Coal mining

Overview

EMIL is the largest mine-developer-cum-operator (MDO) in the private sector in India. EMIL currently operates two projects — The Bhubaneswari Coal Mining Ltd. & Rajmahal Coal Mining Ltd., through its subsidiaries in Odisha & Jharkhand states respectively.

EMIL diversified into coal mining business following the Government of India’s decision to invite private participation to bridge the deficit in coal production. EMIL became the first MDO in India when it was awarded the Bhubaneswari open cast project, now the third largest coal mine in India, under Mahanadi Coalfields Ltd. (MCL) in Odisha.

BCML

EMIL is the lead partner in the consortium operating the Bhubaneswari Coal Mines Ltd (BCML). Operations commenced in November 2011. BCML attained 11.44 Mn Te in the very first year of production, exceeding MCL’s target production of 9.9 Mn Te. In FY 14 -15 and FY 15-16, BCML achieved record coal production of 19.74 MT and 23.56 MT against the production target of 17.5 MT and 18.5 MT respectively. The mining operation achieved a rated peak coal production of 20 MT per annum one year in advance and is expected to produce 269.5 MTe of coal over 15 years.

An EMIL-led consortium manages the Rajmahal Coal Mines Ltd. (RCML) which operates the Rajmahal open cast mines of Eastern Coalfields Ltd., a Government of India undertaking. The mining operation is expected to produce 200 million tonnes of coal over 12.5 years.

EMIL’s efforts to increase production using sustainable practices have been widely recognised. BCML has won the Coal Mining Contractor of the year award instituted by FIMI at the 2013 Indian Coal Market Conference and ‘Best Performing Civil Contract’ by Mahanadi Coal Fields Ltd. (MCL) on May 1, 2016. The unit has also won several awards at the annual Safety Fortnight celebrations organised jointly by MCL and the Director General of Mines Safety.

EMIL’s operations have resulted in higher realisation of coal, hassle free environment for managing operation, optimal time utilisation and greater emphasis on environment and safety.

RCML

Rajmahal Coal Mining Ltd. (RCML) has been set up as a special vehicle project (SPV) for the contract with Eastern Coalfields Limited (ECL). Rajmahal Coal Mines of Eastern Coalfields Ltd is located in Godda District in the state of Jharkhand.

The company would attain peak production levels of 17 MTPA in FY 2017 with overburden volume of around 13 Mn CuM. The scope of work also includes laying of 6 Km cross-country conveyor belt for coal transportation. The mining operation has started in July 2013. EMIL, the mining arm of the Aditya Birla Group, is in mining business since 1950 operating iron ore mines in the Barbil region of Orissa. To garner the experience gathered in iron ore mining, EMIL has decided to diversify in to other minerals like coal etc.

However due to policy restriction, coal for merchant mining is not allowed to private sector in India and the only available route to enter into the sector was through the mine developer cum operator (MDO) route. The MDO contractor carries out entire gamut of activities right from land acquisition, resource & referees (R&R), mine planning to development and operation of mine and coal extraction and coal transportation up to the owner's loading silo on behalf of mine owner who holds the mining lease. In return, the mine owner pays a contractually agreed fixed mining fee on per tonne of coal and/or per cum of over burden (OB) basis to MDO. Large sizes heavy earth moving machinery (HEMM) are deployed to achieve economies of scale. Focus is more on achieving higher levels of equipment availability through Maintenance and Annual Repair Contracts (MARC) given to reputed vendors. Currently a system is being explored where coal cut from surface miner will be directly loaded onto conveyor belt for transporting up to coal stack yard/end-use plant thereby eliminating the use of pay-loader and coal transportation by trucks and eventually resulting in diesel savings.