MINE CLOSURE REPORT

FOR

CHURI-BENTI UNDER GROUND PROJECT (0.81 MTY)

(CENTRAL COALFIELDS LIMITED)

SEPTEMBER 2011

Regional Institute – III Central Mine Planning & Design Institute Ltd. (A Subsidiary of Coal India Ltd.) Gondwana Place, Kanke Road Ranchi-834008,

1

INTRODUCTION

1.1 About the Mine

Churi-Benti is an existing underground mine. Prior to nationalisation, it belonged to M/s United Karanpura collieries Ltd. Since its inception the maximum production was 0.246 MTPA in the year 1993-94. The present project is producing 0.81 MTPA by augmenting the earlier production of 0.16 MTPA through modernization by introducing Continuous Miner Technology. Entire property in Churi block has been developed and standing on pillars.

Depillaring of standing pillar was essential. DGMS was insisting for depillaring. At the time of producing 0.16 MTPA, Churi-Benti UG was in heavy loss, due to low production (0.16 MTPA) and productivity (OMS 0.58 T). Mine has been turned around by introducing Continuous Miner Technology which ensured additional production of 0.65 MTPA and productivity of 3.32 T.

At present, development is being carried out in Benti block by semi- mechanised Bord and Pillar method (LHD). The blasted coal from the face is evacuated through a series of Gate belt/ Trunk belt conveyors to the surface bunkers. Coal is being dispatched to near by railway siding by trucks. Life of the mine is 11 years.

Details of Mine

Curi Benti is an existing Underground Expansion Project from 0.16 MTPA sanctioned capacity to 0.81 MTPA nominal capacity & 0.93 MTPA peak capacity .Total mineable reserve is 5.129 MT. Grade of coal is ‘B’ (L/F) and life of project is 11 years. Mining will be done by Development & Depillaring with caving with Continuous miner by Bord & Pillar method. Produced coal will be supplied to basket linked consumers.

The existing mine boundaries of Churi UG mine covers area lying in Churi mine block and part of Benti block. Detailed mining lay out has been given in plate 3. The present boundary of the Churi UG is as under :

North/North- East

Adjusted boundary between Ashok OCP (Piparwar Area) & Churi UG in Benti block and Common boundary with Ray UG along fault F17- F17.

West Arbitrary line beyond Fault F11A along the fault F11A plane and

2 South -East

Saphi river

South/South-West

Common Boundary Between Churi and Manki Colliery The existing mine boundaries for Churi Benti UGP is same as earlier mine boundaries of Churi UGP.

1.1.1 Name of mine owner / company

Project------Churi-Benti UGP. Area------NK Area Company------Central Coalfields Limited Mine Owner---Director (Technical)(Operation), CCL

1.1.2 Address for Communication

Project------Churi-Benti UGP Nearest Railway station ----- Churi-Benti UG project is situated at a distance of 8 km on fair weather road connecting Khalari and Ray railway stations on the Gomoh-Dehri-on-Sone loop line of the East Central Railway. District------Ranchi. State------Jharkhand.

1.1.3 Location of mine:

Project------Churi-Benti U/G project is located in the South-central part of North Karanpura Coalfield between the latitudes 23o 41' 05" and 23o 42' 04" and the longitudes 85o 03' 00” and 85o 04' 20" covering an area of about 7.68 sq.kms. in of Jharkhand state. It is covered by topo sheet Nos. 73E/2 and 73A/14 (Scale 1"=1 mile) of Survey of India. Saphi River forms the south-eastern boundary and arbitrary line beyond Fault F11A and along the fault plane of F11A of Benti Block forms the western boundary of the project. Ray Bachra colliery and Ashok OCP of Piparwar area is situated to the North / North-east and Manki colliery (now exhausted) to the south/south- west of Churi project. Churi-Benti UG project is situated at a distance of 8 km on fair weather road connecting Khalari and Ray railway stations on the Gomoh-Dehri-on-Sone loop line of the East Central Railway. An all weathered 25 km long road links Khalari with Bijupara village on the state highway connecting Ranchi and Daltonganj.The P.W.D. road connecting Khalari and Barkagaon in Hazaribagh district also passes through the Churi block. CCL Hq. at Ranchi is situated at a distance of about 73km from Churi UG project.

Area------NK area Latitude------230 41' 05" and 230 42' 04" N Longitude------850 03' 00” and 850 04' 20" E

3 1.1.4 Date of start & Life of mine:

Date of start of production----- 1973-74 Life of mine as per PR ------11 years Estimated balance life of mine (as on 01.04.11) ---- 11 years

1.1.5 Total Lease Area of the mine :------767.98 Ha

1.1.6 Communication

Churi-Benti UG project is situated at a distance of 8 km on fair weather road connecting Khalari and Ray railway stations on the Gomoh-Dehri-on- Sone loop line of the East Central Railway. An all weathered 25 km long road links Khalari with Bijupara village on the state highway connecting Ranchi and Daltonganj.The P.W.D. road connecting Khalari and Barkagaon in Hazaribagh district also passes through the Churi block. CCL Hq. at Ranchi is situated at a distance of about 73km from Churi UG project.

1.1.7 Topography of the area

The topography of the area except in the western part is gently undulating and sloping towards Saphi and Damodar rivers. The area as per borehole records and colliery records lies between RL 404.50m and RL 476.80m above Mean Sea Level. In the western part of the block, adjoining Manki mine, the terrain is hilly, as few spurs of the Belangi Hill (RL 529.74m) traverse the block.

The average annual rainfall of the area is around 1500mm, most of the precipitation of which is during the monsoon season with some winter rains. Damodar and Saphi rivers control the drainage of the area. The High Flood Level of Saphi River as recorded close to the incline mouth by the colliery authorities in 1976 and supplied to the Exploration Division is 420.95m above the M.S.L. Part of developed working of Churi UG in W7, W8 and W9 panels falls below HFL. One seasonal nala is also passing over the panels of W8, W9 and W10.

Incline No.1 in the Lower Bachra seam was driven from the area falling under high flood level of Saphi River. It has since been sealed and six numbers of check dams between 2nd and 3rd levels have been constructed as protective measures.

1.2 Reasons for Closure

To restore the disturbed area after extraction of planned quantity of coal, to the acceptable limit of local community and regulatory authority.

1.3 Need of mine closure planning

1.3.1 Mining activities leave long lasting impacts on the landscape, ecology and on local inhabitants. These activities disturb the delicate environmental and social equilibrium that exists in its area of influence. Hence, it becomes imperative on part of the mine operator to restore the equilibrium in the mine affected area that existed in the pre-mining period. Thus, any mining venture 4 must have adequate closure plan, aimed at rehabilitation of disturbed area, which should be acceptable to local community as well as regulatory authority.

1.3.2 Mine closure encompasses rehabilitation process designed to restore physical, chemical and biological quality disturbed by the mining activities. Mine closure is not just something that happens at the end of a mine’s life rather mine closure is an ongoing series of decisions and activities beginning in the pre-mining stage of mine and ending with a sustainable site that can be returned to the community.

1.3.3 Thus, a Mine closure plan needs to define the liabilities, responsibilities and authorities of the different agencies like the mine management, other regulatory bodies, Central and State Governments after mine closure. Various objectives of the advance mine closure planning are as follows:

a. To allow productive and sustainable after-use of the site, which is acceptable to the mine owner and the regulatory authority b. To protect public health and safety c. To eliminate environmental damage and thereby encourage environmental sustainability d. To minimize adverse socio-economic impacts of mining activities e. To protect the flora and fauna of the area affected by the mining f. Effective use of the assets created in course of mining

1.3.4 Primarily, the mine closure activities are planned in two stages. The initial plan identifies the activities required to be executed as the mining activities progress after the inception of the Project. These activities may undergo subtle changes depending upon the actual site condition during implementation. Finally, a detailed closure plan is to be prepared 4-5 years before the actual closure time of the mine depending upon the existing parameters at that point of time.

. Plans Enclosed

The following surface plans have been enclosed along with this mine closure report plan:

a. Pre mining Land use plan of core zone b. Quarry & Dump Plan at the end of mining. c. Post mining land use plan with reclamation.

5 Financial Provisions

Mine Closure activities of Churi-Benti UGP would be a constant exercise for the mine which would begin with the commencement of mining operations and continue till post closure. The mine closure activities would naturally entail certain expenditures, which will have to be borne by the mine operator.

2.1 Revenue expenditures

This would cover the activities which are being executed along with normal mining operation and would continue to be executed in course of execution of the Project. The cost of progressive mine closure activities is already part of the project cost.

2.2 Expenditures to be incurred just prior to actual mine closure and in the post closure period

2.2.1 As per MOC guidelines, a corpus escrow account @ Rs. 1.0 lakhs per Ha of the property leasehold shall be opened with the coal controller organization to meet the expenses of final mine closure. Thus the total expenditure on his front may be calculated in following manner:

The cost expenditure after closure of mine will be met from the corpus escrow account deposited by the mine operator. However, the additional amount beyond the escrow account will be provided by the mine operator after estimating the final mine closure cost five years prior to mine closure (as per the mine closure guideline).

The progressive mine closure will deal the land reclamation as per the calendar plan of project report. The cost of progressive land reclamation is already part of the project cost. Therefore, the escrow account for mine closure will deal only the final mine closure.

The detail of escrow account

The total mine lease area is 767.98 Ha, so the corpus based on August, 2009 rate is Rs. 767.98 Lakh @ Rs. 1.0 Lakh/Ha of lease area. The wholesale price index in August, 2009 and April, 2011 is 129.60 and 150.60 respectively. So the current value of corpus is Rs 767.98x150.60/129.60 Lakh, which comes to Rs. 892.42 lakh. Since this is an operating/existing mine, this corpus is to be divided by balance life of mine. The balance life of the mine is 11 years. So, by dividing by 11 years, the annual corpus comes to Rs. 81.13 Lakh. This amount is to be deposited in escrow account every year with 5% escalation.

6 Year Amount in Lakh (Rs.)

1 81.13 2 85.19 3 89.45 4 93.92 5 98.61 6 103.54 7 108.72

8 114.16

9 119.87 10 125.86 11 132.15 Total 1152.60

As per above an amount will be deposited every year up to the last year of mine life. The amount calculated by the above formula shall be deposited every year by CCL in the Escrow amount opened with the Coal Controller organization in a scheduled Bank. An agreement, outlining detailed terms and conditions of operating the said Escrow Account shall be executed amongst CCL, the Coal Controller and the commercial Bank.

However the additional amount beyond the escrow account, if any estimated later on, will be provided by the mine operator after estimating the final mine closure cost five years prior to mine closure (as per the mine closure guideline).

The details of Mine Closure Cost

The above escrow account will meet the cost of different activities of Mine Closure cost which is given in the table below:

% OF TOTAL SL. AMOUNT IN ACTIVITY MINE CLOSURE NO. LAKH (RS.) COST A Dismantling of Structures Service Buildings 3.50 40.34 Residential Buildings 37.58 433.15 Industrial structures like CHP, Workshop, 6.33 72.96 field sub-station etc. B Permanent Sealing of mine entries (incline mouth and air shaft) Sealing of incline mouth and air shaft 2.32 26.74

C Subsidence Management 1.75 20.17 D Landscaping Landscaping of the cleared land for 5.80 66.85 improving its esthetic E Plantation Plantation over the cleared area obtained 10.00 115.26 after dismantling and on other barren spaces

7 % OF TOTAL SL. AMOUNT IN ACTIVITY MINE CLOSURE NO. LAKH (RS.) COST F Monitoring/ Testing of paramaters for three years Air Quality 3.83 44.14 Water Quality 3.34 38.50 G Enterpreneurship Development 4.65 53.60 (Vocational/ skill development training for sustainable income of affected people H Miscellaneous and other mitigative 11.60 133.70 measures I Manpower cost for supervision 9.30 107.19 TOTAL 100.00 1152.60

8 Time Schedule

The closure of mines evolves environmental, technical, social aspect and financial assurance for implementing the post closure activities as per guidelines of Ministry of Coal. The post closure implementing activities will run for three years. The following activities will be implemented as per bar chart.

S.N Activities Time Half Yearly Frame 1 2 3 4 5 6 1. Preparation of Survey & 1 month Disposal Report 2. Disposal of P&M 2 and half including HEMM, CHP, years W/S, Siding 3. Dismantling of Industrial 2 years structure 4. Clearing of Coal Stock 2 years and Infrastructural Area. 5. Disposal / Dismantling of 2 &1/2 Residential colony years 6. Plantation over cleaned from 2nd land of Infrastructure. year 7. Sealing of mine entries for UG mine 8. Environmental 3 years Monitoring 9. Subsidence 3 years Management for U/G 10. Post closure subsidence 3 years monitoring for UG

The manpower for implementing the above activities with time bound manner have been provided in the subsequent chapter with cost details.

NOTE : The subsidence management of UG mines will be taken up whenever the cracks develop or the ground area subsides.

9