RECAST PROJECT REPORT FOR TAWA-III U/G MINE EXECUTIVE … · Presently Tawa-II U/G Mine is an...

RECAST PROJECT REPORT FOR TAWA-III U/G MINE (MARCH 2018) CMPDI

Job No. 4101874 Page - 1 Executive Summary

RECAST PROJECT REPORT FOR TAWA-III U/G MINE

EXECUTIVE SUMMARY

1.0 INTRODUCTION 1.1 HISTORY OF MINING

The exploration in Tawa Extension Geological block was started in July’90 in the north eastern side of Tawa River. Project Report for Tawa-II U/G Mine was prepared by CMPDI, RI-IV, Nagpur in 1995 in part area of Tawa Extension Geological Block. However, this report was kept in abeyance as per the decision taken by WCL Board in its 158th meeting held on 11.03.2000. Meanwhile, exploration in Tawa Extension Block continued upto July 1997 and Geological Report for Tawa Extension Block was prepared by CMPDI, RI-IV, Nagpur in December 1999.

Subsequently, P.R. for Tawa-II U/G Mine (Recast) was prepared by CMPDI, Nagpur in November 2003 and was approved by WCL Board in 181st meeting held on 17.03.2004 for a capital investment of Rs. 36.43 crores including WDV of existing assets of Rs. 4.4464 crores and for a target capacity of 0.39 Mty. Presently Tawa-II U/G Mine is an operating mine which has started production from 2006-07 and it had produced 0.48048 Mty in year 2016-17.

The total area of Tawa Extension Geological Block has been divided into 10 sectors on the basis of faults of different magnitudes and these sectors are IA, IB, IC, II, IIIA, IIIB, IVA, IVB, IVC and IVD. Out of these ten sectors of Tawa Extension Geological Block, five sectors namely IIIB, IVA, IVB, IVC and IVD lying on the north side of Fault F3 - F3 and Dyke are not included in the Mine Boundary of existing Tawa-II U/G Mine.

1.2 JUSTIFICATION FOR PREPARATION OF PROJECT REPORT

Some of the underground mines of Pathakhera Area namely Pathakhera U/G Mine-1, Pathakhera U/G Mine-2, Satpura U/G Mine etc are closed due to complete exhaustion of coal reserves of these mines. To meet the demand of coal for Pithead Satpura Thermal Power Station, it has become essential to enhance the production either by opening of new mines or by expansion of existing underground mines in Pathakhera Area. Moreover, the manpower of the already closed or closing underground mines will have to be deployed elsewhere for their gainful utilization.

Subsequently, WCL vide letter no. WCL/C-1 (E)/GM(P&P)/09/1084 dtd. 09.10.2009 requested RI-IV, CMPDIL to take up the preparation of Project Report for Tawa-III U/G Mine in the explored block, adjacent to the existing boundary of Tawa-II U/G Mine by underground mining.



Hence, it was decided to open Tawa-III U/G Mine to reduce the gap of demand and supply of coal from Pathakhera Area and for gainful utilization of surplus manpower from the closing underground mines of the Pathakhera Area. Accordingly, Draft Project Report for Tawa-III U/G Mine was planned to work the remaining sectors of Tawa Extension Geological Block lying on the north side of Fault F3- F3 and Dyke (Virgin Patch) which were not included in existing Tawa-II U/G Mine. The Draft Project Report for Tawa-III U/G Mine was prepared in February 2010 and was presented at CMPDI (HQ), Ranchi on 14.03.2010 for obtaining guidance before finalization of the report. CMPDI (HQ) mainly suggested the following changes to be made in the Final P.R.

1. To increase the target capacity from planned target of 0.36 Mty (1200

tpd) in the Draft P.R. to 0.48 Mty (1600 tpd) in the Final P.R by deploying 8 LHDs in 3 panels (2 Strike Panels and 1 Main Dip Panel).

2. It was decided in the meeting to plan the mine with 7 headings panel

with 3 LHDs and 3 UDMs in each panel.

3. It was also decided to plan the cross-section of proposed inclines as 5.5m x 3.5m and the diameter of proposed airshaft as 5.5m.

The Planning Committee Meeting for the Draft Project Report for Tawa-III U/G Mine was held at WCL (HQ) on 31.03.2010. After detailed discussions in WCL (HQ), Planning Committee of WCL agreed to increase the Target Capacity from 0.36 Mty to 0.48 Mty with 7 headings in each panel.

Based on the suggestions received from CMPDI (HQ) and WCL (HQ), Final Project Report for Tawa-III U/G Mine, Pathakhera Area, WCL was prepared and submitted to WCL by RI-IV, CMPDI in May 2010, which envisaged only Departmental Option with a target capacity of 0.48 Mty operating 8 Nos. of LHDs in 3 panels.

The Financial Analysis of Project Report for Tawa-III U/G Mine suggested that the Project was yielding a negative IRR at 100% and 85% Target Capacity. In view of the above, the Project was recommended for approval, subject to a viable Fuel Supply Agreement with a Customer on Cost Plus Basis.

1.3 APPROVAL OF PROJECT REPORT BY COMPETENT AUTHORITY

The above report was placed before T.S.C. of WCL Board in the Board Room of WCL (HQ), Nagpur. As per the directions of Technical Sub-Committee, the Project Report for Tawa-III U/G Mine was submitted to WCL Board.



After detailed deliberations, WCL Board in its 227th meeting held on 22.10.2010 accorded approval for the following

1. 1st stage approval (i.e., for the purpose of Environment & Forestry

Clearances) of the Project Report of Tawa-III U/G Mine of Pathakhera Area having a capacity of 0.48 Mty with an estimated capital investment of Rs. 105.6926 crores on Departmental Option.

2. Entering into Coal Supply Agreement with prospective customer on

Cost Plus Basis to yield 12% IRR at 85% target capacity.

3. Capacity of 0.60 Mty (Peak Production) for the purpose of obtaining EMP Clearance.

As regards requisite capital investments involved for taking advance action for acquisition of land, drivage of incline etc. are under 2nd stage approval, the Board directed that CIL be approached to review the preconditions of CIL Board, stating the practical problems being faced by WCL as some essential expenditures are required to be incurred for mine development activities and depositing Net Present Value (NPV) of Forest Land.

1.4 PREPARATION OF RECAST PROJECT REPORT FOR TAWA-III U/G MINE

(SEPTEMBER 2014) Area General Manager, Pathakhera Area, WCL vide letter no. WCL/MP/Patha/Survey/2011/778 dtd. 27.05.2011 addressed to Regional Director, RI-IV, CMPDIL, informed that the site of inclines and infrastructure proposed in the Approved Project Report for Tawa-III U/G Mine was in Forest Area and there will be lot of problems in acquiring Forest Land and hence it was requested to have a re-thinking in the planned site of inclines and surface mine infrastructure.

A joint team of officers of CMPDI, RI-IV and Pathakhera Area, had inspected the approach to the new site of inclines proposed by Pathakhera Area on 16.06.2011 and finalized the new site. In the meeting held at Pathakhera Area with Area Officials, it was also proposed to sink the Return Airshaft from Surface upto Lower Workable Seam only and two Staple Pits would be proposed, one from L.W.S. to Bagdona Seam and the other from Bagdona Seam to IA Seam for ventilation purposes. Since the Project Report for Tawa-III U/G Mine was approved on Cost Plus Basis, the above changes (i.e., Change in Site of Inclines and Airshaft, sinking of Airshaft upto L.W.S. only, proposal to include two staple pits as mentioned above (one from L.W.S. to Bagdona Seam and other from Bagdona Seam to IA Seam), change of position of Main Trunk Roadways and Change in layout of proposed panels, re-assessment of extractable reserves, change in liquidation plan, change of sale price based on GCV etc) are required to be considered while updating the project report.

Meanwhile General Manager (P&P), WCL vide letter no.



WCL/GM(P&P)/2013/330 dated 01.04.2013 requested CMPDI, RI-IV to update the Project Report for Tawa-III U/G Mine. The preparation / updation of Project Report for Tawa-III U/G Mine was kept in the Annual Plan of 2014 - 15 by WCL.

The Recast Project Report for Tawa-III U/G Mine was prepared and submitted to WCL in September 2014 after incorporating the suggestions of both WCL (HQ) and changes as suggested by the officials of Pathakhera Area, WCL. The Financial Analysis of Recast Project Report for Tawa-III U/G Mine prepared in September 2014 also suggested that the Project was yielding a negative IRR at 100% and 85% Target Capacity.

1.5 UPDATION / PREPARATION OF RECAST PROJECT REPORT FOR TAWA

- III U/G MINE (JUNE 2016) Since no cost plus customer could be identified for Tawa-III U/G Mine, WCL desired that updation of the Project Report of Tawa-III U/G Mine to be taken up again considering the revised norms of project report preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015 and revised sale price of coal as on May 2016. A meeting was held in the chamber of Director (T) (P&P), WCL on 03.02.2016 to prepare Recast Project Report for Sharda U/G Mine with some changes to reduce the cost of production. A meeting was also held with the officials of P&P Department of WCL and CMPDIL, RI-IV, Nagpur on 09.02.2016 at CMPDIL, RI-IV to recast the Project Report of Sharda U/G Mine with few changes. A few decisions were taken in the meeting to make the Recast Project Report for Sharda U/G Mine viable. Out of the decisions taken for Sharda U/G Mine, the following decisions are also applicable to Recast Project Report for Tawa-III U/G Mine, which were considered in the updation: 1. Recasting the project report in order to reduce the cost of production

considering the revised norms of project report preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015.

2. To provide departmental manpower only for coal winning, loading and

supervision and statutory activities. Rest all other allied services are to be carried out by outsourcing of manpower. The Salary, Wages & Benefits of the outsourced / contractual manpower has to be considered as per CIL office order no. CIL/C-5B/JBCCI/HPC/07 dated 14.05.2015 in respect of “Revised Rate of DA for the Contractor’s Workers engaged in Mining Activities”.

Taking the above decisions and few other decisions into consideration, the Recast Project Report for Tawa-III U/G Mine (June 2016) was prepared for



the following two options:

Option-1

Option-1 has been worked out with revised norms of P.R. preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015 and optimization of departmental manpower. Also it is proposed to keep the provisions of proposed Plant & Machinery upto Target Year only in this option. Even if few Plant & Machinery are further required, they may be arranged from the neighbouring closing mines of Pathakhera Area.

Option-2

Option-2 has been worked out with revised norms of P.R. preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015. In this option, departmental manpower has been proposed only for coal winning, loading, supervision and statutory activities. Rest all other allied services are proposed to be carried out by outsourcing of manpower. Also it is proposed to keep the provisions of proposed Plant & Machinery upto Target Year only in this option. Even if few Plant & Machinery are further required, they may be arranged from the neighbouring closing mines of Pathakhera Area.

With the above mentioned two options, the Recast Project Report for Tawa-III U/G Mine was prepared as on June 2016.

1.6 UPDATION OF RECAST PROJECT REPORT FOR TAWA - III U/G MINE

(OCTOBER 2016) The above report was placed before the Technical Sub-committee of WCL Board held on 05-08-2016 in the Board Room of WCL (HQ), Nagpur. The technical and economic parameters of Recast Project Report for Tawa-III U/G Mine (June 2016) were presented before the Technical Sub-committee of WCL Board.

During the course of presentation of Recast Project Report for Tawa-III U/G Mine (June 2016), it was observed that another Project namely Gandhigram U/G is upcoming just adjacent to Tawa-III U/G whose Project Report is under formulation with separate Approach Road and Power Supply Line involving Forest Land. This approach road and power supply line of Gandhigram U/G when shared with Tawa-III U/G may result in better economics considering both these projects as a whole.

In view of the above, Technical Sub-Committee directed to review the Recast Project Report for Tawa-III U/G Mine and put up along with Project Report of Gandhigram U/G Mine.

Based on the above directives of Technical Sub-committee of WCL Board, the Recast P.R. for Tawa-III U/G Mine was updated as on October 2016.



In the updation of Recast P.R. for Tawa-III U/G Mine (October 2016), the Financial IRR in Option-1 was negative and in Option-2 (as explained above) worked out to 15.95% & 5.38% at 100% and 85% target capacity respectively.

Subsequently, General Manager (P&P), WCL (HQ) vide letter no. NGP/WCL/P&P/2016/NG/862 dated 02.11.2016 requested CMPDI, RI-IV to recast the Project Report for Tawa-III U/G Mine with C.M. Technology..

1.7 PREPARATION OF RECAST P.R. FOR TAWA-III U/G MINE WITH C.M.

TECHNOLOGY (DECEMBER 2016)

The Recast P.R. for Tawa-III U/G Mine was prepared with C.M. Technology (with One C.M. Package) as on December 2016 with two options i.e., Departmental and Partial Hiring Options. In Departmental Option, the Project was yielding an IRR of (+) 7.60% & (-) 0.54% at 100% and 85% respectively afor Power Sector and (+) 17.34% & (+) 8.72% at 100% and 85% respectively for Non-Power Sector.

In Partial Hiring Option, the IRR for Power and Non-Power Sectors in Partial Hiring Option worked out to be negative at 100% and 85% respectively.

1.8 PREPARATION OF RECAST P.R. FOR TAWA-III U/G MINE WITH C.M.

TECHNOLOGY (FEBRUARY 2017)

The Recast P.R. for Tawa-III U/G Mine prepared in December 2016 suggested that the Project was not yielding the requisite IRR at 100% and 85% Target Capacity in both Departmental and Partial Hiring Options.

General Manager (P&P), WCL vide letter no. NGP/WCL/P&P/2016/NG/1347 dated 27.01.2017 requested CMPDI, RI-IV to update the Project Report for Tawa-III U/G Mine with other option i.e., with 2 C.M. Packages to make the project viable.

Accordingly, the Recast Project Report for Tawa-III U/G Mine was prepared with C.M. Technology (with Two C.M. Packages) as on February 2017 with two options i.e., Departmental and Partial Hiring Options.

In Departmental Option, the IRR for Power Sector was yielding (+) 15.48% and (+) 5.91% at 100% and 85% respectively and the IRR for Non-Power Sector was yielding (+) 28.37% and (+) 17.78% at 100% and 85% respectively. In Partial Hiring Option, the IRR for Power Sector was yielding (+) 5.20% and (-) 5.06% at 100% and 85% respectively and the IRR for Non-Power Sector was yielding (+) 29.31% and (+) 18.39% at 100% and 85% respectively.

The comparison of technical and financial parameters for both the options of Recast Project Report for Tawa-III U/G Mine prepared / updated as on in



December 2016 (with one C.M. Package) and February 2017 (with two C.M. Packages) was submitted to WCL

1.9 UPDATION / PREPARATION OF RECAST P.R. FOR TAWA-III U/G MINE

WITH LHD TECHNOLOGY (MARCH 2018)

General Manager (P&P), WCL vide letter no. WCL/GM (P&P)/MR/18/484 dated 09.02.2018 requested CMPDI, RI-IV to update the Recast Project Report for Tawa-III U/G Mine with LHDs taking into consideration the Revised Sale Price of coal as on 09.01.2018. As per the above letter, the Recast P.R. for Tawa-III U/G Mine has been updated / prepared in February 2018 with the revised sale price of coal and submitted to WCL (HQ), Nagpur for the following two options:

Option-1

Option-1 has been worked out with revised norms of P.R. preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015 and optimization of departmental manpower which works out to 729.

Option-2

In Option-2, updation / preparation of Recast Project Report for Tawa-III U/G Mine has been done taking revised norms of P.R. preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015. Also, in this option, departmental manpower has been considered only for certain activities, which works out to 427. Rest all other activities including allied services are to be carried out by outsourcing of manpower, which works out to 302. The Salary, Wages & Benefits of the hiring manpower has to be considered as per CIL office order no. CIL/C-5B/JBCCI/HPC/156 dated 09.06.2017 in respect of “Revised Rate of DA for the Contractor’s Workers engaged in Mining Activities”.

1.10 DISCUSSIONS IN TECHNICAL SUB-COMMITTEE MEETING OF WCL

BOARD HELD ON 07.03.2018 The Recast Project Report for Tawa-III U/G Mine updated / prepared in February 2018 was discussed in the meeting of Technical Sub-committee of WCL Board on 07.03.2018. In the Technical Sub-committee Meeting of WCL Board, no changes have been proposed in this report. Therefore, Recast Project Report for Tawa-III U/G Mine (March 2018) is being submitted to WCL (HQ), Nagpur.



1.11 SALIENT FEATURES OF PRESENT RECAST PROJECT REPORT FOR TAWA-III U/G MINE WITH LHD TECHNOLOGY (MARCH 2018) In this Recast Project Report for Tawa-III U/G Mine, the target capacity of the mine has been envisaged as 0.48 Mty or 1600 tpd . The main dips panel will be worked with 2 LHDs producing 400 tpd, whereas the other two panels will be worked with 3 LHDs in each panel producing 600 tpd from each panel. With total extractable reserves of 7.166 Mt and targeted production capacity of 0.48 Mt, total life of the mine works out to be 20 years including land acquisition and construction period. Coal production starts in 4th year and the target will be achieved in 6th year of the mine operation. The mine will be brought in revenue in the 1st production year i.e., 4th year and therefore the revenue life of mine works out to about 17 years. Although the mine has been planned for a total target capacity of 0.48 Mty, its peak production capacity would likely to be 0.60 Mty, which is around 25% more than the target capacity. This capacity is likely to be achieved during some period especially when depillaring operations commences in all the LHD districts and mine encounters favourable geo-mining conditions. Therefore the peak production capacity for EMP purpose will be 0.60 Mty. The comparison of Salient Features of Project Report for Tawa-III U/G Mine Approved by WCL Board on Cost plus Basis in October 2010 and the updated / prepared Recast Project Report for Tawa-III U/G Mine (March 2018) is summarized below:

Sl. No.

Particulars Approved P.R.

(Oct’ 2010)

Recast P.R. (March 2018)

Option-1 Option-2

A) General Parameters:

1 Geological Reserves (Mt) 17.602 17.602 17.602

2 Extractable Reserves (Mt) 6.863 7.166 7.166

3

Seam Section wise Quality:

a) Lower Workable Seam ‘D’ G-7 G-7

b) Bagdona Seam ‘D’ G-5 G-5

c) IA Seam ‘D’ G-6 G-6

d) Overall Quality ‘D’ G-6 G-6

4 Target Production of Coal (Mty) 0.48 0.48 0.48

5 Method of Mining Bord & Pillar Method with Caving

6 Loading Equipment (Nos.) LHD’s = 8 Nos.

7 Manpower Requirement (Nos.) 845 729 427 (Dept.)

302 (Hiring)

8 Overall O.M.S. (t) 2.173 2.518 4.299 (Dept.)

B) Financial Parameters:

1 Capital Requirement (Rs. Crores) 105.6926 140.9274 140.9916

2 E.M.S. (Rs.) 1543.75 2858.57 2977.07



Sl. No.

Particulars Approved P.R.

(Oct’ 2010)

Recast P.R. (March 2018)

Option-1 Option-2

3

Cost of Production (Rs./t)

a) At 100% of Target Capacity 1589.02 2509.82 2156.36

b) At 85% of Target Capacity 1829.45 2884.95 2469.12

4 Estimated Average Selling Price for Power Sector Coal (Rs./t)

1343.54 2618.55 2618.55

5

Profit / Loss for Power Sector (Rs./t)

a) At 100% of Target Capacity (-) 245.48 (+) 108.73 (+) 462.19

b) At 85% of Target Capacity (-) 485.91 (-) 266.40 (+) 149.43

6

Financial IRR for Power Sector (%)

a) At 100% of Target Capacity (-) ve (+) 12.79 (+) 24.26

b) At 85% of Target Capacity (-) ve (-) 2.98 (+) 13.64

7

Financial IRR for Non-Power Sector (%)

a) At 100% of Target Capacity - (+) 15.12 (+) 26.29

b) At 85% of Target Capacity - (+) 0.04 (+) 15.61

8

Desired Selling Price to yield 12% IRR (Rs./t)

a) At 100% of Target Capacity 1737.40 2566.06 -

b) At 85% of Target Capacity 2004.00 2951.11 -

9

Difference between Weighted Average Selling Price for Power Sector and Desired Selling Price to yield 12% FIRR (Rs./t)

a) At 100% of Target Capacity (-) 393.86 (+) 52.49 -

b) At 85% of Target Capacity (-) 660.46 (-) 332.56 -

2.0 MARKETABILITY & JUSTIFICATION 2.1 INTRODUCTION

The mines of WCL are under constant pressure to meet the increasing demand of non-coking coal for power houses and other bulk consumers from Western as well as Southern part of country. The justification of this mine has been studied in the light of estimated demand for non-coking coal from Power and non-Power Sectors and production forecast from existing, completed, ongoing and future projects of WCL.



2.2 DEMAND OF COAL The year wise FSA/LOA commitment of WCL upto 2019-20 is detailed below:

Sl. No.

PARTICULARS

FSA / LOA COMMITMENT AS ON 01.08.2017 (Mt)

Applic-able

Trigger Level

2017-18 2018-19 2019-20 2020-21

FSA Qty.

Qty. at Trigger Level

FSA Qty.


FSA Qty.


FSA Qty.


A) EXISTING COMMITMENTS THROUGH FSAs & MOUs

1 Old Power Producers existing as on 31.03.2009 with whom FSAs have been signed

90 % 30.628 27.566 30.628 27.566 30.628 27.566 30.628 27.566

2

Past Commitment of Non Power Sector except Cokeries with whom FSAs are signed prior to 31.12.2011 & Commitment of Bhilai Steel Plant from Nandan washery

60 % 4.998 2.999 4.998 2.999 4.998 2.999 4.998 2.999

3 Past Commitment of Cokeries with whom FSAs are signed prior to 31.12.2011

30 % 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

4 New Non-power FSA executed 50 % 0.702 0.351 0.702 0.351 0.702 0.351 0.702 0.351

5 Cost Plus FSAs with Wardha Power Co. Ltd.

90 % 1.625 1.463 1.625 1.463 1.625 1.463 1.625 1.463

6

New Power FSA executed with MPPGCL on 02.01.2013, with NTPC on 04.09.2013, with VIPL on 10.03.2014 and Mahagenco (as per IMTF’s recommendations) on 27.04.2015

75% for

16-17 onwards

9.271 6.953 9.271 6.953 9.271 6.953 9.271 6.953

7 Bridge Linkage with Mahagenco 8.678 8.678 3.623 3.623 0.000 0.000 0.000 0.000

8 GSECL MOU 4.200 4.200 0.000 0.000 0.000 0.000 0.000 0.000

9 NTPC one time supply of 2.0 Lakh tonnes for commissioning & trial run of Unit IV, Stage-II

0.200 0.200 0.000 0.000 0.000 0.000 0.000 0.000

10 TANGEDCO Commitment 90% 0.500 0.450 0.500 0.450 0.500 0.450 0.500 0.450

11 Linkage Auction Commitments Tranche-I

75 % 1.643 1.232 1.643 1.232 1.643 1.232 1.643 1.232

12 Linkage Auction Commitments Tranche-II

75 % 1.312 0.984 1.312 0.984 1.312 0.984 1.312 0.984

TOTAL (A) EXISTING COMMITMENTS THROUGH FSAs AND MOUs

63.757 55.075 54.302 45.620 50.679 41.997 50.679 41.997

B) LOA COMMITMENT

1

Commitment of Power Plants achieved milestones and appearing in list circulated by MOC vide letter dated 17.07.2013

75% for 16-17 onwards

1.373 1.030 1.373 1.030 1.373 1.030 1.373 1.030

2

NTPC Telangana Cost Plus Tapering LOA for First year (2019-20) – 75%, Second year (2020-21) – 50%, Third year (2021-22) – 25%

90 % 0.000 0.000 5.688 5.119 5.688 5.119 4.266 3.839

3 Wardha Power Cost Plus 90 % 0.635 0.572 0.635 0.572 0.635 0.572 0.635 0.572

TOTAL (B) FSA TO BE EXECUTED 2.008 1.601 7.696 6.720 7.696 6.720 6.274 5.441

C) OTHER LOA HOLDERS

1

Power Utility not achieved milestones and not appearing in MoC letter dated 17.7.2013 or achieved milestones but not appearing in Moc letter dated 17.7.2013

75% for 16-17 onwards

9.469 7.102 9.469 7.102 9.469 7.102 9.469 7.102

2 CPP LOA Holders 50 % 0.621 0.311 0.621 0.311 0.621 0.311 0.621 0.311

3 Sponge LOA Holders achieved milestones

50 % 0.144 0.072 0.144 0.072 0.144 0.072 0.144 0.072

4 Cement LOA Holders not achieved milestones but BIFR Court directed not to take coercive action

50 % 0.042 0.021 0.042 0.021 0.042 0.021 0.042 0.021

TOTAL (C) OTHER LOA HOLDERS 10.276 7.505 10.276 7.505 10.276 7.505 10.276 7.505

TOTAL FSA/LOA COMMITMENT 76.041 64.181 72.274 59.845 68.651 56.222 67.229 54.943



(A+B+C)

D) SPOT E-AUCTION 5.000 5.000 5.500 5.500 6.000 6.000 6.000 6.000

E) OTHER AUCTIONS (Exclusive/ Special Forward/Special Spot etc.

4.845 4.845 5.000 5.000 5.500 5.500 5.500 5.500

GRAND TOTAL (A+B+C+D+E) 85.886 74.026 82.774 70.346 80.151 67.723 78.729 66.443

The above table indicates that WCL has a FSA/LOA commitment of 76.041 Mt, 72.274 Mt, 68.651 Mt and 67.229 Mt at 100% supply for the year 2017-18, 2018-19, 2019-20 & 2020-21 respectively. The FSA/LOA commitment at trigger level are 64.181 Mt, 59.845 Mt, 56.222 Mt and 54.943 Mt for the year 2017-18, 2018-19, 2019-20 and 2020-21 respectively. In addition to this, the coal supply through Spot Auction and Other Auctions (Exclusive/ Special Forward / special Spot etc.) is envisaged as 9.845 Mt, 10.50 Mt, 11.50 Mt and 11.50 Mt in 2017-18, 2018-19, 2019-20 and 2020-21 respectively.

2.3 AVAILABILITY OF COAL

CIL is planning for 1 Billion Tonnes Coal production by 2019-20 and the share of WCL is 60 Mt in this 1 BT planned production. The following table shows the availability of coal from the existing, completed, on-going and future mines of WCL:

Sl. No.

Sector Projections of Availability of Coal (Mt)

2017-18 2018-19 2019-20

1 Existing mines 0.290 0.00 0.00

2 Completed projects 10.955 9.85 7.93

3 On-going projects 37.255 45.15 52.07

4 Future projects 0.00 0.00 0.00

Total 48.50 55.00 60.00

2.4 DEFICIT IN AVAILABILITY OF COAL FROM WCL

Following table shows the deficit in availability of coal, including middling, from the various Existing, Completed, On-going, and Future Projects of WCL:

Sl. No.

Sector

Projections of Surplus / Deficit of Coal (Mt)

2017-18 2018-19 2019-20

1 Total FSA/LOA Commitment + proposed E-Auction

85.886 82.774 80.151

2 Availability of coal 48.50 55.00 60.00

3 Surplus / Deficit (+/-) (-) 37.386 (-) 27.774 (-) 20.151

From the above table, it is clear that the deficit in supply of coal from WCL is 37.386 Mt in 2017-18 which will be narrowed down to 20.151 Mt in 2019-20 if WCL achieves the target capacity of 60 Mt in 2019-20.



2.5 UTILITY OR MARKET FOR THE COAL FROM MINE / PROJECT

The mines of WCL are under constant pressure to meet the increasing demand of non-coking coal for power houses and other bulk consumers from Western as well as Southern part of country.

The justification of this mine has been studied in the light of estimated demand for non-coking coal from Power & Non-Power Sectors and production forecast from existing, completed, ongoing and future projects of WCL.

The marketing of non-coking coal produced from Tawa-III U/G Mine will not be a problem as there is a readily available market. There is huge demand of coal from power sector and the coal may be supplied to the power houses of MPPGCL / MSEDCL / NTPC or captive power houses.

2.6 AVAILABLE LINKAGE OR FIRM FUEL SUPPLY AGREEMENT (FSA)

There is no firm linkage available for proposed Tawa-III U/G Mine to either power house or any miscellaneous industries.

2.7 JUSTIFICATION AND MARKETABILITY

From the tables given in para no. 2.2 to 2.4, it is clear that the deficit in supply of coal from WCL is 37.386 Mt in 2017-18 which will be narrowed down to 20.151 Mt in 2019-20 if WCL achieves the target capacity of 60 Mt in 2019-20. To further reduce the gap between demand and supply of coal, it is very essential to either open new mines or increase the production from existing mines of WCL.

The target capacity of 0.48 Mty from Tawa-III U/G Mine will not only bridge the gap to the extent of planned production but there will be an augmentation in underground production. Therefore in view of deficit of coal, there is no problem in marketing of coal and opening of Tawa-III U/G Mine is justified.

3.0 RELEVANT PROJECT SPECIFIC INFORMATION Tawa–III U/G Mine is located in Tawa Extension Geological Block in the N-E part of Pathakhera Coalfield, Betul District, Madhya Pradesh. The area is covered by Survey of India Toposheet No. 55 J/4 and lies between Latitudes 220 08' N and 200 10' N and Longitudes 780 10' E and 780 12' E. The distance of Tawa Extension Geological Block from Ghoradongri Railway Station is about 25 km. The nearest rail head is Ghoradongri on New Delhi - Chennai trunk route of Central railway and is situated at a distance of about 71 km south of Itarsi Junction. The distance between Satpura Thermal Power Station, Sarni and Tawa Extension Geological Block is about 7 - 8 km and it is connected to Ghoradongri Railway Station by an all weather tar road. The area within the



block is traversed by seasonal forest roads, which connects to Gandhigram and Shaktigarh villages lying to the north of block. The Tawa River flowing to the west and south of the block controls the main drainage of the area. Few seasonal nallahs originating from Bagdev Pahad and other elevated regions discharge into Tawa River. The area of the Geological Block under consideration (i.e., Sectors IIIB, IVA, IVB, IVC & IVD) is 2.70 km2 and is a part of 8.5 km2 of Tawa Extension Geological Block. The proposed Tawa-III U/G Mine has been envisaged in Sectors IVB & IVC only covering an area of about 2.06 km2 .

4.0 GEOLOGY AND DEPOSIT APPRAISAL

The proposed Tawa-III U/G Mine is located in northern part of Tawa Extension Geological Block (north of Fault F3 - F3) in Pathakhera Coalfield, WCL. The details of geological documents on which present assessment is based on are given below:

(i) Geological Report of 'A part of Tawa Extension Block', Pathakhera

Coalfield, District Betul (MP), CMPDI (RI - IV), Nagpur February 1990.

(ii) Geological Report for Coal Exploration in Tawa Extension Block, Pathakhera Coalfield, District Betul (MP), CMPDI (RI-IV), Nagpur, December 1999.

4.1 DENSITY OF BOREHOLES

Geological Block: Total 32 boreholes were drilled in an area of about 2.70 km2 and the Borehole density works out to about 12 BH/ km2. Mining Block: Total 24 boreholes were drilled in an area of about 2.06 km2 and the Borehole density works out to about 12 BH/ km2.

4.2 GEOLOGY OF THE MINING BLOCK 4.2.1 Regional Geology

The Pathakhera Coalfield located in the Western part of the Southern limb of the Satpura – Gondwana basin, is the westernmost working Coalfield of Peninsular India. The coalfield is located in Betul District of the state of M.P.

The general trend of the formations in the Pathakhera Coalfield is East-West

with minor swings. In the major part of the Coalfield the strata dips to the North except in Sarni Mine, located in the southern part of the Coalfield, where reversal of dip to the south is observed.

In West-Central part of the Coalfield (Satpura-II Mine area) the strata swings to NE- SW and finally to almost N - S dipping towards NW and West.



In the northern part of Satpura mines area the strike swing from E - W to NE - SW to North South and finally to NW - SE dipping towards SE, thus exhibiting a prominent anticline flexure disrupted by several transverse faults. In the western part of the Coalfield, the structure is, however, more complex.

4.2.2 General Geology of the Block

The lease hold area of the proposed Tawa-III U/G Mine is generally a hilly terrain. Barakar sandstones are exposed in the southern and eastern part of the block. The likely exposures of the coal seams, to the south-east, are now submerged in Satpura Reservoir. The lithological formations present in the area summarized on the basis of borehole data have been furnished in following table:

Details of Lithological Formations

Age Formation Lithology

Recorded Thickness Range

Minimum Maximum

Recent Alluvium/

Soil Sandy and clayey soil.

0.70 (CMPTE-113)

15.45 (CMPTE-19A)

Upper Creta-ceous

Intrusives Dolerite dykes

Lower Permian

Motur Medium to coarse grained sandstone with bands of variegated clays.

NIL 225.34

(CMPTE-140)

Upper Barakar

Medium to coarse grained sandstone, devoid of any coal seam.

5.61 (CMPTE-121)

121.60 (CMPTE-141)

Middle Barakar

Medium grained sandstone with coal seam, carb. shale bands, shale and intercalations.

105.10 (CMPTE – 8)

122.70 (CMPTE-118)

Lower Barakar

Fine grained garnetiferous sandstone with few thin shale and coal bands.

Partly encountered

4.3 STRUCTURAL SETTING WITHIN THE PROJECT AREA

Tawa-III U/G mining area is characterized by rugged topography dissected by numerous nalla cuttings. Generally the sandstones are massive and it is not possible to determine the strike and dip. However, at places the strata is found to exhibit a NE - SW trend dipping towards NW at an angle varying from 50 - 150.



4.4 DIP AND STRIKE The structural interpretation of the Tawa-III U/G mining area has been mainly deciphered on the basis of sub-surface data generated through drilling. The general trend of the formation in the area is N - S dipping towards W at a gradient of 1 in 7.5 to 1 in 10 i.e., 5.50 to 7.50 dip.

4.5 FAULTS

It can be seen that 6 faults are present with a throw ranging from 5m to 140m in the mine boundary of Tawa-III U/G Mine. These faults have been deciphered on the basis of sub-surface data. The number of faults confirmed with positive evidence in Boreholes and their characteristic features like location, extent, direction and amount of throw etc. in Tawa-III U/G Mine area are given below:

Sl. No.

Fault Name

Trend Amount & direction of

throw Nature of evidence

1. F1 - F1 Almost E - W

90 - 120 m due North

(a) Difference in FRL values on either side of the fault.

(b) Omission of Bagdona Seam & IA Seam in CMPTE - 39.

2.

F2 - F2 E - W with N.E. swing in the east.

10 - 140 m due

northerly and north

west.


(b) Omission of all seams in CMPTE - 75 & seams UWS, LWS and Bagdona Seam in CMPTE - 129.

3. F3 - F3 NE - SW 10 - 80 m due SE


(b) Part thickness of Bagdona Seam and omission of IA Seam in CMPTE - 28.

4 F8 - F8 ENE -WSW

5 m due NNW


(b) Omission of Bagdona Seam in CMPTE - 99.

5. F9 - F9 ENE - WSW

15 m due ESE


(b) Reduction of about 15 m parting between LWS and Bagdona Seam CMPTE - 115.

6. F10 - F10

ENE - WSW with westerly swing in

west

10 - 25 m due SSE


(b) Omission of UWS in CMPTE-56 & 125.

(c) Reduction in thickness of Lower Workable Seam in CMPTE - 125.



Apart from above, minor faults and slips of throws less than 5m cannot be ruled out. Similarly the throw of faults as deciphered may be the cumulative throw of more than one fault of lesser magnitude.

4.6 PRESENCE OF DYKE, SILLS (IGNEOUS INTRUSIVES) ETC.

Dolerite dyke has been encountered in several boreholes. The position of dykes has been shown in the Seam Folio Plans of workable seams. The possibility of presence of some other dykes cannot be ruled out.

4.7 DESCRIPTION OF COAL SEAMS

A brief description of coal seams wih parting in the block area as encountered in different boreholes in Tawa-III U/G Mine Area are tabulated below:

Seam Stratigraphic Thickness Range (m)

Remarks Minimum Maximum

Upper Workable

Seam

0.28 (CMPTE - 51)

1.36 (CMPTE - 122)

Reduced in thickness and interbanded in nature. Unworkable in major part of mining area.

Parting 7.70 19.51 Predominantly composed of sandstone.

Lower Workable

Seam

1.49 (CMPTE -

128)

2.83 (CMPTE - 117)

Workable over the entire mining area.

Parting 42.04

(CMPTE - 77) 63.59

(CMPTE - 38)

Consists of intercalations of shale and sandstone with 3 – 4 thin coal bands.

Bagdona Seam

1.05 (CMPTE -

128)

2.90 (CMPTE - 30)

Workable in entire mining area.

Parting 28.85 50.45 Consists mainly of sandstone with shale in upper part.

IA Seam 0.60

(CMPTE - 70) 2.63

(CMPTE - 30) Workable

From the above table, it is seen that only three seams namely, Lower Workable Seam, Bagdona Seam and IA Seam are workable in the proposed Tawa-III U/G Mine.

4.8 GEO-PHYSICAL STUDIES (a) Geophysical logging Geophysical logging of Boreholes CMPTE - 92, 94, 96, 98 and 99 was carried

out and combination of radiation logs i.e., Natural Gamma, Long Spacing and Bed Resolution Density with Neutron and Sonic were recorded



(b) Magnetic Survey

Magnetic survey to delineate dykes has been carried out in Tawa Extension Geological Block and the position of dykes has been shown in the Seam Folio plans of workable seams in the proposed Tawa-III U/G Mine Block.

4.9 HYDROGEOLOGICAL DETAILS (a) Aquifer disposition

Based on the study of exploratory borehole data, the following aquifers are

delineated in the Block.

Sl. No. Depth range (m) Aquifer nature Formation

1 0 -25 Unconfined Detrital mantle / Moturs

2 30 – 200 Semi-confined Moturs / Barakars (Top & Middle)

3 Beyond 200 Confined (?) Lower Barakars

Groundwater occurs below the water table within the pore spaces of semi-consolidated sandstones and their secondary porous structures. Under natural conditions, the groundwater movement is through the inter-connected pore spaces and planes of fractures/joints of saturated material below phreatic surface as a result of combined pressure and gravity fields and permeability contrast in lithological units. Under the above hydrogeological set-up in the block, the groundwater would also flow vertically downward from the phreatic zone to the deeper aquifers.

(b) Unconfined aquifer Dugwells tapping the unconfined aquifer extending down to a depth of 25 m

are not available. Therefore, the regional data collected in Pathakhera Coalfield, the earlier study carried out for Tawa Mine (Report 1996) and the results thereof have been furnished below.

Depth to water table in and around Tawa-II U/G Mine ranges from 5.00 m to 15.00 m below ground level and 3.55m to 12.50m below ground level in pre–monsoon & post monsoon periods of year 2008. Fluid potential fluctuation in the coalfield ranges from 0.15 m to 4.00 m between the two extreme seasons due to natural recharge and discharge process. However, the water table fluctuation is less than 5m in the proximity of Tawa River and major part of the area north of the river. Shallow to moderate depth of water levels, low to moderate zone of fluctuation, mixed water quality, etc. observed in the proximity of Tawa River indicates discharge zone whereas the remaining area in the periphery of the coalfield is in recharge belt. The effluent nature of the Tawa River corroborates the inference of discharge area.



4.10 GEOLOGICAL BOUNDARY & RESERVES 4.10.1 Geological Block Boundary The proposed Tawa-III U/G Mine has been envisaged in the northern part of

Tawa Extension Geological Block beyond Fault F3 - F3. The block boundaries of this northern part of Tawa Extension Geological block area as follows:

North : Fault F1 - F1

South : Fault F3 - F3

East : Fault F1 - F1 and F3 - F3

West : Arbitrary line 200m from the peripheral boreholes CMPTE- 76, 75, 142, 134 & 140.

4.10.2 Net Proved Geological Reserves (Thickness & Workable Seam Wise)

The Thickness wise and Seam wise Net Proved Geological Reserves of Workable Seams in Tawa-III U/G Mine Area is given in the following table:

Seam Thickness

Workable Seam wise Net Proved Geological Reserves (Mt)

L.W.S. Bagdona IA Seam Total

< 1.2 m - 0.035 0.511 0.546

1.2 – 1.5 m - 0.231 0.355 0.586

1.5 – 2.0 m 1.106 4.726 1.620 7.452

2.0 – 2.5 m 3.936 0.750 1.924 6.610

> 2.5 m 2.000 - 0.408 2.408

Total 7.042 5.742 4.818 17.602

4.10.3 Net Proved Geological Reserves (Grade Wise & Workable Seam Wise)

The Grade-wise and Seam-wise Net Proved Geological Reserves of Workable Seams in Tawa-III U/G Mine Area are tabulated below:

Seam Grade Grade & Seam wise Net Proved Geological Reserves (Mt)

L.W.S. Bagdona IA Seam Total

Grade - B - 0.174 0.160 0.334

Grade - C 0.247 2.734 2.056 5.037

Grade - D 4.207 2.786 2.014 9.007

Grade - E 2.538 0.048 0.523 3.109

Grade - F 0.050 - 0.065 0.115

Total 7.042 5.742 4.818 17.602



5.0 MINE BOUNDARY, RESERVES, TARGET, MINE LIFE & COAL QUALITY 5.1 PARTICULARS OF COAL SEAMS

All the four coal seams of Pathakhera Coalfield namely, Upper Workable Seam, Lower Workable Seam, Bagdona Seam and IA Seam exist within the boundary of Tawa-III U/G Mine. The general thickness range, depth range and grade of these seams as well as nature of parting are tabulated below:

Seam / Parting

Thickness Range (m)

Depth Range (m)

Grade Range

Remarks

U.W.S. 0.28 - 1.36 19.41 - 299.92 G - D Unworkable

Parting 7.70 - 19.51 - - Predominantly Sandstone

L.W.S. 1.49 - 2.83 79.53 - 314.90 F - C Workable

Parting 42.04 - 63.59 - - Consists of intercalations of shale and sandstone with 3-4 thin coal bands

Bagdona 1.05 - 2.90 137.92 - 372.63 D - B Workable

Parting 28.85 - 50.45 - - Consists mainly of sandstone with shale in upper part.

IA Seam 0.60 - 2.63 175.79 - 441.39 E – B Workable

From the above table it is clear that three seams namely Lower Workable Seam, Bagdona Seam and IA Seam are workable and hence these are considered for mining in the proposed Tawa-III U/G Mine.

5.2 MINE BOUNDARY Proposed Mine Boundary

Out of 5 sectors of Tawa Extension Geological Block lying in the north side of Fault F3 - F3, only two sectors namely IVB and IVC are workable and hence considered in the proposed Tawa-III U/G Mine. The mine boundaries of proposed Tawa-III U/G Mine are as follows:

North - Fault F8 - F8 and F1 – F1

South - Fault F10 - F10 and Dyke

East - Fault F1 - F1 and Dyke

West - Arbitrary Line 200m from peripheral boreholes CMPTE - 142 & 134

5.3 GEOLOGICAL, MINEABLE & EXTRACTABLE RESERVES 5.3.1 The following table shows the workable seam wise Geological Reserves,

Geological Losses and Mineable Reserves considered in the report:



Seam Thickness Range (m)

Geological Reserves (Mt)

Geological Losses (Mt)

Mineable Reserves (Mt)

L.W.S. 1.49 - 2.83 7.042 2.352 4.690

Bagdona 1.05 - 2.90 5.742 1.762 3.980

IA 0.60 - 2.63 4.818 0.889 3.929

Total 17.602 5.003 12.599

5.3.2 Extractable Reserves

The coal reserves in seam thickness of less than 1.5m are not considered for mining and it contributes to mining losses. Coal again will be lost below and around inclines and airshaft as a barrier of coal in the form of solid pillars is to be left. Besides the above losses, coal will also be lost in panel barriers. During extraction stage, coal will be blocked in ribs in the extracted pillars. The mining losses in the three workable seams i.e., L.W.S., Bagdona and IA seams are tabulated below:

Sl. No.

Reason Seam wise Mining Losses (Mt)

L.W.S. Bagdona IA Total

1 Seam thickness less than 1.5m (considered unworkable)

0.00 0.166 0.842 1.008

2 Panel Barriers 0.299 0.209 0.294 0.802

3 Safety Pillar against mine entries

0.483 0.485 0.592 1.560

4 Coal lost in Ribs during depillaring Pillars

0.923 0.690 0.450 2.063

Total Mining Losses 1.705 1.550 2.178 5.433

The following table shows the workable seam-wise net geological, mineable and extractable reserves and the losses in the proposed Tawa-III U/G Mine:

Workable Coal Seam

Net Geological Reserves

(Mt)

Geological & Other

Losses (Mt)

Mineable Reserves

(Mt)

Mining Losses

(Mt)

Extractable Reserves

(Mt)

L.W.S. 7.042 2.352 4.690 1.705 2.985

Bagdona 5.742 1.762 3.980 1.550 2.430

IA 4.818 0.889 3.929 2.178 1.751

Total 17.602 5.003 12.599 5.433 7.166



5.4 PRODUCTION TARGET AND LIFE OF THE MINE 5.4.1 Production Target

Keeping in view the aerial extent of the mine, number of workable seams and the proposed mechanization, three LHD panels with total production capacity of the mine as 1600 tpd (0.48 Mty) is envisaged. The peak production capacity of this mine for EMP purpose may be considered as 0.60 Mty whenever favourable geo-mining conditions are encountered.

5.4.2 Life of the Project

The extractable reserves in the proposed mine area have been estimated as 7.166 Mt. With a target capacity of 0.48 Mty, the total life of the mine & revenue life of the mine works out to 20 years & 17 years respectively.

5.5 OVERALL QUALITY

The Quality Parameters of the each workable seam and Overall Quality Parameters in Recast Project Report for Tawa-III U/G Mine Area are given in the following table:

Workable Coal Seams

Extractable Reserves

(Mt)

Quality Parameters

UHV with Grade (k. Cal/kg)

GCV with Grade (Calculated) (k. Cal/kg)

L.W.S. 2.985 4384, ‘D’ 5390, ‘G7’

Bagdona 2.430 4990, ‘C’ 5809, ‘G5’

IA 1.751 4927, ‘D’ 5763, ‘G6’

Overall 7.166 4722, ‘D’ 5625, ‘G6’

6.0 PROPOSED MINE ENTRIES

It is proposed in this Recast Project Report for Tawa-III U/G Mine to open the mine by a pair of inclines nomenclatured as Incline No. 1 and Incline No. 2 and one return Ventilation Airshaft.

Only two sectors namely IVB and IVC have been proposed for working in Tawa-III U/G Mine, out of which Sector IVB covers most of the mine area and Sector IVC is a small sector in the north - west corner separated from Sector -IVB by a Fault F9-F9 having throw of about 15m. It is proposed to make three nos. of drifts to access this sector. The Dimension of the Mine Entries, Staple Pits and Stone Drifts to approach various panels or seams, their location and purpose etc is tabulated below.



Sl. No.

Mine Entries

X-Section (Dia/WxH) (m/mxm)

Approximate Length/ Depth

(m)

Gradient

Approach (From/To)

(Seam/ Section)

Purpose and mode of transport

fitted, if any

1. Incline No. 1

5.5 x 3.5 799 1 in 4.5 Surface to Seam - IA

Material Transport, Travelling

Route & Main Intake

2. Incline No. 2

5.5 x 3.5 803 1 in 4.5 Surface to Seam - IA

Belt Conveyor Route & Main Intake Route

3. Airshaft 5.5 115 Vertical Surface to

L.W.S. Return Airway

4 Staple Pit 4.5 58 Vertical L.W.S. to Bagdona

Return Airway

5 Staple Pit 4.5 38 Vertical Bagdona

to IA Return Airway

6 Stone Drifts

(3 Nos.) 4.8 x 3.0

148m x 3 Nos. = 444m

1 in 4.5 L.W.S to L.W.S.

Two drifts as Intake (Belt Conveyor and Haulage Roadways) and one drift as return

7 Stone Drifts

(3 Nos.) 4.8 x 3.0

148m x 3 Nos. = 444m

1 in 4.5 Bagdona

to Bagdona

8 Stone Drifts

(3 Nos.) 4.8 x 3.0

148m x 3 Nos. = 444m

1 in 4.5 IA to IA

Both the Inclines are proposed to be driven from Surface upto Seam - IA which is the Bottom Most Workable Seam. The lengths of Incline No. 1 from surface upto Lower Workable Seam, Bagdona Seam and IA Seam are approximately 488m, 680m & 799m respectively. Similarly, the lengths of Incline No. 2 from surface upto Lower Workable Seam, Bagdona Seam and IA Seam are 487m, 681m & 803m respectively. In the Approved Project Report (1st Stage Approval), the Return Airshaft was proposed to be driven from Surface to IA Seam with a depth of about 187m. Since Shaft Sinking is highly cost intensive and due to the difficulties encountered during sinking in such a high depth, it was decided by WCL Officials and RI-IV, CMPDI Officials to propose the sinking of Return Airshaft upto Lower Workable Seam only. To approach the other two seams i.e., Bagdona Seam and IA Seam, it is proposed to approach through one Return Staple Pit from Lower Workable Seam to Bagdona Seam and another Return Staple Pit from Bagdona Seam to IA Seam. Thus, in the entire mine area, only one Fault F9-F9 having a throw of about 15m has to be crossed in all the three seams during mine working. Therefore, It is proposed to drive three nos. of drifts in each seam across the Fault F9-F9 to approach Sector-IVC from Sector-IVB. Out of these three drifts, two will serve as intake airways and third one as return airway. One intake drift will be used for coal transportation by belt conveyor and the other intake drift will be used for material transportation by haulage.



The details of these drifts have been furnished in the above table. Adequate capital has been provided for drivage of inclines, sinking of airshaft and stone drifts. The guidelines for estimation of average cost per meter for construction of circular shaft and inclines were issued by CMPDI (HQ) with a provision for escalation in labour and material components. As per the above guidelines, the average cost per meter length for drivage of inclines and sinking of airshaft has been estimated after due escalations. The estimated cost is used for provisioning in the report only and not for any other purpose.

The length of inclines and depth of airshaft proposed in this recast project

report are tentative and as per the available geological data given in the geological report and could vary depending upon the surface RLs and floor RLs encountered during actual drivage. The exact location and its touching point in Lower Workable Seam, Bagdona Seam and IA Seam will depend upon the data of the boreholes proposed for incline alignment and detailed survey of the acquired land.

Thus, at the time of actual drivage of the inclines / drifts, a section should be

drawn to firm up the starting and ending position of the inclines & drifts so as to arrive at actual length.

The average time frame for drivage of inclines and sinking of airshaft is considered as 50m/month and 10m/month respectively with mechanized high speed drivage.

7.0 GEO-MINING PARAMETERS AND MINING STRATEGY The following table shows the geo-mining parameters of the workable seams:

Particulars Characteristics of Workable Seams

L.W.S. Bagdona Seam IA Seam

1) Area (km2) a) Block Area b) Mining Area

2.70 1.85

2.70 1.95

2.70 2.06

2) No. of Borehole intersections within mining area

24 21 19

3) Borehole Density (BH/ km2) 12 10 9

4) Seam thickness range (m) a) Block Area b) Mining Area

1.49 - 2.83 1.49 - 2.83

1.05 - 2.90 1.05 - 2.90

0.60 - 2.63 0.60 - 2.63

5) Workable thickness range (m) 1.50 - 2.83 1.50 - 2.90 1.50 - 2.63

6) Average mining thickness (m) 2.25 1.85 1.80

7) Average Seam Gradient 1 in 7.5 to 10 1 in 7.5 to 10 1 in 7.5 to 10

8) Depth Range (m) a) Block Area b) Mining Area

79.53 - 314.90 79.53 - 314.90

137.92 - 372.63 137.92 - 372.63

175.79 - 441.39 175.79 - 441.39

9) Range of parting with surface or upper Seam (m)

U.W.S. & L.W.S. = 7.70 - 19.51

L.W.S. & Bagdona

= 42.04 - 63.59 Bagdona & IA

= 28.85 - 50.45



Particulars Characteristics of Workable Seams

L.W.S. Bagdona Seam IA Seam

10) Grade of coal (range) C - F B - D B - E

11) Average Grade / GCV of coal G7 / 5390 G5 / 5809 G6 / 5763

12) Gassiness (Assumed) Degree-II Degree-II Degree-II

13) Immediate Roof Sandstone Alternate bands of Shale & Sst.

Sandstone

14) Immediate Floor Sandstone & occasionally sandy shale

Alternate bands of shale and sandstone

Sandstone & occasionally sandy shale

15) Geological Reserves (Mt) (Proved) = 17.602 Mt

7.042 5.742 4.818

16) Mineable Reserves (Mt) (Proved) = 12.599 Mt

4.690

3.980 3.929

17) Extractable Reserves (Mt) (Proved) = 7.166 Mt

2.985 2.430 1.751

18) Status of Mining Virgin Property, U/G Coal Mining is yet to be started.

7.1 SURFACE CONSTRAINTS ON MINE DEVELOPMENT

The proposed mine area of Tawa-III U/G Mine is overlain by forest land consisting of Asir Reserve Forest. The forest is having big trees of height more than 50 feet. Although extraction of coal seams is proposed by caving, there will be marginal impact on the flora due to subsidence as brought out in the study of Forest Research Institute, Jabalpur. Two reverse inclines have been proposed in the mine to access all the three workable seams namely LWS, Bagdona Seam and IA Seam. The proposed mine is located in the northern side of Tawa-II U/G Mine and in the southern side of Gandhigram U/G Mine.

The eastern part of the mine is having rugged and hilly terrain and is not suitable for incline drivage. The proposed location of inclines is flat. The location of mine entries have been proposed at such place where the topography seems to be flat and is suitable for incline drivage and surface infrastructure and was accepted by Area Authorities. However, some coal reserves will be blocked due to these inclines as the entire length of inclines is falling on coal bearing area. Coal in the form of developed pillars is proposed to be left below and within safe distance of these inclines.

7.2 UNDERGROUND CONSTRAINTS ON MINE DEVELOPMENT

The strike length of the mine is very limited and the panels formed during development will be smaller in length causing frequent shifting of gate belt conveyors and construction of air-crossings etc during mine development. Underground drifts will have to be made in all the three seams during development to cross the Fault F9 - F9. Cavability of roof overlying Lower Workable Seam, Bagdona Seam and IA Seam needs to be ascertained through scientific studies and based on the outcome of the study, the panel orientation etc may have to be changed.



7.3 SELECTION OF MINING METHOD

7.3.1 Opencast Mining Method

The proposed area of Tawa - III U/G Mine is not potential for opencast mining due to dense forest land, less thickness of coal seams and greater depth (minimum 180m at the floor of IA Seam) resulting into very high stripping ratio.

7.3.2 Underground Mining Method

Bord and Pillar method of mining with solid blasting and mechanized loading is the prevalent method of mining in the mines of Pathakhera Area. The gradient of seam in the proposed mine area is favourable for deployment of LHDs. This mine is being seen as replacement mine for closing / exhausting mines of the Area. Hence, the Recast Project Report has been prepared on Semi-mechanised Bord & Pillar method of mining with solid blasting and mechanized loading by LHDs.

7.4 MINE DEVELOPMENT STRATEGY

For the development of the proposed Tawa-III U/G Mine, the following strategy is envisaged:

a) Acquisition of land for mine infrastructure and mine entries which includes

Forest land is proposed in the first year. b) Arrangement for temporary and permanent power supply and water supply

arrangement at the mine entries site and start of drivage / sinking. c) Drivage of the inclines (2 nos. - at a gradient of 1 in 4.5) and sinking of

Airshaft from surface upto the floor of LWS. Drivage of Inclines and Sinking of Airshaft will be completed by third year.

d) After the drivage of inclines and sinking of airshaft is completed, the

preparatory works for development of main trunk roadways like installation of belt conveyors, man riding chair lift system, connection of inclines with airshaft, ventilation arrangement etc will be done.

e) Procurement of Plant & Machinery as per phasing. f) Construction of coal handling arrangement and other service & welfare

buildings for the smooth operation of the mine. g) Development of five nos. of main trunk headings in Lower Workable Seam

is proposed in which the pillars in main trunk headings will be square in shape.

h) The pillars in the development districts will also be of square shaped with

sizes as per depth keeping the gallery width as 4.8m for all the pillar sizes.



i) Out of five main trunk headings, one will be used as belt roadway for coal

transportation, the other as haulage roadway for material and the third heading will be used for travelling of men. All the above said three roadways will be intake roadways. The extreme sides of the main trunk headings will serve as return roadways.

j) Development of main trunk roadways and panels is proposed to be done

by Solid Blasting and the blasted coal is loaded by LHDs onto belt conveyors. A production of 0.12 Mty (400 tpd) is proposed in fourth year, 0.30 Mty in fifth year and 0.48 Mty in sixth year which is the target year.

k) In 4th year, development of five nos. of main trunk headings in Lower

Workable Seam is proposed producing about 0.12 Mty from one LHD district.

l) In 5th year, development of five nos. of main trunk headings in Lower

Workable Seam & Bagdona Seam and panels in Lower Workable Seam is proposed producing about 0.30 Mty from two LHD districts.

m) In 6th year, development of main trunk headings and panels in Lower

Workable Seam & Bagdona Seam is proposed producing about 0.48 Mty from three LHD districts.

n) The target production of 0.48 Mty will continue from 6th year to 18th year of

mining operation. In 19th year and 20th year of mine operation, the production from the mine will taper down to 0.443 Mty and 0.063 Mty respectively. Therefore, the total life and revenue of the mine is proposed as 20 years 17 years respectively.

8.0 METHOD OF MINING AND PRODUCTION PARAMETERS 8.1 METHOD OF DEVELOPMENT

Tawa-III U/G Mine is proposed to be developed on Bord & Pillar method. The main trunk roadways will consist of 5 headings and panels in more or less strike direction will consist of 7 headings. In few panels, which are near the faults or in odd shaped areas, the number of headings may be increased or decreased in view of conservation of coal as against creating another panel. The pillar sizes in the panels are square shaped and will vary as per depth in each sector for a gallery width of 4.8m. Although the workable seams are not contiguous with one another, superimposed pillars have been planned in all the workable seams. However, statutorily it is not required and may change as per the prevailing condition. The main trunks are perpendicular to panels, hence square shaped pillars will be formed in main trunk roadways. Each panel should be opened with minimum no. of essential entries, which are needed for transport and ventilation purpose. Panels have to be laid out



slightly on rising gradient wherever possible for the natural flow of water.

Development of panels has been envisaged with adequate panel barriers between them. This type of development ensures depillaring within the panel immediately after development and has the following advantages as enumerated below: a) Better roof control b) Reduced chances of spontaneous heating c) Pillars are formed for a predetermined life, thereby reducing the

weathering, weakening, spalling etc. d) Concentrated output, improvement in supervision, etc.

Coal will be prepared by blasting-off-solid and loaded by LHDs onto belt conveyors. Roof support during development will be primarily roof bolting and quick setting cement capsules. The bolting pattern will be determined based on the RMR of the workable seams. Hydraulic Roof Bolters have been provided in the report to ensure that the roof supports keep pace with face advance. It is important to monitor the performance of the installed roof bolts and supports. Provision of Anchorage Testing Machines has been kept for checking the efficacy of roof bolts. Therefore regular use of skilled manpower and scientific instruments for monitoring the strata movement should be made as a regular practice.

8.2 METHOD OF EXTRACTION

The extraction of pillars (depillaring) is proposed to be done by caving method. The size of the panel / sub-panels will be such that the panel / sub-panels is completely extracted within the incubation period. However, the actual incubation period for this mine will have to be determined after the first fall in the goaf occurs. A diagonal line of extraction should be maintained during depillaring. Following precautions should be taken while depillaring: a) Quick setting isolation stoppings should be provided in-bye of

preparatory stoppings. b) A diagonal line of extraction should be maintained. c) The extraction of pillars should commence from the proposed limit of

the mine or any natural boundary created by faults, etc. The proposed method of extraction of pillars has been suggested on the

following lines:



i) Each 45m x 45m pillar shall be divided into three equal parts by driving a level split of 4.8m width.

ii) Each one third of pillar so formed shall be extracted by driving dip-rise

slices of 4.5m width leaving a rib of coal not less than 1.80m in thickness against the adjacent goaf. The ribs of coal may be reduced judiciously consistent with safety while retreating from the slices.

iii) The maximum area of roof exposure at any place not to exceed 90 m2. iv) Driving of a slice shall not commence until extraction in the immediate

inbye slice is completed and goaf edge supports erected.

v) Extraction of pillars shall commence from the dip / inbye side and proceed systematically to rise / outbye side maintaining a diagonal line of faces and avoiding formation of “V” in the line of extraction.

vi) The blasted coal shall be removed by LHDs. The LHD operator shall

not cross the last line of support while lifting blasted coal and shall not be exposed to the unsupported roof.

8.3 SUPPORT SYSTEM

A) Support during Development The support system during development stage will be designed based on the

RMR of immediate roof strata and the guidelines for design of support system laid down by DGMS in its circulars. The support system will be finalized after the approval of DGMS.

As a general guideline, the following support system is proposed for

supporting within 10m of development faces, in the galleries which are under permanent use and in geologically disturbed areas.

i) Roof Bolts of 1.8m length with cement capsules are proposed for

support of immediate roof within 10m of the development faces. Four bolts in a row at 1.2m spacing for a gallery width of 4.8m in the freshly exposed area. The spacing between adjacent rows will be 1.2m.

ii) All permanent roadways to be supported by roof bolting/rope stitching. iii) Geologically disturbed areas to be adequately supported.

B) Support during Depillaring

Systematic support rules should be framed by the Manager for the depillaring

panel and then approved by the DGMS. However, a typical support system in the depillaring district with LHDs is given as under:



i) Support of Goaf Edge

Cogs/Chocks with corner props shall be set to all goaf edges at an interval of not more than 1.2m and two rows of props shall be set not more than 0.6m apart in between the cogs.

ii) Support of Slices

3 nos. Roof Bolts of 1.8m length with cement capsules are proposed in a

row at 1.65m spacing for a slice width of 4.5m. Where there is a weak roof in slices, cogs and props shall be set alternatively on both sides of the weaker roof areas. Roof Bolting shall be done at all entrances to the area under extraction and also at an interval of not more than 1.2m. The junctions shall be supported by either rope stitching or roof bolting.

iii) Support of Galleries and Splits The splits will be supported by 4 nos. of roof bolts, 1.8m long, in a row at

1.2m spacing. The spacing between the rows will also be 1.2m.

The support system as mentioned above would provide adequate support density while leaving sufficient clearance for movement of LHDs. This support system is only indicative and will be governed by the Systematic Support Rules approved by DGMS. Conventional Bord and Pillar method of mining with development of pillars by solid blasting and mechanized loading, support of roof by mechanized bolting using quick setting cement capsules has been proposed in this report.

8.4 PRODUCTION PARAMETERS

Keeping in view, the extent of proposed mine, available extractable reserves in the three workable seams and proposed panel configuration, it has been envisaged in this report that 3 districts will be worked simultaneously. The proposed target production in Tawa-III U/G Mine is 1600 tpd (0.48 Mty) from two strike panels producing 600 tpd each and third main trunks panel producing 400 tpd. The production parameters for development and depillaring district to achieve 600 tpd production are as follows:

a) Development District

i) No. of headings - 7

ii) Gallery width - 4.8m



iii) Average seam thickness - 2.00m

iv) Development height - 2.0m

v) Specific gravity - 1.55

vi) Pull per blast - 0.9m

vii) Coal per blast - 4.8 x 2.0 x 1.55 x 0.9 = 13.39 t

viii) No. of blasts per shift - 17

ix) Production per shift - 13.39 x 17 x 0.9 = 204.86 (production factor = 0.9)

x) Production per day - 204.86 x 3 = 614.6 t (Say = 600 tpd)

b) Depillaring District

i) Size of the pillar - 45m x 45m (centre to centre)

ii) No. of splits - 2 nos.

iii) Width of split - 4.8m

iv) Length of split - (45 - 4.8) = 40.2m

v) Average Height of split - 2.0m

vi) Length of slice - (40.2 - 4.8)/3 = 10.2 m

vii) Width of slice - 4.5m (average)

viii) Height of slice - 2.0m (average)

ix) Specific gravity - 1.55

The depillaring operation is divided into two phases i.e., splitting and slicing

and the production parameters for splitting and slicing operation are as follows:

i) Splitting during initial stage

Coal in one split = 40.2 x 2.0 x 4.8 x 1.55 = 598 t

Coal in two splits = 2 x 598 t = 1196 t

Coal obtained per metre = 1196 / (40.2 x 2) = 14.88 t.

ii) Slicing

Coal in one slice = 10.2 x 4.5 x 2.0 x 1.55 = 142.29 t

No.of slices in one pillar = 18

Coal in slices = 142.29 x 18 = 2561.22 t



Coal obtained per metre = 2561.22/(10.2x18) = 13.95 t/m

During depillaring operation, splitting and slicing are scheduled in accordance

of ratio of coal obtained per pillar for splitting & slicing which are as follows: Splitting : Slicing = 1196 t : 2561 t = 1 : 2.14

i.e, for 600 tpd = 191 t : 409 t Therefore, progress required per day for 600 tpd is:

Splitting = 191t / (14.88 t/m) = 12.84 m per day

Slicing = 409t / (13.95 t/m) = 29.32 m per day

Total Production Keeping in view, the extent of proposed mine and extractable reserves, it has

been envisaged in this Project Report that 3 districts will be worked in two seams at a time to produce 1600 tpd or 0.48 Mty (two 7 headings strike panels producing 600 tpd each and one 5 headings main dips panel producing 400 tpd).

9.0 MINING AND EQUIPMENT SCHEDULE

9.1 MINING SCHEDULE

After the final approval of the Recast Project Report by competent authority, 1 year has been kept for Land Acquisition, Forest Clearance and EMP Clearance etc. After Acquisition of Land and getting all clearances, Tender and Work Award for inclines & airshaft, drivage of inclines (Length of Incline - 1 & 2 = 799m & 803m upto Seam-IA crossing L.W.S. & Bagdona Seam) and Sinking of Airshaft (Depth = 115m upto L.W.S.) will be completed in 2 years time period i.e., from 2nd year to 3rd year. In 4th year, development of five nos. of main trunk headings in Lower Workable Seam is proposed producing about 0.12 Mty from one LHD district. In 5th year, development of five nos. of main trunk headings in Lower Workable Seam & Bagdona Seam and panels in Lower Workable Seam is proposed producing about 0.30 Mty from two LHD districts. In 6th year (target year), development of main trunk headings and panels in Lower Workable Seam & Bagdona Seam is proposed producing about 0.48 Mty from three LHD districts.

The target production of 0.48 Mty will continue from 6th year to 18th year of



mining operation. In 19th year and 20th year of mine operation, the production from the mine will taper down to 0.443 Mty and 0.063 Mty respectively.

The Liquidation Plan showing year-wise and panel-wise coal extraction during development and depillaring for the total life is given in the following table:

Year Panel No. of

LHDs

Working Seams

Working Panels

Dev. /

Dep.

Panel Production

(tonnes)

Yearly Production

(tonnes)

Panel-wise GCV

of Coal (k.Cal./kg)

Yearly GCV of

Coal (k.Cal./kg)

Yearly Grade

of Coal

1 Land Acquisition for Mine Entires & Infrastructure under All/Surface Rights (7.65 Ha.), Forest & EMP Clearance etc.

2 - 3

Land Acquisition Continued for underground mine workings, Tender and Work Award for Inclines & Airshaft, Drivage of Inclines (Length of Incline - 1 & 2 = 799m & 803m upto Seam-IA crossing L.W.S. & Bagdona Seam) and Sinking of Airshaft (Depth = 115m upto L.W.S.) proposed to be completed in two years, which also include preparatory works for Development of Main Trunk Roadways, Construction of Fan Drift, Installation & Commissioning of Main Mechanical Ventilator, Laying of Belt Conveyors in belt incline and Man Riding System etc.

4 PANEL-1 2

LHDs

LWS MD-1 DEV 79724

120000

5299

5371 G7 LWS MD-2 DEV 33836 5537

LWS MD-3 DEV 6440 5394

5

PANEL-1 2

LHDs

LWS MD-3 DEV 34778

300000

5394

5508 G6

LWS MD-4 DEV 34363 5407

BAGDONA MD-1 DEV 50859 5743

PANEL-2 3

LHDs

LWS 1 DEV 41526 5513

LWS 2 DEV 54752 5631

LWS 3 DEV 83722 5372

6

PANEL-1 2

LHDs

BAGDONA MD-1 DEV 15413

480000

5743

5510 G6




BAGDONA 4 DEV 26570 5934

PANEL-2 3

LHDs

LWS 3 DEV 11817 5372

LWS MD-5 DEV 6102 5536

LWS 5 DEV 92271 5226

LWS 5 DEP 69810 5226

PANEL-3 3

LHDs

LWS 4 DEV 129718 5448

LWS MD-6 DEV 29463 5512

LWS MD-7 DEP 20819 5329

7

PANEL-1 2

LHDs

BAGDONA 4 DEV 84203

480000

5934

5492 G7



PANEL-2 3

LHDs

LWS 5 DEP 168076 5329

LWS MD-5 DEP 11924 5536

PANEL-3 3

LHDs

LWS MD-7 DEV 12138 5362

LWS MD-8 DEV 32957 5362

LWS 10 DEV 25110 5362

LWS 10 DEP 69053 5362

LWS 11 DEV 39234 5362

LWS 11 DEP 1508 5362

8

PANEL-1 2

LHDs

BAGDONA MD-7 DEV 14165

480000

5819

5490 G7



BAGDONA 10 DEP 48337 5819


PANEL-2 3

LHDs

LWS MD-5 DEP 4856 5553

LWS 8 DEV 55242 5395

LWS 8 DEP 119902 5395

PANEL-3 3 LWS 11 DEP 106387 5362



LHDs LWS MD-8 DEP 73613 5362

Year Panel No. of

LHDs

Working Seams

Working Panels

Dev. /

Dep.

Panel Production

(tonnes)

Yearly Production

(tonnes)

Panel-wise GCV

of Coal (k.Cal./kg)

Yearly GCV of

Coal (k.Cal./kg)

Yearly Grade

of Coal

9

PANEL-1 2

LHDs

BAGDONA 11 DEV 12810

480000

5819

5544 G6



PANEL-2 3

LHDs

LWS 8 DEP 32014 5395

LWS 6 DEV 85876 5625

LWS 6 DEP 62110 5625

PANEL-3 3

LHDs

LWS MD-8 DEP 17018 5329

LWS 9 DEV 37665 5329

LWS 9 DEP 103579 5329

LWS MD-7 DEP 21738 5329

10

PANEL-1 2

LHDs

BAGDONA 8 DEV 7719

480000

5753

5527 G6



PANEL-2 3

LHDs

LWS 6 DEP 149191 5625

LWS 7 DEV 24011 5113

LWS 7 DEP 6798 5113

PANEL-3 3

LHDs

LWS MD-7 DEP 68893 5329

LWS 3 DEP 111107 5372

11

PANEL-1 2

LHDs

BAGDONA 9 DEV 6505

480000

5819

5533 G6



PANEL-2 3

LHDs

LWS 7 DEP 59233 5113

LWS MD-6 DEP 81024 5512

LWS 4 DEP 39743 5448

PANEL-3 3

LHDs

LWS 3 DEP 87718 5372

LWS 2 DEP 92282 5631

12

PANEL-1 2

LHDs

BAGDONA 6 DEV 50988

480000

5840

5600 G6


PANEL-2 3

LHDs LWS 4 DEP 180000 5448

PANEL-3 3

LHDs

LWS 2 DEP 2976 5631

LWS 1 DEP 50754 5513




13

PANEL-1 3

LHDs

BAGDONA 6 DEP 95057

480000

5840

5595 G6



PANEL-2 3

LHDs

LWS 4 DEP 92392 5448

LWS MD-4 DEP 87608 5407

PANEL-3 2

LHDs BAGDONA 5 DEP 120000 5629

14

PANEL-1 3

LHDs

BAGDONA 7 DEP 8489

480000

5624

5746 G6



PANEL-2 3

LHDs

LWS MD-4 DEP 6890 5407

LWS MD-1 DEP 35079 5299

IA MD-1 DEV 83842 5620

IA MD-2 DEV 32342 5561

IA MD-3 DEV 21847 5878

PANEL-3 2

LHDs


BAGDONA MD-5 DEP 10703 5448





Year Panel No. of

LHDs

Working Seams

Working Panels

Dev. /

Dep.

Panel Production

(tonnes)

Yearly Production

(tonnes)

Panel-wise GCV

of Coal (k.Cal./kg)

Yearly GCV of

Coal (k.Cal./kg)

Yearly Grade

of Coal

15

PANEL-1 3

LHDs

BAGDONA 3 DEP 102657

480000

5941

5922 G5



PANEL-2 2

LHDs

IA MD-3 DEV 6979 5878

IA MD-4 DEV 38136 6440

IA 4 DEV 74885 5661

PANEL-3 3

LHDs




16

PANEL-1 3

LHDs

BAGDONA 2 DEP 59664

480000

6003

5566 G6



IA 1 DEV 41946 5363

PANEL-2 3

LHDs

IA 4 DEV 33691 5661

IA 6 DEV 67797 5227

IA 6 DEP 78512 5227

PANEL-3 2

LHDs BAGDONA 4 DEP 120000 5934

17

PANEL-1 3

LHDs

IA 1 DEV 3007

480000

5363

5638 G6

IA MD-5 DEV 4846 5659

IA 5 DEV 31500 5659

IA 5 DEP 86626 5659

IA MD-5 DEP 13327 5659

IA 2 DEV 40694 5884

PANEL-2 3

LHDs

IA 6 DEP 107930 5227

IA 4 DEP 72070 5661

PANEL-3 2

LHDs



18

PANEL-1 3

LHDs

IA 2 DEV 28459

480000

5884

5797 G6

IA 3 DEV 93409 5933

IA 3 DEP 58132 5933

PANEL-2 3

LHDs IA 4 DEP 180000 5661

PANEL-3 2

LHDs



I-A 2 DEP 44903 5884

19

PANEL-1 3

LHDs IA 3 DEP 160212

443219

5933

5963 G5 PANEL-2 3

LHDs

IA 4 DEP 27455 5661

IA MD-4 DEP 104873 6440

IA 1 DEP 47672 5363

PANEL-3 2

LHDs IA 2 DEP 103007 5884

20 PANEL-1 3

LHDs

IA 1 DEP 28096 62898

5363 5505 G6

IA MD-1 DEP 34802 5620

GRAND TOTAL 7166117 7166117 5625 G6

It can be seen from the above Liquidation Plan that coal production in Tawa-III U/G Mine is proposed to start from 4th year and the target production of 1600 tpd or 0.48 Mty is achieved in 6th year of mine life and will continue till 18th year. From 19th year to 20th year, there will be tapering in production. The production in 19th year and 20th year would be 0.4432 Mty and 0.0629 Mty



respectively as per the proposed liquidation plan.

9.2 SELECTION & SCHEDULE OF EQUIPMENT PROCUREMENT

The schedule of main equipment along with phasing is tabulated as under for ready reference:

Sl. No.

Particulars of Major Equipment

Quantity Yearwise Phasing of Equipment

I II III IV V VI & onwards

1 Low Height LHD 8 nos. - - - 2 3 3

2 Coal Drill 6 nos. - - - 2 2 2

3 Low Height UDM 8 nos. - - - 2 3 3

4 Hydraulic Roof Bolter

6 nos. - - - 2 2 2

5 Multishot Exploder 18 nos. - - - 6 6 6

6 Anchor Testing Equipment

6 nos. - - - 2 2 2

7 Steel for Permanent Support

LS - - - LS LS LS

8 Pony Belt Conveyor

6 sets - - - 2 2 2

9 PVC Belting for Pony Belt

1350m - - - 450m 450m 450m

10 Gate Belt Conveyor 8 sets - - - 3 3 2

11 PVC Belting for Gate Belt (D-3500)

9600m - - - 6120m 2380m 1100m

12 Trunk Belt Conveyor

9 sets - - 2 4 - 3

13 PVC Belting for Trunk Belt (D-5000)

9140m - - - 7500m - 1640m

14 Tugger Haulage 1 no. - - - - - 1

15 Endless Haulage 6 nos. - - - 1 3 2

16 Direct Haulage 1 no. - - - 1 - -

17 Man Riding System (Chair Lift System in Incline)

1 set - - - 1 - -

18 Main Mechanical Ventilator with 300 kW Motor

1 no. - - 1 - - -

19 Auxiliary Ventilator 6 nos. - - - 2 2 2

20 Ventilation ducting, 700mm dia.

600m - - - 200m 200m 200m

21 Fire-fighting, Ventilation & Safety equipment

LS - - - LS LS -

22 U/G Safety Boring Machine

1 no. - - - - - 1

23 Self Rescuers 700 nos. - - 10 230 230 230

24 Twin Bulb Cap lamp with Battery

775 nos. - - 10 275 245 245

25 Portable Magazine 1 no. - - - 1 - -

26 Survey Equipment LS - - LS LS LS -



In addition to the above, capital provision has been kept for Power Supply Arrangement, Workshop, Pumping, Coal Handling and Despatch Arrangement etc. Provision of 6 nos. coal drills has been kept in the report to meet any exigencies in the mine.

10.0 TRANSPORT

10.1 PROPOSED COAL TRANSPORT SYSTEM

There are three workable coal seams i.e., Lower Workable Seam, Bagdona Seam & IA Seam. Two nos. of inclines i.e., Incline No. 1 and Incline No. 2 are proposed. Incline No. 2 will be used for coal transport from underground to surface by belt conveyors and Incline No. 1 will be used for material transport to underground. Three LHD districts will be worked simultaneously for coal production. Transport layout can be broadly divided into face, gate and trunk transport system.

10.1.1 Transport arrangement at Coal Faces

There are three LHD districts proposed for coal production from Tawa-III U/G Mine. In each LHD district, LHDs will discharge coal onto two nos. Pony Belt Conveyors. Pony belt conveyors will be 800 mm wide, 100m long and provided with 22 kW drive. Pony Belt Conveyors will discharge coal onto Gate Belt Conveyors in all the three districts of different seams.

10.1.2 Transport arrangement in Gate Roadways

Gate Belt Conveyors of 800 mm width and 100 tph capacity, working in series will be installed in different seams in the gate route. These gate belt conveyors will receive coal from pony belt conveyors and discharge onto a trunk belt conveyors in different seams.

10.1.3 Transport in Trunk Roadways

Trunk Belt Conveyor of 1000 mm width and 200 tph capacity, working in series will be installed in different seams in the trunk route. These trunk belt conveyors will receive coal from gate belts and brought upto surface. TB1 will be installed partly in Incline No. 2 and rest on the surface and will be used to transport coal from underground to surface. TB1 will discharge coal into double roll crusher. After crushing of ROM Coal to (-) 100mm size, conveyor C1 will discharge coal into overhead twin hopper of 1 x 100 tonne capacity (on surface) for storage of coal. TB1 will receive coal from trunk belt conveyor TB2. TB2 will be installed in Incline No.1 upto IA seam so that it can receive coal from all seams. All trunk belt conveyors are of 1000 mm width. TB1 and TB2 are designed to carry 200 tph capacity and are provided with 2 x 90 kW each.



10.2 MEN & MATERIAL TRANSPORT

A man riding chair lift system will be provided on surface near Incline No. 1 for men transport from surface to underground. In underground, men will travel along side the belt conveyors. In gate roadways, men will travel along side the belt conveyors. One no. of tugger haulage of 37 kW will be provided in the drift from LWS to Bagdona Seam. For material transport from surface to underground, a 150 kW NFLP direct haulage has been proposed on surface near Incline No. 1. Three nos. of endless haulages, each of 37 kW are proposed for material transport in trunk and gate route of Lower Workable Seam. Similarly, one no. of endless haulage of 37 kW capacity is proposed for material transport in trunk route of Bagdona Seam. At the faces, material will be transported manually.

11.0 VENTILATION SYSTEM

It is proposed to ventilate Tawa-III U/G Mine by installing Main Mechanical Ventilator at the Fan Drift of Airshaft, which will be an exhaust type fan. The proposed cross-sectional area of the two reverse intake inclines is 5.5m x 3.5m. An upcast airshaft of 5.5m dia and 115 m depth upto Lower Workable Seam has been proposed in this report, which would act as return airway. In the Approved Project Report (1st Stage Approval), the Return Airshaft was proposed to be driven from Surface to IA Seam with a depth of about 187m. Since Shaft Sinking is a highly cost intensive job and practical difficulties encountered during sinking in such a high depth, it was decided by WCL and CMPDI Officials to propose the sinking of Return Airshaft upto L.W.S. only. To approach the other two seams (i.e., Bagdona & IA Seam) for return air, it was proposed to approach through one Return Staple Pit from Bagdona Seam to L.W.S. and another Return Staple Pit from IA Seam to Bagdona Seam. It is anticipated that the coal seams in the proposed Tawa-III U/G Mine will fall in Degree-II category of gassiness as similar coal seams in the adjacent & nearby mines in Pathakhera area fall in Degree-II category of gassiness. The minimum air quantity requirement in the LVC of the districts is maximum on the basis of coal production (at the rate of 2.5 m3/daily tonne output) i.e., 66.67 m3/sec at the LVC for the 3 working districts together. In addition to this, some air quantity will be required for service places like substation, pumping station etc. Thus total airflow requirement in the LVC of three districts as well as service places has been assessed as 80 m3/sec.



11.1 SPECIFICATION OF MAIN MECHANICAL VENTILATOR As per the simulation study carried out for different stages of Mine operation

in Tawa-III U/G Mine and considering overall VEQ of 60%, the main mechanical ventilator (exhaust type) should be capable of delivering the following air quantities at desired pressure during different stages of mine resistance either by changing the fan blade angle or RPM of fan motor. Details of Air quantity, pressure at fan etc for different stages are given below.

Particulars Stage - I Stage - II

Air quantity 134 m3/sec 134 m3/sec

Air Pressure in Fan 1421.1

(145 mm of WG) 1377.8 Pa

(140 mm of WG)

Estimated Fan motor kW 300 kW 300 kW

This Recast Project Report for Tawa-III U/G Mine is proposing a fan which would cater to the ventilation requirements of all the stages of the mine operation. A motor of 300 kW power has been proposed for the above fan.

11.2 AUXILIARY VENTILATION SYSTEM

Each panel will be ventilated by 2 numbers of auxiliary fans. Thus, 6 nos. of auxiliary fans are proposed for 3 nos. of districts (2 fans in each district) which are capable of discharging airflow of 3 - 6 m3/sec at a pressure of 250 - 60 mm W.G. (with a 15 kW fan motor).

12.0 WATER MANAGEMENT & PUMPING 12.1 WATER ARRANGEMENT FOR HYDRAULIC SYSTEM IN UG

It is proposed to supply clean water from surface sump to the UDMs through a 50mm dia pipe range installed along the main incline and along conveyer roadway to the three LHD districts.

12.2 SOURCE OF WATER

The following are the main source of water in the underground mine:

(i) Seepage of rain water through the overlying strata.

(ii) Seepage due to ground water.

(iii) Water accumulation by water supply to UDM and water spraying system.

12.3 MAKE OF WATER

In absence of hydro-geological data, make of water assumed on the basis of given maximum annual rainfall data by the colliery authority during the development / depillaring of the proposed mine.



(i) Mineable area = 2.0747 x 106 m2

(ii) Maximum total rainfall in a year = 1800 mm

(iii) Rainy season spread over (assumed) = 120 days

(iv) Average daily rainfall = 1800/120 = 15 mm (v) Run off coefficient into ug working = 1/6 of rainfall

(vi) Seepage to UG working = 1/6 x 12 x 2.0747 x 106 x 10-3 m3 = 4.1494 x 106 litres

(vii) Seepage due to ground water = 1/10 x 4.1494 x 106 litres (10% of rain water seepage) = 0.4149 x 106 litres

(viii) Total water accumulated in a day = (4.1494 + 0.4149) x 106 litres

= 4.5643 x 106 litres

(ix) Pumping capacity required for 18 hrs. of operation in a day = (4.56 x 106 ) (18 x 3600) = 70.37 lps

12.4 PUMPING CAPACITY

Pumping capacity from the main sump to surface has been calculated as mentioned in the below given table:

Sl. No.

Particulars Calculated Data

1 Maximum make of water in a day during development by above calculation.

4560 m3/day = 3.17 m3/min

2 Total make of water of the mine 3.17 m3/min

3 Pumping capacity 3.17 x 24/18 = 4.23 m3/min

4 Water accumulated from three UDMs in one LHD district

3 x 12 x 3600 lt.

4 Water accumulated from three UDM in one LHD district

3 x 12 x 3600 lt.

5 Required pumping capacity for the water accumulated by hydraulic equipment in one LHD district

2.0 lps (approx.)

6 Required pumping capacity for three LHD districts

3 x 2.0 = 6.0 lps

7 Total pumping capacity to pump out in 18 hours

70.37 + 6.0 = 76.37 lps

8 No. of pumps of 80 lps capacity 02 (1-working & 1-standby)



Total make of water in the mine has been assessed as 3.17 m3/min and to pump out the mine water, 2 nos. of 80 lps x 200m head pump, 3 nos. of 38 lps x 250m head pump, 2 nos. of 38 lps x 90m head pump and 8 nos. of 11 lps x 30m head pump have been provided in the workable seams in Recast Project Report for Tawa-III U/G Mine.

13.0 COAL HANDLING PLANT & SURFACE DESPATCH ARRANGEMENT 13.1 INTRODUCTION

A small coal handling plant has been proposed near Belt Incline No. 2 to handle the entire production of coal from mine. The CHP will have facilities like crushing to (-) 100mm size, storage and weighment of coal etc. The mode of despatch will be by road with the help of trucks to miscellaneous consumers and / or thermal power station. System capacity of CHP is proposed to be around 2400 t / day.

13.2 SALIENT FEATURES OF CHP

a) Trunk belt conveyor TB1 of 1000 mm width is proposed for transporting

coal from underground to surface through Belt Incline No. 2.

b) Discharging of coal by TB1 into a single roll crusher which crushes the ROM coal to (-) 100mm size.

c) Surface Conveyor (C1) is proposed to discharge coal into a 1 x 100 tonne capacity overhead hopper for storage of coal.

e) Despatch of coal on road by trucks is proposed.

f) Dust suppression and fire extinguisher system.

f) Power supply, illumination and control systems.

g) Civil and structural cost.

h) Weighment of coal with the help of one electronic road weighbridge of 100t

capacity.

13.3 SYSTEM DESCRIPTION

Coal from underground will be brought to Surface by Trunk Belt Conveyor TB1 of 1000 mm wide through Belt Incline No. 2. TB1 will discharge coal into single roll crusher which will crush ROM Coal to (-) 100mm size. The crushed coal from crusher will be collected by CHP Conveyor Belt C1 of 1000mm wide which will transport coal and discharge into 1 x 100t capacity overhead hopper. Trucks will be loaded from below the overhead hopper with the help of hydraulic sector gate provided at the bottom opening of the hopper.



An electronic road weighbridge of 100t capacity will be provided at a convenient location near CHP and used for the weighment of empty and loaded trucks. The weighbridge will have printing facility for keeping records and for preparation of bills. In case there is no off-take and the hopper is full, coal from hopper will be dumped by trucks at a suitable location on ground. These heaps will be liquidated at a later date, as and when possible, by using front-end loaders / pay loaders, available in the project.

14.0 WORKSHOP, STORES & MAGAZINE

The unit workshop at mine level will provide basic engineering support in the form of the repairs, maintenance, replacement of minor spare parts etc. The facilities and manpower provided in this workshop would be sufficient enough to cater to the routine needs of various underground mining machines operating in the project. Washing, greasing, checking of brake system, hydraulic system etc. would be undertaken in the unit workshop. Washing, cleaning & repair of LMVs, assemblies, defective parts etc. is also envisaged. Jobs that shall be carried out in the unit workshop shall be in the form of unit replacement of assemblies or replacement of defective parts. As such, Unit Workshop has been provided with those plant and machineries adequate to support the daily repair and maintenance needs of the project only. Major and capital repairs, overhauls, manufacture of critical spares, reconditioning of assemblies and other works of capital nature would be carried out at Regional Workshop of Area or Central Workshop at Tadali as per requirement. A small but independent unit stores has been envisaged to cater to the routine needs of consumables, spares, POLs, etc of the mine. Unit stores shall have the backing of area and central stores for its smooth functioning.

No permanent magazine has been proposed in this report except one Portable Magazine which will cater to the daily requirement of the mine.

15.0 POWER SUPPLY, ILLUMINATION, AND COMMUNICATION 15.1 SOURCE OF POWER SUPPLY

Tawa-III Underground Mine is located approximately 20 km from Pathakhera Area office of WCL. The mine is being planned for a target production of 1600 tpd or 0.48 Mty from three LHD districts. Two future projects namely Gandhigram and Tawa-III U/G Mines are expected to open in Pathakhera Area which are in close proximity to each other. An integrated approach for power supply has been considered for both these mines.



Presently, the nearest power source of all the mines of Pathakhera Area is Sarni MPSETCL Substation having capacity of 220 / 132 / 33 kV, 60 MVA. The power is fed to all the mines of Pathakhera Area through two numbers of 33 kV feeder namely NCDC Feeder and Shobhapur Feeder. The total contract demand taken through these feeders is 19880 kVA and maximum demand is 17908 kVA. It was pointed out that both the MPSETCL Feeders are very old and giving frequent power outage due to the heavy load attached with these feeders. After discussions with Pathakhera Area Officials, it is proposed to erect a separate 33 kV double feeder overhead line from Sarni MPSETCL Substation to Upcoming Gandhigram U/G Mine. The route of the above line is envisaged which is approximately 16 kms, which requires a detailed survey as the proposed route of the line will pass through MPSETCL Lands (from STPS to Tawa Dam site – about 9 km long), forest land (Tawa Dam to Tawa Bridge – about 1 km long) & Tenancy Land (Tawa Bridge to Gandhigram U/G Mine Site along the approach road / coal transport road – about 5.5 km long). This line will cater to the power requirement of Gandhigram U/G Mine as well as Tawa-III U/G Mine. The capital provision for the above mentioned land requirement has been given in Approved Recast Project Report for Gandhigram U/G Mine. From Gandhigram Substation, 0.5 km long, 33 kV overhead power line is proposed to be extended upto Tawa-III U/G Inclines Site. No additional quarters have been proposed for this project. The existing colonies of Pathakhera Area will cater to the quarter’s requirement of this project. For calculation of power cost, the electricity consumption of 393 quarters has been considered.

15.2 CONNECTED LOAD & MAXIMUM DEMAND

The details of connected load and Maximum Demand of the proposed Tawa-

III U/G Mine and its Township are as given below:

Sl. No. ITEM HEAD Value

1.

CONNECTED LOAD:

a) Only mine 5174 kW

b) Only township 865 kW

c) Total 6039 kW

2.

LOAD IN OPERATION:

a) Only mine 4745 kW

b) Only township 865 kW

c) Total 5610 kW

3.

PROJECTED MAXIMUM DEMAND:

a) Only mine 2644 kVA

b) Only township 636 kVA

c) Total 3280 kVA



15.3 SALIENT FEATURES OF ELECTRICAL PARAMETERS

The salient features of various electrical parameters are shown as follows:

Sl. No.

Particulars VALUE

1.

SPECIFIC ENERGY CONSUMPTION

a) With respect to total load of mine only 33.92 kWh/t

b) With respect to total load of mine + township 36.27 kWh/t

2. SPECIFIC POWER COST (Including township) Rs. 386.04 / t

3. FIXED PERCENTAGE OF POWER COST 46.15 %

4. VARIABLE PERCENTAGE OF POWER COST 53.85 %

5. SPECIFIC DEMAND 6.833 MVA/Mt.

6.

CAPACITOR BANK PROVIDED

a) Only Mine 1800 kVAR

b) Only Township 175 kVAR

c) Total 1975 kVAR

7. AVERAGE COST OF PURCHASED POWER Rs. 10.64 / kWh

16.0 CIVIL CONSTRUCTION

The total life of the Tawa-III UG Mine is about 20 years. As such all-civil works have been envisaged on permanent specifications. The Building Cost Index for the M. P. Region has been worked out to 558 in 2018 (1st half) taking the prevalent rates of materials and labours. This Building Cost Index is with reference to base 100 in Nagpur as on 1.1.1992. Keeping in view the needs and requirements of the mine, provision for service buildings such as Managers Office, Unit Workshop, Unit Stores, Sub-station, statutory and other service buildings etc have been provided.

16.1 RESIDENTIAL BUILDINGS

No quarters have been proposed in this report as the surplus manpower of closing mines of Pathakhera Area will be deployed in the proposed Tawa-III U/G Mine. Accordingly, no colony roads & culverts, drains, etc. have been proposed in this report.

16.2 APPROACH ROAD, COLONY ROAD AND CULVERTS

The coal from the two future underground projects of Pathakhera Area i.e., Tawa-III U/G Mine and Gandhigram U/G Mine is proposed to be transported through the proposed “Integrated Coal Transport Route” i.e., from pit top of each mine to Satpura TPs at Sarni or Miscellaneous Consumers.



The integrated coal transport route will be about 5.5 km long which will start from the end of the existing bridge constructed over Tawa River upto Gandhigram U/G Mine Entries. This road will cater as an approach road to Gandhigram U/G Mine as well as Incoming Power Supply route from STPS, Sarni. The entire capital required for the above 5.5 km integrated approach road is being provided in the Recast Project Report of Gandhigram U/G Mine. Hence no capital for the above 5.5 km road has been considered in this report. An approach road of 0.5 km length is proposed from Gandhigram U/G Mine to Tawa-III U/G Mine. Also, an approach road of 0.3 km length has also been envisaged from the proposed Incline Site of Tawa-III U/G Mine to the proposed location of Airshaft. For approaching different Service Buildings, 0.5 km long Sector Road on Stratum `C’ specification with culverts, tree guards etc has been envisaged.

16.3 WATER SUPPLY AND SEWAGE DISPOSAL ARRANGEMENT

Water supply arrangements have been envisaged for the project site only. For colony, no additional arrangement has been proposed. The total water requirement for project site is 100 kL. Water from bore well has been proposed to be conveyed to ground reservoir by raw water rising distribution pipes. Further, water from ground reservoir has been proposed to pass through chlorination.

However, it is suggested that the source of water may be ascertained after carrying out hydro-geological investigations as regards the quality and quantity of water at project site. To avoid any discharge of effluent into natural water courses, sewage disposal arrangement has been envisaged.

17.0 MANPOWER, PRODUCTIVITY AND TRAINING 17.1 MANPOWER & PRODUCTIVITY

The manpower requirement for the proposed Recast P.R. for Tawa-III U/G Mine for a target production of 0.48 Mty with 3 LHD districts has been assessed keeping in view the location of working districts, work culture and work load norms prevalent in other underground mines of Pathakhera Area. In Option-1, entire manpower required for the mine will be departmental manpower. The manpower has been rationalized for all the underground and surface activities. In this option, the total departmental manpower works out to 729 out of which underground manpower and surface manpower has been proposed as 630 and 99 respectively.



In Option-2, departmental and hiring / outsourced manpower has been rationalized for all the underground and surface activities. In this option, 427 manpower has been kept on departmental basis and 302 manpower has been kept on hiring / outsourcing basis totaling to 729 manpower. The Salary, Wages & Benefits of the hiring / outsourced manpower has been considered as per CIL office order no. CIL/C-5B/JBCCI/HPC/156 dated 09.06.2017 in respect of “Revised Rate of DA for the Contractor’s Workers engaged in Mining Activities”. In addition to the proposed manpower, 13 persons have been considered on hiring for purposes of canteen facilities (3 persons) and security (10 persons). 2 Jeeps, 1 Tipping Truck, 1 Tipper and 2 School Buses along with drivers have also been proposed on hiring. However, the proposed manpower and productivity for a target capacity of 0.48 Mty is tabulated as below:

Sl. No.

Group Name Option-1 Option-2

Strength (Nos.) OMS (t) Strength (Nos.) OMS (t)

1 Underground 630 2.918 368 4.995

2 Surface 99 18.365 59 30.817

Total 729 2.518 427 4.299

17.2 TRAINING

The proposed method of mining in Tawa-III U/G Mine is conventional Bord and Pillar method with mechanized loading by LHDs onto belt conveyors which is common in most of the mines of Pathakhera Area. Hence this manpower is well trained for the proposed mechanization. However, refresher training will be imparted to all personnel connected with operation and maintenance of different machines and for this purposes, services of Vocational Training Centre of Pathakhera Area will be utilized. Supervisory training will be imparted at Supervisory Training Institute, Chhindwara. Some manpower has been proposed to work on contractual basis for which initial training as well as refresher training has to be imparted to all personnel connected with operation and maintenance of different machines and for this purposes, services of Vocational Training Centre of Pathakhera Area will be utilized.



18.0 SAFETY AND CONSERVATION

The report has been drawn up keeping all the safety aspects in view. All the precautions that have been laid in CMR, 2017 under the Mines Act, 1952 and the conditions imposed by DGMS on various operations have to be followed strictly without any deviation.

The coal seams in the proposed Recast Project Report for Tawa-III U/G Mine are expected to be ‘Degree-II’ gassy seams. This assumption is based on the fact that in the operating mines of Pathakhera Area, the coal seams have been classified as Degree-II gassy seams by DGMS. It is necessary that gassiness of the seams should be ascertained just after touching coal seams.

All the precautions laid down for mining problems like inundation, dust suppression, fire & spontaneous heating, roof control and subsidence have to be carefully followed.

18.1 SCIENTIFIC STUDIES

It is necessary to undertake the following scientific studies for proper implementation of this report: - To undertake the physico-mechanical properties of rocks for designing the

support system and caving characteristics of the roof strata and cuttability of coal. It will be necessary to determine `Rock Mass Rating' for preparing the support plan so that systematic support rules can be framed.

- To undertake the mapping of the direction of horizontal stresses and its

magnitude, if any. - To undertake the gas survey so that actual gas content of coal is

determined in order to ascertain the actual degree of gassiness of the coal seams.

- To undertake hydro-geological studies for quantifying ground water and to

assess impact of caving on existing ground water regime. This data will also assist in identifying source of water for industrial use.

- To undertake subsidence prediction studies to determine the maximum

subsidence and maximum tensile strain below forest and agriculture land. - To undertake cavability study of massive sandstone formation and suggest

the blast hole geometry in case caving has to be induced by blasting from the surface or underground.

Adequate capital provision for conducting the above mentioned studies has been kept in the report.



18.2 GENERAL PRECAUTIONS

- Trailing cables of mobile equipment like LHDs etc. get cut quite frequently

due to various reasons. The cable joints have to be vulcanised. Continuity of insulation of the cable, after every vulcanisation should be tested and the insulation resistance recorded.

- All equipment in the LHDs is electro-hydraulically operated. All provisions

and guidelines stated in DGMS Technical Circulars regarding use of high pressure hydraulic hoses in underground coal mines" should be strictly followed.

- Quality of roof bolting consumables plays a critical role in the efficacy of

roof bolting. Quality control must be exercised at the mine level by carrying out short encapsulation tests, etc.

- A Safety Management Plan should be prepared by the Mine Management

taking into account the risks involved in various operations and the control measures to be adopted to obviate the risk.

The risks should again be rated after applying the control measures to ascertain the activities which require close monitoring and preventive actions. The Safety Management Plan is a rolling plan to be prepared by a team of personnel related to the job. The approach should be non-judgemental and the control measures should be agreeable to all persons at the grass root level for proper compliance.

18.3 CONSERVATION OF COAL

- All the three workable seams namely Lower Workable Seam, Bagdona

Seam and IA Seam (having thickness more than 1.5m) have been considered for exploitation of coal in the proposed Tawa-III U/G Mine.

- Tawa-II Extension Geological Block is characterised by the presence of a

number of faults and dykes. Therefore, Tawa-III U/G Mine has been so designed that most of the major faults and dykes have been made northern or southern boundary of the mine and only a small fault (F9- F9) falls within the mine area. Thus coal losses due to faults and dykes have been minimized.

- The strike length of the proposed mine is very limited. Panels have been

proposed along the strike direction and sub-panelisation is not required due to limited length along the strike. This avoids coal loss in sub-panelisation.

- In the pillars falling within the safety barriers of surface features such as

mine entries and surface infra-structure, partial extraction methods can be adopted with due permission from DGMS based on subsidence prediction studies to further conserve the coal.



19.0 ENVIRONMENT MANAGEMENT The Recast Project Report for Tawa-III U/G Mine is being prepared on Bord & Pillar method of mining in conjunction with caving for a Normative Capacity of 0.48 Mty and a Peak Production Capacity of 0.60 Mty. Tawa-III U/G Mine is a new mine. The Ambient Air Quality, Water Quality, Noise Levels, Flora & Fauna, Micrometeorological Data and Socio-Economic status in core and buffer zone will be determined on the basis of Base line data generation. Quality monitoring of Ambient Air, Mine Effluent Quality, Noise Level etc at neighbouring existing Tawa-II U/G Mine has been carried out and found to be within the permissible limit and does not carry significant pollution. It is anticipated that same scenario will hold good for Tawa-III U/G Mine also.

19.1 IMPACT ON LAND USE

The Total Land required for the project is 207.470 ha, out of which 127.466 ha is Forest Land, 6.316 ha is Government Land and rest 73.688 ha is Tenancy Land. Out of this total land of 207.47 ha, 1.10 ha will be acquired under Surface Rights, 6.55 ha will be acquired under All Rights and balance 199.82 ha will be acquired under Mining Rights.

This being an underground mine, minimal degradation of surface features is anticipated. The plantation is likely to be carried out along the transportation route and no change is anticipated in the post mining land use pattern.

19.2 SUBSIDENCE IN TAWA-III U/G MINE

Underground mining with caving has been proposed in Tawa-III U/G Mine and therefore Subsidence Prediction Studies are proposed to be carried out to assess the subsidence on surface due to underground mining and its impact on surface features like forest, road, mine infrastructure etc. The surface topography is hilly in the eastern part and flat in central and western part and is overlain by Asir Reserve Forest. To study the impact of subsidence on surface, it is proposed to carry out subsidence prediction studies by involving a scientific agency. Based on the results of study, certain modifications may be made in the report. It is suggested to generate subsidence related data while working. The generated data can be utilised for calibrating the subsidence model for accurate prediction of subsidence and its related damages. Based on the recommendations of subsidence study, the coal sterilized within the safety barriers against mine entries can be partially or fully released for extraction. For the subsidence prediction studies, necessary fund provision has been kept.



19.3 CAPITAL & REVENUE COSTS

In addition to the Capital Cost of Rs. 70.80 Lakhs, Revenue Cost of Rs. 6.00 per tonne of coal produced has been considered for the entire mine life for plantation & green belt development, environmental monitoring, social development, for the mitigation of environmental impacts and miscellaneous pollution control measures.

20.0 MINE CLOSURE PLANNING As directed through memorandum No. 55011-01-2009-CPAM of Government of India, Ministry of Coal, Shastri Bhawan, New Delhi dated 27/08/2009, Mine Closure Plan has to be enclosed with all PRs / EMPs. In the Annexure to this memorandum, guidelines for preparing the Mine Closure Plan and assessing the capital cost of mine closure have been specified.

Mine Closure cost has been computed based on the recent guidelines circulated by Government of India, Ministry of Coal, Shastri Bhawan, New Delhi. The closure activities will include subsidence survey for a period of 3 years after mine closure, filling of subsidence cracks, fencing of caved out area and post-project monitoring for a period of 3 years after mine closure. Taking the recent guidelines into consideration, the Mine Closure Cost in this Recast Project Report for Tawa-III U/G Mine works out to Rs. 6.34/t. Considering first year of the project as 2018-19, the mine closure cost has been calculated as follows:

CALCULATION OF MINE CLOSURE COST

1 Total Area of the Mine (ha) 207.47

2 WPI value as on August 2009 (Base WPI) 83.02

3 WPI value of current available month (Dec’ 2017 - Provisional) 115.7

4 Ratio of WPI (December 2017 : August 2009) - [(4) = (3 å 2)] 1.393640087

5 Amount to be considered for underground (Rs. / ha) 100000

6 Total Mine Closure Corpus Fund for 2017-18 (Rs. 000s) - [(6) = (1 x 4 x 5)]

28914

7 Total Life of Tawa-III U/G Mine (Years) 20

8 Annual Mine Closure Cost for 2017-18 (Rs. 000s) 1446

9 Annual Mine Closure Cost for 1st year of the project (2018-19) With escalation @ 5% per annum (Rs. 000s)

1518

The annual mine closure cost with 5% annual escalation for proposed Tawa-III UG mine is tabulated below:

YEAR Amount per Year

(Rs. 000s) Production

(Mt) Amount (Rs. / t)

1 (2018-19) 1518

Revenue Expenditure Capitalised 2 1594

3 1674



YEAR Amount per Year

(Rs. 000s) Production

(Mt) Amount (Rs. / t)

4 1758 0.120000 14.65

5 1846 0.300000 6.15

6 1938 0.480000 4.04

7 2035 0.480000 4.24

8 2137 0.480000 4.45

9 2244 0.480000 4.68

10 2356 0.480000 4.91

11 2474 0.480000 5.15

12 2598 0.480000 5.41

13 2728 0.480000 5.68

14 2864 0.480000 5.97

15 3007 0.480000 6.26

16 3157 0.480000 6.58

17 3315 0.480000 6.91

18 3481 0.480000 7.25

19 3655 0.443219 8.25

20 3838 0.062898 61.02

Total 50217 7.166117 7.01

Mine Closure Cost (excluding Revenue Expenditure Capitalised) to be considered (Rs./t)

6.34

From the above table, it can be seen that the Total Amount of Mine Closure Cost Corpus Fund works out to Rs. 5.0217 Crores.

20.1 Activity wise Break-up of Mine Closure Cost

The activity wise break-up of total mine closure corpus fund is shown in the following table:

Sl. No.

Activity % of Total Mine Closure Cost

Amount (Rs. 000s)

A

Dismantling of structures:

Service Buildings 3.50% 1757.60

Residential Buildings 37.58% 18871.55

Industrial Structures like CHP, Workshop, Field Sub-station, Cap lamp room, Haulage, Fan Installation etc.

6.33% 3178.74

B Permanent sealing of mine entries (incline mouth and air shaft):

Sealing of incline mouths and air shafts. 2.32% 1165.03

C Subsidence Management: 1.75% 878.80

D

Landscaping:

Landscaping of the clear land for improving its aesthetics

5.80% 2912.59

E

Plantation:

Plantation over the cleared area obtained after dismantling and on other Barren Spaces.

10.00% 5021.70



Sl. No.

Activity % of Total Mine Closure Cost

Amount (Rs. 000s)

F

Monitoring / Testing of parameters for three years:

Air Quality 3.83% 1923.31

Water Quality 3.34% 1677.25

G Entrepreneurship development (Vocational / Skill Development ) Training for sustainable income of affected people:

4.65% 2335.09

H Miscellaneous and other mitigative measures:

11.60% 5825.17

I Man power cost for supervision: 9.30% 4670.18

Total 100% 50217

21.0 LAND ACQUISITION 21.1 Quantum of type of land

It is proposed to work this mine by B&P method of mining in conjunction with caving. The Total Land involved in this project is about 207.47 hectares (6.550 ha under All Rights, 1.100 ha under Surface Rights and 199.820 ha under Mining Rights) as per the Recast P.R. for Tawa-III U/G Mine. The Acquisition of Tenancy, Government and Forest Land (207.47 ha), the rates of NPV of Forest Land to be acquired under All Rights & Mining Rights and Compensatory Afforestation Charges have been considered as per the data given by Pathakhera Area Officials of WCL (vide letter no. WCL/PK/GM/P&P/130 dated: 30.10.2013). The breakup of land requirement of 207.470 ha is summarized below:

Type of Rights

Govt. Land (ha)

Tenancy Land (ha)

Forest Land (ha)

Total land Requirement (ha)

All Rights 0.491 2.419 3.640 6.550

Surface Rights - - 1.100 1.100

Mining Rights 5.825 71.269 122.726 199.820

Total 6.316 73.688 127.466 207.470

The Total Land requirement for Tawa-III U/G Mine is 207.47 hectares, out of which 6.55 hectares would be acquired under All Rights and 1.10 hectares under Surface Rights. Capital Provision for Tenancy and Government Land to be acquired under All Rights and Surface Rights has been envisaged. The land under all rights, surface rights and mining rights involved in this project has been estimated by Autocad Software and is not from revenue records. Hence the above measurement of land by Autocad may not exactly match with the State Revenue Department records. However, during actual implementation of this report, the data of State Revenue Department land records will be final.



NPV payment for 4.74 hectares of Forest Land under All Rights and Surface Rights has been considered @ Rs. 14.27 lakhs per ha which includes compensatory afforestation charges. NPV payment for 122.726 ha of Forest Land under Mining Rights has been considered @ Rs. 3.14 lakhs per ha.

As the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and resettlement Act, 2013 has come into force, the provision for acquisition of 2.419 ha tenancy land and rehabilitation and resettlement of project affected families have to be carried out as per this Act. The land rate has been considered as per the ready reckoner rate and considering the multiplying factor of 2.0 for rural area and 100 % solatium of the total land value including assets attached to the land. In absence of data for number of Project Affected families, 3 families have been considered as PAFs for 2.419 hectares of Tenancy Land @ 1 PAF per hectare of land. For estimation of compensation as per Schedule-II, Rs. 5 lakh per family has been provided for project affected families.

21.2 Time frame for Acquisition & Capital Provision

Different notifications for Land Acquisition, E.C. & F.C. along with all approvals and acquisition of land for mine entries and surface infrastructure (7.65 ha) are proposed to be done in first year after approval of the project. NPV payment for 4.74 hectares of Forest Land under All Rights/Surface Rights and 122.726 ha of Forest Land under Mining Rights has been considered in second and third year after approval of the project. A capital provision of Rs. 6.3412 Crores has been made for acquisition of land in Recast Project Report for Tawa-III U/G Mine as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and resettlement Act, 2013. This capital provision includes Cost of land & payment of compensation as per "The Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013" for land and NPV of Forest land for proposed Tawa-III U/G Mine which has been considered as 14.27 Lakhs per hectare.

22.0 PROJECT IMPLEMENTATION SCHEDULE 22.1 Once the Recast Project Report is approved, the authorities should take up

the following major activities leading to the achievement of target production: a) Form-1 was submitted to MOEF through MOC letter no. 43011/38/2010

– CPAM dated 04.10.2010.

b) Status as on 01.06.2014 is: EAC meeting for finalisation of TOR was

held on 23.11.2010. TOR issued vide MOEF letter dated 23.12.2010.



Public Hearing was held on 15.12.2011. EMP submitted to MOEF on 03.12.2012. EAC meeting was held on 04.02.2013. Some clarifications were sought and the reply was submitted. EAC meeting was held again on 12.12.2013. The project was recommended for grant of Environmental Clearance subject to submission of Stage-I FC.

c) Land Acquisition for Mine Entries, Approach Road and Surface

Infrastructure. d) Construction of Approach Road upto Mine Entries Site. e) Temporary and Permanent Water & Power Supply Arrangement.

f) Surveying, Locating and Fixing up the Site for Mine Entries.

g) Tender and Work Award for Inclines and Airshaft.

h) Drivage of Inclines and Sinking of Airshaft.

i) Construction of Fan Drift, Fan House and Installation of Main Fan.

j) Development of Main Trunk Headings in Lower Workable Seam (1st

District) with 2 nos. of LHDs producing 0.12 Mty in 4th year.

k) Establishing ventilation connection between the Inclines and Airshaft and Commissioning of Main Mechanical Ventilator.

l) Development of Main Trunk Headings in Lower Workable Seam,

Bagdona Seam with 2 nos. of LHDs (1st District) and Development of panels in Lower Workable Seam with 3 nos. of LHDs (2nd District) producing 0.30 Mty in 5th year.

m) Tendering & Drivage of 3 nos. Drifts in main trunk headings of Lower

Workable Seam (4.8m x 3.0m) crossing Fault F9 - F9 in 5th year.

n) Development of Main Trunk Headings in Bagdona Seam with 2 nos. of LHDs (1st District), Development of panels in Lower Workable Seam with 3 nos. of LHDs (2nd District) and Development of Panel & Main Trunk Headings in Lower Workable Seam with 3 nos. of LHDs (3rd District) to achieve the target production of 0.48 Mty in 6th year after approval of Recast Project Report for Tawa-III U/G Mine.

o) Construction and Commissioning of Coal Handling Plant/Arrangement. p) Construction of Civil Works.

q) Procurement of Plant & Machinery as per phasing given in App-A.3.

r) Scientific investigations.



s) Arrangement to transfer / recruit / train the work force for the operation

of different requirements and also for the construction activities.

t) Any other activity, which may be required for smooth implementation of the project.

The average time frame for drivage of inclines, open cutting and drifting is considered as 50m/month and the average time frame for sinking of airshaft is considered as 10 m/month.

22.2 CONSTRUCTION SCHEDULE

The gestation period of the mine has been assessed as 3 years. This period will be devoted to Land Acquisition, EMP Approval, Clearances, Drivage of Inclines and Sinking of Airshaft etc. These activities are proposed to be completed in first 3 years time. Drivage of inclines and Sinking of airshaft will be completed in 2 years time from 2nd year to 3rd year. The mine will produce 400 tpd or 0.12 Mty in 4th year, 1000 tpd or 0.30 Mty in 5th year and 1600 tpd or 0.48 Mty in 6th year, which is the target year, with 8 nos. of LHDs. The mine will come into revenue from 4th year. The total life and revenue life of Tawa-III U/G Mine is 20 years and 17 years respectively. The year after the approval of Recast Project Report for Tawa-III U/G Mine has been considered as first year. The phasing of production and manpower is tabulated as under:

Particulars I Year II Year III Year IV Year V Year VI Year

Production (tpd) - - - 400 1000 1600

Production (Mty) - - - 0.12 0.30 0.48

Manpower in Option -

1 (Nos.) - 5 15 313 548 729

Manpower in Option -

2 (Only Dept.) (Nos.) - 5 15 183 316 427

23.0 FINANCIAL EVALUATION 23.1 The Recast Project Report for Tawa-III U/G Mine proposes to work by Semi-

mechanised Bord & Pillar method and extraction by caving. The target capacity of the mine has been envisaged as 0.48 Mty or 1600 tpd from 3 nos. of LHD districts. The extractable reserves have been assessed as 7.166 Mt and with a target production of 0.48 Mty, the total life and revenue life of the mine works out to 20 years and 17 years respectively.



23.2 DIFFERENT OPTIONS ENVISAGED IN RECAST PROJECT REPORT

The Recast Project Report for Tawa-III U/G Mine (March 2018) has been prepared with two options which are explained below:

Option-1

Option-1 has been worked out with revised norms of P.R. preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015 and optimization of departmental manpower which works out to 729.

Option-2

In Option-2, updation / preparation of Recast Project Report for Tawa-III U/G Mine has been done taking revised norms of P.R. preparation approved by CIL in its 317th CIL Board meeting held on 13.07.2015 and considering departmental manpower only for certain activities, which works out to 427. Rest all other activities including allied services are to be carried out by outsourcing of manpower, which works out to 302. The Salary, Wages & Benefits of the hiring manpower has to be considered as per CIL office order no. CIL/C-5B/JBCCI/HPC/156 dated 09.06.2017 in respect of “Revised Rate of DA for the Contractor’s Workers engaged in Mining Activities”.

23.3 TOTAL CAPITAL INVESTMENT

The following table shows the Total Capital Investment under major heads required for both the options proposed in Recast P.R. for Tawa-III U/G Mine:

A/c

Head Particular

Option - 1 (Rs. Lakhs)

Option - 2 (Rs. Lakhs)

A.1 Land 634.12 634.12

A.2 i) Service Buildings 693.99 693.99

ii) Residential Buildings - -

A.3 Plant & Machinery 7452.15 7452.15

A.4 Furniture & Fittings 30.00 30.00

A.6 Vehicles 25.65 25.65

A.7 Prospecting & Boring 310.62 310.62

A.8 Development:

A.8.1 Capital Outlay in Mines 4256.85 4256.85

A.8.2 Roads & Culverts 143.60 143.60

A.8.3 Water Supply & Sewerage 141.45 141.45

A.8.4 P.R. Preparation cost 52.88 52.88

A.8.4(A) Env. Pollution Control Expenditure 70.80 70.80

A.8.5 Scientific Research Costs 70.00 70.00

A.9 Net Revenue Expenditure Capitalized during Dev. Period

210.63 217.05

TOTAL CAPITAL INVESTMENT 14092.74 14099.16



23.4 BASIS OF PRICES OF P&M AND CIVIL WORKS

The pricing of P&M is based on the standard price list of August 2017 (updated upto February 2018) circulated by Underground Mining Division, CMPDI (HQ), Ranchi. The Cost of Civil Works has been estimated on the basis of Cost Index of 558 at Madhya Pradesh as on 1st half of 2018.

23.5 OPENING OF REVENUE ACCOUNT

The norms for bringing Coal Projects into Revenue Account, as decided in the meeting held under the chairmanship of JS & FA on 9/6/04 are as follows: 1) Revenue Expenditure to be capitalised should be net of Sales Receipts of

Coal produced during the construction period.

2) The period of construction has to be defined, to determine the Commercial Readiness of the Project to yield on a sustainable basis.

3) In case of Opencast Projects, the volume of Stripping Ratio of OB and in

case of UG Projects, the completion of required developmental activities during the above period of construction have to be clearly defined.

4) Based on the above, the capitalization of revenue expenses / opening of

revenue account will be decided. Accordingly, a definition of the term “ Commercial Readiness “ of a project has been drafted and based on this, a norm for capitalization of revenue expense / opening of revenue expenditure of a project has been suggested as under:

Commercial Readiness:

An underground project will be treated to have reached the stage of commercial readiness to yield production on sustainable basis from the year when all the following criteria have been achieved:

i) Minimum essential mine development works like drivage of main inclines /

adits / drifts / shafts etc., installation of winding arrangements & ventilation arrangement, pit top and pit bottom transport arrangements as required for attaining targeted coal production as per project report have been constructed and commissioned.

ii) In case of projects with B&P method of mining, underground workings have

adequately progressed and adequate number of main mining equipment have been commissioned to enable opening of the first development panel.

In case of projects where production from longwall mining has been

envisaged within the target year, longwall face has been commissioned. In case of mines necessitating stowing for attaining target production, all arrangements of stowing have been completed.



iii) Construction of CHP and railway siding has been completed or adequate

alternative arrangement for sizing and dispatch of coal have been commissioned for the project.

iv) The land required for the project (up to target year) has been acquired.

All the required approvals and the land acquisition for proposed Tawa-III U/G Mine will take 3 years time to bring the proposed mine into commercial readiness for production on sustainable basis. Most of the infrastructural facilities like Approach Road, CHP, Workshop, Service Buildings, Power Supply, Water Supply and other developmental activities required for mine operation are likely to be completed by then.

Therefore, proposed Tawa-III U/G Mine will have cash surplus in the first year of touching coal, i.e., 4th year of mine operation and the mine is proposed to come into Revenue from 4th Year.

23.6 COMPLETION CAPITAL

To arrive at completion cost, the capital expenditure has been estimated / increased for forward escalation on the phasing of initial estimated capital. The escalation is based on WPI/ Civil Index of preceding 36 months.

The completion capital for Tawa-III U/G Mine works out to Rs. 160.0702 Crores and Rs. 160.1417 Crores in Option-1 & Option-2 respectively.

23.7 MANPOWER & O.M.S.

In Option-1, the total manpower requirement works out to 729 for a production capacity of 0.48 Mty with an overall OMS of 2.518t. In Option-2, the departmental manpower requirement works out to 427 and hiring / contractual manpower requirement works out to 302 for a production of 0.48 Mty with an overall OMS of 4.299 for the departmental manpower.

23.8 E.M.S.

The EMS has been estimated considering Initial Basic plus 7.97% as per the decision of 317th CIL Board meeting held on 13.07.2015 with regard to updated estimate for Annual Earnings for Project Planning works. The EMS calculated as per CIL norms for Option-1 and Option-2 works out to Rs. 2858.57 and Rs. 2977.07 (for only departmental manpower) respectively in February 2018. The EMS of both the options has been considered for determining the economics of the project. Provision of contractual manpower has been kept in this report for which calculation of gross salaries, wages & benefits as per approval of High Power Committee of CIL for Contractual Workers engaged in mining activities.



The EMS calculated as per the above recommendations for the contractual workers proposed to be engaged in Tawa-III U/G Mine works out to Rs. 730.43.

23.9 UNIT COST OF PRODUCTION

The following table shows Cost of Production of both options:

Sl. No.

Particulars

Cost of Production (Rs. / t)

Option-1 Option-2

100% Capacity

85% Capacity

100% Capacity

85% Capacity

1 Salaries and Wages 1181.19 1389.64 720.29 847.40

2 Stores 288.35 318.88 288.35 318.88

3 Power 386.04 417.48 386.04 417.48

4 Environment Pollution Control 6.00 7.06 6.00 7.06

5 Miscellaneous Expenses (incl. W/D) 104.11 114.87 107.65 119.04

6 Outsourced Manpower Cost - - 120.13 141.33

7 Mine Closure Cost 6.34 7.46 6.34 7.46

8 Administrative Overhead 159.07 187.14 159.07 187.14

9 Depreciation 231.64 272.52 231.71 272.60

10 Interest on Working Capital @ 14.50% 96.08 109.91 79.78 90.73

11 Interest on Loan Capital @ 11.50% 51.00 59.99 51.00 60.00

Total Cost of Production 2509.82 2884.95 2156.36 2469.12

23.10 GRADE OF COAL & WEIGHTED AVERAGE SELLING PRICE The annual grade of coal despatch during its total life of the mine varies from grade 'G5' to 'G7' depending upon the year wise location of working panels and seams. Considering Rs. 79/t as processing charge for dispatching (–) 100 mm size coal, evacuation charges of Rs. 50/t and 98.5% of the year-wise grade of coal, the weighted average sale price (revised on 09.01.2018) works out to Rs. 2618.55/t and Rs. 2674.92/t for Power Sector and Non-Power Sector respectively.

23.11 PROFIT / LOSS

Option-1 In Option-1, with an average sale price of Rs. 2618.55/t for Power Sector, the mine is expected to make a profit of Rs. 108.73/t at 100% target capacity and incur loss of Rs. 266.40/t at 85% target capacity. In his option, with an average sale price of Rs. 2674.92/t for Non-Power Sector, the mine is expected to make a profit of Rs. 165.10/t at 100% target capacity and incur loss of Rs. 210.03/t at 85% target capacity.



Option-2 In Option-2, with an average sale price of Rs. 2618.55/t for Power Sector, the mine is expected to make a profit of Rs. 462.19/t and Rs. 149.43/t at 100% and 85% target capacity respectively. In Option-2, with an average sale price of Rs. 2674.92/t for Non-Power Sector, the mine is expected to make a profit of Rs. 518.56/t and Rs. 205.80/t at 100% and 85% target capacity respectively.

23.12 FINANCIAL I.R.R. & DESIRED SELLING PRICE TO YIELD 12% IRR

Option-1 In Option-1, the financial IRR of the project with Input Tax Credit on P&M Items for power sector works out to (+) 12.79% and (-) 2.98% at 100% and 85% of target capacity respectively. In this option, the desired selling price to achieve 12% IRR at 100% and 85% target capacity works out to Rs. 2566.06/t and Rs. 2951.11/t respectively.

Option-2

In Option-2, the financial IRR of the project with Input Tax Credit on P&M Items for power sector works out to (+) 24.26% and (+) 13.64% at 100% and 85% target capacity respectively.

23.13 CAPITAL INVESTMENT, PROFITABILITY & IRR

The Total Capital Investment, Profitability and IRR at 100% and 85% capacity utilization is tabulated as under:

Sl. No.

Parameters Option-1 Option-2

100% 85% 100% 85%

1 Total Capital Investment (Rs. Crores) 140.9274 140.9916

2 Total Cost of Production (Rs./t) 2509.82 2884.95 2156.36 2469.12

3 Weighted Average Selling Price for Power Sector (Rs./t)

2618.55 2618.55 2618.55 2618.55

4 Profit / Loss for Power Sector (Rs./t) (+) 108.73 (-) 266.40 (+) 462.19 (+) 149.43

5 Financial I.R.R. with Input Tax Credit on P&M Items (%)

(+) 12.79 (-) 2.98 (+) 24.26 (+) 13.64

6 Desired Selling Price to Yield 12% IRR (Rs./t)

2566.06 2951.11 - -

7

Difference between Weighted Average Selling Price and Desired Selling Price to yield 12% IRR for Power Sector (Rs./t)

(+) 52.49 (-) 332.56 - -



24.0 CONCLUSION In Recast Project Report for Tawa-III U/G Mine, the Financial Evaluation has been worked out for two options namely Option-1 and Option-2, which is enumerated below:

24.1 OPTION-1

The Total Capital Investment works out to Rs. 140.9274 Crores. The Cost of Production works out to Rs. 2509.82/t and Rs. 2884.95/t at 100% and 85% target capacity respectively. With a weighted average sale price of Rs. 2618.55/t, the mine is expected to make a profit of Rs. 108.73/t at 100% target capacity and incur loss of Rs. 266.40/t at 85% target capacity. In this option, the Financial IRR of the project with Input Tax Credit on P&M Items works out to (+) 12.79% and (-) 2.98% at 100% and 85% of target capacity respectively.

In this option, the Desired Selling Price to yield 12% IRR at 100% and 85% target capacity works out to Rs. 2566.06/t and Rs. 2951.11/t respectively.

24.2 OPTION-2

The Total Capital Investment works out to Rs. 140.9916 Crores. The Cost of Production works out to Rs. 2156.36/t and Rs. 2469.12/t at 100% and 85% target capacity respectively.

With an average sale price of Rs. 2618.55/t for Power Sector, the mine is expected to make a profit of Rs. 462.19/t and Rs. 149.43/t at 100% and 85% target capacity respectively.

In this option, the Financial IRR of the project with Input Tax Credit on P&M Items works out to (+) 24.26% and (+) 13.64% at 100% and 85% of target capacity respectively.

24.3 The proposed Tawa-III U/G Project is achieving more than 12% IRR

at 85% capacity in Option-2.

***********

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