GOVERNMENT URGES COAL BLOCK HOLDERS TO START PRODUCTION
India’s Coal Ministry pushes for production at recently auctioned mines to boost domestic coal production and reduce reliance on imports.
The Centre on Thursday said that it has asked the coal block allottees to take necessary steps to put to production mines that were auctioned recently.
The coal ministry on Wednesday reviewed the status of coal mines that were auctioned and are in different stages of process completion.
“The 71 coal blocks are in various stages of obtaining regulatory clearances. These blocks are distributed across nine states Arunachal Pradesh, Assam, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal,” the Coal Ministry said in a statement.
The meeting was chaired by Coal Additional Secretary Rupinder Brar.
The comprehensive review focused on highlighting the government’s commitment to ramp up domestic coal production.
“This strategic review underscores the Ministry’s proactive approach to addressing hurdles in coal blocks operationalisation in order to meet India’s growing energy needs,” the statement said.
By focusing on these mines, the government aims to maximise domestic resources and reduce dependence on coal imports.
The coal ministry remains committed to strengthening India’s energy security through increased domestic coal production, supporting the nation’s path towards sustainable economic development.
Source: Rediff Money
9 CAPTIVE, COMMERCIAL MINES TO COMMENCE COAL PRODUCTION IN FY25: CENTRE
Nine captive and commercial mines are expected to commence coal production in this fiscal, the government informed on Thursday.
As of August 31, 55 captive/commercial coal mines are in production.
Of these, 33 mines are allocated to the power sector, 12 to the non-regulated sector, and 10 mines are allocated for the sale of coal, according to Coal Ministry statement.
There has been significant growth in coal production and dispatch from captive and commercial mines in the April-August period this year, compared with the same period last year.
The ministry said its efforts have yielded impressive results, with remarkable year-over-year (YoY) growth in both coal production and dispatch from captive and commercial mines.
Coal production increased by 32 per cent, rising from 50.11 million tonnes (MT) in April-August 2023 to 65.99 MT during the same period in the current fiscal.
Similarly, coal dispatch from these mines also showed significant growth of 32 per cent, increasing from 55.70 MT to 73.58 MT this fiscal, the ministry informed.
“These substantial increases in both production and dispatch demonstrate the effectiveness of the Ministry’s initiatives and its commitment to enhancing India’s domestic coal supply and aligns with the broader
national goals of energy sufficiency and economic growth, positioning India for a more secure and prosperous future,” the coal ministry noted. India’s coal production and supply trends for the period from April to August 2024 show a positive trajectory, despite some short-term variations in the month of August, due to above-normal precipitation impacting the mining and mobility.
When it comes to the power sector, the supply reached 338.75 MT, a growth of 4.13 per cent over the 325.33 MT supplied during the same period last year.
As per the official data, coal production has risen steadily in the last four years from 730.9 million tonnes in 2019-20.
Future Outlook:
The steady increase in coal production over the past four years suggests a positive long-term trend. However, the government will need to continuously adapt its strategies to address both domestic energy needs and global environmental standards.
Conclusion:
The developments in India’s coal sector reflect a proactive approach to enhancing energy security and economic growth. However, addressing environmental concerns and the impacts of climate variability will be crucial for sustainable progress in the future.
Source: sarkaritel.com
16 TONNES OF RECOVERABLE GOLD FROM 33 MIL.TONNES @ 0.72G/T. OLD MILL TAILINGS GOLD RESOURCE AT KOLAR GOLD FIELDS.
-DR.V.N.VASUDEV
Gold Mining at KGF: The organized gold mining in Kolar Gold Fields was started during 1880. About 50 million tonnes of ore have been mined and processed. The grade of ore processed varied from 40g/t during the initial years to 4 g/t during the last few years of operation. A total of 800 tonnes of gold was produced till April 2001 when the Ministry of Mines, Govt of India took the decision of closing down all the mines belonging to M/s Bharath Gold Mines Ltd.(BGML). The Mines were spread over the Main KGF in Bangarpet Tq., Karnataka; Chigarigunta, Mallappakonda and Bisanattam in Kuppam Tq., Chittor Dt., Andhra Pradesh; Ramagiri (Yeppamana) Gold Mines in Ananthapur Dt., of Andhra Pradesh and Hosur Mines in Gadag Gold Fields in northern Karnataka. Gold processing operation was carried out at 3 locations. The Processing Plants comprised a Gravity circuit for recovering coarse gold (>75microns) and a Cyanidation Circuit for recovering <75mircons gold). Each of the 3 Processing plants was attached to three different mines namely, (i) Mysore Mines, (ii) Champion Mines, and (iii) Nandidoorg Mines. These mines and mills are spread over 8 km length of the Mining Lease extending fin N-S direction from Robersonpet in the North to Marikuppam in the South. Uninterrupted mining, ore processing & production of gold went on for over 120 years between 18802001 which resulted in piling up of mill-tailings in 15 dumps. The area coverage of these dumps is about 360 acres and is shown in the attached ppt. The following Table presents the locations of 13 tailing dumps.
TAILING RESOURCE AN ESTIMATION: Thirteen out of the 15 tailing dumps are important for commercial operation. They are spread over an area of 8 km x 3 km (See the Annexed ppt). The first tailing dump to be assessed for the gold resource was Kennedy’s dump. It was estimated to contain a total of 9.13 million tonnes of tailings of an average grade of 0.8 g/t gold. All major dumps were drilled and surveyed for estimating the Resource. The volume of each dump was computed based on the thickness indicated by boreholes after accounting for the height and slopes of the dump. The bulk density of each dump was computed by weighing tailings collected from 1m x lm x 1m pits and correcting it for the moisture content. The weighted average grade of gold was calculated by considering fire assay values of the tailing samples collected from all the dumps. The total Resource of 7 dumps out of the 15 dumps estimated by BGML is 32 Mil.Tonnes of an average grade of 0.72g/t. The said Resource was confirmed by MECL after recce drilling during 2017-18.
97% of gold in the tailings dumps are of free-milling type. The refractory ore (ie., gold contained in sulphide minerals) was mined mostly in Nundydroog mine from Western Lodes. Therefore, the dump No.12 named Kennedy’s dump, has refractory tailings. The free-milling gold in the Kennedy’s dump is in the lower portion of the dump.
The mesh size of the tailings is about 65% passing through -200 mesh. The dumps are layered with thickness of layers in the range of 1 to 10m. The tailings are generally grey in colour, friable and soft. Some of the tailing dumps have been
washed off during seasonal rains. Some quantity of tailings has been utilised for back-filling at Nundydroog mine. BGML has afforested most of the dumps by growing eucalyptus & cactus for containing environmental dust pollution.
GOLD RECOVERY TESTS: All the tailing dumps contain recoverable gold. During 1981-82, BGML carried out drilling to collect samples for laboratory scale heap leaching for testing gold recovery. This work was carried out by M/s Mountain State Research and Development (MSRD), Arizona, USA. During the early nineties, M/s BGML processed portions of the tailing dumps and recovered gold, initially through Heap-Leaching process. However, pilot-scale tests have indicated that the Carbon-in-Pulp(CIP) process is a viable alternative because it showed higher gold recovery.
Heap-Leach Process:
MSRD took up studies on Kennedy’s Tailing dump at Nundydroog Mine through the process of agglomeration and heap leaching. BGML commenced operating a Heap Leaching Plant of 500 TPD capacity in 1986 to recover gold from the old mill tailings. The operations continued till the end of 1992. During 1991-92 BGML processed 89,631 tonnes of tailings grading 0.891g/t; recovered 44,065grams (44kgs) of gold at recovery percentage of 55%.
GOLD RECOVERY BY CARB0N-IN-PULP PROCESS
(CIP): BGML carried out batch Pilot Plant tests using Carbon-in-Pulp process on two lots of about 1000 tonnes of tailings drawn from the Kennedy’s dump. The tests indicated an average gold recovery of 68.9% from an average feed grade of 0.675 g/ t with cyanide and lime consumptions of 0.5 kg/t & 1.0 kg/t respectively. It can be concluded that CIP process is ideally suited to extract gold from the Tailings. The recovery percentage was 19% higher than in the Heap-Leach process. At the moment due to technological upgradation much higher percentage (up to 80%) of gold recovery could be achieved. Tailings could be pumped as slurry to the CIP process plant. A number of CIP operations are currently underway in different part of the world for recovering gold from old mill Tailings. Large quantities of water filling the old mines could be utilized(??) for processing of tailings if found suitable.
A bit of Historical attempt to revive Gold mining in KGF: In 1995, soon after Govt of India announced the first ever National Mineral Policy in 1993, BGML called for global tenders to attract private investment for gold mining and processing of old mill tailings at KGF. I represented Australian Indian Resources Pvt Ltd(AIR Ltd) and participated in the Tender process. AIR Ltd had entered into an agreement with Nor-
mandy Anglo America Company as a minority JV partner. Normandy Anglo won the bid as a JV Partner. For reasons unknown to me BGML did not consummate the JV deal. Since then the MoM / BGML has not evinced any serious interest in auctioning the BGML assets for resuming exploration, mining and processing of tailing dumps.
Total Recoverable gold out of the 33 Mil.Tonnes @ 0.72g/t of Tailings at KGF and approx. cost of recovery: About 23 tonnes of gold is the total metal content contained in about 32 million tonnes of tailings spread over 7 major dumps in the Kolar Gold Field. Among the 7 dumps KENNEDY’s dump holds 11.74 million tonnes @ 0.89 g/t. BGML’s operations used tailings from the Kennedy’s. The gold recovery from this dump by CIP process was 55%. The Cyanide cost was 54% of the total expenditure. Higher gold recovery is possible at the currently available technology. 16 tonnes of gold could be extracted out of the 32 million tonnes of tailings. The current mine-head market price of 16 tonnes of gold is Rs.8500 Crores. Rs.2000 would be the cost of recovery of a gram of gold which equates to 800 US$ per Oz of gold. Two tonnes of tailings need to be processed to extract 1 gram of gold. There is no mining cost and no pulverizing cost. Rs.2000 per gram production cost includes 5.8% Royalty + payments towards DMF + NMET but not the cost of revenue sharing that has to be included in the cost if the licence for processing of tailing dumps is issued through the Auction process as mandated in the extant MMDR Act.
PHYTOMINING: The most common method of industrial scale extraction of residual gold from Tailings is Cyanidation Process. Considering the economic importance of the extraction of gold from the tailings, at the same time to develop an alternative to the environmentally sensitive Cyanidation Process, a Bangalore-based research Institute by name. Scalene Energy Research Institute, has successfully developed a biological (Microbial) process for extraction of gold from the KGF Tailings. The Lab-scale processes are presented in a paper authored by Dr.Rajah Vijay Kumar, Chief Scientist and Director of the Scalene Energy Institute using about 100kg of tailigs supplied by Dr.Vasudev in 2018. The processes are safe and environmentally friendly. Dr.Rajah Vijaykumar and his coscientists have demonstrated the efficacy of Water Hyacinth (Eichhornia crassipes) as an excellent hyperaccumulator of gold from the tailings and Microbial-Enzymatic process as a highly effective gold nuggetization process. For scaled-up commercial operations, Dr.Vijaykumar has suggested for construction of large, lined lagoons for growing Water Hyacinth with regular feeding of mine tailings. Though the Lab-scale experiments are successful, for the demonstration of its commercial viability, the entire 3-stage process has to be carried out on pilot plant scale.
Every 1.25 acre can perennially grow 1 tonne of water hyacinth. Every tonne of processed and dried Water Hyacinth taken out of MBIR reactor when treated with Microbial-Enzymatic Nuggetization process produces about 30 kg of gold-bearing concentrate containing about 2.34 to 3.6 grams of gold (Average 2.9 gram or 96 mg/ kg or 96 kg of gold per tonne of concentrate). Considering the problems faced by the local people with the mine tailings and, at the same time, its immense commercial significance, the MEGN process developed by Dr.Rajah Vijaykumar at his Institute in Bengaluru offers an alternative effective and environmentally benign process of extraction of gold from the millions of tonnes of tailings spread over the entire length of KGF. Unlike the traditional cyanidation process, the MEGN extracts almost the entire quantity of gold present in the tailings. There are a few other species of hyperaccumulators similar to Eichhornia crassipes (Water Hyacinth), for example Mustard. Their efficacy in concentrating gold remains to be investigated. Reference to the published Article: Microbial-Enzymatic Gold Nuggetization Process in Extraction of Gold from Old Mill Tailings of Kolar Gold Fields, Karnataka by Dr.Rajah Vijay Kumar, V.K.Vishaka, G.Jeevitha and C L. Pavithra. Special Publication No.11 11 Gold Mining in India: The Way Foward Editors V.N.Vasudev,, HM.Ramachandra and N.Rajendran, Geological Society of India, Bengaluru.
REAL ESTATE VALUE: The Tailing dumps occupy large space within the KGF township and skirting the thickly populated Robertsonpet and Andersonpet. If the processed tailings are dumped in the vast open space in the southern part of KGF (southeast of Marikuppam), new townships could be developed. Real estate value would be immense. Industrial estates could be built. Alternatively, tailings from the proposed gold extraction operation could be utilised for manufacturing bricks, slabs and pillars or for paving roads.
KGF AS A GEOTOURISM HERITAGE TOWNSHIP: The 140 years
About Author:
old Mines, old buildings, old gold processing plants, Mine survey office with large canvas of old mine drawings, Assay plans, large and deep shafts with one of them (Giffords Shaft) being reputed to have touched the deepest part of the earth (3.2km or 11,200 feet) in 1963. Besides, KGF has the earliest railway line and Asia’s first electric power line. All these would make KGF a great heritage tourism centre like the Gold City in Johannesburg and Ballarat and Kalgoorlie gold mine heritage townships in Australia.
THE WAY FORWARD: Reviving Bharath Gold Mines Ltd.(BGML) is the way forward. The Ministry of Mines, Govt of India should appoint a top Geologist, preferably from the GSI or MECL as the Managing Director and authorise the Board of BGML to enter into JV with other companies for undertaking processing of the Tailing dumps and reviving the suspended gold Mines at Chigarigunta, Bissanattam, Mallappakonda, Surapalli, the Western McTagaart and Oriental Lodes of the main KGF and the gold prospects in Northern Kolar belt including Manigatta and its northern extension towards Syagatur and Jaderi-Arikere Prospects. Outside the Kolar belt, BGML may also revive its mining operation at Hosur near Gadag in Karnataka and Ramagiri gold field in Anathpur dt., of Andhra Pradesh. The BGML Board also needs to provide compensations due to the retired employees of the BGML in accordance with the written agreement entered into by the Employees Union with the Ministry of Mines and in accordance with the Order of the High Court of Karnataka. Once these are accomplished BGML should expand its gold mining activities pan India in accordance with the extant MMDR Act and also venture into gold mining and exploration in African countries. This way, BGML would serve the Nation’s vision of Atmanirbhar Bharath and help reduce a few billion in forex.
Dr. V.N. Vasudev, aged 76, is a Geologist by profession specialising in the exploration for gold and base-metals. PhD from the Indian Institute of Science, Bengaluru. Served as a Senior Mining Geologist of two PSU Copper mines in Karnataka (1972-77) and later served the State Dept of Mines and Geology, Karnataka and voluntarily retired from Govt. service as Deputy Director in 1994. Recipient of the INSA Young Scientist Award in 1980 and Karnataka State Council of Science & Tech Award in 1981. From 1995 to 2015, Vasudev worked as the Chief Geologist and Exploration Director of 2 Companies promoted by a group of Australian Shareholders. Vasudev has travelled extensively including Greenland and Alaska; visited some of the world’s deepest gold mines, viz., Kalgoorlie in W.Australia, Ashanti Gold Mines in Ghana, Witwaters Rand gold mine near Johannesburg in South Africa and researched gold mineralization at Hutti Gold Mines and at 3km depth in the Champion Reef Mine of the famous Kolar Gold Fields in Karnataka. He is credited with the discovery of the southern extension of Ingldhal Copper Mines in 1975 and the Ganajur Gold deposit in April 2003 in association with his fellow geologist Dr.Harish Kumar while working for Deccan Exploration Services. Vasudev also specialises in Mineral Policy Matters. Currently serving the Geological Society of India.
INDIA’S MINES AND MINERALS BILL
2023: A NEW ERA FOR PRIVATE SECTOR
PARTICIPATION IN MINERAL EXPLORATION
India is poised for a transformative shift in its mineral exploration landscape, driven by the recently enacted Mines and Minerals (Development and Regulation) Amendment Bill, 2023. This significant legislation aims to bring the private sector into the forefront of critical mineral exploration, addressing the fact that only an estimated 10% of India’s Obvious Geological Potential (OGP) has been explored.
Unlocking Geological Potential
The amendment recognizes the vast untapped resources within India’s geological framework. With a mere fraction of its OGP explored, the country has immense potential for mineral wealth that remains largely unutilized. The Bill aims to leverage private sector expertise and investment to enhance exploration efforts, thereby unlocking these valuable resources.
A Call for Private Investment
To address this under-exploration, the government is actively encouraging private investment in critical mineral exploration. By allowing private companies to participate, the Bill seeks to attract the necessary capital and specialized knowledge essential for modern exploration techniques. This collaboration is expected to drive innovation and efficiency in discovering and extracting minerals.
Streamlined Licensing Process
A key feature of the amendment is the simplification of the licensing process for mineral exploration. The government plans to reduce bureaucratic hurdles, making it easier for private entities to obtain licenses. This streamlined approach not only expedites the exploration process but also fosters a more transparent regulatory environment, encouraging more companies to enter the sector.
Focus on Critical Minerals
The amendment specifically targets six critical minerals—lithium, cobalt, nickel, beryllium, niobium, and titanium—which are vital for various industries, including renewable energy and electric vehicles. By focusing on these essential resources, the Bill aims to boost domestic production, reduce reliance on imports, and enhance India’s position in the global minerals market.
Recent Mining Policy Changes
In addition to the Mines and Minerals Bill, several other policy changes have been introduced to modernize India’s mining sector: 1. National Mineral Policy 2021: This policy emphasizes sustainable min-
ing practices and aims to enhance the contribution of the mineral sector to the economy. It encourages exploration and production while ensuring environmental protection.
2. Introduction of Auctioning for Mineral Rights: The government has shifted from a licensing system to an auction-based system for mineral rights, promoting transparency and competition among bidders. This change aims to maximize revenue and ensure that resources are allocated to the most capable operators.
3. Enhanced Royalties and Revenue Sharing: Recent amendments have increased mineral royalties, ensuring that local communities benefit more from mining activities. This initiative aims to promote social equity and support local development.
4. Focus on Technology and Innovation: The government is encouraging the adoption of advanced technologies in mining operations, including digital mapping and automated extraction processes. This push for innovation is intended to improve efficiency and reduce the environmental footprint of mining activities.
5. Strengthening Environmental Regulations: New regulations have been introduced to ensure that mining companies adhere to stringent environmental standards. This includes comprehensive assessments and monitoring to mitigate the impact of mining on local ecosystems. Promoting Innovation and Sustainability
The involvement of private players is expected to foster innovation in exploration and extraction techniques. Private companies often bring advanced technologies that can improve efficiency and reduce environmental impact. The Bill encourages these companies to adopt sustainable practices, ensuring that mineral extraction aligns with ecological preservation efforts.
Economic Growth and Job Creation
The potential economic benefits of this initiative are substantial. Increased exploration and subsequent mining activities can lead to job creation across various sectors, from mining and manufacturing to technology development. By tapping into its geological resources, India can stimulate economic growth and enhance its industrial capabilities.
Conclusion
The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, marks a pivotal moment in India’s mining sector. By integrating the private sector into mineral exploration, the government aims to unlock the country’s vast mineral wealth, drive economic growth, and position India
as a competitive player in the global minerals arena. As the private sector steps in, the future of India’s mineral exploration looks promising, with the potential for significant advancements in both resource availability and sustainable practices.
Source: India Briefing
RETROSPECTIVE TAXES SET TO COST MINING INDUSTRY RS 1.5 TRILLION IN ARREARS
India’s mining sector is facing a massive financial burden following a Supreme Court decision allowing states to collect royalty and tax on mineral-bearing land retrospectively from April 1, 2005. According to a report by The Times of India, this ruling could result in arrears amounting to Rs 1.5 trillion, dealing a significant blow to both public- and private-sector mining companies.
‘Royalty not tax’: SC ruling on mining
On July 25, the Supreme Court affirmed states’ authority to impose cess on mining lands and quarries, while clarifying that the royalty paid to the central government by mining operators did not constitute a tax. The ruling on Wednesday, delivered by a nine-judge Constitution Bench led by Chief Justice of India D Y Chandrachud, extends this decision to be applied retrospectively, despite the central government’s plea for a prospective approach.
This judgment, while securing state governments’ right to tax within their legislative domain according to fiscal federalism principles, has sparked concern over its potential to discourage investment in the mining sector.
The mining industry, already facing challenging market conditions, could see further strain as companies struggle to absorb these unexpected costs.
Mining dues to be paid over 12 years
The Supreme Court has provided some relief by allowing the payment of these dues to be staggered over a 12-year period, starting from April 1, 2026. This measure, though mitigating immediate financial pressures, does not eliminate the long-term impact on the sector.
How much will this cost mining firms?
The financial implications of this decision are substantial, with public-sector companies alone facing arrears of Rs 70,000-80,000 crore. State-owned steelmaker SAIL is estimated to owe Rs 3,000 crore, while industry estimates suggest the total outstanding could rise to Rs 2 trillion. Private-sector giants like Tata Steel and Vedanta are also bracing for a significant impact, with Tata Steel listing a contingent liability of Rs 17,347 crore.
A senior official from the Ministry of Mines told Reuters that the judgment could deter future investments in the sector. Industry experts are divided, with some highlighting the importance of state revenues for welfare schemes, while others warn of the severe financial impact on mining companies, which may not be able to recover these costs from consumers due to the deregulated nature of the sector.
Legal experts like S R Patnaik, partner and Head of Taxation at Cyril Amarchand Mangaldas, noted that the ruling at least prevents the liabilities from becoming disobedient, giving companies a chance to assess and manage their financial obligations. However, the broader implications for the industry remain significant, particularly as mining companies will have to pay these dues out of their own reserves, potentially undermining their fi-
nancial stability and future expansion plans.
The ruling could also have a ripple effect on power tariffs, as generation companies may seek to pass on the increased costs from coal miners to consumers under the “change in law” provisions of power-purchase agreements. This could lead to a series of legal battles as utilities challenge these cost recoveries.
Nifty Metal Index drops 2.4 per cent
The market has already reacted negatively to the news, with the Nifty Metal
index dropping by 2.4 per cent, and key players like NMDC, Hindustan Copper, and JSW Steel seeing their shares fall between 2 per cent and 6 per cent. The judgment’s impact on the sector’s investment prospects and future policies will likely be closely monitored by both industry leaders and government officials as they evaluate the path forward.
Source: Busniess Standard
INDIA’S COAL OUTPUT GROWS SIGNIFICANTLY,
UP 5.85% AT 411.6 MT IN FY25
The country’s coal output grew 5.85 per cent to 411.62 million tonnes (MT) in the current fiscal year (up to September 12), over the year-ago period.
This country’s coal production was 388.86 MT during the same period last year.
“This marks a significant increase... reflecting a commendable growth rate of 5.85 per cent, despite adverse climatic conditions that challenged mining operations,” the coal ministry said in a statement.
The figures are provisional. The production by state-owned Coal India Ltd rose to 311 MT during the same period, marking a growth of 2.80 per cent compared to 302.53 MT in the corresponding period of the previous year.
This growth is even more notable given the interruptions in mining activities in CIL subsidiaries due to heavy rains, it said.
Coal dispatch has also experienced a substantial uplift, reaching 442.24 MT during 2024-25 (up to September 12), compared to 421.29 MT in the same period last year, it said, adding that this reflects a robust growth rate of 4.97 per cent.
Furthermore, the dispatch of coal to power plants has shown a growth of 4.03 per cent, achieving 362.65 MT, underscoring the sector’s commitment to meeting the nation’s rising energy demands.
As of Thursday, the coal stock held by coal companies surged to 76.49 MT, showcasing annual growth rate of 49.07 per cent.
In parallel, the coal stock at domestic coal-based thermal power plants has reached 36.58 MT, representing a growth of 43.68 per cent
Current Status
1. Coal Output Growth:
• India’s coal output has increased by 5.85% to 411.62 million tonnes
(MT) for the fiscal year 2025 (up to September 12), compared to 388.86 MT during the same period last year.
• The production from Coal India Ltd (CIL), the state-owned enterprise, rose to 311 MT, marking a 2.80% growth.
2. Coal Dispatch:
• Total coal dispatch reached 442.24 MT, reflecting a 4.97% increase from 421.29 MT in the previous year.
• Dispatches to power plants grew by 4.03%, totaling 362.65 MT.
3. Coal Stock Levels:
• Coal stock held by companies surged to 76.49 MT, with an impressive annual growth rate of 49.07%.
• Domestic coal-based thermal power plants reported a coal stock of 36.58 MT, indicating a 43.68% increase.
Challenges
1. Adverse Climatic Conditions:
• Heavy rains and adverse weather have disrupted mining operations, particularly affecting CIL subsidiaries. This has challenged production consistency and efficiency.
2. Infrastructure Limitations:
• Transportation and logistical constraints can hinder the timely dispatch of coal from mines to power plants, affecting energy supply.
3. Environmental Concerns:
• Increased coal production raises environmental issues, including air pollution and land degradation, which are critical in a country facing climate change challenges.
4. Regulatory and Compliance Issues:
• The coal sector is subject to stringent regulations, and compli-
ance can lead to delays and increased operational costs.
5. Dependence on Coal:
• The heavy reliance on coal for energy production poses risks, especially as the world shifts towards renewable energy sources.
Way Ahead: Roadmap for Sustainable Growth
1. Enhancing Production Capacity:
• Invest in modern mining technologies and practices to improve efficiency and reduce the impact of adverse weather conditions.
• Explore new coal reserves and enhance exploration activities to increase production capacity.
2. Improving Infrastructure:
• Develop robust transportation infrastructure, including railways and roads, to facilitate efficient coal dispatch.
• Implement better logistics management systems to streamline the supply chain process.
3. Diversifying Energy Sources:
• Gradually diversify energy production by investing in renewable energy sources like solar, wind, and hydroelectric power to reduce dependence on coal.
• Encourage public-private partnerships (PPPs) for renewable energy projects.
4. Environmental Management:
• Adopt sustainable mining practices and invest in technologies that minimize environmental impact.
• Implement afforestation and land reclamation initiatives in mining areas.
5. Policy and Regulatory Framework:
• Simplify regulatory processes to encourage investment and innovation in the coal sector.
• Promote transparency and accountability in coal production and dispatch operations.
6. Capacity Building and Skill Development:
• Invest in training programs for workers in the coal sector to enhance skills and adapt to new technologies.
• Foster research and development initiatives to innovate in coal extraction and utilization.
7. Stakeholder Engagement:
• Engage with local communities, stakeholders, and environmental groups to address concerns and foster cooperation.
• Create awareness about the importance of coal in the current energy landscape while promoting sustainable practices.
Conclusion
India’s coal sector is witnessing significant growth despite challenges posed by climatic conditions and environmental concerns. A strategic roadmap focusing on production enhancement, infrastructure development, diversification of energy sources, and sustainable practices will be crucial in navigating the future landscape of energy production while meeting the nation’s rising energy demands effectively.
Source: Business Standard
INDIA NEEDS TO DEVELOP MINERAL STRATEGY FOR THE ENTIRE VALUE CHAIN, FROM EXPLORATION TO RECYCLING
From FY19 to FY24, India’s mineral production growth has stagnated, with many major minerals seeing only single-digit growth or decline, per an SBI Research report. To unlock its mineral potential, India must overhaul its value chain—from exploration to recycling—alongside comprehensive fiscal reforms, enhancing competitiveness and fostering sustainable economic growth.
The growth of mineral production, measured over a five-year period from FY19 to FY24, reveals a concerning trend: major minerals have either experienced single-digit growth or a decline in output, according to SBI Research report.
To fully capitalize on its mineral resources, India needs a coordinated approach that addresses challenges across the value chain. This includes overcoming bureaucratic hurdles, improving regulatory frameworks, and investing in infrastructure to support the mining sector’s growth.
Rare earth metals and other critical minerals are indispensable to modern technologies, including electronics, renewable energy systems, and advanced manufacturing. Despite India’s vast mineral resources, the country’s mining sector has not achieved its full potential. To address these challenges, India must develop a
comprehensive mineral strategy that spans the entire value chain. Advanced geoscience techniques are crucial for identifying new mineral deposits. The strategy should focus on leveraging satellite imagery, geospatial data, and remote sensing technologies to uncover untapped resources.
Efficient and environmentally sustainable extraction methods must be adopted. This involves implementing best practices from leading mining countries and investing in state-of-the-art extraction technologies. Establishing robust processing facilities is essential to add value domestically. This stage involves upgrading raw minerals to intermediate forms, which can then be used in various manufacturing processes. By bolstering advanced manufacturing capabilities, India can produce high-value products like batteries, magnets, and electronic components domestically, reducing dependence on imports and boosting self-reliance.
Promoting a circular economy through recycling is a key component of the strategy. Recycling end-of-life products to recover valuable minerals not only conserves resources but also minimizes environmental impact.
The mining sector is labor-intensive, with high potential for job creation. In FY19, the sector employed around 480,000 individuals daily, with 78 per cent of these jobs in the public sector. Currently, it is estimated that 580,000 to 600,000 people are employed daily in mining activities. A 10 per cent increase in mineral production, in value terms, could generate an additional 50,000 to 70,000 daily jobs, significantly boosting employment in the sector.
Enhancing the mineral value chain will also improve India’s competitiveness in the global market. This entails fostering innovation through research and development, improving infrastructure, and creating a
supportive ecosystem for startups and small businesses in the mining and manufacturing sectors.
To support the mineral strategy, India must also pursue comprehensive fiscal reforms. Aligning personal income tax with corporate tax rates and gradually transitioning all taxpayers to the new tax regime is a critical step.
Moreover, the government is considering reforms to the Goods and Services Tax (GST) system. Expanding the GST ambit to include more items such as electricity and aviation turbine fuel (ATF) is part of the proposed GST 2.0 reforms
This move aims to simplify the tax structure, broaden the tax base, and ensure efficient revenue collection, which can be reinvested in strategic sectors like mining and infrastructure development.
India’s mineral wealth includes 95 different minerals, ranging from metallic and non-metallic to fuel and atomic minerals.
Despite this abundance, the growth rate in mineral production has been modest, with the compound annual growth rate (CAGR) for many major minerals in single digits or declining over the past five years.
India, endowed with a rich bounty of minerals, stands at a critical juncture. With a burgeoning demand for rare earth metals and other crucial minerals, the country faces a pressing need to revamp its mineral strategy.
This initiative must encompass the entire value chain, from exploration to recycling, to ensure sustainable economic growth, job creation, and competitiveness on the global stage.
Complementing this is the necessity for fiscal reforms, aligning tax structures to support this strategic push.
Source: Economic Times
100% MINING OPERATIONS TO START THIS YEAR: GOA CM
Chief Minister Pramod Sawant said that 100 % of mining operations in Goa will be starting this year. “100 % mining operations starting this year; govt also implemented dump policy; handling of dumps from mines has already begun in Goa,” said CM Sawant. He further said that the Goa government will conduct an e-auction of around 2 million tons of mining dumps lying at various jetties and other locations in the state, as informed by CM Pramod Sawant.
“This will be the 30th e-auction conducted by the mines dept. Ore is to be auctioned in 4 lots and it is likely to be sold at an average price of Rs 895 per ton based on the grade of the ore, informed CM.
Sawant said that ore transpiration will commence in October and exuded confidence that mining will start in full-fledged manned by November -December. Mining has already commenced at one of the mining blocks which was e-auctioned in the first phase, he said.
Speaking on ‘One Nation, One Election’, Goa CM Pramod Sawant says, “I welcome ‘One Nation, One Election’.
“With continuous elections in the country, a lot of human resources are used, and a lot of money is spent. A lot of human resources & time will be saved with ‘One Nation, One Election’. The country will also progress…I welcome this…” said Sawant. Source: goemkarponn.com
LOW-GRADE IRON ORE: A KEY TO SUSTAINABLE STEEL PRODUCTION IN INDIA
As the global steel industry pivots towards sustainability, the utilization of low-grade iron ore is emerging as a critical strategy for India. With increasing pressure on high-quality ore reserves, advancements in technology are enabling the beneficiation of low-grade ores, thereby supporting the ambitious goals outlined in the National Steel Policy (NSP) 2017. This article explores how the effective use of low-grade iron ore can boost steel output, enhance sustainability, and address the challenges faced by the Indian steel sector.
The Importance of Iron Ore Beneficiation
Iron ore beneficiation plays a vital role in improving the efficiency of steel production. By enhancing the quality of raw materials, it leads to:
•Cost Reduction: Higher iron content in the ore translates to lower coke consumption and reduced overall production costs. A 1% increase in iron content can boost blast furnace productivity by 2% and decrease coke usage by 1%, ultimately lowering costs and reducing steel import bills.
•Reduced Emissions: Improved ore quality contributes to lower emissions during the steel production process, aligning with global sustainability goals. Enhancing the efficiency of the blast furnace process is critical as it accounted for around 72% of total crude steel production in 2023.
•Strengthened Supply Chain Reliability: Upgrading low-grade ores mitigates reliance on depleting high-grade reserves, ensuring a more stable supply of raw materials. The NSP 2017 has outlined ambitious goals for India’s steel industry, aiming for a crude steel capacity of 300 MT by 2030, which will require 437 MT of iron ore as raw material.
Current Landscape and Challenges
India’s steel production reached 140 million tons (MT) in 2023, with projections indicating an 82% growth by fiscal year 2030. However, challenges abound, including:
•Resource Base Expansion: The need to tap into low-grade ores, which currently make up 17% of total production, is crucial. High-grade reserves (>65% Fe) stand at 1.45 billion tons, while low-grade (<62% Fe) reserves amount to 1.80 billion tons.
•Infrastructure Bottlenecks: Improvements in transport infrastructure— roads, railways, and ports—are necessary to facilitate efficient resource movement. The industry faces challenges related to handling and storage, which must be addressed to optimize operations.
•Utilization of Slimes and Tailings: Slimes, which comprise 20% to 25% of Run of Mine (ROM), are often discarded, trapping millions of tons of
iron in slime ponds. Tailings account for 10% to 25% of iron ore mined, equating to 18 MT annually, highlighting opportunities for recovery and utilization.
China: A Pioneer in Low-Grade Iron Ore Utilization
China has been at the forefront of utilizing low-grade iron ore in its steel production processes. The country’s steel industry has adapted to the realities of diminishing high-grade iron ore reserves by implementing several strategies:
•Advanced Beneficiation Techniques: Chinese steel producers have invested heavily in advanced beneficiation technologies that allow them to process lower-grade ores more efficiently. Techniques such as magnetic separation, flotation, and agglomeration are commonly used to upgrade the quality of iron ore.
•Diverse Raw Material Mix: To mitigate the impact of highgrade ore scarcity, Chinese steelmakers have diversified their raw material inputs. This includes blending low-grade ores with higher-grade ores to achieve the desired quality for steel production.
•Government Support and Policies: The Chinese government has actively supported the steel industry through policies that encourage the use of domestic low-grade ores. This support includes subsidies for beneficiation projects and incentives for companies that adopt sustainable practices.
•Focus on Sustainability: As global pressure mounts for sustainable practices, China’s steel industry is increasingly focusing on reducing emissions and improving resource efficiency. Utilizing low-grade iron ore aligns with these goals by minimizing waste and maximizing the use of available resources.
Government Initiatives and Policies in India
To address challenges in India, the government has introduced several initiatives:
1.Beneficiation Policy: In 2022, the Ministry of Mines proposed a policy mandating that 80% of low-grade ore (Fe < 58%) be upgraded to higher-grade ore (62% Fe). Non-compliance may result in fines or lease termination, emphasizing the importance of this initiative.
2.Investment in Beneficiation Capacity: The industry’s beneficiation capacity is expected to grow from 136 MT to 170 MT by 2030, necessitating an investment of approximately INR 51,000
crore. This investment aims to enhance productivity and facilitate the processing of low-grade ores.
3.Support for Sustainable Practices: The government is focusing on transparent policies and incentives to promote sustainable mining practices, ensuring that domestic ore is effectively utilized within the steel industry.
The Shift Towards Electric Arc Furnace (EAF) Technology
With global steel producers aiming for zero emissions, there is a notable shift from traditional blast furnaces to Electric Arc Furnace (EAF) technology. EAFs require high-quality iron ore, and with limited scrap availability, Direct Reduced Iron (DRI) becomes a viable alternative. However, the DRI process necessitates high-grade iron ore, posing challenges in the context of dwindling reserves. The raw material mix for EAF includes 62% hot metal, 26% DRI, and 13% scrap, further complicating the landscape.
Future Prospects and Global Market Dynamics
India’s position in the global iron ore market will depend on its ability to upgrade and enhance the quality of its ores. While Asia, particular-
ly China, may be more receptive to upgraded Indian ore, European markets could be deterred by high alumina content. Addressing these quality concerns will be essential for maintaining competitiveness, especially as industry research suggests that upgrading beneficiation capacity costs around INR 1,500 crore per million tons.
Conclusion
The effective utilization of low-grade iron ore through beneficiation is pivotal for India’s steel industry to achieve its ambitious production targets while adhering to sustainability goals. By enhancing raw material quality, reducing costs, and minimizing environmental impacts, the industry can navigate the challenges ahead. With government support and strategic partnerships between mining and steel companies, India is poised to reshape its steel landscape, moving closer to its vision of sustainable and efficient steel production. As the country aims for a crude steel capacity of 300 MT by 2030, leveraging insights from China’s experience with low-grade iron ore will be instrumental in driving this transformation.
CAG BLOWS THE LID OFF MAJOR IRREGULARITIES IN ODISHA MINING SECTOR
Total loss of revenue on account of violations and suppression of mineral quality was estimated at 22,392.51 crore
The Comptroller and Auditor General of India has blown the lid off major irregularities in Odisha’s mining sector, estimating the loss of mining revenue and value of minerals at a whopping 22,392.51 crore.
The CAG arrived at the loss figure by accounting for reports of lower grade iron ore and iron ore fines as screened fines, non-utilisation of sub-grade iron ore, short assessment of royalty, production exceeding approved in mining plan and environmental clearance and production of chromite without forest clearance.
The apex audit agency pointed out an interesting loophole in auction regime which was adopted after massive mining irregularities reported across the country.
“It was observed after auction that in case of selected mines, there was an abrupt and abnormal decline in the grade of iron-ore and its classification reported by the new lessees. Though more than 83% production was reported in the grade of 62-65% Fe in the pre-auction period, the same came down to approximately 16% in the two years after auction
(2020-2022),” the report finds.
“Similarly, share of grades 60% Fe and below went up from approximately 11% of total production to more than 60% of total production in the two years after auction (2020-2022),” it adds.
Stating that a similar trend was also noticed in the case of production of fines, the CAG points out that in the case of one iron-ore mine under the Joda Circle, the average production of lumps of grades above 60% Fe was about 77% before the auction, which drastically reduced to a mere 9.88% within one year, in 2020-21 and further reduced to 0% during 2021-22 after new lessee started operating the mine.
“It is highly improbable that the grades of mineral reserves, produced from the auctioned mines, would witness an abrupt decline within a short period of one or two years. Such a significant and sharp decline in the grade of iron-ore indicated a significant risk that the new lessees were misreporting the grade of iron-ore produced, in order to avoid higher royalty and premium payable on higher grades,” CAG reported.
In the six test-checked mines, changes in reported grades of pro-
GEONESIS
duction of lumps and fines after auction, as compared to the consistent pattern in the grade of production, as reported by the older lessees, have consequently resulted in a revenue implication of approximately 4,162.77 crore for the years 2020-21 and 2021-22 in the form of lesser royalty and premium.
The State government came up with an instruction in 2010 that crushed fines are also to be charged at the rates applicable to lumps and subsequently, the mining circles had charged higher royalty for crushed fines equivalent to lumps, but charged lower royalty for screened fines equivalent to fines.
“There was a significant decrease in reporting of crushed fines from the production pattern of crushed and screened fines as prevalent before the order, leading to revenue implication of 10,294.24 crore for the 20 test
checked mines consisting of royalty of approximately 5,841.80 crores and premium of approximately 4,452.44 crores (for four auctioned mines),” the audit agency indicated.
The CAG also mentioned in the report that “in regard to regulation of mining activities, it was observed that there had been production of minerals in excess of the limits stipulated in the approved mining plans, in case of eight iron ore mines, attracting levy and realisation of price of the minerals so raised, amounting to 3,618.50 crore.”
Carrying out mining activities in violation of relevant environment protection provisions and also crossing the limits of mining plan also bound to have adverse effects on the environment of the impacted areas, it said.
Source: The Hindu
THE FUTURE OF MINING IN JHARKHAND: AUTOMATION AND SUSTAINABILITY TAKE CENTRE STAGE
Leaders at Jharkhand Mining Summit discuss modernisation, green initiatives, and community upliftment
The PHD Chamber of Commerce & Industry’s Jharkhand Chapter hosted the 3rd Edition of the Jharkhand Mining Summit on 16th September 2024, at Hotel Radisson BLU, Ranchi.
The summit brought together key industry leaders, government officials, and corporate stakeholders to discuss the future of mining in the state and the pivotal role of innovation and sustainability in this sector.
Shashi Ranjan, IAS, Director of the Department of Mines & Geology and Managing Director of Jharkhand State Mineral Development Corporation, served as the Chief Guest. Addressing the summit, he emphasised the need for modernisation in the mining industry, stating, “The present National Mining Policy supports the establishment of new industries that incorporate modern techniques and innovations in production. Automation in mining is the need of the hour.”
Echoing this sentiment, Suyash Shukla, Head of Corporate Affairs at JSPL, highlighted the importance of sustainable mining practices. “We are committed to sustainability and aim to resolve issues by adhering to the principle of ‘One Thing’. Our activities in mining not only consider the extraction of resources but also focus on the upliftment of local communities and the overall development of the area. More coal washeries will undoubtedly help Jharkhand become self-reliant and add value to the state’s coal usage,” he said.
During the summit, Bijay Kumar Agarwal, Chairman of the Pranami Group, called for governmental support to make mining activities more efficient. He urged the authorities to provide relief measures for mining operations and promote the use of modern exploration techniques to build a comprehensive resource inventory of the state’s rich mineral deposits.
Adopting technology as a driving force for modernisation was also discussed. Prateek Kumar, Senior Vice President of Hindalco Industries Limited, spoke about the benefits of drone technology in mining and its role in enhancing environmental protection measures.
The summit also featured a session led by Dr Jitender Das, Director General of the FORE Society, who outlined the Society’s initiatives aimed at making India greener. Additionally, Dr Sanjay Kumar, Chairman of PHD Chamber, welcomed attendees and elaborated on the chamber’s efforts to support industrial development in Jharkhand, including its encouragement of start-ups and small entrepreneurs.
A key theme of the summit was exploring “Mining at Jharkhand: The Way Forward,” a panel discussion that engaged industry leaders on how to best leverage Jharkhand’s natural resources while ensuring environmental sustainability. The summit, attended by 280 delegates, also served as a platform for key industry players,
including Central Coalfields Limited, Jindal Steel and Power Limited, and ONGC, to collaborate on future projects.
In conclusion, the 3rd Jharkhand Mining Summit highlighted the pressing need for technological innovation, sustainable practices, and collaborative efforts to ensure the continued growth and responsible
development of the mining sector in Jharkhand. As discussions continue, stakeholders remain optimistic about the potential for modernisation and the positive impact it will have on the local economy and environment.
Source: Telegraph India
RAJASTHAN MINING DEPT UPLOADS DRAFT OF NEW MINERAL POLICY 2024, SEEKS SUGGESTIONS
Rajasthan Department of Mines & Geology on Wednesday uploaded the draft of the proposed New Mineral Policy 2024, seeking suggestions from mineral organisations, stakeholders and the general public. An official said that suggestions can be submitted by September 22, in writing or through e-mail at the department’s official email ID, adding that the ‘draft of new mineral policy is prepared with developed Rajasthan, 2047 vision.’
Chief Minister Bhajan Lal Sharma, propounded the need to formulate a new mineral policy for the mining development of the state during the departmental review with a long-term vision.
Officials said that most of the provisions of the State Mineral Policy, 2015, became obsolete in view of radical changes made in the mining laws.
Principal Secretary Mines and Petroleum T. Ravikant informed that keeping in view the vision of Developed Rajasthan, 2047, the proposed New Mineral Policy, 2024 emphasises accelerating the mineral exploration work in the state with the use of world-class technology, use of the latest technology of exploration and mining, environmental protec-
tion, efficient management of mineral resources, waste management, processing, industrial investment, increase in direct and indirect employment opportunities, continuous and sustainable development in the mineral sector and increase in revenue etc.
Director Mines Bhagwati Prasad Kalal said that the draft of the proposed Mineral Policy, 2024 can be seen on the departmental website, adding, that people associated with the mining sector and the general public can give their suggestions till September 22.
Principal Secretary Ravikant on Monday said that such a roadmap will be prepared for the pre-auction preparations of mining blocks in the state to e-auction and subsequent processes so that effective action and timely monitoring can be ensured.
He has also propounded the need for coordinated efforts to increase revenue from the mining sector.
He said that the state has abundant mineral wealth and in such a situation, a mineral-wise, zone-wise wise and stage-wise auction process will be prepared in the state so that necessary action can be ensured in time.
Source: Daijiworld
GREATNESS HAS A COST: PAY IT WITH PASSION
Here is a universal rule of life. We will never produce anything great unless we are prepared to put something of ourselves, of our very life , of our very soul into it.
No pianist will ever give a really great performance if he glides through a piece of music with faultless technique and nothing more. The performance will not be great unless at the end of it there is the exhaustion which comes of the outpouring of self. No actor will ever give a great performance who repeats his words with every pitch right and every gesture correct like a perfectly designed robot or a self-operating machine. The tears must be, real tears,the feelings must be, real feelings, something of the artist must go into the acting. Every time a therapist heals someone it takes something out of him or her during the process.
If we are ever to help humanity, we must be ready to spend ourselves. It all comes from our attitude towards our fellow human beings.
Passion is what fuels the pursuit of greatness. Passion gives purpose to the sacrifices and finding joy in the process, thus pushing forward even when the road seems steep.
Greatness isn’t just about reaching the top, but when you pay the price with passion, you’re not just achieving greatness - you’re actually living it.
“Happy are those who dream dreams, and are ready to pay the price to make them come true” - Leon Joseph Suenens.
ABOUT AUTHOR
Dr. Majo Joseph
Dr. Majo Joseph is an Ayurveda Consultant, & General Practitioner. He is also a Psychology And Counselling, Wellness Trainer.
DISCLAIMER: This is a compilation of various news appeared in different sources. In this issue we have tried to do an honest compilation. This edition is exclusively for information purpose and not for any commercial use. Your suggestions are most valuable.
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