pr for malachua ocp (3.0 mty) (updated april cmpdi...
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PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page - S 1
PROJECT REPORT FOR MALACHUA OPENCAST PROJECT (3.0 MTY) (Updated April,2015)
SUMMARISED DATA
Sl. No. Particulars Unit Value
A. GENERAL
1 Name of Project MALACHUA- OC
2 Name of Area / Company/State Johilla Area/SECL/MP
3 Nearest Railway Station from project Name
Km
Badhwabara
9.0
4 Nearest National / State Highway / Approach
Road
Name
Km
The state highway No.78
connecting Katni and
Shahdol passes about 14.8
km due North of the block
B. GEOLOGICAL
1 Name of geological blocks considered Name Malachua. Block
2 Area of the geological blocks(part area) sq. km. 9.22
3 Borehole Density within blocks BHs
/ Sq.km. 8.24
C. TECHNICAL
1 Area of the proposed mine boundary Ha 904.0
2 Borehole density within mine area BHs
/sq. km 8.41
3 Mine parameters (Quarry-wise)
Extent along strike (min. – max.)
Extent along dip (min. - max.)
m
m
2840-3400
3210-3490
Seam Surface
Cover (m)
Area of Development (sq. km.) [As per GR]
Thickness Range (m)
Grade Range (Dominant
Grade)
Borehole Intersection (As per GR)
Borehole Density/ sq. Km.
Geological Reserves (Mt) [As per GR]
Seam-IX
0.10-0.30 - 3 -
Parting 50.95-54.40
Seam-VIIIT
11.00-106.10
1.4756 0.40-4.15
F-B D
20 9.4877 3.6617
Parting 1.00 –4.62
Seam-VIII comb/mid
12.80-96.10
7.8693 0.20-5.35
E-B D
64 8.13 27.5996
Parting 10.80-110.60
1.30-13.19
Seam-VIIIB
11.40-111.80
8.8443 0.09-3.15
G-C D
48 5.4272 17.7133
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page - S 2
Seam Surface Cover
(m)
Area of Development (sq. km.) [As per GR]
Thickness Range (m)
Grade Range (Dominant
Grade)
Borehole Intersection (As per GR)
Borehole Density/ sq. Km.
Geological Reserves (Mt) [As per GR]
Parting 13.60-32.95
Seam-VIIT
0.05-1.80 21
Parting 6.67-19.80
Seam-VIIB
51.35-152.00
8.0706 0.05-2.61
F-A C
65 6.0714 13.6262
Parting 7.70-21.65
Seam-VIT 65.28-158.70
4.4082 0.11-2.26
UG-A D
51 8.8471 6.2749
Parting 0.76-13.90
Seam-VIB 72.02-170.10
6.6555 0.06-2.35
G-B D
66 7.5126 7.9131
Parting 5.65-24.00
Seam-V 0.05-0.80 40
5 Av. Stripping Ratio cum/t 13.78
6 Method of Mining Coal with Surface Miner OB with Shovel – Dumper
7
Target Output
Nominal production capacity (at 100%)
Peak production capacity (at 125%)
Production capacity (at 85%)
Mty
Mt
Mt
Mt
3.0 3.0
3.75 2.55
8 Year of achieving Target Production
(from zero date)
6 th
9 Year of start of Internal Dumping 4th
10 Production Phasing ( from zero date upto target
year)
Mt
Year / Coal Seam Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Coal 0.2 .50 1.00 2.00 3.0
OB 2.30 5.70 11.40 22.70 33.80
Sl. No. Particulars Unit Value
11 Total Mine Life (at Normative production capacity)
Construction Period
Production build-up period
Production period
Tapering / mine closure period
Years
Years
Years
Years
Years
23
1
5
16
1
12 Major HEMM Deployed for Coal Surface miner, Front End Loaders,
Dumper, Dozer
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page - S 3
13 Major HEMM Deployed for OB
Shovel & Dumper Combination
14 Total Manpower Nos 224
15 OMS Tonnes 48.72
16 Weighted average grade of coal Corresponding GCV band
Kcal/ Kg G7 (5200-5500)
17 Presence of Major Surface Constraints (Nallas, road, power line, etc.)
(type) Diversion of Arar Nallah,
Baskati Nallah, road from
Panwari to Shahdol
18 Coal Transport within the mine
(In-pit belt conveying system or by Dumper)
Dumper
19 Surface Coal Transport to Siding/Despatch
Point and Mode of Despatch
Dumper
20 Any Railway Siding and distance Badhwabara siding 9 km away
21 Name of any Specific Customer/Industry Miscellaneous
D. ENVIRONMENTAL & OTHERS
1 Civil Construction Residential houses
(Hutments for outsourced manpower)
Nos. Nos.
124 Nil
2 Water Demand Colony
Industrial
MLD MLD
0.110 0.446
3 Total Land to be acquired Government land
Tenancy land Forest land (type of forest)
Ha Ha Ha Ha
1057.14 221.51 720.03 115.60
4 Land to be acquired within mine area (excavation area)
Government land Tenancy land
Forest land (type of forest)
Ha
Ha Ha Ha
904.00
196.19 592.21 115.60
5 Land to be acquired outside mine area (Beyond Excavation Area, such as, Approach Road, Infrastructure, Colony, etc.)
Ha 153.14
6 Land to be acquired for external dumping Ha Nil
7 Net Present Value of Forest Land
Total Area
Total Value
`Lakhs/
Ha
Ha
`Lakhs
10.0
115.60
1156.0
8 Habitation & Rehabilitation
No. of villages within mine boundary
No. of land oustees
Nos.
Three
999
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page - S 4
No. of PAFs to be rehabilitated 884
9 Cost of land & Rehabilitation
Total Cost of Land
R&R only
`. lakhs
804.61
9462.89
10 Total EMP Capital ` crores 121.41
11 Average annual rainfall mm 1200
12 Total installed pumping capacity lps 1624
13 Any proposed diversion of road or power line Diversion of Panwari-Shahdol
road
E. FINANCIAL Unit Values
1 Total Capital Investment Existing(Gross Block)
Rs. Crores
0
Additional 528.28
Total 528.28
2 Specific Investment Rs. / tonne 1760.92
Rs./cum 127.77
3 Total Capital Investment on P&M Rs. Crores 106.72
4 Specific Investment on P&M Rs. / tonne 355.72
5 Capital requirement upto target year Rs. crores 475.67
6 Earnings per manshift (EMS) Rs. 3058.92
7 Estimated Cost of Production
At 100% production level Rs. / tonne 1353.53
At 85% production level 1407.56
8 Estimated Weighted average selling price Rs. / tonne 1525.00 9 Estimated Profit
At 100% production level Rs. / tonne 171.47
At 85% production level 117.44
10 Financial Internal rate of return (FIRR)
At 100% production level %
22.24%
At 85% production level 12.23%
11 Break-even point
Production Mty 1.92
Production level % 64.10
12 Cost of Outsourcing (average) OB Rs/cum 47.00
Coal Rs/tonne 74.30
Coal Transportation rate Rs/tonne 68.00
13 Mine Closure Cost (for corpus fund) Rs/tonne 27.79
14 Expected Completion Capital (upto target year)
Rs. crores 500.34
*******
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 1
EXECUTIVE SUMMARY
1.1 INTRODUCTION
The Malachua O/C Block is located in the Western part of Sohagpur Coalfield, lies
about 12 km South-West of Shahdol township the district headquarter of Madhya
Pradesh. The area in and around Malachua O/C Block is virgin with no mining activity.
The nearest working U/G mines Birsinghpur, Kudari & Pinoura of SECL, Johilla Area
are located at a distance of 25-30 km. in North-Western direction from Malachua O/C
Block and other working mines of Sohagpur Coalfield, Damini U/G, Rajendra U/G &
Navegaon U/G in the east direction at a distance in the range 35 to 40 Kms.
The area is well connected by rail and road. The Shahdol-Pali road (NH-78) passes
through Marwatola block situated in the immediate north of Malachua O/C block. The
nearest rail head is Badhwabara located 7 km north of the block .The Shahdol station is
located 8 km from Badhwabara and to the opposite side at 29km is the Birsihnghpur
Pali station.These three stations are located on Anuppur-Chirimiri broad gauge line of
South East Central Railway.
MECL has undertaken regional exploration of coal in the years from April 2004 to
April 2005 in West of Shahdol block and subsequently in Marwatola block during the
years April, 2005 to May 2007. As a result of promotional / regional drilling in these
blocks, MECL has established the presence of a total of nine co-relatable seams /
carbonaceous horizons from Seam IV to Seam I in descending order with split sections
of Seam III & II. Out of these seams- IV, III (Top & Bottom) and II (Top & Bottom) are
persistent and have attained workable thickness. Other seams, i.e. Seam IB, IA and I
are not persistent throughout and have attained workable thickness in small patches
only. Qualitatively, the coals of these blocks are high moisture, low rank, high volatile,
non-coking coals with grade varying from D to B.
The data generated during the course of regional (promotional) exploration of coal in
West of Shahdol Block and Marwatola Block by MECL was encouraging and has
established the availability of 111.30 mt within 27.00 sq.km. area & 516.25 mt covering
an area 78.00 sq.km. of indicated category of reserves respectively.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 2
It is further observed that all these coal seams are persistent and continuing
westward & further south into the adjoining Malachua Area.
In order to prove the continuation of coal seams-VIIIT and up to V (as per CMPDI
seam corelation) and to prove their opencast potentiality detailed exploration was taken
up further south of Marwatola block during the years June 2007 to June 2009 by
CMPDI, RI-V, Bilaspur for preparing the present opencast report and named as
Malachua O/C Block.
1.2 MINING ACTIVITIES
The Malachua O/C Block is located in the Western part of Sohagpur Coalfield, lies
about 12 km South-West of Shahdol township the district headquarter of Madhya
Pradesh. The area in and around Malachua O/C Block is virgin with no mining activity
The nearest working U/G mines Birsinghpur, Kudari & Pinoura of SECL, Johilla Area
are located at a distance of 25-30 km. in north-western direction from Malachua O/C
Block and other working mines of Sohagpur Coalfield, Damini U/G, Rajendra U/G &
Navegaon U/G in the east direction at a distance in the range 35 to 40 Kms.
1.3 JUSTIFICATION OF PREPARATION OF PR
This project is identified in XII Five Year Plan for production contribution. The coal
production from Sohagpur Coalfield has to be enhanced. To meet the demand of power
grade coal from the area in the XII Plan, it is essential to open new projects.
1.3.1 CHRONOLOGY OF PREPARATION OF PR
The Final Project Report for Malachua OCP was submitted in September 2012 with
the following two options.
DEPARTMENTAL, OPTION-I:
Mining will be done with the help of departmental shovels and dumpers for OB and
Surface Miners for coal. OB will be extracted by the combination of 42 Elect. Rope
Shovels & 12cum Elect. Hyd. Shovels and 240T & 100T RD. For extraction of coal,
surface Miner with a combination of 6 cum FEL & 45T RD coal body dumper / truck will
be used.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 3
External OB will be dumped within the mine boundary and will be rehandled back
through outsourcing into the mine area.
OUTSOURCING, OPTION-II:
All operations of mining activity of winning of coal and removal of OB will be under
taken through outsourcing. External OB will be dumped within the mine boundary and
will be rehandled back through outsourcing into the mine area.
Another Option, Option-III, with 20 Elect. Rope Shovels instead of 42 cum Elect.
Rope Shovels and 190T Rear Dumper instead of 240T RD has been worked out. In all
the three options selling price of coal was considered as notified price for power sector
consumer. Economic comparison of Option-I & III has been summarized in Annexure-I.
As IRR in both the options was –ve, economic evaluation of outsourcing option with
notified selling price of coal on the basis of Non-power sector consumers was carried
out and found economically viable (i.e IRR > 12%). The same was put up before SECL
Board in June 2013 and accorded In-Principle approval from the SECL Board. The
Board after detailed deliberations agreed with the proposal for operating Malachua OC
Project (3.0 Mty) through Mine Developer-cum-Operator (MDO) route. Economics of the
same has been given in Annexure-III.
As per the guidelines, due to time over run, the outsourcing Option which was
accorded by Board, has been updated and submitted.
Sometimes with favourable geological conditions and improved productivity of the
HEMM with better mining conditions, project may produce upto 1.25 times of the
planned capacity. So, EMP should be prepared for 3.75 Mty, accordingly approval from
the Competent Authority is to be sought.
1.4 DIFFICULTIES AND CONSTRAINTS IN MINING WITH ASSOCIATED RISK
a) The Malachua Block, has a large area (115.60Ha) of forest in patches .The forest
clearance for the forest land would be required for opening of the mine.
b)Two nallas named as “Arar Nalla” flowing from West to North boundary and
“Baskati Nallah“ from south to northeast flow within the mine the Block. Both ultimately
join Son river in Northeast direction .The Arar nallah is a deep nallah & needs to be
diverted .
c) A metalled road to the Shahdol needs to be diverted as it passes through the
mine area.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 4
d) The minetake area involves 3 villages in which about 884 families and 999 land
oustees are involved. These are to be rehabilitated.
2.1 UTILITY OF MARKET FOR THE COAL FROM MINE / PROJECT
Liberalisation of power sector by Government of India has generated wide spread
interests for private and public sector investments in power generation. As such, there
is an appreciable increase in the number of upcoming new projects in both private and
public sectors. Malachua OC is a new project & grade of coal is grade „D‟ and
equivalent GCV of „G9‟ band (4600-4900 Kcal/Kg). Preparation of PR for Malachua
Opencast with enhanced coal production is, therefore, proposed with a view to fulfill the
above indicated growth in demand.
3.1 LOCATION
The Malachua Block about 12 km south-west of Shahdol township the district
headquarter of Madhya Pradesh is bounded by latitudes 230 14' 27" to 230 16' 23 N
and longitudes 810 12' 41" to 810 15' 46" E. The block area is covered in the Survey
of India Toposheet No.64 E/7 (RF 1:50,000).
3.2 ACCESSIBILITY AND COMMUNICATION
The Johilla area is well connected by rail and road. The Shahdol-Pali road (NH-78)
passes through Marwatola block situated in the immediate north of Malachua O/C
block. Badhwabara Station is the nearest railway stn (about 7km). A metalled road to
Shahdol also passes through the Block.
4.1 BLOCK BOUNDARY
The geographical block boundary of Malachua OC Block has been defined as
below:
North: An arbitrary line passing 200m north of borehole Nos.CSML-99,100,95, 97,
98, 104, 105, 58, 67, 76 and 66.
South: Fault line F2-F2.
East: An arbitrary line passing 200m north of borehole Nos. CSML-65, MSM-65,
CSML-31, 19, 20 and 41
West: Eastern forest‟s limit line.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 5
The block measures 9.22 sq. km which includes 8.048 Sq. km. non forest area and
1.172 sq km forest area.
4.2 SEQUENCE OF COAL SEAMS AND PARTING WITHIN BLOCK AREA
Sequence and brief description of Coal Seams.
Seam Surface
Cover (m) Area of Development (sq. km.) [As per GR]
Thickness Range (m)
Grade Range (Dominant Grade)
Borehole Intersection (As per GR)
Borehole Density/ sq. Km.
Geological Reserves (Mt) [As per GR]
Seam-IX
0.10-0.30 - 3 -
Parting 50.95-54.40
Seam-VIIIT
11.00-106.10
1.4756 0.40-4.15
F-B D
20 9.4877 3.6617
Parting 1.00 –4.62
Seam-VIII comb/mid
12.80-96.10
7.8693 0.20-5.35
E-B D
64 8.13 27.5996
Parting 10.80-110.60
1.30-13.19
Seam-VIIIB
11.40-111.80
8.8443 0.09-3.15
G-C D
48 5.4272 17.7133
Parting 13.60-32.95
Seam-VIIT 0.05-1.80 21
Parting 6.67-19.80
Seam-VIIB 51.35-152.00
8.0706 0.05-2.61
F-A C
65 6.0714 13.6262
Parting 7.70-21.65
Seam-VIT 65.28-158.70
4.4082 0.11-2.26
UG-A D
51 8.8471 6.2749
Parting 0.76-13.90
Seam-VIB 72.02-170.10
6.6555 0.06-2.35
G-B D
66 7.5126 7.9131
Parting 5.65-24.00
Seam-V 0.05-0.80 40
4.3 DESCRIPTION OF INDIVIDUAL COAL SEAMS
4.3.1 SEAM-IX
Seam IX is the top most / first seam from the surface, within the Barakar Formation
in the block.No splitting in this seam is observed in the block area.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 6
Minimum parting in respect to Seam VIIIT down below is 50.90m (CSML-39)
whereas the maximum parting is 54.40m (CSML-101).
The maximum thickness of the seam in borehole No CSML101 is 0.30m and the
minimum thickness is 0.10m in borehole No CSML-39 in the eastern part of the block.
This seam is encountered only in peripheral boreholes of eastern margin of block only,
suggests that the basin had probable low lying void area due to plunge in the east
southeastern part available for coal deposition at later stage.
4.3.2 SEAM – VIII TOP
It is observed that minimum thickness of 0.40m is intersected in borehole No.CSML-
86 and maximum thickness of 4.15m is intersected in borehole No CSML-29. The
average thickness of seam varies between 1.00m and 3.50m. Since Seam VIIIT is
having very persistent & workable thickness almost in patches, therefore described in
detail and also considered for assessment of availability of coal reserves. In major part
of the block area, Seam VIIIT is found to occur combined with VIIIM (Lower Seam).
The non-development zones are seen in small isolated patches near BH Nos.
CSML-18, 19 & 47.
4.3.3 Seam Name: VIII T&M (COMBINED) AND VIII MIDDLE
It is observed that the minimum coal seam thickness of 0.20m is intersected in
borehole No.CSML-52 in the south-western part of the block but the maximum
thickness of 5.00m is obtained in B.H. No.CSML-45 in the south-western part of the
block.
In the major part of the block, Seam-VIIIM is the third (from the top) and second
workable coal horizon within the Barakar Formation. The parting of Seam- VIIIM with
Seam VIIIT predominantly consists of argillaceous facies represented by carb shale,
grey shale and sandy shale. The minimum parting between Seam VIIIM & Seam-VIIIT is
1.02m (CSML-97) found in the north-western part of the block and the maximum parting
of 4.62m (CSML-29) in the eastern part of the block. The split section of VIIIM seam
occurs at a minimum depth of 10.80m (CSML-71) from the surface in the north-western
part of the block and at a maximum depth of 110.60m (CSML-101).
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 7
4.3.4 SEAM VIII BOTTOM
The thickness of Seam VIIIB varies from 0.09m in borehole No.CSML-39 in the
eastern part of the block to 3.15m in borehole No CSML-41 in the eastern part of the
block. The average thickness of this coal seam varies from 0.90m to 2.50m. The Seam
VIIIB is developed in entire block. However, it attains unworkable thickness of less than
0.50m in the borehole No CSML-32, 39&47.
The parting of Seam VIIIB with Seam-VIIT varies from 13.60m (minimum) in
borehole No.CSML-75 to 32.95m (maximum) in borehole No.CSML-106. However, the
average parting varies is between 15.0 to 26.0m.
4.3.5 SEAM-VII TOP
Seam VIIT is the 5th from the surface and un-workable seam within the Barakar
Formation in the block.
No splitting in this seam is seen to have been observed in the block area.
Minimum parting between Seam VIIT to VIIIB is 13.60m (CSML-75) whereas the
maximum parting is 32.95m (CSML-106).
The maximum thickness of the seam in borehole No CSML-75 is 1.80m in the
northeastern part of the block and the minimum thickness is 0.05m in borehole No.
CSML-32 & 108 in the east & central parts of the block. This seam is observed
developed in northern part (in northern limb) between borehole Nos.CSML-105 (in the
west) and borehole No MSM-65 (in the East). While, in the southern part (in Southern
limb side) this seam record very low thickness in the range 0.50m to 0.40m in between
bore hole No CSML-7 (in the west) to borehole No CSML-106 (in the east) respectively
4.3.6 SEAM-VII BOTTOM
The maximum thickness of the seam in borehole No.CSML-71 is 2.61m in the west
central part of the block and the minimum thickness is 0.05m in borehole No.CSML-38
in the northeastern part of the block. Grade of coal varies from G to A. Average grade is
C. Reserve estimation is done for Seam VIIB for more than 0.50m thickness range,
irrespective of grade up to E, as desired by mine planners.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 8
However, un-economic zone with low thickness <0.50m is seen in the eastern side
of the block area between BH No CSML-76 (in the north) and BH No CSML-31 (in the
east). Also in the north-western part, two small patches of un-economic zones are
observed near BH Nos (i) CSML-92 & 104 and (ii) near BH No CSML-97. The un-
economic zone is also observed in south-eastern corner near B.H. Nos CSML-
15,22,106 &110.
Further near borehole No CSML-102(south-eastern part) non-development zone is
also seen flanked by un-economic zone.
4.3.7 SEAM-VI TOP
The maximum thickness of the seam in borehole No.CSML-82 is 2.26m in western
part of the block and the minimum thickness is 0.11m in borehole No.CSML-75 in the
north-eastern part of the block. Grade of coal is un-graded to A. Average grade is D.
Hence reserve estimation is done for Seam VIT for the small patch of thickness more
than 0.50m irrespective of grade up to E, as desired by mine planners.
4.3.8 SEAM-VI BOTTOM
The maximum thickness of the seam in borehole No CSML-8 is 2.35m in the east
central part of the block and the minimum thickness is 0.06m in borehole No.CSML-15
in the southeastern part of the block. Grade of coal is G-B. Average grade is D. Hence
reserve estimation is done for Seam VIB for the small patch of thickness more than
0.50m irrespective of grade up to E as desired by mine planners.
4.3.9 SEAM-V
Seam V is the bottom most and 9th coal seam from the surface, within the Barakar
Formation in the block.
No splitting in this seam is observed in the block area. Minimum parting in respect to
Seam VIB is 5.65m (CSML-31) whereas the maximum parting is 24.00m (CSML-62).
The maximum thickness of the seam in borehole No CSML-4 is 1.0m in the southern
part of the block and the minimum thickness is 0.05m in borehole No CSML-31 in the
eastern part of the block. Although, the seam is encountered in almost all the boreholes
(66 Nos.) yet with very low un-workable thickness (<0.50m) in the entire block area,
hence Seam V is not considered for reserve estimation.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 9
5.2 MINE BOUNDARIES
1. Horizontal Mine Boundary (with justifications)
East –: Along the Geological Block Boundary which is a line passing 200m north
of borehole Nos. CSML-65, MSM-65, CSML-31, 19, 20 and 41
West- Along the Geological Block Boundary
North- Along the Geological Block Boundary which is a line passing 200m north of borehole Nos. CSML-99, 100, 95, 97, 98, 104, 105, 58, 67, 76 and 66.
South- Along the Geological Block Boundary which is a Fault line F2-F2. The area beyond boundary of the South side is not explored.
5.1 MINEABLE RESERVES
The mineable reserves have been estimated by Iso-chore method from the seam
extent plans of different seams given vide drawing No. RV/MIN/X00595-600. The
estimation of reserves is based on a minimum mineable seam thickness of 0.5 m.
A geological loss of 10% and a mining loss of 10% have been considered in the
estimation of mineable reserves. The volume of OBR has been estimated by iso-parting
method from the iso-parting plans given vide drg. no. RV/MOC/X00482 - X00485.
The mining loss of 10% deducted from the mineable reserves has been added to the
total volume of OBR. The total volume of Excavation including Coal & OBR has been
calculated from total iso-excavation plan given vide drawing No RV/MIN/X00608. The
quarry cross-sections have been given vide drawing No. RV/MIN/X00609.
The reserves have been estimated by dividing the whole mine into ten sectors.
5.2 SECTOR & SEAM WISE MINEABLE RESERVES
Seamwise mineable reserves has been tabulated below :- MINEABLE RESERVES (Mt)
SECTOR VIII T VIII Comb/mid VIII B VII B VI T VI B TOTAL
SEC-1 0.53 1.95 1.78 1.23 0.30 0.40 6.18
SEC-2 0.24 2.28 1.87 1.27 0.56 0.41 6.63
SEC-3 0.38 2.21 1.82 1.66 0.97 0.57 7.61
SEC-4 0.22 1.08 0.86 1.25 0.46 0.33 4.20
SEC-5 0.26 1.36 1.22 1.01 0.21 0.40 4.46
SEC-6 0.02 2.30 1.29 0.87 0.27 0.49 5.24
SEC-7 0.16 3.32 1.49 1.19 0.26 0.66 7.09
SEC-8 0.49 2.81 1.19 0.85 0.11 0.77 6.21
SEC-9 0.28 2.22 0.90 0.44 0.08 0.53 4.44
SEC-10 0.30 2.65 1.22 0.42 0.06 0.82 5.48
TOTAL 2.87 22.17 13.64 10.20 3.28 5.38 57.54
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 10
VOLUME OF OB (Mcum)
SECTOR TOP OB
VIII COMB-VIII M
VIII M-VIII B
VIII B-VII B
VII B-VI T
VI T-VI B
TOTAL
SEC-1 29.67 0.44 4.86 26.20 7.10 2.09 70.35
SEC-2 29.61 0.32 2.89 26.97 8.53 3.07 71.38
SEC-3 40.10 0.54 4.62 36.05 12.38 5.53 99.20
SEC-4 25.87 0.33 2.92 23.72 9.94 2.30 65.08
SEC-5 28.15 0.26 2.90 26.63 9.28 2.22 69.42
SEC-6 26.94 0.18 3.43 26.69 7.27 2.26 66.77
SEC-7 37.39 0.35 6.03 35.94 11.79 2.77 94.27
SEC-8 39.28 0.59 6.01 31.47 15.02 1.93 94.29
SEC-9 34.32 0.37 4.39 23.12 10.80 2.27 75.26
SEC-10 32.18 0.38 4.88 29.50 13.96 6.08 86.97
TOTAL 323.51 3.74 42.91 286.29 106.04 30.51 793.00
5.3 TARGET OUTPUT & MINE LIFE
The mine is proposed for nominal production 3.0 Mty and peak production of 3.75
Mty is considered as 1.25 times more than normal production. This peak production
may not be maintained on a sustainable basis.
Mine Life The mine life for nominal production is 23 years. The break-up is as under:
Construction period - 1 year
Production build-up period - 5 years
Production period - 16 years
Tapering period - 1 year
Total period - 23 years
6.1 METHOD OF MINING
Conventional Shovel-Dumper system of mining will be used for OB removal and
Surface Miner for mining out Coal.
6.2 MINE PARAMETERS
Sl No. PARTICULARS Unit Value
1 Maximum width along strike
- at surface km 3.40
- at floor km 2.84
2 Maximum length along dip
- at surface m 3490
- at floor m 3210
3 Maximum depth m 165
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 11
Sl No. PARTICULARS Unit Value
4 Minimum depth m 100
5 Area of excavation
- at surface Ha 904
- at floor Ha 692
6 Mineable reserves (Mt) 57.54
7 Total OB (Mcum) 793.00
8 Average Stripping Ratio (cum/t) 13.78
6.3 EQUIPMENT SELECTION
The removal of OB and coal winning will be done by leased equipment. HEMM
have to be provided as per the work load of coal and OBR in different horizons
indicated in calendar programme of excavation.
Overburden will need to be prepared for excavation by carrying out drilling and
blasting operations. The dozers will be used for deployment in the OB & coal benches
and dump yards.
Coal will be won by Surface Miner. No drilling & blasting will be required for
preparation of coal. For coal loading and transport FE Loaders & Dump Trucks will be
deployed.
7.1 MINING STRATEGY / MINING SEQUENCE
The mine would start producing from 2nd year of quarry operation. However, the
bottom most seam i.e. seam VI bottom would be mined in 3rd year by grading properly
the access trench and making its width 30 m wide. The access trench is to be graded at
less than 6.25% to the mine floor of about 410 m R.L.
The box cut is developed in such a manner so as to facilitate the proper
drainage of water towards the sump. This would also facilitate extension of coal and OB
bench for full development of mine. After creation of sufficient decoaled area, internal
backfilling of OB will be started in the 4th year.
The coal production will continue from the 2nd year of mine life and the target coal
production of 3.0 Mty will be achieved in the 6th year. The target OB removal will be
achieved in the 7th year of mine operation.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 12
7.2 DUMPING STRATEGY
In the initial years OB quantities will go to the external dumps inside the excavation
area. Internal dumping will start from the 4th year onwards. The parting OB in case of
older seams may be transported through central haul road, while mining in the multi
seam zone.
Initially, the soil/alluvium from top bench of OB will be stacked and stored
separately. The spoil dump benches in the internally backfilled OB will be in the form of
benches. With the sufficient advance of coal production bench, the backfilled OB will be
leveled with dozer. Dumper/Tipper will transport soil/alluvium OB from the top OB bench
and will dump the soil directly on the leveled backfilled OB.
The slope stability study should be done. According to study report, the dump design
like dump bench height, total dump height & slope etc. should be modified to avoid
dump failure. In addition to that proper precautions should be taken to avoid sliding of
internal OB bench.
A 124.20 Mcum OB will be externally dumped within quarry area(50m beyond 12th
year position) from 2nd year to 10th year. From 13th year to 20th year the external dump
will be rehandled back as internal dump in the decoaled area.
Box cut and initial external OB are proposed to be dumped within quarry area to
keep the land requirement bare minimum. The OB so dumped is proposed to be
rehandled back to the internal dump. More agricultural land is required if external dump
is kept outside quarry area and there will be additional impact from environmental point
of view. Site of external dump has been proposed within the quarry boundary area
to save forest land as well as tenancy land beyond quarry excavation area.
In case of external dump, spoil bench height will be kept 45 m. The break-up of
OB quantity to be accommodated in various dumps is as follows:-
Dump OB accommodated in Mcum 1. Total dump 793.00 2. External dump (within) Quarry area 124.20
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 13
8.1 ANNUAL PRODUCTIVITY OF HEMM
The PR has been formulated to win coal by Surface Miner & OB by Shovel Dumper
combination. For OB & coal year-wise lead has been estimated and based on that
average lead for OB removal & coal extraction is estimated to 3.0 Km & 4.0 Km
respectively.
Both winning of coal and extraction of OBR will be done through outsourcing. The
Annual productivity of outsourced HEMM will depends on the size of deployed HEMM.
8.2 CALENDAR PROGRAMME OF EXCAVATION
The summarised calendar programme of excavation is given in following table. The
mine will be advanced towards dip direction exposing the floor of VI (Bottom) Seam
along the sectors shown in the final stage quarry plan. The targeted level of the
production will be achieved in the 6th year. First year has been taken as the
construction period during which there will be no coal production. From 2th year
onwards coal production will be increased till 6th year to meet the targeted production of
3.0 Mty.
The peak natural volume of OB at targeted level of production has been estimated
as 50.84 Mcum/year. The mine will be operated with almost natural OB throughout the
life of the mine. No advance stripping of Top OB will be done.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 14
CALENDER PROGRAMME FOR MALACHUA OC (3.0 MTY)
YEAR TOTAL COAL
8T 8(COMB/MID)
8B 7B 6T 6B TOP OB
NATURAL TOP OB
PLANNED 8COMB-
8M 8M-8B 8B-7B 7B-6T 6T-6B
TOTAL OB NATURAL
TOTAL OB PLANNED
SR RE-
HAN- DLING
1 CONSTRUCTION PERIOD
2 0.20 0.02 0.06 0.06 0.04 0.01 0.01 0.96 0.98 0.01 0.16 0.85 0.23 0.07 2.28 2.30 11.50
3 0.50 0.04 0.16 0.14 0.10 0.02 0.03 2.40 2.41 0.04 0.39 2.12 0.57 0.17 5.69 5.70 11.63
4 1.00 0.08 0.32 0.29 0.20 0.05 0.06 4.80 4.81 0.07 0.79 4.24 1.15 0.34 11.39 11.40 11.40
5 2.00 0.17 0.63 0.58 0.40 0.10 0.13 9.60 9.55 0.14 1.57 8.47 2.30 0.67 22.75 22.70 11.29
6 3.00 0.23 0.96 0.86 0.59 0.16 0.19 14.22 14.21 0.20 2.18 12.62 3.51 1.08 33.81 33.80 11.30
7 3.00 0.11 1.03 0.84 0.57 0.26 0.19 13.40 13.49 0.14 1.31 12.21 3.86 1.39 32.31 32.40 10.80
8 3.00 0.11 1.03 0.84 0.57 0.26 0.19 13.40 13.39 0.14 1.31 12.21 3.86 1.39 32.31 32.30 10.77
9 3.00 0.15 0.88 0.72 0.65 0.38 0.22 15.71 15.67 0.21 1.80 14.13 4.84 2.15 38.84 38.80 12.93
10 3.00 0.15 0.87 0.72 0.66 0.38 0.22 15.80 15.81 0.21 1.82 14.20 4.88 2.18 39.09 39.10 13.03
11 3.00 0.15 0.83 0.68 0.76 0.36 0.23 16.94 16.91 0.22 1.93 15.37 5.82 1.95 42.23 42.20 14.02
12 3.00 0.16 0.77 0.62 0.89 0.32 0.24 18.50 18.50 0.23 2.08 16.97 7.08 1.64 46.50 46.50 15.50
13 3.00 0.18 0.92 0.82 0.68 0.14 0.27 18.95 19.02 0.17 1.95 17.92 6.25 1.49 46.73 46.80 15.55 15.50
14 3.00 0.09 1.13 0.78 0.58 0.15 0.27 17.04 17.01 0.14 1.96 16.49 5.12 1.38 42.13 42.10 14.03 15.50
15 3.00 0.01 1.32 0.74 0.50 0.16 0.28 15.41 15.42 0.10 1.96 15.27 4.16 1.29 38.19 38.20 12.69 15.50
16 3.00 0.06 1.39 0.65 0.50 0.12 0.28 15.74 15.69 0.14 2.43 15.22 4.82 1.20 39.55 39.50 13.17 15.50
17 3.00 0.07 1.40 0.63 0.51 0.11 0.28 15.82 15.83 0.15 2.55 15.21 4.99 1.17 39.89 39.90 13.30 15.50
18 3.00 0.14 1.38 0.61 0.46 0.09 0.32 17.18 17.15 0.21 2.70 15.21 5.96 1.07 42.33 42.30 14.10 15.50
19 3.00 0.24 1.36 0.57 0.41 0.05 0.37 18.98 19.01 0.29 2.90 15.21 7.26 0.93 45.57 45.60 15.20 15.50
20 3.00 0.22 1.41 0.59 0.37 0.05 0.37 20.49 20.53 0.27 2.93 15.35 7.27 1.15 47.46 47.50 15.78 15.70
21 3.00 0.19 1.50 0.61 0.30 0.05 0.36 23.18 23.14 0.25 2.97 15.62 7.29 1.53 50.84 50.80 16.88
22 3.00 0.17 1.46 0.66 0.24 0.04 0.44 18.30 18.28 0.21 2.71 16.09 7.60 3.11 48.02 48.00 15.95
23 2.84 0.16 1.37 0.64 0.22 0.03 0.43 16.70 16.68 0.20 2.53 15.30 7.24 3.15 45.12 45.10 15.82
Total 57.54 2.87 22.17 13.64 10.20 3.28 5.38 323.51 323.51 3.74 42.91 286.29 106.04 30.51 793.00 793.00 13.78 124.20
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 15
8.3 DRILLING & BLASTING
OB will be loosened by drilling and blasting to facilitate their excavation. The actual
pattern for drilling and blasting will be decided after field trials. For secondary blasting
10% of additional explosives will be required for OB. SMS explosives should be used
wherever possible. The general pattern for drilling of blast holes will depend upon the
height of the bench and may be designed as follows: -
Height of bench - H
Burden (B) - H/2
Spacing (S) - B*1.25
The suggested drilling pattern is for average mining conditions. These may suitably
be modified during actual mining operations as per the site conditions.
The explosives consumption has been envisaged as 0.30 - 0.35 kg/cum of
excavation for planning purpose.
9.1 PROJECTED COAL QUALITY :
Seamwise, Gradewise ‘Net’ Proved Geological Reserves in Malachua O/C Block, Sohagpur Coalfield.
(Figures in million tonnes) Coal Seam
G R A D E Total
GCV (Kcal/Kg) A B C D E F G
VIIIT 0.0963 1.7661 1.6044 0.137 0.0579 3.6617 5315
VIIIT+M 0.2507 9.7408 12.801 2.1213 0.3733 0.134 25.421
VIIIM 0.3224 1.0422 0.4529 0.3609 2.1784 5377
VIIIB 6.2422 8.2404 2.0209 1.0468 0.1629 17.713 5268
VIIB 0.0015 3.4688 6.1068 2.9688 0.492 0.2153 0.3731 13.626 5549
VIT 0.0963 1.0748 1.3534 1.568 0.853 0.3244 0.005 5.2749 5087
VIB 0.0661 1.0612 2.5113 3.4554 0.649 0.1004 0.0698 7.9131 5413
TOTAL 0.1639 6.2742 28.763 31.091 6.6341 2.118 0.7448 75.789
%age 0.22 8.28 37.95 41.03 8.75 2.79 0.98 100
The average grade will be „D‟. Weighted average GCV has been estimated as 5358
kcal/Kg (G7 Band).
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 16
10.0 WATER MANAGEMENT:
The maximum rainfall in a day is estimated as 148mm from probability curve and total
water collected in a day is estimated as 544451 cum. The number of pumps is estimated
on the basis of total water collected in a day which will be dewatered in 100 hours.
In this report, 7 nos. of 225 lps pumps with 180m head, 2 nos. of 80 lps pump with
100m head, have been provided. In addition to these pumps 2 nos. of diesel operated
pump, two numbers of submersible slurry pumps, 4nos.of priming pumps and 7Nos. of
face pumps have also been provided. Main Pumps will be installed on pontoon to work
efficiently. Main pumps will discharge water to Arar nala and Baskati Nala both ultimately
join Son River in Northeast direction through Musna Nala.
7km long 355.6mm diameter main pipes have been provided for the main pumps,
while 2km long of 273mm diameter and 2km of 219mm diameter pipes have been
provided for slurry, intermediate and diesel pumps.
11.0 COAL HANDLING PLANT AND DESPATCH:
Since the coal will be extracted by surface miners, no crushing arrangement have
been envisaged for this project. CHP has not been provided for any options. The coal will
be directly dispatched to Bhandhwapara Railway siding.
A railway siding has also been proposed for loading of coal to rail wagons nearby
Bhandhwapara Railway station which is around 7km from the project. Wharf wall and rail
weigh bridges shall be provided for loading and weighment of rail wagons nearby
Bhandhwapara Railway station.
2Nos. of truck weigh bridges near pit as well as 1 truck weigh bridge and 1 no.
railway bridge shall be provided over the Railway siding.
12.0 POWER SUPPLY, ILLUMINATION AND COMMUNICATION
The main source of 33 kV power (on DCDS overhead line) for Malachua OCP Project
has been envisaged from 132/33 kV MPEB Substation located at Sahadol at distance of
15 km (approx).
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 17
A surface substation with installed capacity of 2 x 3000 kVA, 33/6.6 kV
has been proposed for feeding pumps, E&M workshop and illumination loads.The
maximum demand and specific energy is 2510 kVA and 3.45 kwh/te respectively.
The following communication facilities have been envisaged for Opencast Project: -
- Administrative communication with voice & data networking
- Mobile communication
- Point to point / multi point radio system
- Lan & internet facility
- Truck dispatching system
13.0 WORK SHOP AND STORES:
A small Unit workshop to cater the maintenance of pumps, power supply
arrangement etc. have been provided along with small store and with Scrap yard in
which coal and OB will be outsourcing.
14.0 CIVIL CONSTRUCTION
The preparation of cost estimates for civil infrastructure is based on prevailing cost
index of the area. The cost index value has been calculated from the market rate of the
area. Considering the prevailing rates of materials and labour in that Area, the cost index
works out to as shown in Appendix- A.2.3 w.r.t. 100 base in Delhi as on 1.10.1976.
The details of capital provision for service buildings, residential buildings, roads and
culverts and water supply & sewerage have been given in Appendix-A.2.1, A.2.2, A.8.2
and A.8.3 respectively.
15.0 SAFETY ASPECTS FOR OUTSOURCING / HIRING OF HEMM / EQUIPMENT
Outside agency deploying HEMM or any equipment in the mine for excavation of
coal shall plan their activities in confirmation with the prevailing statutory provisions as
per Mines Act 1952 and CMR 1957 applicable for safety in opencast mines. However, all
statutory rules, regulations, applicable laws etc. and statutory requirement related to
Govt. licenses, workers compensation, insurance, etc., including minimum wage act for
workers employed by the outside agency shall have to be adhered to.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 18
Rules, if any imposed by local / state / central authorities should also be complied by
leaser of HEMM / equipment and then shall have to supply various protective equipment
viz., helmet, shoes etc. to the workmen at their cost.
All the regulations and schedules of Coal Mines Regulations 1957 relating to
opencast mining have to be adhered to and implemented in order to maintain day to day
safety precautions as per stature.
16.0 Environment Management System
Environment Management System involves two factors:
i) The protective measures to be taken and system to be developed to avoid and
control the pollution during the operation of the mine itself and also for the other
operations related to the mine as well as after closer of the mine.
ii) To comply with the above protective measures and to implement the systems the
capital and revenue provisions involved.
The capital provision made for environment protection; land reclamation measures
and other revenue cost per annum on environmental obligations are to be given.
17.0 LAND REQUIREMENT
The break-up of land to be acquired for the purpose of this report is as follows: -
Area(Ha)
SL. NO.
REQUIREMENT OF LAND
LAND TO BE ACQUIRED
AGRICULTURE LAND
FOREST LAND
GRAZING LAND
WASTE LAND
SURFACE WATER BODY
TOTAL
1 LAND FOR QUARRY 592.21 115.60 26.76 149.68 19.75 904.00
2
SURFACE INFRASTRUCTURE, COLONY,APPROACH ROAD, ETC.
30.00 30.00
3 LAND FOR HOMESTEAD/FAMILY
32.18 32.18
4 SAFETY ZONE 65.64 8.89 13.59 2.84 90.96
5 TOTAL LAND TO BE
ACQUIRED 720.03 115.60 35.65 163.27 22.60 1057.14
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 19
The estimated capital requirement for land acquisition of the quarry has been given in
Appendix-A.1.
18.0 MINE CLOSURE ACTIVITIES & TENTATIVE COST BREAK-UP:
The break-up of some major mine closure activities along with their tentative
estimation of cost in terms of percentages of mine closure cost (stage wise) has been
indicated in Chapter-18. The detailed activity schedule for the „Final Mine Closure Plan‟
would be prepared five years before the intended final closure of the mine along with the
detailed mine closure cost break-up.
Environmental monitoring for three years after closure of mine will be carried out to
evaluate the environmental quality of the area. If needed, proper mitigation measures will
be taken up after evaluating the environmental quality. The funds for this have been
provided in the cost estimate. Before closure of the mine, Area GM will make
arrangement to prepare survey and disposal report and the same will be submitted to
DGMS for acceptance.
19.0 MANPOWER ASSESSMENT
The requirement of manpower at the rated capacity of 3.0 Mt of coal and 50.84 mcum
of peak OB per year has been estimated as 224 numbers resulting in an overall OMS of
49.54t. While estimating the total manpower an additional provision of 15.5% has been
made for leave and sick considering 330 days working.
20.0 PROJECT CONSTRUCTION / IMPLEMENTATION
It is well known fact that for timely implementation of a project, it is essential
that all the activities related with project construction are properly planned, closely
monitored and effectively supervised. All implementing departments have their own
implementation manuals which are followed for monitoring and construction of the
project, so that, man, materials and money are made available to the project in time as
spelt in the project report, with a view to prevent cost and time over-run.
Responsibility for each executive has also been included in the implementation
manual to prevent one from encroaching other's area. Sufficient administrative and
financial power has been defined for key executives to take timely and effective decisions
for the implementation of the project.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 20
All the basic infrastructures like power, township, industrial area, including
stores, workshop, project office etc. are to be developed and provided as per time
schedule.
21.1 OUTSOURCING
Outsourcing has become increasingly attractive for many organizations in recent past.
Businesses irrespective of its size, skill, knowledge and technology are finding
outsourcing mechanism most befitting in terms of cost reduction as well as quality
improvement .With globalization and removal of barriers, outsourcing has created new
opportunities for generation of employment. Today whether it is a canteen services or
security services or courier services or gardening, is no longer one man providing service
to one organization. These are just examples and we can go on listing them but
essentially they are contractor or organizations which provide a specialized service at a
competitive price. The service itself is much better than what an entrepreneur if he
engages workmen on his roll would be able to provide. Further, the quality of the service
is much better and it leaves the entrepreneur to concentrate on its core activity.
Outsourcing will remain in the four front of every business executive mind as a
business strategy that will let their organization to create and sustain business value in
the competitive global market for reduced cost, focus on core business processes,
improve services, enhance skills, and increase competitive advantages.
Growth in outsourcing is expanding to include not only IT functions, but critical
business processes, as well as evolving application areas like enterprise resource
planning and re-business initiatives. Successful companies are incorporating outsourcing
as a key strategy for growth and differentiation. No longer considered merely a tactic for
cutting costs and adding temporary staff, outsourcing is being accepted in board rooms
around the world as a critical success factor for business survival. We need to give as
much attention to managing processes as we have in the past to managing products.
For years, outsourcing was more a matter of “out asking” – hiring outside vendors to
perform specific jobs or manage specific projects within a department of a large
organization. Many things that are done inside the companies are labour intensive.
Those are the kind of work where human being have to intervene in a process and use
decision – making skills – such as interpretation, validation, translation, transliteration or
transformation.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 21
21.2 SCOPE OF WORK PROPOSED TO BE OUTSOURCED
i) Drilling :-
The external agency will prepare the site and carry out blast hoe drilling as per the
pattern decided by the project authorities according to strata conditions and stipulations
of DGMS
ii) Loading and Transportation of coal:-
The work involves loading and transportation of coal to dumping site as per
guidelines of the project authorities or otherwise to suit local conditions. All activities
involving the loading and transportation have been proposed to be done by outside
agencies. All statutory rules , regulation and applicable laws are to be followed including
those related to Govt. licenses , workmen compensation , insurance etc. by the agency to
whom the job has been awarded. Coal has to be transported to and from the site as
decided by the project authorities from time to time in accordance with the requirement of
the project.
iii) OB Removal :-
The work involves excavation of OB and dumping of the same to different dump
locations. This includes construction and maintenance of haul roads for plying of
dumpers/tippers with suitable number of graders and dozers. The leveling of the dumps
is to be carried out by the agency to which the work has been awarded for OB removal.
The site of excavation and dumping is to be decided by the project authorities in
accordance with the requirement of the project. All statutory rules , regulation and
applicable laws are to be followed including those related to Govt. licenses , workmen
compensation , insurance etc. by the agency to whom the job has been awarded.
iv) Accommodation, Site Office, Electricity etc.
Site office may be provided by the company on availability basis, which will be
chargeable. However regarding accommodation and other facilities to persons engaged
by the outside agency has to be arranged by the agency at their own cost.
Electricity to the site office may be provided on chargeable basis. However, electricity
shall not be provided by the company for the equipment to be deployed for excavation
etc. by the external agency.
21.4 ANNUAL WORK LOAD FOR EXTERNAL AGENCY
The annual workload will be as per the calendar programme. Total Coal and OB will
be outsourced.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 22
21.5 BASIS OF CALCULATION OF OUTSOURCING RATES
The rates have been considered based on the prevailing rates at the mines plus
escalation rates table received from SECL. These rates have been considered for
planning purpose only to work out economic evaluation.
Outsourcing cost of OB is determined by escalating the hiring cost prevailed in the
mine itself or the nearest adjacent mine. Generally the cost is escalated from the base
date to as on date in three following heads;
h) Loading of OB
ii) Effect of change in diesel price on transportation
iii) Effect of change in lead on transportation
New rate as on date is arrived by adding all the escalations with the prevailing rate after
making adjustments with respect to taxes which is shown in the following table.
HIRING RATE FOR OB Rate in Rs.
Sl.no. Particulars Base Date
Base Price
of Diesel
Current Price
of Diesel
Escalation due to
change in diesel price
Base Lead, Km
New Lead, Km
Base rate of
hiring of
OB Per
cum*
Old Taxes
%
New Taxes
%
New rate
as on date
1 Loading of OB 18.10.2013 58.94 52.2 -1.69 - -
43.00 12.36 0 47.24
2
Transportation Excalation due to change in diesel price
18.10.2013 58.94 52.2 -0.77
1.03 3.0
3
Transportation Excalation due to change in lead
18.10.2013 58.94 52.2 11.43
RATE OF HIRING OF OB PER CUM (Say) 47
* Base rate is at Dhanpuri OC mine @Rs.43 for a lead of 1.03 Km dated 18.10.2013
Outsourcing rate of coal is also determined as above illustrated methodology with an
additional parameter of „cutting by Surface Miner‟ as coal is extracted by surface miner
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 23
instead of Drilling & Blasting. However, in special circumstance drilling & blasting in coal
may be done with prior approval of competent authority.
HIRING RATE FOR COAL Rate in Rs.
Sl. No.
Particulars Base Date
Base Price of Diesel
Current Price of Diesel
Base Rate Escalation
due to change in
diesel price
Base Lead, Km
New Lead, Km
Old Taxes
%
New Taxes
%
New rate as
on date per
ton
Per cum*
Per tonne
1 Cutting by Surface Miner
June 2014
60.35 52.2 36.85 23.03 -3.18 12.36 17.32
2 Loading of coal** Nov 2013
58.76 52.2
14.35 -0.43 0.00 13.92
3
Transportation Excalation due to change in diesel price **
Nov 2013
58.76 52.2
44.73
-1.75
4.0 4.0 0.00 42.98
4 Transportation Excalation due to change in lead**
Nov 2013
58.76 52.2 0.00
RATE OF HIRING OF COAL PER TONNE 74.30
* Base rate is as per Baroud OC, the nearest prevailed mine @ Rs. 36.85/cum dated June 2014 ** As per Normative rates for transportation & loading applicable to Ex-servicemen Agencies working in SECL
Thus Outsourcing cost of OB and Coal has been considered as Rs. 47/cum
and Rs. 74.30/t respectively. The above outsourcing rates does not included
component of service tax as CENVAT credit is available against it.
The scope of work by outsourcing will include drilling, loading and transportation,
dozing and maintenance of haul roads. All statutory rules, regulations and applicable
laws are to be followed.
21.6 SAFETY ASPECTS FOR OUTSOURCING OF HEMM
Outside agency deploying HEMM or any equipment in the mine for excavation of coal
shall plan their activities in confirmation with the prevailing statutory provisions as per
Mines Act 1952 and CMR 1957 applicable for safety in opencast mines. However, all
statutory rules, regulations, applicable laws etc. and statutory requirement related to
Govt. licenses, workers compensation, insurance, etc., including minimum wage act for
workers employed by the outside agency shall have to be adhered to.
Rules if any imposed by local / state / central authorities should also be complied by
leaser of HEMM / equipment and then shall have to supply various protective equipment
viz., helmet, shoes etc. to the workmen at their cost.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 24
All the regulations and schedules of Coal Mines Regulations 1957 relating to
opencast mining have to be adhered to and implemented in order to maintain day to day
safety precautions as per stature.
Special precaution should be taken while deploying workers in the mine. Before
employing any worker to the mine proper vocation training should be imparted and
recommendations of VIII Safety Conference should be strictly followed. Terms and
conditions shall be fixed by management for deployment of workers by outside agency.
Some of the major aspects are as follows: -
A) For Persons :
i) No persons shall be deployed unless he is trained at VTC.
ii) Records in Form-B, Form-D shall be maintained.
iii) Records of Vocational Training Certificate and driving license of operators shall be
kept by HEMM outsourcing agency and shall be made readily available for inspection by
management.
iv) Salaries shall be distributed in front of management representative.
v) No person shall be employed unless person holds VTC certificate and management is
informed. A record of it shall be maintained.
vi) Adequate supervision shall be maintained by qualified competent persons.
vii) Outside agency shall follow safety guidelines and safety instructions from project
authorities.
B) For Machineries as recommended by DGMS Cir. (Tech.) 1 of 1999 :
i) All the machineries to be deployed in mines should be checked before deployment
by competent authority.
ii) Regular checking of m/c deployed by outside agency shall be done. No unfit
machine shall be deployed before the defect is rectified.
iii) A proper record of repair and maintenance along with inspection done by
management and defect pointed out shall be maintained and signed by authorized
person.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 25
iv) The trucks deployed outside agency shall be provided with audio visual alarms,
proper light for use at night and period when natural light is not sufficient. Also
audiovisual alarms for reversing on trucks shall be provided.
Other precautions for machines
i) RTO certificate photocopies of all vehicles shall be submitted to management.
ii) Daily welding, monitoring, inspection shall be done by the agency‟s mechanic as
directed by management.
iii) Machine manufacturers should be asked to give risk analysis details in respect of
machines deployed by outside agencies.
iv) Suitable type of the fire extinguishers shall be provided in every machine.
C) General :
i) No person / vehicle shall be deployed at any place other than authorized place.
ii) All workers should obey lawful instruction of mine management.
iii) Risk Management Plan of tipper / pay loader shall be made and implemented.
iv) All drivers shall obey systematic traffics rules prepared by management.
v) Before deploying workers, they must be trained and briefed about safety aspects in
opencast mine. However, during course of execution of the work, if any accident occurs
whether major or minor, the matter shall have to be immediately informed to mine
management i.e. Colliery Manager / Agent / GM of Area, so that, notices of accidents in
accordance of (Reg.9 of CMR 1957) and Section 23 of Mines Act 1952 may be given and
other necessary steps may be taken in accordance with the Mines Act 1952.
vi) Outside Agency shall operate transport system in such a way so as to minimize
pollution in the mine.
21.7 CAPITAL INVESTMENT
21.7.1 Capital with phasing
Table No-1
Phasing of capital (Rs. In lakhs)
1st 2nd 3rd 4th 5th 6th 7th Total
capital
2224.93 4345.97 7960.56 6980.37 22369.98 3685.35 5260.45 52827.61
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 26
21.7.2 Basis of price of P&M, Civil works & hiring rate
Price of P&M has been taken from the latest standard price list published by CMPDI,
HQ. Prices have been updated as per escalation rate given in the price list.
The preparation of cost estimates for civil infrastructure is based on prevailing cost
index of the area. The cost index value has been calculated from the market rate of the
area. Considering the prevailing rates of materials and labour in the Area, the cost index
works out to as shown in Appendix- A.2.3 w.r.t. 100 base in Delhi as on 1.10.1976.
21.7.4 Capital Investment
Table No.-2
Sl. No. Particulars Investment
a) Capital upto target year, Crores 475.67
b) Specific investment (Rs. per tonne) 1760.92
c) Specific investment for P&M (Rs.per tonne) 355.72
d) Completion Capital, Crores 500.34
21.8 REPLACEMENT CAPITAL
Year-wise phasing of replacement capital is given in Appendix-D.1 column No.3.
Item-wise head-wise replacement is also given separately in an appendix.
21.9 SOURCES OF FINANCE
The project will be financed completely by internal resources.
21.10 COMPLETION COST
As per the latest guidelines, the completion cost of a project will qualify all the
following conditions:
- Achievement of coal production capacity of 80% of the rated output.
- Completion of all major facilities and initial mine development work.
- Procurement of major and essential plant & machinery.
Completion cost of the project is estimated as shown in the above table .
21.11 METHOD OF ESTIMATION OF CAPITAL COST: a) Land
Rate of revenue, forest and tenancy land are provided by SECL.
b) Civil Construction (alongwith Cost Index)
The preparation of cost estimates for civil infrastructure is based on prevailing cost
index of the area. The cost index value has been calculated from the market rate of the
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 27
area. Considering the prevailing rates of materials and labour in the Area, the cost index
works out to as shown in Appendix- A.2.3 w.r.t. 100 base in Delhi as on 1.10.1976.
c) P&M
Price of P&M has been taken from the latest standard price list published by CMPDI,
HQ. Prices have been updated as per escalation rate given in the price list.
21.12 COST OF PRODUCTION AT DIFFERENT LEVEL OF PRODUCTION
a) Salaries & Wages Cost
The detail of category-wise / scale-wise manpower requirement and year-wise
estimated wages cost is given in Appendix-B.1. Estimated salaries & wages cost is given
in the following table No. 3.
b) Stores Cost
Stores Cost has been estimated taking into account provision for Repair &
Maintenance, POL, Explosive and miscellaneous stores cost. The estimated Stores Cost
has been worked out as shown in the following table No.3.
c) Power Cost
Estimated Energy Consumption is given in the relevant chapter for Power Supply.
The power cost has been taken as Rs.6.0/unit. The average power cost per tonne of coal
production works out to as shown in the following table No. 3 at 100% level of operation.
d) Misc. Expenditure
This cost has been estimated to cover expenditure on Printing & Stationary, Postage,
Telephone, repair & Maintenance of assets other than P&M, Workshop Workshop Debit,
and Insurance & Taxes for vehicles and other repairs and a further provision has been
made for deterioration of coal stock. Miscellaneous expenditure per tonne works out to as
shown in the following table No. 3.
e) Administrative Charges
A provision has been made in total revenue cost estimate for Administrative charges
based on the Admn. Cost per tonne of coal production as was appearing in the last
Annual Report of Coal India Ltd. Total Admn. Cost has been calculated at 100% level
and treated as fixed cost. As such for all other estimated level of operation the absolute
Admn. cost has been taken as it worked out for 100% level of operation. The Admn. Cost
comes to as shown in the following table No.3.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 28
f) Outsourcing cost
Prevailing hiring rate at SECL has been considered. The outsourcing cost of OB and
Coal per tonne at an average lead is as shown in the following table No. 3.
g) Interest on Working Capital
Interest on Working Capital has been calculated on the basis of 4 months operating
expenditure. Rate of interest is taken as 14.50%.
h) Interest on Loan Capital
Interest @ 11.5% on loan capital is to be considered for computation based on given
Debt Equity Mix. However, loan capital in this project is NIL.
i) Mine Closure Cost
Mine Closure Cost as shown in the following table No.3 has been provided in the
project.
j) Depreciation
Straight line method of depreciation has been provided to arrive at Depreciation cost
per tonne of coal production as shown in the following table No. 3
k) Cost of production per tonne at 100% level of production works out to as shown below.
Table No.-3
Sl. No.
Particulars Total Cost
(Rs./t)
a) Salaries,Wages & Benefits 62.79
b) Stores 147.53
c) Power 14.73
d) Misc. exp. incl.w/s debits 192.51
e) Admn. Charges 64.00
f) OB Outsourcing cost 647.74
Coal Outsourcing cost 74.30
g) Int. on wkg. cap @ 14.5% 62.40
h) Int. on loan cap @ 11.50% 0.00
i) Mine Closure Cost 27.79
j) Depreciation 59.74
k) Total Cost 1353.53
l) Environment related Cost 61.98
k) Environment related Cost Environmental related Cost as shown in the above table No.3 has been provided to
absorb in the project.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 29
l) Grade of Coal (Weighted Average) – Grade G-7 , weighted average GCV has
been estimated as 5358 kcal/Kg.
22.13 CALCULATION OF SELLING PRICE
Table No.-4
Sl. No. Particulars
Price (Rs./t)
a) Price as per GCV coal 1400.00
b) Price taken in PR, coal * 1330.00
c) Sizing (-100 mm) 79.00
d) Transport reimbursemet, if any 116.00
e) Total sale price 1525.00
*95% of the grade based on borehole data as per norms.
21.14 Profitability (Profit/Loss) Rs./t - This is margin between cost of production and
selling price per tonne of coal. Specific figure for this project has been tabulated in table
No. 5.
21.15 Manpower - This is the summation of total manshifts employed in various
activities for the operation of the Project. Specific figure for this project has been
tabulated in table No. 5.
OMS - Output per manshift shows the productivity of workers in the Project. It is
defined as the ratio of total coal produced to the total no. of manshift worked during
project life. Specific figure for this project has been tabulated in table No. 5.
21.16 EMS - It shows the cost of labour per manshift required to produce coal. Specific
figure for this project has been tabulated in table No. 5.
21.17 Financial IRR – IRR, Internal Rate of Return, a rate at which NPV (net present
value) becomes zero. This means it is a measurement at which cash outflow is equal to
cash inflow. Specific figure for this project has been tabulated in table No. 5.
21.18 BREAK-EVEN PRODUCTION
Break even production is a point at which total cost is equal to total revenue or where no
profit and loss occures. In other words it is an point at which total fixed cost is equal to
total contribution i.e(Sales Price-Variable Cost)= Fixed Cost. Specific figure for this
project has been tabulated in table No. 5.
PR for Malachua OCP (3.0 Mty) (Updated April’2015) CMPDI
Job No.- 518221 Page – ES 30
21.19 Desired Selling Price: Desired selling price to achieve 12% IRR at 100%
& 85 % level is worked to as shown below.
Table No.-5
Sl.No. Particulars 100% Utilisation 85% Utilisation
1 Profitability, Rs/t 171.47 117.44
2 Financial IRR 22.24% 12.23%
3 Desired Selling Price, Rs./t 1423.72 1506.41
4 Manpower, No 224.00
5 OMS, t 48.72
6 EMS, Rs. 3058.92
7 Breakeven
Percentage 64.10
capacity, tonne 1.92
21.20 Completion IRR: Capital Expenditure has been estimated / increased for forward
escalation on the Phasing of Initial Estimated Capital. The escalation rate is based on
W.P.I. of preceding 12 months.
21.21 Sensitivity Analysis - given in the Appendix-C.4.
21.22 CONCLUSION
The project has been planned with a high degree of mechanisation, in line with the
present and forthcoming changes in neighbouring mines as well as in other parts of the
country. The techno-economics have been worked out based on the prevalent norms of
productivity, operating cost, spare consumption etc.
As per the guidelines, a Project is economically viable when it achieves more than
12% IRR at 85% level of Production. As this Option is yielding IRR OF 12.23% at 85%
level of production, the same may be recommended for implementation.
*******