NSC RECOMMENDATION ON CONTRACT MINING AND ITS IMPLEMENTATION BY S C JHAGRAWAT Manager (MINES) GMDC Rajpardi

1. Mining of minerals has been one of the most common activity since ancient and is continue 2. After the globalization it is difficult to compete in the market unless the competitive cost of production and continuous supply 3. Continuous and quality production needs advance technology, adopting best mining practices and develop matching infrastructure. 4. Contract mining is the effective tool to achieve continuous quality product. 5. Contractors are more concern with cost reduction and hence more vulnerable to safety. 6. Hence National safety Conferences are now more emphases on contractors working NEED OF NATIONAL SAFETY CONFERENCE

SOME STATISTICS Total coal mines operated in India: >500 Total Opencast coal mines operated in india:286 Coal demand in India: 696 MT(FY ) Coal produced by India:534 MT (FY ) To fulfill the gap between demand and supply it is necessary to operate the mine with modern technology and adopt better mining practices

NEED OF CONTRACT MINING In the modern era it is difficult to survive in the market unless the competitive cost of production and timely supply of quality product is ensured. There are some common reasons for opting contract mining by the owners, these are: 1. Reduce operating cost. 2. Timely supply of quality product to consumers. 3. Smooth and continuous operation. 4. Non availability of sufficient internal resources and 5. Share risks with contractors. NEED OF CONTRACT MINING In the modern era it is difficult to survive in the market unless the competitive cost of production and timely supply of quality product is ensured. There are some common reasons for opting contract mining by the owners, these are: 1. Reduce operating cost. 2. Timely supply of quality product to consumers. 3. Smooth and continuous operation. 4. Non availability of sufficient internal resources and 5. Share risks with contractors.

CONTRACT MINING AND SAFETY The option of contract mining, though help in cost reduction, it is more vulnerable to safety in mines. Followings are the problem areas for safety, health and welfare: 1. In many cases, the existing mine management structure is not suitable and effective to control the interfaces with contractors. 2. Big contractors awards parts of the job to petty contractors not having adequate capacity or concern for safety. 3. Employees are purely temporary, not conversant with mining laws. 4. Employees are not given required training. 5. Contractors worker have a more risk taking attitude. 6. More working hours/fatigue 7. Lack of medical surveillance and welfare amenities. Having needs of contract mining vis-a vis safety of mines, 10 th conference on safety in mines had given more weight age on contract mining. Recommendation of NSC and status of its implementation is summarized ahead slides: CONTRACT MINING AND SAFETY The option of contract mining, though help in cost reduction, it is more vulnerable to safety in mines. Followings are the problem areas for safety, health and welfare: 1. In many cases, the existing mine management structure is not suitable and effective to control the interfaces with contractors. 2. Big contractors awards parts of the job to petty contractors not having adequate capacity or concern for safety. 3. Employees are purely temporary, not conversant with mining laws. 4. Employees are not given required training. 5. Contractors worker have a more risk taking attitude. 6. More working hours/fatigue 7. Lack of medical surveillance and welfare amenities. Having needs of contract mining vis-a vis safety of mines, 10 th conference on safety in mines had given more weight age on contract mining. Recommendation of NSC and status of its implementation is summarized ahead slides:

NSC, CONTRACT MINING AND RAJPARDI Protection of employees from hazards in the occupational environment is important from both from the humanization point of view and for the overall welfare of the organization. Following are the recommendations made in the 10 th safety conference and status of implementation in Amod Lignite Mine (Rajpardi): GMDC(Employer)s responsibilities: 1. Recommendation: Suitable clauses shall be included intender document stating how the risk arising to men and material from the mining operation/operations to be done by the contractors shall be managed. * Clauses related to stating how the risk arising to men and material from the mining operation/operations are included in recently awarded work order. 2. Ensure that contractors are familiar with the relevant parts of the statute, health and safety management system. * Copies of the statute applicable to the mine is provided to the contractor. 3. Ensure that contractors arrangement for health and safety management are consistent with those for the mine owner. * Rules,regulations and bye-law as applicable to the mine owner are also strictly implementing to the contractors. Form B, D and E are maintained independently.Cont….. NSC, CONTRACT MINING AND RAJPARDI Protection of employees from hazards in the occupational environment is important from both from the humanization point of view and for the overall welfare of the organization. Following are the recommendations made in the 10 th safety conference and status of implementation in Amod Lignite Mine (Rajpardi): GMDC(Employer)s responsibilities: 1. Recommendation: Suitable clauses shall be included intender document stating how the risk arising to men and material from the mining operation/operations to be done by the contractors shall be managed. * Clauses related to stating how the risk arising to men and material from the mining operation/operations are included in recently awarded work order. 2. Ensure that contractors are familiar with the relevant parts of the statute, health and safety management system. * Copies of the statute applicable to the mine is provided to the contractor. 3. Ensure that contractors arrangement for health and safety management are consistent with those for the mine owner. * Rules,regulations and bye-law as applicable to the mine owner are also strictly implementing to the contractors. Form B, D and E are maintained independently.Cont…..

4. Ensure that contract should preferably be of longer period (Three years). * Recently awarded contract is for five years. 5. Monitor all activities of the contractors are compiling with all the requirements of the statute and system related to safety. * Monitoring in all level starting from manager to ground level supervisors is being done in respect of compiling with all the requirements of the statute and system related to safety. Contractors responsibilities: 1. Prepare written Safe operating Procedure (SOP) for the work to be carried out including assessment of risk, wherever possible and safe method to deal with them. * Risk assessment is carried out departmentally and continue. SOP for different operations are made. Contractors are asked to prepare SOP. 2. Ensure that all work is carried out in accordance with the statute and SOP and for the purpose he may deploy adequate qualified and competent personnel for the purpose. * Trained works supervisors and competent staff are deployed by the contractors.

3. Ensure work of specified scope/nature, develop and provide to the mine owner a site specific code of practice. * Contractors are asked to prepare site specific code of practice. 4. Petty Contrctors: * No Petty contractors. 5. All persons deployed by the contractors must be vocationlly trained and medically fit. * All persons employed by the contractor is Vocationally trained. IME is done of all employees. * Work of issuing Identity card is in progress. 6. Every person deployed by the contractor in the mine must wear safety gadgets. * Safety gadgets like safety shoes, helmets, safety goggles, florescent jackets, safety belts etc are provided and wearing by the work persons while on duty. 7. The contractors shall submit to DGMS returns indicating name of his firm. * Contractor is doing so. 8. Submission of quarterly return. * Work is recently awarded, QR is due in January 2013.

ADVANTAGE OF NSCS To The Industry: th Safety Conference makes the contractor more responsible towards the safety of the mine, helpful to the management. 2. It Provides liberty to the management for engagement of lower supervisory cadre staff by the contractor and maintenance of their record separately. 3. Safety standard of parent company will rise. To the Contractors: 1. Contractor have to make and implement the Safe Operating Procedure before commencement of work. This safe operating procedure should be implemented by the management and the outsourcing agency religiously for successful implementation of system of outsourcing so as to compete in global market. - Trained and healthy workforce makes the working to its excellent. To the employee: 1. By implementing recommendation of NSC, worker can get better working environment. 2. Employee can get better Health and welfare amenities. 3. Accident free environment boots up the moral of the employee hence production and productivity will increase.

EXTRACT * National safety conferences is a best platform for mine owners, mine operators, regulatory bodies and trade unions to share their views regarding safety of the mine, materials and persons deployed therein. * Representative from contractors shall also given proper weightage as most of the opencast mines is going to outsourced. Recommendations generated should to implemented by its best way and maximum extent. * Recommendations of NSCs are beneficiaries to persons employed in the mine, profitable to the industry and helpful to regulatory body to regulate the mine safely. EXTRACT * National safety conferences is a best platform for mine owners, mine operators, regulatory bodies and trade unions to share their views regarding safety of the mine, materials and persons deployed therein. * Representative from contractors shall also given proper weightage as most of the opencast mines is going to outsourced. Recommendations generated should to implemented by its best way and maximum extent. * Recommendations of NSCs are beneficiaries to persons employed in the mine, profitable to the industry and helpful to regulatory body to regulate the mine safely.