced in March 1993 is

one step forward in the programme of economic and industrial reforms in India.

This policy formulation is a significant move for integrating the Indian economy

with the global economy. The mines and minerals (regulation and development)

Act, 1957 (last amended in 1994) which had given new directions enunciated in

the national mineral policy and has created a conducive and enabling

environment to encourage inflow of capital investment, technology and skills in

exploration by private sector, including foreign investments and joint-ventures

and provided access to market world-wide.

68

Government of India came out with the mineral policy in 1993 outlining the

direction which was desired to develop the mining industry and the priorities for

actions to be taken in relation to various aspects related with mining and

development of mineral deposits including the aspects of protection of

environment.

It is pertinent to highlight some of the National Mineral Policy, 1993 here in the

context of mining activities and sustainability concerns. It has been stated in the

policy that:

a) Efforts will be made to promote small-scale mining of a small deposit in a

scientific and efficient manner, while safeguarding vital environmental and

ecological imperatives.

b) It is necessary to take comprehensive view, to facilitate the choice or order of

land-use keeping in view, the need of development as well as the needs of

protecting the forests environment and ecology. Both aspects have to be

properly coordinated, to facilitate and ensure sustainable development of

mineral resources, in harmony with the environment.

c) Prevention and mitigation of minerals and repairing and revegetation of the

affected forest area, and land covered by trees, in accordance with the

presctibed _norms and established forestry practices, shall form integral part

of mine development strategy, in every instance.

d) Mining operations shall not ordinarily be taken up in identified ecologically

fragile and biologically rich areas. Strip mining in forest areas should, as far

as possible, be avoided and it should be permitted only, when accompanied

with comprehensive time bound reclamation programme.

e) No mining lease would be granted to any party, private or public, without a

proper mining plan including the environmental management plan approved '

and enforced by statutory authorities. As far as possible, reclamation and

afforestation will proceed concurrently with mineral extraction.

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f) Effm1s would be made to convert old used mining sites into forests and other

appropriate forms of land use.

Thus, it can be seen that the National mineral policy contains several guidelines

to be followed, to ensure that legislation is enacted to take care of different

aspects of the environmental pollution, caused by mining and measures to be

taken for its protection and restoration. Not all the aspects, contained under

national mineral policy have been converted into legislation yet. However, the

changes brought about in the last 7 or 8 years take care of most of the things.

The ne\v mineral policy, is in tune with the governments economic reforms

programme. Economic reforms brought in a paradigm shift in the developmental

strategies - a shift from government to markets. The new mineral policy,

1993(applicable to all non-atomic and non-fuel minerals) and the amendment in

1994 of the mines and minerals (Regulation and Development) Act, 1957 has to

be seen in this context. Precisely, the new Mineral policy brought in the

following changes:

1) Thirteen minerals viz. iron ore; manganese, chrome, sulphur, gold, diamond,

copper, lead, zinc, molybdenum, tungsten, nickel and platinum group of

minerals have been deleted from the list of minerals, which had earlier been

reserved for exclusive exploitation by the public sector. They are now open

for exploitation by the private sector.

2) Ceiling on the foreign equity investment in the mining industry has been

raised to 50% in Indian companies engaged in mining activities.

3) Mineral and metal processing units which wish to develop captive mines to

secure assured supply of raw material are now permitted to invite foreign

equity participation. Equity participation over 50% by foreign parties in non­

captive mines can also be considered on case-to-case basis.

4) States. no longer require central governments approval for grant of mining or

prospecting licenses in the case of 15 minerals: apatite, phosphate ores,

barites, dolomite, gypsum, kyanite, magnesite, molybdenum, nickel,

70

platinum and other precious metals, sillimanite and silver, sulphur and its

ores, tin, tungsten and vanadium ore.

5) The period of prospecting license has been raised from two to three years,

with a proYision for renewal, so that the total period does not exceed five

years.

6) Similarly, the period of mining lease was increased to a minimum of 20 years

and a maximum of 30 years with provision for renewal for another 20 years.

(Source: labour file, 2000)61

Mining sector. being state controlled effectiveness, will depend wholly on the

ability and effectiveness with which the state can plan, provide technical and

managerial expertise, commit financial resources, and secure markets.

Development under private sector depends for its success upon more detailed

considerations, given its more fragmented situation.

a) There should be a clear definition of the terms and conditions of operating

practices, employment, and training, ecology, safety, fiscal and legal

requirements and land tenure under which a mining company domestic,

public or private will be expected to function.

b) To help assured maximum returns to the state from a given mineral resource,

the relative economics of processing the mineral domestically and exporting

the raw material should be carefully evaluated.

c) Expansion of domestic ownership and control of mineral resource industries

is the prerogative of a country, but it should take place on a clearly defined

and well -publicized basis, in order to maximize the country's share of the

benefits derived from its mineral resources. The rate of such expansion will

depend on the need for, and extent of reliance on, foreign technology,

management know-how, capital, and markets.

61 Labour File (2000) A monthly Journal of Labour and Economic Affairs; vol6, no.6 & 7, June-July

71

d) Mineral policy should provide for mineral conservation measures, increasing

ore body recovery and minimizing waste. The fiscal regime can have an

impmiant influence on the efficiency of the sector and the extent of resource

waste.

Provision should be made in the formulation of mineral policy for

procurement, maintenance, and dissemination of geological and mineral

resource data. Such information is expensive; it should be carefully collected

and used to prevent the duplication of exploration activity.

e) Mineral policy should encourage land reclamation and elimination or control

of air and water pollution. Environmental control in mining is of increasing

public concern; it is generally accepted that the cost of that control is a

component of operating costs, and therefore can be passed on to the

consumer. \Vhile this may not be the case yet, over the long term, countries

imposing reasonable ecological requirements are not expected to be at a

disadvantage when competing for investment capital and markets.

f) Mining can often, on the one hand, serve as the basis for regional

development, and provision may be made for it in mineral policy (through

tax allowances as investment incentives, for instance), particularly in areas

with wide regional disparities. On the other hand, mineral deposits by their

very nature become exhausted, and the facilities and communities, which

came into existence because of them, may cease to have a purpose. This has

often led to community pressures to keep sub marginal mines in operation, at

great cost to the country, with inefficient use of labour, and a decline in the

overall efficiency of the industry. Mineral policy should provide for

programs to ease severe disclosures and to facilitate adjustment to change, in

case of mine closures.

g) Being frequently situated m remote areas, mineral projects often have

significant new infrastructure needs such as housing and community

facilities, roads, water power, railway and ports. Mineral policy should

72

provide guidelines for determining whether responsibility for the

infrastructure lies with the government, the private sector or both. The

government may wish to supply it, in order to maintain control over public

utilities, freight and social services, and to increase its share of project

benefits through rent on facilities, Often the responsibility is shared by the

investor and the government. Project evaluation should take account of the

cost of associated infrastructure and of the catalytic effect of such

infrastructure on regional development apart from the mineral development.

h) Mineral exploitation should be accompanied by adequate provision for

training and employment of indigenous personnel.

i) Mineral policy should ensure that mining provides the state/region with an

equitable share of revenue from such activities. Furthermore, the non­

renewable nature of mineral resources makes it essential that, government

revenues from mineral resources exploitation be channeled into continuing

productive investment in industry, agriculture, and supporting infrastructure.

In many cases, the foreign exchange earnings go into purchase of consumer

goods; mineral tax revenues are used to support the governments cuiTent

budget; and alternative productive capacity or revenue-earning facilities are

not installed to take over from the depleted reserves.

Coal sector has been facing various performance related problems and there

have been a demand and supply gap and various operating companies under

Coal India Limited have shown sluggish performance, both at the man and

machinery level. The leading coal producers of the world, of course, possess

the cutting edge technology and are producing higher amount, even though

possessing lesser in reserves.

Though, of late, government has started thinking about outsourcing option for

certain new projects, but it is likely to face much criticism among the permanent

employees of Coal India Limited. There has been resentment among the worker

groups over Outsourcing option being considered for certain new projects under

73

Central Coalfields Limited (CCL). The name of few of these projects under CCL

IS:

1) Ashok Open cast project

2) Amprapali Opencast project

3) Magadh Opencast Project

4) Kaveri Opencast Project

The more clear terminology for a clear understanding the outsourcing option is

to have a "pri,-ate partnership" at the various levels of coal extraction procedure.

Mining in general or coal mining in particular, involves a set of procedures to be

followed before and after the extraction of the mineral from the project area.

The primacy of coal among the energy resources lies in its relatively comfortable

position vis-a-vis that of the hydrocarbons. The present coal resources going by

the reserve to production ratio is expected to last for another 50 years (coking

coal) and 170 years (non-coking coal) as compared to 14 years for crude oil and

15 years for natural gas, making coal a very secure energy source for the

country.

In the last five years, there have been 14 coal ministers and in the last 10 years,

there have been 22 ministers, apparently, resulting in instability at the decision

making level in the coal sector.

CMPDI

Central Mine Planning and Design Institute (CMPDI), which is the in- house

consultant of Coal India Limited and its subsidiary companies, is registered

under the Companies Act, 1956 of Government of India , as a wholly owned

subsidiary of CIL, under the administrative control of Ministry of Coal and

Mines.

CMPDI has its headquarter at Ranchi and its Regional institutes (RI) are at:

i) Asansol

74

ii) Dhanbad

iii) Ranchi

iv) Nagpur

v) Bilaspur

vi) Singrauli

Vii) Bhubaneshwar

The conception of CMPDI and its creation in 1975 was in the same manner as

the State Planning Institutions in Poland and to some extent, the then USSR and

to play a role in centralized coal exploration comprehensive mine planning and

design, allied engineering and environmental services to all the subsidiary

companies of Coal India Limited. The approach of CMPDI has been to identify

the potential blocks followed by systematic implementation of coal exploration

programme and subsequent selection of mining methods.

CMPDI, over the years, has been also providing consultancy to the non-coal

sector and it is sharing its expertise in the field of Coal Bed Methane (CBM) and

it is also considering the exploration and exploitation of Coal Mine Methane

(CMM) within the command areas of Coal India Limited.

On November 19th 2004, Govt of India has constituted an expert panel for a

comprehensive review and record road map for coal sector, for focused direction

for its development.

A seven-member committee headed by a TL Shanker (retired lAS officer) New

Mineral Policy, 19930ctober 30, 1995

The basic objectives of the mineral policy in respect of minerals shall be as

follows:

1) To explore for identification of mineral wealth in the land and in offshore

areas

75

2) To develop mineral resources taking into account the national and strategic

considerations and to ensure their adequate supply and best use keeping in

view the present needs and future requirements

3) To promote necessary Linkages for smooth and uninterrupted development

of the mineral industry to meet the needs of the country

4) To promote research and development in minerals

5) To ensure establishment of appropriate educational and training facilities for

human resources development, to meet the manpower requirements of the

mineral industry

6) To minimize adverse effects of mineral development on the forest,

environment and ecology through appropriate protective measures; and

7) To ensure conduct of mining operations with due regard to safety and health

of all concerned.

8) It also emphasizes the development of infrastructure in backward areas where

mineral activities are normally carried out.

9) It is also proposed that for any grant of mineral concessiOns for small

deposits in scheduled area, preference should be given to the scheduled

tribes. Dept. of Ocean Development will make a special effort for survey and

exploration of deep-sea bed area.

1 0) Induction of foreign technology and foreign participation and mining of high

value and scarce mineral shall be pursued.

11)Mines and Minerals (Regulation and Development) Bill, 1994 gives more

powers to the State Governments, providing greater stability of tenure in

mining leases and accelerating inflow of private capital, both domestic and

foreign, as also state of the art technology into .the mineral sector.

12)The bill has removed any restriction on equity holding by foreign nationals in

a mining company. Any company registered or incorporated in India can

76

apply for a prospecting license or a mining lease from the concerned State

government.

13)The Bill has deleted 15 minerals hitherto listed in the First Schedule of the

Act requiring prior approval of the Central Government before the State

Government could grant a prospecting license or a mining lease. The

minerals so deleted are:

Apatite and phosphate ores , Barites ,Dolomite ,Gypsum ,Kyanite ,Magnesite ,

Molybdenum, Nickel ,Platinum and other precious metals , Sillimanite ,Silver ,

Sulphur and its ores ,Tin ,Tungsten ,Vanadium ore.With this deletion (excepting

the atomic minerals and fuel minerals), there would only be 11 minerals left for

which the State government would require prior approvals of the

Central Government.

These are:

Asbestos, Bauxite, Chrome ore, Copper Ore, Gold, Iron ore, Lead, Limestone

except where it is used in Kilns for the manufacture of lime as building material

Manganese ore, Precious stones & Zinc.

The project approval stage for coal mining is sometimes painstakingly long.

"Project approval procedure for coal mining sometimes takes long durations. A

number of cases are on record where projects have taken 5 to 7 years normally

and up to 15 years in exceptional cases." (Chechani, 2002)62

Major environmental acts I Statutes enacted by Government of India

The problems of environment were recognized and remedial measures were

undertaken some years ago in developed countries, in India, it was during sixth

Five year plan (1980-85) that an attempt to manage environment was made by

constituting the 'Department of Environment'.

The seventh plan emphasized the need to prepare an environmental management

plan in all new projects as an integral part of the mining Feasibility report.

62 ibid

77

Though several legislations were enacted, (e.g. The water (prevention and

control of pollution) act 1974, and Amendment Act 1978; The water cess Act

1977 and the \Vater cess rules 1978; The Forest (Conservation) Act:1980; The

Air (Prevention and Control of pollution) Act 1981, and Rules; The

Environment (Protection )Act 1986; The Mines and Minerals (Regulation and

Development) Amendment Act: 1987, Coal Mines Nationalization

(Amendment) Bill, 2000) in order to protect the environment, its visible impact

is yet to be felt. Without strict penalties, adherence to these policy nom1s will be

ignored especially because without any additional financial support earmarked

for ensuring environmental safeguards, no company would like to lag behind in

order to maintain profit graph.

The World Bank (WB) and the International Monetary Fund (IMF) have played

significant roles in facilitating the opening up of large-scale mining in the

developing countries, through loans which are given to the governments to build

the infrastructure needed to support the mining operations (roads, energy

sources, etc.) or through direct loans to the mining companies themselves, and

by helping draw up the blueprint for the economic development of our countries.

Since the 1970s up to the present, the developing World has been under the

Structural Adjustment Programmes (SAPs) of the WB-IMF. The main elements

of such programmes have been the privatization of state-controlled corporations

(e.g., mining corporations), removal of subsidies, tightening of government

budgets, with cutbacks on social services; reforms in tax codes, liberalisation of

the agricultural and mining sector, etc. to allow the entry of foreign mining

corporations. This also means liberalization of investment codes, mining codes

and agrarian reform codes.

Suggestions for an efficient EIA/EMS at the operational level

1) Commitment of all the employees of the mining company at the

organizational level is required to achieve the aim of the Environmental

78

Management System. Environmental training should be a must for all

employees.

2) Law is the minimum requirement for the environmental performance. The

Law should be clear and unequivocal, and also easy to apply to different

activities. To achieve a well functioning legal system, the legislation must be

combined with a powerful support in the form of expe1iise from the

Academic, judicial, bureaucratic and the concerned NGO's.

3) An interdisciplinary team for the EIA - EMS should be formed which

consists of experts from various fields and should incorporate expertise of

Biological/ecological, Physical/Chemical experts and viewpoints of trained

Geographers and experts on Rural development, Culture, Sociology and

Economics.

4) Local people have an incomparable basic knowledge about the conditions of

the area and therefore, they must always be involved in the planning process.

In public consultations, they may express their viewpoints. The local people

can be involved at the operational phase also as the employees of the

company. This may seem which is being already done but when, for

example, there is a foreign investment then it could be disregarded. Recently

Coal India Limited has already opened online bidding for private investors.

"Mining is one of the few projects that are known to have a limited duration."

(Ricks, 1997)63The legislation should therefore require a plan for the closure,

from the beginning of the project. Planning for closure will involve the

investments to reduce the environmental impacts, such as environment friendly

technology and /or treating the pollution at the source level.

Consideration of similar previous project's planning and learning from their

expenences.

63 Ricks, G. (1997). Environmental considerations in mine closure planning. UNEP Industry and Environrnent;oct-dec 1997,pp 21-25

79

Restoration of the area at the time of closure reqmres all installations and

equipment removed from the site. (Dhar, 2000)64 and include the Neyveli Lignite

mine and the Timba Quarry of Siyaji Iron Works.

Neyveli created a programme with six stages:

1) Revegetation of the affected area.

2) Afforestation of outside spoils banks.

3) Creation of picnic spots.

4) Formation of artificial lakes and ponds.

5) Conversion of disturbed land to agricultural use.

6) Creation of Pasture lands.

The programme implementation was very successful and has won several

national awards in recognition of better mining practices from a restoration

perspective.

In Jharkhand there are several coal mines/quarries, which have been abandoned.

They can be converted into a luxuriant area or resort. The coal companies

operating in Jharkhand can use this model for a similar purpose.

64 Dhar, B. (2000). Environmental Management Systems for closure and Best Practice in the Indian Mining Industry. In A. Warhurst and L.Noronha (Eds.) Environmental Policy in Mining; pp.295-310; Florida: CRC Press LLC

80