Coal Washeries - General Scenario in India 7th COAL SUMMIT 2018 "CAN INDIA GROW SUSTAINABLY WITHOUT GREEN COAL ?" 05/09/2018- 06/09/2018, New Delhi, India By Gurudas Mustafi MBE Coal & Mineral Technology India Pvt. Ltd 5/1/2019 01.05.2019 1

OUTLINE Overall Indian Coal Scenario at a Glance Importance of Coal for Indian Economy Indian Coal Reserves Characteristics of Indian Coal and Challenges Involved Global Production and Consumption 2017 Indian Coal Annual Demand vs Production Percentage Fulfilment of Coal by Import Vision 2030 Why Coal Washing ? Key Drivers for Coal Washing in India Deterrents of Coal Washing in India Preparing to Meet Future Demand Technology Policy Pricing SWOT Analysis Gurudas Mustafi 5/1/2019

Overall Indian Coal Scenario at a Glance 87% of total proven coal reserves are non-coking in nature, rest coking, Good quality coal seams depleted and existing seams are of inferior nature, India among top three largest producers and consumers of coal. Indian power sector is major consumer of coal, Consumption of coal is increasing and is expected to increase besides increase in availability of other renewable energy sources, High imports of both coking and non-coking coal (despite having huge reserves of non-coking coal), GOI’s resolve- curb import of non-coking coal, Limited washing capacity and majority of existing washeries outlived their life, Stricter environmental norms. Gurudas Mustafi 5/1/2019

Importance of Coal for Indian Economy Prime source of energy for the Indian economy. 61% of the total electricity produced comes from coal and Power sector consumes about 72% of the coal produced, Cheapest source of power for electricity generation, Largest domestic resource base among available non-renewable sources, Ensures a long term supply. Gurudas Mustafi 5/1/2019

Source – Geological survey of India 2017 INDIAN COAL RESERVES RESERVES 315 Billion tons PROVEN 143 Billion tons (45%) INDICATED INFERRED 172 (55%) Coking Coal (13%) Non- Coking Coal (87%) (10%) (90%) Semi Coking (0.36%) Medium Coking (9.44%) Prime Coking (3.23%) Source – Geological survey of India 2017 Gurudas Mustafi 01.05.2019 5/1/2019 5

Characteristics of Indian Coal and Challenges Involved Typically Indian coal is characterized by following properties:- High ash content and difficult washing characteristics, owing to 'Drift 'origin, Low calorific value, High ash fusion temp, Low moisture, Low sulphur. Major Challenges faced by coal industry :- Increased production from lower seams, Finer liberation size, Low washability index, Enhanced production from open cast mines consisting of larger dirt particles and foreign materials, Depletion of good quality coal seams of both coking and non-coking coal. Gurudas Mustafi 5/1/2019

Global Production and Consumption 2017 Top Consumers of Coal Top Producers of Coal Source – Global Energy Statistical Year Book 2017 Gurudas Mustafi 5/1/2019 01.05.2019 7

Indian Coal Annual Demand vs Production Source – CCO, Ministry of Coal Demand for coal has increased nearly one-third in the last five year, Power sector remains the key consumer with nearly 70 % of overall coal demand, Around one-third of the demand of the coal is met by import. Gurudas Mustafi 5/1/2019

Percentage Fulfillment of Coal by Import The import of coal in India has increased at a rate of 22% annually over the five year ending FY2016, Although India is blessed with ~124 Billion ton of non-coking coal, we still import ~ 140 Mtpa of non-coking coal for power industry, ~ 87% of total coking coal import is from Australia, ~ 61% and 22% of total non-coking coal import is from Indonesia and South Africa respectively, Indigenous coal prices are higher than on site price of imported coal. Gurudas Mustafi 5/1/2019

Vision 2030- Key related points Coal in near future shall remain primary source of energy, Target of ‘1.5 Billion Tons’ coal production in India by 2030 to minimize thermal coal import and to fulfil GOI's vision of "Electricity for all" Both Quantity and Quality of the mined coal to be improved New stricter Environment Norms to be followed during coal production and usage Minimise impact of coal consumption in power sector Go Green : Minimize the carbon footprint Gurudas Mustafi 5/1/2019

WHY COAL WASHING ?? S.No. Impact of washing Effect 1 Reduction in transport cost of coal Saving of 15% on transportation cost, for every ash reduction in coal of 7%. 2 Improvement in thermal efficiency of power plant 3% improvement for every 5% reduction in feed coal ash. 3 Improvement in plant load factor 1.5% improvement for every 10% reduction in feed coal ash. 4 Reduction in operating and maintenance cost of plant 20% cost reduction for every 10% reduction in feed coal ash. 5 Reduction of land requirement for ash disposal Using coal with 34% ash instead of coal with 42% ash reduce land requirement by about 30% 6 Reduction in water requirement for ash water disposal Using coal with 34% ash instead of coal with 42% ash reduce water requirement by about 30% 7 Reduction in CO2 emission 2-3% reduction in CO2 emission when using washed coal. 8 Improvement in ESP efficiency Using washed coal improves ESP efficiency from 98% to 99%. Gurudas Mustafi 01.05.2019 5/1/2019 11

Key Drivers for Coal Washing in India Depletion of good quality coal reserves Gurudas Mustafi 5/1/2019

Key Drivers for Coal Preparation in India-contd. Increased surface mining and mechanization More than 90% of the total coal being mined is from open cast mines, Heavy mechanization has been undertaken in order to increase production from the mines, Selectivity of coal being mined reduced thus causing an increase in the ash of the ROM. Greater need for maintaining the environment quality Environment (Protection) Amendment Rules, 2014 prohibits the transport of coals containing >34% ash to be transported more than 500km, Strive to increase the clean electricity production. Gurudas Mustafi 5/1/2019

Key Drivers for Coal Preparation in India-contd. 4. Increasing Power Demand Non-coking coals, containing high ash content (35-50 wt%), are presently being utilized for power generation mostly without any washing, Location of the power plants being far away from the Non-Coking coal resources. 5. Limited Washing Capacity Currently washed coal supply by CIL and Private player is around 140 Million Tonnes. This is around 30% of the total coal producted in India, 16 new washeries have been planned by CIL to enhance the washing capacity, Two NLW washeries are ready for commercial operation, LOI for Bhojudih washery has been issued in 2016, but no constrution work has yet started. Gurudas Mustafi 5/1/2019

DETERRENTS TO COAL WASHING IN INDIA Washed Coal not yet the norm of the industry. Mining companies are more concerned with production, Coal washing considered to be a costly venture by the Coal industry as well as by end users. Apple to Apple comparison not being made as the cost savings due to environmental benefits, transportation cost, reduced ash disposal cost etc. Indigenous coal prices are higher than imported coal landing price because of transportation cost, various taxes and duties, Lack of coordination between different bodies like Planners, Mine Allotters, Coal producers and Environment Protection Bodies, Strict environmental policies not being implemented in case of power plants which are the major end user of Coal. Gurudas Mustafi 5/1/2019 01.05.2019 15

PREPARING TO MEET FUTURE DEMAND Use of latest technologies for upcoming Washeries. Old Washeries should be upgraded to increase its capacity 1. Proper selection of Technology based on raw coal characteristics, product quality and optimum yield Proper training and more technical institutes that impart technical knowhow regarding coal washing TECHNOLOGY More research on new technologies of dry coal washing and its implementation wherever coal characteristics permit Strict norms to restrict eyewash technologies aimed only to get environmental clearances Using proven technologies: Under pulsated Jigs – BATAC, Moving pan Jigs – ROMJIG, Modern HM Cyclones/Bath, PNEUFLOT, Column Flotation, Improved filters etc. Gurudas Mustafi 01.05.2019 5/1/2019 16

PREPARING TO MEET FUTURE DEMAND Proper implementation of MOEF guidelines 2. Policy of making washed coal the norm. Use of unwashed coal should be an exception only Heavy penalization of end users of coal for violating environmental norms, making coal washing purposeful, necessary and viable POLICY Policy to conform Indian Coal industry with international standards that all coal produced should be washed Gurudas Mustafi 5/1/2019 01.05.2019 17

PREPARING TO MEET FUTURE DEMAND 3. Power Plant which are farer from coal mines should use low ash Indian Coal instead of Imported Coal as fluctuations in Imported coal price are higher. Carbon Credit Policy to be made more popular which will make coal washing a very attractive business proposal for new investors PRICING Gurudas Mustafi 5/1/2019 01.05.2019 18

Gurudas Mustafi 5/1/2019

Thank You for your Attention!! Gurudas Mustafi 5/1/2019 01.05.2019 20