Means for improvement of Production and Productivity in Indian Coal Mines - A Case Study

A. Manohar Rao
Chief General Manager, Corporate & Project Planning Dept, SCCL
Inumula Satyanarayana
Deputy Manager, Project Planning Dept, SCCL

Keywords: demand, economic reforms, production, productivity, opencast mining, underground mining,
stripping ratio, Longwall, Surface Miner, Washery, Total Productive Maintenance, Business Strategy

ABSTRACT: Coal is the natural choice as primary energy source in India. India is the third-largest coal-
producing country after China and USA. India’s domestic consumption is expected to increase multi-fold
within the next five to 10 years, due to the completion of ongoing power projects, and demand from steel
mills, cement producers and other industries. India imports coal to meet this demand. Non-coking coal re-
serves make up about 85 percent while coking coal reserves are the remaining 15 percent. Since oil shocks
of seventies, coal is the single most important energy source for India. India needs to sustain an 8% to 10%
economic growth rate, over the next 25 years. Coal provides 52% of primary energy for India against 27%
Globally. 65% of power generation in India depends on coal against 41% internationally and the trend is
likely to continue in the foreseeable future 21. Integrated Energy Policy envisages a coal demand of 2.04 Bt.
in 2031-32 with 8 % GDP growth & 2.34 Bt. with 9 % GDP growth in the TY of XV Plan22. India has the
fourth-largest reserves of coal in the world after USA, Russia, China. So, there is utmost need for enhance-
ment of production and productivity in India which needs revolution in economic reforms, technological
upgradation, intensive mechanization, detailed exploration and opening up new projects.
This paper deals with the means for improvement of production and productivity from both opencast and
underground coal mines with case studies from Singareni Collieries Company Limited (SCCL).

The five major coal consumer countries which are

1 INTRODUCTION
Coal is the second most important primary energy
source behind oil. There are recoverable reserves in
around 70 countries, with the biggest reserves being
in the US, Russia, China and India. Other important
coal producing countries include Australia, South
Africa, and Russia.9.
Global coal production increased 6.3% (219 MToe)
with China (+9%) again accounting for two-thirds of
global growth. Coal production grew robustly in the
17
US and Asia but fell in the European Union .
China, USA, India, Japan and Russia account for
72% of global coal use. Asia is the biggest market of
coal contributing more than half of global coal con-
sumption. Coal plays important role in electricity
generation, steel and cement manufacturing world-
wide. Currently 39 % of global electricity is pro-
duced by coal-fired power plants and about 70% of
world steel production depends on coal feedstock 16.
According to all available estimates, Coal is slated to
be the mainstay for fuelling the growth of power
sector for the next 40 to 50 years. Predictably, the
demand for coal has been soaring but the limited

1
domestic reserves and the associated quality issues
have rendered acquiring coal linkages as one of the
most difficult tasks for developers20.
India is the 3rd largest Coal Producing Country after
China and USA. Coal is the predominant source of
energy in India and it has significant contribution in
the rapid industrialization of the important source of
energy for electricity generation and industries such
as steel, cement, fertilizers and chemicals are major
coal consumers15.
The World Economic Outlook released by the Inter-
national Monetary Fund confirms the likely contin-
ued high growth trajectory of Asia. Along with
China, India is likely to be an important part of this
economic growth.
The total coal resources assessed are about 285.86
billion tonnes of which 114 billion tonnes or about
40% are proved reserves which is about 7.5% of the
total world coal reserves (860.938 BT). With the
present level of production (5.8% of the total world
production-7.27 BT), these reserves would be ade-
quate to sustain for more than 100 years. However,
exploration is a continuous process and new re-
sources get added year on year. The latest proven re-
serves represent a 3.6 percent increase over the pre-
vious year’s 110 billion tons.
Coal deposits here occur mostly in thick seams and
at shallow depths. Indian coal has high ash content
(15-45%) and low calorific value. The use of benefi-
ciated coal has gained acceptance in steel plants and
power plants located at a distance from the pithead.
The energy derived from coal in India is about twice
that of energy derived from oil, as opposed to the
rest of the world, where energy derived from coal is
about 30 percent lower than energy derived from oil.
The demand of coal in the country is increasing year
by year as energy sources from different industries
and the projected coal demand during the period
2011-12 is about 731 MT against the projected pro-
duction of 629.91 MT. Despite all this, the Indian
coal ministry projects a coal supply shortfall of up to
142 million tons in 2012. With the increasing de-
mand of coal, more mechanized opencast mines are
coming up. Presently, this technology dominates the
coal industry contributing more than 88% of coun-
try’s coal production. The share of underground coal
production in the country has been declined from
73% in 1974-75 to 12% in 2010-201115.
However, at present only 38% of Indian coal re-
serves is mineable by opencast mining within eco-
nomic limit whereas the remaining 62% is to be ex-
ploited by underground mining. The SDL/LHD
technology has almost become obsolete as there is
no improvement in productivity but increase in
wages resulting in huge wage cost component to the
tune of 70 – 80% in the cost of production. There is
a need for bulk production from underground mines
by introducing High capacity Longwalls and Con-
tinuous Miners.
2 PRODUCTION ENHANCEMENT
Today civilization is measured in terms of per capita
energy consumption. Consumption of per capita
commercial energy in India is 0.2 Toe, while in US,
it is 7.82, and even China, 0.66. World average is
1.43 Toe. If the country’s population, by 2030,
grows to 1.3.billion and achieves an economic
growth of 6-7%, the country would enhance its
power generation from a present level of 1 lakh MW
to 3.8 lakh MW. This means country’s coal require-
ment has to go to 1300 MT. It is needed heavy capi-
tal investment in the coal industry for getting a quan-
tum jump. Neither the PSU coal companies facing
severe resource crunch are able to invest nor is Gov-
2
ernment able to extend budgetary support, stopping CIL announced phasing out of hand section in the
many other development activities. PSU coal com- current plan period itself. Intermediate technology
panies are unable to generate internally to invest for is easy to absorb. Coal production costs could be
higher production. Despite capital inducted in PSUs, reduced by at least Rs. 200 per tonne.
instead of paying dividends, some of them are in The Opencast profitability goes down due to in-
debt trap 11. creased depths upto 250 to 350 m. and stripping ra-
Growth of coal Industry was sluggish prior to 1970s tios of over 1:13. They would not be able to cross-
– less than 2% per annum. During 1975-91 massive subsidise underground mines any more.
investment by Govt. helped to achieve a growth rate
2.1 General Economic Reforms
of 5.3%. In 1991, Govt. adopted a policy to keep
The economic reforms initiated by Govt. of India
PSUs at arms length. Progressive phasing out of
have led to a critical phase of transition and re-
budgetary support commenced. Budgetary support
structuring of the Indian industry. A number of pol-
completely phased out in 1996-97 as fallout of liber-
icy initiatives were undertaken so far as a part of
alisation. However, a pragmatic coal pricing policy
New Industrial Policy. The objective of New Indus-
was put in place to enable CIL mobilize internal re-
trial Policy is to promote growth and to increase ef-
sources. Private investment was not forthcoming due
ficiency and international competitiveness.
to non-remunerative coal price and Hiking Coal
The New Industrial Policy was Substantial reduction
price was not feasible. Substantial investment was
in the scope of industrial licensing, Simplification of
required to reach a level of 8% growth to sustain
procedures, rules and regulations, Reforms in MRTP
GDP growth of 8%. Integrated Energy Policy envis-
(Monopolies And Restrictive Trade Practices Act,
ages a coal demand of 1.5 BT in 2031-32 under the
1969), Reduction of areas reserved for Public Sector,
least coal intensive option or 2.6 BT otherwise. As
Disinvestment in selected Public Sector Enterprises,
projected in Coal vision 2025 doCument, the de-
Enhancing limits of foreign equity participation in
mand at 8% GDP will be 1.25 BT by 2025. Working
domestic industrial undertakings, liberalisation of
group on coal & lignite (WG) has detailed the pro-
trade and exchange rate policies, extension of the
jected demand in 2011-12 is 731 MT that rises to
scope of MODVAT, etc11
1125 MT in 2016-17. All India production during
The Reforms need to be proposed in Coal Industry
2011-12 and 2016-17 are 680 MT and 1055 MT,
are :
leaving a gap of 51 and 70 MT respectively12.
• To invite private capital and to attract im-
The existing PSUs need to increase productivity, ca-
ports.
pacity utilisation and efficiency. They need to grow
• Withdrawal of budgetary support.
to stand competitive and sustain for facing the mar-
• Deregulation of all grades of coal from the
ket forces. They go for adoption of IT in various op-
earlier administered pricing regime, making
erations like exploration, mine design, mining, mar-
the market forces to dictate the coal prices.
keting and Enterprise Resource Planning for better
decision making. • Reduction of tariffs on imported coal.

3
• Encourage long term Fuel Supply Agree-
ments (FSAs).
• Investor friendly recommendations of Plan-
ning Commission’s Committee on Integral
Coal Policy.
• Review of regulatory frame work to make
coal industry investor friendly.
• Proposed amendment to Coal Mines Nation-
alization Act allowing any Indian company
to mine coal for commercial purpose.
• Amendments to Contract Labour (Regulation
& Abolition) Act, 1970, permitting presently
prohibited activities to be done deploying
contractors.
• New proposed Coal and Lignite (R&D) Bill
permitting reconnaissance, prospecting and
mining operations to be allotted through
competitive bidding.
• expediting institutional reforms
• Legislative amendments
• Extend fiscal concessions and tax benefits in
line with other infrastructure sectors.
• Accelerate exploration work
• Streamline procedure for land acquisition,
forest land diversion and environmental
4
clearance
• Need for clean coal technology and coal ben-
eficiation for low emissions; amendment to
environment act.
• New business strategy like Mine Developer
‘Cum’ Operator (MDO), Technology Pro-
vider ‘Cum’ Operator (TPO), Risk/Gain
sharing, Public Private Partnership (PPP) can
7
be worked out .
• Establishment of Coal Washeries for improv-
ing Useful Heat Value (UHV) or Gross Calo-
rific Value (GCV) of Coal.
• Introducing Concept of Cost plus Projects
2.2 Enhancement of production and
productivity in OC Mines
With increased demand of coal, there has been cor-
responding increase in size and depth of opencast
mines all over the world. In the coal mining sector, it
has been found economic to open large opencast
coal mines for reasons of economy of scales. More-
over, underground mining being more hazardous and
less economic compared to opencast operations,
there has been continuous endeavour to operate lar-
ger and deeper opencast mines. There has been a
continuous increase in the size of the opencast min-
ing machinery facilitating larger and deeper open-
cast mines to be operated profitably.
In India, the number of operating opencast mines is
steadily increasing as compared to underground
mines. It is due to low gestation period, higher pro-
ductivity, and quick rate of investment. In trend with
the global scenario, opencast mining has witnessed a
sea change in India during the last 30 years. From
small scale mining operations of the seventies,
opencast mining operations of Coal India Limited
(CIL) now, encompass a wide variety of geo-mining
conditions with steeply dipping seams upto 45 de-
grees, thick seams upto 134 meters and the depth of
operations planned exceeds 300 metres. There has
been an increasing trend for increase in the stripping
ratios associated with coal mining by opencast.
The deeper deposits have to be mined at high strip-
ping ratios involving large scale movement of over-
burden. The scale of operation has increased consid-
erably with some mines producing more than 10
million tones (Mt) of coal per year (with the largest
mine producing over 29 MTPA) by using large ca-
pacity heavy earth moving machinery19.
4
2.2.1 Reasons for Poor Production & Productivity
• Limited Opencastable reserves
• High Initial Capital
• Steep Gradient leads to high Stripping Ratio
and larger area of external dumping
• Land Acquisition
• Ministry of Environment & Forests (MoEF)
Stipulations.
• Deeper deposits
• Poor Maintenance of Haul Roads
• Poor Maintenance of HEMM
• Stability of Pit and dump slopes
• Poor utilization of HEMM
• Rehabilitation and Resettlement
• Environmental Issues
• Mis-matching HEMM Combination
• Long Lead and Lift
• Poor Training
• Wild Life Board Permissions
2.2.2 Means for Improvement in Production &
Productivity
• Whenever it is feasible, the developed pillars
of underground mines are being extracted
through opencast operations. This Necessi-
tates introduction of higher size equipment to
work at a larger Stripping ratio in mines with
capacity not less than10 mtpa.
• High Capacity Draglines with bucket capac-
ity of 45-55Cum.
• High Capacity Rope shovels up to 42 Cum
with 240T Rear dumper and 10 Cum rope
shovel with 85T/100T/120T dumper to con-
tinue as backbone
• 10-15 Cum hydraulic shovel with 850 HP
Dozers.
• Life cycle MARC (Machine Repair and Con-
tract) with Original Equipment Manufactur-
ers (OEM).
• In-pit crushing & conveying technology as
an alternative for large volume handling
• High wall mining
• Trolley assist dump trucks for long distance
haul Use of Mobile crushing unit
• Use of IT & Robotics in mining operation.
• High Capacity Surface Miners for selective
mining of Coal.
• Effective and energy efficient lighting sys-
tems.
• Intensive training for Operators and mainte-
nance crew for efficient working of the
Heavy Earth Moving Machinery (HEMM).
• Adopting Hot seat exchange.
• Adopting Operator Independent Truck Dis-
patch System (OITDS)
• Improvement of haul road Conditions.
• Improving HEMM Utilization
• Application of Total Productive Maintenance
in all functional areas of the organization.
2.3 Enhancement of production and
productivity in UG Mines
There is a need for containing the ever mounting
losses from underground mining in the light of
emerging competition in coal sector and limitations
of enhancing opencast production in the long-run.
For a healthy and balanced growth of coal mining
industry in the coming decade, it is essential that un-
derground production should increase at a more
rapid rate18. This is possible only by introducing ex-
tensive mechanization in underground mines and
adopting new technologies. The introduction of new
technologies like Longwall, Shortwall, Blasting gal-
5
lery and Continuous miner in SCCL have resulted in • Opening large Longwall mine (3-10 MT)
increased percentage of extraction15. within XIIth plan period
There is also a need for Technology up gradation • 100% mechanization by 2017.
from existing mines (Longwall, Short wall8, CM, • Technology for deep Shaft Sinking
LHD, SDL) • High speed tunneling machine for faster In-
cline / Drift drivage.
2.3.1 Reasons for Poor Production & Productivity
• Introduction of state-of-the-art Safety Moni-
• Non-availability of machine
toring devices
• Poor utilization of machine
• Introduction of Man riding systems in mines.
• Lack of coal preparation
• Automation and use of IT and Robotics.
• Delay in supporting
• Capacity building through training and rede-
• Delay in machine tramming
ployment of manpower.
• Delay in tub supply or backup transport ser-
• Providing Strata / Storage Bunkers in line
vices (crusher, belts, bunkers etc.,)
with Trunk Belt Conveying system.
• Idle time due to shift change hours
• Avoiding re-handling of Coal,
• Lack of spares availability
• Maximum effective utilization of Machinery.
• Lack of on-hand trained crew
• Avoiding long lead distance from face to
• Lack of midlife overhaul of machinery
dumping point.
• Lack of maintenance of machinery
• Reducing idle time due to shift change hours
• Poor working environment
by implementing overlapping 4 shifts.
• Timely not positioning of supervisors
• Proper maintenance of machinery i.e., strict
• Poor placement of orders
scheduled maintenance should be followed.
• Unsatisfactory incentive schemes
• Making availability of coal at maximum
• Untrained mechanized district crew right
number No of working faces.
from supervisor to workmen.
• Timely availability of spares by follow-up

2.3.2 Means for Improvement in Production & with firms and placement of RC & depart-

Productivity mental contracts.

• Development of underground projects with • Introducing sufficient number of mechanized

Longwall/ Mass production technology on roof bolting machines with rated power pack/

risk/gain sharing basis air compressors.

• Application of Longwall/Shortwall technol- • Effective communication system

ogy in extraction of pillars • Selection of equipment to suit for geo mining

• Existing Bord & Pillar & Longwall to Con- conditions

tinue. • Interaction with equipment manufacturers for

• Intensify mechanized roof bolting up gradation and modification

6
• Modification/ alteration of statute to suit to • Adjusting general shift man power in pro-
the need of industry duction and retaining only in statutory re-
• Supply of spares for imported equipments quirement.
and indigenization of spares • Explore the workings at suitable gradient.
• Shift start/end incentive plan to motivate the • Avoiding water and slurry condition by
operators and workmen proper maintenance of drainage system
• Deployment of trained efficient supporting • Selection of educated and young persons as
crew, technicians and operating personnel. operation crew.
• Implementation of staggered shifts • Improving performance from the existing
• Positioning of supervisors in time. level.
• Improving good & comfortable environ- • Reconstructing the existing mines with a
mental conditions such are ventilation, sup- view to maximize the output by way of add-
porting, drainage and house keeping. ing the capital wherever possible.
• Keep availability of material for supporting, • Introducing new technology
ducting and spares. • Inculcating mechanisation culture
• Efficient back up services like pumping, • Providing matching equipment
work-shops, coal evacuation system, bunkers • Expediting Coal evacuation and transporta-
etc., tion
• Proper incentive schemes. • Providing more faces coal preparation
• Treating people with due regard. • Improved yield/drill
• Continued guidance • Planned preventive maintenance
• Introduction of high capacity and cable less • Under ground workshops
LHDs.(Diesel if feasible)
2.4 Clean Coal Technologies
• Good communication system at all levels.
India’s demand for electricity production far exceeds
• Intensive monitoring at all levels.
their supply capabilities and India has vast supplies
• Increasing length of cable by reducing di-
of coal reserves – 4th largest in the world. Current
ameter of cable or increasing drum diameter.
electricity consumption is approx 750 billion kWh
• Mechanization of face drilling.
with an estimated per annum increase of 8-10%.
• Introduction of multi job concept like ‘op-
Coal will continue to be used. Clean coal technology
erator Cum mechanic’, ‘coal cutter Cum sup-
provides immediate, lower cost coal beneficiation
port men’
solutions to allow Indian electricity producers to up-
• Introduction of equipment maintenance by
grade dirtier coals into more efficient, low sulphur,
OEM.
low ash feedstock. Beneficiation of low-rank coals
• Design of suitable training module.
improves useable reserve lifetime, addressing con-
• Out sourcing of non-core activities
cerns related to energy security3. Immediate eco-
nomic benefit helps to finance development of im-

7
proved clean coal technologies and other renewable
technologies. It usually addresses atmospheric prob-
lems resulting from burning coal and is an umbrella
term used to describe technologies being developed
to reduce the environmental impact of coal based
energy generation. It addresses Dual Crisis - Energy
crisis v Climate change crisis. Under the energy cri-
sis scenario, CO2 emissions will increase 55% by
1
2030 . The power generator industry will account
for the bulk of these emissions because of their
heavy reliance on coal.
The energy crisis demands that the cheapest and
most available energy resource is utilized – This is
coal. The climate change crisis demands that the
heaviest emitters of CO2 are reigned in – This also
is coal. Clean Coal Technologies are where these
16
two immoveable demands meet .
2.4.1 CBM/CMM/AMM Exploration & Exploita-
tion, R&D Projects.
• A UNDP/GEF/GOI funded demonstration
project under implementation for production
& utilisation of CBM.
• CIL entered into JV with ONGC for devel-
opment of CBM in 2 blocks.
• A perspective plan for harnessing
CMM/AMM from CIL 43 command area.
2.4.2 Underground Coal Gasification.
• ONGC & GAIL pursuing UCG in collabora-
tion with CIL.
• MOU signed between CIL & ONGC for a pi-
lot project in JV mode.
2.4.3 Coal Liquefaction
• 4 plants currently operational in USA and
South Africa for Coal Liquefaction
• 6 mt coals can produce 3.6 million barrel of
diesel at NEC & Naptha at a cost of Rs.1532
(USD 35) to Rs.1751 (USD 40) per barrel.
• CIL and Oil India limited to sign an MOU
for a 5000 barrels/ day.
• Availability of 3 million tonnes of coal being
explored.
• Meeting held with Govt. of Meghalaya and
Arunachal Pradesh for availability of coal.
3 CASE STUDIES FROM SCCL
The Singareni Collieries Company Limited is pio-
neered in coal mining in southern part of India and is
producing more than 10 % of Indian coal with about
7% of reserves. It is presently operating 36 UG
mines and 14 OC mines targeting around 53.14 MT
during the current year13. Production trend of SCCL
seems increased steeply from 33.24 Mt in 2002-03
ie, start of X plan to 51.33 Mt in the 4th year of XI
plan, ie, 2010-11. The overall growth rate of SCCL
in X Plan is 4.12 % and it has been increased to
8.02% in XI Plan period11.
Present scenario in SCCL are improving coal pro-
duction from Underground and Opencast mines,
Daylighting of loss-making underground mines,
mining at deeper horizons in existing Under &
opencast mines and non availability of opencastable
deposits leftover in SCCL leasehold area, and open-
ing up new Underground and Opencast Mines.
3.1 Enhancement of production and
productivity in OC Mines of SCCL
The major changes that have contributed for in-
creased production, productivity and profits are the
increased share of OC Mines. The underground cost
of production has increased beyond tolerance limits
during financial 2010-11 which is ` 2537 per tonne
8
where as the sales realization at the Company level • Opening up New projects (tentative) within
is `1646 per tonne. next two plan periods (Table 2).
Most of the underground mines have been losing
Capacity Life
Name of Mine
heavily and opencast mines have been wiped down (MTPA) (Yrs)
such losses. During 2010-11, the underground SRAVANAPALLI-OC-I 3.00 17
SRAVANAPALLI-OC-II 3.00 31
mines of SCCL have produced 11.6 MT of Coal
Abbapur OC 0.60 18
employing 82% of Manpower and total losses from DORLI-OC-II 0.70 13
Peddapur OC Ph-1 2.00 12
these mines amounted to ` 730.65 Crores. Whereas,
KTK OC-II 3.00 38
Opencast mines, producing 39.7 MT, have made the JVROC-2 4.00 52
profit of ` 1727.41 Crores. Thus, the net profit after Kistaram OC 2.00 14
KOYAGUDEM OC-II Extn 2.00 31
deducting taxes and other expenses during the same
Table 2: Production enhancement from new mines11
year is ` 351 Crores. During the last four years, un-
• Enhancement of production from working
derground mines contributed around 23% of produc-
mines by increasing number and capacity of
tion and losses incurred per annum is around ` 700
HEMM(Table 3).
Crores11. From these, the share of underground
mines would continue to be in the range of 20-25% Capacity Enhancement
(MTPA)
of total production in the years ahead.
Life
• Introduction of Highwall mining at RG OC- Name of Mine From To (Yrs)
II, Medipalli OC and Koyagudem OC-II of Medipalli OC 1.25 3.00 16
GK OC 2.00 3.00 30
SCCL
JVROC-
• Introduction of High Capacity Shovels (12- Expansion 2.50 4.00 8
Table 3: Production enhancement from working mines11
15 Cum) in most of the mines.
• Introduction of Surface Miner at Koyagudem 3.2 Enhancement of production and
productivity in UG Mines of SCCL
OC-II for selective mining of Thin Seams.
All the existing UG mines of SCCL are getting
• Phase-wise day lighting (tentative) of loss deeper day by day and all the opencast mines are
making UG mines up to 400 m depth for next operating at higher strip ratios, nearly 4 times the na-
two plan periods (Table 1). tional average strip ratios of OC mines. Develop-
Capacity Life
Daylighting ment of coal is almost exhausted upto 300m depth6.
(MTPA) (Yrs)
RKP-OC ph-1(MK-4,4A,RK-4) 2.5 12 Hence it is imperative to get bulk output from deep
KK OC (KK-2&2A,SMG-
1.75 20 underground mines. Bulk production is possible by
1,1A&3)
IK OC(IK I Inc) 1.20 16 opening new coal blocks with sophisticated and in-
RKP OC Phase-II (RK-1,2,3 Inc) 2.00 13 tensified mechanisation to work beyond 300m and
RG OCP-III PH-II(GDK-8&8A) 2.00 26
KTK OC-Sector 2 (KTK 2&2A) 1.25 12
managing existing coal resources in underground
GDK 11 OC 2.00 99 mines.
MNG OC(PK 2) 1.50 20 Against the national average of 15% production
MNG OC Extn (PK-1) 1.50 54
from underground coal mines, SCCL is producing
JK-5 OC(JK-5) 2.00 14
Table 1: Day-lighting of loss-making UG mines11 about 22% from its UG coal mines surpassing the

9
Australian average of 20% coal production from UG der erection for speed transport of workmen avoid-
mines11. ing arduous walking11.
Further more, Most of the opencastable coal blocks At KTK 2 Incline of Bhupalpalli area of SCCL,
have been opened up or projectised and about 61% the production is enhanced from 4.22 LT in 2010-11
of the reserves in left over coal blocks are in the to 8.64 LT for 2011-12 by replacing Hand Section
depth range of 300m to 600m and beyond. with SDLs11.
In this backdrop, to sustain in the complex business Similarly, the production will be enhanced in the
scenario, SCCL is aiming at introduction of bulk mines of SCCL (Table 4) with little investment,
production technologies in some of the suitable UG technology up-gradation and some modification in
coal mines. UG bulk production is the only key for the ventilation, haulage, and pumping circuits in
sustainability of SCCL in the prevailing conditions. phased manner.
Proper attention and overall approach is required for Target in LT
loss making mines to aim to reduce material con- AREA MINE 2011-12 2014-15
sumption, concentration of working places, optimi- BHP KTK1 4.70 9.30
zation of ventilation, pumping and other infrastruc- BHP KTK5 4.30 9.26
ture besides making sustained efforts to enhance BPA Goleti 1&1A 3.24 5.40
productivity and adoption of alternative technolo- SRP SRP3&3A 3.80 8.82
gies. SRP IK-1A 2.58 6.48
The GDK 2& 2A Incline is a working mine of RG-I SRP RKNT 5.34 7.20
Area of SCCL with 6 SDLs and 6 Hand Section MM SK 1.95 8.82
drills with a target of 5.94 LT during 2010-11. The RG-1 GDK 1&3 3.60 5.30
mine is divided into two independent GDK 2 and RG-1 GDK5 6.00 8.00
GDK 2A sections. This mine consists of 5 workable
RG-1 GDK11 9.50 11.50
seams viz; No.1, 2, 3A, 3 and 4 seams with a maxi-
ALP Adriyala LW 4.32 28.00
mum depth of 420m.
MNG Kondapuram 2.70 7.50
It is proposed to increase 10 more SDLs with com- Table 4: List of mines projected with enhanced production11
plete semi-mechanization by phasing out hand sec- The SCCL is planning to open new CM and LW
tion with a target of 8.64 LT for 2013-14. As a part mines in near future and planning to switch over
of this 5 Hand Section Drills are replaced with 5 from existing semi-mechanized technologies like
SDLs with a target of 6.37 LT for 2011-12. After SDL and LHD to bulk production technologies to
complete replacement of haulage by belt conveyors, enhance the production, productivity and also to re-
the production will be enhanced to 8.64 LT with 16 duce the cost of production (Table 5).
SDLS. The working of panel over stowed panel in Capacity Life
No. 3 Thick Seam is being experimented at this Name of Mine Tech
(MTPA) (Yrs)
panel. The mine is already equipped with two man- KK-6 Inc CM 1.20 21
riding systems. One more man-riding system is un- KK-7 Inc LW 1.50 27

10
 RKNT SB CM 1.50 16 straints. In this regard, due to increased depth & in-
Sravanapalli SB LW 2.00 29 creased volumes, In-pit crushing & conveying
RKP SB-I UG LW 2.00 16 technology needs to be adopted in the years to come,
RKP SB-II LW 2.00 17 apart from introduction of higher capacity equip-
Jallaram LW LW 1.70 36 ment, particular to reduce the fleet of equipment.
KTK 3 inc LW 1.50 12 There must be amalgamation of small adjacent
Laxmidevipet LW LW 1.50 22 mines/blocks to have bigger mines to optimize the

Mallayyapalli LW 3.00 32 operational efficiency and benefits of economy sake

Rampur Shaft Project CM 1.00 32 further.

Koyagudem 2 Inc CM 1.00 16 The Different business models like Mine Developer
Table 5: List of mines projected with CM and LW technolo- ‘Cum’ Operator (MDO), Technology Provider
gies11. ‘Cum’ Operator (TPO), Risk/Gain sharing, Public
Private Partnership (PPP), Build, Own, Operate and

4 CONCLUSIONS AND RECOMENDATIONS
India is the third largest coal producer in the
world and is producing nearly 88% of coal from
opencast mining presently. Opencast mining has its
own limitations due to depth, land acquisition, R&R,
and environment pollution etc. Exploitation of coal
is almost exhausted upto 300m depth. The increased
cost of production from UG mines indicates need of
opening up new opencast mines to augment the sus-
tainable production. This needs operating OC mines
at greater depths with higher stripping ratio (around
1 in 12).
Transfer (BOOT) can be worked out with foreign
participants. Besides that, coal washeries will be in-
troduced in a large scale to improve the quality.
Hence, the indian coal mining industry must plan to
introduce most promising Longwall Technology in
viable UG projects, high capacity HEMM in open-
cast projects and wherever feasible, daylighting of
UG mines, enhancing production from working
mines, to meet the demand and cut down the im-
ports.
ACKNOWLEDGEMENTS
The authors are obliged to SCCL management for

For a healthy, economic and balanced growth of coal their permission to present this paper.

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