Essentials for Enhancing Coal Production K.B.

Transcript:Essentials for Enhancing Coal Production K.B.:
Essentials for Enhancing Coal Production K.B. Trehan – Director, Mining & Metals, IISD / INR Agenda Expand the reserve and resource base Focus on enhancing productivity Speed up clearances Equipment approvals Essentials for high capacity mining International best practices in contract management Avoid regulatory overkill Summary 2 1. Expand the reserve and resource base India is amongst the lowest spenders on mineral exploration in the major economies of the world. The total exploration (regional, promotional and detailed) drilling per annum in coal and lignite is around 2.5 lakh meters per annum with a spend of about Rs. 250 Cr. as against US$ 600 million in Australia The total quantum of drilling is to be increased to 20 lakh meters per annum with an outlay of around Rs.1500 Cr. - To be outsourced in a big way and relevant approvals to be expedited. 3 2. Focus on enhancing productivity Indian Coal mines have a long way to go in terms of productivity. The largest underground coal mine produces around 1MTPA whereas in USA, Russia, China, Australia and South Africa, it is 10 MTPA. Lack of investment in technology is the principal reason. Contd. 4 2. Focus on enhancing productivity OC is a success story in India. Thanks to the vision of the mining industry leadership – Some of the Outsourced Opencast OBR contractors have Australian level of equipment availability, utilization and productivity. In UG Mines, Joy and Bucyrus operated CMs have set some productivity records. To replicate these success stories… Contd. 5 2. Focus on enhancing productivity Invest in “TECHNOLOGY, PEOPLE & SYSTEMS” – Three pillars of productivity. Invest in “Training” – Shortage of skilled manpower or political difficulty of hiring right manpower. Investing in high cost of equipment is worth only if they are going to be productive. Training people in advanced equipment and methods of working is a must. Focus on “Mining as a System” instead of each piece to be understood at all levels. Coal companies should look at “lifecycle cost of equipment and cost per ton” instead of the cost of initial acquisition. Provide “funding for equipment” (like some CIL collieries), as banks do not have expertise in lending to underground equipment. 6 3. Speed up clearances The present clearances: mine lease, mine plan, environmental approval, forest clearance take between 5 to 8 years; target it to reduce it to 2 years. EMP should take a maximum