COAL INDIA LIMITED EXPLORATION, PLANNING AND PRODUCTION - S. Saran, CMD, CMPDI

ENERGY SCENARIO - AN OVERVIEW In the energy scenario world over there is an overall trend to shift away from fossil fuels Share of renewable energy is expected to grow at a fast pace India is also shifting its focus away from fossil fuels based power generation towards solar and other renewables Share of coal is 55 % in the commercial energy supply in India, but is likely to reduce to 48 % or even less by 2040. In India, growth of renewables is limited by the capacity-potentials and storage constraints

Coal-based Power Generation (GW) COAL DEMAND SCENARIO   2012 2022 2040 BAU Ambitious BAU  COAL (Mt) 582 904 1006 1190 1385 Coal-based Power Generation (GW) 125 266 251 441 330 Source: Draft National Energy Policy of NITI Aayog, version 27.06.2017 3

COAL DEMAND SCENARIO In a draft study done recently by KPMG, the following three demand scenarios have been considered: Scenario-1: Base case demand scenario [Overall coal demand estimated to be around 964 Mt by FY 2020 at a CAGR of 4% from current level, and to reach to around 1.46 Bt by FY 2030 at a CAGR of 4.2% from FY 2020] Scenario-2: High energy efficiency and high renewable [Overall coal demand estimated to be around 923 Mt by FY 2020 at a CAGR of 2.5% from current level, and to reach to around 1.3 Bt by FY 2030 at a CAGR of 3.5% from FY 2020] Scenario-3: High demand scenario [Overall coal demand estimated to be around 1.0 Bt by FY 2020 at a CAGR of 5.8% from current level, and to reach to around 1.9 Bt by FY 2030 at a CAGR of 6.5% from FY 2020] Source: Draft Report on “Coal Vision 2030”, Sept. 2017 by M/s KPMG 4

Status of Coal Exploration in India Coal basins in India There are 63 major coal basins (45 in Gondwana Formation and 18 in Tertiary Formation) as per National Coal Inventory by GSI. Major Gondwana basins are spread in Jharkhand, Odisha, Chhattisgarh, W. Bengal, Maharashtra, Madhya Pradesh & Telangana states. Tertiary coal deposits are found in the North Eastern States of Assam, Meghalaya, Arunachal Pradesh and Nagaland

Present Status of Exploration in India Basinal Area of Indian coal fields (Sq.Km) Prognosticated Coal bearing Area Area covered under Regional Exploration (Sq.Km) Area covered under Detailed Exploration (Sq.Km) 60,000 19,200 15920 9750 An ambitious time-bound Programme for Coal exploration has been envisaged for India About 3280 Sq.Km area is to be covered under Regional Exploration in next 3 years About 6170 Sq.Km area is to be explored in detail in next five years The entire area to be covered by surface geophysical surveys followed by exploratory drilling and preparation of Geological Reports Global Bidding will be floated to carry out the job beyond departmental capacity

Capacity of CMPDI for Detailed Exploration CMPDI carries out Detailed Exploration through its own resources as well as through contractual agencies CMPDI had an ambitious capacity enhancement program for detailed exploration in terms of Plant & Machinery, Human Resource and skill development. The Departmental Capacity of exploration enhanced to 4.41lakh m of drilling achieved during 2016-17 against 2.73 lakh m achieved during 2011-12

EXPLORATION (Figs in Billion Tonnes as on 01 .04 2017) Coal Type Measured / Proved Indicated Inferred Total Prime Coking 4.61 0.70 - 5.31 Medium Coking 13.50 12.13 1.88 27.51 Semi Coking 0.52 1.00 0.19 1.71 Total – Coking 18.63 13.83 2.07 34.53 Non Coking 123.83 125.39 29.82 279.05 Tertiary Coal 0.59 0.10 0.89 1.57 Grand Total 143.05 139.32 32.78 315.15 (45.4%) (54.6%) Source: GEOLOGICAL SURVEY OF INDIA.

EXPLORATION CMPDI has enhanced its in-house capacity by adoption of modern technology in coal exploration to increase drilling productivity By deploying High Tech Hydrostatic Drilling Rigs, Use of polycrystalline diamond core bits (PCD Bit) of specific design Use of 4.5 meter core barrels instead of standard size of 3 meter core barrels to achieve higher productivity Selection of suitable drilling fluids mixed with desired chemicals for borehole stability Introduction of casing advancer for very loose strata/overburden drilling, in-seam drilling, directional drilling etc

EXPLORATION Multi parametric geophysical borehole Logging is being used routinely in non-coring boreholes Ground Probing Radar (GPR) : is an electromagnetic method for shallow high resolution subsurface investigations survey used for locating water logged mine workings, barrier pillars, buried pipes, soil overburden etc. 2D/3D Seismic Survey: is being used for comprehensive mapping of subsurface features Tomography: Another geophysical technique being planned to introduce in coming years for sub-surface mapping.

Achievement of CMPDI in Detailed Drilling during last 5 years Overall Achievement Departmental Achievement Outsourced Drilling achievement Meterage Drilled (Lakh m) Growth over previous year (%) 2012-13 5.63 13 2.76 1.1 2.87 27.6 2013-14 6.97 23.8 3.25 17.8 3.72 29.6 2014-15 8.28 18.8 3.56 9.5 4.72 26.9 2015-16 9.94 20 4.08 14 5.86 24 2016-17 11.25 4.41 8 6.84 17 Total 42.07 18.06 24.01

Coal Production – Projections Company Projection (Mt) 20 17-18 2018-19 2019-20 ECL 47 57 62 BCCL 41 46 53 CCL 71 102 133 NCL 89 99 110 WCL 48 55 60 SECL 154 193 240 MCL 150 222 250 Total CIL 600 774 908 12

PLANNING PREPAREDNESS FOR PRODUCTION ENHANCEMENT In 2019-20, the production projected from CIL mines and projects is expected from: Existing Mines : 55.09 Mt Completed Projects : 109.87 Mt Ongoing Projects : 561.48 Mt New/Future Projects : 181.66 Mt Project planning has been completed for almost all projects identified for the production projection in 2019-20. 13

LARGE OPENCAST MINES (15 MTY & ABOVE) Sl No Name of Project Comp-any Capacity (mty) 1 Gevra SECL 70.00 2 Magadh CCL 51.00 3 Kusmunda 50.00 4 Siarmal MCL 40.00 5 Integrated Lakhanpur-Belpahar 30.00 6 Gopalji (Kaniha I+II) 7 Dipka 25.00 8 Amrapali Expn 9 Ashok 22.00 10 Sanghamitra 20.00 11 Bharatpur 12 Bhubaneswari 13 Talabira II + III

LARGE OPENCAST MINES (15 MTY & ABOVE) Sl No Name of Project Comp-any Capacity (mty) 14 Jayant NCL 20.00 15 Samaleshwari OC MCL 16 Rajmahal ECL 17.00 17 Lingaraj 16.00 18 Ananta 15.00 19 Gopalprasad + Utkal-A 20 Hingula 21 Dudhichua 22 Nigahi 23 Pachra CCL 24 Rai East & West SECL 25 Pelma 26 Balram

UNDERGROUND MINES IN OUTSOURCING MODE (CM + PSLW) Production Enhancement from UG mines – Mass Production Technology UNDERGROUND MINES IN OUTSOURCING MODE (CM + PSLW) WORK AWARDED Sl No Mine Company Capacity (Mty) Technology 1 Moonidih XV Seam BCCL 2.500 PS Longwall 2 Moonidih XVI Seam 0.700 3 Kapuria 2.000 4 Muraidih 5 Jhanjra ECL 0.950 Continuous Miner 6 Sarpi 0.460 7 Jhanjra PSLW 1.700 8 NCPH/Kapildhara SECL 0.430 9 Sheetaldhara-Kurja 0.420 10 Pinoura 0.400 11 Rani-Atari 0.180 12 Churcha RO 1.000 13 Haldibari 14 Vijay West 15 Tandsi WCL 0.510 16 Khairaha 0.465   Sub-total 14.555

UNDERGROUND MINES IN OUTSOURCING MODE (CM + PSLW) Production Enhancement from UG mines – Mass Production Technology UNDERGROUND MINES IN OUTSOURCING MODE (CM + PSLW) IN PIPELINE Sl No Mine Company Capacity (Mty) Technology 1 Block-II BCCL 0.450 Continuous Miner 2 Kottadih ECL 0.510 3 Ketki SECL 0.300 4 Gayatri 5 Tawa-II WCL 0.360 6 Borda 2.000 PS Longwall 7 Murpar   Sub-total 6.130 Grand-total 20.685

OTHER UG MINES IDENTIFIED FOR CM TECHNOLOGY Production Enhancement from UG mines – Mass Production Technology OTHER UG MINES IDENTIFIED FOR CM TECHNOLOGY PR APPROVED Sl No Mine Company Capacity (Mty) Technology 1 Kumardih B ECL 1.020 Continuous Miner 2 Churi CCL 0.500 3 Parej East 0.510 4 Amlo-Dhori 0.300 5 Jamunia WCL 0.840 6 Gandhigram 1.170 7 Dhau North 0.360 8 Talcher West MCL 0.520 9 Natraj   Sub-total (PR approved) 5.740

OTHER MINES IDENTIFIED FOR CM TECHNOLOGY Production Enhancement from UG mines – Mass Production Technology OTHER MINES IDENTIFIED FOR CM TECHNOLOGY TO BE APPROVED Sl No Mine Company Capacity (Mty) Technology 1 Tilaboni ECL 1.860 Continuous Miner 2 Jhanjra LHCM 0.720 3 Shankarpur 1.163 4 Pandaveswar-Dalurband 1.170 5 Rangamati-A 0.855 6 Rangamati-B (Tumni and Kanchanpur Sector) 1.080 7 Pathakpur SECL 8. Piparwar CCL 0.87  Sub-total (PR awaiting approval) 8.438    Total (Other Identified Mines) 5.740  Grand-total (Outsourcing + Other Identified Mines) 34.863

MAIN COALFIELDS AND THEIR CONSTRAINTS Tentative Capacity (Mty) 2019-20 Prodn (Mt) Main Constraints (as per Master Plan document) Talcher 165.48 147.25 EC, FC, R&R, land acquisition (Total land approx 58133 Ha; Forest approx 8400 Ha; PAFs approx. 40000). Construction of Rly network from Jarapada – Talcher (87 km), Radhikapur West - Angul (50 km), Angul - Talcher (40 km), Talcher – Dhamra Port via Bhadrak 150 km). Construction of road network to connect Hingula, Lingaraj, Chhendipada, Angul, Jarpada, Budhapank, etc. Construction of approx 105 km OHT power lines and at least 205 MVA Substations. 20

MAIN COALFIELDS AND THEIR CONSTRAINTS Tentative Capacity (Mty) 2019-20 Prodn (Mt) Main Constraints (as per Master Plan document) North Karan-pura 160.53 91.55 EC, FC, R&R, land acquisition (Total land approx 33130 Ha; Forest approx 10753 Ha; PAFs approx. 11000). Construction of Tori-Shivpur-Kathautia Rly line (about 93 km). Completion of Piparwar McLuskiegunj Rly line (31 km). Strengthening of road network to connect Khelari, Tori, Shivpur, Balumath, Tandwa, etc. Construction of approx 85 km OHT power lines and at least 250 MVA Substations. 21

MAIN COALFIELDS AND THEIR CONSTRAINTS Tentative Capacity (Mty) 2019-20 Prodn (Mt) Main Constraints (as per Master Plan document) Ib Valley 150.66 102.75 EC, FC, R&R, land acquisition (Total land approx 32260 Ha; Forest approx 7867 Ha; PAFs approx. 17100). Construction of Rly network from Dhutra to Sardega (52 km), Jamkani-Bijahn (34 km), Dulunga-Darlipali (12 km) & Howrah Mumbai main line (32 km), Talabira to Howrah Mumbai main line (5 km), Monoharpur to OPGC (40 km). Construction of road network to connect Belpahar, Lakhanpur, Samleshwari, Orient, Lajkura, Basundhara, Sundergarh, Talabira, etc. Construction of approx 135 km OHT power lines and at least 154 MVA Substations. 22

MAIN COALFIELDS AND THEIR CONSTRAINTS Tentative Capacity (Mty) 2019-20 Prodn (Mt) Main Constraints (as per Master Plan document) Mand-Raigarh 79.00 29.70 EC, FC, R&R, land acquisition (Total land approx 31194 Ha; Forest approx 18053 Ha; PAFs approx. 8200). Construction of Rly corridor from Bhupdeopur to Korba (via Ghargoda & Dharamjaygarh with a spur from Ghargoda to Donga Mauha to connect Gare-Pelma Block) - 180 km. Strengthening of road network to connect Gharghora, Raikera, Kurumkela, Rai, Porda, Syang, Dharamjaygarh, etc. Construction of approx 85 km OHT power lines and at least 260 MVA Substations. 23

MAIN COALFIELDS AND THEIR CONSTRAINTS Tentative Capacity (Mty) 2019-20 Prodn (Mt) Main Constraints (as per Master Plan document) Rajmahal 52.00 24.00 FC and law & order problem for exploration. EC, FC, R&R, land acquisition for mining operations. Rail links for Chuperbhita, Hura C, Simlong. Construction of Dumka-Rampurhat and other Rail Lines (10-15 km) for linking with new blocks. Diversion of Brahmani River, Local Nalas, Dumka-Rampurhat Road. Construction of road network to connect the new blocks with Godda, Pakur, etc. Construction of OHT power lines and substations for new blocks. 24

MAIN COALFIELDS AND THEIR CONSTRAINTS Tentative Capacity (Mty) 2019-20 Prodn (Mt) Main Constraints (as per Master Plan document) Singrauli Main Basin 23.96 4.00 No existing road, rail, power network - greenfield area. EC, FC, R&R, land acquisition for mining operations. Construction of Rly network to link the blocks to Katni Chopan rly line (about 30 km to northern blocks and about 10-15 km to southern blocks from Katni Chopan rly line). Increasing the capacity of Katni-Chopan rly line. Construction of road network to connect the blocks with Singrauli, Katni, etc. Construction of OHT power lines and Substations for the blocks. 25

CONCLUSION The constraints can be summed up as:   Delay in forestry clearance and law and order problem during exploration Delays in environmental and forestry clearances Lack of rail networks in green-field areas for coal evacuation Problems in land acquisition and village rehabilitation & increasing land-prices Heavily-built up surface areas needing substantial R&R Shortage of space for overburden dumping Economic viability of projects due to increase in land prices, specially UG projects Involvement of diversion of roads and river/nalas, etc

CONCLUSION With its vast expanse and expertise, CIL is expected to meet a major share of the future coal demand Much of the production planning and time-bound action plans are already in place Opening and bringing coal projects to target production level entails overcoming the constraints being faced by the coal industry, especially land acquisition Active guidance and help will be needed from all stakeholders in overcoming the constraints in time Under the dynamic leadership provided by Hon’ble Minister of Coal, CIL is optimistic about meeting the expectations of the stakeholders and the country.

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LARGE OPENCAST MINES (15 MTY & ABOVE) Sl No Name of Project Comp-any Capacity (mty) Project Status 1 Gevra SECL 70.00 Sanctioned 2 Magadh CCL 51.00 Awaiting approval (20 Mty sanctioned) 3 Kusmunda 50.00 4 Siarmal MCL 40.00 5 Integrated Lakhanpur-Belpahar 30.00 Awaiting approval 6 Gopalji (Kaniha I+II) Awaiting approval (10 Mty sanctioned) 7 Dipka 25.00 8 Amrapali Expn Awaiting approval (12 Mty sanctioned) 9 Ashok 22.00 10 Sanghamitra 20.00 11 Bharatpur 12 Bhubaneswari 13 Talabira II + III

LARGE OPENCAST MINES (15 MTY & ABOVE) Sl No Name of Project Comp-any Capacity (mty) Project Status 14 Jayant NCL 20.00 Awaiting approval (10 Mty sanctioned) 15 Samaleshwari OC MCL Awaiting Approval (12 Mty sanctioned) 16 Rajmahal ECL 17.00 Sanctioned 17 Lingaraj 16.00 18 Ananta 15.00 19 Gopalprasad + Utkal-A 20 Hingula 21 Dudhichua 22 Nigahi 23 Pachra CCL Awaiting approval 24 Rai East & West SECL 25 Pelma 26 Balram Awaiting approval (8 Mty sanctioned)

ENERGY SCENARIO - AN OVERVIEW The Indian energy sector is gearing up for major transformation in the coming years. Considering: the limited reserve potentiality of petroleum & natural gas eco-conservation restrictions of large hydroelectric projects geo-political perception of nuclear power and limitations of capacity and storage of solar power coal is likely to continue occupying center-stage of Indian energy scenario till about 2040.

ENERGY SCENARIO - AN OVERVIEW Ensuring adequate availability of coal and minimum possible import of coal depends largely upon: efficient exploration, supported by focused planning of coal mining projects and effective management of constraints in opening and operating the coal mining projects. These, however, need to be aligned with the likely demand for coal for thermal power generation.  

EXPLORATION Particulars No. of Blocks Area (sq.km.) Measured / Proved Figures in Mt. Particulars No. of Blocks Area (sq.km.) Measured / Proved Indicated Inferred Total CIL Blocks 337 5702.51 75119.57 20382.25 12583.80 108085.62 Addl CIL Blocks 119 2004.00 11006.55 31163.81 4396.54 46566.90 TOTAL – CIL 456 7706.51 86126.12 51546.06 16980.34 154652.52 Non-CIL Captive Grand Total

COAL DEMAND SCENARIO Sector Scenario FY 2017 (A) FY 2018 FY 2019 Regulated Sector Scenario 1 633 606 632 663 908 Scenario 2 587 598 617 750 Scenario 3 612 646 689 1190 Non-regulated Sector 263 274 289 301 550 279 292 306 553 295 311 324 717 Total 896 880 921 964 1457 866 890 923 1303 907 957 1013 1907 Source: Draft Report on “Coal Vision 2030”, Sept. 2017 by M/s KPMG. Figs in Mt.

PLANNING PREPAREDNESS FOR PRODUCTION ENHANCEMENT Particulars Nos Contribution in 2019-20 (Mt) A: Project Reports/Updated Cost Estimates/Schemes already submitted 73 204.05 B: PRs/UCEs/Schemes to be submitted 7 3.40 B.1: PRs to be submitted 1 0.50 B.4: PRs requiring exploration and Geological Report preparation * 6 2.90 TOTAL (A + B) 80 207.45 * To make up 2.90 Mt production from these 6 nos of PRs requiring GRs, additional production from existing mines/ projects is proposed, PRs for which are already available. 36

Status of 119 Addl Blocks assigned to CIL Sl. No. Particulars No. of blocks Tentative Reserves (MT) Tentative capacity (Mty) 1. GR Available 46 15107.73 97.37 2. Exploration in progress 62 24934.60 97.85 3. Exploration to start 11 5491.84 15.60 Total 119 45534.17 210.82 Note: PRs have been prepared for 16 blocks out of 46 for which GRs are available. PRs for another 13 blocks will be submitted by March 2018.