1. Mechanization Trends in Underground Mines of CIL & Future Strategies Asoke Kr Paul CMD, BCCL 28 th Jan, 2008

2. Index Sl No.ParticularsSlide No 1.Indian economy-Present scenario4 - 7 2.Demand vis-à-vis Availability of Coal9-11 3.Status of coal mining in India13-17 4.Coal reserve & characteristics19 – 22 5.Recent trends of UG mechanization24 - 29 6.CIL- Production Programme (UG)31 - 33 7.Technological options & Future Strategies 35 - 43

3. Indian Economy & Present Scenario

4. 4 Indian Economy - Present Scenario Indian economy- GDP growth of +8%, poised to achieve 9% or more One of the fastest growing economies of the world Per capita consumption of energy continues to be lower (0.325 mtoe) against World average (1.553 mtoe). Projected per capita consumption in India is 0.450 mtoe by 2010. Projected demand of coal in India would rise to 1079 Mill T by 2021-22, 1267 Mill T by 2025 from the current level of 430 Mill T (considering 8% GDP growth). Contd…

5. 5 Coal provides 24% of global primary energy need, whereas in India, it has a share of 54%. Coal generates 40% of world’s electricity, whereas in India, it has a share of 65%. With population of over one billion, India constitutes 15% of world population, whereas India’s share of global energy consumption is only 3%. Contd…

6. 6 Electricity generation WorldIndia Coal 40.1%65.7% Natural Gas19.4%9.8% Hydro15.9%16.4% Nuclear15.8%2.8% Oil6.9%0.4% Other1.9%4.9% (Incl. 3.3% of Lignite) Total100 %100% Contd…

7. Generated 662.5 billion units of power in 06-07, of which 431.1 billion units i.e 65% was coal based generation Our electricity generation capacity stands at 1,28,000 MW (06-07), planned to grow to 2,33,000 MW by 2012 Most of this increase is projected from coal based generation only. Steel majors to generate 30-32 Mill Te (additional) by 2011-12 from the present level of approx 40 Mill Te. COAL WILL REMAIN THE MAINSTAY OF POWER GENERATION FOR NEXT 50 YEARS.

8. Demand vis-à-vis Availability of Coal

9. DEMAND OF COAL (with 8% GDP) YEARAS PER INTEGRATED ENERGY POLICY AS PER COAL VISION 2025 2006-07502473 2011-12691629 2016-17915828 2021-2212701079 2026-2717231267 2031-322343 Fig in Mill T

10. PRODUCTION PLAN YEARAS PER INTEGRATED ENERGY POLICY AS PER COAL VISION 2025 CIL’s Plan 2006-07439429373 2011-12536621536 2016-17634773653 2021-22829927755 2026-2710731061839 (2025-26) 2031-321517- Fig in Mill T

11. OUT OF THE PROJECTED DEMAND OF AROUND 1.1 Bill T BY 2022, THE OPENCAST POTENTIAL HAS BEEN ESTIMATED AS 900 Mill T. THE BALANCE MUST COME FROM UNDERGROUND MINES. THEREFORE, FOCUS NEED TO BE GIVEN ON UG MECHANIZATION WHICH WOULD HELP IN –Containing Cost of production –Conservation, by way of better extraction of deeper seams –Improving safety standards

12. PRESENT STATUS OF COAL MINING

13. Status of Coal Mining in India Produced about 431 Mill T of coal in 06-07 Consumed about 464 Mill T Imported approx 22 Mill T of coking & 23 Mill T of non-coking coal. Import constitutes roughly 10% of total consumption Small quantity of 2.0 Mill T exported Share of production : CIL - 83.7%; SCCL – 8.8%; Others – 7.5%. Captive coal blocks to contribute approx 24 Mill T in 07-08 against 17.5 Mill T produced in 06-07.

14. Coal Production Scenario in India Coal mining started in 1774 1947-30 Mill T 1977-78-100 MT 1989-90-200 MT 1999-2K-300 MT 2006-07-431 MT CIL Production (Mill T) OCUG Total 1974-7520.7758.2278.99 (26.3%)(73.7%) 2005-06297.5545.82343.37 (86.7%)(13.3%) Production Projection in 2025715 124 839

15. Status of Coal Mining in India - Production trend/Projection COMPANY ACTUALPROJECTION IX PLAN (01-02) X PLAN (06-07) BE 07-08 XI PLAN (11-12) XII PLAN (16-17) CIL279.65360.91384.51520.50664.00 S.C.C.LTD30.8137.7138.0440.8045.00 OTHERS17.3332.2137.95119.70346.00 TOTAL327.79430.83460.50680.001055.00 CAGR (%)2.535.62-9.579.18 GROWTH X OVER IX PLAN-XI OVER X PLAN 29%44% (HIGHEST SO FAR) Fig in Mill T

16. PLANWISE PRODUCTION AND GROWTH

17. UG/OC PRODUCTION TREND/ PROJECTION (CIL) PRODUCTIONACTUAL PROGRAMME 01-02 (IX PLAN) 06-07 (X PLAN) 10-11 (XI PLAN) 16-17 (XII PLAN) UG49.2243.3254.6657.58 OC230.43317.59465.94606.42 TOTAL279.65360.91520.50664.00 Fig in Mill T 88% of CIL’s production is from OC mines and 12% from UG against world average of 34 % and 66 % respectively UG mining receiving less attention due to necessity to have bulk production in fastest possible period.

18. COAL RESERVE

19. Status of Coal Reserve It is prudent to assess and evaluate our resource in view of huge requirement Blessed with a proven reserve of 99 Bill T Roughly 50% of the country remains unexplored Necessary detailed exploration for up gradation of resource from inferred to indicated to proven is not matching Considering the extractable part of the proven reserve, R/P ratio stand at 100 years.

20. Depth (M)ProvedIndicatedInferredTotal% 0-30076.765.614.3156.660.8 300-6007.042.618.067.626.3 0-600 (Jharia)13.70.5-14.25.5 600-12001.711.55.819.07.4 Total99.1120.238.1257.4100 %38.546.714.8100- Fig. in Bill T GEOLOGICAL RESOURCES OF INDIAN COAL (AS ON 01.01.2007)

21. COAL RESERVES IN INDIA (AS ON 01.01.2007) ** TYPE OF COALPROVEDINDICATEDINFERREDTOTAL COKING16.9513.302.1032.35 NON-COKING81.64106.7735.67224.08 TOTAL99.06120.1838.14257.38 WORLD COAL RESERVE* 909 (Fig in Bill T) * BP Statistics Review of World Energy 2005; ** GSI

22. Characteristics of Indian Coal deposits Limited reserves of Coking coal (32 Bill T) High ash and low calorific values ( 40% & above; Avg 4000 Kcal/Kg – UHV) Mismatch in location of deposits and major consumption centres High cost of transport

23. Recent Trends of UG Mechanization

24. Analysis of UG mechanization in CIL 305 UG mines in CIL contributing 43 Mill T  96 mines (31%) are already mechanized  131 mines (43%) have exclusively manual workings  Rest 78 mines constituting 26% employ both manual & mechanized workings  Out of the total 209 (131+78) mines, 110 mines have been found as feasible for mechanization

25. Equipment fleet in UG Mines of CIL Equipment M/C on roll as onAnnual Prodn (LT) Mar’07Mar’06Mar’07Mar’06 SDL816829202.18209.90 LHD24421799.8888.84 R/Header10131.571.89 PSLW785.398.93 Conv/Mech110.320.70 Cont. Miner216.197.09 Tot Mech315.52317.35

26. SDL/LHD Productivity in Mines of CIL Company SDL ProductivityLHD Productivity 06-0705-0606-0705-06 ECL647710147 BCCL49393741 CCL66787984 WCL8988150142 SECL9799176180 MCL6269139165 CIL8284142136

27. TECHNOLOGY-WISE COAL PRODUCTION TREND FROM UG MINES - CIL 98-9999-0000-0101-0202-0303-0404-0505-0606-07 Int. Tech SDL/LHD 20.2821.5322.2124.1226.0827.1428.9929.8830.10 Cont. Miner----0.390.660.550.710.62 Longwall2.042.203.132.522.102.151.501.000.56 Others0.370.320.230.170.15 0.350.300.29 Sub Tot Mech 22.6924.0525.5726.8128.7230.1031.3931.8931.57 Manual30.6228.2724.9822.4119.717.3415.6513.9311.75 Total53.3152.3250.5549.2248.4247.4447.0445.8243.32 Fig in Mill T

28. Global L/W Mining Performances CountryNo. of faces Best Prodn (mtpa) Avg Prodn (mtpa) USA497.24.3 CHINA6008.90.8 AUSTRALIA245.72.8 RUSSIA1204.10.5 INDIA50.50.1

29. Global Room & Pillar Performances CountryBest Prodn (Lac ton/month) Avg Prodn (Lac ton/month) USA1.100.70 CHINA2.000.30 AUSTRALIA0.600.40 RUSSIA0.350.20 INDIA0.500.40

30. CIL - Production Programme during XI & XII Plan

31. CIL Production Program – UG XI & XII Plan CompanyActual 06-07 Proj. XI Plan 11-12 Proj. XII Plan 16-17 ECL8.2713.1613.14 BCCL4.905.286.25 CCL1.962.40 WCL9.9110.6210.79 SECL16.2019.7021.00 MCL1.973.003.60 NEC0.110.40 CIL43.3254.5657.58 Fig in Mill T MOC has further enhanced the UG target to 75 Mill T by 11-12

32. Technology-wise Coal Production in CIL XI Plan (UG) TechnologyActual 06-07 Projection 07-08 Proj. XI Plan 11-12 Conv. B&P Conv. LW Mech B&P (SDL/LHD) Mech. LW Continuous Miner Special Methods 11.77 0.03 30.20 0.54 0.62 0.16 10.16 0.14 34.01 0.90 1.22 0.55 7.21 0.06 38.29 3.07 4.18 1.75 CIL43.3246.9854.56 Fig in Mill T

33. Future Scenario Insignificant increase from ECL/BCCL/CCL Quantum increase in UG production is expected from SECL/WCL/MCL Gradual phasing out manual loading through introduction of mechanized loading Potential technology shift from manual to SDL/LHD, Continuous Miner & Special Innovative methods.

34. Technological Options & Future Strategies

35. Different methods tried so far –B&P system of development with scraper, SDL, LHD –B&P with partial extraction, Splitting and stooking, wide- stall mining, partial extraction with hydraulic stowing –Thick seam mining employing different methods like Multislice mining (Inclined/horizontal slicing ) –Longwall mining in a single pass –Longwall with Integral caving/ Longwall Sub-level caving –Blasting Gallery method –Hydro-mining –Use of Continuous Miner

36.  Presence of large number of low capacity outlets  These mines are uneconomical and labour intensive  Working seams overlain by old fire/water-logged goaves – restricts Depillaring  Predominance of Development method  Old mines have spread over extensive area.  Distance of working district causes loss of productive hours. MAJOR CONSTRAINTS TO IMPROVE UG PRODUCTION Contd…

37.  Locating new shaft/Incline on surface difficult due to non- availability of land.  Sinking/deepening of shaft for working of lower seams – capital intensive and hampers production.  Non-availability of free surface areas for uninterrupted caving  Reduction in number of Underground mines due to safety Issues and exhaustion of reserves (From 357 in 1996-97 to 298 in 2005-06) Contd…

38.  Long Gestation Period for opening new UG mine compared to Opencast  Limited success of PSLW technology in India  Un-viable economics of production  Difficulty in procurement of sand for stowing in many cases leads to development only (i.e. only 25-30% extraction)

39. STRATEGIES FOR INCREASING PRODUCTION FROM UNDERGROUND MINES FROM PRESENT LEVEL OF 43 MT (06-07) TO 124 MT (2025-26)  Development of underground projects with Longwall/Mass production technology on risk/gain sharing basis with production of 2–10 Mill T per annum  Application of Continuous Miner in extraction of pillars & in virgin areas.  Existing Bord & Pillar with SDL/LHD to Continue  Intensify mechanized Roof Bolting  100% mechanization by 2017

40.  Technology for deep Shaft Sinking  High speed tunneling machine for faster Incline/Drift drivage.  Introduction of state-of-the-art Safety Monitoring devices  Introduction of Man Riding systems in mines.  Wireless multi-media communication for ug mines.  Automation and use of IT  Capacity building through training and redeployment of manpower.

41. R & D NEEDS FOR FUTURE Trials of suitable mining methods for steep and thick seams. Hard roof management for UG mines by establishing technologies like hydro-fracturing or safe blasting with explosives or non-explosive materials. Trials of stowing with materials other than sand Detection and mapping of old and unapproachable workings. Application of robots for mapping of unapproachable UG workings and for detection of trapped miners in the event of disasters.

42. Site selection for installation of Highwall miner

43. Highwall Miner in operation

44. Thank You