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PRE-QUALIFICATION DOCUMENT (PQD)
INSTRUCTION TO PROSPECTIVE BIDDERS
FOR PROVISION OF CONSULTANCY SERVICES FOR THE PROJECT
TITLED
“UNDERGROUND COAL MINE SURVEY, PUNJAB, PAKISTAN”
MINES AND MINERALS DEPARTMENT
DIRECTOR MINES & MINERALS/PROJECT DIRECTOR DIRECTORATE GENERAL OF MINES & MINERALS PUNJAB POONCH HOUSE, MULTAN ROAD, LAHORE, PUNJAB, PAKISTAN PH: +92-042-99212724, +92-042-99212740 FAX: +92-042-99212726, +92-042-99213657
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Disclaimer
This Prequalification Document ("PQD") has been prepared by Directorate General of Mines & Minerals, Punjab ("DG" or the "Client") and it constitutes no commitment on the part of DG to enter into any arrangements with any person / entity. DG reserves the right to withdraw from or cancel the process or any part thereof or to vary any of its terms at any time without giving any reason whatsoever. No financial or other obligation whatsoever shall accrue to DG in such an event. The information contained in this PQD or subsequently provided to Applicants, whether verbally or in documentary or any other form by or on behalf of DG or any of its employees or advisors, is provided to them on the terms and conditions set out in this PQD and such other terms and conditions subject to which such information is provided. This PQD does not constitute an agreement; its sole purpose is to provide interested parties with information that may be useful to them in submitting their Expressions of Interest ("EOIs") pursuant to issuance of this PQD. Any document and information submitted in response to this PQD becomes the property of DG and DG does not accept any responsibility for maintaining the confidentiality of the material including any trade secrets or proprietary data submitted to DG. DG shall not be responsible for non-receipt of correspondence sent by post / courier / email / fax. No decision should be based solely on the basis of the information provided in this PQD. DG has no liability for any statements, opinions or information provided in this PQD. In submitting an EOI in response to this PQD, each Applicant certifies that it understands, accepts and agrees to the disclaimers set forth above. Nothing contained in any other provision of this PQD nor any statements made orally or in writing by any person or party shall have the effect of negating or suspending any of the disclaimers set forth in this disclaimer.
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TABLE OF CONTENTS
DEFINITIONS AND INTERPRETATIONS ...... 5
SUBMISSION LETTER ...... 7
SECTION - A: INFORMATION TO APPLICANTS ...... 9
SECTION - B: TERMS OF REFERENCE ...... 24
SECTION - C: INSTRUCTIONS TO APPLICANTS ...... 27
SECTION - D: SUBMISSION AND EVALUATION OF EOIs ...... 30
SECTION - E: FORMATS ...... 40
SECTION - F: ANNEXURE ...... 45
ANNEXURE – 1 POWER OF ATTORNEY FROM APPLICANT IN FAVOUR OF ITS AUTHORIZED SIGNATORY ...... 46 ANNEXURE – 2 POWER OF ATTORNEY BY APPLICANT MEMBERS IN FAVOUR OF LEAD APPLICANT MEMBER...... 47 ANNEXURE – 3 AFFIDAVIT ...... 48 ANNEXURE – 4 TYPE OF EXISTING SURVEYED DATA OF OPERATIVE COAL MINES COLLECTED BY THE DIRECTORATE GENERAL OF MINES & MINERALS, PUNJAB (DG)...... 49 ANNEXURE – 5 REPORT BASED ON GEOLOGICAL AUTHENTICATION BY SNOWDEN50
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DEFINITIONS AND INTERPRETATIONS
In this PQD, unless the context otherwise requires, the following terms shall have the meanings set forth below:
"Applicant" means a Firm or a Consortium participating in the Prequalification Process for provision of Consultancy Services for the Project. The term Applicant has been interchangeably used with the term "Firm / Consortium" in this PQD.
"Consortium" means a group of entities submitting a joint EOI for participating in the Prequalification Process for the provision of Consultancy Services for the Project.
“Client” or "DG" means Directorate General of Mines & Minerals, Government of the Punjab.
"EOI" means an Expression of Interest submitted by an Applicant, in accordance with the guidelines provided in the PQD, for participating in the Prequalification Process for the provision of Consultancy Services for the Project.
"EOI Submission Date" is defined in paragraph 1.3 of Section - D of this PQD.
"Firm" means an entity participating in the Prequalification Process for the provision of Consultancy Services for the Project.
"Project" means the “Underground Coal Mine Survey, Punjab, Pakistan”.
"Consultancy Services" means services to be offered in accordance with Section B: Terms of Reference of this PQD including any revisions in such Terms of Reference as are included in the Agreement to be signed between the Consultancy Firm and the Client.
In this PQD, unless the context otherwise requires: (a) any reference to a statutory provision shall include such provision as is from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of applying to any transactions entered into hereunder; (b) the words importing singular shall include plural and vice versa, and words denoting natural persons shall include partnerships, firms, companies, corporations, joint ventures, trusts, associations, organizations or other entities (whether or not having a separate legal entity); (c) the headings are for convenience of reference only and shall not be used in, and shall not affect, the construction or interpretation of this PQD; (d) the words "include" and "including" are to be construed without limitation; (e) any reference to any period of time shall mean a reference to that according to Pakistan Standard Time; (f) any reference to day shall mean a reference to a calendar day; (g) any reference to month shall mean a reference to a calendar month;
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(h) any reference to GoPb shall mean Government of the Punjab; (i) the Annexure to this PQD or any Addenda issued later on to clarify matters, if any, form an integral part of this PQD and will be in full force and effect as though they were expressly set out in the body of this PQD; (j) unless otherwise stated, any reference to any period commencing "from" a specified day or date and "till" or "until" a specified day or date shall include both such days or dates; (k) any reference to "Prequalification Process" shall mean the entire process commencing from the invitation of EOIs until prequalification of Applicants; (l) any reference to "Bidding Process" shall mean the entire process for selection of Consultancy Firm commencing from issuance of Request for Proposals (RFP) to prequalified Applicants until signing of Agreement for Consultancy Services for the Project; (m) any reference to "Consultancy Firm" shall mean the selected Applicant with whom Agreement for Consultancy Services for the Project will be signed. (n) Net Worth means the value of total assets less total liabilities of the entity concerned at the end of a financial year (o) Gross Annual Revenues/Turnover/Sales means the value of gross revenues/turnover/sales of the firm/consortium concerned for a given financial year as mentioned in its financial statement for that year.
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SUBMISSION LETTER
(This letter shall be submitted by the Applicant or lead member, in case of a Consortium, on its letter head) Date: Month, Day, Year
Director General, Directorate General of Mines & Minerals, Punjab Poonch House, Multan Road, Lahore, Punjab, Pakistan.
Dear Sir,
SUBJECT: PREQUALIFICATION OF APPLICANT FOR THE PROVISION OF CONSULTANCY SERVICES FOR THE PROJECT “UNDERGROUND COAL MINE SURVEY, PUNJAB, PAKISTAN” The undersigned, being duly authorized to represent and act on behalf of (Applicant), applying to be prequalified for provision of Consultancy Services for the Project cited above, is pleased to enclose one (1) original (together with two copies) of our EOI in accordance with the terms set forth in the PQD and declare the following: a. We have examined and have no reservations to the PQD issued; b. We agree to comply with all the tender rules, laws and regulations governing the tender as issued by Client from time to time; c. We accept the exclusive application of the federal laws of Pakistan and provincial laws of Punjab with respect to procedures laid down in the PQD; d. We accept the right of the Client to (i) request additional information reasonably required to assess the EOI, (ii) amend the procedures and rules or make clarifications thereof, and (iii) extend or amend the schedule of the Prequalification Process and the Bidding Process; e. We understand that you may cancel the Prequalification Process at any time and that you are not bound either to accept any Application that you may receive or to invite the prequalified Applicants for the subject Project; f. Prequalified Applicants will be subjected to verification of all information submitted for prequalification at any time during the Prequalification Process; g. [Name of Applicant or lead member, in case of a Consortium] hereby represents and warrants that as of the date of this letter: All the information submitted is accurate in all respects;
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(Applicant members individually and as Consortium) has(ve) not been subject to any voluntary or involuntary bankruptcy or insolvency or similar proceeding during the last five (5) years; and (Applicant members individually and as Consortium), has(ve) paid all taxes due, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been established. Capitalized terms used which have not been defined herein shall bear the meaning ascribed to them in the PQD.
DG and its authorized representatives may contact the following person(s) for further information, if needed:
Name: Phone # Cell # Email:
The undersigned declares that the information provided and the statements made in this EOI are complete, true and correct in every detail.
Signature of Authorized Signatory: ______Name and Title of Signatory: ______Name of Firm/Consortium: ______Address: ______
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SECTION - A: INFORMATION TO APPLICANTS
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1. PROJECT DEVELOPMENT PROCESS AT A GLANCE
The sequence of activities to be performed during the Prequalification Process and Bidding Process is provided below for comprehension of the way forward leading to award of contract for Consultancy Services for the Project: Prequalification Process (i). Invitation of EOIs including issuance of Prequalification Document (PQD); (ii). Pre-Submission meeting with Prospective Applicants (iii). Submission of EOIs; (iv). Opening and Evaluation of EOIs; (v). Prequalification of Applicants; Bidding Process (i). Issuance of Request for Proposal (RFP) to the Prequalified Applicants. (ii). Pre-bid Meeting; (iii). Submission of Proposals including Bid Bond; (iv). Opening and Evaluation of Technical Proposals; (v). Opening of Financial Proposals (of the Firms/Consortia with technically responsive proposals); (vi). Notice of Award to successful bidder through Issuance of Letter of Acceptance; (vii). Signing of Agreement for Consultancy Services for the Project; (viii). Placement of Performance Security and Release of Bid Bond; (ix). Commencement of Work; and (x). Project Completion.
2. PROPOSED SCHEDULE
DG shall endeavor to adhere to the following schedule during the Prequalification Process:
Event Description Date
Prequalification Process
Issuance of Prequalification Document (PQD) July 23, 2015
Pre-submission meeting with Prospective Applicants August 11, 2015 (Venue: Clients office at 11 AM-PST)
Submission of EOIs August 31, 2015
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Evaluation of EOIs September 10, 2015
Prequalification of Applicants September 11, 2015
Bidding Process
Issuance of Request for Proposal (RFP) to the September 14, 2015 Prequalified Applicants
Pre-bid Meeting September 30, 2015
Submission of Proposals including Bid Bond October 19, 2015
Opening of Technical Proposals October 19, 2015
Evaluation of Technical Proposals October 30, 2015
Opening of Financial Proposals November 02, 2015
Notice of Award through Issuance of Letter of November 05, 2015 Acceptance
Signing of Agreement for Consultancy Services for November 16, 2015 the Project
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3. INTRODUCTION AND BACKGROUND OF THE PROJECT
PURPOSE The purpose of this Prequalification Document (PQD) is to invite Expressions of Interest (EOIs) from the prospective Applicants for their prequalification. The pre- qualified applicants will be invited to participate in the Bidding Process for award of contract for Consultancy Services for the Project. Information regarding the Project is set forth below: BRIEF INTRODUCTION 3.1 Pakistan Economy Overview1 Pakistan is improving quantitatively and qualitatively as the current growth rate of 4.24 % is the highest since 2008-09. Fiscal year 2014-15 registered some remarkable achievements. Inflation hit the lowest level at 2.1 % on YoY in April since 2003-04. The policy rate decelerated at 7 percent which was lowest in last 42 years, capital market created history, grading by international rating agencies improved, historical agreement with Chinese Government on China Pakistan Economic Corridor (CPEC) for an investment portfolio of USD 45 billion, successful reviews with IMF, issuance of Ijara Sukuk Bond after a period of 9 year, decline in unemployment rate from 6.2 to 6.0 percent etc. are few economic highlights of Pakistan. 3.1.1 Growth and Investment1 Supported by a favorable slump in international oil prices, and stellar implementation of the IMF reform program; growth recovery remains underway, with projected GDP growth now at 4.3-4.6 percent. Preliminary data for the first semester of FY 2015 show growth picking up, driven mainly by agriculture and services. Growth of large-scale manufacturing (LSM) was positive arising from strong performance of pharmaceuticals (6%), electronics (8%), automobiles (17%), iron and steel (36%). The LSM will also benefit from the backward and forward linkages of huge infrastructure projects under CPEC and increasing demand for housing triggering sharp demand for iron, cement and related construction industries. China and Pakistan have made agreements to establish China Pakistan Economic Corridor between the two countries. The game changer agreements have been signed between Pakistan and China worth US$45 billion. The corridor will serve as a driver for connectivity, trade in the world is expected to increase and Pakistan will take benefits through multiple dimensions. Pak- China Economic Corridor will lead to greater investment and rapid industrialization in Pakistan. This is a great initiative which will open new avenues for prosperity and co-operation in the whole region and certainly it will uplift socio-economic condition of Pakistan on fast track with multiple dimensions. Present government has launched comprehensive plan to create investment friendly environment and to attract foreign investors in the country. As is evident, the capital market has reached new height and sending positive signals for restoring the investor’s confidence.
1 Pakistan Economic Survey 2014-15
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Pakistan's policy trends have been consistent, with liberalization, de-regulation, privatization, and facilitation being its foremost cornerstones. Board of Investment (BOI) under the Prime Minister’s office and Punjab Board of Investment & Trade (PBIT) in Province have stable investment policies to provide more investment friendly environment to investors. Foreign private investment has reached to $1666.2 million during July-April 2015 as compared to $1050.3 million showing 58.6% increase as compared to last year. 3.1.2 Mining and Quarrying Sector1: Pakistan is bestowed with all kinds of resources including minerals. It has abundance of economically exploitable resources of metallic and non-metallic minerals including Iron, Copper, and Cobalt etc. Other key minerals include coal, rock salt, limestone and onyx marble, china clay, dolomite, fire clay, gypsum, silica sand and granite, as well as precious and semi- precious stones. This sub-sector contains 14.4 % share of the industrial sector and contributes 2.9% in GDP of the country. Mining and quarrying has recorded a growth of 3.8% against the last year growth of 1.6%. 3.2 Mineral Potential in Punjab Punjab is the largest province of Pakistan with 53% contribution in national GDP whereas Punjab’s Gross Regional Product is approximately USD 132.95 billion (PKR 13,532 billion). Government of the Punjab, under the visionary and dynamic leadership of Chief Minister Punjab is fully committed to develop its metallic and industrial mineral resources. The Government of Punjab also plans to exploit its coal resources to address the acute energy crisis in the province by installing coal-fired power plants. The Minerals of Punjab provide the resource base of its Industrial Sector. There are 35 Minerals under Excavation Including Coal, Iron Ore, Limestone, Gypsum, Rock Salt etc. by 2300 Entrepreneurs. The Government of Punjab has issued 56 Industrial Leases to large Corporations/Multinationals for industrial production of Cement, Soda Ash, Caustic Soda, Fertilizer, Glass, Ceramics, Marble etc. Moreover, Punjab has the World’s largest Rock Salt deposits in Salt Range.
5 Figure 1: Mineral Locations in Punjab
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1 Pakistan Economic Survey 2014-15 3.3 Coal Resource Mines & Mineral Department, Government of the Punjab, got conducted local coal resource estimation of the Salt Range & Surghar (Trans-Indus) Range area on international JORC Standards through Australian Consultant, Snowden (2010-2013). The report has substantiated that Salt Range & Surghar Range has about 600 million tons of bituminous (Rank-D) coal resource & more than 800 small semi-mechanized operative coal mines. In addition, a good resource of coaly shales/high carbonaceous shales, suitable for power production as indicated through laboratory tests and ash fusion temperatures is also available.
Figure 2: Salt Range Zones for Coal Estimation Study
Figure 3: Coal Mines in Salt Range and Surghar (Trans Indus) Range Page 14 of 69
3.4 Punjab Energy Corridor The Government of Punjab has been facilitating all such initiatives, which may lead to foreign investment especially in the domain of establishment of local coal based power plants. The mineral resource corridor of Punjab stretches from District Jhelum to District Mianwali in Salt Range, spreading approximately 200 Km in length from East to West and 25 Km wide from North to South covering an area of more than 5000 Sq. Km which may be segmented into 5 zones (Figure 5) in terms of resource estimation and investment point of view. The area is rich in water availability, electric power grid stations and operational coal mines to cater for the consumption of local industry including coal based power plants.
Figure 4: Punjab Energy Corridor
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Figure 5: Integrated Zones within Energy Corridor
Figure 6: Proposed Power Plant Sites
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3.5 Local Coal Fired Power Plant China Machinery and Engineering Corporation (CMEC) has been granted LOI by Pakistan Power Infrastructure Board (PPIB) on 19th November, 2014 under its fast track policy for establishment of 1 × 300 MW local coal fired power plant on integrated mine-mouth model at Khewra Pind Dadan Khan, district Jhelum. The Mines & Minerals Department has initially granted a coal exploration license to the company which will subsequently be converted into mining lease. Financial component of the project will be around $ 800 million with $ 500 million as Power Plant Component and $ 300 million as mining component. In this regard, a facilitation agreement has been signed during the current visit of President of China to Pakistan. The project is included in the priority list of projects of China-Pak Economic Corridor (CPEC). The project is expected to achieve COD in March 2018. 3.6 The Client: Directorate General of Mines & Minerals, Punjab (DG) The Client (DG) is an organization for promotion & regulation of minerals in Punjab Province. The main functions of Directorate General Mines & Minerals are: To supervise the Licensing/Regulation of the mineral activity in the Province and coordination for overall policy and strategies for the future of the mineral industry in the province To act as Appellate Authority for minor and major minerals (Small Scale Mining) To perform duties as Licensing Authority for Large Scale Mining To coordinate private & public mineral exploration and development activities in the Province To represent the Province on Committees for the strategies and coordinate activities with the Federal Government and Geological Survey of Pakistan and other allied Mineral Institutions 3.7 Background of the Project Pakistan is facing a serious energy crisis and is trying its best to overcome it through various initiatives for increased power generation. To achieve the objective, the Government of Punjab has been facilitating establishment of local coal based power plants. Mines & Mineral Department, Government of the Punjab, got conducted local coal resource estimation of the area on international JORC Standards through Australian Consultant, Snowden (2010- 2013). The report has substantiated that Salt Rang has more than 600 million tons of bituminous coal (Rank-D), apart from vast reserves of lignite coal, which is suitable for power production as indicated through laboratory tests and ash fusion temperatures. A Report based on geological authentication by Snowden is given in Annexure 5. The complete report of M/s Snowden will be shared with the successful bidder. Coal is being mined in the province for more than 100 years; however, due to the thin, tricky and unpredictable behavior of the coal seam, its mechanized mining remained a big challenge. Small mines are therefore developed with the installation of electric or diesel driven haulages for hauling of the produced coal
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and debris. The large scale productions from these mines have therefore never been achieved. The Directorate General of Mines & Minerals, Punjab regulates 346 Coal Mining Leases in the province from which an annual production of 0.6 million tons is being reported by the lessees but as a matter of fact, actual production figures may range between 1.5 to 2.5 million tones / year. However, to measure the actual coal production figures from each mine/lease, recently the DG conducted a coal mines survey through its own manpower. In this regard 588 operative coal mines in various leases were surveyed and requisite data from these coal mines was collected accordingly. The type of data collected by the DG is given in Annexure 4. The complete survey data collected by the DG will be shared with the successful bidder. Now, a third party verification of the data collected by DG and estimation of total available coal resource of each operative Mining lease area is required to gauge quantum of sustained supply of coal to power Plant(s) for at least 30 years. For this, The DG intends to engage the services of a reputed consultancy firm/consortium that has extensive experience in underground coal mine surveys along with highly qualified & experienced manpower and requisite equipments. 3.8 Project Objective The main objectives of the Underground Coal Mine Survey Consultancy are: 1. Detailed assessment, analysis & verification of the current coal mines data collected by the department regarding existing production level, coal seam thickness, coordinates etc; 2. Identification of all the Coal Mines with an average coal production of 10 tons per day (prevailing) and their relative road distance from proposed coal based Power Plant Site(s); 3. Identification of coal mines with availability of Coal having Minimum GCV 3200 kcal/kg; 4. Estimation of total available coal resource of each operative Mining lease area to gauge quantum of sustained supply of coal to power Plant(s) for at least 30 years. 3.9 Location 3.9.1 Salt Range The Salt Range is an east-north easterly trending mountain belt that curves to a north westerly trend in the far west. It is situated in the north of the Punjab Province of Pakistan. It forms the southern border of the hydrocarbon-bearing Potwar Basin along the north western margin of the Indo-Pakistani Plate. The southern face of the range is an escarpment that rises abruptly from the Punjab Plains. It is essentially an east-west oriented trough, bounded on the east by the Jhelum River and on the west by the Indus River as shown in Figure 7.
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Figure 7: Location of the Trans-Indus Range and Salt Range
The Salt Range, as interpreted in earlier studies and reported by GSP, is divided into three parts (Figure 8). The Eastern Salt Range covers the area from Jogi Tilla to Nilawahan, the Central Salt Range extends from Nilawahan to Warchha Mandi and the Western Salt Range occupies the area between Warchha Mandi and Mari Indus. Beyond the River Indus at Kalabagh, the Salt Range alters direction, becoming almost north-south.
Figure 8: Geographic Divisions of the Salt Range
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3.9.2 Trans Indus (Surghar) Range The Trans Indus or Surghar Range is a mountain belt that sharply changes in trend from north to east (Figure 9). The abrupt change in trend of the mountain belt is due to the thrusting from the north that has formed the anticlinal structure and thrust of the Kohat fold and thrust belt of what is now known as the Trans Indus (Figure 9). To the east of the Trans Indus Range is the Salt Range, together these form the southernmost mountain ranges that are associated with the Himalayan arc (Ahmad et. Al.,1999). The Salt Range is located to the east of the Trans Indus Range with the Indus River separating them. The Kohat Plateau is to the north of the Trans Indus Range, the Bannu Basin to the west and the Kurrum River is eroding the southernmost end of the Trans Indus Range as it flows into the Indus River (Figure 9).
Figure 9: Generalised geological map of the Surghar Range 3.10 Mined out Coal Currently, coal mining within the Salt Range is carried out by a number of small to medium operators, mostly as smaller private excavations. There are some larger operations including those being run by PUNJMIN. 3.11 Access The Salt Range can be easily accessed either from Islamabad or Lahore via the Lahore-Islamabad Motorway (M2) and then further to the east and west by both metalled and non-metalled roads. 3.12 Physiography Landforms within the Punjab Province vary significantly from mountainous regions of the Salt Range to the flood plains of the Indus River. The coal mining areas located within the Salt Range are of the most interest, the range extends
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from the Jhelum River to the Indus River across the northern portion of the Punjab Province. This area consists mainly of steep limestone hills and cliffs, deeply incised by tributaries of the two main rivers, with shallow soil cover on the plateau areas and relatively deeper cover on the flood plains. The drainage patterns are mostly controlled by structure, with dendritic and trellis patterns dictated by the characteristics of the various surface rock types (Figure 10).
Figure 10: Physiography of the Salt Range, Punjab Province
3.13 Land usage Land usage in the area consists of small-scale manual mining of coal and other minerals, large scale operations for mining salt, as well as subsistence level agriculture. Wilderness areas are few, mostly contained within the national parks which encompass both forest and desert areas. Native fauna of the Punjab Province include wild feline species such as caracal and sand cats, as well as a number of species of snakes, birds, rabbits and deer. Wild boars are still numerous in the Salt Range. Wilderness flora also varies greatly with the altitude and terrain, from reed beds and tamarisk bushes along the rivers to various pine and cedar species, with a preference for the higher range climates.
3.14 Climate The climate of the region can be considered temperature to sub-tropical, dependent upon altitude. The mean rainfall is in the order of 400-600 mm in a year, as the Salt Range is within the monsoon zone, receiving maximum rainfall in July and August, whilst from October to the end of February there is little rainfall. The climate is semi-humid and sub-tropical with hot to moderate summers and severe winters. Due the higher altitude, the summer temperature is less than on the plains below, rarely exceeding 44 °C. Winter temperatures vary from 0 to 23 °C (refer Figure 11 and Figure 12).
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Figure 11: Mean minimum and maximum temperatures of the Salt Range
Figure 12: Mean rainfall (mm) and mean maximum temperature of the Salt Range
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3.15 Selection and Engagement of Applicant for Consultancy Services for the Project In the backdrop of above, the Client desires to engage the Applicant, possessing sufficient capabilities and relevant experience, through competitive Bidding Process to provide Consultancy Services for the Project. The successful Applicant (Consultancy Firm) shall be responsible for “Underground Coal Mine Survey, Punjab, Pakistan”. The Scope of Work of the Consultancy Firm is defined in Section B: Terms of Reference, of this PQD. Applicants, as part of submission of this PQD, are encouraged to propose any revisions / amendments in the Scope of Work of the Consultancy Firm to make this function of Consultancy Services more effective and fruitful for the Project. In this connection, DG intends to hold a pre-submission meeting with the prospective applicants to analyze any changes in scope of work that they would like to propose. The meeting would be convened at the Client office (Poonch House, Multan Road, Lahore, Punjab, Pakistan) at 11 AM on August 11th, 2015.
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SECTION - B: TERMS OF REFERENCE
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1. Terms of Reference for Underground Coal Mine Survey Consultancy
1.1 Scope of Work
The Consultancy Firm/Consortia will:
1. Assess, analyze & verify the current coal mines data collected by the department regarding existing production level, coal seam thickness, coordinates etc; 2. Identify all the Coal Mines with an average coal production of 10 tons per day (prevailing) and their relative road distance from proposed coal based Power Plant Site(s); 3. Identify coal mines with availability of Coal having Minimum GCV 3200 kcal/kg; 4. Estimate total available coal resource of each operative Mining lease area to gauge quantum of sustained supply of coal to power Plant(s) for at least 30 years.
1.2 Tasks
The key tasks which need to be undertaken by the consultancy firm/consortia to achieve the scope of work include but are not limited to:
1. Carry out a review of existing surveyed data of operative coal mines collected by the DG;
2. Verification of the current coal and/or high carbonaceous shales/coaly shales production as reflected in the data collected by the DG;
3. Measurement of Maximum, Minimum and Average Coal Seam in each operative Coal mine and/or seams of high carbonaceous shales/coaly shales, in all its working faces;
4. Number of Operative Coal and/or high carbonaceous shales/coaly shales mines in each Mining Lease;
5. Lab analysis of representative / selected coal seams (in consultation with the client) of high carbonaceous shales/coaly shales, and preparation of Isopach maps on the basis of calorific value of coal seam, and to identify coal mines with minimum calorific value of 3200 Kcal/Kg;
6. Measurement of thickness of high carbonaceous shales/coaly shales above and below of the coal seam;
7. Mine Mouth Coordinates and RL of each mine in a format compatible to the Survey of Pakistan Grid System;
8. Broad understanding of the attitude of coal seams and high carbonaceous shales/coaly shales in clusters of operative coal mines i.e Trend, Strike and Dipping Angle and floor and roof lithology of coal seams and high carbonaceous shales/coaly shales etc.;
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9. Mining Method and exploitation level of each coal mine, i.e., per day coal production;
10. Water and gas condition of each mine;
11. Broad assessment of remaining in-situ coal and high carbonaceous shales/coaly shales potential of each mining lease area to assess the sustainable supply of coal having minimum calorific value of 3200 Kcal/Kg, upto 30 years to power plant, i.e., does the mining lease has the minable potential according to Snowden Coal resources or not?
1.3 Deliverables / Specific Outputs
The consultancy firm/consortia will deliver the following outputs for the assignment:
1. Soft copy along with ten (10) Hard Copies of the data verification report;
2. Isopach maps for coal seams for estimation of minimum calorific value of 3200 Kcal/Kg of coal seams and/or high carbonaceous shales/coaly shales of mining lease;
3. Lab Test reports of each sample of coal and/or high carbonaceous shales/coaly shales;
4. Identification of Coal mines which can collectively provide 5000 tons of coal having minimum calorific value of 3200 Kcal/Kg on daily basis for 30 years to proposed power plant(s). Preferably these mines should fall within a distance of 40 Km from Proposed Power Plant Site(s).
Detailed deliverables will be communicated in RFP and would also be discussed in pre bid meeting.
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SECTION - C: INSTRUCTIONS TO APPLICANTS
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1. INSTRUCTION TO APPLICANTS
1.1. Language of EOI The EOI and any related information will be written in English language for the ease of comprehension and comparability. Additionally, any original or pre- printed information (e.g. brochures) furnished by the Applicant may be written in native language, provided that it is accompanied by a certified translation of its pertinent passages in English. 1.2. Costs The Applicant shall bear all costs and expenses associated with the preparation and submission of its EOI, including, without limitation, all costs and expenses related to Applicant's preparation of responses to questions or requests for clarification issued by the Client. 1.3. Evaluation Requirements If the Applicant is a Consortium, it shall clearly indicate, in its EOI, which Consortium member(s) are to be evaluated for each such criteria. In case, it does not specify the same, the Lead Member of the Applicant will be considered for evaluation. 1.4. Applicant Lead Members An Applicant may be a single entity or may take the form of a Consortium comprising of companies, firms, corporate bodies or other legal entities. Each Consortium Applicant shall appoint and authorize one (1) lead member ("Lead Member"), through submission of duly executed Power of Attorney in the form set forth in Annexure 2 of Section - F of this PQD, to represent and irrevocably bind all members of the Applicant in all matters connected with the Prequalification Process, including but not limited to the submission of the EOI on behalf of the Applicant. 1.5. Consortium Participation Restrictions No Applicant may prequalify if it owns more than five per cent (5%) of the shares (directly or indirectly, in terms of voting rights and/or rights to dividends) of another Applicant. No Applicant may prequalify if it has any representative on the Board of Directors of another Applicant. No Firm or Applicant member may prequalify if any of the Client’s advisors or external consultants holds any shares or has any representatives in the Board of Directors of the Applicant. Notwithstanding the foregoing, an Applicant may prequalify if it can present evidence reasonably satisfactory to the Client that arrangements have been established such that any such cross shareholdings do not materially affect the independent decisions of the Applicant in which such cross shareholding exists. 1.6. Ineligibility of an Applicant If an Applicant has been barred by any Central, State or local government or government instrumentality in Pakistan or in any other jurisdiction to which the Applicant belongs or in which the Applicant conducts its business, from Page 28 of 69
participating in any project, and the bar subsists as on the EOI Submission Deadline, such entity shall not be eligible to submit an EOI, either individually or as a member of an Applicant Consortium. 1.7. Prequalification Criteria Each Applicant's general and particular experience, personnel and financial position, as demonstrated by the Applicant's responses in the prescribed forms will be evaluated as per prequalification criteria given in this PQD. The Client reserves the right to waive minor deviations, if these do not materially affect the capability of an Applicant to perform the contract. Sub-Consultant(s) experience and resources shall not be taken into account for determining the Applicant’s compliance with the prequalification criteria. 1.8. Partnering between Prequalified Applicants Any prequalified Applicant shall be precluded from partnering (directly or indirectly) with another prequalified Applicant without the express written approval of the Client, who shall be free to accept or refuse at its discretion, and in all cases taking into account the likely effects of the proposed partnering on the competitiveness of the Bidding Process. If the Applicant is a Consortium, the above procedure shall apply to all members of the Applicant. 1.9. Partnering between Prequalified Applicant and Non-Prequalified Applicant Non-prequalified Applicant shall not be entitled to partner with a prequalified Applicant.
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SECTION - D: SUBMISSION AND EVALUATION OF EOIs
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1. SUBMISSION OF EOI
1.1. Format and Signing of the EOI The EOI shall be submitted in triplicate (one original and two copies) and placed in a sealed envelope clearly marked “EOI – Consultancy Services for the Project “Underground Coal Mine Survey, Punjab, Pakistan””. The EOI shall be signed by a duly authorized representative of the Applicant. The EOIs shall include a Power of Attorney (Annexure - 1 of Section - F of this PQD) authorizing such representative to sign and submit the EOIs to DG on behalf of the Applicant. Authorized representative of Applicants shall make initials on each page of EOI. The Applicant may modify, substitute or withdraw its EOI after submission, provided that written notice of the modification, substitution or withdrawal is received by DG prior to the EOI Submission Date. No EOI shall be modified, substituted or withdrawn by the Applicant on or after the EOI Submission Date. The modification, substitution or withdrawal notice shall be prepared, sealed, marked, and delivered with the envelopes being additionally marked “MODIFICATION”, “SUBSTITUTION” or “WITHDRAWAL”, as appropriate. Any alteration/ modification in the EOI or additional information supplied subsequent to the EOI Submission Date shall be disregarded. 1.2. Sealing and Marking of EOI The Applicant shall seal the original EOI and each copy in separate envelopes and shall mark the envelopes as "Original" and "Copies" (all duly marked as required herein). The envelopes shall be sealed in an outer envelope. The inner and outer envelopes shall be addressed to the Client (DG) at the following address: The Director General, Directorate General of Mines & Minerals, Punjab Poonch House, Multan Road, Lahore, Punjab, Pakistan PH: +92-042-99212724, +92-042-99212740 FAX: +92-042-99212726, +92- 042-99213657 The inner and outer envelopes shall each bear the words: “EOI - CONSULTANCY SERVICES FOR THE PROJECT: “UNDERGROUND COAL MINE SURVEY, PUNJAB, PAKISTAN”" The outer envelope shall indicate the name and address of the Applicant to enable the relevant EOI to be returned unopened in the event that it is declared "late". If the outer envelope is not sealed and marked as required, the Client will assume no responsibility for any misplacement or premature opening of the EOI. 1.3. Deadline for Submission of EOIs EOIs shall be submitted to the Client at the address specified above no later than 14:00 hrs PAKISTAN TIME, August 31st, 2015 (the "EOI Submission Date"). Page 31 of 69
Any EOI submitted after the EOI Submission Date shall be rejected and shall be returned unopened to the Applicant. DG may, at its discretion, extend the EOI Submission Date by amending the PQD, and in such case, all rights and obligations of DG and the Applicants subject to the previous deadline shall thereafter be subject to the deadline as extended. 1.4. Addendum At any time prior to the EOI Submission Date of EOIs, the Client may amend the PQD by issuing addenda. Any addendum issued shall be part of the PQD and shall be communicated through email or other suitable means as decided by DG to all who have requested to obtain the PQD in pursuance to the Advertisement inviting EOIs.
2. EVALUATION OF EOI
2.1. Preliminary Examination of EOIs The Client will carry out a preliminary examination of each EOI to determine whether it is complete, whether the documents have been properly signed, and whether it is generally in order. Where the Client deems it convenient or necessary, it may request supplementary information or documentation from an Applicant for determining its eligibility for prequalification. Whenever such request is made, the Applicant shall provide the same to the Client by such date as may be specified by the Client. Any EOI found to be non-responsive may be rejected by the Client and not included for further consideration. 2.2. Evaluation of EOIs The Client will carry out a detailed evaluation of the EOIs that have not been rejected after the preliminary examination. Subsequently, the Client will examine the information provided by the Applicant in the EOI for its prequalification to be done in accordance with Prequalification Criteria specified in the following pages. Applicant whose EOI is determined by the Client to be substantively responsive thereby meeting the prequalification criteria specified shall be invited to participate in the next stages of the Bidding Process. Applicant whose EOI is determined by the Client to be substantively non- responsive thereby not meeting the Prequalification Criteria specified shall be disqualified from participating in the Bidding Process. Verification of the information provided by the Applicant in the EOI submitted for prequalification may be made in such manner as the Client may decide. 2.3. Test of Responsiveness Prior to detailed evaluation of EOIs, DG shall determine whether each EOI is responsive to the requirements of this PQD. An EOI shall be considered responsive only if: Page 32 of 69
(i). It is duly signed and each page is initialed on behalf of the Applicant by the duly authorized representative; (ii). It is prepared and received as per the formats and Annexure given in Section – E and Section F of this PQD; (iii). It is received by the EOI Submission Date including any extension thereof, if any; (iv). It is sealed and bound together in hard cover and marked as stipulated in the above clauses; (v). It is accompanied by the latest three years Audited Financial Statements in accordance with Form – 3 of Section - E of this PQD; (vi). It is accompanied by the Power(s) of Attorney in accordance with Annexure – 1 and Annexure - 2 of Section - F of this PQD; (vii). It is accompanied by the Affidavit in accordance with Annexure – 3 of Section - F of this PQD; and (viii). It does not contain any condition i.e. it is unconditional. DG reserves the right to reject any EOI which is non-responsive and no request for alteration, modification, substitution or withdrawal shall be entertained in respect thereof. 2.4. Invitation for Request for Proposal (RFP) At the end of evaluation activity, the Client will issue RFP to the prequalified Applicants for participating in the next stages of the Bidding Process. Moreover, if the prequalified Applicant is a Consortium, it shall not change the structure of the Consortium for participating in the Bidding Process without the prior written consent of the Client. 3. PREQUALIFICATION CRITERIA
The maximum marks are 100 with the following weightage distribution. (i). Weightage for technical criteria is 80% (ii). Weightage for financial criteria is 20% Minimum 50% marks for each section/segment of technical and financial criteria are required for prequalification. Cumulative/Aggregate (technical + financial) prequalifying marks after assigning above mentioned weightages will be 65%. Final Score for prequalification shall be calculated as follows: Prequalification Score Marks obtained in Technical Criteria x (0.80) – A Marks obtained in Financial Criteria x (0.20) – B Total Score (A+B)
This score should be exceeding 65 for an Applicant to prequalify.
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3.1. Technical Criteria The following technical criteria shall be used to prequalify the Applicants: A. Applicant's Profile and Strengths B. Relevant Experience C. Profile of Proposed Team Prequalification of Applicants will be done on the basis of score obtained out of 100 according to the following table:
Maximum Obtained Evaluation Areas Score Score
A. Applicant's Profile and Strengths 35
B. Relevant Experience 35
C. Profile of Proposed Team 30
Total 100
Minimum qualifying score in each sub section will be 50% for the Applicant to prequalify in technical criteria.
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A. Applicant's Profile and Total Marks = 35 Strengths
Max. Obtained Criteria Range Score Score
Overall Experience in Two marks will be awarded Consultancy Services for: for one year of experience with a capping of 20 marks. a. Underground/Subsurface Mine Survey Preference will be given to international experience in 20 Underground/Subsurface
Mine Survey
Note: Each Applicant shall clearly demonstrate its experience along with suitable evidence thereof to facilitate evaluation under this section.
Local presence 05 International presence 05 Local and international 05 additional marks will be 15 presence awarded in case an Applicant has local and international experiences
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B. Relevant Experience Total Marks = 35
Max. Obtained Criteria Range Score Score
Consultancy Services for Each project will carry 35 Underground/Subsurface Mine Survey. five marks. Preference For each project the Firm/Consortium will will be given to specify the following activity undertaken. international experience Accordingly, following marking scheme will in be observed for marking each project Underground/Subsurface mentioned: Mine Survey
Activity Marks
(a) Underground/Subsurface 05 Mine Survey
Note 1: Each Applicant shall fill Form -1 to express its experience. Note 2: Each Applicant shall clearly demonstrate its experience of undertaking the project in the form of a completion / ongoing work certificate from the client to which services were rendered or being rendered in case of ongoing projects.
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C. Profile of Proposed Team Total Marks = 30
Max. Obtained Criteria Range Score Score
Team Leader Each of the Project Team Leader holding minimum M.Sc projects or M.Phill Geosciences having at least fifteen mentioned will 10 years relevant experience and expertise in carry two marks Geo-data Management for Minerals & Mining.
Geologist or Mining Engineer Each of the projects Project Team Member holding minimum M.Sc mentioned will 10 or M.Phill in Geology or B.Sc Mining Engineer carry two marks having at least seven years relevant experience and expertise in Minerals & Mining.
Surveyor Each of the Project Team Member holding minimum projects Diploma in Surveying from recognized Institute mentioned will 05 having at least three years relevant experience carry one mark and expertise in Mines Survey.
Each of the Technical Report Writer projects 05 Project Team Member having at least ten years mentioned will of relevant experience and expertise in report carry one mark writing of Minerals & Mining.
Note: Each Team member shall fill Form -2 to demonstrate its experience.
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3.2. Financial Criteria The following financial criteria shall be used to prequalify the Applicants: Prequalification of Applicants will be done on the basis of score obtained out of 100 according to the following table:
Maximum Obtained Evaluation Areas Score Score
Applicant's Financial Strength: A. Average Net Worth 50 B. Average Gross Annual 50 Revenue/Sales/Turnover
Total 100
Minimum qualifying score in each sub section will be 50% for the Applicant to prequalify in financial criteria. i. Net Worth means the value of total assets less total liabilities of the entity concerned at the end of a financial year
The Applicant Firms/Consortia shall provide information regarding the above, based on the audited annual financial statements for the last three (3) full financial years up to 30th June, 2014, for which such statements are available, including the consolidated balance sheet, income statement, statement of cash flows and the accompanying notes. Further elaboration regarding financial capability has been given below. ii. Gross Annual Revenues/Turnover/Sales means the value of gross revenues/turnover/sales of the firm/consortium concerned for a given financial year as mentioned in its financial statement for that year.
NOTE: (1) For Conversion of Net Worth and Annual Revenues of the Firm/Consortium into PKR (Pakistan Rupees), the Exchange Rate of USD 1 = PKR 102 would be applied.
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(2) The AVERAGE of last three years for net worth and gross annual revenues, as determined from the audited annual financial statements of the firms/consortia (for the last three years) up to 30th June, 2014 would form the BASIS for marking/ranking during evaluation process.
Applicant's Financial Strength Total Marks = 100
Max. Obtained Criteria Range Score Score
A. Average Net Worth Total Marks = 50
Up to PKR 0.01 30 Average Net Worth Billion
Exceeding 50 PKR 0.01 Billion
B. Average Gross Annual Total Marks = 50 Revenue/Sales/Turnover
PKR 0.10 30 Average Gross Annual Revenue Billion – 0.15 Billion
Exceeding 50 PKR 0.15 Billion
Note: Each Applicant shall fill Form - 3 to express its Financial Strength.
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SECTION - E: FORMATS
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FORM – 1: RELEVANT EXPERIENCE
Applicants shall provide the details of projects completed or in progress using the Form below:
Details of Consultancy Services for Underground/Subsurface Mine Survey Projects
1. Name of Project:
Country of Execution:
Activities undertaken: (a) Underground/Subsurface Mine Survey
2. Name and Contact Details of Procuring Agency:
3. Nature and scope of work executed:
4. Value of Services Provided in PKR for each component: (a) Underground/Subsurface Mine Survey
5. Date of Award:
6. Date of Completion:
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FORM – 2: RELEVANT PROJECT PERSONNEL
Title of Position:
Personnel Name Date of birth Information Professional qualifications
Present Name of employer Employment Address of employer
Telephone Contact (Manager / Personnel Officer)
Fax E-mail
Job title / Position Years with present employer
Please summarize professional experience in reverse chronological order. Indicate particular technical and managerial experience relevant to the proposed Project.
Serial Project From To Particulars # Name
1 Company Name: Position Held: Work Done on the project:
2 Company Name: Position Held: Work Done on the project:
Note: The Applicant shall not change the proposed team for the project while submitting its Technical Proposal except with prior written approval of the Client.
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FORM – 3: FINANCIAL STATUS a. Summarize the required financial data in the form below, based on audited financial statements for the latest three (3) financial years. b. For Conversion of Net Worth, Gross Annual Revenue/Turnover/Sale of the Applicant into PKR (Pakistan Rupees), the Exchange Rate of USD 1 = PKR 102 will be used.
Particulars Latest Year 1 Year 2 Year 3
1. Net Worth
2. Gross Annual Revenue
Note: The Applicant shall fill this table based on the audited financial statements, which statements shall be submitted by the Applicants with their EOIs duly translated in English language from a certified translator.
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FORM – 4: LITIGATION HISTORY
Applicants, including each of the members of an Applicant Consortium, shall provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution. A separate sheet should be used for each Consortium member. A consistent history (50% or more) of award against the Applicant or any member of a Consortium may result in rejection of the application. A. Decided Litigation:
Year Award For or Name of client, Disputed amount Against Applicant cause of litigation, (Current value Pak and matter in Rs. dispute or equivalent)
B. Pending Litigation:
Year Matter in Dispute Value of Value of Pending Pending Claim Claim in as a Percentage US$ of Net Worth Equivalent
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SECTION - F: ANNEXURE
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ANNEXURE – 1 POWER OF ATTORNEY FROM APPLICANT IN FAVOUR OF ITS AUTHORIZED SIGNATORY
Date:
Power of Attorney
Know all men by these presents, We______name and address of the registered office) do hereby constitute, appoint and authorize Mr./ Ms. ______name and residential address) who is presently employed with us and holding the position of ______as our attorney, to do in our name and on our behalf, all such acts, deeds and things necessary in connection with or incidental to our EOI for Prequalification of Applicant for the Provision of Consultancy Services for The Project “Underground Coal Mine Survey, Punjab, Pakistan”, including signing and submission of all documents and providing information / responses to the Directorate General of Mines & Minerals, Punjab (DG), representing us in all matters before DG, and generally dealing with DG in all matters in connection with our EOI for the said Consultancy Services Project. We hereby agree to ratify all acts, deeds and things lawfully done by our said attorney pursuant to this Power of Attorney and that all acts, deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us.
Signature of Authorized Attorney ______Name and Title of Attorney: ______Name of Firm: ______Address: ______
Note: To be executed by all the members in case of a Consortium. The mode of execution of the Power of Attorney should be in accordance with the procedure, if any, laid down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.
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ANNEXURE – 2 POWER OF ATTORNEY BY APPLICANT MEMBERS IN FAVOUR OF LEAD APPLICANT MEMBER
Power of Attorney Whereas, the Directorate General of Mines & Minerals, Punjab (DG) has invited EOIs from interested parties for the Prequalification of Applicant for the Provision of Consultancy Services for the Project “Underground Coal Mine Survey, Punjab, Pakistan”. Whereas, the undersigned members of the Applicant are interested in prequalification for the abovementioned Consultancy Services Project in accordance with the terms and conditions of the Prequalification Document (PQD). Whereas, it is necessary under the PQD for the members of the Applicant to designate one of them as the Lead Member with all necessary power and authority to do for and on behalf of the Applicant and its members, all acts, deeds and things as may be necessary in connection with the Applicant’s EOI for the Project. NOW THIS POWER OF ATTORNEY WITNESSETH THAT; We, M/s. ______M/s ______and M/s ______(the respective names and addresses of the registered office) do hereby designate M/s ______being one of the members of the Applicant, as the Lead Member of the Applicant, to do on behalf of the Applicant and all its members, all or any of the acts, deeds or things necessary or incidental to the Applicant’s EOI for the Project, including submission of EOI, responding to queries, submission of information / documents and generally to represent the Applicant in all its dealings with DG, any other Government Agency or any person, in connection with the Consultancy Services Project until culmination of the process of prequalification. We hereby agree to ratify all acts, deeds and things lawfully done by the Lead Member pursuant to this Power of Attorney and that all acts deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us/Applicant. Dated this the ______Day of ______201___ (Executants) Signature of Authorized Attorney ______Name and Title of Attorney: ______Name of Firm: ______Address: ______(To be executed by all the members of the Applicant) Note: The mode of execution of the Power of Attorney should be in accordance with the procedure, if any, lay down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.
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ANNEXURE – 3 AFFIDAVIT
Date:
Director General Directorate General of Mines & Minerals, Punjab (DG) Poonch House, Multan Road, Lahore, Punjab, Pakistan We, [insert name of Applicant] hereby represent and warrant that, as of the date of this letter [Name of Applicant / Lead Member of Applicant], and each member of Applicant (if applicable): a. is not in bankruptcy or liquidation proceedings; b. has not been convicted of, fraud, corruption, collusion or money laundering; and c. is not aware of any conflict of interest or potential conflict of interest arising from prior or existing contracts or relationships which could materially affect its capability to comply with the obligations in respect of the subject Project for which prequalification is being done. We further represent and warrant that all information and documentation submitted as part of our Expression of Interest is true and accurate. We have also attached a clearance certificate duly attested by the chamber of commerce / registration authority evidencing registration.
Yours sincerely,
Signature of Authorized Signatory ______Name and Title of Signatory: ______Name of Firm: ______Address: ______
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ANNEXURE – 4 TYPE OF EXISTING SURVEYED DATA OF OPERATIVE COAL MINES COLLECTED BY THE DIRECTORATE GENERAL OF MINES & MINERALS, PUNJAB (DG)
1. No. of mining leased area 2. Mine (No., Name) 3. Status of Mine (Operative / Closed) 4. Average Production ton/day 5. Coal Seam Thickness (Maximum, Minimum, Average) 6. High carbonaceous shale (HCsh) and its relative position to coal mining seam 7. Location of high carbonaceous shale (HCsh) 8. Thickness of high carbonaceous shale (HCsh) 9. Location of mine mouth/ wellhead (Easting(m), Northing(m), Elevation) 10. Size of road way (Height (Meters), Width (Meters)) 11. Attitude of coal / HCsh seam (Strike, Tendency, Dipping Angle (Degree)) 12. Supporting Method 13. Exploitations level of mine 14. Roof lithalogy (including immediate roof and main roof lithalogic description) 15. Floor lithalogy 16. Road way arrangement (Developing mode, Mining method) 17. Water and gas condition (Predicted water condition gal / min, Actual water condition gal / min, Co2 outburst in m³/t or m³/min, Outburst of any other gas(if any) in m³/t or m³/min) 18. Closed Mine (Reason of Closure, Water condition)
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ANNEXURE – 5 REPORT BASED ON GEOLOGICAL AUTHENTICATION BY SNOWDEN
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COAL RESOURCES OF PUNJAB
A report based on the geological authentication of the coal deposit
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COAL RESOURCES OF PUNJAB
Punjab is the central province of Pakistan. Coal resources of Punjab are mainly found in Salt Range and Trans Indus Range. Salt Range is an east – northeasterly trending mountain front abruptly rising from the Punjab plains and is bounded by River Jhelum in the east and River Indus in the west. The southern margin of the Salt Range is a 600 meter high escarpment at a distance of about 200 kilometers from the capital city of Lahore, Punjab Province. Across the River Indus, it extends towards further west and bends south-westwards where it is known as Trans Indus Range. The strategraphic horizons range from pre- Cambrian to recent geological ages.
According to the historical estimates carried out in 1984–88 by Geological Survey of Pakistan in collaboration with United States Geological Survey, the coal deposits of Salt Range – Trans Indus Range were 235 million tones. In order to have authenticated coal resources estimation, compliant with international standards and to build up the investors’ confidence for coal based power generation projects, the Government of Punjab took initiative to re-authenticate the coal resources of Salt Range – Trans Indus Range.
Geological Map of Salt Range
A- AUTHENTICATION OF COAL RESOURCES
Mines and Minerals Department, Government of the Punjab Province, engaged SNoWDEN, an Austral- ian Consulting Firm to evaluate and re-authenticate the coal reserves of the Salt Range and Trans Indus Range. The strategy was to review the past studies, data and estimates etc. and drilling of boreholes in the Salt Range region along with collection of relevant survey data from the productive coal mines. In addition, coal quality analysis of all the coal samples encountered in the boreholes and mines along with geophysical logging of boreholes, where possible, were also carried out. As part of the planning, Salt Range was sub- divided into five (5) zones.
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SNoWDEN developed a Resource Estimate for various zones within the Salt range. Whereas in the Trans Indus Range, due to difficult terrain, drilling was not possible therefore coal mines data was used in modeling. In total there were seven zones modeled. Five zones were able to have Coal Resource estimates generated; these were the Dalwal, Ara Basharat, Dandot, Padhrar and Chambal zones. Resource estimation for two areas i.e. Makerwal, (Trans Indus Range) and Jogi Tilla (Eastern Salt Range) could not be developed due to the fact that infill drilling between the mine samples to align the deposits with the present criteria for coal resource as per the JORC (2004) code was not possible. Therefore, for Trans-Indus and Jogi Tilla zones, Coal Inventory estimates were generated using the coal mines data within the zones.
Resources have been estimated on a zone by zone model basis according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 (“The JORC Code, 2004”) and the Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves, 2003 Edition (“The Coal Guidelines”).
Coal in the Salt Range is found in Patala formation (PA) of Paleocene age whereas in Trans Indus Range it is found in Hangu formation of late Paleocene age. Estimated resources are deemed to be fresh coal with no thickness cut-off applied within the modeled zone boundaries. No maximum seam thickness has been applied to resources in the study. Typically in each deposit there are thickness variations encountered, primarily these are geological responses to post deposition structural deformation.
The Salt Range area was subdivided into individual model zones; with structural domains then created over each zone in order to represent fault block dislocations. These domains were determined by assessing cross- sections modeled through each zone and the associated faulting and topographic features. Past boreholes data with unacceptable discrepancies between the elevation of the borehole collar and modeled topography were removed from this process to facilitate the creation of a more accurate structural geological model.
To develop the coal resource and inventory estimates, a comprehensive drilling plan was executed along with collection of existing coal mines data in the Salt Range and Trans Indus Range.
Following is the summary of data used in the geological modeling of the coal resources. • 384 (205+179) drilled holes data • 346 Mines survey data • 536 BHs and mines coal quality analysis • 08 selected Round Robin quality analysis • 12 selected Ash Fusion tests • 114 Geophysical logs with LAS certification • Area covered: 614 square kilometers
(a) Modeling Processes and Model Parameters
The geological models for the Dalwal, Ara-Basharat, Padhrar, Dandot and Chambal Zones were developed as a grid based model in VULCAN. The underlying reasons for using such a modeling process was to enable surface to surface calculation by arithmetic means using the “Grid Calc” functionality within the software. This process also provides a relatively easy means for model regeneration with subsequent data updates. Page 53 of 69
General parameters for grid models included the following:
Grid cell size: 150 m x 150 m – this was determined as approximately one third of the average distance between the most closely spaced boreholes
Method: Triangulation 1st order trend for structure
Method: Inverse Distance squared (IVD2 ) for coal quality interpolation
Maximum search distance: 3,000 m.
(b) Topography
Snowden were able to secure digital elevation models (DEM) of the Trans Indus and Salt Range areas from NASA’s ASTER directory. The Advanced Space borne Thermal Emission and eflection Radiometer (ASTER) Global Digital Elevation Model (GDEM) was developed jointly by the Ministry of Economy, Trade, and Industry (METI) of Japan and the United States National Aeronautics and Space Administration (NASA).
The ASTER GDEM was generated from satellite images captured using the ASTER instrument which is equipped with an along-track stereoscopic capability, using its near infrared spectral band and its nadir- viewing and backward-viewing telescopes, to acquire stereo image data at a base-to-height ratio of 0.6. Data processing involves automated stereo-correlation to produce 1,264,118 individual scene-based AS- TER DEMs, cloud masking to remove cloudy pixels, stacking all cloud-screened DEMs, removing residual bad values and outliers, averaging selected data to create final pixel values, and then correcting residual anomalies before partitioning the data into 1° -by-1° tiles.
(c) ASTER DEM
Six ASTER tiles, each covering 1 x 1 degree (1.84km) and formatted in Latitude and Longitude coordi- nates, were obtained for the Trans Indus and Salt Range area inclusive 71° to 74° Latitude and 32° to 34° Longitude. This approximates a total coverage of about 6.124 million hectares. The spatial resolution of the obtained topography is 1 arc degree or 30 meters (m) in the horizontal plane and 20 meters at 95% confidence for vertical data.
B- CATEGORIES OF COAL RESOURCES
Coal Resources have been categorized into measured, indicated and inferred classification with the following criterion:-
(a) Measured Coal Resources
(i) Adjacent points of observation being within a distance of 500 m from each other
(ii) Extrapolation of no more than 250 m from a point of observation
(iii) Minimum of three points to define an area of influence.
(b) Indicated Resources
(i) Points of observation with a maximum interval distance of 1,000 m (ii) Extrapolation of no more than 500 m from a point of observation. (iii) Minimum of two points to define an area of influence. Page 54 of 69
(c) Inferred Resources
Points of observation with a maximum interval distance of 4,000 m
(i) Extrapolation of no more than 2,000 m from a point of observation
(ii) Minimum of one point to define an area of influence.
C- COAL QUALITY
A large range of coal samples from mines and boreholes were analyzed from the coal testing laboratories as per ASTM standards. Analysis of few coal samples from Salt Range and Trans Indus Range is given in the following table:-
ANALYZED BY SGS KARACHI, PU, LAHORE AND DG CEMENT, CHAKWAL
Inherent Total Moisture Fixed Carbon R. Density Sr. No. ADL (%) ARB VM (%) ADB Ash Sulfur GCV (Kcal/ Kg) Sample ID Moisture (%) (%) ARB (%) ADB (kg/dm3) ADB Ash Fusion (%) ADB (%) ADB ADB ADB CZ 2.73 3.15 5.79 43.23 21.01 32.61 OS=1.78 5829 1.40 IDT=12850C, 0 1 ML-KHB-Coal(7) IOS=3.30 10492.2 ST=1385 C Mine No.10 (BTU) HT=13870C FT=13960C PZ 3.81 2.86 6.56 38.67 24.29 34.18 OS=1.20 5683 1.55 IDT=13690C, 0 2 ML-CKL-I-Coal(106) Mine IOS=8.02 10229.4 ST=1454 C No.1 (BTU) HT=14580C FT=14620C AB / DZ 4.16 2.73 6.78 36.25 24.46 36.56 OS=1.11 5673 1.38 IDT=13280C, 0 3 ML-CKL-I-Coal(50) IOS=5.95 10211.4 ST=1388 C Mine No.1-A (BTU) HT=13980C FT=14090C DZ 2.63 2.94 5.49 44.32 19.39 33.35 (OS=0.91) (In. 6198 1.37 IDT=1324°C 4 ABUBAKKR-MINE ML- OS=1.39) 11156.4 ST=1402°C CKL-I-COAL(26) (BTU) HT=1410°C FT=1432°C
Makerwal 2.08 2.59 3.02 49.17 7.85 40.39 6.30 6917.00 5 MAADN A HAQ,ML- 12450.6 MLI-COAL-01 (BTU) Jhelum 4.26 1.11 5.32 39.43 13.88 45.58 7.40 6499.00 1.58 6 Mine-M-Sajja 11698.2 ML-JLM-Coal(30) (BTU)
D- COAL RESOURCE ZONES (1) DALWAL ZONE This zone is located in the eastern Salt Range and comprises a Plateau area with small out crops of Eocene limestone on Southern and Northern limbs. The flat terrain is filled with Alluvium deposits with an average eleva- tion of 700 meter from mean sea level. The area is connected through a metalled road passing in the center, further connected to Lahore, Islamabad Motorway.
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(i) Structural Domains:
Structural geology of the Dalwal Zone is particularly complex and 15 individual domains were developed during the study. Boreholes and Mine sample surface collar RL vs. Topography data was processed and validated to develop an accurate relationship for structural domain modeling. Cross sections were created over the modeling area to assess stratigraphic correlations and from this assessment fault boundaries were digitized. Domains generally trend east-west; separated by long faults trending in the same direction. These larger domains are commonly cut by SW-NE trending faults resulting in smaller domains within the larger fault blocks.
(ii) Coal quality grid models
Due to a large number of structural domains modeled over the Dalwal Zone, coal quality grid models were created for the whole area and not limited to individual domains. Due to the small size of some domains, many were left with too few points of observation to allow for accurate coal quality modeling. The PA seam was divided into two or more splits, the thickest split was used as the PA Seam resulting in one seam (PA) being modeled for the Dalwal Zone. Coal quality models were then generated for the entire area. This al- lowed for greater accuracy in the overall Resource Estimation and provided a better reflection of the in situ Resource.
(iii) Coal Resources:
The pre-mining estimated in situ tonnes in the deposit were calculated to be 143.5 million tonnes. Previously mined (i.e. ROM coal) from the Dalwal Zone area is approximately 3.48 Mt. This equates to an equivalent in situ tonnage of 4.49 Mt (adb) when accounting for ROM moisture content and free moisture then accounting for sterilization of coal left in pillars within the previous workings. This tonnage has been taken from the Indicated Resource category and equates to a total, in situ Resource of 139.01 million tonnes at an average combined raw ash of 45.48% (adb) and a raw gross calorific value of 3639 kcal/kg (adb). Coal is found at an average depth of about 140 meter. Average seam thickness is 0.75 meter. Table-1 displays the respective tonnages within each Resource category of the Dalwal Area.
Table-1 Summary of Estimated Coal Resources for Dalwal Zone
JORC Classification - PA SEAM (Dalwal) Relative Density Inherent Raw Ash % Raw GCV Tonnes Mt gm/cc Moisture % (air dried kcal/kg (air dried basis (air dried basis) (air dried basis) (air dried basis) basis) Measured (Sub-total) 6.60 Previously Mined Coal 0.69 Measured (total) 5.91 1.68 2.22 42.31 3757 Indicated (Sub-total) 49.10 Previously Mined Coal 3.70 Indicated (total) 45.40 1.71 2.72 46.22 3581 Inferred (Sub-total) 87.80 Previously Mined Coal 0.10 1.71 2.85 45.32 3661 Inferred (total) 87.70 TOTAL (in situ Resource) 139.01 1.71 2.77 45.48 3639
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(2) ARA BASHARAT ZONE
Ara Bashart Zone is located in extreme eastern part of the Salt Range. Mainly the land forms are plateau type with low to med ium relief outcrops of various rock units. The Patala formation is comparatively less thick as compared to other parts of the Salt Range.
(i) Structural Domains The structural geology of the Ara Basharat Zone is not particularly complex and required the creation of 6 individual domains. Boreholes and Mine sample surface collar RL vs. Topography data was processed and validated to develop an accurate relationship for structural domain modeling. Cross sections were created over the modeling area to assess stratigraphic correlations and from this assessment fault boundaries were digitized. Where applicable, previously modeled faults were taken from maps of the area and used as guides in creating domain boundaries.
(ii) Coal quality grid models Although the structural geology of the Ara Basharat Zone is not complex, coal quality grid models were cre- ated for the entire area and were not limited to individual domains. For this reason coal thickness (TK) grid models were generated for the PA seam over the entire zone. Lithological data indicated that there were only three boreholes that contained seam splits. Therefore the thickest split from these boreholes was designated as the PA seam and modeled accordingly. Coal quality models were then generated for the entire area based on the same principle. This allowed for greater accuracy in the overall Resource Estimation and provided a better reflection of the in situ Resource.
(iii) Coal Resources The pre-mining estimated in situ tonnes in the deposit were calculated to be 80.1 million tonnes. Previously mined (i.e. ROM coal) from the Dalwal Zone area is approximately 2.51 Mt. This equates to an equivalent in situ tonnage of 3.24 Mt (adb) when accounting for ROM moisture content and free moisture then ac- counting for sterilization of coal left in pillars within the previous workings. This tonnage has been taken from the Indicated Resource category and equates to a total, in situ Resource of 76.86 million tonnes at an average combined raw ash of 47.79% (adb) and a raw gross calorific value of 3488 kcal/kg (adb). Coal is found at an average depth of about 80 meter. Average seam thickness is 0.5 meter Table-2 displays the respective tonnages within each Resource category of the Ara Basharat Area. Table-2 Summary of Estimated Coal Resources for Ara-Bashart Zone
JORC Classification - PA SEAM (Ara Basharat) Relative Density Inherent Raw Ash % Raw GCV Tonnes Mt Moisture % (air dried kcal/kg (air dried basis gm/cc (air dried basis) (air dried basis) (air dried basis) basis) Measured (Sub-total) 2.30 Previously Mined Coal 0.09 Measured (total) 2.21 1.77 2.58 50.13 3330 Indicated (Sub-total) 17.70 Previously Mined Coal 0.71 Indicated (total) 16.99 1.73 2.44 47.61 3504 Inferred (Sub-total) 60.10 Previously Mined Coal 2.44 1.73 2.27 47.74 3483 Inferred (total) 57.66 TOTAL (in situ Resource) 76.86 1.73 2.32 47.79 3488
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(3) PADHRAR ZONE
This zone is located in the Central Salt Range and comprises of a Plateau area. The plateau has a very gen- tle slope and mainly forms a flat terrain. Topographically the area comprises of medium relief and thin spreads of Quaternary Alluvium. Eocene limestone is capping the sub-surface coal bearing Patala formation. Average surface elevation is 750 meter from mean sea level. The area is connected through a metalled road passing in northern limb of the zone, further connected to Lahore, Islamabad Motorway.
(i) Structural Domains
The Padhrar Zone was divided into domains for modeling that were bounded by major fault structures along the domain boundaries. The displacement of each fault segment is not detailed on the available geological maps of Geological Survey of Pakistan. The fault structures had the potential to affect the geological mod- eling and RL continuity of the Patala Seam Group. This was due to fault dislocations displacing the relative levels on each side of the major fault boundaries. In effect there were three areas identified for domaining within the Padhrar zone model area: South Padhrar, Main Padhrar and East .
The topographic model utilized employed shuttle radar data that generally had 90m spacing when sampling the Earth’s topography. A number of boreholes were found to be in close proximity to one another. Due diligence and data validation process for the boreholes and the mines was applied. There appeared to be a relatively large allowable tolerance between the collar elevation and the topographic surface in these set of geological models which can be a cause of problem for data located relatively close in the X and Y directions. If one borehole then has a topographic collar that is 10m above the topographic surface and one nearby is 10m below the topographic surface than the collar location, then this can produce numerous “pseudo faults” and rolls in the seam roof and floor surfaces. The structural domains have therefore been developed after validation of the data and utilizing best possible information about geology of the area.
In the Main Padhrar domain, three “Barren Zones” were defined when reviewing the geological data and creating the geological model in the Padhrar Zone Main domain.
The three Barren zones were interpreted around these groups of Barren boreholes based on the distance to the nearby boreholes that had the seam logged in the borehole and the distance to the outcrop of the Makarwal roof and floor contacts.
The South Padhrar domain was further subdivided internally into North-West and South East domains, the North-West area incorporated numerous normal faults that created horst and graben structures, with some indication of further deformation and or tilting sub perpendicular to the graben.
The East Padhrar area is divided into three sub-domains, an upthrust coal block to the east of the main outcrop line, an Eastern area or Padhrar East proper and a fault separated north-north-eastern block.
(ii) Coal Quality Grid Models
Coal quality grid models were developed for a range of parameters in the Padhrar model areas, with the exception of the North-West domain of the East Padhrar zone. Four quality grid models covered the four structural domains. In the South Padhrar’s North West domain a major graben dissects the Makarwal Group which has exposed the Patala formation allowing access for mining operations off the escarpments created by the graben. The faulting and deformation of the coal seams are post depositional. In the Main Padhrar area the coal properties are Page 58 of 69 dependent on variations in mining dilution (e.g. the thicker the seam in the mine samples, the more parting/stone bands affect the quality of the coal), Sulfur variation and the tendency of the Patala Seam group to thin, shale and encounter splitting into plies in the North. The coal quality models that are generated for each domain, allows for greater accuracy in the overall Re- source Estimation and provided a better reflection of the in situ Resource. (iii) Coal Resources The pre-mining estimated in situ tonnes in the deposit were calculated to be 67.82 million tonnes. Previously mined (i.e. ROM coal) from the Padhrar Zone area is approximately 3.44 Mt. This equates to an equivalent in situ tonnage of 4.45 Mt (adb) when accounting for ROM moisture content and free moisture then account- ing for sterilization of coal left in pillars within the previous workings. In the investigation of Mine Sample locations it was determined that this mined tonnage would be deducted across all resource categories of the Padhrar area and the coal inventory area (South Padhrar North West domain). This tonnage has been taken from the Indicated Resource category and equates to a total, in situ Resource of 63.83 million tonnes at an average combined raw ash of 27.29% (adb) and a raw gross calorific value of 5289 kcal/kg (adb). Coal is found at an average depth of about 125 meter. Average seam thickness is 0.40 meter. Table-3 displays the respective tonnages within each Resource category of the Padhrar Area.
Table-3 Summary of Padhrar Estimated Coal Resources
JORC Classification - PA SEAM (Padhrar) Relative Inherent Raw Ash % Raw GCV Tonnes Mt Density Moisture % (air dried kcal/kg (air dried basis gm/cc (air dried basis) (air dried (air dried basis) basis) basis) Measured (Sub-total) 4.28 1.44 3.09 20.79 5760 Previously Mined Coal 1.33 Measured (total) 2.95 1.44 3.09 20.79 5760 Indicated (Sub-total) 17.68 1.48 2.76 24.32 5484 Previously Mined Coal 1.33 Indicated (total) 16.35 1.48 2.76 24.32 5484 Inferred (Sub-total) 45.86 1.54 3.41 28.68 5195 Previously Mined Coal 1.33 Inferred (total) 44.53 1.54 3.41 28.68 5195 TOTAL (in situ Resource) 63.83 1.52 3.24 27.29 5289
(4) CHAMBAL ZONE
This zone is located in the central Salt Range and comprises low altitude hilly terrains with some plain areas in the North-West part of the
Page 59 of 69 zone. The flat terrain is filled with alluvial deposits having an average elevation range of 650-750 meter from mean sea level. The area is connected through metalled roads passing near by the zone which are further connected by a main Pail-Kalar Kahar road to Lahore, Islamabad Motorway. (i) Structural Domains: The structural geology of the Chambal area was of moderate complexity and required the creation of 10 structural domains. Greater structural complexity was observed towards the centre of the area, where the majority of exploration had taken place. It is possible that future exploration of the Chambal Zone will lead to a more detailed understanding of the structural complexity within the larger domains. Where applicable, previously modeled faults were taken from maps of the area and used as guides in creating domain boundaries.
(ii) Coal quality grid models
Although the structural complexity of the modeled area was moderate within the Chambal Zone, coal quality grid models were created for the whole area and not limited to individual domains. Due to the small size of some domains, many were left with too few points of observation to allow for accurate coal quality modeling. The Chambal Zone has multiple coal seams therefore coal thickness (TK) grid models were generated for various seam splits over the entire Chambal Zone. However, areas where the PA seam divided into two or more splits, the thickest split was used as the PA Seam resulting in one seam (PA) being modeled for the Chambal Zone. Coal quality models were then generated for the entire area based on the same principle. Encompassing the entire area within the one model allowed for greater accuracy in the overall Resource Estimation and provided a better reflection of the in situ Resource.
(iii) Coal Resources
The pre-mining estimated in situ tonnes in the deposit were calculated to be 162.0 million tonnes. Previously mined (i.e. ROM coal) from the Chambal Zone area is approximately 5.08 Mt. This equates to an equiva- lent in situ tonnage of 6.55 Mt (adb) when accounting for ROM moisture content and free moisture then accounting for sterilization of coal left in pillars within the previous workings. This tonnage has been taken from the Indicated Resource category and equates to a total, in situ Resource of 155.45 million tonnes at an average combined raw ash of 25.63% (adb) and a raw gross calorific value of 5321 kcal/kg (adb). Coal is found at an average depth of about 150 meter. There are multiple coal seams as well however the workable average seam thickness is 0.60 meter. Table-04 displays the respective tonnages within each Resource category of the Chambal Area.
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Table-4 Summary of Estimated Coal Resources for Chambal Zone
JORC Classification - PA SEAM (Chambal) Relative Inherent Raw Ash % Raw GCV Tonnes Mt Density Moisture % (air dried kcal/kg (air dried basis gm/cc (air dried basis) (air dried (air dried basis) basis) basis) Measured (Sub-total) 8.20 Previously Mined Coal 0.33 Measured (total) 7.87 1.41 3.10 23.11 5614 Indicated (Sub-total) 26.10 Previously Mined Coal 1.06 Indicated (total) 25.04 1.47 2.70 27.85 5110 Inferred (Sub-total) 127.70 Previously Mined Coal 5.16 Inferred (total) 122.54 1.45 2.90 25.35 5344 TOTAL (in situ Resource) 155.45 1.45 2.88 25.63 5321
(5) Dandot Zone
This zone is located in the eastern Salt Range i.e. further south east of the Ara-Basharat Zone comprising over low to medium relief well exposed Eocene limestone strata. The zone is connected through a metalled road from Choa Saiden Shah to Khewra Town. This metalled Road is further connected to Lahore, Islamabad Motor- way via Kalar Kahar Interchange. Average elevation range is from 600-700 meters from the mean sea level. (i) Structural Domains
Based on the current spacing, details of the current drilling and the Geological maps of the Salt Range, the structural geology of the Dandot Zone appeared to be less complex than the other zones. The structure for the East Dandot zone consisted of one domain. It is possible that in the future, if exploration drilling is con- tinued in this area and if modern floor surveys of the coal seam floor of the active underground operations occur, this will provide further detail to support the splitting of the single structural domain. The East Dandot zone was considered to have enough information to develop a geological model. (ii) Coal quality grid models
Coal quality grid models were developed for a range of parameters in the East Dandot model area. Coal thickness (“TK”) grid models were generated for the PA seam splits over the entire Dandot Zone. Areas where the PA seam divided into two or more splits, the thickest split was used as the PA seam resulting in one seam (“PA”) being modeled for the Dandot Zone. Coal quality models were then generated for the entire zone. This allowed for greater accuracy in the overall Resource Estimation and provided a better reflection of the in situ Resource.
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(iii) Coal Resources
The pre-mining estimated in situ tonnes in the deposit were calculated to be 11.67 Mt. (adb). Previously mined (i.e. ROM coal) from the Chambal Zone area is approximately 2.64 Mt. This equates to an equivalent in situ tonnage of 3.40 Mt (adb) when accounting for ROM moisture content and free moisture then accounting for sterilization of coal left in pillars within the previous workings. This tonnage has been taken from the Indicated Resource category and equates to a total, in situ Resource of 8.47 Mt. (adb) at an average combined raw ash of 33.29% (adb) and a raw gross calorific value of 4652 kcal/kg (adb). Coal is found at an average depth of about 120 meter. Average seam thickness is 0.50 meter. Table-05 displays the respective tonnages within each Resource category of the Dandot East Area.
Table-5 Summary of Dandot East Estimated Coal Resources
JORC Classification - PA SEAM (Dandot East) Relative Inherent Raw Ash % Raw GCV Tonnes Mt Density Moisture % (air dried kcal/kg (air dried basis gm/cc (air dried basis) (air dried (air dried basis) basis) basis) Indicated (sub-total) 3.84 1.63 3.96 33.95 4593 Previously Mined Coal 1.60 Indicated (total) 2.24 1.63 3.96 33.95 4593 Inferred (Sub-total) 7.83 1.61 4.13 32.99 4679 Previously Mined Coal 1.60 Inferred (Total) 6.23 1.61 4.13 32.99 4679 TOTAL (in situ Resource) 8.47 1.61 4.08 33.29 4652
E- INVENTORY COAL ESTIMATES
Inventory coal have been estimated for the areas where drilling was not possible due to difficult access to the unapproachable hilly terrains. The areas are coal producing and mining activity is continuing depicting sufficient future coal prospects.
However, to satisfy the requirements of a coal resource using the JORC code (2003), the requisite boreholes data is required to generate sufficient confidence. In part this lack of sufficient confidence is due to the fact that the areas that were identified as containing the Inventory coal classification dominantly utilized mine samples without a sufficient density of boreholes.
(i) Dandot Zone - Dandot West
The Dandot West area consisted of a coal block that had the Makerwal Group outcrop geologically mapped (i.e. roof and floor of the Makerwal Group were defined) with three mine samples at a spacing that would support an inferred inventory coal classification. The thickness utilized was from an average of the three boreholes. The qualities where reported form a weighted average of the quality against the thickness of each sample that was analyzed to generate the quality. No modifications were made for previous mining to the Dandot West Inferred Coal Inventory Classification. The total ROM tonnes mined were converted to air dried tonnes and deducted fully from the coal resource that was defined in the Dandot East model area. The deduction of the reported historically mined coal was
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considered the most conservative approach to ac- counting for the mined coal in the Dandot area. The Dandot West Inferred Coal Inventory results are reported below in the Table-6 and are summarized with the Dandot East Resources in Table-5.
Table-6 Summary of Estimated Inventory Coal for Dandot West
Inventory Coal Classification - PA SEAM GROUP (Dandot West) Relative Inherent Raw Ash % Raw GCV Tonnes Mt Density gm/cc Moisture % (air dried kcal/kg (air dried basis (air dried (air dried basis) (air dried basis) basis) basis) Inventory Coal 0.64 1.56 1.79 30.76 3668 Previously Mined Coal 0.20 TOTAL (in situ inventory coal) 0.44 1.56 1.79 30.76 3668
(ii) Padhrar Zone – South Padhrar’s North West domain
The pre-mining estimated in situ tonnes in the deposit were calculated to be are 8.44 Mt (ad). Previously mined (i.e. ROM coal) coal is approximately 3.44 Mt. This equates to an equivalent in situ tonnage of 4.45 Mt (adb) when accounting for ROM moisture content and free moisture then accounting for sterilization of coal left in pillars within the previous workings. In the investigation of Mine Sample locations it was determined that this mined tonnage would be deducted across all resource categories of the Padhrar area and the coal inventory area (South Padhrar North West domain). Therefore of the 4.45 Mt (adb) tonnes only 3.99 Mt (adb) had been deducted from the resource classification and 0.46 Mt (adb) had been deducted from the coal inventory classification. The calculation of air dried mined tonnage was subtracted from the Indicated and Measured resource categories via a weighting based on the tonnages of each resource category in the zone. The primary concern was not the thickness or quality of the coal in this area; it was the structural distribution of the coal from post deformation structures. A major graben dissects the Makarwal Group, which has exposed the Patala formation allowing easy access for mining operations off the escarpments created by the graben. The total remaining in situ coal inventory is 7.98 Mt (ad) at an average combined raw ash of 23.65% (adb) and a raw gross calorific value of 5650 kcal/kg (adb). Table-7 displays the respective tonnages of inventory coal for the Padhrar Area. Table-7 Summary of Estimated Inventory Coal for Padhrar
Inventory Coal Classification - PA SEAM Group (South Padhrar North West Domain) Tonnes Mt Raw Ash % (air Raw GCV kcal/kg (air dried basis dried basis) (air dried basis) Inventory Coal 8.44 23.65 5650 Previously Mined Coal 0.46 TOTAL (in situ Resource) 7.98 23.65 5650
(iii) Trans Indus Zone
The pre-mining estimated in situ tonnes in the deposit were calculated to be are 123.10 Mt (adb). Previously mined (i.e. ROM coal) coal is Page 63 of 69
approximately 7.28 Mt. This equates to an equivalent in situ tonnage of 9.41 Mt (adb) when accounting for ROM moisture content and free moisture then accounting for sterilization of coal left in pillars within the previous workings. The calculation of air dried mined tonnage was subtracted from the Inventory Coal within the zone. The total remaining in situ coal inventory is 113.69 Mt (adb) at an average combined raw ash of 28.82% (adb) and a raw gross calorific value of 4587 kcal/kg (adb). The process used to generate these resources followed industry best practice, the JORC Code (2004) and the coal estimation guidelines (2003). Average seam thickness is 1.25 meter. Table-8 displays the respective tonnages for the Inventory Coal of the Trans Indus Zone. Table-8 Summary of Estimated Inventory Coal for Trans Indus (Hangu A & B)
Inventory Coal Classification - PA SEAM Group (Trans Indus) Relative Tonnes Mt Inherent Raw Ash % Raw GCV Density (adb) Moisture % (adb) kcal/kg gm/cc (adb) (adb) (adb) Inventory Coal Sub-Total) 123.10 1.53 2.02 28.82 4587 Previously Mined Coal 9.41 Inventory (Total) 113.69 1.53 2.02 28.82 4587 TOTAL (in situ Resource) 113.69 1.53 2.02 28.82 4587
(iv) Jhelum Zone
The pre-mining estimated in situ tonnes in the deposit were calculated to be 32.20 Mt (adb). Previously mined (i.e. ROM coal) coal is approximately 0.79 Mt. This equates to an equivalent in situ tonnage of 1.02 Mt (adb) when accounting for a ROM moisture content and free moisture then accounting for sterilization of coal left in pillars within the previous workings. The calculation of air dried mined tonnage was subtracted from the Inventory Coal within the zone. The total remaining in situ coal inventory is 31.18 Mt (adb) at an average combined raw ash of 29.60% (adb) and a raw gross calorific value of 4915 kcal/kg (adb). Coal is found at an average depth of about 65 meter. Average seam thickness is 0.75 meter. Table-9 displays the respective tonnages for the Inventory Coal of the Jhelum Zone. Table-9 Summary of Estimated Inventory Coal for Jhelum (Patala F m)
Inventory Coal Classification - PA SEAM Group (Jhelum) Tonnes Mt Relative Density Inherent Raw Ash % (air Raw GCV kcal/kg (air dried basis) Moisture % dried basis) (air dried basis) gm/cc (air dried (air dried basis) basis) Inventory Coal Sub-Total) 32.20 1.54 1.99 29.60 4915 Previously Mined Coal 1.02 Inventory (Total) 31.18 1.54 1.99 29.60 4915 TOTAL (in situ Resource) 31.18 1.54 1.99 29.60 4915
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F- ASH FUSION TESTS
Ash Fusion tests were carried out on 12 coal samples from different boreholes and mines within the area under the study zones. These were processed at the SGS Laboratory in Karachi. The ash fusion results for the Dalwal Zone have an average of 1220ºC for the Initial Deformation Temperature, 1310ºC for the Spherical Deformation Temperature, 1338ºC for the Hemi- Spherical Deformation Temperature and 1380ºC for the Flow Deformation Temperature. All the Dalwal Zone ash fusion samples had deformation temperatures that were over 1100ºC.
Following table-10 gives a summary of the Dalwal boreholes and mines on which Ash fusion tests were applied. Table-10 Ash Data Summary – Dalwal Zone Borholes and Mines Samples
Boreholes Sample No. Initial Deformation Spherical Deformation Hemi Spherical Flow Deformation Samples Temperature (ºC) Temperature (ºC) Deformation Temperature (ºC) Temperature (ºC) DZ-26 8 1252 1281 1302 1335 DZ-33 5 1120 1283 1316 1377 DZ-45 2 1108 1144 1185 1288 DZ-47 2 1104 1158 1246 1299 MDZ-26 1 1324 1402 1410 1432 MDZ-30 1 1244 1291 1318 1357 MDZ-63 1 1385 1548 1550 1550 MDZ-64 1 1223 1371 1378 1398 Average 1220 1310 1338 1380
Table-11 Ash Fusion Data Summary – Ara Basharat Chambal, Padhrar And Dandot Zones
Boreholes Samples Mine Sample Sample Initial Spherical Hemi Spherical Flow Deformation No. Deformation Deformation Deformation Temperature (ºC) Temperature (ºC) Temperature (ºC) Temperature (ºC) Ara Basharat MABZ-02 1 1310 1377 1379 1393 Chambal MCZ-49 1 1285 1385 1387 1396 Padhrar MPZ-54 2 1369 1454 1458 1462 Dandot MDNZ-12 1 1328 1388 1398 1409
The Ara Basharat, Chambal, Padhrar and Dandot Model Zones each had a single ash fusion sample that underwent analysis and are summarized in Table 11. Each of these ash samples had deformation temperatures of over 1100ºC. Page 65 of 69
CONCLUSION
The Government of the Punjab plans to use its coal resources to cope with the acute energy shortage in the Province by installing coal-fired power plants. Currently coal mining activities are concentrated in the Eastern and Central portion of the Salt Range and Makerwal area of Trans Indus Range. The anticipated coal deposits of the Punjab estimated at 235 million tones in 1984-88 are re- authenticated (in 2010-12) by SNOWDEN, an Australian Consulting firm using “Mineral Resources and Ore Reserves, 2004 (“The JORC Code, 2004”) and the Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves, 2003 Edition (“The Coal Guidelines”). SNoWDEN has developed a Resource Estimate for the various zones within the Salt range and inventory coal estimates for Trans Indus Range (Makerwal) and Jhelum (Jogi Tilla). Ash fusion tests of the coal indicate that in all likelihood there will be no problem with this coal for utilization in power generation. Table-12 summarizes the Coal Resource for each model area and Table-13 summarizes the estimation of inventory coal.
Table-12 Summary of estimated Coal Resources (Salt Range)
JORC Classification (adb) Remaining in Measured Indicated Inferred Model Area situ Resource Resource Resource Resource (Mt) (Mt) (Mt) (Mt) Dalwal 143.50 139.01 5.91 45.4 87.7 Ara Basharat 80.10 76.86 2.21 16.99 57.66
Dandot 11.67 8.47 N/A 2.24 6.23 Padhrar 67.82 63.83 2.95 16.35 44.53
Chambal 162.00 155.45 7.87 25.04 122.54 Totals (Mt) 465.09 443.62 18.94 106.02 318.66
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Table-13 Summary of estimated Inventory Coal (Salt Range)
Inventory Coal (air dry basis)
Remaining in situ Raw Ash (%) GCV (kcal/kg) Model Area Resource (Mt) Dandot West 0.64 0.44 30.76 3668 South Padhrar – 8.44 7.99 23.65 5650 North West Domain (Pat) Trans-Indus (Han 123.10 113.69 28.82 4587 A&B) Jhelum (Pat) 32.20 31.18 29.60 4915
Totals (Mt) 164.38 153.30 - -
TOTAL COAL RESOURCES AND INVENTORY ESTIMATES
Coal Resource Estimates = 443.62 Mt Inventory Coal Estimates = 153.30 Mt Total Estimates = 596.92 Mt
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Salt Range modeled zones for coal resource estimations.
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