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EXECUTIVE SUMMARY OF PROJECT REPORT CMPDI

18 Mungoli Nirguda Extn. Deep OC

SUMMARY

OF

PROJECT REPORT



BRIEF OF PROJECT REPORT

1.0 INTRODUCTION

1.1 BACKGROUND OF PROJECT REPORT

Mungoli-Nirguda Combined geological block is a part of the south-western part of

the western limb of the Wardha Valley Coalfield. Presently an opencast mine

named Mungoli-Nirguda amalgamated OCM is being operated by WCL in the

block. The existing mine is producing about 3.00 to 4.00 Mt per annum and the

balance mineable reserves and overburden within the approved PR boundary as

on 01.04.2015 is about 6.00 Mt and 13.50 Mm3 respectively, Thus, the existing

mine is having balance life of one and half year as on 01/04/2015 and it will

exhaust in mid of 2016-17.

Two Project Reports namely Mungoli OCP (year 1994) & Nirguda OCP (year 1998) for a target capacity of 0.80 Mty & 0.75 Mty respectively were prepared in the geological block. PR for Mungoli OCP was approved by GoI vide letter No.

43011/10/90-CPA Dt. 20.01.1995 for estimated capital of `. 83.63 Crores. The PR

for Nirguda OCP was approved by CIL in its 51st Board meeting held on

25.05.1999 for estimated capital of `. 95.03 Crores. Later on, in the FD's meeting

of WCL held on 03.04.2003, both the mines were amalgamated for operational convenience. The balance reserves projected in the amalgamation note were 24.29 Mt (including 5.75 Mt dip side additional reserves beyond PR boundary of

Mungoli OCM) for a life of 16 years with an approved capital of `.123.17 Crores.

Partial hiring of HEMM was also proposed in this note. The amalgamated Mungoli - Nirguda OC mine produced 3.06 Mt coal in 2010-11 and with this target production, the balance life of mine was about 5 to 6 years. Coal reserves were available in the dip side beyond the approved PR limits but additional drilling was required for proving coal reserves. Further exploration was done in the block and a Geological Report namely "Geological Report on Coal Exploration Mungoli-Nirguda Combined Block, Wardha Valley Coalfields" was prepared in March 2011 by CMPDI.



To continue the production from the mine from 2016-17 and onwards for gainful

utilization of existing men, machinery and infrastructure of Mungoli-Nirguda OCM,

it was decided to make a Project Report of Mungoli - Nirguda Extension (Deep)

OC mine to extract the coal reserves of the block coming under proved category

beyond the approved PR limit. It was proposed to deploy the Draglines of

neighbouring Ghughus OC mine and Umrer OC mine in proposed Mungoli -

Nirguda Extension (Deep) OC mine. The balance life of Ghughus OC mine was

only 3 years and similarly there was lack of space for deployment of Dragline in

Umrer OC mine.

Accordingly, the PR of Mungoli – Nirguda Extension (Deep) OC mine was

prepared in March 2012 envisaging the deployment of both the Draglines of

Ghughus OC mine and Umrer OC mine. The proposed Extension Deep PR was

prepared in advance to facilitate the timely acquisition of required land, village

rehabilitation and completion of other preparatory activities. The Project Report

was placed in the meeting of Technical sub-committee for projects of WCL Board

held on 06.07.2012 for consideration. After detailed deliberation, TSC directed to

consider following points in the PR before placing it in next WCL Board meeting:-

1. Provision of additional land for re-alignment of proposed arterial road as

suggested by Area.

2. Obtain documentation from GM (IR) regarding scope of gainful utilization of

manpower to be inducted against land acquisition, duly approved by

competent authority considering manpower requirement of WCL as a whole.

3. To consider new sale price of coal and to exclude solatium and interest on

cost of land from capital provision against land.

4. To include a note on cost benefit analysis of both options i.e. with and without

integrated Washery.



As per directive of TSC, PR was modified after incorporating the compliance of above observations & was submitted in September, 2012. WCL Board held on 5th February, 2014 recommended this report for first stage approval with capacity of 3.00 Mty without washery. Chronology of the previous approved reports are as follows:-

1.1.1 SALIENT FEATURES OF THE LAST APPROVED REPORT

Salient features of the previous approved PR of Mungoli Nirguda Extension

(Deep) OC prepared in September, 2012 in Partial Hiring Option are as follows:-

Sl. No. Name of PR Year of

Approval Technology

Adopted

Production Capacity

(Mty)

Approved Capital

(`.Crores)

1 PR for Mungoli OC, April 1994 20.01.1995 Shovel-dumper

Departmental Option 0.80 83.63

2 PR of Nirguda OC, July, 1998 25.05.1999 Shovel-dumper

Departmental Option 0.75 95.03

3 Note for Mungoli Nirguda Amalgamated OC mine 03.04.2003 Shovel-dumper Partial

Hiring Option 1.55 123.17

4 PR for Mungoli Nirguda extension (Deep) OC,

September, 2012 05.02.2014

Dragline & Shovel-dumper (Partial Hiring

Option) 3.00

372.52

Sl. No.

Particulars Partial Hiring Option (Sept.2012)

A General Parameters 1. Balance Mineable Reserves (Mt) 38.60 2. GCV of coal (kCl/kg) (0.05m dil. at each contact

point) 4674 (Grade-G 9)

3. Volume of Overburden Incl. R/H (Mm3) 256.81 3.1 Solid Overburden 246.86 3.2 Re-handing OB Volume 9.95 3.3. Average S/R (m3/t) (excluding RH OB) 6.40 4. Mine Capacity (Mty) 3.00 5. Manpower Requirement (Nos.) 646 6. Manpower Including surplus (Nos.) 670 7. Overall OMS (t) (Based on manpower requirement) 17.59



1.2

EXISTING STATUS

At present, the amalgamated Mungoli Nirguda OC is being worked by Shovel

dumper system of mining. The entire coal extraction and removal of part OB are

being done by departmental HEMM and rest OB is being removed by hiring/ out-

sourcing of HEMM. The various performance parameters of the mine from 2010-

11 to 2014-15 as per cost sheet are as follows:-

Sl. No. Description 2010-11 2011-12 2012-13 2013-14 2014-15 1 Coal Production (Dept.) (Mt) 3.06 3.29 3.29 3.60 4.00 2 OB Removal (Mm3) Dept.

Hiring Total

2.07 3.30 5.37

2.08 4.43 6.51

2.31 2.56 4.87

2.83 5.53 8.36

2.83 3.20 6.03

3 Stripping Ratio (m3/t) 1.75 1.98 1.48 2.32 1.51 4 Manpower (Nos.) 703 899 734 740 719 5 Cost of Production (`./t) 711.38 766.14 390.45 347.29 390.89 6 Selling Price of coal (`./t) 1202.31 1288.88 1135.26 1408.11 1561.20

Sl. No.

Particulars Partial Hiring Option (Sept.2012)

B Financial Parameters For Power Sector

Other Than Power Sector

8. Total Capital incuding WDV (`. in Crores.) 403.6091

9. Additional Capital Required (`. in Crores.) 372.5193

10. Cost of Production (`./t)

10.1 @ 100% of target capacity (`./t) 1198.38

10.2 @ 85% of target capacity (`./t) 1309.99

11. Av. Selling Price (Notified) (`./t) 1046.00 1397.50

12. Profit (`./t)

12.1 @ 100% of target capacity (`./t) (-) 152.38 199.12


13. Financial IRR @ 85% capacity (%) Negative 3.92 14. price to yield 12 % IRR @ 85% capacity (`./t) 1567.73 1567.73

15. Difference between price to yield 12 % IRR @ 85% capacity & Av. Selling Price (Notified) (`./t)

- 521.73 - 170.23



7 Profit (`./t) 490.93 522.74 744.81 1060.82 1170.31 8 Profit (` in crores) 150.12 172.01 245.11 381.90 468.11

1.3 JUSTIFICATION OF UPDATION OF PR

The Mungoli-Nirguda OC mine is reaching its approved limits and balance life of

existing Mungoli-Nirguda OC mine (with present rate of production) is about one

and half year (upto mid of year 2016-17). The coal is available beyond approved

limits and the PR for Mungoli Nirguda extension (Deep) OC mine was prepared in

September, 2012 to work the coal reserves in dip side beyond the present PR

boundary. This PR was approved by WCL subject to cost plus agreement with

the customer as the PR was not yielding desred IRR at 85% target capacity.

However, no such agreement has been done till date. In the mean-time, WCL

decided to survey off Marrion Dragline of Umrer OC which was proposed to be

deployed in the approved PR of Mungoli-Nirguda Extension (Deep) OC mine.

Moreover, the various new guidelines for PR preparation along with some other

changes as detailed below have also made it necessary to update this report :

(1) 10% of administrative overhead be adopted as administrative cost while

calculating IRR. However for calculating per tonne cost, existing

methodology with due adjustment for incremental production be adopted.

This is as per decision of 317th CIL Board meeting held on 13/07/2015.

(2) In pursuant to Cenvat Credit rules intimated by WCL, Service tax has been

excluded while calculating hiring rates for Overburden.

(3) Initial basic + 7.97% should be considered as wages cost for the

provisioning in the PR for Greenfield and Brownfield projects for the

purposes of IRR calculation for both UG and OC projects. This is as per

decision of 317th CIL Board meeting held on 13/07/2015.

4) WCL has decided to survey-off Marrion Dragline of Umrer OC and hence

Dragline of only Ghughus OC has been proposed for deployment in this

updated PR.



5) 5% mining loss has been considered in this updated PR against 10%

mining loss taken in previous approved report.

In the earlier PR, while estimating mineable reserves 10% geological losses

and 10% mining losses were considered to arrive at the mineable reserves.

Thus, out of 59.44 Mt net in-situ geological reserves, the mineable reserves

worked out to 38.60 Mt (59.44 Mt x 0.9 x 0.9 - 9.55 Mt (Blocked due to

surface features and rib in Dragline cut). Now taking mining losses as 05%

and no losses due to Dragline application as no rib is proposed to be left

(earlier 3.5% losses were assumed due to rib left in dragline cut) &

realignment of Quarry surface results in increases of reserves by 7.25 Mt. 6) The existing Mungoli Nirguda OC mine has produced more than 3.50 Mt in

last two years whereas the earlier approved PR of Mungoli Nirguda

Extension (Deep) OC has the target capacity of only 3.00 Mty. WCL wants

to explore the possibility to enhance the target capacity of the PR in view of

higher production achieved by the existing mine.

Due to deployment of only one 24/96 Dragline of Ghughus OC in the

proposed extension mine, it is not possible to expose 3.50 Mty coal by this

Dragline. So, to achieve target capacity of 3.50 Mty, the mine has been

divided into two patches i.e., Dragline patch and Shovel Dumper patch. It is

proposed that Dragline patch will produce 2.50 Mty whereas Shovel

Dumper patch will produce 1.00 Mty. 7) There is some change in the floor contour of the extension block on account

of recent drilling done by CMPDI. Due to the above reasons, it became essential to update the approved PR of

Mungoli Nirguda Extension (Deep) OC mine and accordingly this PR was

updated in September, 2015 for the following two options : i) Option-1 : Partial Hiring Option with Departmental Surface Miner

In this option, coal extraction by Surface Miner with Pay-loaders and Dumpers,

parting OB removal by Shovel Dumper and Dozer with Ripper attachment and



removal of 15m-20m OB above coal seam by Dragline operation were proposed

by departmental equipment. Rest OB removal above Dragline bench was

proposed by hiring of HEMM.

ii) Option-2 : Partial Hiring Option with Out-sourcing of Surface Miner

In this option, only Dragline operation to remove 15-20m OB above coal seam

was proposed by departmental equipment. Entire coal extraction by Surface

Miner, parting OB removal by Shovel Dumper and Dozer with Ripper attachment

and OB removal above Dragline bench was proposed by hiring of HEMM. The above updated PR of Mungoli Nirguda Extension (Deep) OC mine prepared

in September, 2015 was discussed at WCL (HQ) on 10.10.2015. After detailed

deliberation, it was decided to further update the PR after incorporating the

following :- 1) Updated PR is to be prepared for Partial hiring option with Out-sourcing of

Surface Miner. Dragline operation and removal of Top OB by existing

HEMM capacity will be done departmentally. 2) Existing manpower of the mine to be maintained. 3) Entire workload of coal and parting shall be done by hiring of HEMM,

accordingly Surface miner dozer with ripper and other equipments under

this head shall be on hiring. 4) Year-wise grade of coal to be calculated in the PR for economic evaluation 5) The provision of coal dispatch from mine to proposed Railway Siding near

Penganga OC by belt conveyor, Silo and Rapid Loading arrangement

proposed in the updated PR of September, 2015 was discussed in detail. It

was decided to reduce the capital provision made in the PR by removing the

provision of belt conveyor from mine site to Railway Siding. Some changes

in Rapid loading system were suggested to reduce total capital of the PR. 6) 2 nos. of 280 hp motor graders to be provided in common equipment 7) Diversion of 11 kV Express line to be included in the PR 8) 1 no. of Vibratory Compactor to be included in the PR



As per the above decisions, this PR has been prepared in November 2015 after incorporating the compliance of above observations.

1.4 SALIENT FEATURES OF UPDATED PR AND EARLIER APPROVED PR

The Salient Feature of Updated PR (November, 2015) and earlier approved PR

of September, 2012 (1st Stage approval on 05.02.2014) are summarized below:

Salient Features of Updated PR And Earlier Approved PR

Sl. No.

Particulars

Approved PR (Sept., 2012)

(Approved on 05.02.2014)

Partial Hiring Option

Updated PR (Nov., 2015) Partial Hiring

Option

A General Parameters 1. Balance Mineable Reserves (Mt) 38.60 45.85 2. GCV of coal (kCl/kg) (0.05m dilution at each

contact point) 4674

(Grade-G 9) 4674

(Grade-G 9) 3. Volume of In-situ OB 246.86 269.85

3.1 Re-handling OB Volume (Mm3) (Incl Top Soil) 9.95 16.18 3.2 Trench Cutting OB (Mm3) 2.78 3.3 Average S/R (m3/t) (excluding RH OB) 6.40 5.88 4. Mine Capacity (Mty) 3.00 3.50 5. Manpower Requirement (Nos.) 646 550 6. Existing Manpower 720 839 7. Overall OMS (t) 17.59 24.105 B Financial Parameters For Power

Sector For Power

Sector 8. Total Capital incuding WDV (`. in Crores.) 403.6091 498.4176

9. Additional Capital Required (`. in Crores.) 372.5193 461.8319

10. Cost of Production (`./t)

10.1 @ 100% of target capacity (`./t) 1198.38 1038.41

10.2 @ 85% of target capacity (`./t) 1309.99 1128.02

11. Av. Selling Price (Notified) (`./t) 1046.00 1216.50

12. Profit (`./t)





13.1 Financial IRR @ 100% capacity Negative 22.67 13.1 Financial IRR @ 85% capacity Negative 13.30

Note:- Only 10% Administrative over head charges considered in cash flow for

IRR calculations 1.5 CONSTRAINTS / RISK IN MINING

Following constraints / risks in mining are anticipated in the proposed Mungoli

Nirguda Extension (Deep) OC mine :

1. The part of proposed mine area is under the HFL of Wardha river / Nirguda

nala & Penganga river, (recorded HFL is 185.165 m in the year 1959). In this

report it is proposed to make a flood protection embankment 6.0 m above

HFL around the proposed mine. It is also proposed here that pitching of

embankment on river side may be done upto HFL level to further strengthen

the proposed embankment. Capital provision in this regard has been made in

Appendix A.8.1 of this PR. The embankment would be constructed by

dumping mined out / re-handled overburden.

2. Mungoli village is located very close to rise side boundary of existing mine

and also surrounded by external OB dump of existing mine. Hence, shifting

and rehabilitation of Mungoli village has been proposed in this PR.

3. Present alignment of arterial road would have to be diverted as it would be

covered below the proposed external OB dump. Capital provision for

realignment of 4.5 km length of road has been made in Appendix A.8.1 of this

PR. Part of existing arterial road (about 1.0 km) would be used by the

proposed project for which a capital provision has been made for

strengthening & widening of road. It is also proposed to divert 150mm water

pipeline passing close to the property.

4. Mine is presently facing some problem of stability of external OB dump. It is

proposed in the PR to conduct a slope stability study, for which capital

provision has been made. Moreover, it is proposed to excavate black cotton



soil (about 2.78 Mm3) beneath the proposed extension area of external OB

dump for better stability of dump.

2.0 MARKETABILITY & JUSTIFICATION

The mines of WCL are under constant pressure to meet the increasing

demand of non-coking coal for power plants and other bulk consumers from

Western as well as Southern part of country. The justification of this mine has

been studied in the light of estimated demand for coal from WCL and production

forecast from existing, completed, ongoing and future projects of WCL.

Following table shows the deficit in availability of coal, including middlings from

the various Existing, Completed, On-going, and Future Projects of WCL:

Sl.

No. Sector

Projections of Surplus / Deficit of Coal (Mt)

2015-16 2016-17 2017-18 2018-19 2019-20

1 Demand for coal 69.08 69.28 70.08 70.58 70.58

2 Availability of coal 45.000 48.00 50.00 55.00 60.00

3 Surplus / Deficit (+/-) (-) 24.08 (-) 21.28 (-) 20.08 (-) 15.18 (-) 10.58

The availability of coal shown above includes the coal production from Mungoli

Nirguda Extn. Deep OC mine. From the above table, it is clear that the deficit in

supply of coal from WCL as a whole will be (-) 24.08 Mt in 2015-16 which will be

narrowed down to (-) 10.58 Mt in 2019-20 provided WCL achieved the target of

60.00 Mt production in 2019-20. New mines/ projects have to be opened or

expansion of existing operating mines has to be done by WCL in order to meet

the ever increasing demand of coal. There is a deficit in supply of coal from the

mines of WCL and therefore a ready market exists for the coal produced from

proposed Mungoli Nirguda Extn. Deep OC mine.



Thus, there will be no problem in marketing of 3.50 Mty coal from Mungoli

Nirguda Extn. Deep OC mine in view of large deficit in availability of coal from the

mines of WCL.

3.0 PROJECT SITE INFORMATION 3.1 LOCATION & COMMUNICATION

Mungoli Block is located in a triangle shaped flood plain between Wardha and

Penganga rivers just opposite to the Cement Factory of ACC near Ghughus. The

present area under report falls in Survey of India Topo-sheet No. 56 M/1. The

area falls in the Wani tehsil of Yeotmal district of Maharashtra State. The area is

bounded by Latitude N190 50’ 54.36” and N190 54’ 57.17” and Longitude E790 05’

24.04” and E790 07’ 34.02”. National grid coordinates of the area are Latitude

N1065744.4961 & N1073206.1058 and Departure E3009417.9388 &

N3013199.9785.

The Block is approachable from Wani Township by all weather metalled road

from Wani to Sakhara village. The distance is about 35 kms. The area can also

be approached from Tadali by all weather metalled road via Ghughus village. The

nearest railhead is Ghughus located on Ghughus -Tadali branch line of Central

railway. The distance between Tadali Junction on Delhi-Chennai (GT) railway line

and Ghughus is around 18kms.

3.2 TOPOGRAPHY & DRAINAGE

The entire area of the block is covered by agriculture land with black cotton soil

and exhibits a gently undulating topography. The altitude of the area ranges

between 168.3m (RL of B/H MWN 20) and 196.1m (RL of B/H MWK 36) based

on borehole data drilled in the area. Jowar, cotton, paddy, and pulses are grown

on this fertile flood plain.

The main drainage channels are Wardha River in the north and Penganga River

in the south. General slope of the surface is towards these rivers which submerge



the outlying area during high flood. HFL of Wardha River at Ghugus is 185.165m.

During unprecedented heavy rain fall in 1994 flood waters of Wardha and

Penganga Rivers did not cross this HFL mark in this area. Therefore, 185.165 m

has been considered as HFL for this area 4.0 GEOLOGY AND DEPOSIT APPRAISAL 4.1 EXPLORATION STATUS

Total 192 boreholes were drilled by DGM (MS), MECL and CMPDI within and

outside of Mungoli Nirguda combined block with total meterage of 30660.74 m

during different phases of drilling. The present assessment is based on the data

of 177 boreholes (27027.24m) drilled within the project area under consideration.

15 boreholes (3633.50m) have been drilled outside the project area. The year-

wise and agency-wise break-up of boreholes drilled by different agencies are

tabulated below : Agency Period of

Drilling

Boreholes within Block

Boreholes outside Block

Total Boreholes

No. & Series of boreholes

Meterage Drilled (m)


Meterage Drilled

(m)


Meterage Drilled (m)

DGM(MS) Nov. 1982 to

July 1987

64

(MG)

7155.64 64

(MG)

7155.64

MECL July, 1988 to

Jan. 1989

10

(MWMG)

760.25 10

(MWMG)

760.25

MECL April 1987 to

April 1989

27

(MWN)

3516.00 05

(MWN)

1333.10 32

(MWN)

4849.10

MECL June, 1988 to

Nov., 1991

51

(MWK)

11728.35 09

(MWK)

2090.40 60

(MWK)

13818.75

CMPDI Aug., 2004 to

Feb., 2005

09

(CMWMG)

1360.00 01

(CMWMG)

210.00 10

(CMWMG)

1570.00

CMPDI Jan., 2010 to

June, 2010

16

(CMWMG)

2507.00 16

(CMWMG)

2507.00

TOTAL 177 27027.24 15 3633.50 192 30660.74

4.1.1 Borehole Density



The total area of Mungoli Nirguda Combined block is 11.81 sq. km. and total no.

of boreholes drilled within the block area is 177. Thus, the borehole density works

out to 14.06 boreholes/sq.km. The total area of the proposed mining block is

5.50 sq. km and borehole density is 9 b.h./sq.km.

4.2 GEOLOGICAL BLOCK BOUNDARY

The block boundary of Mungoli Nirguda Combined Block is as follows:

Direction Boundary North Southern bank of Wardha river/Nirguda Nala

East Northern Bank of Penganga River

South Subcrop of Composite Seam (below Kamthi formation)

West Faults F15 – F15 / F23 – F23 (at the floor of Section - D)

4.3 GEOLOGICAL STRUCTURE OF THE BLOCK 4.3.1 Strike & Dip

The general strike in the eastern part of the block is nearly E-W and NE-SW and

in the western half it is NW-SE and WNW-ESE. The dip is northerly and varies

from 7o to 9o. The corresponding gradient varies from 1 in 8 to 1 in 6.

The general strike of Coal Seam within the project area is N 14 E- S 14 W.

Gradient of Coal Seam within project area is 1 in 10 which flatters towards the

subcrop side. The Dip of the Coal Seam is S 760 W.

4.3.2 Faults

The area of the block is traversed by 27 numbers of faults. Most of the faults are

oblique faults, cutting across strike of the strata. Some of the faults are continuing

from the northern adjoining block i.e. Nakoda UG to OC Block. The major fault

(F15 – F15) and fault F23 – F23 demarcates western limit of the block. The faults

have been numbered as F1 - F1, F2 - F2 & F3 - F3 and so on upto F24 – F24 and

three faults encountered in the mine workings have been named as f1 - f1, f2 - f2 &

f3 - f3.



Due to thick cover of Soil / Kamthi rocks, none of the faults are exposed on

surface. Therefore, presence of faults have been interpreted from the direct

evidence generated through boreholes drilled in the area, except fault f1 - f1, f2 - f2

& f3 - f3, which have been encountered in the mine workings.

Faults have been interpreted by direct evidences like omission of full or part

thickness of seam, reduction in parting between the seams and indirect evidence

like difference in floor reduced levels on either side of the fault. All the faults have

been considered as Pre-Kamthis and therefore, their surface position has been

projected upto the floor of Kamthi Formation. The details of the individual faults

are given in following table :

DESCRIPTION OF FAULTS, MUNGOLI NIRGUDA COMB. BLOCK

Fault No. Strike of fault

Amount of throw & Dip

Direction

Linear Extension (approx.)

Evidence

f1 E-W 0 - 8 m. Northerly

400 m.

i. MG 05 - Sec. A & B are faulted ii. MG 51- Floor of Sec. D is

faulted. iii. Encountered in mine workings.

f2 NE-SW 0 - 3 m. SE

300 m. i. Encountered in mine workings.

f3 NW-SE 0 - 4 m. SE

400 m. i. MG 55 - Floor of Sec. D is faulted

ii. Encountered in mine workings. F1 N-S 0 - 5 m.

Westerly 800 m. i. MWN 23 – Roof of Sec. A is

faulted F2 ESE-WNM 0 - 5 m.

NNE 750 m. i. MG 38 – Floor of Sec. D is

faulted ii. FRL difference on either side of

fault. F3 NW-SE TO

WNM-ESE 0 - 60 m.

SW to SSW 1.8 km.

i. MG 36 – Sec. A, B, C & Roof of Sec. D is faulted ii. FRL – difference on either side

of fault. F4

(F2 of Nakoda UG to OC)

NNW-SSE (in Northern part)

& NNW - SSE (in Southern part)

0 - 43 m Easterly

3.7 kms i. MWN 08 & 11 – All sections faulted

ii. MWN 19 – Sec. A, B and C are faulted

iii. FRL difference on either side of the fault

F5 NW-SE (in 5 - 10 m. 1.5 kms. i. FRL difference on either side of





Direction


Evidence

northern part) & WNW-ESE (in Eastern part)

Northerly the fault.

F6 NNW-SSE 0 - 5 m. Easterly

0.55 km i. MWN 02 – Sec. A is faulted in



Direction


Evidence

F7 (F1A of Nakoda UG to OC)

NNW-SSE 0 - 10 m. Easterly

0.55 km i. MWN 09 – Sec. C is faulted

F8 E-W 0 - 3 m. Northerly

0.50 km i. MWN 12 - Section A is faulted

F9 E-W (in Western part) to WNW-ESE in

Eastern part

40 m. Northerly

0.90 km i. MWN 24 - Floor of Sec. D is faulted

F10 (F1 of

Nakoda UG to OC)

NW-SE to NNW-SSE to NW-SE from Northern

part to Southern part

10m – 135m Westerly

2 km. i. MWN 29 – Sec. A, B & C are faulted

ii. MWN 32 – Sec. A, B, C, and roof of section D are faulted

F11 (F6 of

Mungoli Extn. GR)

NNE-SSW to N-S to NNW-SSE

to WNW-ESE from Northern to

Southern part

28m. – 130m.

Westerly

6 km i. MWK 26 & CMWMG 26 - All sections are faulted

ii. MWK 27 - Floor of sec. B and Sec. C & D are faulted

iii. MWMG 09 – Sec. A, B, C and Roof of Sec. D are faulted

iv. FRL difference on either side of the fault

F12 WNW-ESE to NW-SE to WNW-ESE

10m - 50m Westerly

1.5 km i. FRL difference on either side of the fault

F13 NW-SE 0m - 8m Westerly

1.1 km i. MWN 07 - Roof of sec. D is faulted

ii. MWN 10 - Roof of sec. A is faulted

iii. MWN 12 - Floor of sec. D is faulted.



F14 NW-SE to N-S to NNW-SSE to N-S from

Northern part to Southern part

11m – 210m Easterly

6.8 km i. CMWMG 73 – Sec. A & B faulted ii. CMWMG 69 - All section faulted iii. MWK 104 - Floor of Sec. D

faulted iv. MWK 12 – Sec. D is faulted v. MWK 33, 13, 73, 22 - All

sections faulted vi. FRL difference on either side of

the fault



Direction


Evidence

F15 Almost N-S

5m – 177m Easterly

7.50 km i. CMWMG 74 - All Sections faulted

ii. CMWMG 71 – Sec. A, B, C and roof of sec. D are faulted,

iii. MWN 30 – Sec. D is faulted iv. MWK 86 – Sec. A, B & C faulted v. MWK 09 – Sec. A, B and roof of

Sec. C faulted vi. MWK 36 - All sections faulted vii. MWK 94 – Sec. A, B, C, and

roof of Sec. D faulted, viii. MWK 10, 54 & 55 - All sections

faulted ix MWK 51 – Sec. A & B faulted x. MWK 96 - all sections faulted

F16 NNW-SSE

0 – 3m Easterly

0.25 km i. MWK 87 - Floor of Sec. D faulted

F17 NNW-SSE

40m Westerly

0.55 km i. Difference in FRL on either side of fault

F18 (F7 of

Mungoli Extn GR)

NW-SE 22m – 40m Easterly

1.3 km i. MG 23 - Floor of Sec. D faulted

F19 N-S 22m – 75m Easterly

2.6 km i. MWK 61 – Sec. B, C and floor of Sec. D faulted

ii. FRL difference on either side of the fault

F20 NE-SW to NNE-SSW

15m – 20m Westerly

1.1 km i. MWK 09 - All Sections faulted

F21 N-S

11m Westerly

0.35 km i. MG 22 – Sec. C is faulted

F22 NW-SE TO NNW-SSE TO

N-S

22m – 55m

Westerly

2.1 km i. MWK 140 – Sec. B & C are faulted

ii. MG 24 – Sec. C & D are faulted iii. MWK 92 – Sec. D is faulted

F23 N-S 10m 0.5 km i. MWK 48 – Sec. A & B are



Easterly faulted ii. MWK 46 -Floor of Sec. D is

faulted. F24 N - S Westerly 4.4 Kms. i. MG 21, 54, 56, 57 & 58 – Incrop

is faulted.

Note – Fault no. in bracket indicates fault no. of the adjoining Block. The area is

free from any igneous intrusive

4.4 SEQUENCE OF COAL SEAMS AND PARTING WITHIN THE BLOCK AREA

The sequence of coal seams encountered in boreholes drilled in Mungoli Nirguda

Comb. Block in ascending order is furnished in Table below.

Coal seam/ Parting

Thickness range (m) Generalised thickness range( m)

No. of B.H. inter-

section Minimum Maximum Minimum Maximum

Section – A 0.21 (MWN 03)

4.68 (CMWMG 59)

0.66 (CMWMG61)

3.34 (MG 40) 115

Parting 0.32 (MG 56)

5.49 (MWK 27)

Section – B 0.08 (CMWMG 08)

3.75 (MWMG 04)

0.51 (CMWMG 61)

3.12 (MG 23) 117


7.93 (MWK 16)

Section – C 0.24 (MWK 148)

4.43 (MWK 48)

0.53 (MG 27)

4.43 (MWK 48) 123


8.00 (MWN 03)

Section - D 5.07 (MWK 51)

12.01 (MG 27)

6.07 (CMWMG71)

11.07 (MWN 04) 117

Composite Sections – A+B+C+D

10.07 (MWN 03)

19.28 (MG 26)

11.16 (MWK 16)

17.48 (MWMG 04) 93

It is seen from the above table that generally seam sections encountered in

Mungoli Nirguda Combined Block is potential and persistent in nature.

4.5 QUALITY OF COAL The seam-section wise weighted average quality details without dilution and with

dilution of 5cm. and 10cm. at each contact point are summarized in the following

table:



Seam/ Section

Quality without dilution

Quality with dilution of 0.05m

Quality with dilution 0.10m

M% Ash% GCV M% Ash% GCV M% Ash% GCV A 7.5 32.7 4386 7.3 35.0 4204 7.0 37.1 4045

B 7.6 25.9 5012 7.4 28.8 4774 7.2 31.4 4552

C 7.3 30.3 4641 7.1 32.8 4437 7.0 35.1 4233

D 7.5 27.5 4876 7.5 28.1 4825 7.4 28.7 4777

(A+B+C+D) 7.5 28.4 4791 7.4 29.9 4674 7.3 31.2 4562

4.6 GEOLOGICAL RESERVES 4.6.1 Selection of sectors

Based on the fault pattern, the entire Mungolui Nirguda Combined block has been divided into 15 sectors for the purpose of reserve estimation. Out of these 15 Sectors, only Sector S-2, S-3, S-4 & S-7 fall within the proposed project area. The limits of these sectors are detailed below :

Sector Sector Boundary North South East West

S-1 (Proved) Wardha River F2 - F2 Wardha river / Incrop

F4 – F4 / F3 – F3

S-2 (Proved) F2 - F2 F3 – F3 Incrop / F24 – F24 F3 – F3 S-3 (Proved) F3 – F3 F5 – F5 Incrop / F24 – F24 F4 – F4 S-4 (Proved) F5 – F5 F4 – F4 F24 – F24 / Mungoli

OC (Coal top) F4 – F4

S-5 (Proved) Wardha River F10 – F10 F4 – F4 F10 – F10 S-6 (Proved) Wardha River /

F9 – F9 F12 – F12 / F11 – F11

F10 – F10 / F11 – F11

F15 – F15 / F12– F12

S-7 (Proved) F11 – F11 F11 – F11 F10 – F10 / F4 – F4 / Mungoli OC (Coal

Top) / Incrop

F11– F11

S-8 (Proved) F12 – F12 200m Line from BH

MWK 138

F11– F11 F15 – F15 / F14– F14

S-9 (Indicated) F14– F14 Penganga River

F14– F14 F23 – F23 / F15– F15

S-10 (Indicated) F22– F22 F22– F22 F22– F22 F15– F15 S-11 (Indicated) 200m Line from

BH MWK 138 F20– F20 F11– F11 F15– F15




F19 – F19 / F11– F11

F14 – F14/ F20– F20

S-13 (Proved) F11– F11 Penganga River

F11– F11 F17 – F17


F17– F17 F18 – F18


F18– F18 F19 – F19

4.6.2 Geological reserves

The calculation of reserve estimation has been done through minex software. To

cross check the reserves the calculation of area for reserve has been done

through AutoCAD software The average seam thickness has been considered for

calculation of reserves between the consecutive isochores. Thus the gross

reserves have been estimated after multiplying the average thickness with the

area and then by specific gravity value of the respective grades. To arrive at net

proved geological reserves, 10% deduction has been made from gross reserves

to account for losses due to unforeseen geological variations.

Thickness-wise Net Proved and Gross Indicated reserves in Mungoli Nirguda

Combined geological Block for entire coal section A+B+C+D are tabulated below:

Thickness-wise Geological Reserves

Seam Thickness Geological Reserves (Mt) Net Proved Gross Indicated Total

8m – 10m - 0.083 0.083 10m – 12m 3.421 8.380 11.801 12m – 14m 28.623 32.703 61.326 14m – 16m 62.438 49.933 112.371 16m – 18m 12.021 17.849 29.870 18m – 20m 0.055 - 0.055

TOTAL 106.558 108.948 215.506

Sector-wise reserves of coal, Area, Overburden and Stripping Ratio in Mungoli

Nirguda Combined geological block are tabulated below :

Sector Area Km2 Reserves (Mt) Overburden (Mm3) Stripping Ratio (m3/t) Category : Net Proved Coal Reserves (Mt)

S – 1 0.545 10.405 30.721 2.95



S – 2 0.420 7.506 15.805 2.11 S – 3 0.461 9.444 43.589 4.62 S – 4 0.583 11.757 56.946 4.84 S – 5 0.255 4.860 11.165 2.30 S – 6 0.562 11.002 95.536 8.68 S – 7 2.144 44.205 201.264 4.55 S – 8 0.264 5.354 56.241 10.50

S – 13 0.085 2.025 8.570 4.23 Sub - Total 5.319 106.558 519.837 4.88

Category : Gross Indicated Coal Reserves (MT) S – 9 1.976 42.263 485.157 11.48

S – 10 0.259 4.833 81.619 16.89 S – 11 0.747 16.220 175.430 10.82 S – 12 0.820 20.222 249.700 12.35 S – 14 0.150 3.641 28.472 7.82 S – 15 0.892 21.769 218.807 10.05

Sub - Total 4.844 108.948 1239.185 11.37

Note : - Geological Sector S-1, S-5, S-6, S-8, S-9, S-10, S-11 S-12 S-13 S-14 S-15 have not been considered as either it is indicated or forming part of captive block. Reserves from S-2, S-3, S-4 and S-7 have been considered for mining in this report beyond boundary of already approved PR.

5.0 MINE BOUNDARY, MINEABLE RESERVES, TARGET & LIFE 5.1 MINE BOUNDARY DELINEATION

The Mungoli Nirguda Combined geological Block is surrounded by Nirguda Nalla

/ Wardha River on Northern side and Penganga River on Southern side. The rise

side (Eastern side) of block is restricted by approved limits of existing mine & in

the dip side (Western side) by Fault F15- F15 / F23- F23. Considering the geological

structure of the Block and during presentation of Conceptual Note at CMPDI

(HQ), it was decided that dip side limit would be fixed along fault F11- F11 (having

down-throw of about 100m). The property beyond fault F11- F11 is steeply dipping

and traversed by many faults. Moreover, reserves in this area are mostly of

indicated category. It is suggested that the property beyond fault F11- F11 would

be mine by underground method after proving of reserves. Geological Sector S-1,

S-5, S-6, S-8, S-9, S-10, S-11 S-12 S-13 S-14 S-15 have not been considered as



either it is indicated or forming part of captive block. Thus the proposed Mungoli

Nirguda Extension (Deep) OC mine has been planned in Sectors S-2, S-3, S-4 &

S-7 in the dip side of existing Mungoli Nirguda OC mine. The mine boundary of the proposed Mungoli Nirguda Extension deep OC mine is

as follows : Mine Boundary North : Safe distance from Nirguda Nala South : Safe distance from Penganga River East : Floor limit of existing approved mine West : Fault F11-F11

5.2 MINEABLE RESERVES

The mineable reserves in the proposed Mungoli Nirguda extension Deep OC

mine has been assessed as follows :

SEAMWISE DETAILS OF MINEABLE RESERVES.

Name of Seam

Floor or surface

area Considered

in ha

Average Thickness

'm'

Geological Reserves

Mt

Geological Losses

Mt

Mining Losses

Mt

Mining Losses in batter and

blocked under surface features (Mt)

Mineable Reserves

Mt

Section A 204.12 2.30 9.37 0.94 0.42 0.8 7.21 Section B 152.06 2.00 5.08 0.51 0.23 0.42 4.02 Section C 150.96 1.90 5.99 0.6 0.27 0.51 4.61 Section D 238.13 9.00 39.01 3.9 1.76 3.35 30.01

TOTAL 238.13 15.20 59.45 5.95 2.68 5.08 45.85 Mining losses and dilution criteria: 10% geological loss for geological uncertainties and 5% loss on account of

mining losses have been considered to workout net mineable reserves. 5.3 TARGET PRODUCTION & MINE LIFE

The proposed report has been prepared for a target capacity of 3.50 Mt/annum.



The parameters of opencast mine field and technical conditions of its

development make this target feasible with normal indices namely length, width &

depth of the excavated block, number of coal seams, seam gradient, method of

mining, location of equipment deployment, etc. Moreover, with proposed target of

3.50 Mty the rate of deepening works out to about 10m per year, which is close to

prevailing rate of deepening in the existing & adjacent blocks.

Considering total mineable reserves of 45.75 Mt and annual target capacity of

3.50 Mty, the total life of the project works out to 15 years including one year

construction period. Thus, the total production life of the project is 14 years (2nd

year to 15th year). The existing Mungoli Nirguda OC mine will continue upto first six months of

2016-17 and hence the proposed Mungoli Nirguda Extension (Deep) OC mine

will start production from 2nd half of 2016-17. The first year (2015-16) will be

construction period and will be utilized for land acquisition etc. The break-up of mine life of proposed Mungoli Nirguda extension (Deep) OC

mine is as below :

Construction period - 1 year (2015-16) Production Build-up period - 1 year (2016-17) Target Production Period - 12 Years (2017-29) Tapering Production Period - 1 year (2029-30)

Total Life - 15 Years 6.0 METHOD OF MINING

6.1 MINE PARAMETERS The different Mine parameters of proposed Mungoli Nirguda Extension (Deep)

OC are as follows :

Sl. No. Particulars Qty. 1. Area of the Quarry a) On floor (ha) (Including Existing Quarry) 394.22 b) On surface (ha) (Including Existing Quarry) 513.47 2. Depth (m) a) Initial 100



b) Final 150 3. Gradient of Seams 1 in 10 to 16.5 4. Average thickness of composite seams (m) 15.20 5. Average Strike length (m) 4000 6. Width on surface (m) [dip rise] (Incl Existing Quarry) 1500 7. Width on floor (m) [dip rise] (Including Existing

Quarry) 1000

Sl. No. Particulars Qty.

8. GCV (kCal/kg) (with 5cm dilution at each contact point) 4674 (G - 9) 9. Mineable Reserves (Mt) 45.85

10. Total OB Excluding Re-handling (Mm3) 269.85 11. Trench cutting below proposed external dump (Mm3) 2.78 12. Total Re-handling (Mm3) 8.40 13. Total OB (including Rehandling) (Mm3) 281.03 14. Average stripping ratio Excluding Re-handling (m3/t) 5.88 15. Average stripping ratio including Re-handling (m3/t) 6.12

6.2 SELECTION OF MINING METHOD

Presently Shovel-Dumper combination is being practiced in existing Mungoli

Nirguda OC mine for extraction of coal as well as removal of parting and Top OB.

However, it is proposed in this report to deploy Surface Miner on hiring for coal

extraction to ensure proper quality of coal by eliminating blasting thereby

reducing the contamination of coal. The gradient of coal seam (1 in 10 to 1 in

16.5) in the proposed mine is favorable for deployment of Surface Miner. In the proposed mine, there is a parting of thickness ranging from 0.21m to

12.01m between various sections of the coal seam. Since, coal extraction has

been proposed by Surface miner, separate drilling and blasting for parting is

required which is difficult at many places due to lesser thickness of parting. Therefore, it is proposed to deploy Dozer with Ripper attachment at Mungoli

Nirguda extension (Deep) OC mine by outsourcing agency in addition to shovel &

dumpers to remove parting separately. Blasting in parting will be done where

thickness of parting is more to ensure that blasting is limited to parting only.



Deployment of Dragline has been proposed in this project considering favourable

geo-mining condition. Dragline proposed to be deployed in Mungoli Nirguda

Extension (Deep) project is surplus dragline of existing Ghughus OCM. In

addition to this, It is proposed to deploy existing Departmental HEMM to remove

4.00 Mm3 (Excluding Dragline workload) of OB departmentally. Rest OB shall be

removed by hiring of HEMM above Dragline bench. The proposed Mungoli - Nirguda Extension (Deep) OC mine has been planned for Partial Hiring option. In this option, coal extraction by Surface Miner with Pay-loaders and Dumpers, parting removal by Shovel Dumper and Dozer with Ripper attachment is proposed on hiring along with part of Top OB. Removal of about 20m OB above coal seam by Dragline operation and 4.00Mm3 OB (to maintain existing departmental capacity) by shovel dumper is proposed by departmental equipment.

6.3 EQUIPMENT SELECTION

The existing as well as proposed equipment in Mungoli Nirguda extension (Deep)

OC project are tabulated below:

MAJOR HEMM PROVISION

Sl. No.

EXISTING EQUIPMENT PROPOSED EQUIPMENT

Particulars Nos. Particulars New/ Replacement Nos.

A) FOR OB

1 24/96 Dragline 1 24/96 Dragline Transfer from Ghughus OC 1

2 4.5 to 5.5 m3 Diesel Hyd Backhoe 4 4.5 to 5.5 m3 Diesel Hyd

Backhoe Replacement 4

3 35T RD Dumpers 1

60T RD Dumpers Replacement 24

50T RD Dumpers 11 60T RD Dumpers 12 New 2

4 160 mm dia. Drill 5 250 mm dia. Drill Replacement 2 160mm dia. Diesel Drill Replacement 3

5 320 HP Dozer 6 410 HP Dozer Replacement 6 B) COMMON 1 Mobile Crane 30/40t NIL Mobile Crane 30/40t New 1



2 Mobile Crane 8t 2 Mobile Crane 8t Replacement 2

3 2.8 m3 Diesel Hyd. backhoe 1 2.8 m3 Diesel Hyd.

backhoe Replacement 1

4 28kl Water Sprinkler 2 28kl Water Sprinkler Replacement 2

5 6.5m3 Front End Loader 1 6.5m3 Front End Loader Replacement 1

Sl. No

EXISTING EQUIPMENT PROPOSED EQUIPMENT

Particulars Nos. Particulars New/ Replacement

Nos.

6 280 HP Motor Grader 1 280 HP Motor Grader Replacement 1

New 1

7 Vibratory Compactor NIL Vibratory Compactor New 1

8 Mobile Service Unit NIL Mobile Service Unit New 1

9 Diesel Bowser, 8kL NIL Diesel Bowser, 8kL New 1

10 Tyre Handler NIL Tyre Handler New 1

11 Fire Fighting Truck NIL Fire Fighting Truck New 1

12 Float Engine assembly 24 Float Engine assembly Replacement 24

New 2

C) LAND RECLAMATION

1 460 HP Wheel Dozer 1 460 HP Wheel Dozer Replacement 1

The specification of Dragline proposed to be shifted from Ghughus OC to the

proposed Mungoli Nirguda Extension (Deep) OC mine are as tabulated below :-

DRAGLINE SPECIFICATION

Sl. No. Particulars 24/96 Dragline 1 Commissioned on 08.12.1991 2 Bucket capacity 24 m3 3 Boom 96 m 4 Boom angle 30o 5 Weight of machine 18880 t 6 Basic dia. 15.25m 7 Clearance under upper frame 8 Ground pressure 0.96 kgf/cm2 9 Step length 2.28 m



10 Weight of load bucket 77 t 11 Max. dump height 38.2 m 12 Max. dump reach 88.0 m 13 Digging depth 74.5 m 14 Overall width (shoe to shoe) 22.6 m 15 Dia. Of tail circle 15.25 m 16 Walking speed 0.24 kmph 17 Productivity (mm3/yr) 3.45

6.4 MINING SYSTEM AND SYSTEM PARAMETERS 6.4.1 Width & Height of Benches

In this report, it is proposed to remove top OB after maintaining existing capacity

(Top OB of shovel dumper patch along with one bench above Dragline bench

shall be removed by departmental HEMM) it is envisaged that OB benches above

Dragline bench as explained shall be removed by hiring / out-sourcing of HEMM.

Therefore, the width and height of benches in OB above Dragline bench will

depend on the size of HEMM to be deployed by hiring/ out-sourcing agency.

However for calculation purpose OB bench width has been proposed as 10m and

width has been proposed as 20 and 30 m respectively for non working and

working benches. Surface Miner along with entire set of HEMM for parting removal is proposed on

hiring basis. The operations of surface miner requires larger width of coal

benches. Thus the width of coal bench will depend on size of surface miner being

deployed by hiring agency. However for calculation purpose coal bench width is

assumed as 20 to 30 m. Haul road would be constructed on the floor of the quarry at a gradient of 1 in 16

with a width sufficient for dumper movement, dozer path, drainage and

electrification etc.

6.4.2 Slope of Benches & Quarry

i) During Mining Operation

The slope of individual benches depends on the type of strata. In this report, the



slope of individual bench is proposed as 45o in soil, alluvium and clay whereas; it

is 70o in hard strata. The overall slope of the quarry in dip side during mining

operation varies around 19 to 22o (from horizontal plane) depending on the

nature of strata in the entire depth of quarry.

ii) At the end of quarry

The slope of individual benches in the batter at the end of quarry remains same

as that during mining operation i.e. 45o in soil, alluvium and clay and 70o in hard

strata. Overall angle considered during planning is about 370 to 38 0 in dip side &

about 370 in rise side. However, it is proposed to do scientific study for slope

stability in quarry benches and OB dumps by any scientific agency.

7.0 MINING AND DUMPING STRATEGY 7.1 CONSTRAINTS ON MINE DEVELOPMENT

Following constraints / risks in mining are anticipated in the proposed Mungoli

Nirguda Extension (Deep) OC mine :

1 The part of proposed mine area is under the HFL of Wardha river / Nirguda nala

& Penganga river, (recorded HFL is 185.165 m in the year 1959). In this report it

is proposed to make a flood protection embankment 6.0 m above HFL around the

proposed mine. It is also proposed here that pitching of embankment on river

side may be done upto HFL level to further strengthen the proposed

embankment. Capital provision in this regard has been made in Appendix A.8.1

of this PR. The embankment would be constructed by dumping mined out / re-

handled overburden.

2. Mungoli village is located very close to rise side boundary of existing mine and

also surrounded by external OB dump of existing mine. Hence, shifting and

rehabilitation of Mungoli village has been proposed in this PR.

3. Present alignment of arterial road would have to be diverted as it would be

covered below the proposed external OB dump. Capital provision for realignment

of 4.5 km length of road has been made in Appendix A.8.1 of this PR. Part of

existing arterial road (about 1.0 km) would be used by the proposed project for



which a capital provision has been made for strengthening & widening of road. It

is also proposed to divert 150mm water pipeline passing close to the property.

4. Mine is presently facing some problem of stability of external OB dump. It is

proposed in the PR to conduct a slope stability study, for which capital provision

has been made. Moreover, it is proposed to excavate black cotton soil (about

4.65 Mm3) beneath the proposed extension area of external OB dump for better

stability of dump.

7.2 MINING STRATEGY

The proposed quarriable area of Mungoli - Nirguda Extnension (Deep) OC mine

has been divided into two sub quarries i.e. one shovel dumper patch (proposed

target of 1.0Mty) and one Dragline patch (proposed target 2.50Mty) for

maximization of target from mine. These sub quarries are further sub-divided into

a total of five cuts viz. cut-I & cut-II at shovel dumper patch and cut-III, cut-IV and

cut-V (balance cut) for Dragline patch.

As coal is to be extracted from four sections of composite seam, it is assumed 2

sets of Surface Miners shall be deployed by hiring agency for extraction of coal to

ensure quality by eliminating blasting thereby reducing the contamination of coal.

To work the parting between the seam sections, it is envisaged that hiring agency

will deploy Dozers with ripper arrangement for thin parting and for parting having

higher thickness conventional method of mining i.e. drilling & blasting shall be

adopted. This blasted shall be removed using shovel & dumper combination.

It is proposed that top OB benches shall be handled with Shovel Dumper

combination. Entire existing HEMM capacity of 4.00 Mm3 will be maintained in

this report. OB excess of 4.00 Mm3 is proposed to be removed by hiring of

equipment. Apart from Shovel-dumper combination for OB, it is proposed to

deploy Dragline of Ghughus OC mine (24/96 Dragline) in the proposed Extension

(Deep) OC for removal of OB (about 20m cover) above seam section. The

operation of dragline would expose about 2.50 Mt coal per annum.

Dragline Operation



As mentioned earlier, the Dragline (24m3/96m) of Ghughus OC mine has been

proposed to be deployed by WCL in proposed Mungoli-Nirguda Extension (Deep)

OC mine. This Dragline is becoming surplus in near feature due to exhaustion of

reserves in Ghughus OC mine. It is planned to have proposed Dragline cut width

of 70m and cut height at center of cut as 20m. (Refer Dragline Balancing

Diagram enclosed to this report). The reasons for keeping Dragline cut height to

20m are as following:-

1. At present mine is producing 3.00 to 4.00 Mt per annum and therefore the

minimum proposed target for Mungoli Nirguda Extension (Deep) OC mine is

to be kept at about 3.5 Mt per annum. However, the coal exposure required

for this much target production by dragline will be possible only with very

low Dragline cut height which is not desirable. Accordingly, it has been

proposed to work separate patch by Shovel Dumper to produce 1.00 Mty and

the target production from Dragline patch has been kept as 2.50 Mt which

requires about 20m cut height.

2. As total average thickness of seam and parting is more than 22m and no rib

is to be left as per DGMS guidelines, the digging depth of Dragline is limiting

the height of Dragline bench.

7.2.1 VOLUME REGIME

The proposed quarriable area of Mungoli - Nirguda Extension (Deep) OC mine

has been divided into two sub quarries i.e. one shovel dumper patch (proposed

target of 1.0Mty) and one Dragline patch (proposed target 2.50Mty) for

maximization of target from mine. These sub quarries are further sub-divided into

a total of five cuts viz. cut-I & cut-II at shovel dumper patch and cut-III, cut-IV and

balance cut for Dragline patch. The mineable reserves, OB and stripping ratio in

these cuts are given in the following table:-

Sub-Quarry

Cut No.

Description of Cuts

Coal (Mt)

OB (Mm3) S.R. (m3/t) Top

OB Parting

OB Total

S/D patch I 8.49 29.31 5.59 34.90 4.111



II 8.56 42.00 5.52 47.52 5.551 Sub-Total (S/D Patch) 17.05 71.31 11.11 82.42 4.834

Dragline Patch

III 10.53 62.74 8.22 70.96 6.738 IV 9.75 55.16 6.98 62.14 6.373 V 8.52 47.66 6.67 54.33 6.376

Sub-Total (D/L Patch) 28.80 165.56 21.87 187.43 6.508 Total 45.85 236.87 32.98 269.85 5.885

In addition to above, it is proposed to make trench along the periphery of the

external dumps. Total 2.78 Mm3 OB will be removed from trench cutting and will

be dumped in Temporary Top Soil dump which will be reclaimed later on the top

of dumps. Thus, total in-situ OB including Trench Cutting is 272.63 Mm3 (269.85

Mm3 from Quarry and 2.78 Mm3 OB from Trench). The total re-handling of OB is

16.18 Mm3 which includes 8.4 Mm3 OB of existing Dumps, 5.00 Mm3 OB of Top

Soil and 2.78 Mm3 OB of Trench Cutting. 7.3 DUMPING STRATEGY

Presently Two external OB dumps exist in the existing Mungoli Nirguda OC mine,

first near Sakhara Village and second near Mungoli Village on the non coal

bearing area in the rise side of the property. It is proposed by mine officials that in

the balance years of existing mine these two dumps would be used for external

dumping and part of total OB would be backfilled in decoaled void of existing

mine. The existing dumps would reach to maximum height of 60m with balance

dumping of existing mine. In the proposed Mungoli Nirguda Extension (Deep) OC mine, initially about 5.27

Mm3 of OB would be used for construction of flood protection embankment

around the proposed quarry along the periphery of Wardha River/Nirguda Nala &

Penganga River.

After construction of flood protection embankment, OB of first cut of both Shovel

Dumper patch (Cut-I) and Dragline patch (Cut-III) would be dumped in the

external Dump-1 near Sakhara village and in merger of backfilled and external

dump. Top OB of about 3m depth from surface shall be dumped in separate soft



OB dump and shall be reclaimed in later stage. After dumping of above OB, the

height of this external dump would reach 90 m above GL. The entire OB excavated in subsequent Cut-II of shovel dumper patch would be

dumped in decoaled void of previous Cut-I. The OB of subsequent cuts of

Dragline patch (Cut-IV & V) shall be dumped in external Dump-2 over resettled

Mungoli village and its merger with backfilled OB Dump in decoaled void of

Dragline cuts. Maximum height of backfilled dump would reach 90m above GL.

The different external and internal Dumps proposed in this PR of Mungoli –

Nirguda Extension (Deep) OC mine along with their balance dump capacity after

the exhaustion of existing Mungoli Nirguda OC mine are tabulated below :

DUMP CAPACITY

Sl. Dump Name In-Situ OB Dump Capacity (Mm3)

1 Embankment 5.27 2 External Dump – 1 (Near Sakhri Village) 26.39 3 External Dump – 2 (Over Mungoli Village) 27.92 4 Internal Dump (Dragline Patch) including

Side casting (part of internal dump) 126.81

(98.61+28.20 D/L Side cast) 5 Internal dumping (Shovel Dumper patch) 94.64 Total 281.03

8.0 MINING SCHEDULE AND EQUIPMENT PHASING 8.1 DESIGN CRITERIA

The Project Report of Mungoli Nirguda Extension (Deep) OC mine has envisaged

330 days of working in a year based on 7 days schedule of mine working. As per

the prevalent practice in WCL, there will be 3 working shifts in a day and each

shift will be of 8 hours duration.

The excavation category of OB material has been assumed as 50% Category– III

+ 50% Category-IV, whereas, for coal it is assumed as Category-IV. The in-situ

volume weight of OB material has been considered as 2.2 t/m3 whereas for coal it

is taken as 1.60 t/m3.

8.2 ANNUAL PRODUCTIVITY OF HEMM WITH DIFFERENT LEAD



In this PR, the entire coal and parting shall be handled by hiring of HEMM. For

extraction of coal it is assumed that two nos. of surface miner along with

necessary nos. of pay loader and rear discharge dumper shall be deployed by

hiring agency. Separate drilling and blasting for parting is required which is

difficult at many places due to lesser thickness of parting. Therefore, it is proposed to deploy Dozer with Ripper attachment at Mungoli Nirguda

Extension (Deep) OC mine by outsourcing agency in addition to shovel &

dumpers to remove parting separately. Blasting in parting will be done where

thickness of parting is more to ensure that blasting is limited to parting only. Part Top OB (about 20m) above coal seam will be removed by 24/96 Dragline. In

addition to this, the existing HEMM (capacity 4.00 Mm3) will be deployed to work

one bench of OB just above Dragline bench as well as Top OB of Shovel Dumper

patch departmentally. Rest Top OB shall be removed through outsourcing

agency. The productivity of departmental HEMM is tabulated below. The

productivity of HEMM of hiring agency will depend on the type and size of HEMM

to be deployed by outsourcing agency. However, the lead for OB has been

estimated based on quarry and dump profile and distance of dump from quarry

which is 3.00 km to 3.50 km. Based on the quarry profile, dump location & distance between different cuts of

quarry & dumps, the following average haul distances have been assessed for

OB and coal.

Sl. No. Particulars Lead (km) 1 Coal 3.00 – 4.00 2 Parting OB 2.50 – 3.00 3 Top OB 3.00 – 3.50

Equipment Productivity The Productivity of Excavators and Dumpers based on lead as detailed above for

330 working days are as follows :

HEMM PRODUCTIVITY



Sl. No.

HEMM Coal / Parting / Top OB

Productivity (Mm3 /Yr.)

1. 24/96 dragline 20m Top OB above Coal seam

3.45

2. 4.0 – 5.0 m3 Diesel hydraulic shovel with 60 T Rear Discharge dumpers

Top OB 1.30

3. 60 T Rear Discharge Dumpers for 3.00 km weighted average lead with 4.0 to 5.0 m3 Hyd. Shovel

Top OB 0.1634

8.3 CALENDAR PROGRAMME OF EXCAVATION

The proposed Report has been prepared for a targeted capacity of 3.50

Mt/annum. In this PR, coal extraction by Surface Miner, parting OB removal by

Shovel Dumper and Dozer with Ripper attachment and part Top OB removal are

proposed by hiring / out-sourcing agency. The departmental Dragline will be

deployed in dragline patch to work 20m OB above coal seam. In addition to this,

the existing departmental HEMM (capacity 4.00 Mm3) will be deployed to work

one OB bench above Dragline bench and Top OB of Shovel Dumper patch.

The Calendar Programme of Excavation is tabulated below :-



CALENDAR PROGRAMMED OF EXCAVATION

YR

QUARRY

CUT

Coal (Mt) Natural O.B (Mm3) Programmed O.B (Mm3) Rehan-dling of OB (Mm3)

Yearly Cum. Top OB

Parting Total Cum. Dragline

OB Top OB

Parting OB

Total Cum.

1

The Existing Mungoli – Nirguda Extension OC mine will continue production. Land Acquisition

will be done for proposed Mungoli Nirguda Extension (deep) OC

2

The Existing Mungoli – Nirguda Extension OC mine will continue production upto six months D/L Patch Cut-III 2.00 2.00 11.92 1.55 13.47 13.47 2.35 10.15 1.55 14.05 14.05

3.00 S/D patch - - - - - - - - - - - -

Total 2.00 2.00 11.92 1.55 13.47 13.47 2.35 10.15 1.55 14.05 14.05 3.00

3 D/L Patch Cut-III 2.50 4.50 14.90 1.95 16.85 30.32 2.35 12.65 1.95 16.95 31.00

3.900 S/D patch Cut-I 1.00 1.00 3.45 0.66 4.11 4.11 - 3.50 0.66 4.16 4.16

Total 3.50 5.50 18.35 2.61 20.96 34.43 2.35 16.15 2.61 21.11 35.16 3.90

4 D/L Patch Cut-III 2.50 7.00 14.90 1.95 16.85 47.17 2.35 12.65 1.95 16.95 47.95

1.50 S/D patch Cut-I 1.00 2.00 3.45 0.66 4.11 8.22 - 3.50 0.66 4.16 8.32 Sub-Total 3.50 9.00 18.35 2.61 20.96 55.39 2.35 16.15 2.61 21.11 56.27 1.50

5 D/L Patch Cut-III 2.50 9.50 14.90 1.95 16.85 64.02 2.35 12.65 1.95 16.95 64.90

0.00 S/D patch Cut-I 1.00 3.00 3.45 0.66 4.11 12.33 - 3.50 0.66 4.16 12.48

Total 3.50 12.50 18.35 2.61 20.96 76.35 2.35 16.15 2.61 21.11 77.38 0.00

6

D/L Patch Cut-III 1.03 10.53 6.12 0.82 6.94 70.96 0.97 4.27 0.82 6.06 70.96

0.00 Cut-IV 1.47 12.00 8.32 1.05 9.37 80.33 1.38 8.38 1.05 10.81 81.77

Sub-Total (D/L) 2.50 12.00 14.44 1.87 16.31 80.33 2.35 12.65 1.87 16.87 81.77 S/D patch Cut-I 1.00 4.00 3.45 0.66 4.11 16.44 - 3.50 0.66 4.16 16.64

Total 3.50 16.00 17.89 2.53 20.42 96.77 2.35 16.15 2.53 21.03 98.41 0.00



YR QUARRY CUT

Coal (Mt) Natural O.B (Mm3) Programmed O.B (Mm3) Rehan-dling of OB (Mm3)

Yearly Cum. Top OB

Parting Total Cum. Dragline

OB Top OB

Parting OB

Total Cum.

7

D/L Patch Cut-IV 2.50 14.50 14.14 1.79 15.93 96.26 2.35 12.15 1.79 16.29 98.06 0.00

S/D patch Cut-I 1.00 5.00 3.45 0.66 4.11 20.55 - 3.50 0.66 4.16 20.80 Total 3.50 19.50 17.59 2.45 20.04 116.81 2.35 15.65 2.45 20.45 118.86 0.00

8

D/L Patch Cut-IV 2.50 17.00 14.14 1.79 15.93 112.19 2.35 12.15 1.79 16.29 114.35 0.00


9

D/L Patch Cut-IV 2.50 19.50 14.14 1.79 15.93 128.12 2.35 12.15 1.79 16.29 130.64 0.00


10

D/L Patch Cut-IV 0.78 20.28 4.42 0.56 4.98 133.10 0.73 1.17 0.56 2.46 133.10

0.00 Cut-V 1.72 22.00 9.62 1.35 10.97 144.07 1.62 12.10 1.35 15.07 148.17

Sub-Total (D/L) 2.50 22.00 14.04 1.91 15.95 144.07 2.35 13.27 1.91 17.53 148.17 S/D patch Cut-I 1.00 8.00 3.45 0.66 4.11 32.88 - 4.00 0.66 4.66 33.78

Total 3.50 30.00 17.49 2.57 20.06 176.95 2.35 17.27 2.57 22.19 181.95 0.00

11

D/L Patch Cut-V 2.50 24.50 13.98 1.96 15.94 160.01 2.35 11.65 1.96 15.96 164.13 0.00

S/D patch Cut-I 0.49 8.49 1.71 0.31 2.02 34.90 - 0.81 0.31 1.12 34.90 Cut-II 0.51 9.00 2.50 0.33 2.83 37.73 - 3.19 0.33 3.52 38.42

Sub-Total (S/D) 1.00 9.00 4.21 0.64 4.85 37.73 0.00 4.00 0.64 4.64 38.42 Total 3.50 33.50 18.19 2.60 20.79 197.74 2.35 15.65 2.60 20.60 202.55 0.00

12

D/L Patch Cut-V 2.50 27.00 13.98 1.96 15.94 175.95 2.35 11.65 1.96 15.96 180.09 0.00 S/D patch Cut-II 1.00 10.00 4.89 0.64 5.53 43.26 - 5.00 0.64 5.64 44.06

Total 3.50 37.00 18.87 2.60 21.47 219.21 2.35 16.65 2.60 21.60 224.15 0.00

13


Total 3.50 40.50 17.80 2.49 20.29 239.5 2.35 10.59 2.49 15.43 239.58 0.00

14


Total 3.50 44.00 17.13 2.25 19.38 258.88 0.00 17.50 2.25 19.75 259.33 3.50

15


Total 1.85 45.85 9.76 1.21 10.97 269.85 0 9.31 1.21 10.52 269.85 4.28

GRAND TOTAL 45.85 236.87 32.98 269.85 28.20 208.67 32.98 269.85 16.18



In addition to above, it is proposed to make trench along the periphery of the

external dumps. Total 2.78 Mm3 OB will be removed from trench cutting and will

be dumped in Temporary Top Soil dump which will be reclaimed later on the top

of dumps. The year-wise programme of Trench Cutting is tabulated below :

Thus, total in-situ OB including Trench Cutting is 272.63 Mm3 (269.85 Mm3 from

Quarry and 2.78 Mm3 OB from Trench). The total re-handling of OB is 16.18

Mm3 which includes 8.4 Mm3 OB of existing Dumps, 5.00 Mm3 OB of Top Soil

and 2.78 Mm3 OB of Trench Cutting. The re-handling of existing dump will be

done in 2nd, 3rd and 4th year whereas 5.00 Mm3 Top Soil and 2.78 mm3 OB of

Trench Cutting will be initially dumped in Temp. Soil dump and will be re-handled

on top of OB dumps from 14th to 15th year.

8.4 DUMPING SCHEDULE

The year-wise Dumping Schedule in the proposed Mungoli Nirguda Extension

(Deep) OC mine is tabulated below:

DUMPING SCHEDULE

Year OB from Trench Cutting (Mm3) CUMM. OB (Mm3) 2 1.00 1.00 3 0.27 1.27 4 1.00 2.27 5 0.51 2.78

YEAR SOURCE OF

OB

Volume of OB (Mm3)

DUMPING SITE Temp.Top Soil Dump

Mm3

EXTERNAL DUMP (Mm3) INTERNAL DUMP (Mm3) DUMP-1

(S/D SIDE) DUMP-2

(L/D SIDE) EMBAN-KMENT

S/D PATCH

L/D PATCH

SIDE CAST BY D/L

1 The Existing Mungoli – Nirguda Extension OC mine will continue production. Land Acquisition will

be done for proposed Mungoli Nirguda Extension (deep) OC

2

S/D PATCH D/L PATCH 14.05 0.60 8.83 2.27 2.35 REHANDLING 3.00 3.00 TRENCH CUTTING

1.00 1.00 0.00 0.00 0.00

Sub-Total 18.05 1.60 8.83 0.00 5.27 0.00 0.00 2.35



YEAR SOURCE OF OB

Volume of OB (Mm3)


Mm3


(S/D SIDE) DUMP-2


S/D PATCH

L/D PATCH

SIDE CAST BY D/L

3

S/D PATCH 4.16 0.30 3.86 D/L PATCH 16.95 0.80 13.80 2.35 REHANDLING 3.90 3.90 TRENCH CUTTING 0.27 0.27

Sub-Total 25.28 2.37 7.76 0.00 0.00 12.80 0.00 2.35

4

S/D PATCH 4.16 0.30 3.86 D/L PATCH 16.95 0.80 13.83 2.35 REHANDLING 1.50 1.50 TRENCH CUTTING 1.00 1.00

Sub-Total 23.61 3.07 5.36 0.00 0.00 12.83 0.00 2.35

5

S/D PATCH 4.16 0.30 3.86 D/L PATCH 16.95 0.80 13.80 2.35 TRENCH CUTTING

0.51 0.51

Sub-Total 21.62 1.61 3.86 13.80 0.00 0.00 0.00 2.35 6

S/D PATCH 4.16 0.30 3.86 D/L PATCH 16.87 0.80 13.72 2.35 Sub-Total 21.03 1.10 0.00 13.72 0.00 3.86 0.00 2.35

7

S/D PATCH 4.16 4.16 D/L PATCH 16.29 13.94 2.35 Sub-Total 20.45 0.00 0.00 0.00 0.00 4.16 13.94 2.35

8

S/D PATCH 4.16 0.00 0.00 0.00 4.16 D/L PATCH 16.29 0.00 0.00 0.00 13.94 2.35 Sub-Total 20.45 0.00 0.00 0.00 0.00 4.16 13.94 2.35

9


10


11


12

S/D PATCH 5.64 5.64 D/L PATCH 15.96 13.61 2.35 REHANDLING 0.00 Sub-Total 21.60 0.00 0.00 0.00 0.00 5.64 13.61 2.35



From above table, it is clear that total in-situ OB from Quarry area is 269.85 Mm3

(187.43 Mm3 from Dragline Patch and 82.42 Mm3 from Shovel-Dumper Patch).

In addition to this 2.78 Mm3 OB will be excavated from Trench Cutting from

external OB Dump site. There are some existing OB dumps having total OB of

8.40 Mm3 which are required to be re-handled for quarry operation in the

proposed mine. Thus total OB volume is 281.03 Mm3 (269.85 Mm3 + 2.78 Mm3

+ 8.40 Mm3) which have been accommodated in the OB Dumps namely Dump-1

(26.39 Mm3), Dump-2 (27.92 Mm3), Embankment (5.27 Mm3), Internal Dump in

Shovel-Dumper patch merged with Dump-1 (94.64 Mm3) and Internal Dump in

Dragline patch merged with Dump-2 (98.61 Mm3). Moreover, 28.20 Mm3 of OB

is side casted by Dragline in de-coaled void of previous cuts of Dragline patch.

YEAR LOCATION OF

OB OB QTY (Mm3)


Mm3


(S/D SIDE) DUMP-2


S/D PATCH

D/L PATCH

SIDE CAST BY D/L

13

S/D PATCH 8.09 8.09 D/L PATCH 7.34 4.99 2.35 REHANDLING 0.00 Sub-Total 15.43 0.00 0.00 0.00 0.00 8.09 4.99 2.35

14

S/D PATCH 19.75 13.75 6.00 D/L PATCH 0.00 REHANDLING - 3.50 0.20 0.40 0.00 1.40 1.50 Sub-Total 19.75 - 3.50 0.20 0.40 0.00 15.15 7.50 0.00

15

S/D PATCH 10.52 10.52 D/L PATCH 0.00 REHANDLING - 4.28 0.38 2.00 1.90 Sub-Total 10.52 - 4.28 0.38 0.00 0.00 12.52 1.90 0.00

GR

AN

D T

OTA

L S/D PATCH 82.42 1.20 11.58 0 0 63.64 6 0 D/L PATCH 187.43 3.8 8.83 27.52 2.27 27.6 89.21 28.20 TRENCH CUTTING

2.78 2.78 0 0 0 0 0 0

REHANDLING 8.4 -7.78 5.98 0.40 3.00 3.40 3.40 0 TOTAL 281.03 0 26.39 27.92 5.27 94.64 98.61 28.20



8.5 EQUIPMENT SCHEDULE ~ SCHEDULE OF EXPENDITURE ON HIRING/ OUTSOURCING OF EQUIPMENT

8.5.1 Equipment Schedule

In this PR, coal extraction by Surface Miner with Pay-loaders and Dumpers,

parting OB removal by Shovel Dumper and Dozer with Ripper attachment and

part Top OB by shovel Dumper is proposed by hiring. Removal of 15m-20m OB

above coal seam by Dragline is proposed departmentally. In addition to this,

existing departmental capacity of 4.00 Mm3 will be deployed to remove Top OB

including one OB bench above Dragline bench. The schedule of HEMM is

tabulated below :

SL. NO. PARTICULARS

Total Require-

ment Existing

Addit-ional

Require-ment

Phasing of Additional HEMM

Yr.-1 Yr.-2 Yr.-3 Yr.-4 (A) FOR TOP OB

1 24/96 DRAGLINE (of Ghughus OC 1 1 0 - - - -

2 4.5 to 5.0 diesel hyd. Backhoe 4 4 0 - - - - 3 60 T rear discharge dumper 26 24* 2 - - 1 1 4 250 mm dia. RBH DRILL 2 2* 0 - - - -

5 160 mm dia. RBH DRILL(diesel) 3 3* 0 - - - -

6 320 HP Dozer 2 2* 0 - - - - 7 410 HP DOZERS 2 2* 0 - - - -

(B) FOR COAL & PARTING : By hiring of HEMM. Coal Extraction by Surface Miner along with relevant loading and transporting machines. Parting OB removal by Dozer with ripper attachment and shovel dumper.

(C) COMMON: 1 40 t CRANE 1 0 1 - 1 - - 2 8t MOBILE SER. CRANE 2 2 0 - 0 - - 3 2.8 m3 DIES.HYD. BACKHOE 1 1 0 - 0 - - 4 28 kl WATER SPRINKLER 2 2 0 - 0 - - 5 6.5 m3 FRONT END LOADER 1 1 0 - 0 - - 6 280 HP MOTOR GRADER 2 1 1 - 1 - - 7 VIBRATORY COMPACTOR 1 0 1 - 1 - - 8 MOBILE SERVICE UNIT 1 0 1 - 1 - - 9 DIESEL BOWSER 8KL 1 0 1 - 1 - -

10 TYRE HANDLER 1 0 1 - 1 - - 11 FIRE FIGHTING TRUCK 1 0 1 1 - - 12 FLOAT ENGINE ASSEMBLY 26 24 2 1 1 (D) FOR LAND RECLAMATION: - 1 460HP WHEEL DOZER 1 1 0 - - - -



Note -* All Existing 35/50/60 T dumpers would be replaced by 60 T dumper, 160 mm dia. Drill to be replaced by 250mm dia Drill and existing 320 HP dozers would be replaced by 410 HP Dozers for standardization purpose. (Replacement as per records available in the Asset Register.)

8.5.2 Schedule of Expenditure on Hiring/ Outsourcing of Equipment

The proposed Mungoli - Nirguda Extension (Deep) OC mine has been planned

for Partial Hiring option. In this option, coal extraction by Surface Miner with Pay-

loaders and Dumpers, parting removal by Shovel Dumper and Dozer with Ripper

attachment is proposed on hiring along with part of top OB. Removal of about

20m OB above coal seam by Dragline operation and 4.00Mm3 OB (to maintain

existing departmental capacity) by shovel dumper is proposed by departmental

equipment.

The rates for OB by hiring of equipment for the proposed mine have been

estimated on the basis of Approved FD approved rates circulated by WCL,

updated with change in price of diesel for October, 2015.

Rates for excavation for hiring/ outsourcing of HEMM are being adopted in this

report for planning purpose and economic evaluation of the project. These rates

may vary at the time of actual implementation. The rates include excavation,

transport, drilling, dozing at face & dumps, water spraying and Land Reclamation.

It is also suggested here that before awarding the work to hiring agency,

geological structure should be further confirmed by drilling additional boreholes.

Lead for OB, bench-wise, horizon-wise has been calculated for each cut on

weighted average basis keeping into account the OB dumping programme. On

actual implementation of report these rates and lead may vary based on site

conditions. It is suggested to re-assess hiring rates again based on site

conditions while awarding tender.

The average rate (`./m3) for excavation / rehandling of OB are tabulated below :



Year wise Workload and Hiring Rates for Out-sourcing Agency

Yr

Coal Top OB Parting OB Trench Cutting Rehandling of OB

Prod. Hiring

Rate (`./t) Volume (Mm3)

Hiring Rate

(`./m3)

Volume (Mm3)

Hiring Rate

(`./m3)

Volume (Mm3)

Hiring Rate

(`./m3)

Volume (Mm3)

Hiring Rate

(`./m3) 1 - - - - - - - - - - 2 2.00 63.59 6.15 61.79 1.38 56.93 1.00 54.57 3.00 56.93 3 3.50 63.59 12.15 61.79 2.68 56.93 0.27 54.57 3.90 56.93 4 3.50 63.59 12.15 61.79 2.68 56.93 1.00 54.57 1.50 56.93 5 3.50 63.59 12.15 61.79 2.68 56.93 0.51 54.57 - - 6 3.50 64.45 12.15 61.79 2.68 56.93 - - - - 7 3.50 64.45 11.65 61.79 2.48 56.93 - - - - 8 3.50 64.45 11.65 61.79 2.48 56.93 - - - - 9 3.50 65.32 11.65 61.79 2.48 56.93 - - - -

10 3.50 65.32 13.27 61.79 2.48 56.93 - - - - 11 3.50 65.32 11.65 61.79 2.58 56.93 - - - - 12 3.50 65.32 12.65 60.17 2.96 56.93 - - - - 13 3.50 65.32 6.59 60.17 2.39 56.93 - - - - 14 3.50 66.18 13.50 60.17 2.10 56.93 - - 3.50 61.79 15 1.85 66.18 5.31 60.17 0.93 56.93 - - 4.28 61.79

Total 45.85 152.67 32.98 2.78 16.18

Weighted Average Rate for hiring of HEMM arrived at as explained above are being adopted for purpose of economic evaluation of the project during planning stage. These rates are based on FD approved rates for diesel prices as on October 2015.

8.6 DRILLING & BLASTING

Drilling pattern in overburden, with a bench height of 10 m has been envisaged

with the burden as 5.0-6.0 m and spacing as 6.5-7.0 m. For D/L bench of 20m

bench height , the burden is assumed as 6.0-7.0 m and spacing as 7.0-8.0m. The

powder factor of 2.90m3/kg has been considered for overburden for planning

purpose. For coal, Surface miner has been provided hence no drilling and

blasting is required. However at the time of operation of mine, drilling

parameters have to be optimized on the basis of actual field trial depending upon

joint pattern, bedding plane and local geology of the blast site and accordingly

powder factor for OB & coal may be vary after final trial of blasting.

It is proposed that bulk loading explosive may be used. For storage of L.D.

explosive and accessories one magazines of 20 t capacity has been proposed.



9.0 QUALITY OF COAL 9.1 Seam-wise Quality of Coal

Seam-section wise weighted average quality details without dilution and with

dilution of 5cm. and 10cm. at each contact point are tabulated below :

Seam/ Section

Quality without dilution

Quality with dilution of 0.05m

Quality with dilution 0.10m

M% Ash% GCV M% Ash% GCV M% Ash% GCV A 7.5 32.7 4386 7.3 35.0 4204 7.0 37.1 4045 B 7.6 25.9 5012 7.4 28.8 4774 7.2 31.4 4552 C 7.3 30.3 4641 7.1 32.8 4437 7.0 35.1 4233 D 7.5 27.5 4876 7.5 28.1 4825 7.4 28.7 4777

(A+B+C+D) 7.5 28.4 4791 7.4 29.9 4674 7.3 31.2 4562 9.2 Year-wise weighted average Quality of Coal Based on the seam-wise extraction and seam-wise weighted average GCV of

coal with 5cm dilution at contact points, year-wise quality of coal has been

assessed which are tabulated below :

YEAR-WISE & SEAM-WISE COAL EXTRACTION AND QUALITY (GCV) OF COAL

Year SEAM - A SEAM - B SEAM - C SEAM - D TOTAL

Coal GCV Coal GCV Coal GCV Coal GCV Coal GCV GCV Band

1 0.00 4204 0.00 4774 0.00 4437 0.00 4825 0.00 2 0.37 4204 0.10 4774 0.19 4437 1.34 4825 2.00 4671 G-9 3 0.60 4204 0.29 4774 0.34 4437 2.27 4825 3.50 4677 G-9 4 0.60 4204 0.29 4774 0.34 4437 2.27 4825 3.50 4677 G-9 5 0.60 4204 0.29 4774 0.34 4437 2.27 4825 3.50 4677 G-9 6 0.59 4204 0.29 4774 0.34 4437 2.27 4825 3.50 4673 G-9 7 0.53 4204 0.29 4774 0.41 4437 2.27 4825 3.50 4680 G-9 8 0.53 4204 0.29 4774 0.41 4437 2.27 4825 3.50 4680 G-9 9 0.53 4204 0.29 4774 0.41 4437 2.27 4825 3.50 4680 G-9

10 0.53 4204 0.29 4774 0.41 4437 2.27 4825 3.50 4687 G-9 11 0.45 4204 0.30 4774 0.48 4437 2.27 4825 3.50 4692 G-9 12 0.49 4204 0.28 4774 0.39 4437 2.33 4825 3.50 4695 G-9 13 0.44 4204 0.33 4774 0.38 4437 2.34 4825 3.50 4690 G-9 14 0.61 4204 0.47 4774 0.09 4437 2.33 4825 3.50 4694 G-9 15 0.34 4204 0.24 4774 0.06 4437 1.21 4825 1.85 4691 G-9 7.21 4.02 4.61 30.01 45.85 4674 G-9

From above table, it is clear that year-wise grade of coal in proposed Mungoli

Nirguda Extension (Deep) OC mine is G-9 throughout the mine life.



10.0 PUMPING & DRAINAGE

The Pumping capacity required at the time of five years after reaching the target

has been calculated as under:-

Sl. No. DISCRIPTIONS Calculated data

1 Maximum exposed area (ha) 331.72

2 Maximum backfilled area (ha) 184.59

3 Surface area of mine considered for excavation (ha) 147.13

4 Area beyond excavation (ha),5% of item (3) 7.36

5 Run-off co-efficient for

Open excavation 0.70

Area beyond excavation 0.10

6 Rainfall infiltration co-efficient for backfilled area 0.20

7 Probable max. rainfall in a day (mm) 195

8 Water collected in the quarry due to exposed area and area beyond excavation (cum/day)

274257

9 Required pumping capacity to handle the whole water of the rain water in 100 hrs (lps)

762

10 Seepage due to strata (15% of Item 9) 114

11 Total pumping capacity 876

12 Depth in target plus five years (m)/ after 10th year 150

Pumping system has been designed for the volume of water accumulated in the

mine at the target plus five year production considering maximum rainfall in a day as 195mm

Peak pumping capacity worked out as 315396 cum

Above volume of water will be dewatered in 5 days at the rate of 20 hrs pumping

per day. Pumping capacity per day thus worked out as 63079 cum.

10.1 SELECTION OF PUMPS DELIVERY RANGES

Pumping system has been designed for the volume of water accumulated in the

mine at the target plus five year production considering maximum rainfall in a day

as 195mm.



Peak pumping capacity worked out as 315396 cum.

Above volume of water will be dewatered in 5 days at the rate of 20 hrs pumping

per day. Pumping capacity per day thus worked out as 63079 cum. i) Eight pumps of 160 lps x 180m head have been proposed. Out of eight

pumps, two pumps are standby.

ii) Two (One existing & one proposed) diesel pumps of 200 lps x 100m head

have been proposed.

iii) Four existing pumps of 200 lps x 100m head have been used as auxiliary

pumping.

iv) Three existing pumps of 80 lps x 100m head have been used as auxiliary

pumping. v) Eight face pumps (Three existing & five proposed) of 11 lps x 30 m head

have been envisaged in this report and out of eight pumps, two are standby.

vi) Two delivery ranges of 406.4 mm dia. have been proposed for main pumps

of 160lps x 180m head and maximum two pumps will be connected in each

delivery. vii) Two delivery ranges of 312 mm dia. have been proposed for main pumps of

160lps x 180m head and maximum one pump will be connected in each

delivery. viii) Four existing delivery ranges of 312 mm dia. have been used for existing

auxiliary pumps of 200lps x 100m head and maximum one pump will be

connected in each delivery range separately.

ix) Three existing delivery ranges of 219 mm dia. have been used for existing

auxiliary pumps of 80lps x 100m head and maximum one pump will be

connected in each delivery range separately.

x) 80 mm dia. G.I. pipe will be used for face pumps. No piping provision have

been made for standby pumps.



11.0 COAL HANDLING AND DESPATCH ARRANGEMENTS ( WAGON LOADING BY SILO AND RLS WITHOUT GROUND BUNKER)

11.1 INTRODUCTION Project Report for Mungoli - Nirguda Deep Opencast Mine is being planned for a

rated production capacity of 3.50 MT of ROM coal per annum by surface miner.

The proposed Coal Handling Plant is to handle the entire coal production of this

Project. The coal handling plant will have facilities for receiving ROM coal from

rear discharge dumpers at ground stock near the quarry mouth. Coal from ground

stock will be loaded into another rear discharge trucks/tippers by pay loaders and

will be transported at Penganga siding. One receiving pit has been proposed to

receive coal by rear discharge trucks/tippers and coal will be reclaimed from

receiving pit to 4000 t capacity Silo. Wagon loading of coal from Silo will be done

by 4000 tph capacity rapid loading system. Wagon loading portion for RLS

loading has been proposed which consists one track for wagon loading and one

track for rack standage. Weighment of coal will be by in motion rail weighbridge.

Mode of despatch of coal from siding to customer will be by rail.

11.2 System Description

The Run-Off-Mine coal from quarry will be stored on ground near quarry mouth.

Coal from ground stock will be loaded into another rear discharge trucks/tippers

by pay loaders and will be transported at Penganga siding. One receiving pit has

been proposed to receive coal by rear discharge trucks/tippers near Penganga

siding. Receiving pit has been provided to accommodate payload of three/four

trucks/tippers. The ROM coal will be reclaimed by apron feeders and fed onto

belt conveyor. Belt conveyors will convey coal and will discharge into 4000t

capacity Silo.

Coal from silo will be loaded into wagons by pre weigh hoppers and rapid loading

system. Silo has also provided auto sampler for sampling of coal and another

systems. Two tracks will be provided for RLS loading from Silo. Out of two tracks

Silo will be constructed on one track and other track will be standbye for empty

rack.



In case when Silo will be full, coal will be stored on ground near receiving pit

which will be fed later to receiving pit by pay loaders and rear discharge

trucks/tippers. One shunting loco for full rack has also been provided.

Weighment of coal will be done by two numbers of 100t capacity weigh bridges at

quarry mouth, one number of belt weigher and two number of rail weigh bridges

will be provided to weigh empty and full racks.

12.0 WORKSHOP

In this PR, the coal extraction by Surface Miner, parting OB removal by Shovel-

Dumper and Dozer equipped with Ripper attachment shall be done by hiring of

equipment. In addition to this, trench cutting at Dump site and re-handling of OB

have also been proposed by hiring of HEMM. Existing mine capacity of 4.00 Mm3

will be maintained by removing part of top OB by departmental HEMM, along with

Dragline workload.

The HEMM deployed in the mine by outsourcing agency will be operated and

maintained by hiring / out-sourcing agency. Departmental HEMM shall be

maintained at mine and hence, provision for excavation workshop has also been

made in this report.

Excavation workshop This workshop would extend basic engineering support in respect of maintenance

and repair of various HEMM deployed in the mine. In this PR, Excavation

Workshop has been provided considering the departmental HEMM such as

Dragline, Shovel, Dumper, Dozers etc. Workshop facilities for 50t/60t dumpers

and existing HEMM are available at the project. Major repair of HEMM and other

equipment would be carried out at central workshop, Tadali.



E & M workshop

E & M Workshop facilities have been proposed in this PR to carry out

maintenance & repair of the CHP, equipment, pumps, LMVs, electrical etc. The

E&M workshop is essentially a unit workshop and will depend on central/regional

workshop for major repair and part manufacture.

13.0 POWER SUPPLY 13.1 Source of Power

The projected maximum demand for the proposed Mungoli – Nirguda deep OCM

(including residential) for Surface Miner (partial hiring option) with rapid loading

system without ground bunker is 4699 kVA. Project main substation will cater

only industrial load, for which maximum demand is 4217 kVA. Existing residential

power source is at 11 kV and will continue to be same, so that power supply to

and within the residential complex remains unaltered.

Presently Mugoli OC receives power at 11 kV from 66 kV / 11 kV Matra Devi

substation. Matra Devi substation is in advance stage of conversion from 66 / 11

kV to 33 / 11 kV substation. Since the power requirement for proposed PR is

getting enhanced substantially in view of deployment of Dragline and bigger size

pumps, the project substation is envisaged to receive power from a 220 kV / 33

kV MSETCL substation constructed near the Matra Devi 66 / 11 kV substation.

In Appendix A.8.1, provision has been made for incoming power supply

(single feeder ) at 33 kV for a length of 13.0 km. In addition provision has been

made for diversion of 11 kV overhead lines falling within the proposed quarry

area. Two main substations namely OB substation and Coal substation are

proposed. Proposed OB substation has two transformers, outdoor type, DY-11,

33 kV / 6.6 KV, 7500 KVA and Coal substation has two nos. outdoor type, DY-

11, 33 kV / 3.3 kV, 3150 KVA transformers.



13.2 SALIENT FEATURES OF THE ELECTRICAL PARAMETERS

Sl. No. ITEM HEAD

1 PROJECTED MAXIMUM DEMAND A) ONLY MINE 4217 kVA B) ONLY TOWNSHIP 487 kVA C) TOTAL 4699 kVA

2 SPECIFIC ENERGY CONSUMPTION A) WITH RESPECT TO OB PRODUCTION 0.83 kWh/t B) WITH RESPECT TO COAL PRODUCTION 1.34 kWh/t C) WITH RESPECT TO COMMON LOAD 2.01 kWh/t D) WITH RESPECT TO TOTAL LOAD 4.17 kWh/t

3 SPECIFIC POWER COST 41.28 `./t

4 FIXED PERCENTAGE OF POWER COST 45.70%

5 VARIABLE PERCENTAGE OF POWER COST 54.30%

6 AVERAGE COST OF PURCHASED POWER 9.90 `./kWh

14.0 CIVIL CONSTRUCTION WORKS

The Building Cost Index for the Maharastra has been worked out to 560 in 2015

(2nd half) taking the prevalent rates of materials and labours in Maharastra. This

Building Cost Index is with reference to base 100 in Nagpur as on 1.1.1992.

14.1 SERVICE BUILDINGS

Keeping in view the needs and requirements of this mine, provision for all

necessary service buildings such as Sub–station, Magazine and other service

buildings have been provided.

14.2 RESIDENTIAL BUILDING

No provision of colony is made in this report as this project report is extension of

existing Mungoli Nirguda OC. Existing colony is having sufficient quarters to fulfill

requirement of proposed report.



14.3 ROADS & CULVERTS

No provision has been made for colony roads as colony is existing. Provision of

2.50 kms has been made for haul road for 60T dumpers. Provision has been

made for strengthening of approach road (1.25km) and 0.50 km Service road. It

is proposed to diverted arterial road to extend external dump. A provision of 4.50

km diversion of arterial road has been made in this report. Detailed provisions are

given in appendix A.8.2

14.4 WATER SUPPLY & SEWERAGE

Water supply arrangements have been envisaged for project only as colony water supply arrangement is existing. The water demand for colony is 300 KL.

The total water requirement for project site has been worked out to 610 Kl. Water

demand for project site includes water to be supplied for dust suppression, fire

fighting, water sprinkling on roads, etc. Water demand for project site includes

water to be supplied for dust suppression, fire fighting, water sprinkling on roads,

etc. Sub-soil water has been envisaged as the source. Accordingly, bore-well

provisions have been made. However, it is suggested that the source of water

may be ascertained after carrying out hydro-geological investigations as regards

the quality and quantity of water.

Sub-soil water through bore well has been proposed to be conveyed to O.H.

reservoirs via ground sumps. Further, water from O.H. reservoir shall be

supplied under gravity to different buildings after chlorination.

It is, however, suggested that permanent water supply arrangement should be

formulated after carrying out detailed survey, investigations for the adequate

source of water and detailed engineering.

The details and estimated amount for Water supply for industrial use is given in

Appendix- A.8.3 (B-II).



To avoid any discharge of effluent into natural watercourses, sewage disposal

arrangement has been envisaged for industrial use only as sewage arrangement

for colony already exist. Estimated amount for sewage disposal arrangement for

project site along with required surface drains is given in Appendix A.8.3 (A-II).

However, final economical scheme may be formulated after detailed survey &

engineering considering the site parameters. 15.0 SAFETY & CONSERVATION 15.1 PRECAUTIONS AGAINST SURFACE WATER

The part of proposed mine area is under the HFL of Wardha river, (recorded HFL

is 185.165 m recorded on year 1959). In this report it is proposed to make a flood

protection embankment 6m above HFL around the proposed mine. The

embankment would be extension of present embankment of existing Mungoli-

Nirguda OCM. The top width of embankment is proposed as 30m. Capital

provision has been made for pitching of embankment on river side upto HFL

level. During rainy season regular inspection of embankment shall be done. All

precautions as per CMR 126 shall be taken.

Embankment around Matholi & Sakhara village (located in proximity to proposed

mine) has not been envisaged, as village is located on a higher ground (above

the recorded HFL). Construction of embankment around village would cause

water logging in rainy season. However, capital provision for scientific study for

effect of construction of embankment on HFL has been made in this PR. 15.2 DUST SUPPRESSION

For suppression of dust, provision of three nos. of mist spray with truck mounted

tank is provided. Suppression of mine dust may be done by using package bond

& dust bond, for methodology of application DGMS Circular No.8 of 1997 may

be referred.

15.3 FIRE & SPONTANEOUS HEATING Wild or herbaccous plants shall be removed from the mine. No person shall

deposit heated material or ashes on any opencast working. Also no person shall



light a fire or permit a fire to be lighted in any OC working except by the

permission in writing of the Manager and only for a special purpose specified

therein. No coal shall be left exposed in coal benches more than its

incubation period to avoid fire in seam due to spontaneous heating.

Proper type of the extinguisher is to be kept in each HEMM ready for use in case

of emergency.

In coal stock, coal shall be despatched on the basis of first in first out.

15.4 SLOPE STABILITY

Stability of dump should be ensured by maintaining the angle of slope as

mentioned in this PR. Slope stability studies should be done beforehand & its

recommendation should be implemented. Also on dip side of quarry where depth

is about 150m, it is proposed to conduct studies for stability of quarry slope.

Again side batter runs along a major fault. This fault shall be knocked out at the

floor of the coal seam to avoid any bench slope failure due to fault. It is

suggested that following action may be taken to deal with slope stability problem :

i) Vulnerable area may be identified and marked on quarry plan. ii) Observation of actual alignment of fault, its throw, joints, etc. may be

recorded during the process of exploitation. iii) Water drainage system may be properly implemented to prevent

accumulation of water in cracks. Also dumps shall be leveled to prevent

accumulation of water over it. Proper drainage in dumps shall be also

provided to prevent erosion of toe of dump. A provision of ` 50.00 lacs have

been kept in Appendix-A.8.1 for dump monitoring equipment so as to

effectively monitor dumps on a regular basis. iv) Regular monitoring of tension cracks, horizontal and vertical movement of

strata in critical area may be done. v) Rise side slope to be reinforced if required because it has to stand

throughout quarry life. No dumps/surface structures to be located within

15m of quarry edge as it will act as surcharge there by destabilizing the

slope.



vi) No undercutting of slopes to be done. vii) Proper hydrogeological studies to be done if water table is at level of slope it

should be brought down by using submersible pumps to prevent hydrostatic

pressure. viii) Proper selection of site for dumping to be done before dumping place shall

be made free from loose material. Dumping shall not be done at an angle

more than angle of repose of material being dumped. ix) After completion of dumping operations dumps to be stabilized by growing

vegetation. x) Every person deployed by leaser of HEMM must be trained & briefed about

aspects related to slope stability.

15.5 HAUL ROAD MAINTENANCE

Adequate care must be taken for proper construction and maintenance of haul

road as per the existing guidelines. The gradient of haul road should not be

steeper than 1 in 16.

15.6 BLASTING OPERATIONS

As explosives are required in bulk for blasting in OC mines, provision of

regulation - 164 A of CMR 1957 should be ensured. All blasting operations shall

be carried out in day light. Suitable precautions shall be taken as per statute

before and after blasting operations. Controlled blasting technique has to be

practised to minimise fly off rocks and ground vibrations and keep them within

safe limits . In order to keep the ground vibrations within the permissible limit as

per DGMS Circular No. 7 of 1997, to avoid flying of rock fragments and also to

achieve satisfactory blasting results, optimized drilling / blasting parameters

depending upon rock formation using combination of relays / delays will have to

be evolved. It is further recommended that at the time of actual execution, proper

study for controlled blasting and ground vibration is done with scientific body in

order to evolve site specific charge distance relationship.

.



15.7 SCIENTIFIC STUDIES Following areas have been identified in the proposed mine for detailed scientific

studies:

a) Slope Stability

It is proposed to carry out scientific study on slope stability of external and

internal OB dumps as well as for final slope of quarry batter. Based on the

findings of scientific research the proposed slope of dumps and batter in the

report may change.

b) Drilling & Blasting

For optimum fragmentation of rock and coal to minimize the overall cost of

excavation, it is proposed in this report to engage some scientific body to carry

out research for optimum drilling and blasting. Accordingly, the powder factor

suggested after this study will be followed in the proposed mine.

c) Hydrogeology

Proper provision has been made in this report for scientific study to assess the

hydrogeological parameters of the proposed area.

In addition to this, various other parameters like, soil testing, etc. need scientific

study. A capital provision of `. 58.87 Lacs has been kept in Appendix-A.8.4 (A)

for the above scientific studies.

15.8 SAFETY ASPECTS FOR OUTSOURCING/HIRING OF HEMM

Special precaution should be taken while deploying workers in the mine. Before

employing any labour to the mine proper vocational training should be imparted

and recommendations of Safety Conference should be strictly followed. Terms

and conditions shall be fixed by management for deployment of labours by leaser

of HEMM as well as machineries. Some of the major aspects are as follows:

A) For persons :

i) No persons shall be deployed unless he is trained at VTC



ii) Records in Form-B & Form-D shall be maintained.

iii) Records of Vocational Training Certificate and driving licence of

operators shall be kept by HEMM outsourcing agency and shall be

made readily available for inspection by management

iv) Salaries shall be distributed in front of management representative

v) No person shall be employed unless person holds VTC certificate and

Management is informed. A record of it shall be maintained.

vi) Adequate supervision shall be maintained by qualified competent

persons.

B) For Machineries as recommended by DGMS Cir. (Tech) 1 of 1999:

i) All the machineries to be deployed in mines should be checked before

deployment. Regular checking of m/c deployed by leaser of HEMM

shall be done. No unfit m/c shall be deployed before the defect is

rectified.

ii) A proper record of repair and maintenance alongwith inspection done

by management and defect pointed out shall be maintained and signed

by authorised person.

iii) The trucks deployed by leaser of HEMM shall be provided with Audio

visual alarms, proper light for use at night and period when natural light

is not sufficient. Also audio visual alarms for reversing on trucks shall

be provided.

Other precautions for machines i) RTO certificate photo copies of all vehicles shall be submitted to

management.

ii) Daily welding, monitoring, inspection shall be done by the HEMM

outsourcing agencies mechanic as directed by management.

iv) Machine manufacturers should be asked to give risk analysis.

v) Suitable type of the fire extinguishers shall be provided in every

machines.



C) General :

i) No person/vehicle shall be deployed at any place other than authorised

place.

ii) All workers should obey lawful instruction of mine management.

iii) Risk Management Plan of tipper/pay loader shall be made and

implemented.

iv) All drivers shall obey systematic traffic rules prepared by management.

v) Before deploying workers they must be trained and briefed about

safety aspects in opencast mine. However during course of execution

of the work, if any accident occurs whether major or minor, the matter

shall have to be immediately informed to mine management i.e.

Colliery Manager/Agent/GM of Area so that Notices of accidents in

accordance of (Reg. 9 of CMR 1957) and Sector 23 of Mines Act 1952

may be given and other necessary steps may be taken in accordance

of Section 23 of Mines Act 1952 & Reg. 9 of CMR 1957 and other

relevant laws.

16.0 ENVIRONMENTAL MANAGEMENT

Presently Mungoli-Nirguda OC mine is having Environmental clearance vide

letter No. J-11015/299/2010-IA.II(M) Dated 30th March 2011 from Director,

MoEF, New Delhi for a production capacity of 4.00 Mty and total leasehold area

of 818.05 Ha. Present proposal for Mungoli-Nirguda Extension Deep OCM is for a production capacity of 3.50 Mty and total area of 1317.55 ha, hence

environment clearance will be required for Mungoli-Nirguda Extn. deep OC mine

(Peak capacity of 4.375 Mty), due to change in total project area.

Although, the target capacity of the mine has been planned as 3.50 Mty, the mine

may achieve higher or lower than target capacity under following favourable or

unfavourable geo-mining, climatic and other conditions :



i) Availability of larger or smaller strike length and flatter or steep gradient of

seam. In the proposed mine the peak capacity of 4.375 Mty is likely to be

achieved during the period from 6th year to 9th year due to larger strike

length and flatter gradient.

ii) Less or more number of rainy days in particular years.

iii) Timely and efficient working by hiring/out-sourcing agency or vice versa..

iv) Encountering less or more geological disturbances than projected in the

geological report.

v) Upgradation of size and type of HEMM at the time of replacement due to

technological advancement. Due to above conditions, it is possible that the production from mine may be

more or less than target capacity. In case of higher than target production, the

higher production is catered through cushion available in the system or by

increasing workload of out-sourcing agency as departmental capacity can not be

increased for short and irregular period of such higher than target capacity.

Hence, inclusion of peak capacity in calendar programme is not feasible. But, a

peak capacity of 25% more than target capacity (4.375 Mty) is very likely in some

years of mine life.

16.1 AIR QUALITY MANAGEMENT

Air pollution is likely to be generated due to dust, exhaust from vehicles, blasting

fumes etc. In opencast mines, dust is likely to be produced during blasting,

crushing of coal, handling of overburden and coal, drilling and operation of

HEMM. The following measures have been proposed to control air pollution : i) Water spraying is to be carried out on haul road at regular interval during

each shift.

ii) Water spraying arrangement at dust generating points in CHP, feeder

breaker, conveyor transfer points etc.

iii) Proper maintenance of all internal combustion engines to reduce smoke and

exhaust fumes.



iv) Dust extractors in working condition in all the drills

v) Tree plantation in rows and blocks along the approach road of the mine and

also along the coal transportation road on both sides. vi) Perimeter tipping of external overburden dumps. Tree plantation on the

slope of the perimeter dump. vii) Water spraying mixed with safe and non-toxic dust suppression chemicals

on haul roads during dry months. viii) Coal transportation in trucks covered with tarpaulin. ix) Avoiding overloading of trucks. x) Frequent cleaning of coal transportation road.

16.2 WATER QUALITY MANAGEMENT

The quantity of mine water pumped out would vary according to the season. The

mine water may contain various impurities like coal dust, traces of grease, oil etc.

in various proportions. The mine water would be allowed to collect in the quarry

sump where primary settling would take place. The mine water would then be

pumped into secondary settling tanks on the surface. Here the water would be

allowed to settle and thereafter part of treated water will be utilized for meeting in

house water requirement (like dust suppression, watering of plants, washing of

HEMM, potable use etc). Peripheral trenching is recommended near external OB

dumps for coursing the run-off and leached water from the dumps. If required, the

water may be sent to surface settling tanks before discharging it into the drainage

channels.

The used water from the industrial area comprising CHP, Workshop, Garage etc.

may be contaminated with grease, oil, coal dust, dirt etc. This water will be

allowed to settle and suitable treatment will be carried out in oil and grease trap.

Thereafter the treated water will be mostly recycled.



16.3 GROUND WATER MANAGEMENT

Due to proposed project, it is anticipated that the effect on ground water regime

will be pronounced upto around 500 m from mine edge and effect will be

pronounced in the down-dip side and milder in the up-dip side. But this effect will

be temporary in nature and once the project is over, after 2 – 3 rains, the regime

will regain its almost original status. Any shortage of water in the affected villages

during the temporary period will be supplemented through supply of treated water

pumped out from the mine.

16.4 NOISE AND GROUND VIBRATION MANAGEMENT

Existing noise level at the mine site (wrt pre-mining level) is likely to increase and

following measures are being suggested to reduce noise and ground vibration

effects : i) With judicious use of explosives and correct blasting techniques, ground

vibration and noise pollution would be reduced.

ii) Structures prone to vibration or those with moving parts are suggested to be

inspected periodically and source of vibration should be damped to

minimize noise and vibration. iii) Proper maintenance of HEMM and exhaust silencers. iv) Vegetation barrier around the service buildings will act as effective acoustic

barrier.

v) Ground vibration and fly rock can be controlled by proper use of delay

detonators. This will help to reduce the noise pollution.

16.5 FLORA AND FAUNA MANAGEMENT

No Changes in the diversity of species or number of any species of animal and

no reduction in the number of any unique, rare or endangered species of animals

are anticipated. Any deterioration to existing fish or wild life habitat due to mining

is ruled out. Similarly, no changes in the diversity of species or number of any



species of plants and also no reduction of the number of unique, rare or

endangered species of plants are anticipated. Adequate plantation has been proposed with native species to maintain the

diversity and also to attract the fauna.

16.6 LAND RESOURCE MANAGEMENT

Regarding land use during mining, in addition to excavation of quarry for coal,

overburden dump will be created along with development of other mine related

infrastructures. Overburden dump is proposed to be technically and biologically

reclaimed and sufficient greenery will be developed.

16.7 ENVIRONMENT MANAGEMENT SYSTEM

To have a close watch on the environmental condition and implementation of

various measures suggested, a multi- disciplinary approach is essential. At

present WCL headquarter acts as apex body which supervises the activities

relating to environment at project level through the General Manager. General

Manager of the area coordinates the activities of various disciplines in the area to

render all necessary assistance at the implementing level i.e. the project. Area

Nodal Officer (Environment) monitors all aspects of environment on behalf of the

General Manager. He also takes suitable steps for generation of environment

data alongwith its analysis and interpretations. As far as plantation is concerned

horticulturist with suitable backup staff is provided in the area for undertaking the

plantation jobs including raising of a nursery. Sub-Area Manager is responsible

for mechanical reclamation of the area. He is also responsible for biological

reclamation with assistance of GM’s office.

16.8 CAPITAL PROVISION

A capital provision of `. 97.95 Lakhs has been made against environment

protection and details are as provided in the Appendix G. In addition to this, `.

6.00/t has been considered in the report for revenue expenditure related to

environmental activities in the mine.



17.0 LAND AND REHABILITATION 17.1 LAND REQUIREMENT

It is proposed to acquire about 529.18 ha of land in addition to existing acquired

land (788.37 ha) for Mungoli-Nirguda OCM in this PR. This additional land

includes area (12ha) for Mungoli village rehabilitation and about 50 ha for setting up Railway siding. The total land for the project works out at 1317.55 ha (788.37+529.18ha). The village-wise break-up of additional 529.18 ha land

proposed to be acquired in this PR is tabulated below :

Land Requirement

17.2 LAND USE

The land use of 1317.55 ha land for the proposed project is as tabulated below : Sl. No Particulars Area (ha) 1. Quarry/ exposed Area (including existing quarry) 513.47 2. External OB dump (including existing dumps) 295.00 3. Embankment around quarry (including existing

Embankment) 70.00

4. Proposed Top Soil dump (to be rehandled) 80.00 5. Land for proposed relocated Magazine * 08.00 6. Land for proposed relocated Mungoli Village * 12.00

Sl. No. Name of Village Type-wise Area of Land (Ha) Tenancy Govt Total

1 Matholi 6.74 0.00 6.74 2 Mungoli 69.62 10.87 80.49 3 Shivani 140.34 2.83 143.17 4 Sakhara 67.72 2.00 69.72 5 Kolgaon 150.88 16.18 167.06

6

Land For Proposed Railway Siding. (Location to be decided by Area. Tentative Location at Borgaon near Access Trench of Penganga OC)

50.00 0.00 50.00

Sub Total 485.3 31.88 517.18 7 Land For Village Rehabilitation 12.00 12.00 GRAND TOTAL 497.30 31.88 529.18



Sl. No Particulars Area (ha) 7. Infrastructure including colony (Approx.) 25.00 8. Residential Colony 7.60 9. Roads (Existing and Proposed including Diversions) 30.00 10. Railway siding* 50.00 11. Blasting / Safety zone 123.79 12. Rationalisation of boundary 102.69 Total Land 1317.55

*Location of these shall be decided by implementing authority. For Railway

Siding, Mine/Area has proposed about 50.00 ha of land adjacent to ACC factory.

17.2 COMPENSATION & REHABILITATION

The tentative number of maximum employment generation against additional tenancy land to be acquired works out to 615. However, for the economic

evaluation one time monetary compensation in lieu of employment (@ `. 5

lakh/Acre) for 30% eligible land looser has been considered in this PR.

In this report resettlement / rehabilitation of Mungoli village is proposed as it is

located very close to the existing mine. As per the data communicated by Mine /

Area, the population and no. of family in the Mungoli village are as follows :

Sl. No. Particulars Data as communicated by Mine/ Area

1. Population 1100

2. Residential structure 600

A Capital provision of `. 59.7557 crores have been made in this PR for

resettlement of Mungoli Vilage. This includes 12.00 ha land for resettlement site

of village. The resettlement work of 'Beghar Basti' located over coal bearing area

is already in process.

18.0 MINE CLOSURE PLANNING 18.1 Mine closure planning has to be carried out at the starting of the mine and

needs periodic reviewing and revision during its life cycle to cope with the geo-

technical constraints, safety and economic risks, social & environmental



challenges. For the Mine Closure activities, a corpus fund is created by opening

an escrow account with the coal controller organization in nationalised bank. An

amount @ ` 6.00 lakhs per Ha of the project area is requitred to be deposited in

this account for final mine closure. Progressive mine closure is done with the

fund provided in approved report. The above rate has been adopted as per

Circular No. 55011-01-2009-CPAM, Government of India, Ministry of Coal, dated

27 August 2009.

The Mine Closure Plan for existing Mungoli Nirguda OC mine for 818.05 ha land has already been approved by WCL Booard in 240th meeting held on 25th August 2012.

In this PR of Mungoli Nirguda Extension (Deep) OC mine, the total corpus of

closure cost has been worked out for additional 499.50 ha land (1317.55 ha – 818.05 ha) only. Based on this corpus fund and 14 years production life of the

project, the annual corpus amount has been calculated for year 2016-17 as given

in the table below. This amount is to be deposited in the escrow account in 2016-17 (1st production year) and in subsequent years with 5% escalation.

The annual Mine Closure Cost with 5% escalation in subsequent years is

tabulated below.

Sl. No.

Details Qty.

1 WPI for All Commodities for Aug 2009 129.60 2 WPI for All Commodities for Sep 2015 176.60 3 Ratio of WPI =(2) / (1) 1.3626543 4 Total land area requirement for the project (ha)= 499.50

5 Mine closure cost @ ` 6 lacs/ha (` in Lakhs) = 2997

6 Mine closure cost after indexing from Aug'09 to July `15 (`. In Lakhs) = (5) x (3) = 4083.88

7 Production Life of the mine in years = 14

8 Annual Contribution to Escrow fund as on 2015-16 (` in Lakhs)= (6) / (7)= 291.70

9 Annual Contribution to Escrow fund in 1st production year (2016-17) (` in Lakhs)= (8) x 1.05 306.28



Year Annual

Production (Mty)

Corpus Fund (`. in Lakhs)

Mine Closure Cost (` /t)

1 2015-16 0.00 - - 2 2016-17 2.00 306.29 15.31 3 2017-18 3.50 321.61 9.19 4 2018-19 3.50 337.69 9.65 5 2019-20 3.50 354.57 10.13 6 2020-21 3.50 372.30 10.64 7 2021-22 3.50 390.91 11.17 8 2022-23 3.50 410.46 11.73 9 2023-24 3.50 430.98 12.31

10 2024-25 3.50 452.53 12.93 11 2025-26 3.50 475.16 13.58 12 2026-27 3.50 498.92 14.25 13 2027-28 3.50 523.86 14.97 14 2028-29 3.50 550.05 15.72 15 2029-30 1.85 577.55 31.22

Total 45.85 6002.88 13.09 Thus the mine closure cost adopted in Unit Cost Estimates (Appendix-C) is

`. 13.09/t.

18.2 BREAK-UP OF CLOSURE FUND FOR VARIOUS CLOSURE ACTIVITIES

1. Mining is to be carried out in a phased manner initiating afforestation /

reclamation work in the mined out area of first phase while commencing mining

in the 2nd phase.

2. Upto 80% of the total deposited amount including interest accrued in the

ECSROW account may be released after every 5 years. The amount released

should be equal to expenditure incurred on Progressive Mine closure in past 5

years or 80% whichever is less.

3. The above cost/expenditure will be met from the corpus fund deposited in the

escrow account 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 (as per the mine closure guideline).

4. The amount indicated separately under each head in the following table is

indicative only and based on actual expenditure the amount may change.



BREAK-UP OF CLOSURE FUND FOR VARIOUS CLOSURE ACTIVITIES

Sl. No.

Activity % of Total Mine closure

Cost

Amount (`.in Crores)

Remarks

A Dismantling of structures To be included in final mine closure plan.

Service Building 0.2 0.1201 Residential Building 2.67 1.6028 Industrial Structures like, Workshop, Field

substation, etc. 0.3 0.1801

B Permanent Fencing of mine void and other dangerous area

0.0000 To be included in final mine closure plan. Random rubble masonry of height 1.2 meter

including leveling up in cement concrete 1:6:12 in mud mortar

1.5 0.9004

C Grading of highwall slopes 0.0000 To be included in final mine closure plan.

Levelling and grading of highwall slopes 1.77 1.0625 D OB Dump Reclamation 0.0000 Handling/Dozing of OB Dump into mine void

and preparation of Internal dump for reclamation.

88.66 53.2215 71% for progressive and 17.66% for final mine closure.

Technical and Bio-reclamation including plantation and post care.

0.4 0.2401 Equal Weightage throughout the life of the mine.

E Landscaping 0.0000 Landscaping of the open space in leasehold

area for improving its aesthetic and eco value. 0.3 0.1801 Equal Weightage

throughout the life of the mine.

F Plantation 0.0000 Plantation over cleared area obtained after

dismantling. 0.5 0.3001 To be included in

final mine closure plan.

Plantation around the quarry area and in safety zone.


Plantation over the external OB Dump 0.02 0.0120 Equal Weightage throughout the life of the mine.

G Post Closure Env Monitoring/Testing of Parameters for three years.

0.0000 For three years after mine closure

Air Quality 0.22 0.1321 Water Quality 0.2 0.1201 H Entrepreneurship development

(vocational/ skill development) Training for sustainable income of affected people.


I Miscellaneous and other mitigative measures.

2 1.2006 Equal Weightage throughout the life of the mine.

J Post Closure Man power cost for supervision

0.8 0.4802 To be included in final mine closure plan.

TOTAL 100% 60.0288



19.0 MANPOWER & PRODUCTIVITY 19.1 MANPOWER REQUIREMENT

The existing Manpower of Mungoli-Nirguda OCM is 839. As discussed in the

meeting held at WCL (HQ) on 10.10.2015, it was decided to consider entire

existing manpower in the report as the existing departmental capacity will be

maintained in the mine. The manpower requirement for proposed project has

been calculated on the basis of 3 shift operation for 330 days in a year.

The manpower requirement of this project has been summarised as follows:

Manpower Requirement

Sl. No. Particulars Partial Hiring Option

1. Executives 43

2. Non-executives:

i) Monthly rated staff 147

ii) Daily rated staff 649

3. Total 839

The manpower on the basis of group operation has been indicated in the

following table.

Sl. No.

Particulars Partial Hiring Option

1 Coal Production ( Mty) 3.50 2 Peak OB removal (Mm3/y) 22.19 3 Manpower on the basis of group

operation (Nos.):

i) Coal 81 ii) Overburden 164 iii) Common 593 iv) Reclamation 1 Total 839



19.2 PRODUCTIVITY

The annual capacity of this mine has been rated as 3.50 Mty of coal and 22.19

Mm3 Peak OB in proposed Partial hiring Option. The manpower employed would

be 839. The manpower and productivity is as follows :

Manpower Manshift OMS (t)

839 214896 15.802

20.0 PROJECT IMPLEMENTATION SCHEDULE

The proposed OC mine is extension of existing Mungoli-Nirguda OC mine;

hence, it proposed to use existing infrastructural facilities of Mungoli-Nirguda OC

with some modification (if required). It is proposed in this report to deploy the

Dragline of Ghughus OC mine in the proposed Mungoli Nirguda Extension OC

mine. This will require marching of Dragline from Ghughus OC to the proposed

Extension (Deep) OC mine. Preparatory work to deploy Dragline in the mine will

have to be completed prior to shifting of Dragline. The other important activities

include preparation and approval of EMP, acquisition of additional land, village

rehabilitation, tender and work award for hiring / out-sourcing of HEMM etc. In

addition to this, associated infrastructural facilities will have to be provided in the

proposed Extension (deep) OC mine in order to ensure its proper development. The main project implementation activities and their schedule of completion are

tabulated below :

Sl.

No.

Major Activities Completion

Schedule

1 Preparation and Approval of PR 1st year

2 Acquisition of Tenancy, Govt. and Forest Land 1st year to 3rd year

3 Construction of Service Buildings, Roads and

Culverts and water supply & sewerage etc.

3rd year to 6th year

4 Procurement and Commissioning of Common HEMM 2nd year to 5th year



Sl. No.

Major Activities Completion Schedule

5 Procurement, Erection and Commissioning of

Electrical and Power Supply equipment

1st year to 4th year

6 Procurement and Commissioning of CHP 1st year to 3rd year

7 Procurement and Commissioning of Pumps & Pipes

and Fittings

1st year to 6th year

8 Commissioning of Workshop 1st year to 2nd year

9 Incoming Power Supply Arrangement 1st year to 2nd year

10 Pitching of Embankment on river side 2nd year to 4th year

11 Diversion of Arterial road (4.5 km) 3rd year to 6th year

12 Diversion of 150mm Water Pipeline 1st year to 4th year

13 Marching of Dragline from Ghughus OC and various

related activities for Dragline deployment

1st year

14 Haul Road Construction 3rd year to 6th year

15 Strengthening of existing Arterial roasd (1 km) 2nd year to 4th year

16 Construction of Ground Bunker (10000 t capacity), Silo

and Rapid loading arrangement Near Railway Siding

at Penganga OC mine

2nd year to 3rd year

21.0 PROJECT ECONOMICS 21.1 In this PR, coal extraction by Surface Miner and removal of entire parting OB and

part of Top OB is proposed by leasing/out sourcing of HEMM for excavation,

transport, drilling, dozing, dumping etc. Departmental Dragline will be deployed to

work about 20m OB above coal seam in the Dragline patch. In addition to this,

the existing departmental HEMM (4.00 Mm3 capacity) will be deployed to remove

Top OB in Shovel Dumper patch and from one OB bench above Dragline bench.

Coal Handling, Pumping, Blasting and surface illumination would be also done

departmentally. Mine target is 3.50 Mty and the weighted average GCV of coal

with 0.05m contaminations at each contact point works out to 4674 kCal/kg (G-9)

(calculated).



21.2 SCOPE OF WORK PROPOSED TO BE OUTSOURCED

The scope of work by hiring/outsourcing of HEMM shall include coal extraction by

Surface Miner, blast hole drilling, earth work excavation, loading, transportation,

dumping, dozing, leveling at dumping sites, water spraying and land reclamation

etc. as per guidelines of the project authorities highlighted in this project report or

otherwise to suit the local conditions. All statutory rules, regulations and

applicable laws are to be followed including those related to government licenses,

workmen compensation, insurances etc.

Excavated materials shall have to be dumped at sites, which will be shown by

project authorities from time to time in accordance with dump plan of this report.

Haul road has to be maintained with the requisite gradient as per regulation and

in accordance with the conditions imposed by DGMS in its permission under

regulation 98(1) and (3) and other relevant provisions of Coal Mines Regulations,

1957.

21.3 SCOPE OF WORK PROPOSED TO BE DONE DEPARTMENTALLY

Removal of about 20 m of OB above coal seam by Dragline would be done by

departmental HEMM. In addition to this, the existing departmental HEMM (To

maintain existing mine capacity of 4.00 Mm3 capacity) will be deployed to remove

Top OB in Shovel Dumper patch and from one OB bench above Dragline bench.

Blasting operation, surface illumination, pumping and CHP facilities would also be

provided departmentally.

21.4 OUTSOURCING RATES

The rates for OB by hiring of equipment for the proposed mine have been

estimated on the basis of Approved FD approved rates circulated by WCL,

updated with change in price of diesel for October, 2015. Rates for excavation for

hiring/ outsourcing of HEMM are being adopted in this report for planning

purpose and economic evaluation of the project. These rates may vary at the

time of actual implementation. The rates include excavation, transport, drilling,

dozing at face & dumps, water spraying and Land Reclamation. It is also



suggested here that before awarding the work to hiring agency, geological

structure should be further confirmed by drilling additional boreholes. Lead for

OB, bench-wise, horizon-wise has been calculated for each cut on weighted

average basis keeping into account the OB dumping programme. On actual

implementation of report these rates and lead may vary based on site conditions.

It is suggested to re-assess hiring rates again based on site conditions while

awarding tender. The average rate for Coal & OB removal is as follows :

Year wise Workload and Hiring Rates for Out-sourcing Agency

Yr

Coal Top OB Parting OB Trench Cutting Rehandling of

OB

Prod.

Hiring

Rate

(`./t)

Volume

(Mm3)

Hiring

Rate

(`./m3)

Volume

(Mm3)

Hiring

Rate

(`./m3)

Volume

(Mm3)

Hiring

Rate

(`./m3)

Volume

(Mm3)

Hiring

Rate

(`./m3)

1 - - - - - - - - - -

2 2.00 63.59 6.15 61.79 1.38 56.93 1.00 54.57 3.00 56.93

3 3.50 63.59 12.15 61.79 2.68 56.93 0.27 54.57 3.90 56.93

4 3.50 63.59 12.15 61.79 2.68 56.93 1.00 54.57 1.50 56.93

5 3.50 63.59 12.15 61.79 2.68 56.93 0.51 54.57 - -

6 3.50 64.45 12.15 61.79 2.68 56.93 - - - -

7 3.50 64.45 11.65 61.79 2.48 56.93 - - - -

8 3.50 64.45 11.65 61.79 2.48 56.93 - - - -

9 3.50 65.32 11.65 61.79 2.48 56.93 - - - -

10 3.50 65.32 13.27 61.79 2.48 56.93 - - - -

11 3.50 65.32 11.65 61.79 2.58 56.93 - - - -

12 3.50 65.32 12.65 60.17 2.96 56.93 - - - -

13 3.50 65.32 6.59 60.17 2.39 56.93 - - - -

14 3.50 66.18 13.50 60.17 2.10 56.93 - - 3.50 61.79

15 1.85 66.18 5.31 60.17 0.93 56.93 - - 4.28 61.79

Total 45.85 152.67 32.98 2.78 16.18



21.5 PROJECT ECONOMICS 21.5.1 EXISTING CAPITAL AND ADDITIONAL CAPITAL

The total estimated capital investment for the proposed Mungoli - Nirguda

Extension (Deep) OC mine, having an annual capacity of 3.50 Mt of coal and

22.19 Mm3 of Peak OB, works out `. 498.4176 crores (including WDV of existing

assets worth `. 36.5857 crores). Additional capital requirement for Mungoli -

Nirguda Extension (Deep) OC mine works out to `. 461.8319 crores. The phasing

of capital has been given in Appendix- A. The summarised form of Appendix-A is

given below:

A/c Head Particulars Capital Provision (`. Crores)

Total Capital

WDV as on 31.03.2016

Additional Capital

1 2 3= (4+5) 4 5 01 Land 208.3890 0.0112 208.3778 02 Buildings 12.2108 9.8583 2.3525 03 Plant & Machinery * 123.7853 26.0216 97.7637 04 Furniture & Fittings 0.3763 0.0263 0.3500 05 Railway Siding 100.0174 0.0000 100.0174 06 Vehicles 0.9658 0.0444 0.9214 07 Prospecting & Boring 0.2400 0.0000 0.2400 08 Mine Development 51.4330 0.6239 50.8091 09 Revenue Expn. Capital 0.0000 0.0000 0.0000

Total 498.4176 36.5857 461.8319

* (Gross Block & WDV of 24/96 dragline of Ghghus OCP has been considered for the proposed project, as the Dragline would be used in the proposed project)

21.5.2 BASIS OF PRICE OF P&M & CIVIL WORKS

The pricing of P&M is based on the standard price list of June, 2015 (Updated

upto October’ 2015) circulated by the specialist cell of CMPDI, Ranchi. The cost

of civil works has been estimated on the basis of Cost Index of 560 at

Maharashtra as on II half of the year 2015 with a base of 100 in Delhi as on

1.1.1992. The other cost indices taken in costing are as under:-



Indices AICPI WPI Diesel Cost Electricity Cost Value 5957.56 for the period

1.09.15 to 31.12.15 for non Executives

176.6 (prov.

Sep’2015)

`. 50.34 /lit. (Oct,2015)

`. 9.84/kWh

21.5.3 OPENING OF REVENUE ACCOUNT

The proposed mine is extension of existing Mungoli Nirguda OC mine which is

already in revenue and hence the proposed Mungoli Nirguda Extension (Deep)

OC mine is in revenue from 1st year.

21.5.4 REPLACEMENT CAPITAL

Yearwise replacement capital is indicated in cash flow statement (App.-D)

21.5.5 SOURCES OF FINANCE: INTERNAL RESOURCES OR LOAN

The source of finance will be through internal resources.

21.5.6 COMPLETION COST

The completion cost for the project works out to `. 551.9755 crores including

WDV of existing assets of `. 36.5857 crores.

21.5.7 COST OF PRODUCTION AT DIFFERENT LEVEL OF PRODUCTION:

A) Salaries & Wages Cost

The details of category-wise /scale-wise manpower requirement and year-wise

estimated wages cost are given in appendix-B.1. The estimated salaries & wages

cost works out to `. 135.86/t at 100% target capacity.

B) Stores Cost

Stores cost has been estimated taking into account provision for repair &

maintenance, POL, explosives and miscellaneous stores cost. The estimated

stores cost has been worked out to `. 200.59/t at 100% target capacity.

C) Power Cost



The average power cost works out to `. 51.32/t at 100% capacity.

D) Misc. Expenditure

This cost has been estimated to cover expenditure on printing & stationary,

postage, telephone, repair & maintenance of assets other than P&M, workshop

debit, ins. & taxes for vehicles and other repairs and a further provision has been

made for deterioration of coal stock. The miscellaneous cost per tonne of coal

production works out to `. 59.69 at 100% level of operation.

E) Administrative Charges

As per decision of 317th CIL Board meeting held on 13/07/2015, 10% of

administrative overhead has to be adopted as administrative cost while

calculating IRR. However for calculating per tonne cost, existing methodology

with due adjustment for incremental production has to be adopted. Accordingly,

`. 89.86/t [(Rs.187.22-12.48)*(1.55/3.50)+12.48], in which 12.48 is the Apex CIL

overhead, has been considered in Appendix-C to calculate per tonne cost of

production whereas only `. 18.72/t has been considered for IRR calculation.

F) Hiring/Outsourcing Cost

The average outsourcing cost per tonne of coal production works out to `. 310.30

at 100% level of operation.

G) Interest on Working Capital

Interest on working capital (@ 14.50%) works out to `. 38.45/t at 100% capacity.

H) Depreciation

Straight line method of depreciation has been considered to arrive at depreciation

cost per tonne of coal production. The depreciation cost works out to `. 105.25

per tonne at 100 % capacity.



I) Interest on Loan Capital

Interest @ 11.50% on loan capital has been computed based on given debt

equity mix. Interest on loan capital works out to `. 28.00 /t.

J) Environment Related Cost

`. 6.00/t of coal has been provided for environmental related cost in the project.

K) Mine Closure Cost

`. 13.09 /t have been provided in the project against mine closure cost at 100%

target production.

L) Cost of Production

Total cost of production works out to `. 1038.41/t and `. 1128.02/t at 100%

and at 85% of target capacity respectively. This cost of production includes 100% administrative charges with due adjustment for incremental production as explained in paragraph 21.5.7.E.

21.5.8 GRADE OF COAL & WEIGHTED AVERAGE SELLING PRICE

The weighted average GCV of coal with 0.05m contamination of coal at the

contact points works out to 4674 kCal/kg (Grade G-9) (calculated). Selling price

for G-9 coal is `. 1190.50 and `. 1570.50 For power and non power sector

including CHP charges.

- Transportation / Loading / Sizing Charges

`. 79.00/t. has been considered for sizing charges for coal upto (-) 100 mm size. `

26/t has been taken for rapid loading charges. So the selling price for coal

becomes `.1216.50/t for Power, Fertilizer and Defense sector and `. 1596.50/t

for Other than Power, Fertilizer and Defence Sector.



- Despatch of Coal & Point of Sale.

Coal from the face would be dispatched to coal stock yard. Coal from ground

stock will be loaded into another rear discharge trucks/tippers by pay loaders and

will be transported at Penganga siding. One receiving pit has been proposed to

receive coal by rear discharge trucks/tippers which will be reclaimed from

receiving pit to 4000 t capacity Silo. Wagon loading of coal from silo will be done

by 4000 tph capacity rapid loading system.

21.5.9 PROFITABILITY (PROFIT/LOSS)

The profit with average sale value of coal as `. 1216.50/t for power fertilizer

and defense sector works out to `. 178.09/t and `. 88.48 /t at 100% and 85%

target capacity respectively.

The Profit with average sale value of coal as `. 1596.50/t for other than power,

fertilizer and defence sector works out to `. 558.09/t and `. 468.48/t at 100%

and 85% capacity respectively.

21.5.10 MANPOWER & OMS

The total manpower considered in the PR is 839 giving OMS of 15.802 t. Details of manpower are given in Appendix-B and B.1 of this report.

21.5.11 EMS

The overall EMS works out to `. 2083.10 based on CIL norms. The salary &

wages works out to `. 135.86/t.

21.5.12 FINANCIAL IRR

The IRR of the project at 100% and 85% capacity works out to 22.67 % & 13.30 % for power sector.



The IRR of the project at 100% and 85% capacity works out to 59.08 % & 42.94 % for Non-Power sector.

21.5.13 SENSITIVITY ANALYSIS

Risk analysis and its impact on IRR, NPV (@ 12%) and Desired selling price at

discounting rate of 12% have been studied due to change in different

parameters such as Land and R&R capital cost, Mine development capital cost,

Salary and wages cost, Store cost, Power cost, Operating cost, sales realization

and capacity utilization etc. The Sensitivity analysis is given in Appendix – C4

of this report.

21.6 CONCLUSION

This PR of Mungoli Nirguda Extension (Deep) OC mine has been prepared for a target capacity of 3.50 Mty for Partial Hiring option. In this option, coal extraction by Surface Miner with Pay-loaders and Dumpers, parting removal by Shovel Dumper and Dozer with Ripper attachment and part of Top OB removal is proposed by hiring of HEMM. Removal of about 20m OB above coal seam by Dragline operation and 4.00 Mm3/y OB (to maintain existing departmental capacity) by shovel dumper is proposed by departmental equipment. Total Cost of Production is `. 1119.84/t at 85% of target capacity considering

100% administrative charges adjusted for incremental production. Average Sale

Price of coal (Grade G-9) is `.1216.50/t (-100 mm including rapid loading

charges) for Power Sector. IRR of the project works out to 22.67% and 13.30 % for power sector at 100% and 85% of target capacity respectively considering 10% administrative charges in cash flow. Since, the Project Report in the Partial Hiring Option is yielding more than 12.00% IRR at 85% of target capacity for power sector, hence this option

with total capital of `. 498.4176 crores (Additional capital of `. 461.8319

crores + WDV of existing assets of `. 36.5857 crores) may be considered for



approval by competent authority as this mine is economically viable for approval on notified price.

The other related mining and financial parameters are as tabulated below:-

Sl. No.

Particulars Partial Hiring Option with Surface miner on hiring

A Mining Parameters 01 Mineable Reserves (Mt) 45.85 02 Grade/GCV of coal (kcal/kg) 4674 (Grade : G 9)

03 OB Volume (Mm3) Incl. Trench Cutting (Excl. R/H of OB)

272.63

04 Average S/R (Excl RH) 5.88

Sl. No.

Particulars Partial Hiring Option with Surface miner on hiring

05 Mine Capacity (Mty) 3.50 06 Manpower 839 07 Overall OMS (t) 15.802 B Financial Parameters Power Sector 01 Total Capital incl WDV (`. In Crores) 498.4176

02 Additional Capital Required (`. In Crores) 461.8319

03 Cost of Production (`./t)

i @ 100% of target capacity (`./t) 1038.41

ii @ 85% of target capacity (`./t) 1128.02

04 Av. Selling Price (Notified) (`./t) 1216.50

05 Profit(+)/Loss(-) (`./t)

i @ 100% of target capacity (`./t) 178.09

ii @ 85% of target capacity (`./t) 88.48 06 Financial IRR @ 100% capacity (%) 22.67% 07 Financial IRR @ 85% capacity (%) 13.30 %

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