PR for Pure Benidih UG Mine

CHAPTER – II

MARKETABILITY & JUSTIFICATION

2.1 Demand & Availability-
As per the latest appraisal, the demand of coal in BCCL will be 37.13 Mt in 2020-21
and it will increase to 51.44 Mt in 2023-24. The availability of coal from operational
mines, Future/New projects & Non-operational Mines (To be made operational) of
BCCL will be 37.130 Mt in 2020-21 and the same will increase to & 51.000 Mt in
2023-24.

The pattern of Demand and Availability is as below:

Overall Deamnd And Supply Pattern of BCCL
(Figs. in Mt.)
Sl. No. Particulars 2020-21 2021-22 2022-23 2023-24
A. Demand 37.13 43.17 50.66 51.44
B. Availability :
- Operational Mines 35.32 36.79 40.15 43.90
- Future/New Projects 0.0 0.0 0.0 0.50
- Non-operational Mines 1.81 3.21 4.85 6.60
(To be made operational)
Total ‘B’ 37.13 40.00 45.00 51.00
C. GAP (Surplus / Deficit) 0.0 3.17 5.66 0.44

It is evident from the above table that there is a gap between demand & availability of
coal from 2020-21. The gap is expected to increase upto 5.66 Mt. in 2022-23. The
annual target production (0.81 Mt) from this mine is expected to be achieved in 3rd
year from zero date as per proposed mine schedule.

The total extractable reserves estimated for the mine, the weighted average
geological grade of coal is estimated as G-10 for Seam-III & G-5 for Seam-I/II
combined & Seam-I .

As per grade notification of BCCL Mines for the year 2020-21, the coal produced
from Pure Benidih UG Mine (earlier known as Phularitand UG mine) is declared as
Washery grade-IV (coking coal) and it is highly sought commodity in steel industry.
Therefore, formulation of this project is justified to meet the demand of coking coal by
indigenous steel sector on long term basis and reduce import burden of the nation on
this account.

Job No.-200120012 Chapter – II P-1

 PR for Pure Benidih UG Mine

2.2 Linkage-
At present, the coal produced from the mine is not linked to any existing washeries.
The proposed production from the mine is proposed to be sent to the existing KKC
Link Railway Siding, located on Mohuda-Gomo Railway Line passing at a distance of
350m to 400m on western side of existing Inclines site. Presently, produced coal
from this mine is being sent to this siding. It has been proposed that the
transportation of coal from mine incline site to KKC Railway siding will be done
contractually through tipping trucks. In future, belt conveyors may be used from
environmental point of view. The ROM coal from mine will be sent to existing linked
Consumers or new Consumers from this Railway Siding.

Job No.-200120012 Chapter – II P-2