PR for Malachua OCP (3.0 Mty) (Updated April CMPDI...

PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI

Job No.- 518221 Page - S 1

PROJECT REPORT FOR MALACHUA OPENCAST PROJECT (3.0 MTY) (Updated April,2015)

SUMMARISED DATA

Sl. No. Particulars Unit Value

A. GENERAL

1 Name of Project MALACHUA- OC

2 Name of Area / Company/State Johilla Area/SECL/MP

3 Nearest Railway Station from project Name

Km

Badhwabara

9.0

4 Nearest National / State Highway / Approach

Road

Name

Km

The state highway No.78

connecting Katni and

Shahdol passes about 14.8

km due North of the block

B. GEOLOGICAL

1 Name of geological blocks considered Name Malachua. Block

2 Area of the geological blocks(part area) sq. km. 9.22

3 Borehole Density within blocks BHs

/ Sq.km. 8.24

C. TECHNICAL

1 Area of the proposed mine boundary Ha 904.0

2 Borehole density within mine area BHs

/sq. km 8.41

3 Mine parameters (Quarry-wise)

Extent along strike (min. – max.)

Extent along dip (min. - max.)

m

m

2840-3400

3210-3490

Seam Surface

Cover (m)

Area of Development (sq. km.) [As per GR]

Thickness Range (m)

Grade Range (Dominant

Grade)

Borehole Intersection (As per GR)

Borehole Density/ sq. Km.

Geological Reserves (Mt) [As per GR]

Seam-IX

0.10-0.30 - 3 -

Parting 50.95-54.40

Seam-VIIIT

11.00-106.10

1.4756 0.40-4.15

F-B D

20 9.4877 3.6617

Parting 1.00 –4.62

Seam-VIII comb/mid

12.80-96.10

7.8693 0.20-5.35

E-B D

64 8.13 27.5996

Parting 10.80-110.60

1.30-13.19

Seam-VIIIB

11.40-111.80

8.8443 0.09-3.15

G-C D

48 5.4272 17.7133


Job No.- 518221 Page - S 2

Seam Surface Cover

(m)

Area of Development (sq. km.) [As per GR]

Thickness Range (m)

Grade Range (Dominant

Grade)




Parting 13.60-32.95

Seam-VIIT

0.05-1.80 21

Parting 6.67-19.80

Seam-VIIB

51.35-152.00

8.0706 0.05-2.61

F-A C

65 6.0714 13.6262

Parting 7.70-21.65

Seam-VIT 65.28-158.70

4.4082 0.11-2.26

UG-A D

51 8.8471 6.2749

Parting 0.76-13.90

Seam-VIB 72.02-170.10

6.6555 0.06-2.35

G-B D

66 7.5126 7.9131

Parting 5.65-24.00

Seam-V 0.05-0.80 40

5 Av. Stripping Ratio cum/t 13.78

6 Method of Mining Coal with Surface Miner OB with Shovel – Dumper

7

Target Output

Nominal production capacity (at 100%)

Peak production capacity (at 125%)

Production capacity (at 85%)

Mty

Mt

Mt

Mt

3.0 3.0

3.75 2.55

8 Year of achieving Target Production

(from zero date)

6 th

9 Year of start of Internal Dumping 4th

10 Production Phasing ( from zero date upto target

year)

Mt

Year / Coal Seam Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Coal 0.2 .50 1.00 2.00 3.0

OB 2.30 5.70 11.40 22.70 33.80

Sl. No. Particulars Unit Value

11 Total Mine Life (at Normative production capacity)

Construction Period

Production build-up period

Production period

Tapering / mine closure period

Years

Years

Years

Years

Years

23

1

5

16

1

12 Major HEMM Deployed for Coal Surface miner, Front End Loaders,

Dumper, Dozer


Job No.- 518221 Page - S 3

13 Major HEMM Deployed for OB

Shovel & Dumper Combination

14 Total Manpower Nos 224

15 OMS Tonnes 48.72

16 Weighted average grade of coal Corresponding GCV band

Kcal/ Kg G7 (5200-5500)

17 Presence of Major Surface Constraints (Nallas, road, power line, etc.)

(type) Diversion of Arar Nallah,

Baskati Nallah, road from

Panwari to Shahdol

18 Coal Transport within the mine

(In-pit belt conveying system or by Dumper)

Dumper

19 Surface Coal Transport to Siding/Despatch

Point and Mode of Despatch

Dumper

20 Any Railway Siding and distance Badhwabara siding 9 km away

21 Name of any Specific Customer/Industry Miscellaneous

D. ENVIRONMENTAL & OTHERS

1 Civil Construction Residential houses

(Hutments for outsourced manpower)

Nos. Nos.

124 Nil

2 Water Demand Colony

Industrial

MLD MLD

0.110 0.446

3 Total Land to be acquired Government land

Tenancy land Forest land (type of forest)

Ha Ha Ha Ha

1057.14 221.51 720.03 115.60

4 Land to be acquired within mine area (excavation area)

Government land Tenancy land

Forest land (type of forest)

Ha

Ha Ha Ha

904.00

196.19 592.21 115.60

5 Land to be acquired outside mine area (Beyond Excavation Area, such as, Approach Road, Infrastructure, Colony, etc.)

Ha 153.14

6 Land to be acquired for external dumping Ha Nil

7 Net Present Value of Forest Land

Total Area

Total Value

`Lakhs/

Ha

Ha

`Lakhs

10.0

115.60

1156.0

8 Habitation & Rehabilitation

No. of villages within mine boundary

No. of land oustees

Nos.

Three

999


Job No.- 518221 Page - S 4

No. of PAFs to be rehabilitated 884

9 Cost of land & Rehabilitation

Total Cost of Land

R&R only

`. lakhs

804.61

9462.89

10 Total EMP Capital ` crores 121.41

11 Average annual rainfall mm 1200

12 Total installed pumping capacity lps 1624

13 Any proposed diversion of road or power line Diversion of Panwari-Shahdol

road

E. FINANCIAL Unit Values

1 Total Capital Investment Existing(Gross Block)

Rs. Crores

0

Additional 528.28

Total 528.28

2 Specific Investment Rs. / tonne 1760.92

Rs./cum 127.77

3 Total Capital Investment on P&M Rs. Crores 106.72

4 Specific Investment on P&M Rs. / tonne 355.72

5 Capital requirement upto target year Rs. crores 475.67

6 Earnings per manshift (EMS) Rs. 3058.92

7 Estimated Cost of Production

At 100% production level Rs. / tonne 1353.53

At 85% production level 1407.56

8 Estimated Weighted average selling price Rs. / tonne 1525.00 9 Estimated Profit

At 100% production level Rs. / tonne 171.47

At 85% production level 117.44

10 Financial Internal rate of return (FIRR)

At 100% production level %

22.24%

At 85% production level 12.23%

11 Break-even point

Production Mty 1.92

Production level % 64.10

12 Cost of Outsourcing (average) OB Rs/cum 47.00

Coal Rs/tonne 74.30

Coal Transportation rate Rs/tonne 68.00

13 Mine Closure Cost (for corpus fund) Rs/tonne 27.79

14 Expected Completion Capital (upto target year)

Rs. crores 500.34

*******


Job No.- 518221 Page – ES 1

EXECUTIVE SUMMARY

1.1 INTRODUCTION

The Malachua O/C Block is located in the Western part of Sohagpur Coalfield, lies

about 12 km South-West of Shahdol township the district headquarter of Madhya

Pradesh. The area in and around Malachua O/C Block is virgin with no mining activity.

The nearest working U/G mines Birsinghpur, Kudari & Pinoura of SECL, Johilla Area

are located at a distance of 25-30 km. in North-Western direction from Malachua O/C

Block and other working mines of Sohagpur Coalfield, Damini U/G, Rajendra U/G &

Navegaon U/G in the east direction at a distance in the range 35 to 40 Kms.

The area is well connected by rail and road. The Shahdol-Pali road (NH-78) passes

through Marwatola block situated in the immediate north of Malachua O/C block. The

nearest rail head is Badhwabara located 7 km north of the block .The Shahdol station is

located 8 km from Badhwabara and to the opposite side at 29km is the Birsihnghpur

Pali station.These three stations are located on Anuppur-Chirimiri broad gauge line of

South East Central Railway.

MECL has undertaken regional exploration of coal in the years from April 2004 to

April 2005 in West of Shahdol block and subsequently in Marwatola block during the

years April, 2005 to May 2007. As a result of promotional / regional drilling in these

blocks, MECL has established the presence of a total of nine co-relatable seams /

carbonaceous horizons from Seam IV to Seam I in descending order with split sections

of Seam III & II. Out of these seams- IV, III (Top & Bottom) and II (Top & Bottom) are

persistent and have attained workable thickness. Other seams, i.e. Seam IB, IA and I

are not persistent throughout and have attained workable thickness in small patches

only. Qualitatively, the coals of these blocks are high moisture, low rank, high volatile,

non-coking coals with grade varying from D to B.

The data generated during the course of regional (promotional) exploration of coal in

West of Shahdol Block and Marwatola Block by MECL was encouraging and has

established the availability of 111.30 mt within 27.00 sq.km. area & 516.25 mt covering

an area 78.00 sq.km. of indicated category of reserves respectively.



It is further observed that all these coal seams are persistent and continuing

westward & further south into the adjoining Malachua Area.

In order to prove the continuation of coal seams-VIIIT and up to V (as per CMPDI

seam corelation) and to prove their opencast potentiality detailed exploration was taken

up further south of Marwatola block during the years June 2007 to June 2009 by

CMPDI, RI-V, Bilaspur for preparing the present opencast report and named as

Malachua O/C Block.

1.2 MINING ACTIVITIES

The Malachua O/C Block is located in the Western part of Sohagpur Coalfield, lies

about 12 km South-West of Shahdol township the district headquarter of Madhya

Pradesh. The area in and around Malachua O/C Block is virgin with no mining activity

The nearest working U/G mines Birsinghpur, Kudari & Pinoura of SECL, Johilla Area

are located at a distance of 25-30 km. in north-western direction from Malachua O/C

Block and other working mines of Sohagpur Coalfield, Damini U/G, Rajendra U/G &

Navegaon U/G in the east direction at a distance in the range 35 to 40 Kms.

1.3 JUSTIFICATION OF PREPARATION OF PR

This project is identified in XII Five Year Plan for production contribution. The coal

production from Sohagpur Coalfield has to be enhanced. To meet the demand of power

grade coal from the area in the XII Plan, it is essential to open new projects.

1.3.1 CHRONOLOGY OF PREPARATION OF PR

The Final Project Report for Malachua OCP was submitted in September 2012 with

the following two options.

DEPARTMENTAL, OPTION-I:

Mining will be done with the help of departmental shovels and dumpers for OB and

Surface Miners for coal. OB will be extracted by the combination of 42 Elect. Rope

Shovels & 12cum Elect. Hyd. Shovels and 240T & 100T RD. For extraction of coal,

surface Miner with a combination of 6 cum FEL & 45T RD coal body dumper / truck will

be used.



External OB will be dumped within the mine boundary and will be rehandled back

through outsourcing into the mine area.

OUTSOURCING, OPTION-II:

All operations of mining activity of winning of coal and removal of OB will be under

taken through outsourcing. External OB will be dumped within the mine boundary and

will be rehandled back through outsourcing into the mine area.

Another Option, Option-III, with 20 Elect. Rope Shovels instead of 42 cum Elect.

Rope Shovels and 190T Rear Dumper instead of 240T RD has been worked out. In all

the three options selling price of coal was considered as notified price for power sector

consumer. Economic comparison of Option-I & III has been summarized in Annexure-I.

As IRR in both the options was –ve, economic evaluation of outsourcing option with

notified selling price of coal on the basis of Non-power sector consumers was carried

out and found economically viable (i.e IRR > 12%). The same was put up before SECL

Board in June 2013 and accorded In-Principle approval from the SECL Board. The

Board after detailed deliberations agreed with the proposal for operating Malachua OC

Project (3.0 Mty) through Mine Developer-cum-Operator (MDO) route. Economics of the

same has been given in Annexure-III.

As per the guidelines, due to time over run, the outsourcing Option which was

accorded by Board, has been updated and submitted.

Sometimes with favourable geological conditions and improved productivity of the

HEMM with better mining conditions, project may produce upto 1.25 times of the

planned capacity. So, EMP should be prepared for 3.75 Mty, accordingly approval from

the Competent Authority is to be sought.

1.4 DIFFICULTIES AND CONSTRAINTS IN MINING WITH ASSOCIATED RISK

a) The Malachua Block, has a large area (115.60Ha) of forest in patches .The forest

clearance for the forest land would be required for opening of the mine.

b)Two nallas named as “Arar Nalla” flowing from West to North boundary and

“Baskati Nallah“ from south to northeast flow within the mine the Block. Both ultimately

join Son river in Northeast direction .The Arar nallah is a deep nallah & needs to be

diverted .

c) A metalled road to the Shahdol needs to be diverted as it passes through the

mine area.



d) The minetake area involves 3 villages in which about 884 families and 999 land

oustees are involved. These are to be rehabilitated.

2.1 UTILITY OF MARKET FOR THE COAL FROM MINE / PROJECT

Liberalisation of power sector by Government of India has generated wide spread

interests for private and public sector investments in power generation. As such, there

is an appreciable increase in the number of upcoming new projects in both private and

public sectors. Malachua OC is a new project & grade of coal is grade „D‟ and

equivalent GCV of „G9‟ band (4600-4900 Kcal/Kg). Preparation of PR for Malachua

Opencast with enhanced coal production is, therefore, proposed with a view to fulfill the

above indicated growth in demand.

3.1 LOCATION

The Malachua Block about 12 km south-west of Shahdol township the district

headquarter of Madhya Pradesh is bounded by latitudes 230 14' 27" to 230 16' 23 N

and longitudes 810 12' 41" to 810 15' 46" E. The block area is covered in the Survey

of India Toposheet No.64 E/7 (RF 1:50,000).

3.2 ACCESSIBILITY AND COMMUNICATION

The Johilla area is well connected by rail and road. The Shahdol-Pali road (NH-78)

passes through Marwatola block situated in the immediate north of Malachua O/C

block. Badhwabara Station is the nearest railway stn (about 7km). A metalled road to

Shahdol also passes through the Block.

4.1 BLOCK BOUNDARY

The geographical block boundary of Malachua OC Block has been defined as

below:

North: An arbitrary line passing 200m north of borehole Nos.CSML-99,100,95, 97,

98, 104, 105, 58, 67, 76 and 66.

South: Fault line F2-F2.

East: An arbitrary line passing 200m north of borehole Nos. CSML-65, MSM-65,

CSML-31, 19, 20 and 41

West: Eastern forest‟s limit line.



The block measures 9.22 sq. km which includes 8.048 Sq. km. non forest area and

1.172 sq km forest area.

4.2 SEQUENCE OF COAL SEAMS AND PARTING WITHIN BLOCK AREA

Sequence and brief description of Coal Seams.

Seam Surface

Cover (m) Area of Development (sq. km.) [As per GR]

Thickness Range (m)

Grade Range (Dominant Grade)




Seam-IX

0.10-0.30 - 3 -

Parting 50.95-54.40

Seam-VIIIT

11.00-106.10

1.4756 0.40-4.15

F-B D

20 9.4877 3.6617

Parting 1.00 –4.62

Seam-VIII comb/mid

12.80-96.10

7.8693 0.20-5.35

E-B D

64 8.13 27.5996

Parting 10.80-110.60

1.30-13.19

Seam-VIIIB

11.40-111.80

8.8443 0.09-3.15

G-C D

48 5.4272 17.7133

Parting 13.60-32.95

Seam-VIIT 0.05-1.80 21

Parting 6.67-19.80

Seam-VIIB 51.35-152.00

8.0706 0.05-2.61

F-A C

65 6.0714 13.6262

Parting 7.70-21.65

Seam-VIT 65.28-158.70

4.4082 0.11-2.26

UG-A D

51 8.8471 6.2749

Parting 0.76-13.90

Seam-VIB 72.02-170.10

6.6555 0.06-2.35

G-B D

66 7.5126 7.9131

Parting 5.65-24.00

Seam-V 0.05-0.80 40

4.3 DESCRIPTION OF INDIVIDUAL COAL SEAMS

4.3.1 SEAM-IX

Seam IX is the top most / first seam from the surface, within the Barakar Formation

in the block.No splitting in this seam is observed in the block area.



Minimum parting in respect to Seam VIIIT down below is 50.90m (CSML-39)

whereas the maximum parting is 54.40m (CSML-101).

The maximum thickness of the seam in borehole No CSML101 is 0.30m and the

minimum thickness is 0.10m in borehole No CSML-39 in the eastern part of the block.

This seam is encountered only in peripheral boreholes of eastern margin of block only,

suggests that the basin had probable low lying void area due to plunge in the east

southeastern part available for coal deposition at later stage.

4.3.2 SEAM – VIII TOP

It is observed that minimum thickness of 0.40m is intersected in borehole No.CSML-

86 and maximum thickness of 4.15m is intersected in borehole No CSML-29. The

average thickness of seam varies between 1.00m and 3.50m. Since Seam VIIIT is

having very persistent & workable thickness almost in patches, therefore described in

detail and also considered for assessment of availability of coal reserves. In major part

of the block area, Seam VIIIT is found to occur combined with VIIIM (Lower Seam).

The non-development zones are seen in small isolated patches near BH Nos.

CSML-18, 19 & 47.

4.3.3 Seam Name: VIII T&M (COMBINED) AND VIII MIDDLE

It is observed that the minimum coal seam thickness of 0.20m is intersected in

borehole No.CSML-52 in the south-western part of the block but the maximum

thickness of 5.00m is obtained in B.H. No.CSML-45 in the south-western part of the

block.

In the major part of the block, Seam-VIIIM is the third (from the top) and second

workable coal horizon within the Barakar Formation. The parting of Seam- VIIIM with

Seam VIIIT predominantly consists of argillaceous facies represented by carb shale,

grey shale and sandy shale. The minimum parting between Seam VIIIM & Seam-VIIIT is

1.02m (CSML-97) found in the north-western part of the block and the maximum parting

of 4.62m (CSML-29) in the eastern part of the block. The split section of VIIIM seam

occurs at a minimum depth of 10.80m (CSML-71) from the surface in the north-western

part of the block and at a maximum depth of 110.60m (CSML-101).



4.3.4 SEAM VIII BOTTOM

The thickness of Seam VIIIB varies from 0.09m in borehole No.CSML-39 in the

eastern part of the block to 3.15m in borehole No CSML-41 in the eastern part of the

block. The average thickness of this coal seam varies from 0.90m to 2.50m. The Seam

VIIIB is developed in entire block. However, it attains unworkable thickness of less than

0.50m in the borehole No CSML-32, 39&47.

The parting of Seam VIIIB with Seam-VIIT varies from 13.60m (minimum) in

borehole No.CSML-75 to 32.95m (maximum) in borehole No.CSML-106. However, the

average parting varies is between 15.0 to 26.0m.

4.3.5 SEAM-VII TOP

Seam VIIT is the 5th from the surface and un-workable seam within the Barakar

Formation in the block.

No splitting in this seam is seen to have been observed in the block area.

Minimum parting between Seam VIIT to VIIIB is 13.60m (CSML-75) whereas the

maximum parting is 32.95m (CSML-106).

The maximum thickness of the seam in borehole No CSML-75 is 1.80m in the

northeastern part of the block and the minimum thickness is 0.05m in borehole No.

CSML-32 & 108 in the east & central parts of the block. This seam is observed

developed in northern part (in northern limb) between borehole Nos.CSML-105 (in the

west) and borehole No MSM-65 (in the East). While, in the southern part (in Southern

limb side) this seam record very low thickness in the range 0.50m to 0.40m in between

bore hole No CSML-7 (in the west) to borehole No CSML-106 (in the east) respectively

4.3.6 SEAM-VII BOTTOM

The maximum thickness of the seam in borehole No.CSML-71 is 2.61m in the west

central part of the block and the minimum thickness is 0.05m in borehole No.CSML-38

in the northeastern part of the block. Grade of coal varies from G to A. Average grade is

C. Reserve estimation is done for Seam VIIB for more than 0.50m thickness range,

irrespective of grade up to E, as desired by mine planners.



However, un-economic zone with low thickness <0.50m is seen in the eastern side

of the block area between BH No CSML-76 (in the north) and BH No CSML-31 (in the

east). Also in the north-western part, two small patches of un-economic zones are

observed near BH Nos (i) CSML-92 & 104 and (ii) near BH No CSML-97. The un-

economic zone is also observed in south-eastern corner near B.H. Nos CSML-

15,22,106 &110.

Further near borehole No CSML-102(south-eastern part) non-development zone is

also seen flanked by un-economic zone.

4.3.7 SEAM-VI TOP

The maximum thickness of the seam in borehole No.CSML-82 is 2.26m in western

part of the block and the minimum thickness is 0.11m in borehole No.CSML-75 in the

north-eastern part of the block. Grade of coal is un-graded to A. Average grade is D.

Hence reserve estimation is done for Seam VIT for the small patch of thickness more

than 0.50m irrespective of grade up to E, as desired by mine planners.

4.3.8 SEAM-VI BOTTOM

The maximum thickness of the seam in borehole No CSML-8 is 2.35m in the east

central part of the block and the minimum thickness is 0.06m in borehole No.CSML-15

in the southeastern part of the block. Grade of coal is G-B. Average grade is D. Hence

reserve estimation is done for Seam VIB for the small patch of thickness more than

0.50m irrespective of grade up to E as desired by mine planners.

4.3.9 SEAM-V

Seam V is the bottom most and 9th coal seam from the surface, within the Barakar

Formation in the block.

No splitting in this seam is observed in the block area. Minimum parting in respect to

Seam VIB is 5.65m (CSML-31) whereas the maximum parting is 24.00m (CSML-62).

The maximum thickness of the seam in borehole No CSML-4 is 1.0m in the southern

part of the block and the minimum thickness is 0.05m in borehole No CSML-31 in the

eastern part of the block. Although, the seam is encountered in almost all the boreholes

(66 Nos.) yet with very low un-workable thickness (<0.50m) in the entire block area,

hence Seam V is not considered for reserve estimation.



5.2 MINE BOUNDARIES

1. Horizontal Mine Boundary (with justifications)

East –: Along the Geological Block Boundary which is a line passing 200m north

of borehole Nos. CSML-65, MSM-65, CSML-31, 19, 20 and 41

West- Along the Geological Block Boundary

North- Along the Geological Block Boundary which is a line passing 200m north of borehole Nos. CSML-99, 100, 95, 97, 98, 104, 105, 58, 67, 76 and 66.

South- Along the Geological Block Boundary which is a Fault line F2-F2. The area beyond boundary of the South side is not explored.

5.1 MINEABLE RESERVES

The mineable reserves have been estimated by Iso-chore method from the seam

extent plans of different seams given vide drawing No. RV/MIN/X00595-600. The

estimation of reserves is based on a minimum mineable seam thickness of 0.5 m.

A geological loss of 10% and a mining loss of 10% have been considered in the

estimation of mineable reserves. The volume of OBR has been estimated by iso-parting

method from the iso-parting plans given vide drg. no. RV/MOC/X00482 - X00485.

The mining loss of 10% deducted from the mineable reserves has been added to the

total volume of OBR. The total volume of Excavation including Coal & OBR has been

calculated from total iso-excavation plan given vide drawing No RV/MIN/X00608. The

quarry cross-sections have been given vide drawing No. RV/MIN/X00609.

The reserves have been estimated by dividing the whole mine into ten sectors.

5.2 SECTOR & SEAM WISE MINEABLE RESERVES

Seamwise mineable reserves has been tabulated below :- MINEABLE RESERVES (Mt)

SECTOR VIII T VIII Comb/mid VIII B VII B VI T VI B TOTAL

SEC-1 0.53 1.95 1.78 1.23 0.30 0.40 6.18

SEC-2 0.24 2.28 1.87 1.27 0.56 0.41 6.63

SEC-3 0.38 2.21 1.82 1.66 0.97 0.57 7.61

SEC-4 0.22 1.08 0.86 1.25 0.46 0.33 4.20

SEC-5 0.26 1.36 1.22 1.01 0.21 0.40 4.46

SEC-6 0.02 2.30 1.29 0.87 0.27 0.49 5.24

SEC-7 0.16 3.32 1.49 1.19 0.26 0.66 7.09

SEC-8 0.49 2.81 1.19 0.85 0.11 0.77 6.21

SEC-9 0.28 2.22 0.90 0.44 0.08 0.53 4.44

SEC-10 0.30 2.65 1.22 0.42 0.06 0.82 5.48

TOTAL 2.87 22.17 13.64 10.20 3.28 5.38 57.54


Job No.- 518221 Page – ES 10

VOLUME OF OB (Mcum)

SECTOR TOP OB

VIII COMB-VIII M

VIII M-VIII B

VIII B-VII B

VII B-VI T

VI T-VI B

TOTAL

SEC-1 29.67 0.44 4.86 26.20 7.10 2.09 70.35

SEC-2 29.61 0.32 2.89 26.97 8.53 3.07 71.38

SEC-3 40.10 0.54 4.62 36.05 12.38 5.53 99.20

SEC-4 25.87 0.33 2.92 23.72 9.94 2.30 65.08

SEC-5 28.15 0.26 2.90 26.63 9.28 2.22 69.42

SEC-6 26.94 0.18 3.43 26.69 7.27 2.26 66.77

SEC-7 37.39 0.35 6.03 35.94 11.79 2.77 94.27

SEC-8 39.28 0.59 6.01 31.47 15.02 1.93 94.29

SEC-9 34.32 0.37 4.39 23.12 10.80 2.27 75.26

SEC-10 32.18 0.38 4.88 29.50 13.96 6.08 86.97

TOTAL 323.51 3.74 42.91 286.29 106.04 30.51 793.00

5.3 TARGET OUTPUT & MINE LIFE

The mine is proposed for nominal production 3.0 Mty and peak production of 3.75

Mty is considered as 1.25 times more than normal production. This peak production

may not be maintained on a sustainable basis.

Mine Life The mine life for nominal production is 23 years. The break-up is as under:

Construction period - 1 year

Production build-up period - 5 years

Production period - 16 years

Tapering period - 1 year

Total period - 23 years

6.1 METHOD OF MINING

Conventional Shovel-Dumper system of mining will be used for OB removal and

Surface Miner for mining out Coal.

6.2 MINE PARAMETERS

Sl No. PARTICULARS Unit Value

1 Maximum width along strike

- at surface km 3.40

- at floor km 2.84

2 Maximum length along dip

- at surface m 3490

- at floor m 3210

3 Maximum depth m 165


Job No.- 518221 Page – ES 11

Sl No. PARTICULARS Unit Value

4 Minimum depth m 100

5 Area of excavation

- at surface Ha 904

- at floor Ha 692

6 Mineable reserves (Mt) 57.54

7 Total OB (Mcum) 793.00

8 Average Stripping Ratio (cum/t) 13.78

6.3 EQUIPMENT SELECTION

The removal of OB and coal winning will be done by leased equipment. HEMM

have to be provided as per the work load of coal and OBR in different horizons

indicated in calendar programme of excavation.

Overburden will need to be prepared for excavation by carrying out drilling and

blasting operations. The dozers will be used for deployment in the OB & coal benches

and dump yards.

Coal will be won by Surface Miner. No drilling & blasting will be required for

preparation of coal. For coal loading and transport FE Loaders & Dump Trucks will be

deployed.

7.1 MINING STRATEGY / MINING SEQUENCE

The mine would start producing from 2nd year of quarry operation. However, the

bottom most seam i.e. seam VI bottom would be mined in 3rd year by grading properly

the access trench and making its width 30 m wide. The access trench is to be graded at

less than 6.25% to the mine floor of about 410 m R.L.

The box cut is developed in such a manner so as to facilitate the proper

drainage of water towards the sump. This would also facilitate extension of coal and OB

bench for full development of mine. After creation of sufficient decoaled area, internal

backfilling of OB will be started in the 4th year.

The coal production will continue from the 2nd year of mine life and the target coal

production of 3.0 Mty will be achieved in the 6th year. The target OB removal will be

achieved in the 7th year of mine operation.


Job No.- 518221 Page – ES 12

7.2 DUMPING STRATEGY

In the initial years OB quantities will go to the external dumps inside the excavation

area. Internal dumping will start from the 4th year onwards. The parting OB in case of

older seams may be transported through central haul road, while mining in the multi

seam zone.

Initially, the soil/alluvium from top bench of OB will be stacked and stored

separately. The spoil dump benches in the internally backfilled OB will be in the form of

benches. With the sufficient advance of coal production bench, the backfilled OB will be

leveled with dozer. Dumper/Tipper will transport soil/alluvium OB from the top OB bench

and will dump the soil directly on the leveled backfilled OB.

The slope stability study should be done. According to study report, the dump design

like dump bench height, total dump height & slope etc. should be modified to avoid

dump failure. In addition to that proper precautions should be taken to avoid sliding of

internal OB bench.

A 124.20 Mcum OB will be externally dumped within quarry area(50m beyond 12th

year position) from 2nd year to 10th year. From 13th year to 20th year the external dump

will be rehandled back as internal dump in the decoaled area.

Box cut and initial external OB are proposed to be dumped within quarry area to

keep the land requirement bare minimum. The OB so dumped is proposed to be

rehandled back to the internal dump. More agricultural land is required if external dump

is kept outside quarry area and there will be additional impact from environmental point

of view. Site of external dump has been proposed within the quarry boundary area

to save forest land as well as tenancy land beyond quarry excavation area.

In case of external dump, spoil bench height will be kept 45 m. The break-up of

OB quantity to be accommodated in various dumps is as follows:-

Dump OB accommodated in Mcum 1. Total dump 793.00 2. External dump (within) Quarry area 124.20


Job No.- 518221 Page – ES 13

8.1 ANNUAL PRODUCTIVITY OF HEMM

The PR has been formulated to win coal by Surface Miner & OB by Shovel Dumper

combination. For OB & coal year-wise lead has been estimated and based on that

average lead for OB removal & coal extraction is estimated to 3.0 Km & 4.0 Km

respectively.

Both winning of coal and extraction of OBR will be done through outsourcing. The

Annual productivity of outsourced HEMM will depends on the size of deployed HEMM.

8.2 CALENDAR PROGRAMME OF EXCAVATION

The summarised calendar programme of excavation is given in following table. The

mine will be advanced towards dip direction exposing the floor of VI (Bottom) Seam

along the sectors shown in the final stage quarry plan. The targeted level of the

production will be achieved in the 6th year. First year has been taken as the

construction period during which there will be no coal production. From 2th year

onwards coal production will be increased till 6th year to meet the targeted production of

3.0 Mty.

The peak natural volume of OB at targeted level of production has been estimated

as 50.84 Mcum/year. The mine will be operated with almost natural OB throughout the

life of the mine. No advance stripping of Top OB will be done.


Job No.- 518221 Page – ES 14

CALENDER PROGRAMME FOR MALACHUA OC (3.0 MTY)

YEAR TOTAL COAL

8T 8(COMB/MID)

8B 7B 6T 6B TOP OB

NATURAL TOP OB

PLANNED 8COMB-

8M 8M-8B 8B-7B 7B-6T 6T-6B

TOTAL OB NATURAL

TOTAL OB PLANNED

SR RE-

HAN- DLING

1 CONSTRUCTION PERIOD

2 0.20 0.02 0.06 0.06 0.04 0.01 0.01 0.96 0.98 0.01 0.16 0.85 0.23 0.07 2.28 2.30 11.50

3 0.50 0.04 0.16 0.14 0.10 0.02 0.03 2.40 2.41 0.04 0.39 2.12 0.57 0.17 5.69 5.70 11.63

4 1.00 0.08 0.32 0.29 0.20 0.05 0.06 4.80 4.81 0.07 0.79 4.24 1.15 0.34 11.39 11.40 11.40

5 2.00 0.17 0.63 0.58 0.40 0.10 0.13 9.60 9.55 0.14 1.57 8.47 2.30 0.67 22.75 22.70 11.29

6 3.00 0.23 0.96 0.86 0.59 0.16 0.19 14.22 14.21 0.20 2.18 12.62 3.51 1.08 33.81 33.80 11.30

7 3.00 0.11 1.03 0.84 0.57 0.26 0.19 13.40 13.49 0.14 1.31 12.21 3.86 1.39 32.31 32.40 10.80

8 3.00 0.11 1.03 0.84 0.57 0.26 0.19 13.40 13.39 0.14 1.31 12.21 3.86 1.39 32.31 32.30 10.77

9 3.00 0.15 0.88 0.72 0.65 0.38 0.22 15.71 15.67 0.21 1.80 14.13 4.84 2.15 38.84 38.80 12.93

10 3.00 0.15 0.87 0.72 0.66 0.38 0.22 15.80 15.81 0.21 1.82 14.20 4.88 2.18 39.09 39.10 13.03

11 3.00 0.15 0.83 0.68 0.76 0.36 0.23 16.94 16.91 0.22 1.93 15.37 5.82 1.95 42.23 42.20 14.02

12 3.00 0.16 0.77 0.62 0.89 0.32 0.24 18.50 18.50 0.23 2.08 16.97 7.08 1.64 46.50 46.50 15.50

13 3.00 0.18 0.92 0.82 0.68 0.14 0.27 18.95 19.02 0.17 1.95 17.92 6.25 1.49 46.73 46.80 15.55 15.50

14 3.00 0.09 1.13 0.78 0.58 0.15 0.27 17.04 17.01 0.14 1.96 16.49 5.12 1.38 42.13 42.10 14.03 15.50

15 3.00 0.01 1.32 0.74 0.50 0.16 0.28 15.41 15.42 0.10 1.96 15.27 4.16 1.29 38.19 38.20 12.69 15.50

16 3.00 0.06 1.39 0.65 0.50 0.12 0.28 15.74 15.69 0.14 2.43 15.22 4.82 1.20 39.55 39.50 13.17 15.50

17 3.00 0.07 1.40 0.63 0.51 0.11 0.28 15.82 15.83 0.15 2.55 15.21 4.99 1.17 39.89 39.90 13.30 15.50

18 3.00 0.14 1.38 0.61 0.46 0.09 0.32 17.18 17.15 0.21 2.70 15.21 5.96 1.07 42.33 42.30 14.10 15.50

19 3.00 0.24 1.36 0.57 0.41 0.05 0.37 18.98 19.01 0.29 2.90 15.21 7.26 0.93 45.57 45.60 15.20 15.50

20 3.00 0.22 1.41 0.59 0.37 0.05 0.37 20.49 20.53 0.27 2.93 15.35 7.27 1.15 47.46 47.50 15.78 15.70

21 3.00 0.19 1.50 0.61 0.30 0.05 0.36 23.18 23.14 0.25 2.97 15.62 7.29 1.53 50.84 50.80 16.88

22 3.00 0.17 1.46 0.66 0.24 0.04 0.44 18.30 18.28 0.21 2.71 16.09 7.60 3.11 48.02 48.00 15.95

23 2.84 0.16 1.37 0.64 0.22 0.03 0.43 16.70 16.68 0.20 2.53 15.30 7.24 3.15 45.12 45.10 15.82

Total 57.54 2.87 22.17 13.64 10.20 3.28 5.38 323.51 323.51 3.74 42.91 286.29 106.04 30.51 793.00 793.00 13.78 124.20


Job No.- 518221 Page – ES 15

8.3 DRILLING & BLASTING

OB will be loosened by drilling and blasting to facilitate their excavation. The actual

pattern for drilling and blasting will be decided after field trials. For secondary blasting

10% of additional explosives will be required for OB. SMS explosives should be used

wherever possible. The general pattern for drilling of blast holes will depend upon the

height of the bench and may be designed as follows: -

Height of bench - H

Burden (B) - H/2

Spacing (S) - B*1.25

The suggested drilling pattern is for average mining conditions. These may suitably

be modified during actual mining operations as per the site conditions.

The explosives consumption has been envisaged as 0.30 - 0.35 kg/cum of

excavation for planning purpose.

9.1 PROJECTED COAL QUALITY :

Seamwise, Gradewise ‘Net’ Proved Geological Reserves in Malachua O/C Block, Sohagpur Coalfield.

(Figures in million tonnes) Coal Seam

G R A D E Total

GCV (Kcal/Kg) A B C D E F G

VIIIT 0.0963 1.7661 1.6044 0.137 0.0579 3.6617 5315

VIIIT+M 0.2507 9.7408 12.801 2.1213 0.3733 0.134 25.421

VIIIM 0.3224 1.0422 0.4529 0.3609 2.1784 5377

VIIIB 6.2422 8.2404 2.0209 1.0468 0.1629 17.713 5268

VIIB 0.0015 3.4688 6.1068 2.9688 0.492 0.2153 0.3731 13.626 5549

VIT 0.0963 1.0748 1.3534 1.568 0.853 0.3244 0.005 5.2749 5087

VIB 0.0661 1.0612 2.5113 3.4554 0.649 0.1004 0.0698 7.9131 5413

TOTAL 0.1639 6.2742 28.763 31.091 6.6341 2.118 0.7448 75.789

%age 0.22 8.28 37.95 41.03 8.75 2.79 0.98 100

The average grade will be „D‟. Weighted average GCV has been estimated as 5358

kcal/Kg (G7 Band).


Job No.- 518221 Page – ES 16

10.0 WATER MANAGEMENT:

The maximum rainfall in a day is estimated as 148mm from probability curve and total

water collected in a day is estimated as 544451 cum. The number of pumps is estimated

on the basis of total water collected in a day which will be dewatered in 100 hours.

In this report, 7 nos. of 225 lps pumps with 180m head, 2 nos. of 80 lps pump with

100m head, have been provided. In addition to these pumps 2 nos. of diesel operated

pump, two numbers of submersible slurry pumps, 4nos.of priming pumps and 7Nos. of

face pumps have also been provided. Main Pumps will be installed on pontoon to work

efficiently. Main pumps will discharge water to Arar nala and Baskati Nala both ultimately

join Son River in Northeast direction through Musna Nala.

7km long 355.6mm diameter main pipes have been provided for the main pumps,

while 2km long of 273mm diameter and 2km of 219mm diameter pipes have been

provided for slurry, intermediate and diesel pumps.

11.0 COAL HANDLING PLANT AND DESPATCH:

Since the coal will be extracted by surface miners, no crushing arrangement have

been envisaged for this project. CHP has not been provided for any options. The coal will

be directly dispatched to Bhandhwapara Railway siding.

A railway siding has also been proposed for loading of coal to rail wagons nearby

Bhandhwapara Railway station which is around 7km from the project. Wharf wall and rail

weigh bridges shall be provided for loading and weighment of rail wagons nearby

Bhandhwapara Railway station.

2Nos. of truck weigh bridges near pit as well as 1 truck weigh bridge and 1 no.

railway bridge shall be provided over the Railway siding.

12.0 POWER SUPPLY, ILLUMINATION AND COMMUNICATION

The main source of 33 kV power (on DCDS overhead line) for Malachua OCP Project

has been envisaged from 132/33 kV MPEB Substation located at Sahadol at distance of

15 km (approx).


Job No.- 518221 Page – ES 17

A surface substation with installed capacity of 2 x 3000 kVA, 33/6.6 kV

has been proposed for feeding pumps, E&M workshop and illumination loads.The

maximum demand and specific energy is 2510 kVA and 3.45 kwh/te respectively.

The following communication facilities have been envisaged for Opencast Project: -

- Administrative communication with voice & data networking

- Mobile communication

- Point to point / multi point radio system

- Lan & internet facility

- Truck dispatching system

13.0 WORK SHOP AND STORES:

A small Unit workshop to cater the maintenance of pumps, power supply

arrangement etc. have been provided along with small store and with Scrap yard in

which coal and OB will be outsourcing.

14.0 CIVIL CONSTRUCTION

The preparation of cost estimates for civil infrastructure is based on prevailing cost

index of the area. The cost index value has been calculated from the market rate of the

area. Considering the prevailing rates of materials and labour in that Area, the cost index

works out to as shown in Appendix- A.2.3 w.r.t. 100 base in Delhi as on 1.10.1976.

The details of capital provision for service buildings, residential buildings, roads and

culverts and water supply & sewerage have been given in Appendix-A.2.1, A.2.2, A.8.2

and A.8.3 respectively.

15.0 SAFETY ASPECTS FOR OUTSOURCING / HIRING OF HEMM / EQUIPMENT

Outside agency deploying HEMM or any equipment in the mine for excavation of

coal shall plan their activities in confirmation with the prevailing statutory provisions as

per Mines Act 1952 and CMR 1957 applicable for safety in opencast mines. However, all

statutory rules, regulations, applicable laws etc. and statutory requirement related to

Govt. licenses, workers compensation, insurance, etc., including minimum wage act for

workers employed by the outside agency shall have to be adhered to.


Job No.- 518221 Page – ES 18

Rules, if any imposed by local / state / central authorities should also be complied by

leaser of HEMM / equipment and then shall have to supply various protective equipment

viz., helmet, shoes etc. to the workmen at their cost.

All the regulations and schedules of Coal Mines Regulations 1957 relating to

opencast mining have to be adhered to and implemented in order to maintain day to day

safety precautions as per stature.

16.0 Environment Management System

Environment Management System involves two factors:

i) The protective measures to be taken and system to be developed to avoid and

control the pollution during the operation of the mine itself and also for the other

operations related to the mine as well as after closer of the mine.

ii) To comply with the above protective measures and to implement the systems the

capital and revenue provisions involved.

The capital provision made for environment protection; land reclamation measures

and other revenue cost per annum on environmental obligations are to be given.

17.0 LAND REQUIREMENT

The break-up of land to be acquired for the purpose of this report is as follows: -

Area(Ha)

SL. NO.

REQUIREMENT OF LAND

LAND TO BE ACQUIRED

AGRICULTURE LAND

FOREST LAND

GRAZING LAND

WASTE LAND

SURFACE WATER BODY

TOTAL

1 LAND FOR QUARRY 592.21 115.60 26.76 149.68 19.75 904.00

2

SURFACE INFRASTRUCTURE, COLONY,APPROACH ROAD, ETC.

30.00 30.00

3 LAND FOR HOMESTEAD/FAMILY

32.18 32.18

4 SAFETY ZONE 65.64 8.89 13.59 2.84 90.96

5 TOTAL LAND TO BE

ACQUIRED 720.03 115.60 35.65 163.27 22.60 1057.14


Job No.- 518221 Page – ES 19

The estimated capital requirement for land acquisition of the quarry has been given in

Appendix-A.1.

18.0 MINE CLOSURE ACTIVITIES & TENTATIVE COST BREAK-UP:

The break-up of some major mine closure activities along with their tentative

estimation of cost in terms of percentages of mine closure cost (stage wise) has been

indicated in Chapter-18. The detailed activity schedule for the „Final Mine Closure Plan‟

would be prepared five years before the intended final closure of the mine along with the

detailed mine closure cost break-up.

Environmental monitoring for three years after closure of mine will be carried out to

evaluate the environmental quality of the area. If needed, proper mitigation measures will

be taken up after evaluating the environmental quality. The funds for this have been

provided in the cost estimate. Before closure of the mine, Area GM will make

arrangement to prepare survey and disposal report and the same will be submitted to

DGMS for acceptance.

19.0 MANPOWER ASSESSMENT

The requirement of manpower at the rated capacity of 3.0 Mt of coal and 50.84 mcum

of peak OB per year has been estimated as 224 numbers resulting in an overall OMS of

49.54t. While estimating the total manpower an additional provision of 15.5% has been

made for leave and sick considering 330 days working.

20.0 PROJECT CONSTRUCTION / IMPLEMENTATION

It is well known fact that for timely implementation of a project, it is essential

that all the activities related with project construction are properly planned, closely

monitored and effectively supervised. All implementing departments have their own

implementation manuals which are followed for monitoring and construction of the

project, so that, man, materials and money are made available to the project in time as

spelt in the project report, with a view to prevent cost and time over-run.

Responsibility for each executive has also been included in the implementation

manual to prevent one from encroaching other's area. Sufficient administrative and

financial power has been defined for key executives to take timely and effective decisions

for the implementation of the project.


Job No.- 518221 Page – ES 20

All the basic infrastructures like power, township, industrial area, including

stores, workshop, project office etc. are to be developed and provided as per time

schedule.

21.1 OUTSOURCING

Outsourcing has become increasingly attractive for many organizations in recent past.

Businesses irrespective of its size, skill, knowledge and technology are finding

outsourcing mechanism most befitting in terms of cost reduction as well as quality

improvement .With globalization and removal of barriers, outsourcing has created new

opportunities for generation of employment. Today whether it is a canteen services or

security services or courier services or gardening, is no longer one man providing service

to one organization. These are just examples and we can go on listing them but

essentially they are contractor or organizations which provide a specialized service at a

competitive price. The service itself is much better than what an entrepreneur if he

engages workmen on his roll would be able to provide. Further, the quality of the service

is much better and it leaves the entrepreneur to concentrate on its core activity.

Outsourcing will remain in the four front of every business executive mind as a

business strategy that will let their organization to create and sustain business value in

the competitive global market for reduced cost, focus on core business processes,

improve services, enhance skills, and increase competitive advantages.

Growth in outsourcing is expanding to include not only IT functions, but critical

business processes, as well as evolving application areas like enterprise resource

planning and re-business initiatives. Successful companies are incorporating outsourcing

as a key strategy for growth and differentiation. No longer considered merely a tactic for

cutting costs and adding temporary staff, outsourcing is being accepted in board rooms

around the world as a critical success factor for business survival. We need to give as

much attention to managing processes as we have in the past to managing products.

For years, outsourcing was more a matter of “out asking” – hiring outside vendors to

perform specific jobs or manage specific projects within a department of a large

organization. Many things that are done inside the companies are labour intensive.

Those are the kind of work where human being have to intervene in a process and use

decision – making skills – such as interpretation, validation, translation, transliteration or

transformation.


Job No.- 518221 Page – ES 21

21.2 SCOPE OF WORK PROPOSED TO BE OUTSOURCED

i) Drilling :-

The external agency will prepare the site and carry out blast hoe drilling as per the

pattern decided by the project authorities according to strata conditions and stipulations

of DGMS

ii) Loading and Transportation of coal:-

The work involves loading and transportation of coal to dumping site as per

guidelines of the project authorities or otherwise to suit local conditions. All activities

involving the loading and transportation have been proposed to be done by outside

agencies. All statutory rules , regulation and applicable laws are to be followed including

those related to Govt. licenses , workmen compensation , insurance etc. by the agency to

whom the job has been awarded. Coal has to be transported to and from the site as

decided by the project authorities from time to time in accordance with the requirement of

the project.

iii) OB Removal :-

The work involves excavation of OB and dumping of the same to different dump

locations. This includes construction and maintenance of haul roads for plying of

dumpers/tippers with suitable number of graders and dozers. The leveling of the dumps

is to be carried out by the agency to which the work has been awarded for OB removal.

The site of excavation and dumping is to be decided by the project authorities in

accordance with the requirement of the project. All statutory rules , regulation and

applicable laws are to be followed including those related to Govt. licenses , workmen

compensation , insurance etc. by the agency to whom the job has been awarded.

iv) Accommodation, Site Office, Electricity etc.

Site office may be provided by the company on availability basis, which will be

chargeable. However regarding accommodation and other facilities to persons engaged

by the outside agency has to be arranged by the agency at their own cost.

Electricity to the site office may be provided on chargeable basis. However, electricity

shall not be provided by the company for the equipment to be deployed for excavation

etc. by the external agency.

21.4 ANNUAL WORK LOAD FOR EXTERNAL AGENCY

The annual workload will be as per the calendar programme. Total Coal and OB will

be outsourced.


Job No.- 518221 Page – ES 22

21.5 BASIS OF CALCULATION OF OUTSOURCING RATES

The rates have been considered based on the prevailing rates at the mines plus

escalation rates table received from SECL. These rates have been considered for

planning purpose only to work out economic evaluation.

Outsourcing cost of OB is determined by escalating the hiring cost prevailed in the

mine itself or the nearest adjacent mine. Generally the cost is escalated from the base

date to as on date in three following heads;

h) Loading of OB

ii) Effect of change in diesel price on transportation

iii) Effect of change in lead on transportation

New rate as on date is arrived by adding all the escalations with the prevailing rate after

making adjustments with respect to taxes which is shown in the following table.

HIRING RATE FOR OB Rate in Rs.

Sl.no. Particulars Base Date

Base Price

of Diesel

Current Price

of Diesel

Escalation due to

change in diesel price

Base Lead, Km

New Lead, Km

Base rate of

hiring of

OB Per

cum*

Old Taxes

%

New Taxes

%

New rate

as on date

1 Loading of OB 18.10.2013 58.94 52.2 -1.69 - -

43.00 12.36 0 47.24

2

Transportation Excalation due to change in diesel price

18.10.2013 58.94 52.2 -0.77

1.03 3.0

3

Transportation Excalation due to change in lead

18.10.2013 58.94 52.2 11.43

RATE OF HIRING OF OB PER CUM (Say) 47

* Base rate is at Dhanpuri OC mine @Rs.43 for a lead of 1.03 Km dated 18.10.2013

Outsourcing rate of coal is also determined as above illustrated methodology with an

additional parameter of „cutting by Surface Miner‟ as coal is extracted by surface miner


Job No.- 518221 Page – ES 23

instead of Drilling & Blasting. However, in special circumstance drilling & blasting in coal

may be done with prior approval of competent authority.

HIRING RATE FOR COAL Rate in Rs.

Sl. No.

Particulars Base Date

Base Price of Diesel

Current Price of Diesel

Base Rate Escalation

due to change in

diesel price

Base Lead, Km

New Lead, Km

Old Taxes

%

New Taxes

%

New rate as

on date per

ton

Per cum*

Per tonne

1 Cutting by Surface Miner

June 2014

60.35 52.2 36.85 23.03 -3.18 12.36 17.32

2 Loading of coal** Nov 2013

58.76 52.2

14.35 -0.43 0.00 13.92

3

Transportation Excalation due to change in diesel price **

Nov 2013

58.76 52.2

44.73

-1.75

4.0 4.0 0.00 42.98

4 Transportation Excalation due to change in lead**

Nov 2013

58.76 52.2 0.00

RATE OF HIRING OF COAL PER TONNE 74.30

* Base rate is as per Baroud OC, the nearest prevailed mine @ Rs. 36.85/cum dated June 2014 ** As per Normative rates for transportation & loading applicable to Ex-servicemen Agencies working in SECL

Thus Outsourcing cost of OB and Coal has been considered as Rs. 47/cum

and Rs. 74.30/t respectively. The above outsourcing rates does not included

component of service tax as CENVAT credit is available against it.

The scope of work by outsourcing will include drilling, loading and transportation,

dozing and maintenance of haul roads. All statutory rules, regulations and applicable

laws are to be followed.

21.6 SAFETY ASPECTS FOR OUTSOURCING OF HEMM

Outside agency deploying HEMM or any equipment in the mine for excavation of coal

shall plan their activities in confirmation with the prevailing statutory provisions as per

Mines Act 1952 and CMR 1957 applicable for safety in opencast mines. However, all

statutory rules, regulations, applicable laws etc. and statutory requirement related to

Govt. licenses, workers compensation, insurance, etc., including minimum wage act for

workers employed by the outside agency shall have to be adhered to.

Rules if any imposed by local / state / central authorities should also be complied by

leaser of HEMM / equipment and then shall have to supply various protective equipment

viz., helmet, shoes etc. to the workmen at their cost.


Job No.- 518221 Page – ES 24

All the regulations and schedules of Coal Mines Regulations 1957 relating to

opencast mining have to be adhered to and implemented in order to maintain day to day

safety precautions as per stature.

Special precaution should be taken while deploying workers in the mine. Before

employing any worker to the mine proper vocation training should be imparted and

recommendations of VIII Safety Conference should be strictly followed. Terms and

conditions shall be fixed by management for deployment of workers by outside agency.

Some of the major aspects are as follows: -

A) For Persons :

i) No persons shall be deployed unless he is trained at VTC.

ii) Records in Form-B, Form-D shall be maintained.

iii) Records of Vocational Training Certificate and driving license of operators shall be

kept by HEMM outsourcing agency and shall be made readily available for inspection by

management.

iv) Salaries shall be distributed in front of management representative.

v) No person shall be employed unless person holds VTC certificate and management is

informed. A record of it shall be maintained.

vi) Adequate supervision shall be maintained by qualified competent persons.

vii) Outside agency shall follow safety guidelines and safety instructions from project

authorities.

B) For Machineries as recommended by DGMS Cir. (Tech.) 1 of 1999 :

i) All the machineries to be deployed in mines should be checked before deployment

by competent authority.

ii) Regular checking of m/c deployed by outside agency shall be done. No unfit

machine shall be deployed before the defect is rectified.

iii) A proper record of repair and maintenance along with inspection done by

management and defect pointed out shall be maintained and signed by authorized

person.


Job No.- 518221 Page – ES 25

iv) The trucks deployed outside agency shall be provided with audio visual alarms,

proper light for use at night and period when natural light is not sufficient. Also

audiovisual alarms for reversing on trucks shall be provided.

Other precautions for machines

i) RTO certificate photocopies of all vehicles shall be submitted to management.

ii) Daily welding, monitoring, inspection shall be done by the agency‟s mechanic as

directed by management.

iii) Machine manufacturers should be asked to give risk analysis details in respect of

machines deployed by outside agencies.

iv) Suitable type of the fire extinguishers shall be provided in every machine.

C) General :

i) No person / vehicle shall be deployed at any place other than authorized place.

ii) All workers should obey lawful instruction of mine management.

iii) Risk Management Plan of tipper / pay loader shall be made and implemented.

iv) All drivers shall obey systematic traffics rules prepared by management.

v) Before deploying workers, they must be trained and briefed about safety aspects in

opencast mine. However, during course of execution of the work, if any accident occurs

whether major or minor, the matter shall have to be immediately informed to mine

management i.e. Colliery Manager / Agent / GM of Area, so that, notices of accidents in

accordance of (Reg.9 of CMR 1957) and Section 23 of Mines Act 1952 may be given and

other necessary steps may be taken in accordance with the Mines Act 1952.

vi) Outside Agency shall operate transport system in such a way so as to minimize

pollution in the mine.

21.7 CAPITAL INVESTMENT

21.7.1 Capital with phasing

Table No-1

Phasing of capital (Rs. In lakhs)

1st 2nd 3rd 4th 5th 6th 7th Total

capital

2224.93 4345.97 7960.56 6980.37 22369.98 3685.35 5260.45 52827.61


Job No.- 518221 Page – ES 26

21.7.2 Basis of price of P&M, Civil works & hiring rate

Price of P&M has been taken from the latest standard price list published by CMPDI,

HQ. Prices have been updated as per escalation rate given in the price list.



area. Considering the prevailing rates of materials and labour in the Area, the cost index


21.7.4 Capital Investment

Table No.-2

Sl. No. Particulars Investment

a) Capital upto target year, Crores 475.67

b) Specific investment (Rs. per tonne) 1760.92

c) Specific investment for P&M (Rs.per tonne) 355.72

d) Completion Capital, Crores 500.34

21.8 REPLACEMENT CAPITAL

Year-wise phasing of replacement capital is given in Appendix-D.1 column No.3.

Item-wise head-wise replacement is also given separately in an appendix.

21.9 SOURCES OF FINANCE

The project will be financed completely by internal resources.

21.10 COMPLETION COST

As per the latest guidelines, the completion cost of a project will qualify all the

following conditions:

- Achievement of coal production capacity of 80% of the rated output.

- Completion of all major facilities and initial mine development work.

- Procurement of major and essential plant & machinery.

Completion cost of the project is estimated as shown in the above table .

21.11 METHOD OF ESTIMATION OF CAPITAL COST: a) Land

Rate of revenue, forest and tenancy land are provided by SECL.

b) Civil Construction (alongwith Cost Index)




Job No.- 518221 Page – ES 27

area. Considering the prevailing rates of materials and labour in the Area, the cost index


c) P&M

Price of P&M has been taken from the latest standard price list published by CMPDI,

HQ. Prices have been updated as per escalation rate given in the price list.

21.12 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. Estimated salaries & wages cost is given

in the following table No. 3.

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 as shown in the following table No.3.

c) Power Cost

Estimated Energy Consumption is given in the relevant chapter for Power Supply.

The power cost has been taken as Rs.6.0/unit. The average power cost per tonne of coal

production works out to as shown in the following table No. 3 at 100% level of operation.

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 Workshop Debit,

and Insurance & Taxes for vehicles and other repairs and a further provision has been

made for deterioration of coal stock. Miscellaneous expenditure per tonne works out to as

shown in the following table No. 3.

e) Administrative Charges

A provision has been made in total revenue cost estimate for Administrative charges

based on the Admn. Cost per tonne of coal production as was appearing in the last

Annual Report of Coal India Ltd. Total Admn. Cost has been calculated at 100% level

and treated as fixed cost. As such for all other estimated level of operation the absolute

Admn. cost has been taken as it worked out for 100% level of operation. The Admn. Cost

comes to as shown in the following table No.3.


Job No.- 518221 Page – ES 28

f) Outsourcing cost

Prevailing hiring rate at SECL has been considered. The outsourcing cost of OB and

Coal per tonne at an average lead is as shown in the following table No. 3.

g) Interest on Working Capital

Interest on Working Capital has been calculated on the basis of 4 months operating

expenditure. Rate of interest is taken as 14.50%.

h) Interest on Loan Capital

Interest @ 11.5% on loan capital is to be considered for computation based on given

Debt Equity Mix. However, loan capital in this project is NIL.

i) Mine Closure Cost

Mine Closure Cost as shown in the following table No.3 has been provided in the

project.

j) Depreciation

Straight line method of depreciation has been provided to arrive at Depreciation cost

per tonne of coal production as shown in the following table No. 3

k) Cost of production per tonne at 100% level of production works out to as shown below.

Table No.-3

Sl. No.

Particulars Total Cost

(Rs./t)

a) Salaries,Wages & Benefits 62.79

b) Stores 147.53

c) Power 14.73

d) Misc. exp. incl.w/s debits 192.51

e) Admn. Charges 64.00

f) OB Outsourcing cost 647.74

Coal Outsourcing cost 74.30

g) Int. on wkg. cap @ 14.5% 62.40

h) Int. on loan cap @ 11.50% 0.00

i) Mine Closure Cost 27.79

j) Depreciation 59.74

k) Total Cost 1353.53

l) Environment related Cost 61.98

k) Environment related Cost Environmental related Cost as shown in the above table No.3 has been provided to

absorb in the project.


Job No.- 518221 Page – ES 29

l) Grade of Coal (Weighted Average) – Grade G-7 , weighted average GCV has

been estimated as 5358 kcal/Kg.

22.13 CALCULATION OF SELLING PRICE

Table No.-4

Sl. No. Particulars

Price (Rs./t)

a) Price as per GCV coal 1400.00

b) Price taken in PR, coal * 1330.00

c) Sizing (-100 mm) 79.00

d) Transport reimbursemet, if any 116.00

e) Total sale price 1525.00

*95% of the grade based on borehole data as per norms.

21.14 Profitability (Profit/Loss) Rs./t - This is margin between cost of production and

selling price per tonne of coal. Specific figure for this project has been tabulated in table

No. 5.

21.15 Manpower - This is the summation of total manshifts employed in various

activities for the operation of the Project. Specific figure for this project has been

tabulated in table No. 5.

OMS - Output per manshift shows the productivity of workers in the Project. It is

defined as the ratio of total coal produced to the total no. of manshift worked during

project life. Specific figure for this project has been tabulated in table No. 5.

21.16 EMS - It shows the cost of labour per manshift required to produce coal. Specific

figure for this project has been tabulated in table No. 5.

21.17 Financial IRR – IRR, Internal Rate of Return, a rate at which NPV (net present

value) becomes zero. This means it is a measurement at which cash outflow is equal to

cash inflow. Specific figure for this project has been tabulated in table No. 5.

21.18 BREAK-EVEN PRODUCTION

Break even production is a point at which total cost is equal to total revenue or where no

profit and loss occures. In other words it is an point at which total fixed cost is equal to

total contribution i.e(Sales Price-Variable Cost)= Fixed Cost. Specific figure for this

project has been tabulated in table No. 5.


Job No.- 518221 Page – ES 30

21.19 Desired Selling Price: Desired selling price to achieve 12% IRR at 100%

& 85 % level is worked to as shown below.

Table No.-5

Sl.No. Particulars 100% Utilisation 85% Utilisation

1 Profitability, Rs/t 171.47 117.44

2 Financial IRR 22.24% 12.23%

3 Desired Selling Price, Rs./t 1423.72 1506.41

4 Manpower, No 224.00

5 OMS, t 48.72

6 EMS, Rs. 3058.92

7 Breakeven

Percentage 64.10

capacity, tonne 1.92

21.20 Completion IRR: Capital Expenditure has been estimated / increased for forward

escalation on the Phasing of Initial Estimated Capital. The escalation rate is based on

W.P.I. of preceding 12 months.

21.21 Sensitivity Analysis - given in the Appendix-C.4.

21.22 CONCLUSION

The project has been planned with a high degree of mechanisation, in line with the

present and forthcoming changes in neighbouring mines as well as in other parts of the

country. The techno-economics have been worked out based on the prevalent norms of

productivity, operating cost, spare consumption etc.

As per the guidelines, a Project is economically viable when it achieves more than

12% IRR at 85% level of Production. As this Option is yielding IRR OF 12.23% at 85%

level of production, the same may be recommended for implementation.

*******

Date post:	29-Jun-2018
Category:	Documents
Upload:	hoangdan
View:	215 times
Download:	0 times

PR for Malachua OCP (3.0 Mty) (Updated April CMPDI...

Documents