2012. 2

Coal Industry DivisionMinistry of Knowledge Economy

2012. 2

Coal Industry DivisionMinistry of Knowledge Economy

● Beginning of Coal Industry (Start ~ 1930)

- The first development started from 1903 at Pyongyang mine

(production : 60,000 ton / year)

- Permitted 16 mine development right until 1925

● Renaissance of Coal Industry (1957 ~ 1986)

- Coal production increased by 6 times

(1.81 million 12.44 million ton between 1957 and 1966)

• Coal production self-sufficiency : 99%

• Portion of coal in domestic energy : 55%

-Coal production reached 24.26 million ton in 1986

(Due to the Oil Shock in 1973)

● Rationalization of Coal Industry (1987 ~ Present)

- Demand for anthracite decreased due to the life style changes

(Upgrade of Living Quality, Supply of Apartment)

- Government established 'Scrap-Down and Build-up‟ in 1989

• Closed uncompetitive mines

• Intensively supported certain mine which require long term development

* Number of mines : 347 mines (‘88) → 5 mines (’10) (△342 mines)

* Output : 24.29 million ton (‘88)/ year → 2.10 million ton (’10)/ year (△22.19 million ton)

* Worker : 62,259 persons (‘88) → 4,050 persons (’10) (△58,253 persons)

● Coal Demand

- Anthracite consumption : 10 million tons („11)

• 1.6 million ton Briquette,

• Others Power plant, Steel mills

- Bituminous consumption : 110 million tons (‟11)

• Used for iron manufacture(coking coal), power generation(steam coal), other

industries(cement industries, etc.)

● Coal Production and Imports

- Production : 2 million ton /year (Anthracite)

- Imports of Anthracite : 110 million tons

Imports of Bituminous : 8 million tons (100% Import)

* The main importing countries• Anthracite : Vietnam, China, Australia, Russia, etc.

• Bituminous : Australia, Indonesia, Canada, etc.

● Coal Imports of North-East Asia countries Korea : 110 million tons, Japan : 108 million tons, China : 105 million tons

● China consumes 3 billion tons (half of worldwide consumption) * Coal covers 68% of energy consumption, and 80% of power generation in China

- Cola imports of China will gradually increased by economic development

➜ The world's most popular areas for coal imports

(It takes about 2/3 of 700 million tons among the world trade coal in 2011)

● Annual coal consumption of India is also increasing

➜ can cause problems in coal supply in the entire region's of Asia

<Prospect for Bituminous Coal Imports>(Unit : million tons)

※ Resource : SSE, sxcoal, Macquarie Research

➜ It is necessary to stabilize the world's coal supply and demand

through the development of new coal mines

‘11 ‘12 ‘13 ‘14 ‘15 ‘16

China 103 112 112 118 135 145

India 92 111 123 132 148 155

Korea 116 126 136 147 159 172

➊ Overseas Expansion of Coal Industry

● Korean companies are currently promoting coal mine development in

Australia, Mongolia, and Indonesia, etc.

≪ Expansion Status ≫

Australia Moolarben, Bylong, Ownaview, Minerva, Cockatoo,. Etc.

Indonesia Pasir (Samtan, at the stage of production and sale)

Mongolia Nuurst khotgor

Vietnam Bao Dai

➊ Overseas Expansion of Coal Industry

● Through the high technology of Korean companies, Pursue technical

cooperation and mine development & management with foreign

countries

• Advanced developing technologies accumulated in domestic mine • Sustainable and eco –friendly mine development (mine hazards prevention technology of MIRECO)

➋ Training Program for Mine Engineers

● 2060 management program in overseas mines : : Transferring the high techniques of 60s to 20~30s

Experienced technician (60s) New technician (20~30s)

• Hire retired technicians who worked

in coal field

• Performing consulting in overseas

mine development and management

• Hire new employees

• Partners with 60s (learn skill and

management from 60s)

➋ Training Program for Mine Engineers

● Coal Academy : Preparing long term coal manpower system

ㅇ Training specialized human resources for coal development(exploration, excavation, analysis,

environment, etc.) / developing the equipment(including the coal-fired boiler) / clean coal techniques

- Training the workers from Mongolia, Vietnam, Indonesia, etc

- Modernization (coal mining robot) and localization of mining facility and equipment through the

technical cooperation with equipment manufacturing companies (mostly small businesses)

ㅇ Joint operation by government, local government (provision of facility), mining companies(provision

of instructor, facility, practice space), and college

- Self-procurement of operating cost in partial through utilizing retired employees from coal field,

Performing domestic and overseas drilling(boring), performing research project, manufacturing &

sales of development equipment, etc.

➌ Development of technology for eco-friendly coal utilization

● Clean Coal Production and Supply

- Clean Coal is eco-friendly energy with minimum emission of CO, H2, CH4

- “Semi-Anthracite”, manufactured by low-heat treatment of Bituminous

* Compared to bituminous or BC Oil, Clean coal generates less N2, SO2

-To promote Clean coal business, develop Clean coal-fired boiler simultaneously

● Promoting a Clean coal R&D through modifying bituminous coal

- Compared to the anthracite coal, bituminous coal is unsuitable for briquette

shaping.

- Briquettes made by bituminous-modification lessens environmental problems

➊ Korea's high technique Dissemination and Consulting for Coal

Mining (Korea Coal Corporation, KyungDong)

● Korea has world class-mining technique derived from domestic mine

development, and tries to perform consulting business which applies those

technique to overseas coal mines

Mining

TechnologyComparative Advantage

Geological

survey and

Exploration

● Technology for calculating minable amount through exploration and drilling

● It has the highest level of physical prospecting, numerical monitoring and

interpretation techniques

Mining

TechnologyComparative Advantage

Feasibility

Evaluation

● Technology which analyzes the geological features based on the ore body

assessment, bedrock engineering feature assessment

● Technology which can calculate total and minable reserves through 3

dimensional coal bed modeling and Pit optimization

Mining and

Mine Design

● Surface and underground mine designing technology utilizing professional

3D program of mine designing

● Highest level of operating-specialized human resource of mine

development solution, mineral processing technology, bedrock engineering

feature assessment

Mine

Operation

● Highest level of mining and operation ability based on the decades of

experience in mine development and coal mining operations

Mining

TechnologyComparative Advantage

Mine Hazards

Management

and Prevention

● Accumulated know-how considering Environmental factors (pollution

management) and socio-economic factors (regional development, support for

the coal industry)

● World class-mine hazards prevention technology

* ①Natural Purification Technology for Acid Mine Water ②Polluted Soil

Purification ③Mine Sediments Detoxifying Technology ④Optical Fiber Sensor

Monitoring ⑤Mine GIS Technology

Korean style

Briquette

Manufacture

● Briquette manufacturing and pollution reducing-combustion technologies

utilizing bituminous coal

* Compared to coal, briquette reduces the heating cost and lessens air

pollution(NO2, SO2) by 2∼4 times

➋ Dispatch of Outstanding People in Coal Field (Korea Coal

Corporation, Kyungdong)

● Dispatch the outstanding people who have an enough experiences in

domestic companies with 60 years coal technology

● Transfer Korea's mining technology and improve the operation efficiency of

coal mining

➌ Promoting the Cooperation business on Briquette Technology

(MIRECO, KyungDong)

● Mongolia uses Bituminous coal as the primary heating fuel, which causes

serious air pollution. Therefore, development of eco-friendly coal processing

products(briquette, modified coal, etc.) are required to reduce the pollution

-Compared to the anthracite, bituminous has higher caloric value but not

suitable to make briquette due to low ash contents. Also, it causes serious air

pollution

* By the requests of Mongolian government for air pollution reduction and efficient utilization of heating fuel, MIRCO is promoting to establish a local briquette factory in collaboration with the domestic private company

-Developing bituminous coal as eco-friendly energy fuel with low-cost

* Research was conducted by cooperation of government, MIRECO, and KyungDong

company

➍ Dissemination of Mine Reclamation Technology and Promotion

of Cooperative Business (MIRECO)

● Mine reclamation business aims to minimize the environmental damages and

restore and manage the environmental pollution

•Mine reclamation business seeks sustainable development of economy and environment at the same time

● Utilizing the specialized mine hazards management system and techniques

strategically, it is possible to build the cooperation system considering

environment in Mongolian mine development

* MIRECO's Specialized Technologies : ① Natural Purification Technology for Acid Mine Water ② Polluted Soil Purification ③Mine Sediments Detoxifying Technology ④ Optical Fiber Sensor Monitoring ⑤ Mine GIS Technology

➎ Clean Coal Dissemination (KyungDong)

● Supplying Clean coal and Clean coal-fired boiler simultaneously- Clean Coal-Fired Boiler : Maximizes combustion efficiency and minimizes

pollutant emission through the complete combustion using the Clean coal

● Supplying for civilian demands such as agricultural heating, industrial hot

water, private and district heating

● Supplying the Clean coal after developing its quality considering each

country's environment