pr for junad extension oc job no. 4020866 ( updated june

PR FOR JUNAD EXTENSION OC JOB NO. 4020866 ( UPDATED JUNE,, 2007)

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EXECUTIVE SUMMARY 1.1 BACKGROUND OF THE PROJECT REPORT

The proposed Junad Extension OC Project is an extension of existing Junad OC mine in Junad block located on the western limb of Wardha Valley Coalfield in Yeotmal district of Maharashtra. The P.R. for Junad OC mine was prepared by CMPDI in October, 1989 and was sanctioned by the WCL Board in May, 1990 for a capital of Rs. 19.148 Crores for a production capacity of 0.32 Mty. The actual mining operations at the project could be started in November, 1998 due to delay in land acquisition. Revised Cost Estimate for the project was prepared in November, 1999 and was sanctioned by WCL Board in December, 1999 for an investment of Rs. 34.3367 Crores for the same production capacity of 0.32 Mty. The total mineable reserves was 3.26 Mt and the dip side limit was fixed at 120 m FRL of the coal seam which corresponds to about 88 m depth. The life of the Junad OC mine was 11 years. The Project Report for Junad Extension OC mine was originally prepared with three options i.e. Departmental Option, Partial Hiring Option and Total Hiring Option in March,2005. No Option was giving 12% I.R.R. at 85% capacity. In 2005, Junad Extension OC was offered to MAHAGENCO, for a negotiated price which will yield 12%I.R.R. required as per Government guidelines. In the meeting held between WCL & MAHAGENCO on 12.5.2007, it was agreed for a price of Rs.1077/t as on March,2005 for Partial Hiring Option with an Escalation Formula agreed by both the parties. The reserves of existing Junad OC mine will be exhausted in March, 2008. The proposed Junad Extension OC has been envisaged for additional reserves of 6.13Mt at an average Stripping Ratio of 8.26 m3/t and a maximum depth of 170 m. with an annual target of 0.60 Mty from 2008-09 onwards. The total capital for Partial Hiring Option in Junad Extension OC comes to Rs.54.784 crores which includes W.D.V. of existing Junad OC mine (as on 31.3.2007) of Rs.16.0263 crores. Thus, additional capital for Partial Hiring Option to be sanctioned for Junad Extension OC is Rs.38.7577 crores (excluding W.D.V.).

2.2 RISKS/DIFFICULTIES INVOLVED The major constraints/risks involved in the proposed Junad extension OC mine are detailed below :

2.2.1 Land Acquisition

174.28 ha land has been acquired in existing Junad OC mine and it is proposed in this report to acquire additional 275.35 ha land for deepening of quarry, OB dumping, water pipe line diversion and road diversion and other infrastructures. Acquisition of land is one of the major constraints without which no mining activity can be started.


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An additional provision of Rs. 3.8445 crores has been made as cost of land @ Rs.1.5 lakh/ha. In addition to this, it is proposed to be given compensation package as per CIL norms which comes to Rs. 4.2668 crores.

2.2.2 OB Dumping & OB Rehandling

The Junad OC mine is located on the western bank of Wardha river and presently OB dumping is being done in the dip side of the quarry upto dipside lease hold boundary. There is no scope for further dumping on the existing dumps and difficulties are being faced by the mine management to accommodate the OB dump even in current year .

In RCE of Junad OC, it was suggested to dump OB of existing Junad OC project beyond surface boundary of 1:10 cut off ratio line. For this purpose additional 71.27 ha of additional land has been envisaged in RCE report of Junad OCP. But practically the External OB dumping in existing Junad OC mine is done from the toe of 1:10 coal OB ratio line. At present the dumping is done on the quarry area which is proposed for Junad extension project. The Area has notified 115.48 ha land under section 4 for dumping of external OB in dip side beyond boundary fault F1-F1 which also includes 71.27 ha of land proposed in sanctioned RCE of Junad OCP in 1999. In addition, about 10.33 Mm3 of OB already dumped by existing Junad OC mine in dip side of the quarry over coal bearing area where Junad Extension OCP is proposed requires to be rehandled for safe operation. About 10.33 Mm3 of OB is proposed to be rehandled @ Rs.35/m3.(plus Service tax)

2.2.3 Diversion of Water pipe line

A water pipeline serving to Pragati Nagar colony passing along the arterial road from Ukni to Kolar Pimpri OCP partly falls over the dip side dumping area of Junad Extension OC. It is required to divert this water pipeline partly so that the volume of required OB can be dumped in external OB dump, keeping safe distance from the dump. Capital Provision of Rs.37 lakhs has been kept for diversion of this water pipeline in the PR .

2.2.4 Part Diversion of Approach Road Existing approach road to the project will be partly diverted because of extension of

Junad OC mine. Diversion of existing approach road is proposed over an safety embankment, 30 m wide at top. Proper capital provision has been made in this report for this diversion.

2.2.5 Diversion of 33KV Power Transmission lines

One 33 KV power transmission line is passing over the proposed extension quarry area in south direction. The diversion of this power line is proposed and capital provision has been made for this purpose in Appendix A.8.1.

3.0 LOCATION AND COMMUNICATION The Junad Block, covering an area of about 4.05 sq.km is located on the western limb of Wardha Valley Coalfield and lies in the East of Ukni/Pimpalgaon Block and south of New Majri – Chargaon block across Wardha river. It is situated in Wani Tahsil of Yeotmal District, Maharashtra and is covered by Survey of India Toposheet No. 55P/4. The distance of existing mine from Nagpur is about 140 km.


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4.0 TOPOGRAPHY AND DRAINAGE

The general slope of the ground is from west to east. The HFL of Wardha river recorded in New Majri in 1979 was 190.74m and a major portion of the proposed area is below HFL. Junad Block exhibits moderately undulating topography. The elevation varies from 180.83 m to 195.18 m. The Wardha river flowing from north to sourth is the main drainage channel of the area. Considerable area of the block including the potential opencast area for expansion is below HFL 190.74 m of Wardha river as per national grid.

4.1 PRESENT LAND USE PATTERN

The entire land to be acquired for extension of the Junad OC Project is covered by black cotton soil and is very fertile and is generally used for growing mainly the cash crops like cotton, sugarcane, chillies, etc. apart from standard agricultural products like rice, wheat and jawar. The boundaries of three villages namely Aheri, Junad and Borgaon falls in the proposed leasehould boundary of the proposed Junad Extension OC Project. No village is coming in the proposed leasehold boundary of the project. All the land losers will be given compensation as per CIL package along with cost of land and no employment in lieu of land will be provided.

5.0 STATUS OF EXPLORATION

MECL drilled 55 boreholes in addition to 4 boreholes of D.G.M.(MS). 2 more boreholes drilled by CMPDI for coal depth determination.

Drilling Agency No. of Boreholes Meterage Name of Geological Report

MECL 55 (MWJ-Series) 8546.00 Geological Report on Exploration for Coal, Junad Block, MECL, June-1990

DGM (MS) 4 (JUD-Series) 716.53 -

CMPDI 2 (CMJU-Series) 79.00 Geological Note on Production Support Drilling in a part of Junad OC, CMPDI, Sept.2001

Total 61 9341.53

5.1 DENSITY OF BOREHOLES

In all, 61 boreholes fall in 4.05 sq.km. area of Junad Block. Density of boreholes is therefore 15 boreholes per sq.km. However, borehole density for quarry area is 12 boreholes per sq.km.

6.1 GEOLOGY OF THE MINING BLOCK The geological formation encountered in the present quarriable area are as follows :-

Formation Thickness (m) Lithology

Minimum Maximum

Soil 3.00 24.00 Black clayey soil and sandy soil

(MWJ-24) (MWJ-27)

Kamthis 6.00 101.00 Yellow, brown, red, yellowish white ferruginous sandstone, occasionally grey sandy shale/shale. (MWJ-37) (MWJ-12)

Barakar 12.78 133.55 Grey white medium to grey sandstone with shale, coal seams with shaly coal, etc. (MWJ-20) (MWJ-27)


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6.2 GEOLOGICAL STRUCTURE

Only 3 faults viz. Fault F3-F3, F4-F4 and F5-F5 are intersected in quarry. The fault F3-F3 is minor in nature and throw is 5 m. The throw of F4-F4 & F5-F5 is 20 m towards NE and 40 m SW respectively.

7.0 DESCRIPTION OF COAL SEAM 7.1 SEAM THICKNESS RANGE & VARIATION PATTERNS

The coal seam in Junad Block is thick Composite Seam ranges in thickness from 14.82 (MWJ-50) to 18.83 (MWJ-24). MECL, however, divided seam in two parts as Top Section and Bottom Section by a parting ranging from 0.09 (MWJ-24) to 2.21 in (MWJ-26), However, for proposed opencast quarry, it is considered as thick Composite Seam.

7.2 PARTING Parting between Top Section and Bottom Section varies from 0.09 m to 2.21 m and consist of shale, carb. Shale and occasionally intercalation of shale and sandstone.

7.3 QUALITY OF ROM COAL The present practice of mining in Junad Opencast is to mine whole coal seam

from roof to floor. The parting between the Top Section and Bottom Section is practically not possible to remove because of its steep gradient. Therefore, quality (including parting) has been assessed for the boreholes falling within the proposed quarry is given in the following table. The dilution of 5 cm at each contact point is also considered at roof and floor of seam.

RANGE OF COAL QUALITY OF UNDILUTED & DILUTED COAL OF ROM

B.H. No.

Thick. (m)

ONLY COAL (WITHOUT DILUTION) WITH DILUTION 5 cm AT EACH CONTACT Remarks

M% Ash% UHV K.Cal/kg

Gr. GCV K.Cal/kg

M% Ash% UHV K.Cal/kg

Gr. GCV K.Cal/kg

MWJ-10

17.59 7.16 26.6 4241 D 5010 7.12 27.0 4191 E 4978

MWJ-22

18.76 8.31 36.65 2696 F 3897 8.26 37.02 2651 F 3870

MWJ-24

18.83 8.45 25.46 4220 D 4930 8.42 25.7 4191 E 4912

MWJ-26

16.84 5.89 32.76 3566 E 4615 5.88 33.04 3529 E 4591 Including parting of 2.21m between Top & Bottom Section

MWJ-38

16.8 6.75 28.86 3986 E 4857 6.72 29.21 3942 E 4829

MWJ-50

14.82 6.36 24.56 4633 D 5319 6.33 24.94 4585 D 5287

From the above table, the weighted quality of coal without dilution and with dilution is as follows :-

Particulars Without dilution With dilution of 5 cm at each contact point

M% 7.22 7.18

Ash% 29.29 29.62

U.H.V. (K.Cal/kg) 3862 3822

Grade E E

G.C.V. (K.Cal/kg) 4748 4724


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8.0 Quarry Boundaries Quarry Boundaries of existing Junad OC Mine as per sanctioned R.C.E. report -

North : Safe distance of 125 m from Wardha river. South : Safe distance of 125 m from Wardha river East : Floor of decoaled existing Junad OC mine as on 1.4.2008 (as given by Area Plan) West : Projected floor as on 1.4.2008 (100m floor contour line, 88 m depth)

The Dip side limit of existing Junad OC mine is fixed at 88 m depth which corresponds to about 100m FRL. Different alternatives have been done in Sector Q3 and Sector U3 to arrive at a optimum stripping ratio with sufficient reserves for mining . Alternative 1a, 1b, 1c are studied in Sectors Q3/U3 by deepening of existing Junad OC mine. The details of the alternatives done are given as follows :-

ALT. No.

Quarry

Quarry Boundaries Depth (m) COAL (Mt)

OB (Mm3)

SR (m3/t) Eastern

(rise)side West (Dip) side

South boundary

North boundary

Min Max

(1a)

Quarry in Sector Q3

Floor of composite seam of existing quarry as on 31.3.2006 (RCE limit)

150m depth (40 m FRL)

Keeping quarry surface at 125m distance from Wardha river

Keeping quarry surface at 125m distance from Wardha river

88

150

4.18 28.35 6.78

(1b)

Quarry in Sector Q3


170m depth (20 m FRL)

Keeping quarry surface at 125 m distance from Wardha river


88

170

6.13 50.62 8.26

(1c)

Quarry in Sector Q3


200m depth (-10m FRL)



88 200 7.75 70.80 9.13

Alternative IB is selected on the basis of conservation point of view and increased reserves resulting in increased life of the project and also from optimum stripping ratio point of view. The selection of this alternative is also due to lack of dumping space in the dip side of the block. The mineable reserves and stripping ratio of Alternative I B considered in this PR is summarized below :-


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Particulars OB (Mm3) Coal (Mt) S.R. (m3/t)

Alternative I B. depth 170 m, dip side FRL limit 20 m

50.62 6.13* 8.26

* Reserves/Stripping Ratio is considered beyond the Quarry Floor limit of sanctioned R.C.E. of existing Junad OC mine and excludes rehandling of existing dipside OB dump.

9.0 MINE PARAMETERS

In Junad Extension OC mine ,it is proposed to extend existing OC mine in dip side upto 170m depth. The mine parameters of the proposed extended quarry are detailed below:-

Sl. No.

Particulars (Anticipated as on 1.4.2008)

Unit Extension Quarry

1 a) b)

Face length On the floor of composite seam On Surface

km 1.15 – 1.28 1.50 – 1.70

2 a) b)

Depth upto floor of composite coal seam Initial Final

m 30 - 88

170

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a) b)

Width Below the decoaled void of existing Junad Extn.OC On the floor of composite seam On Surface

m

250-325 400-525

4 a) b)

Area of the quarry On floor On Surface

ha 35.20 70.50

5 Gradient of Seam 1 in 3

6 Grade of Seam (with 5 cm contamination ) E

7 U.H.V. (with 5 cm contamination) 3822

8 Seam thickness m 17

9 Net Mineable Reserves Mt 6.13

10 Average Stripping ratio Mm3/t 8.26

10.0 MINEABLE RESERVES

10.1 MINING LOSS :To arrive at the mineable reserves from the gross reserves available in the proposed extension quarry, following mining losses have been considered :-

i) 10% mining loss due to variation in seam thickness.

ii) Loss of 20 cm of coal at each contact point of coal seam thus aggregating 40 cm (two contact points at roof and floor) which corresponds to about 2.5% loss.

iii) 0.5% of coal loss for blasting for coal seam

iv) 0.5% loss due to spillage in coal transportation.

Considering the above mining losses, the net mineable reserves in Junad Extension OC mine are as under:

Quarry Gross Geological

Reserves (Mt) Mining

Losses (Mt) Mineable

Reserves (Mt)

Quarry as per Alternative IB, depth 170 m

7.086* 0.956 6.13


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10.2 TARGET OUTPUT AND MINE LIFE

The proposed Junad Extension OC mine has been planned for a target capacity of 0.60 Mt/annum. The parameters of opencast mine field and technical conditions of its development make this target feasible with normal indices namely strike length, width and depth of the excavated block, number of coal seams, method of mining, location of equipment, deployment, etc. The target production from extension quarry along with strike length and rate of deepening are tabulated below :

Sl. No.

Quarry Max. target Production

(Mt)

Depth Range (m)

Strike Length (Km)

Average Rate of

deepening (m/year)

1. Quarry as per Alternative IB, depth 170 m

0.60 88-170 1.5 - 1.70 8 – 9

From above it is clear that the maximum rate of deepening is about 8 – 9 m/year in proposed Junad Extension quarry.

10.3 SELECTION OF MINING METHOD In steep gradient, positioning of HEMM is difficult in inclined slicing method as the benches in coal are made parallel to the seam in this method. Hence this method is ruled out in proposed Junad Extension OC mine. In horizontal slicing, benches in coal are made horizontal and therefore there is no problem in positioning of HEMM. In horizontal slicing method, the sump can be made either on the bottom most horizontal bench in coal or in the roof of coal seam. With the sump at the roof of coal seam, the coal and overburden benches with proper grading can be worked in almost water-free condition throughout the year. However, with this arrangement, initial excavation is high because of the running slope of quarry is further reduced to this type of sump arrangement. It is therefore proposed in this report to make the sump at the horizontal bench in coal in one side of the quarry and to make the coal benches slightly grading towards the sump.

Thus, the shovel dumper system of mining with horizontal slicing method is recommended for the proposed extension project with sump at the bottom-most horizontal bench in coal seam.

11.0 WASTE DISPOSAL AND REHANDLING OF EXISTING OB DUMP Two external OB dumps are proposed in dip side of the extended quarry beyond the major boundary Fault F1-F1 at a depth ranging from 350-400 m at the floor of coal seam. The main external OB dump No.1 lies exactly in the dip side of extended quarry from Aheri village in north to approach road for the project in south. The dump No.1 is proposed keeping safe distance from Pragati Nagar township, existing water pipeline, Wardha river and approach road to the project. External OB dump No.2 is located on other side of approach road. In addition, about 10.33 Mm3 of OB already dumped by existing Junad OC in dip side of the quarry over coal bearing area where Junad Extension OCP is proposed also requires to be rehandled. The capacity of external OB dumps proposed is about 60.20 Mm3. Remaining 0.75 Mm3 of OB will be used is construction of safety embankment. The break up of OB quantities in external OB dumps is given in following table.


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No. Dump Capacity in Mm3

0-30m 0.60m Total

i) Dump – 1 25.70 16.92 42.65

ii) Dump – 2 5.80 2.17 17.55

Total 60.20

Entire OB of Extension quarry which is 50.62 Mm3 OB of existing Junad OC mine is dumped in dump No.1 and 2. About 10.33 Mm3 of OB to be rehandled will also be dumped in dump No.2 (9.58 Mm3 only) and also used for construction of embankment (0.75 Mm3). The external dumps have two benches each of 30m height and final angle of slope is proposed to be kept at maximum 28o. However, it is proposed in this report to involve scientific agency to conduct the study on slope stability and the final angle of slope as suggested by the above agency will be implemented.

12.0 Lead & Lift

For calculating the number of dumpers for coal and hiring rates for Top OB, following average cut wise lead and lift have been considered :

Sl. No.

Cut Lead for Top OB ( in Km)

Lift for Top OB (in m)

EXTENSION QUARRY

1. Cut-I 3.25 75

2. Cut-II 3.75 110

3. Cut-III 4.25 130

4. Balance Cut 4.75 170

Average lead for coal for Junad Extension OC comes out to be 3 km. The above leads have been calculated on the basis of the stage plan of mining operations.

13.0 MINING SCHEDULE & CALENDAR PROGRAMME OF EXCAVATION

Calendar plan is based on the Volume Regime and has been prepared on the basis of estimation of coal and overburden in box cut and various cuts drawn on different floor levels and volume of overburden in access trench of the Project. The peak stripping ratio is arrived by considering advance stripping in order to maintain the targeted production rate.

CALENDER PROGRAMME OF EXCAVATION OF OB/COAL

Year Coal (Mt) Natural OB(Mm3) Programmed OB(Mm3)

Annual Cumulative Annual Cumulative Annual Cumulative

1 0.60 0.60 8.13 8.13 8.15 8.15

2 0.60 1.20 7.40 15.53 7.40 7.40/15.55

3 0.60 1.80 5.26 20.79 5.26 5.26/20.81

4 0.60 2.40 5.26 26.05 5.25 5.25/26.06

5 0.60 3.00 5.26 31.31 5.25 5.25/31.31

6 0.60 3.60 4.68 35.99 4.70 4.70/36.01

7 0.60 4.20 4.94 40.43 4.50 4.50/40.51

8 0.60 4.80 4.43 44.86 4.40 4.40/44.91

9 0.60 5.40 4.43 49.29 4.40 4.40/49.31

10 0.60 6.00 0.94 50.23 1.10 1.10/50.41

11 0.13 6.13 0.39 50.62 0.21 0.21/50.62

TOTAL 6.13 50.62 50.62


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14.0 SCHEDULE OF WORKING :

Liftwise, leadwise, cutwise rates for hiring of equipment will also include drilling, dozing, excavation, loading, transport, water spraying, dumping and spreading of material (OB) at specified place as proposed in this project report.

The OB excavation would be done by total hiring/outsourcing of HEMM for the entire life of the mine. Considering the strata of overburden suitable equipment should be used. Scope of work by hiring/outsourcing of HEMM shall include blast hole drilling, Earth work excavation, loading, transportation, dozing, water spraying, dumping and leveling at dumping sites as per guidelines of the project authorities highlighted in this project report or otherwise to suit local conditions. All statutory rules, regulations and applicable laws are to be followed including those related to Govt. licenses, workmen compensation, insurance, etc. Excavated material 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 will have to be maintained with requisite gradient as per regulations and in accordance with conditions imposed by DGMS in its permission under regulation 98 (1) & (3) and other relevant provisions of Coal Mines Regulations, 1957. Coal evacuation is proposed by departmental equipments.In addition, Surface illumination, pumping and CHP facilities will be provided by the project and accordingly provision has been kept in OPM of App.A.3. Additional drilling may be required before awarding work on hiring basis.

The cutwise volumes adopted in the calendar programme is for bench height of 10 m taken in two slices of 5 m each and bench width of 20 m & 30 m for non-working and working benches respectively for planning purpose. However, the actual bench width and height would depend upon the size of equipment deployed by the outsourcing agency. DGMS permission under Regulation 98 (1) & 98(3) of CMR 1957 should also be obtained. It is very essential that sequence of mining and dumping of overburden be executed as prescribed in the Calendar Programme of Excavation and dumping plan respectively or else leads and lifts of hiring HEMM shall not be in accordance with adopted figures and expenditure for hiring HEMM shall not match with calculations in this report and subsequently the economic viability of the project will be off-set. Sufficient trained manpower has been provided to monitor the progress of work vis-à-vis the planned schedule in this report. Yearwise average rates of hiring for OB taken for planning and costing purpose is given below. 10% and 15% additional rates (difficulty factor) are taken for working in depth greater than 100 m and 150 m respectively.

YEARWISE RATES OF HIRING FOR OB

Year Coal (Mt) OB(Mm3) Rate(Rs./m3)(including service tax)

1(2008-09) 0.60 8.15 64.30

2 0.60 7.40 71.76

3 0.60 5.26 77.02

4 0.60 5.25 77.02

5 0.60 5.25 77.02

6 0.60 4.70 86.51

7 0.60 4.50 91.89

8 0.60 4.40 91.89

9 0.60 4.40 91.89

10 0.60 1.10 106.36

11 0.13 0.21 110.84


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Weighted Average Rate (Rs./m3)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 inclusive of Service tax.

15.0 HEMM Provision for Coal: In Partial hiring option, the Top Overburden is proposed to be excavated by

hiring/outsourcing of equipment and Coal by departmental Equipments. The main equipments are

Sl. No.

HEMM Specification Total Coal Common Reclamation

1. 2.8m3 Diesel Hyd. Shovel 1 1 - -

2 50 T RD Dumpers 3 3 - -

3 160mm dia. RBH Drill (Diesel) 1 1 - -

4 460 HP Wheel Dozer 1 1 - -

5 G12288 Crawler Dozer 1 - - 1

6 8 t Mobile Service Crane 1 - 1 -

7 0.9 m3 Diesel Hyd. Backhoe 1 - 1 -

8 8 kl Water Sprinkler 2 - 1 1

9 280 HP Motor Grader 1 - 1 -

10 Mobile Service Unit 1 - 1 -

11 Tyre Handler 1 - 1 -

16.0 PROVISION OF PUMPS, PIPES AND PIPE FITTINGS : (i) Six pumps of 80 lps x 150 m head have been proposed in this report. Out of six

one pump is standby. (ii) Two existing diesel pumps will be utilized as and when required. (iii) Three face pumps of 11 lps x 30 m head have been envisaged. Out of three

pumps one is standby. (iv) Two delivery ranges of 324 mm dia. have been proposed for main pumps and

maximum two working pumps shall be connected to each delivery range. (v) One delivery range of 219 mm dia. has been proposed for main pump and

maximum one working pump shall be connected to this delivery. (vii) 80 mm dia. G.I. pipe will be used for face pumps. No piping provision has been

made for standby pumps. 17.0 INFRASTRUCTURAL FACILITIES

The existing infrastructural facilities of Junad OC mine and additional requirement of infrastructures for the proposed Junad Extension OC mine are detailed below :-

17.1 Coal Handling Arrangement

A small coal handling plant is already in operation, installed at Pimpalgaon project for Junad OCP. The same CHP will cater to the needs of Junad Extension OC. The CHP has facilities for crushing of coal to (-)200 mm size .The crushed coal is being loaded in trucks by pay loader and transported to Wani Siding for rail despatch.The existing practice of CHP of Junad OCP is proposed to be continued for Junad Extension also. An additional capital provision of Rs.1.8575 Crores for Idlers,Belting and Civil structures is given in PR.


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17.2 Power Supply Presently Junad OC is fed through Pimpalgaon substation. Pimpalgaon substation receives power from Wani, MSEB, 66 KV/33 KV, 2X10 MVA substation at 33 KV. The estimated maximum demand of mine loads of Junad OC works out to 776 kVA. In addition to this, the estimated maximum demand of township load is works out to 121 kVA. Thus total maximum demand of Junad will be 897 kVA.

17.3 Magazine

To cater the need of explosives for 0.60 Mty target production ,existing combined magazine of the area will be utilized.

17.4 Service Buildings

The existing service buildings of Junad OC mine will be utilised in the proposed Junad Extension OC mine. In addition to this, keeping in view the needs and requirements of the project, statutory and essential service buildings such as, Pit Office Excavation Workshop, E&M Workshop, Unit Store, , Sub-Station, Canteen, Staff Rest House, Dispensary, Training Centre, Garage, etc. have been provided in this report.

17.5 Residential Building The existing 220 no. of quarter will be utilized in the proposed mine . 17.6 UNIT WORKSHOP

An independent full fledge unit excavation workshop is already functioning for the maintenance and repair of excavation equipment of the Project. When this Project will be expanded, the existing workshop will not fulfil the maintenance needs of the equipment. To meet the additional maintenance requirements the existing workshop will be expanded for accomodating the 50t dumpers and other excavation equipment. Capital repair of HEMM and other equipment would be carried out at central workshop, Tadali.A unit E&M workshop is already functioning at the project to carry out maintenance & repair of the CHP, equipment, pumps, light vehicles, electrical etc.

18.0 MANPOWER

The manpower requirement for Junad Extension OC mine has been calculated on the basis of 3 shift operation for 330 days in a year. The manpower requirement for this project has been detailed in Appendix-B & B1. The break-up of 220 manpower for the proposed Junad Extension OC mine is as follows :

Sl.No. Particulars ( On the basis of category ) Total

1 Officers/Executives 15

2 Monthly paid staff 64

3 Daily Rated Workers 141

Total 220

The OMS of the mine comes out to be 10.331 t for Partial hiring option. 19.0 SAFETY

The project report has been drawn in conformity with the prevailing statutory provisions as per Mines Act 1952, CMR 1957 applicable for safety in Opencast Mines. All the regulations & schedules of coal mines Regulations 1957 relating to opencast mining have to be adhered to and implemented in order to maintain day to day safety precautions as per statute.


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19.1 SAFETY ASPECTS FOR OUTSOURCING/HIRING OF HEMM In proposed Junad Extension OC mine, it is proposed to deploy hiring equipments for OB removal .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 VIII Safety Conference should be strictly followed.

19.2 MODEL TRAFFIC RULES FOR HEMM & LIGHT VEHICLES

Suitable traffic rules as per recommendations of VII Safety Conference may be framed by Manager and implemented to ensure safe operation of dumpers, light vehicles and other HEMM deployed in the project.

19.3 DUST SUPPRESSION

For suppression of dust water sprinkler has to be provided. Suppression of mine dust may be done by using suitable bond, for methodology of application DGMS Circular No.8 of 1997 may be referred.

19.4 PRECAUTIONS AGAINST SURFACE WATER

The major portion of the proposed Junad Extension OC located on the flood plain of Wardha river. HFL of Wardha river recorded at New Majri in 1979 was about 190.74 m and a larger part of the project area is below the HFL of Wardha river. In the existing Junad OC mine embankment has been made to protect the quarry from inundation. However, in the proposed Junad Extension OC, the existing dip side embankment will fall in the extended quarry and therefore fresh embankment will have to be made in the periphery of the dip side quarry surface limit with height of 6m above HFL.

19.5 SCIENTIFIC STUDIES Following areas have been identified in the proposed Junad Extension OC 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 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..However for planning purpose , powder factor of 3.0m3/kg for OB and 7.0t/kg for coal has been considered.

c) Hydrogeology Proper provision has been made in this report for scientific study to assess the hydrogeological parameters of the proposed area.

20.0 PRE-MINING LAND USE

The total land within the proposed mine boundary of Junad Extension OC is 461.28 ha (existing land of Junad OC mine +proposed land for Junad Extension OCP) whose break-up is given below :


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Sl.No. Particulars Land already acquired in

existing Junad OC Mine

Land to be acquired under

proposed Junad Extn. OC Mine

Total

1. Tenancy Land 174.28 ha 269.25 ha* 443.53

2. Govt. Land - 6.10 ha 6.10

3 Land for colony - NIL NIL

3. Forest Land NIL NIL NIL

TOTAL 174.28 275.35 ha 449.63 ha

*This 269.25 ha of land to be acquired includes 5.20 ha land of Kolar Pimpri Extn.Project and 13.85 ha of acquired land by existing Pimpalgaon OC Project. Both the projects are adjacent to Junad Extension OC Mine.

20.1 Land use pattern – Post Mining Stage At the end of the mine life, the post-mining land use pattern within the mine boundary would be as follows :-

a) Void - 101.70 b) External OB dump - 175.00 c) Infrastructure including approach road - 15.00 d) Embankment - 20.00 e) Colony - 0 f) Vacant unused land - 137.93 -------------------- Total - 449.63 -------------------- 21.0 MINE CLOSURE COSTS

In the proposed Junad Extension OC mine, the expenditure incurred on those mine closure activities, which are done during mine life, are met through the revenue of the mine. However many activities are done after completion of coal mining and therefore funds for meeting such expenses are estimated and provided in the Project Report. As per minutes of meeting held for discussion on DPR of Junad Extension OC in CMPDI(HQ), Ranchi, it was decided that Re.1/- per tonne should be provided for mine closure provision throughout the mine life as revenue expenditure which will be contributed as a corpus fund for mine closure. Therefore necessary provisions of Re.1/- per tonne has been made against the mine closure activities.This closure cost includes plantation cost, dozing cost, cost of monitoring & supervision, etc.

22.0 CAPITAL INVESTMENT The total initial capital requirement in Junad Extension OC mine works out to be Rs. 54.7840 Crores including the WDV of Rs. 16.0263 Crores of usable/absorbed items of existing Junad OC mine. Thus, the Additional capital requirement in this project is Rs.38.7577 Crores. The capital outlay per tonne of annual output (0.60 Mty) works out to be Rs. 913.07. The specific investment (Additional capital outlay) per m3 of average annual excavation works out to be Rs. 102.78/m3. The following Table shows the A/c headwise capital for the proposed Junad Extension OC Mine.


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(Rs.in ,000) A/c Head

Particulars WDV of Existing

Junad OC Mine as on

01.04.07

Additional Capital to be sanctioned

Total Capital

A.1 Land 27460 81113 108573

A.2 Buildings 41824 21825 63649

A.3 Plant & Machinery 9061 211175 220236

A.4 Furniture & Fittings 209 1000 1209

A.6 Vehicles 548 - 548

A.7 Prospecting & Boring 5829 1500 7329

A.8.1 Development expenditure 53215 70964 124179

A.9 Net Revenue Expenditure capitalized during development

22117 - 22117

TOTAL 160263 387577 547840

22.1 COMPLETION COST A project becomes eligible for completion when following conditions are fulfilled: A) Achievement of coal production capacity of 80% of the rated output. B) Completion of all major facilities and initial mine development work. C) Procurement of major and essential plant and machinery.

The completion cost of proposed Junad Extension OC is estimated as Rs. 5677.63 lakhs in Partial Hiring Option.

22.3 SENSITIVITY ANALYSIS

Sl. No. Variable/Parameters

IRR of the project for changes parameters by

0% 5% 10% 15% 20% 25%

1 Increase in capital investment

25.01 23.67 22.44 21.29 20.21 19.20

2 Increase in Wages cost 25.01 24.50 23.99 23.49 22.99 22.50

3 Increase in Store cost 25.01 23.68 22.38 21.12 19.87 18.66

4 Increase in Operating cost 25.01 17.06 10.10 3.97 (-)1.50 (-)6.41

5 Decrease in capacity utilisation

25.01 20.69 16.59 12.68 8.95 5.38

6 Decrease in sales realisation through grade slipage.

25.01 19.27 13.91 8.87 4.10 (-)0.43

0% 0.5% 1.0% 1.5% 2.0% 2.5%

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Impact of decrease in working capital interest rate from 15.50% 25.01 25.07 25.13 25.20 25.26 25.32

22.4 BASIC OF PRICE OF P&M, CIVIL WORKS & HIRING RATE The pricing of P&M is based on the standard price list of September 2006 (updated upto June,2007) circulated by the Specialist Cell of CMPDI (HQ), Ranchi. There is no requirement of foreign exchange for this project. The cost of civil works has been estimated on the basis of cost index of 258 at Maharashtra as on 1st half 2007.


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22.5 OPENING OF REVENUE ACCOUNT The existing Junad OC mine will get exhausted in 2007-08. It is proposed to continue the production in proposed Junad Extension OC mine from 2008-09 onwards .Since the existing Junad OC mine is a revenue mine and the proposed Junad Extension OC mine will continue the production from the beginning of extension OC (0.60 Mt), the mine will be in revenue since2008-2009. i) Beginning of financial year in which minimum of 25% of physical output is

achieved. ii) Surplus cash generation. iii) The year of completion of the project as envisaged in the Project Report. Thus, in case of Junad Extension OC mine, the project is in revenue A/c since YEAR-I as per the criteria (i) mentioned above.

22.6 EMS

The EMS of Rs 784.77 based on WCL Budget of 2006-07 of Wani North Area has been considered for this project .

22.7 COST OF PRODUCTION The cost of production works out to be Rs.1263.00/t and Rs. 1342.44/t at 100% and 85% capacity respectively

22.8 IRR

IRR of the project works out to be 25.01% and 12.68% at 100% and 85% production capacity respectively.

22.9 COST OF PRODUCTION AT 12% DISCOUNTING The cost of production at 12% discounting works out to be Rs. 1371.87/t and Rs. 1470.00/t at 100% and 85% capacity respectively.

23.0 CONCLUSION :

1. Report of Junad Extention OC has been prepared for a target of 0.60 Mty. This report was originally prepared with 3 options i.e. Departmental Option, Partial Hiring Option and Total Hiring Option in March,2005. No Option was giving 12% I.R.R. at 85% capacity.

2 In 2005, Junad Extension OC was offered to MAHAGENCO, for a negotiated

price which will yield the I.R.R. required as per Government guidelines. In the meeting held between WCL & MAHAGENCO on 12.5.2007, it was agreed for a price of Rs.1077/t as on March,2005 for Partial Hiring Option with an Escalation Formula agreed by both the parties.

3. In this Updated Project Report (June,2007)Partial Hiring Option is proposed in

which Coal evacuation would be catered by Departmental HEMM and OB removal would be catered by Hiring/Outsourcing of HEMM.

4. In this Updated Project Report (June,2007) of Junad Extn. OC with Partial Hiring

Option, the Selling Price to yield 12% IRR at 85% of target capacity is Rs 1470.00/t. However as per Escalation formula agreed by MAHAGENCO the selling price would be Rs 1477.02/t (June,2007)which gives 12.68 % IRR at 85% capacity.

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Documents

pr for junad extension oc job no. 4020866 ( updated june