Coal Mining as it is

July 8, 2011, DUBLIN-(Coal Geology) -Research and Markets  has announced the addition of the “Indian Coal Industry Forecast to 2013″ report to their offering.

Indian coal industry is considered to be one of the largest in terms of reserve base and production level. The domestic coal industry has gained significant momentum in the past few years. The industry is mainly dominated by the government-owned PSUs like Coal India Ltd, which contributes around 80% of the overall domestic coal production. The industry has attracted various government concerns and investments in the past few years. Despite its huge resource base, India has not been able to minimize its coal deficit and still depends on imports, which are anticipated to grow in the coming years.

According to this research report Indian Coal Industry Forecast to 2013, Indian coal demand is continuously rising on the back of high demand from major coal consuming sectors including Power, Cement, and Steel. Moreover, with huge coal reserves, growing industry demand and the government support, coal production in the country is expected to grow at a CAGR of around 7% during 2011-12 to 2013-14. It is anticipated that the demand for thermal coal and coking coal by the power and steel sectors respectively, will show a tremendous momentum in near future.

The Indian coal market is set to witness great boost in near future on the back of rising government initiatives. Recently, de-allocation of coal blocks and stake sales in PSU are some of the major steps that were taken by the government to boost the production and investment in the coal industry. Further, presence of vast opportunities in coal washeries is also encouraging players to invest in coal washeries.

Indian Coal Industry Forecast to 2013, provides detail information on key players of the industry, which will enable clients to understand the market share and growth prospects. Besides, it provides intensive details about the current trends prevailing in the industry and future growth potential. Additionally, the report presents industry forecast based on correlation of past drivers, challenges, and opportunities for expansion. In this way, the report provides a comprehensive and coherent analysis of the Indian Coal Industry that will certainly prove decisive for clients.

Key Topics Covered:

1. Analyst View

2. India’s Stand in Global Coal Industry

3. Emerging Market Trends

3.1 Focus on Clean Coal Technology (CCT)

3.2 Rising Domestic Demand

3.3 Growing Wave of M&As to Acquire Overseas Mines

3.4 Increasing Government Support

3.5 Soaring Coal Prices

4. Indian Coal Industry Performance

4.1 Resources

4.1.1 By Type

4.1.2 By State

4.1.3 By Grade

4.2 Production

4.2.1 By Type

4.2.2 By Company

4.2.3 By Opencast & Underground Mines

4.3 Demand 4.3.1 By Type

4.3.2 By Industry

4.4 Supply

4.4.1 By Type

4.4.2 By Industry

4.5 Trade

4.6 Coal Washeries

4.7 Investment

4.7.1 By Company

5. Coal-based Potential Areas

5.1 Coal Bed Methane (CBM)

5.2 Coal Mine Methane (CMM)

5.3 Coal to Petrol

6. Clean Coal Technology (CCT)

6.1 Coal Beneficiation Technology

6.2 Coal Combustion Technology

6.3 Coal Conversion Technologies

6.4 Post-combustion Technology

6.4.1 Combined Cycle Technologies

6.4.2 Underground Coal Gasification

6.4.3 Molten Carbonate Fuel Cell

6.4.4 Magneto-hydro-dynamic Power

6.4.5 Advanced Combustion Technologies

6.4.6 Carbon Capture and Storage Technology

6.5 CCT Roadmap

7. Demand Potential by Industry Verticals

7.1 Cement Industry

7.1.1 Future Installed Capacity

7.1.2 Recent Developments

7.2 Steel Industry

7.2.1 Crude Steel Production

7.2.2 Recent Developments

7.3 Power Sector

7.3.1 Installed Capacity

7.3.2 Coal Based Thermal Power Capacity

8. Government Initiatives

9. Key Players

9.1 Coal India Ltd.

9.2 Singareni Collieries Company Ltd.

9.3 Neyveli Lignite Corporation Ltd.

For more information visit http://www.researchandmarkets.com/research/94b0c4/indian_coal_indust

Contacts

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New Delhi, Sep 25 (Calcutta Tube) In a bid to increase coal production, the government will soon allow up to 20 boreholes in a square km area for coal exploration from one borehole in 1.5 square km permitted now, Coal Minister Sriprakash Jaiswal said Friday.

‘Currently we produce around 530 million tones coal and import 67 million tones. To meet the existing shortfall there is urgent need to increase the production by bringing more coal bearing area under mining,’ Jaiswal said at the 3rd Coal Summit.

He said coal ministry was in consultation with forest and environment ministry to allow more boreholes for coal exploration.

Jaiswal expressed hope that forest ministry would give its green signal to the proposal soon that would allow 15-20 boreholes in per square km area without any forestry clearance.

He said major constraints in augmenting coal production were related to land acquisition, forestry and environmental clearances, inadequate evacuation infrastructure in major coalfields and law and order problems, particularly in some states.

‘To deal with the adverse law and order situation around some of the coal projects, the coal ministry has taken up the matter with the ministry of home affairs for augmentation of the present strength of CISF personnel in the coal companies,’ said Jaiswal.

On the government’s efforts to increase coal production, Jaiswal said the production capacities of public sector companies have been increased through new projects.

The government has allocated 208 coal blocks, out of which 26 have commenced the production. The contribution from these blocks is expected around 104 million tones in next five years, coal minister said.

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‘In Meghalaya, the only lease held by North Eastern Coalfields Limited (NEC) NEC, a CIL subsidiary, pertained to Simsang mines. But it expired in 2008 and its renewal is yet to be received from the State of Meghalaya,’ said the ministry in a statement.

‘In the absence of renewal of lease, at present no more mines has been planned to be opened by NEC, CIL,’ the statement added.

‘In Meghalaya, coal is being produced only by the local people as per the extant customary and tribal land rights,’ it said.

The ministry made the revelation of Meghalaya’s refusal to renew its mining lease to CIL in a statement on total coal resources in the northeast region.

The statement said ‘as per Geological Survey of India‘s latest inventory of the geological resources of coal in the country, 1,471 million tonnes of geological resources of coal have so far been estimated in the northeast region.’

‘Of this, 388 million tonnes are in Assam and 576 milliion tonnes in Meghalaya,’ the statement said, adding: ‘In Assam three opencast mines – Tirap, Tikak and Ledo are in operation under NEC.’

Five more new open cast mines, including those in Lekhapani, Tikak Extension, Tipong, PQ Block and Lachitkhani are proposed to be opened,’ the statement added.

‘The ministry has decided to issue show-cause notices to various coal companies to de-allocate 93 coal and 4 lignite blocks for not making sincere efforts for the development of these blocks for the past several years,’ said a ministry release.

The release said the ministry is constrained to issue notices as the mining companies have failed to respond properly to its reminders earlier to develop the blocks allocated to them at the earliest.

‘Out of the 93 coal blocks, 45 had been given to government companies, while 48 had been allocated to the private sector, the release said.

‘So far, the government has allocated 207 coal blocks for the development of coal resources,’ it added. All the four lignite blocks belongs to the private sector companies.

The ministry has also advised 23 other state-owned and private companies for an early development of the blocks allotted to them to avoid de-allocation, the release added.

Owing to the increasing demand for coal, the government is making all efforts to enhance production through fast-tracking the development of coal blocks, it said, adding the de-allocation drive is part of this process.

LONDON, Aug. 18 (Coal Geology)– Platts, one of the world’s foremost providers of energy and metals information, announced that, on September 1, 2010, it is expanding its suite of thermal coal price assessments to include a daily spot value for thermal coal destined for the Indian marketplace. Thermal coal is used to generate electricity.

The new price assessments, which include freight rates from South Africa to India’s east and west coasts, address the needs of power producers, cement manufacturers, coal traders and ship brokers for an independent source of India-related open-market spot prices.

“India’s thermal coal imports have taken the global industry by storm, changing trade flows radically and thereby increasing the need for expanded and more frequent price information,” said James O’Connell, managing editor of Platts’ Coal Trader International. “We’re pleased to help meet the growing information needs of this important import market and bring greater transparency to the commodity’s and region’s pricing.”

India is the third-largest producer of hard coal, but it is also one of the world’s largest importers. South Africa ranks among the world’s top 10 producers and top 10 exporters of coal. Platts’ new assessments capture price dynamics relating to these important marketplaces.

The assessments will reflect the open-market physical spot value for standard calorific value of 6,300 kilocalories per kilogram (kcal/kg), gross as received (GAR), thermal coal with a maximum ash content of 16% and 1.4% maximum sulfur content. They will be assessed on a cost and freight (CFR) basis delivered to specific ports on the east and west coasts of India.

Alongside the two new price assessments, known as “Platts CFR India,” Platts will publish two corresponding freight rates, as follows:

– Platts CFR India East (6,300 kcal/kg): Physical open-market spot assessment of thermal coal (including the cost of freight) out of Richards Bay, South Africa and destined within a 90-day period for east coast ports in India

– Platts CFR India West (6,300 kcal/kg): Physical open-market spot assessment of thermal coal (including the cost of freight) out of Richards Bay, South Africa and destined within a 90-day period for west coast ports in India

– Platts CFR East Coast India Freight Rate: Assessments for Panamax-sized cargoes from Richards Bay, South Africa, to the ports of Chennai, Ennore, Gangavaram, Haldia, Karaikal, Krishnapatnam, Paradip and Vizag in eastern India

– Platts CFR West Coast India Freight Rate: Assessments for Panamax-sized cargoes from Richards Bay, South Africa, to the ports of Kandla, Mumbai, Mornugao, Mundra, New Mangalore, Navlakhi and Pipavav in western India

Assessments are based on all-day market monitoring and data collection of transactions, bids, offers and other information from market participants and reflect values at the close of the physical trading day at 17:00 (5:00 p.m.) London time. Thermal coal deliveries from other destinations meeting the specifications may also be taken into account for the assessment. All prices are quoted as U.S. dollars per metric ton (mt). The assessments will be published in Platts’ Coal Trader International, within Platts’ Dispatch, a flexible-format, end-of-day data service, as well as in the real-time news service Platts’ European Power Alert.

The new assessments are in addition to the daily 90-day forward price assessments that Platts already publishes for thermal coal delivered on a cost, insurance and freight (CIF) basis to Antwerp/Rotterdam/Amsterdam and on a free-on-board (FOB) basis from coal terminals in South Africa, Australia and Kalimantan, Indonesia.

The methodology for Platts’ India-bound thermal coal price assessments was developed in consultation with a cross-section of key industry players, draws on Platts’ century of experience in benchmark price reporting in energy, and is underpinned by robust quality guidelines.

For more information on coal, visit the Platts website at www.platts.com. For Chinese-language information on coal and energy markets, visit http://www.platts.cn/.

About Platts: Platts, a division of The McGraw-Hill Companies , is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts’ real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor’s, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.

Platts

CONTACT: Kathleen Tanzy, +1-212-904-2860, Kathleen_tanzy@platts.com; orNon-U.S. media may contact in Europe: Shiona Ramage,Shiona_Ramage@platts.com, +44207 1766153; or in India, Rohit Varier,rohit@integralpr.com, +9819403110; or in Asia, Casey Yew,Casey_Yew@platts.com, +65 653 06552

Web site: http://www.platts.com/

‘The demand projected in the mid-term appraisal of 11th Plan for 2011-12 is 713 million tonnes against which the projected production is only 629.91 million tonnes. The balance of 83 million tonnes will have to be met by imports,’ he told a seminar by Coal Consumers’ Association of India.

He said the coal production from captive blocks could contribute to about 42 million tonnes against an envisaged target of 81 million tonnes, which would further augment the need to import more coal during 2011-12.

The total coal production was anticipated to be around 570 million tonnes in 2010-11.

‘Total coal trade in the international market is about 800-900 million tonnes. If India has to import more than 100 million tonnes extending to about 250 million tonnes by the end of the 12th Plan, this will seriously affect international trade,’ he said.

Talking about the operationalisation of the coal blocks, he said of the 208 coal blocks allotted, only 26 are operating now.

‘During the formulation of the 11th Plan it was envisaged that about 104 million tonnes of coal would be available from coal blocks, mainly for power generation. With the progress noticed we do not envisage that the production will cross more than 40-42 million tonnes in the terminal year of the 11th Plan. This single factor can account for a shortage of about 60 million tonne,’ Jaiswal said.

He further added the various proposals which have not been cleared by the environment and forests ministry has resulted in a reduction of another 40 million tonnes in the terminal year of the 11th Plan.

‘The government has taken note of this and is intensively engaged in finding an appropriate solution,’ the minister said.

Black, Bright, Banded, occasional boney lamination

The Indian Coal deposits mainly occur in two stratigraphic horizons: Permian Gondowana and the Tertiary. The Gondowana coal contributes about 99.5% of total coal deposit in India and the Gondowana coal formation is mainly confined within the Peninsular India.The Gondowana Coalfield covers nearly 2% of the total area of India. The prominent coal seams in the Gondowana belongs to the Kaharbari (Basal Coal Measures) and Barakar (Lower Coal Measures). The Raniganj Formation (Upper Coal Measures) contains the bulk of the superior grade non-coking coals in India. Most of the Gondowana coal formations are found along with distinct river valleys such as Damodor-Koel, Son-Mahanadi, Pranhita-Godavari and Satpura area. The Rajmahal coalfields are located north-east of Damodar Valley. Most of the Gondowana Coalfields except the Godavari Valley are operated by the Coal India Limited.

General Gondowana Coal Quality:

• Mainly sub-bituminous to bituminous in rank.
• Usually high ash content (generally 15% or higher)
• Average heat value: 5000Kcal/Kg
• Moisture content is variable between 6-10% (Only exception is Barakar Coal with low moisture content).
• Volatile Matter – low to medium in most coals.
• Sulfur content is typically low and rarely exceeds 0.6%.
• Average reflectance between 0.5 to 1.

Thickness of Gondowana Coal seams:

• Generally think to very thick.
• Lower Barakar formation has 65 feet – 130 feet thick coal
• Damodar Valley coalfields: 40 feet – 50 feet thick coal

Major Coalfields in Gondowana with active mines:

• Eastern Coalfield Ltd: Raniganj, Rajmahal and Saharjuri Coalfields
• Bharat Coking Coal Ltd: Jharia and Raniganj Coalfields
• Central Coalfields Ltd: East and West Bokaro, Ramgarh, Karanpura, South Karanpura, Daltonganj, Hutur, Giridh, Jainti coalfields
• Western Coalfields Ltd: Umrer, Kamptee, Chanda-Warda, Pench-Kanhan, Pathakhere coalfields.
• Southeastern Coalfields Ltd: Umaria, Johilla, Sohagpur, Jharkhand, Sonhat, Jhilmili, Chirimiri, Bishrampur, Korba, Mand-Raigarh, Ib-Valley and Talcher coalfields
• Northern Coalfields Ltd: Singrauli coalfields.

Reference: R.V. Savanur and A.K Roy in 1988: Paleobotanist v 36, pp 369-377. (Check the paper for detailed Gondowana Coal Quality analysis)