Executive Summary

PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

EXECUTIVE SUMMARY

1.0 INTRODUCTION

1.1 BACKGROUND OF THE PROJECT REPORT

Batura UG Geological Block is a virgin block located in Sohagpur Coalfield on the eastern side of Son river. It falls under the administrative control of Sohagpur Area, SECL. The closest operating project to this block is Sharda Highwall Project located in Bokaho Block immediately west of Son river.

Area of Batura UG Block is around 4.56 sq. km and it contains only one potential seam having thickness ranging from 0.38m to 2.05m. The geological reserves in the block are only 5.6417 Mt. The maximum depth of coal seam in the block is 65m. In view of low seam thickness and limited geological reserves, this block was all along identified for underground mining. The geological reserves in thickness range +1.5m are only 1.25 Mt in this block. Therefore this block is not suitable for underground mining also.

Highwall Mining, which is hybrid of opencast and underground mining, is being practiced with reasonable success at Sharda Highwall Project. The geo-mining conditions in Batura UG Block are conducive for deployment of Highwall Mining. The scope for deployment of highwall mining in the block was assessed by CMPDI officials and pre-feasibilty report submitted vide letter no. CMPDI/HQ/UMD/2060 dated 21/08/2014.

Based on the above pre-feasibilty report, SECL asked CMPDI, Bilaspur to prepare a Feasibilty Note on deployment of Highwall Technology in Batura UG Block. The Feasibilty Note was discussed at CMPDI HQ as well as SECL. Since the project was found to be financially viable, it was decided to prepare the Project Report for Batura Highwall Project. Draft Project Report for Batura Highwall Project was submitted in December 2014. The report was discussed in the Planning Committee Meeting at SECL HQ on 10th and 12th January 2015 (minutes of meeting enclosed as Annexure – III).

The revenue plan received vide letter no. SECL/SGP/PLG/5/15/262 dated 11th February 2015 (refer Annexure – IV) has been digitized and reproduced in Plate No. VIII. Capital provision for land acquisition and R&R has been made based on data supplied by Sohagpur Area vide letter no. SECL/SGP/GM/Secy/5/14/231 dated 20th December 2014, revenue plan supplied vide letter dated 11th February 2015 and additional information received vide fax dated 18th February 2015.

The western boundary of Rampur Batura OCP and eastern boundary of Batura Highwall Project are overlapping (width of overlap is varying from 120m to 175m). In this report capital provision for acquisition of the overlapping area has not been made since the same has been accounted for in the PR for Rampur Batura OCP. Same logic has been applied while calculating the mine closure cost.

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1.2 EXPLORATION STATUS

107 boreholes involving 7067.80m of drilling were drilled by CMPDI in Batura UG Geological Block. Of these 107 boreholes, 62 boreholes involving 3421.50m of drilling were drilled within the block and remaining 45 boreholes were drilled outside the block.

The borehole density works out to 13.60 BHs/km2 considering 62 boreholes drilled within the geological block having area 4.56 km2.

The area considered for mining in Batura UG Block is restricted to the aerial extent of Seam – II only excluding the area lying below forest. This works out to 3.60 km2. In this area total 56 boreholes were drilled. The borehole density works out to 16 BH/ km2.

Three coal seams, viz. Seam-III T and Seam – III B, Seam-II & Seam-I occur in Batura UG block in descending order. Out of these three coal seams, only Seam-II has been found to occur throughout the block, with persistent and workable thickness (+0.75m), incropping in the southern part and trending in east-west direction. Seam I, III T and III B occur impersistently in the block having general thickness of less than 0.75m and therefore not considered for reserve estimation. In addition to the aforesaid coal seams, local coal bands have developed above Seam-II & I and named as L1 & L2 respectively. The local band L1 occurs only in three boreholes and local band L2 has developed with thickness range 0.30m to 0.78m only in seven isolated boreholes, hence not considered for assessment of coal reserves.

The geological reserves in Seam – II in Batura UG Geological Block have been assessed as 5.6417 Mt in +0.75m thickness range. The geological reserves in Seam – II in Batura UG Mining Block have been assessed as 5.5647 Mt in +0.75m thickness range.

1.3 JUSTIFICATION FOR TECHNOLOGY

Due to availability of limited geological reserves (5.6417 Mt), high stripping ratio (+25 m3/t) and presence of surface features (tarred road, Jamuniya Nalla, pond, 4 nos. villages, 132 kV OHT lines and Forest) an independent opencast mine is not being proposed in Batura UG Block.

Although the block was identified for underground mining, the geological reserves in +1.5m thickness range are only 1.25 Mt. For these meagre reserves opening an independent underground mine will not be feasible.

This block cannot be annexed to the adjacent Batura West Extension Block due to presence of fault F1-F1 of 35m throw and dyke D3. Therefore, underground mining is ruled out in Batura UG Block.

Job No. 517274 Page - ii Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

Highwall Mining is being practiced with reasonable success in nearby Sharda Project since 2011 on total hiring basis. Highwall mining is being proposed in Batura UG Block. Highwall Mining is possible in seam thickness +0.75m to 3.05m and is suitable for low thickness shallow deposits having nearly flat gradient. The geo-mining conditions in Batura UG Block are conducive for deployment of Highwall Mining, therefore this technology has been shortlisted for Batura UG Block.

Highwall Mining is being practiced in only two mines in India. In both these mines, the technology has been deployed on total hiring basis including detailed planning, engineering and design of trenches and highwall panels. No experience of detailed design of highwall panels, operation and maintenance of highwall miner and the cost parameters involved in highwall technology are available in CIL.

Since till date this technology has not been deployed in any mine departmentally and there is insufficient field experience as regards planning and design of highwall faces, scientific studies to be carried out before and during highwall operations and operation and maintenance of Highwall package, this PR only depicts the total hiring option wherein the technology shall be deployed on hiring basis. For calculating the economics, the scope of work and commercial terms and conditions of Sharda Highwall Contract have been adopted in totality.

1.4 NECESSITY OF THE PROJECT REPORT

The demand for coal is increasing by the day and CIL has to achieve stiff targets in order to meet the ever growing energy needs of the country. SECL being the leading producer of coal for CIL, has to take the onus for steep increase in production.

In this scenario, Batura UG Block has been identified for Highwall Mining. The selection of this Block is justified on the following counts:

(a) The thin seam(s) cannot be extracted profitably by underground methods and opencast mining inspite of being financially viable may not take-off due to presence of surface features. In order to conserve coal and simultaneously extract thin seam, Highwall Mining is a technically, financially and environmentally suitable option.

(b) Railway Siding proposed for Rampur Batura OCP has a designed capacity of 6.0 Mty. This siding shall operate at optimum capacity when it deals with the additional coal of Batura Highwall Project after making arrangement for two quality dispatch.

1.5 SALIENT FEATURES OF PROJECT REPORT

Proposed boundary of Batura Highwall Project is defined by the following features:

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North Trace of Bamhani-Chilpa fault passing in between borehole no. CSBT-268 & 315, CSTB-271 & 444, CSBT-258 & 371, CSBT-253 & 308, CSBT-331 & 440, CSBT-265 & 363 and CSBT-237 & 270. South Dyke D - 3 and arbitrary line between incrop of Seam – II and fault F1-F1. East Western boundary of Batura Extension block. West Arbitrary line between boreholes CSBT-442 and 432 running parallel to eastern bank of Son river.

At some places the northern boundary is going beyond Bamhani-Chilpa fault in order to accommodate the 100m wide safety zone. Only Seam – II has been considered for exploitation in Batura Highwall Project.

Geological Reserves - 5.5647 Mt Extractable Reserves - 2.75 Mt

Capital provision for acquisition of 420.975 ha land (including land for R&R site) has been made in the PR. Besides the cost of land, compensation in lieu of job and resettlement and rehabilitation cost of 582 PAFs has also been considered in the PR.

Highwall Mining is a zero subsidence method of mining and damage to surface area is restricted to trenchs, OB dumps and land required for infrastructure. Although capital provision for village shifting and R&R has been made, the PR does not contemplate any village shifting or R&R activity. The highwall panels have to be designed accordingly.

Highwall Mining technology is proposed in Batura UG Block. Trench mining shall be carried out using the Highwall Miner Package. The trenches shall be prepared by open excavation method involving drilling, blasting, mucking and transportation of OB and coal to the pre- decided dumps / stock. Coal shall be extracted by driving cuts at right angles to the trench face using the Highwall Miner. The cut coal shall be transported to railway siding by trucks.

The target capacity of Batura Highwall Project has been envisaged as 0.50 Mty. The peak capacity is likely to be 0.675Mty. The mine shall be operated on total hiring basis. The scope of work of out-sourcing agency and SECL shall be same as that agreed at Sharda Project. The total capital requirement has been estimated as Rs. 231.9209 crores. The project is yielding 30.84% IRR at 85% level of capacity utilization if the out-sourcing is Rs. 1212.26/t of out-sourced coal excluding service tax considering the sale price of GCV band G4, processing charges and transportation charges.

1.6 DIFFICULTIES & CONSTRAINTS IN MINING WITH ASSOCIATED RISK

a) Obtaining EMP Clearance and acquisition of tenancy land under All Rights will be the most important activities to be completed before implementing the PR provisions. Capital provision for hydrogeological studies, scientific studies and continuous monitoring of strata before and during implementation of highwall technology and land use survey by remote sensing has been made in the report.

b) Highwall Packages available in the international market operate at 60Hz frequency. For use in Indian coal mines the electrical features will have to be modified by the manufacturers.

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c) Process of Global Bidding for selection of out-sourcing agency will have to be culminated simultaneously. Hiring cost of Highwall package would depend upon the rates quoted and accepted in the tender process. This will have a direct bearing on the economics of the project. Within the projected parameters, the hiring rate has to be restricted to Rs. 1600/t of out-sourced coal (including trench coal) for the project to remain financially viable.

d) The productivity of highwall miner is based on the agreed minimum production capacity committed by the out-sourcing agency in case of Sharda Highwall Project. In case the envisaged productivity is not achieved, the economics of the project shall be negatively affected.

e) The extractable reserves shown in this report are for estimation of economics of PR only. Detailed engineering and design of highwall trenches and panels is in the scope of the out-sourcing agency. The location and alignment of trenches and highwall panels as shown in Plate No. VII may vary resulting in increase or decrease in extractable reserves. Within the projected parameters, the project remains financially viable even if the extractable reserves reduce to 2.1 Mt.

2.0 MARKETABILITY & JUSTIFICATION

2.1 DEFICIT IN AVAILABILITY OF COAL FROM COMPANY

Following table shows the deficit in availability of coal from the Projects of SECL:

(Fig. in Mt) Sl. No. PARAMETER YEAR 2014-15 2015-16 2016-17 1. Demand for coal 269.67 269.97 270.37 2. Availability of coal 125.00 135.00 150.00 3. Surplus/Deficit (+/-) (-) 144.67 (-) 134.97 (-) 120.37

It may be seen from the above table that the total demand as projected for the year 2014- 15 is 269.67 Mt. The projected production in the year 2014-15 is 125.00 Mt resulting into a shortfall of 144.67 Mt. The demand projection for the year 2016-17 is 270.37 Mt. The shortage in the year 2016-17 is projected as 120.37 Mt. Most of the demand is for power grade coal.

2.2 UTILITY / MARKET FOR THE COAL FROM THE MINE

The coal produced from Batura Highwall Project shall be utilized by power houses of NTPC or Chhattisgarh State or by miscellaneous consumers.

2.3 JUSTIFICATION AND MARKETABILITY

From the above table, it is clear that the deficit in supply of coal from SECL as a whole is in excess of 120 Mt during the XII Plan Period. New mines/ projects have to be opened or operating mines re-organised with higher level of mechanization by SECL in order to meet the ever increasing demand. The success of the technology proposed for this mine will be a path breaking effort, which could result in large low thickness coal deposits being extracted. This technology is a necessity for shallow, low thickness and flat coal seams. Job No. 517274 Page - v Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

3.0 PROJECT SITE INFORMATION

The Batura UG Geological Block is located in the western part of Sohagpur Coalfield on the eastern bank of Son river and lies about 20 km north of Anuppur town and about 50 km southeast of Shahdol, the district headquarter. The block area is covered in the Survey of India Toposheet No. 64 E/12 (RF 1:50,000). The limiting geographic co-ordinates of the block are as under:

Latitude: 23° 13' N to 23° 14' N, Longitude: 81° 37' E to 81° 41' E

The area is well connected by rail and road. The Bilaspur- Katni branch line of S.E. Railway passes mostly through south of Sohagpur Coalfield. Anuppur is a Junction from where the Anuppur-Chirimiri & Anuppur-Bisrampur lines branch-off, and is about 20 km. south of present block. Nearest railhead is Burhar around 15.0 km from the block. A metalled road, branching off from Shahdol - Manendragarh National Highway No.78 at a distance of approx. 5 km in the west near north of Burhar No.1 mine, runs almost south to northeast direction and through the eastern part of the block.

The block is gently undulating with high ground in the northeastern part and exhibits a gentle rolling topography with general slope towards west. Son river is flowing northward adjacent to western boundary of the block. The elevations in the block vary between 475m to 449m above MSL. The Jamuniya Nala is flowing west to east along southern boundary of the block and finally discharges into Son river. Smaller hillocks capped by dolerite dyke with roughly east west trend is present in the southern part of the block. Area near boreholes CSBT-331, 247, 265 & 445, near northeastern boundary of the block is covered by forest and forms 50m high hillock.

Son river forms the main drainage of the area. The High Flood Level (HFL) of Son river is 449.10m, 448.80m and 457.12m recorded by Sharda Project authorities at different locations on western bank of Son river. HFL of Son river along the eastern bank and of Jamuniya nalla have to be determined before implementing this project.

Batura UG Geological Block has forest as well as tenancy and Government land within the proposed boundary. Four villages, namely, Bichchiya, Batura, Khamroudh and Khairbana are located above the Project. There are single storeyed houses constructed in Bichchiya village. A metalled road branching from NH-78 passes over the Project area. Jamunia Nalla flows over the Project area. Two nos. 132 kV OHT lines also pass over the western side of the Project area.

4.0 GEOLOGY & COAL SEAMS

The present assessment is based on Geological Report on Coal Exploration, Batura UG Block, Sohagpur Coalfield, district Shahdol (M.P.) prepared by CMPDI, RI:V, Bilaspur in December 2009. The rocks present in the block are in general not very hard and compact. Medium to coarse grained sandstones are found below weathered mantle. However, a thick layer of running sand is found to occur below the weathered mantle zone at some places.

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4.1 STRIKE, DIP & GEOLOGICAL DISTURBANCES

The strata including coal seams show a broad E-W trend in the southern part of the block. However, in the northern part of the block the strike swings to almost N-S direction. The strata, in general, shows northerly dips with gradient 1 in 20 to 60 (10 to 30). The dip of the strata varies from 10 to 30.

No faults have been encountered within the block. Trace of Bamhani-Chilpa fault forms the northern boundary of the block. Only one dyke is present in the southern part of the block and forms the southern boundary of the block. The trend of the dyke is approximately East-West marked as Dyke - 3. Nowhere the effect of dyke such as heating / devolatisation is encountered.

4.2 SEQUENCE OF COAL SEAMS

A study of drill hole data reveals presence of three coal seams viz. Seam-III T, Seam – III B, Seam-II & Seam-I in the Batura UG Block in descending order. Out of these three coal seams, only Seam-II has been found to occur throughout the block, with persistent and workable thickness (+0.75m), incropping in the southern part and trending in east-west direction. Seam I & III occur impersistently in the block having general thickness of less than 0.75m and therefore not considered for reserve estimation. In addition to the aforesaid coal seams, local coal bands have developed above Seam-II & I and named as L1 & L2 respectively. The local band L1 occurs only in three boreholes and local band L2 has developed thickness range 0.30m to 0.78m only in seven isolated boreholes, hence not considered for assessment of coal reserves.

Sequence of Coal Seams with their Thickness & Parting Range, Batura UG Block

Coal Seam Thickness range(m) Generalised No.of inter- Remarks Name/Parting Min. Max. thickness range(m) sections (full seam) Seam-IIIT 0.05 0.45 0.12 - 0.38 19 Not considered due to low (CSBT-360) (CSBT-271) thickness

Parting 1.5 3.3 1.96 - 3.1 (CSBT-250) (CSBT-249) Seam-IIIB 0.10 0.68 0.17 - 0.47 24 Not considered due to low (CSBT-323) (CSBT-331) thickness

Parting 29.94 30.97 29.73 - 31.19 (CSBT-364) (CSBT-239) Local band L1 1.35 1.72 1.33 - 1.71 3 Not considered due to less (CSBT-274) (CSBT-364) boreholes & low thickness

Parting 1.15 3.04 0.90 - 2.90 (CSBT-274) (CSBT-364) Seam-II 0.38 2.05* 0.78 - 1.50 56 Considered for Mining (CSBT-312) (CSBT-274) Parting 6.23 12.95 6.33 - 10.53 (CSBT-364) (CSBT-432) Local Band L2 0.30 0.78 0.42 - 0.76 7 Not considered due to less (CSBT-360) (CSBT-364) boreholes & low thickness

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Coal Seam Thickness range(m) Generalised No.of inter- Remarks Name/Parting Min. Max. thickness sections (full range(m) seam) Parting 3.15 6.46 3.27 - 6.57 (CSBT-432) (CSBT-358) Seam-I 0.10 1.0 0.23 - 0.69 36 Not considered due to (CSBT-258) (CSBT-279) low thickness

* For preparing the Seam Folio Plan of Seam – II, the effective thickness 3.84m of Seam-II in B.H. No. CSBT-294 has been considered as it is falling on the periphery of the adjacent Batura Extension Block on the eastern side. Due to this reason, isochore lines beyond 2.05m have been shown in the Seam Folio Plan of Seam – II although the maximum thickness encountered in Batura UG Block is 2.05 m.

4.3 DESCRIPTION OF SEAM – II

Seam – II occurs at a depth of 5.15m (CSBT-266) from the surface in the south-central part of the block and at a maximum depth of 63.95m (CSBT-237) in the north-eastern part of the block.

The thickness of Seam – II varies from 0.38 (CSBT-312) to 2.05m (CSBT-274). But the influence of thickness 3.84m of Seam-II encountered in B.H. No. CSBT-294 falling on the periphery line between Batura UG Block and Batura Extn. Block has been considered for drawing Seam Folio Plan of Seam - II. The eastern adjacent block of Batura UG is Batura Extn. Block.

The seam incrops all along in the southern part trending E-W along CSBT-266, 269, 306 & 255. The position of incrop has been shown below the weathered mantle.

The immediate roof of Seam - II consists predominantly of sandy shale and fine/ medium grained sandstone with occasionally intercalation bands. However, roof of the seam upto 3m consists predominantly of medium to coarse grained sandstone. The immediate floor of Seam - II consists predominantly fine to medium grained sandstone with shale/sandy shale at places.

Gross Calorific Vaue of Seam – II varies from 4971 to 6880 kCal/kg for I30 samples. The weighted average GCV works out 6342 kCal/kg, i.e. GCV band G4.

4.4 GEOLOGICAL RESERVES

Out of three coal seams, viz. Seam - III, II & I and two local bands L1 & L2, only one seam, viz. Seam - II occurs over a large area and has attained workable thickness within the block area. Hence for reserve calculation, only Seam - II is considered wherever their thickness is more than 0.75m (workable thickness) irrespective of grade.

A total of 5.64 Mt of proved reserves of coal have been estimated in Batura UG Block. These includes 4.68 Mt (83%) of superior grade coal (G2 - G4) and 0.96 Mt (17%) coal of inferior grade (G5 – G8). All coal reserves are within 100.0m depth line and in proved category.

Job No. 517274 Page - viii Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI Seamwise, Gradewise ‘Net’ Proved Geological Reserves in Batura UG Block, Sohagpur Coalfield

(Figures in Mt) GRADE WISE RESERVES TOTAL SEAM G8 G7 G6 G5 G4 G3 G2 RESERVE

SEAM-II 0.0842 0.2715 0.3042 0.3015 1.0801 3.4411 0.1591 5.6417

In the PR, area below forest has been excluded from the project boundary. Due to this the geological reserves have reduced marginally and the same are tabulated as under:

Seamwise, Gradewise ‘Net’ Proved Geological Reserves in Batura Highwall Project, Sohagpur Area, SECL

(Figures in Mt) GRADE WISE RESERVES SEAM TOTAL RESERVE G8 G7 G6 G5 G4 G3 G2

SEAM-II 0.0842 0.2715 0.3042 0.2938 1.0334 3.4185 0.1591 5.5647

Seam-wise, Thickness-wise, Grade-wise ‘Net’ Proved Geological Reserves, Batura Highwall Project, Sohagpur Area, SECL

(Figures in Mt)

THICKNESS GRADE WISE RESERVE TOTAL RANGE (m) RESERVE G8 G7 G6 G5 G4 G3 G2

0.75-0.90 0.0003 0.0122 0.0202 0.0144 0.3558 0.0129 0.4158

0.90-1.20 0.0136 0.0447 0.0488 0.1224 0.3273 1.4296 0.1137 2.1001

1.20-1.50 0.0415 0.0585 0.1225 0.0432 0.3831 1.1231 0.0258 1.7977

1.50-1.80 0.0074 0.0626 0.0509 0.0187 0.0607 0.3365 0.0067 0.5435

1.80-2.00 0.0077 0.0325 0.0061 0.0104 0.0746 0.132 0.2633

2.00-2.50 0.014 0.0351 0.0191 0.0251 0.0621 0.0415 0.1969

2.50-3.00 0.0231 0.0191 0.019 0.0729 0.1341

3.00-3.50 0.0137 0.0153 0.0188 0.0364 0.0842

3.50-4.00 0.001 0.0102 0.016 0.0019 0.0291

TOTAL 0.0842 0.2715 0.3042 0.2938 1.0334 3.4185 0.1591 5.5647 RESERVE

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4.5 HYDROGEOLOGY

Projected Mine inflow calculation Based on Darcy’s law (i.e. Q= KIA), the groundwater inflow from different Trench faces were predicted. In these estimates, a maximum permeability of 2.0 m/d for the reclaimed area and unconfined aquifer (Barakar Formation) was considered. For the unconfined aquifer the hydraulic gradient similar to the overall hydraulic gradient of the study area i.e. 0.02 has been considered. In lower aquifers, a comparatively low permeability varies from 0.61m/day to 0.4m/day and hydraulic gradient of 0.01, which is similar to the generalized dip of the formations (horizontal dipping). The mine inflow of 13,820 cum/day (i.e. 2105 GPM) is prognosticated from the groundwater of the proposed Batura Highwall Project. However, with the spatial variation in aquifer parameters and recharge, the observed inflow will slightly deviate from the calculated.

5.0 MINE BOUNDARY, RESERVES & MINE LIFE

5.1 MINE BOUNDARY

Proposed boundary of Batura Highwall Project is defined by the following features:

At some places the northern boundary is going beyond Bamhani-Chilpa fault in order to accommodate the 100m wide safety zone. Project area is nearly 4.20 km2. The workable area in Seam – II is 3.60 km2. The strike length is varying from 1.50 km to 3.35 km and the dip extent is varying from 0.80 km to 1.70 km.

5.2 RESERVES

(i) Minimum thickness of hard rock cover from the roof of the seam has been kept at 8m at the shallow limit of extraction.

(ii) Maximum length of cut from the trench bottom has been kept as 305 m.

(iii) Full extraction below all surface features has been considered for extraction.

(iv) Full seam thickness is proposed for extraction.

(v) The percentage of extraction of coal by Highwall Mining depends on the thickness of the coal, depth of cover and strength of the coal and length of highwall cuts.

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The thickness of the coal ranges from 0.75 to 2.50m, average will be 1.5m and depth of cover varying from 8-65m and average 35m. The percentage extraction of coal shall vary from 50 to 60% of the mineable reserves.

Following table shows the seam-wise net geological, mineable and extractable reserves (greater than 0.75 m thickness) in Batura Highwall Project: (Figs. in Mt) Seam Net Geological Mineable Mining Total Geological Losses Reserves Losses Extractable Reserves Reserves Seam - II 5.57 0.32 5.25 2.50 2.75

5.3 TARGET CAPACITY & MINE LIFE

Since the economics of this Project Report has been worked out based on the scope of work and commercial terms and conditions of Sharda Contract, The target capacity of Batura Highwall Project has also been envisaged as 0.50 Mty. Total life of the project is 8 years. Construction period shall be 2 years. Production build up period shall be 1 year. Target production period shall be 5 years. The overall grade of dispatch of coal from Batura Highwall Project will be GCV band G4 with a weighted average GCV of 6342 kCal/kg.

6.0 MINE ENTRIES

Two nos. trenches are proposed to be driven from surface upto the floor of Seam – II and subsequently along Seam – II upto the boundaries. The details of trenches are tabulated as under:

Trench Length Width Width at Volume Quantum Gradient Slope (km) at Surface of OB of Coal (degree Floor (m) (Mm3) (Mt) s) (m) T-1 1.50 35 55 to 4.95 0.08 1 in 16 from 45 165 surface to seam T-2, 2A 3.65 35 55 to 6.86 0.20 floor and seam 45 & 2B 160 gradient in direction of drivage

The purpose of trenches is to provide access to the coal seam from surface and also accommodate the Highwall Equipment package and associated loading and transport equipment. The width of Highwall Miner is 18m. In order to accommodate the miner and provide sufficient space for movement of dump trucks for coal and OB transport, minimum 30m width is required. The width of trenches proposed in this PR is 35m.The in-bye end of the trench shall be kept atleast 150m ahead of the highwall miner if controlled blasting techniques are adopted for trench drivage. Else, the minimum distance shall be 300m. OB excavated from trench T-2 shall be dumped at the external OB dump-1. OB dump-2 shall be commissioned after highwall cuts have been completed below the proposed dump. The trenches shall be back-filled with OB after highwall cuts have been completed. OB of trench T-1 shall be dumped directly in trench T-2. At the end of mine life, both trenches shall be back-filled and there will be no OB dump.

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The location and alignment of trenches and estimate of extractable reserves is liable to change based on the results of scientific studies and design of Highwall Panels by the out-sourcing agency and permission given by DGMS.

7.0 MINING STRATEGY

7.1 CONSTRAINTS ON MINE DEVELOPMENT

Batura Highwall Project is affected by the following features:

(1) 4 nos. villages (2) Tarred road branching from NH-78 (3) Jamunia nalla (4) Two nos. 132 kV OHT lines (5) Two nos. ponds (6) In nearly 25% of project area the thickness of hard cover is less than 15m.

7.2 GEO-MINING CHARACTERISTICS

In Batura Highwall Project, only Seam – II is proposed for exploitation. Seam – III, L-1 band, L-2 band Seam – I have not been considered for exploitation due to their sporadic development and low thickness. The parting between L-1 band and Seam – II is varying between 1-3m. In such situation only one seam can be worked. Seam – II being a more potential seam has been preferred for extraction over L-1 band.

Particulars Characteristics of Seam - II Seam Thickness range (m) Mine Area 0.38 – 2.50 Workable Area 0.38 – 2.50 Workable Thickness Range (m) 0.75 – 2.50 Average Mining Thickness (m) 1.50 Seam Gradient 1 in 20 to 1 in 60 Depth of Cover range (m) Mine Area 6.50 – 65.00 Workable Area 8.00 – 65.00 Range of Parting with upper seam (m) 5.15 – 65.00 Grade of Coal (range) Mine Area E – A Workable Area B – C Average Grade of Coal B Average GCV Band G4 Immediate roof Sandy shale / Fgd. to Mgd. Sst. Immediate floor Fine to medium grained sandstone Geological Reserves (Mt) Proved 5.5647 Indicated Nil Mineable Reserves (Mt) 5.25 Extractable Reserves (Mt) 2.75 Status of Mining Virgin Seam

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7.3 SELECTION OF MINING METHOD

Opencast potentiality of Batura UG Block was studied. For cut-off seam thickness 0.75m, OB and coal have been estimated as 129.87 Mm3 and 5.13 Mt respectively with average stripping ratio of 25.3 m3/t. The wt. av. GCV of Seam – II is 6342 kCal/kg, i.e., GCV band G4 with sale price of Rs. 3451.50/t. The block is overlain by four villages, Jamuniya nalla, pond, tarred road branching from NH-78 and two nos. 132 kV OHT lines. In view of presence of these surface features, meagre opencastable reserves and high stripping ratio, an independent opencast mine is not being proposed in Batura UG Block.

For mechanized underground mining, with the available technology, minimum seam thickness required is 1.5m. In Batura UG Block, out of 5.6417 Mt geological reserves only 1.25 Mt are in +1.5m thickness range. For these meagre reserves opening an independent underground mine will not be feasible.

This block cannot be annexed to the adjacent Batura West Extension Block due to presence of fault F1-F1 of 35m throw and dyke D3. Therefore, underground mining is ruled out in Batura UG Block.

Highwall Mining is being practiced with reasonable success in nearby Sharda Project since 2011. Highwall Mining Technology is being proposed in the block. Highwall Mining is possible in seam thickness +0.75m to 3.05m and is suitable for low thickness shallow deposits having nearly flat gradient. The geo-mining conditions in Batura UG Block are conducive for deployment of Highwall Mining, therefore this technology has been shortlisted for Batura UG Block.

Advantages of Highwall Technology

Based on the available literature, research papers accessed through internet and experience of Sharda Highwall Project, Highwall Technology has the following advantages over Opencast Mining and Underground Mining:

(a) Limited land degradation since only the area for trenches and OB dumps is disturbed. Size of OB dumps is minimized due to less OB excavation. (b) Flexibility in alignment of trenches so that any surface features/ infrastructure need not be shifted/ diverted. (c) Coal can be extracted from below surface features without having to leave barrier pillars of substantial dimensions. (d) Quality of coal can be sustained even while mining thin seams of the order of 0.75m thickness. (e) This method of mining is designed to cause zero subsidence on the surface. Yet it gives an extraction percentage of around 55% of mineable reserves, which is much higher in relation to Bord and Pillar mining being practiced in India. (f) Coal seams in thickness range 0.75m to 1.5m, which cannot be mined by available underground methods also become amenable to extraction. (g) Environment friendly method of mining.

Job No. 517274 Page - xiii Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

Limitations of Highwall Technology

(a) Seam gradient should be 1 in 7 and flatter. (b) Coal seam should be available at shallow depth so that volume of OB excavation in trenches is minimized. (c) Seam thickness should not exceed 3.05m.

For Batura Highwall Project, the trenches have been aligned keeping sufficient distance from tarred road, Bichchiya village and Jamuniya nalla. The length of cuts has been maximized to 305m. The no. of trenches has been minimized to cause minimum damage to surface. Due to this reason, some patches in Seam – II remain virgin although the seam thickness is +0.75m. Shifting of Bichchiya village, tarred road and Jamuniya nalla is not proposed in the PR. Full extraction has been considered below all surface features. While designing the highwall panels, care will have to be taken so that the subsidence, slope and strain below these surface features does not exceed the safe limits approved by various statutory agencies.

Adequate capital provision for acquisition of different types of land has been envisaged in the report. Capital provision has also been made for shifting of Bichchiya village although its shifting is not envisaged.

For purposes of reserve estimation, the width of web pillar in the panels falling below Jamuniya nalla and where thickness of hard cover is less than 15m has been doubled.

8.0 METHOD OF MINING, MINING SYSTEM & EQUIPMENT

8.1 HIGHWALL MINING TECHNOLOGY

Highwall mining is a remotely controlled mining method, which extracts coal from the base of an exposed high wall, typically via a series of parallel entries driven to a significant depth within the seam horizon and conveying the coal by some means back to the surface. Highwall mining is a hybrid system capable of accessing these reserves for substantially less capital cost and lead time than a full underground mine, while being capable of producing over one million tonnes per year per system. Highwall mining also has a significant operating cost advantage over underground mining, because it is less labour intensive.There is a limitation of length of drivages in coal seam due to various reasons. In case of flat virgin seams, entries to the seam can be made by cutting a trench to expose the coal seam and Highwall mining can be done along the exposed coal seam available both at dip & rise side. This is commonly known as Trench Mining.

8.2 METHOD OF MINING

The technology is quite flexible depending upon the availability of the coal block. Generally three types of method are being practiced for creating highwall mining under different mining condition.

Contour mining Trench mining Bench mining

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In Batura Highwall Project, trench mining is proposed. There is a limitation of length of drivages due to various reasons. For a dipping seam, with the length of drivages, the depth of overburden increases but if the seam is flat, further entries can be made by excavating a trench to expose the coal seam and Highwall mining can be done along the exposed coal seam available both at dip and rise side. This is commonly known as Trench Mining.

8.3 APPLICATION OF TECHNOLOGY

As far as the application of the technology is concerned it is quite flexible and can be used for wide application for extraction of coal from:

 Thin seams of thickness over 0.75 m.  Beyond economic strip limit of opencast mines.  Coal blocked in Highwall boundaries.  Below sterilized overburden dump.  Below permanent structures like road, rail and power line.  Below villages.

8.4 STRENGTH OF HIGHWALL MINING TECHNOLOGY

8.4.1 SAFETY

Since no man is going inside the drivages, it is a safe method of mining. However, approval of DGMS will have to be taken for deployment of Highwall Machinery.

8.4.2 PRODUCTION POTENTIAL

Production potential of the machines depends upon the thickness of the coal seam and the condition of the side. Highwall machines can produce approx. 7200 tpd for thick seams, 4000 tpd for medium seams and 2500 tpd from thin seams having thickness 0.75 to 1.3m. Production over 100000 tonnes per month is being achieved in a sustained manner in other countries.

8.4.3 HIGHER PRODUCTIVITY

The machine is being operated with 3-4 crew members per shift with very high productivity. Depending on the thickness of seam, output per man shift can be as high as 300-400 t. This cannot be achieved by any other technology.

8.4.4 NO ASH DILUTION

Since the machine is cutting only the coal and being transported inside the closed push beam, coal is not getting contaminated with the fallen roof, if it occurs. Hence there is no ash dilution.

8.4.5 CONSERVATION OF COAL

This technology recovers that coal which in normal case cannot be taken out by any other technology. Percentage of recovery of coal by this technology is quite high as compared to conventional underground mining technology. Depending upon the thickness of coal seam, strength of coal and depth of cover of the seam, recovery of coal to the extent of 50% to 60% is possible. Job No. 517274 Page - xv Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

8.4.6 MOBILITY

Machine is mounted on four hydraulically powered crawlers with 900 movement. This allows the machine to move both in straight and transverse directions. This helps the machine to position itself in the next hole accurately with least time. Moreover, the machine is modular in construction and can be broken into modules in one day and can be assembled in 3 - 4 days.

8.5 HIGHWALL DESIGN & GROUND CONTROL ISSUES

Design of a highwall mining is based on the following site and working parameters.

1. Mining height 2. Hardness of coal and in-situ strength of coal 3. Depth of cover at beginning and end of cut 4. Width of drivages 5. Strength of overlying strata

The pillar strength, applied stress on the pillar and desired pillar stability factor are required to be ascertained. Based on the above parameters, width of web pillar, number of web pillars between two barrier pillars and width of barrier pillar are determined. The factor of safety of web and barrier pillar as per DGMS guideline is to be kept such that there is no chance of surface subsidence.

Highwall Mining technology has been introduced in SECL and SCCL since the last 3 years on total hiring basis. The method of mining has been approved by DGMS based on the scientific studies carried out by the out-sourcing agency based on the characteristics of coal and overlying strata.

Due to limited field data (experience of Sharda Project only is available) and inherent differences between Bokaho Block (Sharda Highwall Project) and Batura UG Block, nomograms published in the paper “GROUND CONTROL DESIGN FOR HIGHWALL MINING” by R. Karl Zipf, Jr., NIOSH, Pittsburgh, PA (refer Annexure – II) have been used to determine the width of web pillar and barrier pillar for different depth range considering factor safety 1.6 and 1.0 respectively, width of cut 3.66m and mining height 1.22m, strength of coal 6.20 MPa and width of panel 61.0m. The same are tabulated as under:

Web Pillar Width (m) Depth / 30m 40m 50m 60m 70m 80m Mining Height 1.22m 0.95 1.05 1.25 1.50 1.75 1.95 2.44m 1.00 1.30 1.60 2.05 2.25 2.70

Barrier Pillar Width (m) Depth / Mining 30m 40m 50m 60m 70m 80m Height 1.22m 3.75 4.10 4.75 5.50 5.90 6.10 2.44m 4.75 5.75 6.30 7.25 8.00 8.30

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8.6 SELECTION OF EQUIPMENT

Salient features of Highwall Miner are shown in Annexure – I. The highwall miner is modular in construction and consists of the following units:

Base unit/advancing launcher Reels and chains Controls Push beam Cutter Unit

9.0 MINING SCHEDULE

136 nos. highwall panels have been proposed in Batura Highwall Project in Seam-II. The width of panels varies from 7m to 61.30m. The no. of cuts in the panels varies from 5 to 13 with length of cut varying from 10m to 305m.

The extractable reserves have been estimated as 2.75 Mt from trenches as well as highwall panels. Keeping in view the clearances to be obtained and development activities to be carried out at Batura Highwall Project, it is envisaged that production will start in the third year and the project will achieve its target capacity in the fourth year. Zero date of this project shall be one year after approval of PR or EMP, whichever is later. Total life of the project is 8 years.

Although the mine has been planned for a target capacity of 0.50 Mty, its peak capacity is likely to be 0.675 Mty. The mine shall be operated on total hiring basis.

10.0 WATER MANAGEMENT, PUMPING & DRAINAGE

Make of water – 3857 GPM Pumping Capacity envisaged – 5*80 lps*90m head (electrically operated) 1*80 lps*60m head (diesel operated) Pipes - HDPE pipes of 200 mm outer diameter

11.0 CHP & RAILWAY SIDING

Coal from Batura Highwall Project shall be transported to Rampur Batura railway siding either by trucks or by cross country conveyor system for onward movement to consumers. Till the railway siding becomes operational, coal shall be dispatched by road directly to the consumers. At the siding two grade dispatch arrangement has to be made since grade of coal from Batura Highwall Project (capacity 0.50 Mty) is G4 while that of Batura West Extension OCP (capacity 1.50 Mty) and Rampur Batura OCP (capacity 4.0 Mty) are G5 and G6 respectively. Capital provision for coal handling and dispatch arrangement and part cost of railway siding has been made in Appendix A.8.1 under the head ‘Mine Development’.

12.0 WORKSHOP, STORE & MAGAZINE

Since life of Batura Highwall Project is only 8 years, no independent workshop and store is proposed. These services shall be shared with Rampur Batura OCP or with Sharda Highwall Project. Services of Regional / Central Workshop of Sohagpur Area shall also be utilized if required. Job No. 517274 Page - xvii Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

A 50 tonne capacity magazine is proposed at Rampur Batura OCP. This magazine shall cater to the explosive requirement of Batura Highwall Project. Magazines of Dhanpuri OCM having combined capacity of 21 tonne explosive, 12000 detonators and 63 km detonating fuse shall be used till the magazine at Rampur Batura OCP is commissioned. Provision of Explosive Van on hiring basis has been made in this report.

13.0 POWER SUPPLY

Batura Highwall project is located in the Sohagpur Area of SECL. This project shall receive power at 33kV by means of overhead line (AAAC, WOLF equivalent) on rail poles drawn from Sharda Open Cast Mine. The distance from the project is around 10 km.

For feeding power to Highwall equipment along with pumps and lighting loads (quarry and office), a 33/3.3kV surface substation has been proposed. The surface substation shall consist of 1 no. 2500kVA, 33/3.4kV transformer for Highwall equipment, 1 no. 1600 kVA, 33/3.4kV transformer for pumping loads and one number 160 kVA, 33kV/433V-230V (L-L) lighting transformer for lighting loads along with other switches and safety devices.

Maximum demand – 1466 kVA, Specific Energy consumption – 14.92 kWh/t.

14.0 CIVIL CONSTRUCTION

All buildings have been proposed on temporary specifications since life of the project is only 8 years. Considering the prevalent rates of materials and labour in Sohagpur Area, the cost index works out to 2610 in March 2015 with reference to 100 base in Delhi as on 1.10.76. Service and welfare buildings along with their development works have been envisaged to suit the requirements of the project. No residential buildings have been envisaged. The work force will continue to reside in townships of Sohagpur Area. The distance of these townships from Batura Highwall Project is nearly 8-12 km. The project is connected by an all weather tarred road with the townships. Provision of bus on hiring basis has been envisaged for movement of departmental work force from township to project. For coal dispatch, a 4 km long road is envisaged along with a bridge over Jamuniya nalla. The road and bridge shall be constructed only after a decision is taken regarding the mode of dispatch from Batura Highwall Project.

15.0 MANPOWER & PRODUCTIVITY

The manpower requirement for Batura Highwall Project has been assessed based on the manpower deployed at Sharda Highwall Project. The highwall equipment shall be deployed on hiring basis. Provision of only statutory supervisory manpower and pump operators has been made in this report.

Total Manpower (Nos.) - 69

OMS (t) - 26.44

Phasing of Manpower Total Manpower I Year II Year III Year IV – VIII Year 69 2 6 21 69

Job No. 517274 Page - xviii Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

16.0 SAFETY & CONSERVATION

16.1 GENERAL

Highwall Mining being a hydrid between opencast and underground mining all statutes relevant to opencast and underground mining have to be adhered to while practicing this form of mining. The guidelines issued vide DGMS Technical Circular No. 6 of 2013 are to be strictly adhered to.

For estimation of reserves some detailing has been carried out in this report based on the paper “GROUND CONTROL DESIGN FOR HIGHWALL MINING” by R. Karl Zipf, Jr., NIOSH, Pittsburgh, PA (refer Annexure – II). As per the paper mentioned above, a factor of safety of 1.6 of the web pillars is considered good enough to protect the ground as well the machine during operation. Since the technology is still in nascent stage in India, DGMS is insisting upon factor of safety of 2.0 for the web pillar and acquisition of land below which the cuts are made and coal extracted. It is anticipated that with experience both these conditions may be relaxed to some extent.

Highwall mining is a zero subsidence method and it is able to extract nearly 50% to 60% of the mineable reserves in thickness range +0.75m. This makes very thin seams (by Indian standards) also amenable for extraction and is giving a higher percentage extraction than conventional underground mining. It is a lot more safe in the sense that no person enters the cut and the cutter head and push beams are remotely controlled by the machine operator. For this reason dry cutting is practiced.

DGMS has not stipulated any special condition to prevent spontaneous heating. As per the mining method, after completion of the drivage the mouth of the hole is to be filled up with non-combustible materials. The risk of inundation to the lower seams if any can be avoided by drivages of upward boreholes from lower seams so that if there is accumulation of water, that can be drained out.

Further, minimum land degradation is involved since the entry to the coal seam(s) is by driving trenches of width 30 to 35m only at seam floor and around 150m at the surface. The trenches are so aligned that no surface features are either disturbed or re-located. Land acquisition which is the biggest bottleneck in opencast mining is reduced substantially since only land for trenches and external OB dumps needs to be acquired.

16.2 SAFETY MEASURES AGAINST INUNDATION

HFL of Jamuniya Nalla and Son river along the eastern bank is not available. This should be determined before implementation of the project. All highwall cuts should be stopped 60m from the HFL line along eastern bank of Son river. Jamunia Nalla flows along the south – western part of the property. It is not proposed to divert this nalla. While constructing trench T-2B, care should be taken to leave atleast 15m barrier against the HFL of Jamunia nalla at the surface and 60m at the floor of the trench.

Proper survey of the block should be carried out to physically locate the boreholes and grout them with cement and non-carbonaceous debris, if not already done during exploration stage. This will help obviate the scope of inundation from the surface permanently and also increase the accuracy of the mine plans.

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A careful assessment of the danger of inundation from surface water should be made before the onset of every rainy season and adequate precautions against such danger should be clearly laid down and implemented. During rainy season, blockage of river, jore, nalla or stream may occasionally occur on the upstream side. It is therefore necessary to keep a constant watch on the upstream of river / nalla and take suitable precautions.

16.3 DUST SUPPRESSION

Major source of dust in opencast mine operation have been identified to be from haul roads, due to spillage from dump trucks and abrasion by their wheels. Provision of adequate nos. of water sprinklers has been made for spraying of water on haul roads to prevent emission of dust. Fixed type of water sprinklers will be provided along the main haul road. The drills to be engaged shall be equipped with dust arrester so that dust emission is minimum. As the blasting is not a continuous process and while blasting, persons will be removed to the safe zone, chances of exposure to dust due to blasting are less. At CHP, sufficient arrangements have to be provided to suppress coal dust at vulnerable points. Mist type water sprinklers have been proposed in the CHP.

16.4 SLOPE STABILITY

The spoil will be stacked in the external / internal dump space at the natural angle of repose to avoid the sliding of OB bench. The OB dump will be terraced at the height of 60m. The surface of OB dump will be leveled and graded. Plantation will be made on the slope of OB heap to avoid the sliding of spoil. Clay in OB if found, should be covered by other OB and pressed to avoid sliding of OB dump otherwise it should be separately stacked.

16.5 BLASTING

For blasting crews, the blasting shelter has to be provided. To reduce the chance of fly rock and misfire, the perfect blasting pattern is to be developed by trial. In view of the safety of the villages / public / mine infrastructure against blasting hazards like fly rocks, ground vibrations, etc. proper safe distance has been kept from the mine working. However, when the mine working reaches near to the village boundaries/mine infrastructure, controlled blasting will be adopted along with other necessary precautions laid down by the DGMS. Misfire if any, should be handled cautiously.

16.6 STRATA CONTROL & SUBSIDENCE

Detailed engineering and design of highwall panels falls in the scope of the out-sourcing agency. Based on the results of scientific studies specific to highwall mining, the width of web pillars, barrier pillars and panel width shall be designed to ensure that there is no adverse impact on strata and subsidence, slope and strain caused on the surface remain within permissible limits.

16.7 GENERAL PRECAUTIONS

Trailing cable of highwall miner and mobile parts like cutter head get cut quite frequently due to various reasons. The cable joints have to be vulcanised. Continuity of insulation of the cable, after every vulcanisation should be tested and the insulation resistance recorded.

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The highwall miner is electro-hydraulically operated. All provisions and guidelines stated in "DGMS Tech. Circular No.1 of 1996 regarding use of high pressure hydraulic hoses in underground coal mines" should be strictly followed.

A Safety Management Plan should be prepared by the Mine Management taking into account the risk involved in various operations and the control measures to be adopted to obviate the risk. The risks should again be rated after applying the control measures to ascertain the activities which require close monitoring and preventive actions. The Safety Management Plan is a rolling plan to be prepared by a team of personnel related to the job. The approach should be non-judgemental and the control measures should be agreeable to all persons at the grass root level for proper compliance.

16.8 CONSERVATION OF COAL

The coal recovery in trenches shall be almost 100% in the trenches since they shall be constructed by opencast mining method. This wil ensure minimum wastage of natural resource. Even in highwall panels, the coal recovery is nearly 50 – 60% of the mineable reserves which is higher than the recovery percentage in conventional Bord and Pillar mining.

The OB bench cut working will be kept sufficiently advanced in respect to the coal bench working to avoid mixing of OB into the coal during blasting. At the same time, the coal bench surface will be cleaned with scoops to avoid dilution and contamination of coal.

Minimum external OB dump space has been provided. Maximum OB shall be dumped internally in the trenches after highwall operations.

16.9 SCIENTIFIC STUDIES

It is necessary to undertake the following scientific studies for proper implementation of this report:-

- To undertake the physico-mechanical properties of rocks for designing the highwall panels and determining the cuttability of coal.

- Numericle modelling for determining the width of web pillars and barrier pillars of highwall panels.

- To undertake hydrogeological studies for quantifying ground water and to assess impact of highwall mining on existing ground water regime. This data will also assist in identifying source of water for industrial use.

- To undertake subsidence prediction studies to determine the maximum subsidence and maximum tensile strain below agriculture land and surface features.

Adequate capital provision for conducting the above mentioned studies has been kept in the report and is shown at Appendix-A.8.1.

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17.0 ENVIRONMENT MANAGEMENT

The Batura UG Block is virgin and comprises mostly of agricultural land. The block area is free from industrial and mining activities which generally contribute to environment pollution and degradation. The core and buffer zone environmental data for Batura Highwall Project in respect of air quality, water quality, noise level, flora fauna, socio economic data etc. will be generated before preparation of Environmental Management Plan.

To mitigate the adverse impact of mining, all precautions as per statute shall be taken. Regular monitoring for environment parameters and plantation shall be carried out.

18.0 MINE CLOSURE

Mine closure activities shall be carried out as per the norms laid down for opencast mining. The closure activities shall be carried out in the last three years of mine life and continue beyond mine life till all activities are completed. Fund for mine closure activities to be deposited in escrow account has been calculated as per the MoEF circular for norms laid down for opencast mining. This issue needs to be addressed while preparing the EMP and Mine Closure Plan since very small quantum of land is degraded during highwall mining. At the end of mine life, the trenches shall be back filled and there will be no external OB dump. As far as praciticable, the acquired land shall be restored to its pre-mining state.

19.0 PROJECT IMPLEMENTATION SCHEDULE

19.1 LAND ACQUISITION

Most of the mine area (420.975 ha) is overlain by non-forest land. The break-up of different types of land overlying the mine area is as under:

Sl. No. Land use Area ( in ha) 1. Forest land (Revenue/Res.) 0.000 2. Govt. land 33.986 3. Tenancy land 386.989 Total 420.975

All the above figures have been obtained by measuring the relevant area on digitised revenue plan using AUTOCAD software. These figures are liable to change.

Capital provision for land acquisition and R&R has been made based on data supplied by Sohagpur Area vide letter no. SECL/SGP/GM/Secy/5/14/231 dated 20th December 2014, revenue plan supplied vide letter dated 11th February 2015 and additional information received vide fax dated 18th February 2015.

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Highwall Mining is a zero subsidence method of mining and damage to surface area is restricted to trenches, OB dumps and land required for infrastructure.

Besides the cost of land, compensation in lieu of job and resettlement and rehabilitation cost of 582 PAFs has also been considered in the PR as per CIL R&R Policy, 2012.

Location and area of Trenches, OB dumps, surface infrastructure and highwall panels is tentative and subject to revision based on detailed scientific studies. Due to this reason it is proposed to acquire the entire project area under ALL RIGHTS.

The project involves total 420.975 ha of land for quarry and industrial complex, safety zone, coal transport road, R&R site, etc. The total nos. of families that may be rehabilitated is 582 and the total nos. of land oustees involved is around 582 from the villages falling within the project area. The PAF’s and PAP’s will be rehabilitated and paid economic compensation / employment as per CIL R&R Policy, 2012.

Although capital provision has been made in the report, it is not proposed to shift and rehabilitate any village. Diversion of Jamuniya nalla, HT lines and branch road of NH-78 is also not proposed. The entire land will be acquired in the first six years after approval of the Project Report.

19.2 PROJECT IMPLEMENTATION SCHEDULE

The project is likely to begin production in the third year after approval of PR/ EMP Clearance, whichever is later. The project shall also come into revenue in the third year and achieve its target capacity in the fouth year. Total life of the project is 8 years during which coal shall be produced over a period of 5 years and 6 months.

Year ACTIVITY I Year Land acquisition, Tender process for Highwall Technology on hiring basis II Year Land acquisition, incoming power supply arrangement, construction of CHP. III Year Land acquisition, trench cutting, Civil works, construction of CHP, coal production (0.25 Mt) IV Year Land acquisition, trench cutting, Civil works, coal production (0.50 Mt) V Year Land acquisition, trench cutting, Civil works, coal production (0.50 Mt) VI Year Land acquisition, trench cutting, Civil works, coal production (0.50 Mt) VII Year Trench cutting, coal production (0.50 Mt) VIII Year Trench cutting, coal production (0.50 Mt)

19.3 CRITICAL ACTIVITIES PRIOR TO OBTAINING STATUTORY CLEARANCES

Following are the critical activities which need to be implemented before obtaining statutory clearances:

a) Hydrogeological studies, socio-economic survey of PAPs and PAFs. b) Scientific studies for highwall mining and Subsidence Prediction studies. c) Baseline Environment Data and Routine Monitoring Data.

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20.0 FINANCIAL EVALUATION

20.1 INTRODUCTION

Batura Highwall Project has been planned in Batura UG Block. The target production of the project has been assessed as 0.50 Mty and grade of coal has been assessed to vary from GCV band G3 to G8, the wt. av. Being G4. It is proposed to dispatch Processed ROM coal (-) 100 mm size from the project. The scope of work, terms and conditions and hiring rate of Sharda Highwall Contract have been adopted in totality while working out the economics of this project.

20.2 ACTIVITIES TO BE OUT-SOURCED

The following activities related to production from Highwall Technology have been envisaged for out-sourcing:

(1) The Out-Sourcing Agency (OSA) has to produce atleast 0.50 Mty of coal including changeover period from all coal seams in the block.

(2) Conduct scientific study, design, engineer, finance, procure, supply, install, operate and maintain the entire higwall miner package.

(3) Deploy all necessary unused equipment for highwall mining and its spares, consumables, HEMM/ equipment for bench/ trench cutting of required size, removal of OB, winning of coal and transportation of coal to the weighbridge, and subsequently to the stock pile/ railway siding for dispatch. Provide, operate and maintain all equipment required for these jobs.

(4) Prepare benches/ trenches for deployment of highwall miner either through excavation of OB or by bringing material from spoil dumps and deliver coal to SECL at the specified delivery point after weighment.

(5) Install, maintain and operate pumps for pumping water from sump to sedimentation pond.

(6) Construct and maintain internal power supply arrangement from in-pit sub-station within 100m from highwall site for contracted works. Power consumed shall be recoverd from the running bills at the applicable market rates.

(7) Arrange for fuel, oil and lubricants required during contract execution.

(8) Engage all operational and supervisory manpower with no short / long term legal liability on SECL.

(9) Conduct safe mining operations.

(10) Arrange 100% financing of proposed work.

(11) Conduct site scientific study to enable SECL for obtaining DGMS approval of mining technology and monitor the data as per DGMS requirement.

(12) Obtain DGMS approval for equipment package.

(13) Carry-out any other activity incidental to highwall mining arising during the contract period. Job No. 517274 Page - xxiv Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

(14) Carry out all activities required to introduce highwall package and start delivery of coal within 12 months of contract coming into force.

(15) Ensure maximum recovery of coal without violating the statute.

20.3 CAPITAL INVESTMENT

Following table shows the capital investment envisaged for Batura Highwall Project under various account heads. (Figs. in Rs. lakhs) A/C Particulars Capital Provision Head 01 Land 11672.87 02 Buildings: i) Service 83.61 ii) Residential 0.00 03 Plant & Machinery 537.43 04 Furniture & Fittings 6.00 06 Vehicles 0.00 07 Prospecting & Boring 8.00 08 Development: 08.1 Capital outlay in mines 9075.64 08.2 Roads & Culverts 339.99 08.3 Water supply & Sewerage 224.21 08.4 EMP Capital 75.00 08.6 PR Preparation Cost 110.11 09 Revenue Expenditure Capitalized 1059.23 during development period – Net Total Capital 231.9209

The specific investment works out to Rs. 4638.42/t and completion capital works out to Rs. 284.8579 crores.

.3.1 PHASING OF CAPITAL INVESTMENT (Figs. in Rs. lakhs) Capital Phasing of Capital Investment Investment I Year II Year III Year IV Year V Year VI Year 23192.09 1602.15 3636.86 3992.33 5722.74 5058.10 3179.91

.3.2 BASIS OF PRICING OF P&M, CIVIL WORKS & HIRING RATE

The pricing of Plant and Machinery is based on the Standard Price List of Mining Equipment, June 2014 (escalated up to March 2015) circulated by the Specialist Cell of CMPDI, Ranchi. The cost of Civil Works has been estimated on the basis of Cost Index 2610 for Sohagpur Area, Madhya Pradesh as in March 2015. The scope of work of out- sourcing agency and the out-sourcing rate has been taken from Sharda Highwall Contract of SECL with due weightage to the escalation as per the escalation formula stated in the agreement. It is clarified that this rate is the escalated rate and shall not be the basis for estimated rate for deployment of Highwall Miner Package.

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Hiring rate calculation

As per LOI no. SECL/BSP/P&P/2009/353 dated 31/03/2009

 Cost of conducting site scientific investigations and monitoring, preparing study report, design and obtaining dgms approval for introduction of highwall technology in the mine inclusive of all taxes 9service tax also) – Rs. 90.66132 lakhs.

 Cost of production inclusive of all taxes and duties plus service tax @10.3% - Rs. 897.00/t or 80% of notified basic sale price of coal per tonne prevailing in a particular quarter, whichever is less.

 Cost of loading and transportation of coal upto burhar/ amlai railway siding inclusive of all taxes and duties plus service tax @ 10.3% of 25% – Rs. 52.40/t.

The calculation of hiring rate is tabulated as under:

S. No. ITEM As on 15/07/2008 March 2015 1. Base cost of production Rs. 897.00/t (55% fixed and 45% variable) 2. Base transport cost Rs. 52.40/t (55% fixed and 45% variable) 3. Escalation indices 4. Diesel 15% weightage 38.99 58.62 5. WPI (for spare parts) 15% weightage 115.70 181.20 6. AICPI (for labour) 15% weightage 143.00 254.00 7. Escalated cost of production 1145.35 8. Escalated transport cost 66.91 9. Hiring rate considered 1212.26

Service tax has not been considered since SECL is availing full CENVAT credit on all hiring jobs involving mining services. This is as per the information given by General Manager (Finance), SECL.

20.3 OPENING OF REVENUE ACCOUNT

The project shall come into revenue from the beginning of third year after approval of PR / EMP, whichever is later.

20.4 UNIT COST OF PRODUCTION

Appendix-C shows the unit cost of production, which is tabulated as under: (Figs. in Rs/t) Sl. No. Item Value 1 Salaries and wages 129.02 2 Stores 8.94 3 Power 46.93 4 Misc. Expenses (incl. Workshop debit) 81.76 5 Administrative charges 64.00 6 Mine Closure 149.42 7 Interest on Working Capital @ 14.50% 23.20 8 Depreciation 215.34 9 Cost of Out-sourcing for Highwall Miner 1212.26 10 Interest on Working Capital @ 14.50% 58.59 11 Total Cost 1989.47 Job No. 517274 Page - xxvi Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

20.5 GRADE OF COAL & WEIGHTED AVERAGE SELLING PRICE

The annual grade of dispatch from Batura Highwall Project will vary from GCV band G3 to G5 depending upon the location of highwall panels. The wt. av. GCV works out to 6342 kCal/kg, i.e., GCV band G-4. The weighted average sale value considering 95% of the GCV band price (Rs. 3490.00/t) of coal and applicable processing charge (Rs. 79.00/t) for -100 mm and coal transportation charges (Rs. 57.00/t) for a distance upto 10 km works out to Rs. 3451.50.

20.6 PROFITABILITY & IRR

The profitability and IRR of the project at various levels of capacity achievement are tabulated as under:

Sl. Parameter Level of Capacity Achievement No. 75% 80% 85% 90% 100% 1 Production (Mty) 0.375 0.400 0.425 0.450 0.500 2 Cost of Production 2216.88 2160.02 2109.86 2065.27 1989.47 (Rs/t) 3 Selling Price (Rs/t) 3451.50 3451.50 3451.50 3451.50 3451.50 4 Profit/Loss (Rs/t) 1234.62 1291.48 1341.64 1386.23 1462.03 5 Financial IRR (%) 19.72% 25.36% 30.84% 36.16% 46.39% 6 Desired selling price to 3263.07 3140.80 3032.90 2937.00 2773.96 yield 12% IRR (Rs/t) 7 NPV @ 12% Rs. crores 20.64 36.31 51.98 67.64 98.98

20.7 MANPOWER, OMS & EMS

The departmental manpower requirement for Batura Highwall Project has been estimated as 69 nos. including welfare manpower for a production capacity of 0.50 Mty. The OMS of the mine (including welfare manpower) works out to 26.44t at 100% achievement of target capacity. The EMS calculated as per CMPDI norms considering the maximum of scale, since most manpower for Batura Highwall Project will come on transfer from the old mines of Sohagpur Area has been estimated as Rs. 3411.04.

20.8 DETAILS OF FSA ENTERED ON COST- PLUS BASIS

At present no FSA exists between SECL and CSEB for supply of coal on cost-plus basis for Batura Highwall Project and it will not be necessary since the project is economically viable at notified price.

20.9 BREAK-EVEN PRODUCTION

The break even production is 0.16 Mty.

Job No. 517274 Page - xxvii Executive Summary PROJECT REPORT FOR BATURA HIGHWALL PROJECT CMPDI

20.10 SENSITIVITY ANALYSIS

Sensitivity analysis of important parameters affecting the Financial IRR is shown in Appendix-C3. The same is tabulated as under:

Case IRR (%) at 100% Cap. Utilisation Level Base Case 46.39% Capital cost plus 5% 42.90% Capital cost plus 10% 39.61% Capital cost plus 15% 36.53% Operating cost plus 5% 42.31% Operating cost plus 10% 38.14% Operating cost plus 15% 33.89% Sales Revenue minus 5% 38.20% Sales Revenue minus 10% 29.65% Sales Revenue minus 15% 20.70% Capital + Operating cost plus 5% 38.91% Capital + Operating cost plus 10% 31.75% Capital + Operating cost plus 15% 24.88%

20.11 CONCLUSION

Highwall Mining has been proposed in Batura UG Block due to its technical compatibility. On hiring basis, considering the escalated rate as per Sharda Contract, Batura Highwall Project is economically viable.

The design details of highwall panels, extractable reserves and location of trenches shown in this report are solely for estimating the financial viability of highwall mining in Batura UG Geological Block and are liable to change. Detailed engineering and design of highwall panels is in the scope of the bidder.

Coal from Batura Highwall Project will be transported either by road or cross country conveyor system upto Rampur Batura railway siding for onward movement to consumers. Arrangement for two grade dispatch will have to be made at the siding. Till the CHP and railway siding at Rampur Batura become functional, coal shall be dispatched by road to the customers directly from Batura Highwall Project.

Project Report for Batura Highwall Project (0.50 Mty, Rs. 231.9209crores, March 2015 estimates) may be approved for a target capacity of 0.50 Mty and peak capacity of 0.675 Mty. The peak capacity is being specified for EMP purposes only and is likely to be achieved when ideal geo-mining conditions are encountered and highwall miner operates optimally.

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Job No. 517274 Page - xxviii Executive Summary