Coal mining

Overview

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, 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.

EMIL is the largest mine-developer-cum-operator (MDO) in the private sector in India. EMIL currently operates two projects — Bhubaneswari Coal Mine & Rajmahal Coal Mine, through its subsidiaries Bhubaneswari Coal Mining Limited (BCML) in Odisha & Rajmahal Coal Mining Limited (RCML) in 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 largest coal mine, 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. Since then, it a history in making. Year after year BCML has surpassed the targets given by MCL. In the very first full year of operation, it produced 11.44 Mn Te of coal and considered as the fastest ramp up of coal production in Indian coal mining history. Year on year, BCML has grown its coal production and achieved the peak rated capacity one year before its schedule. Contractually, it is expected to produce 269.5 MnTe of coal over 15 years. Its contribution in the growth of MCL both volume-wise and profit-wise has been applauded by both MCL authorities as well as entire coal mining fraternity. The stellar performance of BCML Year-wise Coal production as depicted in graph:


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

RCML

EMIL is the lead partner in the consortium operating the Rajmahal Coal Mining Ltd (RCML). Rajmahal Coal Mines of Eastern Coalfields Ltd is located in Godda District in the state of Jharkhand.

RCML which operates the Rajmahal open cast mines of Eastern Coalfields Ltd., is a Government of India undertaking. The mining operation is expected to produce 200 Mn Te of coal over 12.5 years. The mining operation has started in July 2013.The physical possession of land is in the scope of RCML; in FY17, 5 small hamlets, in FY18 –Bhadotola- a major village and in FY19 the land of Basdiha was utilized. This established itself as a partner to Eastern Coal Fields (ECL) in Relocations and Rehabilitation (R&R). The coal production figures are:


At RCML, OB stripping is using large size state of art HEMM, including those using ACERT technology engines for fuel conservation and minimizing emission.

A surface miner has been introduced for the first time in the Rajmahal OCP to improve quality parameters of coal.

Successful dove-tailing with ECL CHP (20 years Old) without disturbing the existing structures of the ground bunker with conveyor system and a 4 km conveyor is being installed for the transportion of +0 – 100 mm crushed coal directly from the pit to the ground bunker of the ECL.

FRCML takes all needful steps to comply with the existing statutory requirement under Rules, Regulations and Acts. Advanced blasting method is being practiced to minimize the environmental impact on surrounding areas.

As soon as the mined out areas become available for backfilling and subsequent reclamations, the restoration is being practiced.

Madanpur South Mine

After successfully operating two Coal MDO projects at Bhubaneswari Coal Mining Limited (BCML) and Rajmahal Coal Mining Limited (RCML), EMIL has bagged another project —Madanpur South Mine.

Madanpur (South) Coal Block was allocated by Ministry of Coal to APMDC (a Government of Andhra Pradesh State Undertaking), on 29th September, 2016 for commercial mining. The block is a virgin coal block.

APMDC invited proposals from experienced Mine Developers and Operators for planning, operation, financing, construction & development of the Madanpur South Coal Mine (Opencast) on 19th March, 2018 and subsequently after a competitive bidding process, M/s Essel Mining & Industries Ltd emerged as the successful bidder. The final agreement to execute the project was signed on 8th March, 2019.

Brief Synopsis of Madanpur South Coal Block:

Area of Coal Block : 712 Ha

Geological Reserve : 192 Mill. Tonne

Extractable Reserve : 159 Mill. Tonne

Stripping Ratio : 6.06

Rated Capacity of Mine : 5.4 MTPA

Life of the Mine : 33 Years

The development period is of 720 Days to start the coal production from the project.