INDA 2017

Best of Germany 2014 - Mining Equipment and Mining Technology

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INDIA 2017 7 Coal Mining in India ated by the SECL in Korba coalfields having an estimated reserve of 10,074.77 mt. The project is reported to be part of CIL plan to achieve production of 1 billion tonnes by 2019-2020. CIL currently operates 15 washeries. 3 non-coking coal washeries with feedstock capacity of 13.5 mtpa and 12 coking coal washeries with feedstock capacity of 23.3 mtpa. The company had planned to set up 15 new coal washeries in next three years. Of the 15 new coal washeries, 9 are non-coking of a capacity of 94 mtpa and six are coking washeries of capacity of 18.6 mtpa. Coal India Ltd and Bharat Coking Coal Ltd have agreed to set up 12 new coking coal washeries by 2019-2020. Coal India Ltd is also working on acquiring coking coal assets, increasing domestic produc- tion and minimising diversion of coking coal to thermal plants. Coking coal imports is expected to reduce by 20-25 % due to these measures. In Singareni Collieries Company Limited [SCCL], Out of total 26 projects, 22 mining projects and 04 non-mining projects costing Rs. 20 crore (€ 2.73 million) and above are under implementation in SCCL. Out of these 22 projects, 08 projects are on schedule and 14 projects are delayed. Adriyala Shaft Project is the Government of India approved proj- ect with capital outlay of Rs. 1228.39 crore (€ 168.27 million). and rated capacity 2.817 mtpa. Production from Longwall Technology in Adriyala Shaft Project commenced from October 15, 2014. SCCL is planning to open 10 new projects in the beginning of next financial year (2016-2017). Several new mines are proposed to be opened in 2016-2017, including Bellampally OC -2, Kasipeta -2, Shanthi Khani Continuous miner, Koyagudem OC-2 Pit-1, J.V.R.O.C.2, Manuguru OCP, K.T.K. OC-2, P.V.K. Continuous miner and KKOC. They are expected to produce 130 lakh tons per year. 3 Washeries, each of 1 mtpa capacity are in operation on BOO basis – Ramagundam, Mandamarri and Manuguru. Three more coal washeries with 10 mtpa total capacity are in pipeline – JVR- 4 mt, RG-II- 3 mt and Khairagura- 3 mt. Present Status of Coal Projects On August 25, 2014, judgment was delivered by the Supreme Court that the allotment of coal blocks made by the Screening Committee of the Government of India, as also the allotments made through the Government dispensation route are arbitrary and illegal. Since the conclusion arrived at would have potentially had far-reaching consequences, on which submissions were not made when the case was heard, the question of what should be the consequences of the declaration was left open for hearing. Accordingly, it was heard several learned counsels appearing for a very large number of interveners, impleadment applicants and State Governments. Substantive submissions were made, amongst others, by the Coal Producers Association, the Independent Power Producers Association of India and the Sponge Iron Manufacturers Association. For the purposes of these "consequence proceedings", the Union of India filed an affidavit dated September 8, 2014. It is stated in the affidavit that coal is actually being mined from 40 coal blocks listed in Annexure I to the affidavit. This list includes two coal blocks allotted to an Ultra Mega Power Projects (Sasan Power Ltd. [UMPP] allotted the coal blocks Moher and Moher Amroli Extension). Coal blocks allotted to UMPPs have not been disturbed in the judgment. In addition to the above 40 coal blocks, it is stated in the affi- davit that 6 more coal blocks are ready for extraction of coal in 2014-2015. These 6 coal blocks have obtained the Mine Opening Permission from the Coal Controller's Organization under Rule 9 of the Colliery Control Rules 2004 (framed under the Mines and Minerals (Development and Regulation) Act, 1957). This permission is granted subsequent to the execution of a mining lease. Therefore, the affidavit is quite clear that 40 coal blocks are already producing coal and 6 coal blocks are in a position to pro- duce coal virtually with immediate effect. The question is whether the allotment of these coal blocks should be cancelled or not. It was submitted by the learned Attorney General that after the declaration of law and the conclusion that the allotment of coal blocks was arbitrary and illegal, only two consequences flow from the judg- ment. The first is the natural consequence, that is, the allotment of the coal blocks (other than those mentioned in the judgment) should be cancelled and the Central Government is fully prepared to take things forward. The second option is that 46 coal blocks (as above) be left undisturbed (subject to conditions) and the allotment of the remaining coal blocks should be cancelled. Expounding on the alternative consequence, it was submitted that Coal India Limited (CIL) a public sector undertaking can take over and continue the extraction of coal from these 44 coal blocks without adversely affecting the rights of those employed therein. However, it was submitted that CIL would require some time to take over the coal blocks and manage its affairs for continuing the mining process. Learned Attorney General submitted that all the allottees of coal blocks should be directed to pay an additional levy of Rs. 295 (€ 3.78) per metric ton of coal extracted from the date of extraction as per the Report of the Comptroller and Auditor General (CAG) dealing with the financial loss caused to the exchequer by the illegal and arbitrary Future Projection of Production from Projects (Mt) Projects 14-15 15-16 16-17 17-18 18-19 19-20 Existing + Completed 190.57 190.57 185.03 177.24 177.64 164.96 Ongoing 315.56 354.93 399.76 437.56 502.65 561.48 Future 00 0.07 00 2.55 0 12.81 0 45.89 0 93.40 181.66 Total 506.21 548.05 597.60 660.68 773.70 908.09 Year Periods Production (Lt) 2014-2015 Sept 2014 to March 2015 7.07 2015-2016 April 2015 to March 2016 18.51 2016-2017 April 2016 to Oct 2016 10.68 Import of Coal to India in 2015-2016 Type of Coal Quantity (mt) Value Rs million ( € million) Coking 0 44.561 282,519.00 0 (3,871.01) Non-Coking 159.388 577,189.00 0 (7,906.70) Total 203.949 860,338.00 (11,785.45) Source Country-wise Import of Coal to India During 2015-2016 Country Quantity (mt) % Share Indonesia 0 97.514 0 47.81 Australia 0 48.894 0 23.97 South Africa 0 36.901 0 18.09 USA 00 5.815 00 2.85 Russia 00 3.822 00 1.87 Others 0 11.003 00 5.41 Total 203.949 100.00 Export of Coal from India by Destination During 2015-16 Country Quantity (mt) % Share Bangladesh 0.841 0 51.68 Nepal 0.559 0 35.49 Bhutan 0.069 00 4.38 United Arab Emts 0.067 00 4.25 Iran 0.064 00 4.06 Others 0.002 00 0.13 Total 1.575 100.00

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