12
Planning limestone Most of the two billion tonnes of lime- stone consumed annually is used either as the basic raw material in the manu- facture of cement or as flux input in the metallurgical industries. Of the total flux, 90% is used by the steel industry. The cement industry needs limestone in a finely pulverized form, whereas the steel industry uses it in lump form, with the lumps not less than 12 mm in size. The exploitation of limestone as flux for the steel industry must be scientifically planned. This article covers the metho- dology of planning, incorporating the study of the detailed status of the resource inventory, demand for limes- tone, exploration of new deposits, and calculating and manipulating the costs of production, transport and develop- ment of each project to match the demand pattern of steel plants. A com- puter was used for the optimization of supplies and their selection on plan- ning horizons. Keywords: Limestone; Steel industry; India Dr Murari is Chief Manager, Cement Cor- poration of India Ltd, 59 Nehru Place, New Delhi 110019, India. resources for the Indian steel industry Krishna Murari The Indian Bureau of Mines prepared an inventory of limestone in India in 1974. This has been updated by the incoming results of detailed investigations carried out by several agencies up until 1980. The inventory lists more than 800 limestone deposits and gives the position of reserves, quality and ownership. Table 1 summarizes the inventory. According to past experience gained from the mining and exploitation of limestone deposits for the cement and steel industries, the available reserves are calculated by multiplying the measured, indicated and inferred reserves by factors of 0.8, 0.6 and 0.5 respectively (see Table 2). The grades of these available reserves are given in Table 3, the distribution of cement grades is given in Table 4 and the relative distribution of limestone grades is reported in Table 5. About 86% of the total amount of limestone in the country is classified as cement grade, indicating that all the exploration work in the past was carried out for the cement industry and the discovered deposits were reported as such. Many cement mines are mining SMS or chemical grade limestone which they dilute to manufacture cement. Application of limestone in the steel industry In 1972 a steel plan was prepared by the Planning Ministry of the Government of India to project the country’s steel requirements up to 2000 AD. In the plan 12 steel plants were identified, for which the requirements for flux grade limestone were projected (see Table 6). Now that the Indian steel industry comes under one authority, it has become easier to examine the totality of the national resource of limestone and plan accordingly. With planning of exploitation, the integral planning of infrastructure and manpower can be taken up. Limestone reserves and geological features Many of the deposits reported so far lie untouched due to the absence of an effective infrastructure. However, some of the deposits are presently being explored and others are being commercially exploited. The 52 0301-4207/84/010052-12$03.00 0 1984 Butterworth & Co (Publishers) Ltd

Planning limestone resources for the Indian steel industry

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Planning limestone

Most of the two billion tonnes of lime- stone consumed annually is used either as the basic raw material in the manu- facture of cement or as flux input in the metallurgical industries. Of the total flux, 90% is used by the steel industry. The cement industry needs limestone in a finely pulverized form, whereas the steel industry uses it in lump form, with the lumps not less than 12 mm in size. The exploitation of limestone as flux for the steel industry must be scientifically planned. This article covers the metho- dology of planning, incorporating the study of the detailed status of the resource inventory, demand for limes- tone, exploration of new deposits, and calculating and manipulating the costs of production, transport and develop- ment of each project to match the demand pattern of steel plants. A com- puter was used for the optimization of supplies and their selection on plan- ning horizons.

Keywords: Limestone; Steel industry; India

Dr Murari is Chief Manager, Cement Cor- poration of India Ltd, 59 Nehru Place, New Delhi 110019, India.

resources for the Indian steel industry

Krishna Murari

The Indian Bureau of Mines prepared an inventory of limestone in India in 1974. This has been updated by the incoming results of detailed investigations carried out by several agencies up until 1980. The inventory lists more than 800 limestone deposits and gives the position of reserves, quality and ownership. Table 1 summarizes the inventory.

According to past experience gained from the mining and exploitation of limestone deposits for the cement and steel industries, the available reserves are calculated by multiplying the measured, indicated and inferred reserves by factors of 0.8, 0.6 and 0.5 respectively (see Table 2).

The grades of these available reserves are given in Table 3, the distribution of cement grades is given in Table 4 and the relative distribution of limestone grades is reported in Table 5. About 86% of the total amount of limestone in the country is classified as cement grade, indicating that all the exploration work in the past was carried out for the cement industry and the discovered deposits were reported as such. Many cement mines are mining SMS or chemical grade limestone which they dilute to manufacture cement.

Application of limestone in the steel industry

In 1972 a steel plan was prepared by the Planning Ministry of the Government of India to project the country’s steel requirements up to 2000 AD. In the plan 12 steel plants were identified, for which the requirements for flux grade limestone were projected (see Table 6).

Now that the Indian steel industry comes under one authority, it has become easier to examine the totality of the national resource of limestone and plan accordingly. With planning of exploitation, the integral planning of infrastructure and manpower can be taken up.

Limestone reserves and geological features

Many of the deposits reported so far lie untouched due to the absence of an effective infrastructure. However, some of the deposits are presently being explored and others are being commercially exploited. The

52 0301-4207/84/010052-12$03.00 0 1984 Butterworth & Co (Publishers) Ltd

Page 2: Planning limestone resources for the Indian steel industry

Planning limestone resources for the Indian steel industry

Table 1. Inventory of limestone in India (million tonnes).

Ownership Reserves Measured Indicated

Free 2554.65 493.12 21.70 40.48

799.90 1321.56 63.48 65.10

7.40 0.56 26.19 - 17.32 15.27

- -

- 0.13 180.70 234.16

6.00 124.00 53.77 79.71 - 29.50 1.30

- -

Total 3840.23 2295.68

Private 746.34 469.93 479.11 3.10

0.72 - 12.85

- 6.02 - 0.76

2.57 - - -

Total 1241.59 479.81

Public 1020.62 36.05 - 3.83

8.70 - 292.28 30.00

23.15 - 59.58 61.33

0.40 - Total 1404.65 131.21

Inferred Total

652.84 2740.55

42347.24 984.03

1860.00 733.45 169.28 52.35

269.53 107.43 169.60

1018.90 354.28

-

130.21 51589.69

3700.52 2802.73

44468.70 1112.61 1867.96 759.64 201.67

52.35 269.66 522.29 299.60

1072.67 433.99

30.80 130.21

57725.60

1003.92 2220.19 43.08 525.29 38.57 39.39

327.97 340.82 4.35 10.37

150.51 151.27 0.90 3.47 7.65 7.65

1576.95 3298.35

527.98 1584.65 - 3.83 - 8.70 - 322.28

10.05 33.20 - 120.83

57.15 57.55 395.18 2131.04

Grade

Blast furnace (BF) BF, Cement (C) C Unclassified C Chemical (Ch) BF, SMS Low BF Ch Dolomitic (Do) SMS Ch Low Siliceous and ferruginous (Si and Fe) SMS, C Mixed

C BF BF C Ch SMS BF Ch Low Unclassified

C C Ch Do

KS BF C Ch

Note: SMS = Steel melting shop grade. Grand total 6486.47 2907.70 53761.82 63154.99

Table 2. Available reaerves of limestone (million tonnes).

Measured 6486.46 x 0.8 = 5189.17 available Indicated 2906.70 x 0.6 = 1744.02 available Inferred 53761.82 x 0.5 = 26880.91 available

Total 63154.98 33814.10 available

Geological Survey of India reports the reserves, based on regional mapping. The reserves can be established by detailed geological exploration through drilling, pitting and collection of a large number of samples to determine the quality. In one case, SMS grade reserves were reported at 66 million tonnes, but were subsequently revised to 10 million tonnes after detailed drilling, pitting and sampling. The reserves declared by regional mapping inspire a very low level of confidence.

The regional geological mapping ignores the collection of data pertaining to overburden, hydrology, climate and manpower availabil- ity. These handicaps make the choice of potential areas difficult.

Exploration Table 3. Grades of available limestone re- aerves (million tonnes). Detailed limestone exploration must precede the planning of commer-

BF grade 2g36,17 cial exploitation and ore body modelling and statistical analysis must be

SMS grade 299.82 increasingly adopted in geological exploration. Available data are Cement grade 27482.62 Others

superimposed on the detailed survey map and the drilling scheme is

Total ,3i3z::i prepared. Regression analysis must be carried out periodically to

improve the level of confidence, with minimum expenditure in the field.

RESOURCES POLICY March 1984

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Planning limestone resources for the Indian steel industry

Table 5. Relative distribution of limestone grades (36).

SF grade 9.17 SMS grade 0.94 Cement grade 85.85 Others 4.04

Total 100.00

54 RESOURCES POLICY March 1984

Table 4. Distribution of cement grades of limestone (million tonnes).

Ownership

Free Private Public

Total

Reserves Measured

399.90 734.11

1020.62

2554.63 X0.8

2043.70

Indicated Inferred

1321.56 42347.24 385.01 786.18

36.05 131.98

1742.62 43267.30 x0.6 x0.5

+ 1080.42 + 21633.69

Total

44468.70 1907.28 1188.65

47564.63

= 24757.01

Drilling pressure and the corresponding rate of penetration can provide data on the physical properties of the rock. The core is subjected to tests for rock mechanical properties; the loss of core generally indicates the presence of cavities. The core should be photographed to keep a permanent record of the rocks passed through. The determination of the mechanical properties of the I;mestone will help in the choice of crushers and estimation of the size i?f recovery after crushing.

The cost of drilling depends upon the intensity of drilling required and the morphology of the area. To provide sufficient limestone for steel production of one million tonnes/year the cost of exploration would range between 1.5 and 2.0 million rupees. For a total production of 20 million tonnes of steel, the limestone exploration costs would be about 30 million rupees.

Detailed geological exploration should consist of the following: mapping on a scale of l:lOOO, a sufficient number of drill holes and pits, adits if they are required by the geomorphology, collection and analysis of samples, assembly of data and estimation of reserves with a high level of confidence. In addition, data regarding climate, data on overburden, manpower availability and hydrology should be incorporated in the exploration report.

Mining methods and constraints

The overburden has a direct bearing on mining technology, the cost of mining and the preparation of any mineral, although exploration generally ignores the overburden as if it were irrelevant. The nature of the limestone required by the steel industry necessitates determination of its lump recovery factor. The design of the blasting pattern and the preparation plant for limestone used in metallurgical applications depends on the results of tests, carried out both in the field and in the laboratory, to determine the lump recovery and crushability of large boulders. The amount of limestone of a specified size available after crushing and screening, as a percentage of total output, indicates the overall recovery efficiency of the mine.

The lump recovery must be maximized to derive the total benefit from the available resource. Poor lump recovery may result from the following:

Table 6. Requirements of Indian steel plants for flux grade limestone (milliOn tonne-ear).

Grade 1964 1969 1994 29w

SF 6.42 7.03 14.02 17.02

SMS 2.61 4.20 0.27 11.09

Total 9.03 12.03 22.29 28.91

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Planning limestone resources for the Indian steel industry

Excessive charge of explosives. Wrong choice of crushing equipment. Excessive height of fall at conveyor transfer points. High falls during stockpiling and wagon loading. Use of bulldozers on stockpiles and in heaping. Frequent choking of crusher chamber. Too many transfer points. Frequent rehandling of the product.

The preinvestment decision on a mining project, following detailed geological investigation, is taken after considering the following factors:

0 Cost of infrastructure to support the mining project. 0 Distance and feasibility of transport to the nearest railway. 0 Location. 0 Technical feasibility of the mining project. 0 The quality and recovery factor of mine output. 0 Overall economic viability of the project.

The mining of limestone involves a long-range systematic programme of extraction: (a) selecting the best part of the deposit for exploitation; (b) deciding on mining techniques, such as height of benches, and blasting pattern; (c) determining the number and length of faces in overburden and limestone; (d) selecting a site for waste disposal; and (e) selecting sites for crushing, screening and wagon loading plants.

Mechanical stripping becomes difficult where the rock overburden is irregular and interrupted by large joints and cavities. These cavities are generally filled with clay or siliceous material. Mechanically, the mine’s ROM (run-of-mine) becomes diluted due to such interruptions and a decision may have to be taken whether to employ manual mining or wet screening.

Hydraulic mining is particularly effective in washing out the clay filled cavities in the limestone bed. About 10 m3 of water are usually required to wash one tonne of clay from such pockets in situ. The slurry may be collected and allowed to settle to recover the water.

Savings made on the transportation of overburden result in the accumulation of waste material near to the quarry. When the working areas are extended, the waste material has to be removed. Occasionally waste flows back into the quarry with the rain, showing that the dumping of waste needs to be meticulously planned.

Preparation of limestone

The requirement of steel plants is for lumps of limestone at least 25 mm in size. From these lumps the clay and waste rock must be completely eliminated. Extensive tests on limestone ROM are conducted by dry screening and analysis of screened fractions. If the dry screening is successful, it is adopted for designing the preparation plant. If not, the wet process is tried, although this is more expensive.

Steel plants

The locations of present and future steel plants are shown in Figure 1. By 2000 AD there will be 12 steel plants, although at present there are only seven: Bokaro (BSL), Bhilai (BSP), Rourkela (RSP), Tata (TIS), Indian Iron (IIS), Durgapur (DSP) and Visvesaraya (VIS). In the

RESOURCES POLICY March 1984 55

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Planning limestone resources for the Indian steel industry

/ _-r--;

i ‘\ 7

y/r--. ./ JAMMU 8 KASHMIR

?

\ 0 Srinogor i 0 ./

Figure 1. Map of India showing railways, steel plants and limestone deposits.

Key: 0 Ports A Steel plants . SMS deposits q BF deposits

56

aftermath of the crisis in Iran in 1980 a steel plant in Mangalore has become a distinct possibility. The development planning of the limestone mining projects must satisfy the demand of the steel plants that will exist by 2000 AD. The selection of the limestone mining projects should be made to ensure that an infrastructure is developed and ancilliary facilities are provided in time. The gestation period for the development of a mining project starts soon after the results of the

RESOURCES POLICY March 1984

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Planning limestone resources for the Indian steel industry

Table 7. Specification of limestone used in steel plants.

Plant

TIS RSP DSP TIS RSP IIS RSP

Usage Size (mm)

BF +25 -75 BF +50 -125 ZS +50 +50 -125 -125

Sinter -12 i25 -75 +55 -80

Acid insoluble8 (% max)

IO 12 12 6

14 7 5

SiOp AW, Fe0 NO LOI (% max) (96 max) (% max) (% max) (% min)

7.88 2.08 1.12 4.23 38.63 8.62 2.49 1.13 4.95 38.32 8.62 2.49 1.13 4.95 38.32 3.86 1.25 0.85 3.47 41.30 9.34 2.86 1.15 4.30 36.40 5.06 1.40 0.92 19.31 43.28 4.94 1.50 0.65 19.37 42.80

Table 8. Investment in mine development (million rupees).

1984 1989

BF mines 969 1143 SMS mines 270 la5

1994 zoo0

1921 2411 426 282

detailed geological exploration are obtained and lasts for between 3 and 5 years, depending upon the capacity of the project. The time taken for the detailed geological investigation is between 2 and 4 years.

The specification of limestone used in steel plants is outlined in Table 7. The amount of magnesium in the flux depends on the utilization of slag: if the slag is to be consumed by the cement industry the magnesia should not exceed 3%; if the slag is sold to the construction industry 7-15% MgC03 in the flux is preferred. Impurities in limestone affect the fluxing efficiency. Two percent silica in raw limestone becomes 4% after calcining, since 44% of limestone by weight is removed as carbon dioxide. This 4% silica will react with its own weight of calcium oxide, rendering about 8% of the stone unreactive. Thus the volume of slag produced increases in direct proportion to the impurities in limestone.

Present linkages between the limestone and steel industries.

The pattern of limestone consumption in the steel plants shows that each plant has a particular source of supply. Each source is captive, and at times when the captive sources are not enough the steel plants buy the limestone from private mine operators. The structuring of the modern steel industry in India requires assured sources of limestone of the right quality. Due to the scarcity of metallurgical grade limestone in the vicinity of various steel plants, distant sources are now being explored and tested for use in the steel industry, although the exploitation of such sources will involve long-haul rail transportation. The choice of sources is generally based on a combination of opportunity and availability.

Quality control in the field

The physical characteristics of limestone, such as compactness, hard- ness, colour and grain structure, can be determined in the field by the naked eye or using simple methods. However, correlation of these visible and chemical properties is required. Sometimes the colour will give a direct indication of the chemical property of the limestone, but such identification will only be applicable to one area or part of a deposit. These visual properties must be continually updated as mining progresses.

Current practice of supplying steel plants

Existing limestone mines will not be able to meet the future require-

RESOURCES POLICY March 1984 57

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Planning limestone resources for the Indian steel industry

ments of the expanding steel industry. If the identification and planning of new resources is neglected, the faster expanding cement industry will capture most of the suitable deposits ahead of any action envisaged by the steel industry.

If a steel plant receives its supplies of limestone, of varying quality, from more than one mine, there is no provision for blending. Such blending and quality control facilities must be provided and mine reorganization is required to meet these requirements. Another important parameter is the lump recovery. The mines presently operating depend to a large extent on the manual sizing and breaking up of lumps to reject the fines. In some deposits high and low grade layers of limestone alternate. Where the thickness of such layers is more than a metre, quality control does not present a problem, but where the layers are less than a metre thick, mechanized mining is unable to sort out the low grade material. Unless sufficient manual labour is engaged in sorting under adequate supervision, quality control will present a problem.

The proposed method and its advantages

The problems faced by the steel industry have prompted the develop- ment of a method which would take into account the total limestone inventory and the demand for limestone by 2000 AD. By then, the 12 steel plants will be producing nearly 75 million tonnes of steel per annum. The demand for limestone will be best satisfied by identification of the most economic total supply system, serving all the plants. Four planning time-horizons have been considered concerning the develop- ment of supply points. These are, working backwards from 2000, 1994, 1989 and 1984. These planning horizons match with the steel plan.

The capacity of each limestone mine is calculated on the basis of a minimum life of 25 years. Deposits with reserves of less than 5 million tonnes have been ignored. Infrastructure requirements are projected to match the mining capacity of the mine and the point in time at which it will begin to supply the steel plant. Large-scale planning at this stage will assist in the standardization of mining, processing and servicing equipment, as well as in planning of central workshops and training centres for a group of mines.

Timely estimation of the equipment requirements would encourage indigenous manufacture of equipment and utilization of existing capabilities. Land should be acquired for buildings, approaches, railway sidings, townships, waste dumps and other structures on a long time projection so that the local people do not buy up land in strategic areas to inflate prices.

Financial planning can be carried out well in advance, linking the benefits derived by the steel plants on the one hand with those of the local society on the other. A knowledge of the long-term personnel requirements will be helpful in the training and recruitment of graduates from institutes and colleges. The advance planning can be used for management of the environment and the ecology of the affected areas, in conjunction with other sectoral industries such as agriculture, forestry and urban development.

The total utility system approach to the waste and rejected material obtained from the mines will result in the setting up of clinkerization and chemical plants to produce lime and precipitated chalk. Preventive measures against air and water pollution can be planned optimally in

RESOURCES POLICY March 1984

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Planning limestone resources for the Indian steel industry

advance for various projects, groups of mines or industrial complexes. The treatment of effluents and sewerage can be planned on a larger, more economic scale.

Services for the population centres, such as health care, schools, banks and communications, can be planned on a long-term and effective basis.

Treatment of resource data

Available data on more than 800 deposits were treated. The choice of deposits was restricted to those of metallurgical grade, with more than 5 million tonnes of available reserves. Those chosen were classed into BF and SMS grade deposits. In a few deposits both grades were available. The production capacity of each deposit was calculated by dividing the available reserve by 25 years, keeping the upper limit of production at 3 million tonnes/year, ie the presently manageable capacity. Each deposit was then made into a project by working out the exploration, mining and transport layout and estimating the investment required and the cost of production. The project profiles included the mode of transport to the nearest railhead, by road, aerial ropeway or conveyor. The cost of mining was incorporated in the cost of railway wagons, to which the cost of rail freight over the shortest route was added. The matrix was prepared on the basis of the total landed cost of limestone per tonne to different steel plants.

Exploitation planning

Large-scale exploitation of the deposits calls for mechanized mining. The stripping ratio must be kept low, since limestone is a low cost commodity. Generally, the stripping ratio is kept at 0.3. Exploitation planning involves three aspects: technological, technoeconomic and infrastructural. The technological aspects must be considered in relation to the following constraints:

0 stipulated product specifications; 0 choice of deposit; 0 choice of technology in relation to the size of operations; l inputs to the project; 0 methods of exploitation and quality control; 0 technical feasibility.

All efforts must be made to reduce the cost of mining, while maintaining the quality at the desired level. The opencast mining method is cheap and, so far, it is the universal system of mining limestone. Lump recovery is an important parameter to be maintained at a high value. BF grade limestone has a lump recovery of around 60%) while that of SMS is about 40%. The choice of crusher must aim at high lump production. The mine blasting pattern should also aim to use light charges, so as to yield more lumps than fines in the ROM. If blasting can be eliminated, this is desirable. A grizzly before the crusher might help in the removal of fine clay adhering to the limestone in the dry season. In rains wet screening might be required.

Environment

The Department of Environment of the Government of India prohibits

RESOURCES POLICY March 1984 59

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Planning limestone resources for the Indian steel industry

removal of trees, unless substitutes are adequately planned. Excava- tions must be filled by the mining company at the end of mining operations. In cases where infilling is impossible, the pits must be used for other purposes; for example, they might be filled with water and stocked with fish. The discharge of tailings into streams has been totally prohibited and the mine project must either build a tailings dam or filter the slimes and recover clear water. Mining law requires the maintenance of a dust free atmosphere in the mines and the preparation plants. Protection of individual workmen through the use of respirators is fast becoming obsolete. In their place dust collecting systems and suppres- sion methods are being adopted.

Application of geostatistics

The quality distribution in three dimensions should be determined by treating the raw data obtained from geological exploration. The projected quality profile in the unknown area must be verified by a borehole, so that the level of confidence can be increased, if necessary by modification of the mathematical algorithm. Orebody modelling and scheduling of excavation are prime requirements for quality assurance in a mining project. Drill cuttings from blast holes are also analysed and their quality projected on the geostatistical map. Such verification of quality projections, provided daily during mining, keeps the statisticians up-to-date, with timely opportunity for rescheduling the excavation programme.

Utilization of overburden material

The overburden in the limestone mines consists of soil, laterite and rock. Generally the soil is on the surface, intermixed with laterite. This is removed first and used later in restoring the ground for agriculture. It may also be used by a nearby cement factory as an additive to the raw meal. Rock is used in the construction of roads and buildings, in soling, metalling and as chips in concrete aggregate. Where rock is naturally available in slab form, it can be used directly for construction.

The rock overburden can also be sold to the Public Works Department for construction purposes, and for pitching of water courses and slopes of clayey stockpiles.

Waste dumps

The height of a dump is governed by the capability of the dumping equipment. Once the height of the projected waste dump is known, the area required for the total volume is calculated and acquired. It should be located at a sufficient distance from the ultimate mine limits to avoid rehandling.

Utilization of byproducts

While the waste rock is used for construction, reducing the area required for dumping, the limestone fines must also be extracted for the manufacture of either cement or clinker at the mine site itself. Thus the total project economics improve considerably and the mining of deposits situated in remote areas might also become a feasible proposition.

RESOURCES POLICY March 1984

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Planning limestone resources for the Indian steel induwy

Purchase policy and pricing of limestone

Each steel plant has its own policy for choosing and buying sources of limestone for its blastfurnaces and steel melting shops. Three alterna- tives exist:

0 Acquiring limestone deposits and developing them into full-scale departmental mining projects.

0 Acquiring limestone deposits, but appointing mining contractors on limited time spans to develop and raise the mineral.

0 Buying limestone, where it is available, from other mines.

Of the three, the first alternative requires the maximum investment, but full control is held over supplies and quality. In the second case, the investment is small but dependence upon the contractor for supplies and quality is too great and supplies may fail, posing serious problems. In the third case, steel plants must build up adequate stockpiles to tide them over any uncertainties in the market. Such stockpiles must have an arrangement for blending various grades.

The open market price for limestone in 1979-80 was Rs %/tonne for BF grade and Rs 70/tonne for SMS grade. The private mine owners sold their product to more than one buyer and fully utilized the products of their mines. These prices were on the basis of material loaded into railway wagons at the nearest point to the mine. It is, however, difficult to enter into a long-term supply agreement with any mine operator. As demand picks up, the market price shoots up and the steel plant runs into problems. For this reason most steel plants prefer to have their own captive mines.

The planning of the limestone supplies to the future steel industry has therefore been effected on the assumption that all steel plants will own their resources and obtain supplies on the optimized system of distribution, keeping aggregate costs to a minimum.

Codification of supply and consuming centres

The supply of limestone to future steel plants will be made from a number of mines which are either working at present or will be developed in future. For BF grade 64 mines have been identified and for SMS grade 33. There will be 12 steel plants by 2000 AD. Thus 64 BF grade mines will be developed to supply these 12 steel plants at an optimum rate, and, similarly, 33 SMS grade mines will supply to the same plants. The treatment of planning parameters through mathema- tical modelling and EDP is given in the Appendix.

Cost analysis

A mining project may be divided under 12 functional headings for costing purposes:

(1) (2) (3) (4) (5)

;;;

(8)

Exploration. Surveying. Overburden stripping. Drilling. Blasting. Transport. Preparation. Workshop and stores.

RESOURCES POLICY March 1984 61

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Planning limestone resources for the Indian steel industry

(9) Drainage. (10) Grade control and sampling. (11) Management. (12) Welfare and township.

For each of these areas investment and cost of production is calculated. The production capacity for the possible deposits ranged from 1500 to 7000 tonnes/day. The cost of production has two components: fixed and variable costs. The variable cost consists of operation, maintenance and supervision; the fixed component is formed of depreciation and interest. For each deposit, the total costs are calculated, keeping in mind the variance in the method of mining, thickness of overburden and the dip of the deposit. Mechanized mining operations in India are costlier on account of fixed costs.

The cost calculations have been used to determine the total landed cost of limestone from the mines to the steel plants. The landed cost CT is computed as:

CT = c, + c,i + c,

where C, = cost of mining; Cd = cost of transport from the mine to the railhead; and C, = cost of transport over the railway system to the steel plant.

The choice of supply sources for the steel plants must satisfy the requirements of each steel plant, be in accordance with the capacity of the mines and minimize the aggregate landed cost. This optimization study has been carried out through the use of linear programming. The model was solved by a computer programme at the Regional Computer Centre, Calcutta.

Results

The optimization model has selected 21 mines for BF grade supply and 31 mines for SMS grade supply. Of the BF grade mines identified, 6 are working at present. Similarly three SMS grade mines are in operation.

The total manpower for BF grade mines up to 2000 will be 18 600 and it will be 28 000 for SMS grade mines. More manpower is required for the SMS grade mines due to the need for sorting and grade control. The investment needed to develop the mines in the four time horizons is shown in Table 8.

Nearly 17 500 men will be engaged in the construction and develop- ment of these mines between now and 2000 AD, exclusive of operation and management of the mines. Construction workers will gradually be laid off unless they are absorbed in the operation of the mines, and it is unlikely to be possible to provide employment for all of them by the year 2000. It is more likely that the mines will only be able to provide employment for about 10% of the construction work force.

Conclusions

The steel industry’s total annual requirements for limestone will increase from 9.03 million tonnes in 1984 to 28.91 million tonnes by the year 2000. Advance plans must be made to meet quality and quantity requirements. The development of resources must be optimized, and from the very beginning land containing limestone and adjoining areas should be acquired after proper demarcation, to avoid later confusion.

RESOURCES POLICY March 1984

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Planning limestone resources for the Indian steel industry

Certain bottlenecks on the railway network must be cleared to cope with the additional limestone traffic. Some narrow- and metre-gauge lines will need conversion to broad-gauge and in other places additional

tracks must be layed. The establishment of a uniform gauge will also eliminate transhipment points and reduce delays in the turn round time of wagons.

Rock overburden produced should be utilized in construction to reduce pressure on the ground space. The high grade limestone fines should be used in the production of cement, resulting in further economies.

The new mines will provide employment for nearly 47 000 people, many of whom will live in remote areas. Thus the development of limestone mining projects will expose a sizeable number of the population to better living conditions, schooling and health care.

Bibliography 1 Geological Survey of India, Limestone, Memoir on Minerals, Geological

Survey of India, Calcutta, 1966. 2 Indian Railway Conference Association, Goods Tariff, Parts I and II,

Indian Railway Conference Association, New Delhi, 1976. 3 Planning Commission, Government of India, Steel Plan, 1972, modified by

the Planning Commission, Government of India, New Delhi, 1976. 4 Indian Bureau of Mines, Inventory of Limestone, Indian Bureau of Mines,

Nagpur , 1975.

Appendix Planning parameters for BF grade mines

(1) Total planning period - 1984-2000 AD. Four horizons: (1) 1984-1989

(2) 1989-1994 (3) 1994-2000 (4) 2000-2005

(8) Model:

64 12 4 Minimizes z = ~ ~ - c,, xi;,

m q=i m

t=

(2)

j=

(3) i=

(4)

1, 2, 3 and 4. Number of BF grade deposits technically feasible = 64.

Subject tc 1 64 v< 4

1,2, 3,4, . . . . . . .,64. *jr =z - Qit

I Number of steel plant consuming centres = 12

V-E-l v t=1

1, 2, 3, 4, . . . .) 12. Quantity of ore mined and supplied from deposit j to for each t = 1,2, 3 and 4. . . . . I .~ __

steel plant i m the ‘t’ th honzon (ophmal) = Xijr 12 4 (5) Total landed cost of limestone from the ‘j’ th deposit to x,,< ~ Di,

the ‘i’ th steel plant in the ‘t’ th horizon = Cij,. T VYZ

(6) Maximum production capacity of the ‘j’ th deposit = Qj. (7) Demand of the ‘i’ th steel plant in the ‘t’ th horizon

for each t = I 2 3 and 4 > 9

= Dip SMS grade mines were planned in a similar fashion.

RESOURCES POLICY March 1984 63