Coalfield Times May 2018

Mining & Equipment Sector Magazine SINCE 1978

May-July 2018 Rs. 50

WCL TO BREAK NEW GROUND R R Mishra, the Chairman and Managing Director, Western Coalfields Ltd

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EDITOR’S DESK Managing Director Krishna Sarkar Director Saibal Sarkar Executive Editor Jayanta Mallick Financial Advisor Jishnudeb Mukherjee Advisor Suvobrat Ganguly & P.P. Sengupta Technical Advisoer to Chairman WBMDTCL. Equipment Technology Advisor Rajesh Bhattacharjee Graphic Designer Sheikh A Murad Marketing & Communications Kishan Khandelia Preeti Jalan Ajitesh Churewal Cover Photograph R.R. Mishra, Chairman & Managing Director, Western Coalfields Ltd. Photo Pixabay Copyright Coalfield Times Pvt. Ltd. All rights reserved throught the world. Reproduction in any manner is prohibited.

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by Sounak Sarkar from 26, Mohon Bagan Row, Kolkata-70004 & Printed at Adillusion, 1st floor, 4/106A, Nelinagar Colony, Kolkata - 700 078 Editorial Section EE174A/7, Sector II, Salt Lake City, Kolkata - 700 091, Mobile : 8910763022 8584921108 e-mail: coalfieldtimes@yahoo.com coalfieldtimes Coalfield Times does not take responsibolity for returning unsolicited publication material.

RNI No. 34772/79

Indian coal sector: It’s time for reforms Pretty interesting time!

Indian coal sector has been shaping up, albeit gradually. Suddenly this year, the pressure of policy changes and social scrutiny seem to have gained additional edge. Now the sector has to address the issues of environment degradation, opaque and inefficient methods of mining, quality control, processing, transportation as well as cost of the commodity.

The elephant in the room has been the persistent shortage of quality coal at power plants. Average spot power price on the Indian Energy Exchange in March and April was Rs 4.1 a unit, up from February’s Rs 3.22. In contrast, February and March of 2017 saw average spot price at around Rs 2.5 for a unit.

Normally, July onwards spot price moves up owing to paucity of dry fuel during rains. However, coal shortage had prompted spot price to shoot up beyond Rs 11 a unit last September.

In April, Coal India Ltd reportedly increased supply to power plants 14.4% over that in the corresponding month last year. Rake loading also grew 10.4% in April this year over the 2017’s April.

CEA data as on May 10 for linkage based power plants showed that 20 non-pithead units were having less than 4-day stock and another 8 had stocks for a week’s operation.

The Union Ministry of Coal has allocated a total of 11 mines to three CIL subsidiaries - Eastern Coalfields Ltd, Bharat Coking Coal Ltd and Western Coalfields Ltd. This should lead to increase in public sector company’s annual output by 225 million tonens in the near future.

CIL, which produces 84% of the nation’s coal output, missed its production target of 2017-18 by 7%.

Coal shortage at some state-owned power plants is already pushing the power price as they are buying costlier power from other sources to avoid load shedding.

For shortage of coal, some power producers are resorting to low generation levels.

The summer of 2018 is hotter for CIL. CIL’s production target for FY19 stands at 630mn tonnes. The Working Group on Coal and Lignite stated that they plan to expand production of CIL to 908mn tonnes

by FY20.

The Union Government decided in February to allow private miners to engage in commercial coal mining. This is the beginning of the process of removing the monopoly of CIL. Will it eventually bring about enhanced energy sufficiency for India and availability of power at lower costs? Time surely will answer.

The Coal Ministry also announced that CIL would be expanding into downstream segments as well. CIL is understood to be planning to set up coal gasification plants as well as further processing into downstream chemicals. CIL has formed a JV with RCF, GAIL and FCIL to set up a coal based ammonia-urea plant at Talcher in Odisha.

So, the US walkout on Paris Accord notwithstanding, it’s time for black diamond reforms in India. * As we go to press, Coalfield Times is happy to note that Mr. A.K. Jha, CMD of MCL, is going to become the CMD of CIL.

Editor-in-Chief, Sounak Sarkar Email: sounaksarkar2009@gmail.com

CONTENTS 14 NCL expanding horizon quietly

10 MCL’s growth wagon ready for

14

acceleration

6 29 18

6

20

WCL to break new grounds

29 Nagarnar: NMDC paves

way for coking coal from down under

24 TIPL charges ahead

10

in the upward curv

18 Komatsu ready for bigger share of the Indian pie

20 SECL plans to dig deep

24

into technologies

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| May 2018

WCL

to break new grounds

What were the final annual figures for production, dispatch and offtake till March 31, 2018?

F

or Western Coalfields Ltd, 2017-18 has been a land mark year for more than one reason, particularly, in terms of performance and policy support from the parent Coal India Ltd and the Ministry of coal. The production, dispatch and off-take figures have been nothing short of spectacular. However, the game changer development for the Nagpur-headquartered CIL subsidiary was the allocation of six coal blocks in Odisha. Saddled with difficult-to-mine and costly deep-seated reserves in Maharashtra and Madhya Pradesh, WCL never had a level playing field and slipped into the red gradually.

The recent allocation of new coal blocks in Odisha, according to experts, changes the game. It will bring down its stripping ratio dramatically. And the cost. For one ton of coal, WCL will not have to dig out around 9 tonnes of earth in Odisha. The new blocks, are supposed to yield a ton of black diamond after removing just 2 tonnes of overburden; making operations easier and cheaper than now!

In an exclusive interview, Mr R R Mishra, CMD of WCL told CoalfieldTimes about the unfolding plans to turn the tide, and cut the corners. The dream to cross 100 MT production figure is now realizable.

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| May 2018

Western Coalfields Limited (WCL) achieved a new record in coal production, dispatch and overburden (OB) removal during the just concluded 2017-18 financial year.

The annual production was 46.22 million tonnes (MT), the highest ever. This is also the fourth consecutive year when WCL registered growth in production.

The previous highest of WCL had been 45.7 MT, achieved in 2009-10.

In the current fiscal the coal production target of WCL is 52.50 MT, which has been planned to increase up to a level of 55 MT

INTERVIEW

during the year 2019-20. Similarly, WCL despatched 48.75 MT against the highest ever of 45.51 MT achieved during the year 2009-10.

WCL also created another record of its own by achieving 23.5% growth in coal off-take in 2017-18.

This is, incidentally, the highest among all the subsidiaries of CIL. In OB removal also, the company attained a new height by clocking 185.287 million cubic metre against previous high of 166.142 million cubic metre in 2016-17.

Is WCL likely to reduce net loss in 2017-18? What could be the scenario in 2018-19?

The fiscal’s financial figures are yet to be consolidated, but as per quick estimates, the profitability scenario is likely to remain to the tune of last year. Though the performance on all fronts has improved, arrear wages of 10 |

| May 2018

non-executives and executives, increased the actuarial valuation of gratuity liability and downward revision of coal grade has impacted the company’s top line.

Efforts are under implementation to contain the expenditure and increase the revenue for improving the profitability. A few of them are:

mines have been closed during 2017-18 Apart from cost control measures, the incremental capital expenditures, will result in improved efficiency in performance and boost the bottom line.

i. Increase in revenue from auction of coal, both in terms of quantity and price

Business opportunity through diversification like sand from OB project is also on the cards for improving the top lines.

ii. Increase in revenue from cost plus mines, on quantity and price counts

What has been the net capital investment figure in 2017-18? Do you plan to increase it in 2018-19?

iii. Saving in wage cost by rationalization in manpower deployment

The total capital expenditure (provisional) of WCL for FY 2017-18 was Rs 1152.66 crores. Most likely, this trend of capital expenditure will continue in the FY 2018-19.

iv. Reduction in power, fuel, stores and explosive cost v. As a cost optimization measure, 7 unviable and unsafe underground

What are the FY’18 updates for the ongoing projects? How are you mapping the road ahead?

At the start of the FY 2017-18, there were 30 ongoing projects. Of these, 3 projects - Makardhokra – I OCP, Gokul OCP & Amb River Div. P-IV (Umrer), have been completed in FY 17-18.

Production from the ongoing projects in FY17-18 was 27.244 MT. Projected production from ongoing projects in FY 18-19 is 33.085 MT. The allotment of six Odisha mines to WCL will be a game changer.

Could you broadly outline the development plans for these new assets?

taken to enhance the existing mine capacity, which will add 6.5 MT in 2018-19.

How do you plan to control production levels at costly deep seated coal mines in Maharashtra and Madhya Pradesh? How do you plan to manage related HR issues?

WCL is presently having 40 opencast operating mines with a depth ranging from 50 to 175 metres and we are planning to tap deep seated coal deposits in future, subject to limitation of

current technology and viability of the projects. Conforming to the 12% IRR norms, the new projects are planned with departmental mode. Alternatively, partial hiring / complete hiring option are also explored for project approval.

Technological interventions and amalgamation for capacity enhancement are also being adopted for bringing about project viability. The manpower from closed unviable mines is being gainfully utilized in the viable mines and establishments of the company.

At present, only four coal blocks have been allocated to WCL. These blocks when fully developed will play a major role towards achieving the vision of WCL to become a 100 MT plus company. Plans have been drawn and activities have been initiated for development of these blocks.

What is happening to the capacity expansion projects?

Coal production augmentation has been planned from existing mines / projects. Action has been 11 |

| May 2018

MCL’s growth wagon ready for acceleration For Mahanadi Coalfields Limited (MCL) it is yet another growth bottle uncorked.

After years of delay and cost escalation, it has finally achieved rail access to one of its significant reserves of Basundhara coalfields through the JharsugudaBarpali-Sardega 53 km single line at a cost of Rs 1,007 crore. Now the evacuation of coal from Basundhara of Ib Valey in Odisha, located north west of the existing SER line touching Jharsuda, to power plants elsewhere in the country becomes easier, reducing cost, pollution and turnaround time. Now that growth wagons are chugging at a higher speed, what next? Mr A K Jha, Chairman & Managing Director of MCL outlines the map. Read on: 12 |

| May 2018

“

In the next 5 years we will adopt more those practices and technologies to unravel potential in coal production and promote safe and eco-friendly operations for the sustainable development ...

“The absence of a rail link to the Ib Vally threw up major operational and environmental issues previously because coal had to be transported by road to Kanika Siding, located 35 km away from the mine site. It created serious air pollution. Coal transported through such a long distance on road would always cause pollution. This line will also help evacuation of coal from the upcoming Garjanbahal and Siarmal Mines”, says Mr A K Jha, CMD of MCL. Now the rail link and the siding at Sardega should help MCL’s Basundhara coal mines to step up production level, albeit gradually. From 10 million tonnes a year until recently, MCL’s plan is to produce and evacuate 100 million tonnes annually from Basundhara in Sundargarh district within a 5-year timeframe.

Way back in 2006, parent Coal India, had visualized that without the appropriate rail transport

infrastructure, coal dispatch to various distant locations of the country could not be achieved at a desired pace.

It had then proposed the Jharsuguda-Sardega line, directly connecting the Gopalpur-Manohar coal block in Basundhara area.

MCL, which operates 15 opencast and 5 underground coal mines in Angul, Jharsuguda and Sundergarh districts of Odisha, has plans to grow at 5% to 8% year - on - in the next 5 years and contribute about 25% of the CIL’s production. This needs solving the logistics conundrums.

In 2017-18, MCL has produced its highest -- 143.06 million tonnes of coal – in line with its set goals. The CIL arm, targets 250 million tonnes by 2020.

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| May 2018

Having ensured the movement of the output juggernaut in the designed trajectory not withstanding several operational and supply constraints the past, MCL is now set to forge ahead with its proposed thermal power venture in Sundargarh district. The 2x800 MW Super Critical Thermal Power Plant project is to be fed by Ib Valley coal.

MCL is also pushing to establish 10 million tonens a-year coal washers, two each in Ib Valley Coalfields and Talcher Coalfields for improving coal quality, yet another target.

Rough ride In the recent years, the Sambalpur-headquarterd CIL

subsidiary had encountered large-scale work stoppage at the Talcher Coalfields over rehabilitation and hurdles in the removal of encroachments inhibiting production. The delay in receiving regulatory clearances and legal issues too had slowed down the growth momentum. For realizing the rail link for the Ib Valley coalfield too it did not have any smooth way.

MCL Chairman tells CoalfieldTimes that the coal miner is seasoned by the heat and dust of the time; quality and environmental sustainability are now more synergized with the operational goals. It has made 91.5% of total coal production at 131 million tonnes through eco-friendly surface miners.

“For MCL, joint sampling arrangement through third party (CIMFR) is the norm now. Deployment of surface miner and selective removal of intermittent bands of stones ensure consistency of quality,” Mr Jha says. It has established strict monitoring; supervision 14 |

| May 2018

and NABL accredited coal sampling laboratory facility in almost all its mines.

Construction of a new ‘coal corridor’ road has been started in Talcher Coalfields at a cost of Rs 240 crore.

It has significantly reduced dust pollution in at least 10 villages and 9 colonies besides offices, stores, market areas, schools, dispensaries and hospitals.

Off-take issues Off-take has actually declined from last year on account of various factors, mainly due to frequent obstruction of coal transportation in Hingula area and stoppage of transportation to the siding during the summer months for more than 5 hours by orders of the district administration. Lesser supply of railway

rakes also affected off-take.

“Against the requirement of average 77 rakes, we could get about 70 rakes. Although there was much improvement during the last quarter, when we could get maximum 90 rakes on a particular date and the average was 78 rakes”, MCL chief notes. However, Mr Jha is hopeful and expects that this year the supply of rakes would improve.

Intervention of technology “We are not planning to make any significant changes in the operational matrix and administration. Though minor changes by introduction of ripper dozers in over burden removal promoting blast-less mining, mist sprinklers in mines to control and mitigate dust in operational areas and assimilating eco-friendly methods in all operations are being implemented”, he observes.

“For environment friendly coal evacuation, we are introducing tube-conveyor and silo-loading arrangements in many mines. Tube conveyor-silo construction in Lingaraj, Hingula and Bhubaneswari is in progress. Lingaraj mines will be operational

by August this year”, he adds. It is also proposed for Lakhanpur, Ananta and Basundhara. Bharatpur silo erection has been completed.

Technology intervention in all operational areas like Operator Independent Truck Dispatch System in dumpers and GPS in tippers for monitoring of vehicles deployed in mines and geo-fencing of mines to prevent diversion of loaded coal vehicles outside mine boundary. “Coalnet” and Aadhar based biometric attendance systems have also been introduce.

CMD of MCL asserts that timely refund to consumers through centralized road sale billing, online consumer grievances redressal system, introduction of online transit pass for road sale through Integrated Mines Minerals Management System (i3MS), autorefund of EMDs to unsuccessful bidders as well as in-motion road weigh bridges with RFID and its connectivity to “Coalnet” have been some of the key technology interventions in the recent past to bring more transparency in operational processes. MCL’s

headquarter has been made Wi-Fi enabled.

“In the next 5 years we will adopt more those practices and technologies to unravel potential in coal production and promote safe and eco-friendly operations for the sustainable development”, Jha states.

MCL’s fleet of HEMMs is procured from BEML. It has also brought about an increase in MSME contenders in providing spares and other ancillary equipment and parts of mining machinery.

“MCL is backfilling the abandoned mine areas with over burden material. However, as the over burden material is insufficient, maximum 50 to 55%, we have also created water harvesting ponds in the mine voids”.

On the exhausted mine land, it has gone in for reforestation after technical and biological reclamation. In fact, MCL engaged Odisha Forest Department in providing green cover throughout the coalfields areas and also in the compny run residential colonies. In 2017-18, MCL planted about 1.85 lakh trees on Government lands within its license area. Over the years, the total count of trees on the State’s land (in the MCL complex) touched 55 lakh, Jha estimates.

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NCL expanding

16 |

| May 2018

horizon quietly Northern Coalfields Ltd (NCL), though number three among the CIL subsidiaries, is considered the smartest and most efficient. The company has registered 93.01 million tonnes (mt) of coal production and 96.73 mt of coal off-take in 2017-18. Aiming to cross 100 mt soon, it is planning to make capital expenditure of around Rs 3000 crore in the next five years. Land and equipment, rehabilitation and addition of infrastructure would take care of the major portion of the investment.

Mr P K Sinha, CMD of NCL, is focused on the expansion and new projects as well as addition of technological muscle.

17 |

| May 2018

I

n the recent months, it was in the news for its expansion projects, particularly for its proposed Rs 741.62 crore expansion of Krishnashila mine in Sonebhadra district of Uttar Pradesh as well as its decision to use drones for aerial surveys. The Uttar Pradesh project has been thought of to raise the mine’s overall output capacity to 6.5 million tonnes per annum to from 5 mtpa.

“

The principal coal bearing asset of NCL lies in the Singrauli Coalfields of about 2202 SqKm, which is divided into two -- Moher sub-basin (312 SqKm) and Singrauli Main basin (1890 SqKm). Major part of the Moher sub-basin lies in the Sidhi district of Madhya Pradesh and a small part lies in the Sonebhadra district of Uttar Pradesh. Singrauli main basin, located

NCL’s 10 mechanized opencast mines are worked by large heavy earth moving machinery (HEMM) ...

in the western part of the coalfield, is largely unexplored. The present coal mining activities are concentrated in Moher sub-basin.

The coal supplies from NCL has helped production of about 10,515 MW of electricity from pithead plants of National Thermal Power Corporation, Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd and Renupower division of Hindalco Industries. NCL is also supplying coal to power plants of Rajasthan Rajya Vidyut Utpadan Nigam Ltd, Delhi Vidyut Board and Haryana State Electricity Board. No wonder that 88% of NCL produced coal is meant for the power sector.

As demand for coal is clearly rising in the northern region of the country, NCL has planned expansion of three opencast projects (OCP) and two Greenfield projects. All these surface mining projects are to be taken up by the year 2019-20.

Jayant Expansion OCP will double its current capacity (10.0 to 20.0 mtpa), while Block-B Expansion OCP will take its capacity from 3.5 to 8.0 mtpa. Dudhichua Expansion OCP also targets to double the existing 10.0 to 20.0 mtpa. The new projects planned are Bina-Kakri Amalgamation (10.0 mtpa) and Semaria OCP (2.0 mtpa).

The last annual report (of 2016-17) mentioned that there were two mining projects under implementation, Khadia Expansion (4 to 10 mtpa) and Nigahi Expansion (10 to 15 mtpa).

Both were expected to be completed by March, 2018.

As CoalfieldTimes wanted to know about the updates on these projects, Mr P K Sinha, CMD of NCL, sent this answer: “In view of the potential of our mega project Nigahi, we are looking forward to an addition of 2.25 mtpa in 18.75 mtpa current environment clearance EC of Nigahi. This would make it a more than 20 project. As expected, our five mega project namely Jayant, Nigahi, Dudhichua, Amlohri and Khadia will add 30 mt of coal per annum in upcoming 4 to 5 years, subject to environmental clearance”.

NCL’s 10 mechanized opencast mines are worked by large heavy earth moving machinery (HEMM).

It reportedly deploys largest fleet of draglines among the CIL arms and some of the largest shovel-dumper combinations.

Its tech smartness stems from its 3-D laser scanners, used for surveys and dumper operation training simulators. Besides these, its dispatch of coal is done through ‘rapid wagon loading systems’ in silos of coal handling plants. It has also introduced large capacity surface miners, electronic detonators and GPS based truck movement monitoring system.

Regarding the preparations for the upcoming opencast expansion projects for Jayant, Block-B and Dudhichua, he said the “revised PR of Block-B from 3.5 mtpa to 8 mtpa is under preparation in CMPDI. The draft PR for proposed Bina-Kakri amalgamation having 10 mtpa capacity is also under process in CMPDI”.

Larger equipment fleet In view of these projects, NCL has planned to add to its existing fleet of equipment. Supply order has been placed for purchase of 103 of 100-tonne

dumpers. Order for seven 10-cubic metre rope shovel will be placed shortly, NCL CMD indicated.

Also it is in the process of procuring six 70-kilo litre water sprinklers. It has planned to procure six draglines, 93 of 200-tonne dumper and four 20-cubic metre shovels and three 12-cubic metre hydraulic shovels.

The entire planning exercise has been undertaken by CMPDI. However, the CMD made it clear that NCL did not foresee induction of MDOs in the operational area and would implement the proposed projects itself.

NCL has been raising its performance bars. The financial year 2017-18 saw it surpass the assigned output and off-take targets. It registered 93.01 mt of coal production and 96.73 mt of off-take. The figures posted on both the fronts are highest since inception of the company.

In 2016-17, NCL had incurred a capital expenditure of Rs 1023.30 crores. “We have plans for overall capital expenditure of approximately Rs 3000 crore by 2020”, Mr Sinha added. The major part of this expenditure would be done on procurement of HEMM, construction of coal handling plants, land acquisition, rehabilitation and resettlement of people displaced by the forthcoming projects.

How does he foresee NCL’s growth path in 2018-19?

“NCL shall surge ahead and join the coveted club of companies producing 100 mt coal annually.

We plan to have diversified operations and take good care of all the stakeholders. NCL has huge potential and I see the company standing tall amidst the global mining giants at the end of five years”, Mr Sinha added.

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| May 2018

Komatsu

ready for bigger share of the Indian pie

In April 2017, Japanese mining, construction and industrial machinery major Komatsu acquired NYSE-listed Joy Global Inc. Now, the renamed entity - Komatsu Mining Corp. – is ready to grab emerging opportunities in India.

Shib Bhowmik, Komatsu Mining Corp Group, Country Head & Managing Director Joy Global (India) Limited, articulates his thoughts:

Ad Feature On the company’s growth prospect in India

opportunity in the market place.

Komatsu Mining Corp (formerly Joy Global) stands for

On new product support initiatives

safety, innovation and high productivity. In India it’s no different and we continue to work on those aspects

We continue to remain close to our customers and

together with our customers. We have introduced

have added LCM contracts, service contracts and

new products like entry drivers for high speed

other service modules depending on customer’s need.

drivage of gate roads in long wall mining. We will also soon introduce battery haulers in room and pillar

On thrust areas

operation to replace shuttle cars and add flexibility and higher productivity in operation.

Komatsu Mining Corp is market and technology leader in both underground and surface mining products. We are optimistic on growth opportunities in both the mining segments in India and continue to improve on safety, innovation and high productivity.

On key achievements in the recent past in the area of electric rope shovels We have added higher capacity, more productive, environment-friendly and higher value proposition hybrid shovels globally.

On the new technology trends in the space of electric rope shovels

For surface mining products, we are considering

In surface mining, the trend globally is to deploy

to introduce our highly acclaimed feeder breakers

bigger and more productive electric rope shovels to

to crush coal and reduce total investment for the

reduce cost of excavation. Trend also is to introduce

customers in coal crushing plants.

more automation.

We are also investing in our manufacturing and

On branding

supply chain in India to add more local contents as well as value addition and also for better reach out

Komatsu is unrivalled, the leading brand in mining

to customers. Our ‘direct service’ model, life cycle

and construction equipment and is the first recall by

management of the equipment and availability of

our customers globally.

parts and services are helping customers gain higher productivity.

On IMME 2018 participation

We are fully prepared and poised to seize opportunity

Komatsu Mining Corp. will participate in IMME 2018

on market growth. Now that we are part of a much

and will remain connected to our customers. We are

bigger group, we will look forward to more synergetic

yet to finalize the detailed plan for this exhibition.

21 |

| May 2018

SECL plans to dig

deep into technologies

S

outh Eastern Coalfields Ltd (SECL) in recent years has made a habit of being the largest producer among the subsidiaries of Coal India Ltd (CIL). Mr B R Reddy, CMD of SECL, spoke to CoalfieldTimes about his perception of the changing context of coal mining in India, plans for adoption of new technologies for sustainable operations and improving efficiency. Here is an edited excerpt: 22 |

| May 2018

What is the long and short of the pushes and pulls for the nation’s black diamond express?

The country’s Energy Policy aims to ensure electricity for all by 2022.

According to NITI Aayog’s India Energy Security Scenarios (IESS), 2047, the energy demand of India

mining, and surface miners in open cast (OC) mines. Deployment of high capacity HEMM in OC mines, especially at mega mines, and increased transportation by the likes of piped conveyor belts or rail roads are the way forward.

efficient handling of nagging issues such as land acquisition, obtaining forestry and environmental clearances and development of mine infrastructure conducive to promote environmentally benign mining operations.

In the ever changing coal market

Now a coal miner has to be focused on quality and prices too. Washing/ blending of all varieties to meet the ash content specifications is the key.

The sharp decline in prices of wind and solar energies, by about 60% and 52% (in KWH terms) respectively, between 2010 and 2015 has changed the context for coal for the long-term.

is likely to go up by 2.7 to 3.2 times between 2012 and 2040 with the electricity component itself rising 4.5 folds.

At present, coal has over 55% share in primary energy supply and over 75% share in electricity generation.

CIL and its subsidiaries have to meet challenges of optimum exploitation of coal, while addressing all the issues related to coal mining.

dynamics, subsidiaries of CIL have to adjust and innovate to meet the multi-sector demand.

The mining subsidiaries will have to aggressively go in for expansion of existing projects as well as plan new ones. These will need more

In India, price of coal is somewhat administered and still not purely market driven. CIL is practicing differential pricing strategy; different prices are charged to different categories of consumers.

As the country gradually moves towards multiple energy resources in the long-term, market forces will determine their share and prices, including those of alternatives and global

As CIL race towards a target of 1 billion tonnes by 2020 and beyond, it has to grapple with issues related to technology, environment, marketing and infrastructure.

All units of CIL are geared up for a technology shift; continuous miners in case of underground 23 |

| May 2018

competition.

Therefore, it is necessary that efficiency of domestic coal sector needs to be improved a lot to meet the emerging short to long-term scenarios.

How SECL is placing itself?

SECL is pursuing an ambitious output target of 239.6 million tonnes (mt) by 2019-20 as a part of the CIL’s Mission 1 Billion goal. It has planned incremental production from expansion as well as new projects. Our company is planning to achieve 52 mt incremental productions from expansion projects and around 29 mt from new projects by 2019-20.

We are going in for EC enhancement of Gevra OC from 41 to 65 mt, Kusmunda OC from 26 to 50 mt and Dipka OC from the existing 31 to 35 mt in phases by 2019-20.

Gevra is on way to reach 45 mt and Dipka to 35 mt soon.

Ten new projects are at different levels of implementation. Some projects are ready for production awaiting some statutory clearances

“

SECL has opted for ecologically sustainable and economically efficient mass production technologies...

and a few are in process of land acquisition.

We had planned to start 5 new opencast projects out of ten, namely Jaganathpur, Batura, Saraipali, Ambika and Bijari in 2017-18. But unfortunately all have missed deadlines. Though, Saraipali and Bijari are likely to be started very soon. The main problems had been land acquisition, rehabilitation and resettlement.

SECL is persistently adding infrastructure for faster evacuation of coal. Constructions of new sidings are on in view of increasing production in Korba and CIC coalfields.

Rapid loading system (RLS), very high capacity silos with merrygo-round are in operation at Gevra Expansion OC and Dipka Expansion OC projects. With two subsidiary companies -- CERL and

24 |

| May 2018

CEWRL, SECL is in the process of creating two major rail corridors in Chhattisgarh.

How SECL plans to manage the technology-related issues?

Enhancing coal production and productivity in a short period with due regard to environment as well as quality require adoption of appropriate technology and micro managing operations innovatively.

SECL has opted for ecologically sustainable and economically efficient mass production technologies.

In opencast mines, use of higher capacity HEMMs, which produce lesser pollution per unit than the low-capacity variants, is a conscious choice. Similarly, surface miner technology, which eliminates the use of drilling blasting and crushing operations, has contributed immensely in energy saving and reduction in pollutants.

In underground mines, continuous miner technology, which also bypasses drilling, blasting and crushing of coal, reduces overall energy consumption, saves costs and increases safety at mine faces through better roof control.

In the underground mine, we are introducing continuous miners. Blast-free and energy efficient Highwall Mining has been introduced at Sharda underground mine of Sohagpur area. Also man-riding is being introduced in underground mines wherever feasible to increase productivity.

In mega opencasts mines of SECL, high capacity HEMMs such as 42m3 electric rope shovels for loading and 240T rear dumpers for transport with 850 HP dozers have been provided. Surface miners have been deployed in mega opencast projects of SECL such as Gevra, Dipka, Kusmunda, Chhal and Baroud. Surface miners have also been planned in additional 6 mines considering technical feasibility.

In-pit conveyors, silos and rapid

loading systems are envisaged for coal evacuation in all mega opencast projects. In-pit conveyors system is fully commissioned in Dipka and is under process of installation in Gevra and Kusmunda.

What it takes to maintain and improve performance levels?

These are results of meticulous planning and its rigorous implementation.

Opening of new projects, expansion of current projects, application of latest mining technology and huge coal reserves, worked upon by a dedicated team, has been responsible for the record coal production every year.

In my view, figures are incidental as long the direction is right in an organisation. The spirit and momentum brings in result naturally.

T

IPL

charges ahead in the upward curve

T

he mining equipment industry has begun to see light at the end of long tunnel. Coal India has already set in motion multifarious actions that generated orders for the industry players. The private and public power producers are also gradually turning active on their allocated coal blocks. It seems that the industry’s lean patch is over. Tractors India Private Ltd (TIPL), after recording a jump in sales growth of 40 per cent in 2016, is looking forward to an on-set of an upward cycle for the country’s mining equipment industry. Dipankar Banerjee, Chief Operating Officer, Mining Business of Tractors India Private Ltd (TIPL) shared his views on the changing industry dynamics to Coalfield Times.

What is the current trend in the Indian coal mining scenario? Is the demand for mining equipment witnessing a real pick-up?

Things have definitely started moving after years of a standstill.

It took time to overcome the inertia. The cancellation of mining rights and reallocation of coal blocks have taken its toll 26 |

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on the whole sector, including the equipment vendors. The coal mining industry, the big boy of the sector, has undergone a period of transition and readjustment. As a consequence of reallocation of blocks, the miners and MDOs have had to grapple with the regulatory issues.

The second half of 2016 saw a number of contracts getting awarded in the surface mining segment to the MDOs by private coal miners. Actual work on the ground, however, is yet to start.

Deployment of machinery could not take place in 2017. As things stands, it seems MDOs would get cracking in 2018.

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Meanwhile, some of the Coal India Ltd’s subsidiaries went in expansion mode, both in surface as well as in underground mining.

Two CIL subsidiaries NCL and SECL   finalized tenders for electric rope shovels and large dumpers.

These lent a significant push to the mining equipment industry and marked major such buying first time in a decade by any coal miner in the country. In case of underground mining, Further, ECL and SECL bought 4 continuous mining packages.

These long-term packages have a contractual life span of 10 years involving installations and maintenance. Before these, only

3 continuous mining packages were running in the country. For equipment players like TIPL, these milestone orders provided a big boost.

Post mine reallocation what are the key emerging realities?

MDOs are turning out to be real drivers in the near future.

Currently, they contribute around 40% of the mining operations in the country. My guesstimates suggest that by 2020, MDOs would be controlling 60% of the mining operations. The introduction of reverse auction has already set in motion a new era of cost efficiency and competition. This is going to

change the story of Indian coal mining, particularly in the private space. Public miner Coal India is also transforming itself in terms reducing its costs. The mining activity in India is predominantly in the coal, occupying 70% of the total. If this sector turns costefficient in tandem with global standards, the resource mining battle here, even in down cycle, will be more than half won.

How had been TIPL’s sales growth in 2016 and what was in 2017?

Thanks to our successful bids for some of the recent large Coal India tenders, we saw 40% growth in sales in 2016. Projection for growth during this calendar year is around 25%. As the private sector space warms up with activity in the near future, the prospects seems bright this year.

How do you foresee the future next three to five years for the mining equipment industry?

The visibility of the upward cycle for the industry is clear. Power plants and Coal India are in the active mode. The 2018 should be better year for all equipment suppliers. In the coming years, apart from Coal India and private sector coal miners, another set of players, such as NTPC and West Bengal Government agencies, are expected to turn active with their blocks.

Development of Deocha Pachami in West Bengal, considered as the largest coal block, could be crucial for the industry in the coming years. There will more projects going forward to confirm the up-cycle journey for the mining equipment industry.

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Nagarnar: NMDC paves way for coking coal from down under

The debt-free NMDC is creating new steel capacity for the nation as well as creating its own buyer. We may move on to build more new capacities in the future�, Dr N K Nanda, Director (Technical), NMDC

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MDC Ltd is finally looking for metallurgical coal. After half a decade of downward cycle, it seems that country’s biggest iron ore miner

could enter the slog over soon for implementing its proposed 3 MTPA integrated steel plant at Nagarnar in Bastar.

The first thing it needs to line up

is to fire up the two coke oven batteries through imported coal from Australia. The rail link to bring coking coal from the Vizag port is almost ready.

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Though the R 15,525 crore project is delayed, the timing is eventually right. Several other packages that were delayed have now been taken up for expeditious execution.

coking coal a year to feed the coke oven batteries. The Rs 140 crore GE India installed operational power receiving system at the plant’s main receiving station is operational.

Dr N K Nanda, Director (Technical), who recently switched on power to the coal handling system and HT power supply to the stacker and reclaimer to start commissioning of the coal route of RMHS package at Nagarnar, told CoalfieldTimes that thing on course.

The system is designed to receive power from Chhattisgarh State Power Transmission Corporation Limited through a sub-station at Parchanpal in Bastar district and distribute it to different units of steel plant. The power distribution system is also in place.

The steel plant would need to handle 2.5 million tonnes of

Of the steel plant’s total power requirement of 296MW, NMDC

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Kirandul Mines, NMDC

miner, is likely to transfer the project to a subsidiary, he added.

“The debt-free NMDC is creating new steel capacity for the nation as well as creating its own buyer.

We may move on to build more new capacities in the future”, he commented.

Meanwhile, the overseas iron ore project of NMDC was being reviewed as the global steel demand picked up. Dr Nanda indicated the listed Australian

Downhill single flight long distance conveyor (5 Km approx)

proposes to take 241 MW from the grid through CSPTCL and the balance will be generated inhouse.

Pellet Plant, NMDC

Dr Nanda said the steel project might have been delayed by about three years, but it would bring long-term development to backward Bastar. Going forward, NMDC, the lowest cost iron ore

subsidiary of NMDC – Legacy would refocus on its iron ore (magnetite) assets. “For the time being, its gold tenements are attracting more attention.

Mining of gold could commence in a couple of years. However, our Tanzanian gold assets may yield results sooner through a pilot project”, he observed.

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