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Showing posts with label coal supply. Show all posts
Showing posts with label coal supply. Show all posts
China, the world’s largest coal consumer, has decided to halt new coal mines approval for the next three years while it continues cutting output at existing operations, in a new effort to shrink both oversupply and a worsening pollution crisis.
Beijing will shut more than 1,000 coal mines next year, taking out 60 million metric tons of unneeded capacity
As part of the tough rules implemented by the national energy regulator, Beijing will shut more than 1,000 coal mines next year, taking out 60 million metric tons of unneeded capacity, state-run agency Xinhua News reported.
China's chronic air pollution generally gets worse in winter, when power consumption —much of it fuelled by coal — rises along with demand for heating. Earlier this month, capital Beijing issued its first-ever red alert for pollution. Poisonous air quality prompted the government to close schools, force motorists off the road and shut down factories for more than 72 hours.
The government has also readjusted its targeted energy mix for 2016. Under the new blueprint, non-fossil fuels will make up 13.2% of the country's energy, an increase from 12% this year. The ratio of natural gas will also increase to 6.2% from 6% while coal usage will be reduced to 62.6% from around 64.4% this year.
For the next five years, the Chinese government also aims to add over 20 million kilowatts of installed wind power and more than 15 million kilowatts of installed photovoltaic power.
(Source: Mining.com)
In a big move towards environment conservation, the Maharashtra Pollution Control Board (MPCB) has made coal wash and beneficiation mandatory for coal mining projects. It will help in controlling high level of pollution at coal mines and also thermal power stations. Also, the thermal power stations especially of Maharashtra State Power Generation Company Limited (Mahagenco) will benefit to a great extent as washed and beneficiated coal increase power generation and also save conveyance cost.

The MPCB's consent appraisal committee headed by additional chief secretary, environment department, Ms. Malini Shankar took the decision in the meeting held on November 3. The committee has framed a new bank guarantee regime policy for mining and coal washery. Total 18 aspects have been finalized under the new policy for controlling water, air, non-hazardous waste, hazardous waste, operation and maintenance pollution. Also time bound programme has been planned for compliance of each concept with bank guarantees. The coal mining companies will have to comply with all these 18 concepts in stipulated time period or else face action.

One concept is related to much awaited norm of coal washeries at coal mining areas' end. The policy is to-tally aims at Vidarbha as all coal mining projects are situated in this region.

As per policy, the coal mining companies will have to establish coal washeries at mines within six months that too with adequate capacity. As against compliance of the condition, the companies will have to submit bank guarantee of Rs25 lakh. Though not cleared by the committee in minutes of the meeting, the condition will be applied to new coal mining pro-jects and existing ones as well.

A subsidiary of Coal India Limited — Western Coal-fields Limited (WCL) operates 53 coal mines in Vidarbha and produces around 30 million tonne coal in a fiscal. Karnataka Government operates one coal mining project near Bhadravati in Chandrapur district. All the coal mining companies will have to establish coal washeries at their mining projects.

The coal produced by WCL is mostly of grade-E and comprise around or over 40 percent ash. The thermal power stations have no option to transport coal with such high ash content from coal mines causing huge financial loss in conveyance. Besides, high ash con-tent in coal damages equipments at power plants. Fly ash is generated in high quantity at power plants with utilization of high ash content coal. It also affects power generation as high ash content coal comprise of less usual heat value (UHV).

Taking serious cognisance of all these issues especially air and water pollution, the Ministry of Environment and Forests (MoEF) had made it mandatory for thermal power stations to utilize coal with ash con-tent of or less than 34 percent only in 2005. Mahagenco assigned the task to five coal washeries for coal wash and beneficiation but failed to get desired results. Following corruption in large scale, the Ma-hagenco terminated agreements with coal washeries in 2011-12. Coal with high ash content is supplied by WCL and consumed by power plants flouting all norms for last four years.

In 2008, the CIL for the first time came up with a plan to set up 28 coal washeries at its subsidiaries of which one is proposed in WCL near Ghugus in Yavat-mal district. The project remained on paper for last seven years.

Major Conditions in New Policy
  • Coal transportation only in mechanically closed trucks. 10 percent of total fleet to be replaced in every six months
  • Ambient air quality monitoring stations at mining projects
  • Overburden not to be stored for long period and disposed off by way of backfilling
  • Effluent treatment plant for treating waste from workshops and mines and its reuse
  • Sewage treatment plant for treating domestic waste and its reuse
  • Black topped mettled roads shall be provided and well maintained to prevent dust formation
  • Coal handling plant and loading area to be provided with dust collector and automatic water sprinklers
  • Scientific spraying of water on all working areas, dump area with the help of dust suppression system
  • Adoption and installation of tyre wash system to mining transportation trucks on roads
  • Sediment tanks of appropriate size for mine discharge treatment with stone pitching lining/lined sedimentation tank
(Source – Times of India, 16-November-2015)
Going ahead with its plan to set up a Rs 10,000 crore power plant in Odisha, state-run miner Coal India in this fiscal will appoint a consultant who would provide help in setting up the project.

“We would appoint a consultant in the current fiscal which would help us in providing modalities for setting up of Rs. 10,000 crores power plant,” Mahanadi Coalfields Ltd (MCL) Chairman-cum-Managing Director Mr. A.K. Jha said.

Coal India-arm Mahanadi Coalfields will set up the 1,600 megawatt (MW) super critical thermal power plant in Sundargarh district of Odisha.The 2×800 megawatt (MW) plant at the mouth of a coal field in the Mahanadi basin will mark the coal producer’s foray into the power sector.

Mr. Jha said the company is looking at setting up power plants at mines from where evacuation of coal in the absence of road and rail transport infrastructure is difficult.

Stating that the preliminary work for the proposed power project has already begun, Mr. Jha said that the land for the plant has been identified and the process for obtaining coal linkages is underway.

He further said, CIL has set production target of 550 million tonnes (MT) for 2015-16 and MCL’s share will be 150 MT. MCL had earlier said it wished to set up a 2×800 MW pit-head super critical thermal power plant in the vicinity of the Basundhara-Garjanbahal coal mines with a joint venture partner.

A special purpose vehicle (SPV), namely, Mahanadi Basin Power Ltd (MBPL) has been incorporated as a wholly-owned subsidiary of MCL for setting up the project.

(Source – Assorted with the inputs from PTI)

Last Week Top Headlines of Power Sector....

  • The 4,000 MW Tilaiya ultra mega power project (UMPP) in Jharkhand, abandoned by Reliance Power, is likely to be auctioned afresh as most of its consumers want to avoid litigation. In the meeting held last Tuesday, the procurers of Tilaiya UMPP generally appreciated that paying the Rs 125 crore compensation as per the contract will be the best solution in the interest of the project as legal recourse will only delay it. After paying off the company, the procurers can re-bid the plant.

  • Construction of two 700-MW nuclear power units at the Rajasthan Atomic Power Station (RAPS) is progressing fast and preparatory work to install the coolant channels was on. Welding of end shield and calandria is over. Preparation work for core components - coolant channels - has started. It will take six months to complete.

  • National Green Tribunal (NGT) has issued notices to NTPC and Bridge and Roof Company (India) Ltd for alleged illegal excavation of sand for construction of 1,600 MW thermal power station at Gardarwara in Narsinghpur district of Madhya Pradesh.

  • The tariff for electricity generated by the Kudankulam NPP will remain at the level set by the Indian Government in 2010 – 2011, with no hikes, Russian State Atomic Energy Corporation "Rosatom" has said.

  • The Mahanadi Coalfields Ltd (MCL) would set up a 1,600-MW super critical thermal power plant with a total capital investment of Rs 11,363.18 crore at Basundhara in Sundargarh district.

  • NTPC will invest over Rs.5,000 crore on expansion of Simhadri Super Thermal Power Station near Parawada. The district administration has been approached for allotment of site required for the Brownfield project.

  • Solar manufacturer and solutions provider Waaree Energies Ltd commissioned a 27.5-mw DC solar power plant for Roha Dyechem Pvt Ltd at Bhadla solar park in Rajasthan.

  • The central government will bail out close to 21,400 MW of power plants by assuring coal linkage through new fuel supply agreements (FSAs). These plants comprise the power projects whose commissioning date was delayed due to several reasons, including fuel supply crunch. Of this, 2,415 Mw would get tapering linkage and rest would be long-term linkage.

  • Odisha state government hopes to bag the Baitarani West coal block soon for its PSU, Odisha Thermal Power Corporation (OTPCL), a 50:50 joint venture between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC).

  • The government is likely to allow companies to divert coal supply to efficient power plants from inefficient plants to generate more electricity with the available fuel.

  • Coal imports dropped by 27.16 per cent to 12.6 million tonnes (MT) last month from a year-ago period on the back of rise in domestic production.

  • The Coal Ministry has made a one-time exception to allow captive power plants to participate in the e-auction for coal by Coal India.

  • In light of there being sufficient coal stocks at thermal power plants across India, producer Coal India Limited (CIL) has been granted greater flexibility in offering higher volumes for sale through e-auction.

  • Relaxing earlier restrictions, an expert panel of the environment ministry has recommended a two-fold increase in the ash content of imported coal from 12% to 25%, giving in to demands of the Association of Power Producers (APP), who are highly dependant on the imported fossil fuel.

  • Of the two key power transmission projects put up for tariff-based competitive bidding (TBCB), state-owned Power Grid Corporation of India (PGCIL) won the Rs 7,032-crore Vemagiri-II transmission project, one of the costliest projects to come under the bidding route this year.

  • Of the two key power transmission projects put up for tariff-based competitive bidding (TBCB), Kalpataru Power Transmission bagged the second project — the Rs 2,240-crore Bhutan inter-link. The project, based in West Bengal, would help in evacuation of power from upcoming hydro projects in Bhutan.

  • Renewable energy firm Gamesa has bagged a 100-MW wind power project from Hero Group to set up 50 wind turbines in Madhya Pradesh.

Virginia Mining Resources would be closely tracking the developments on the subject and other events in the mining & resource sector and bringing you the same.
 

India has moved up one position to become the world’s seventh most valued ‘nation brand’, with an increase of 32 percent in its brand value to USD 2.1 billion.

The US remains on the top with a valuation of USD 19.7 billion, followed by China and Germany at the second and the third positions respectively, as per the annual report on world’s most valuable nation brands compiled by Brand Finance.

The UK is ranked 4th, Japan is at fifth position and France is sixth on the list. While India and France have moved up one position each since last year, all the top-five countries have retained their respective places. However, the surge of 32 percent in India’s ‘nation brand value’ is the highest among all the top-20 countries on the list.

China has retained its second position despite a decline of one percent in its brand value to USD 6.3 billion. Brand Finance said it measures the strength and value of the nation brands of 100 leading countries using a method based on the royalty relief mechanism employed to value the world’s largest companies.

The nation brand valuation is based on five year forecasts of sales of all brands in each nation and follows a complex process. The Gross domestic product (GDP) is used as a proxy for total revenues.
The report also said that India’s ‘Incredible India’ slogan has worked well, while Germany suffered due to the Volkswagen crisis. About the US, the report said it remains a powerful brand with an inviting business climate.

“However its value comes in large part from the country’s sheer economic scale… The US’ world-leading higher education system and the soft power arising from its dominance of the music and entertainment industries are significant contributors too. This soft power will help the US to retain the most valuable nation brand for some time after China’s seemingly imminent rise to become the world’s biggest economy,” it added.

The study further said that China’s recent stock market turbulence and slowing growth will also extend the US’ tenure of the top spot. Among the BRICS nations, India is the only country to have witnessed an increase in its brand value with all others – Brazil, Russia, China and South Africa – seeing a dip in their respective brand valuations.

India is the second most valued among these emerging economies after China, followed by Brazil, Russia and South Africa.

(Source – Assorted with the Inputs from PTI)

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Coal India’s production continues to rise on the back of better co-operation with coal-bearing states in ac-quiring land and faster forest and environment clear-ances obtained by the company in last the 12 months.

The PSU’s coal production recorded a 12 percent jump in the April-June quarter over the same period last fiscal. Its production had grown by more than 7 percent to 494 million tonnes (MT) for FY-15, the highest growth in four-decades. This performance was a welcome departure from the nearly flat pro-duction growth of 3-4 percent recorded by the com-pany over the previous five years.

The turnaround in production for this state-run behe-moth has been grounded in its ability to negotiate purchase of land and environment clearances. In the last 12 months, the company has been able to ac-quire nearly 2,000 hectares of land contiguous with mines which has helped it start nearly one mine every month. Additionally, the miner also managed to secure 41 clearances related to forest and environ-ment, an impediment that has significantly impacted CIL’s production in the past.

As per CIL’s internal report, the coal miner had 192 pending forest and environment related application at state and centre level for its 56 ongoing projects till August last year.

Due to pending clearances, the ongoing projects were only producing 130 MTPA as against a capacity of 271 MTPA. These pending approvals had also held back the company from taking possession of over 30,000 hectares of land crucial for mining at full po-tential.

“A team of top coal ministry officials has visited each coal-bearing states at least thrice to sort out issues as bulk of the land acquisition problems exist on the level of state governments. These visits and consulta-tions with top officials from the respective state gov-ernments have borne results,” a top coal ministry of-ficial told FE. He added that coal ministry’s approach to solving seemingly intractable issues in acquiring land could well be a template for other ministries as well.

The increased production is also manifested in the coal-stock position of the thermal power plants. From a situation in June last year when nearly half of the 100 coal-based power plants had less than 8 days of coal or were in critical condition, the number of critical plants has reduced to just 4 on Wednesday (July 29), as per the data made public by the power sector planning wing Central Electricity Authority (CEA).

“On an average, the coal-based plants have 20 days stockpile of fuel and even with monsoon months looming when evacuation becomes a problem, we are comfortably placed to generate power,” the offi-cial added.

While CIL looks good to achieve the production tar-get of 550 MT for FY 16, the more daunting challenge of achieving 1 billion tonnes production by 2019 would require 3 critical railway projects to enable evacuation of 300 million tonnes of coal.

Coal India along with Indian Railways and respective state governments in the coal-bearing states have finished the necessary paperwork to form joint ven-The JVs have also identified nearly 60 railways siding projects, which are 10-15 km of tracks branching out from the main line, the official cited above said.

He added that one of the three lines – Jarsuguda-Barapalli in Odisha – will be operational by July 2016. The other two lines namely Tori-Shivpur-Kathotia in Jharkhand and Kharsia-Korichapar-Dharamjaigarh line in Chhatisgarh are expected to become opera-tional by the end of 2017.

(Source – The Financial Express, 03-August-2015)
The underlying import drivers for India are of such strength that India will become the largest seaborne thermal coal market in the world in 2015.

This is according to commodities pricing expert and forecast company CRU Group’s managing consult-ant Mr. Alex Tonks who says that electricity short-ages in India are one of the biggest constraints on the country, and electrification is a key objective of the Mr. Modi government.
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The aggressive targets that the government has set in this area mean that Indian electricity generation is expected to grow at one of the strongest rates of any country in the world - indeed, analysis in CRU's lat-est Thermal Coal Market Outlook shows a staggering growth rate for electricity production of 46.8 percent between 2014 and 2019.

Demand growth potential in India remains huge due to a combination of a growing population, wealth and electricity share within primary energy, as well as unmet demand. The majority of this growth will come from coal-fired plants, which will contribute around 80 percent of all new generation, despite de-lays in the construction of the Ultra Mega Power Plant projects.

Coal will remain India's most dominant fuel source, with imports required to meet demand
CRU assesses that coal will continue to play a domi-nant role in India's energy mix, despite the nuclear, hydro and renewable pushes taking place. This is be-cause of coal's ability to keep up with the surging de-mand needs of the country which has seen it gain market share to date, and will see it hold on to that share moving forwards.

On the domestic front, a number of years of less-than-spectacular production growth has failed to keep up with power consumption growth, and, in turn, this has caused a significant increase in and reliance on imported thermal coal.

While Mr. Modi’s government has stepped up plans to increase domestic coal production and power gen-eration - the reallocation of domestic coal blocks, in-teraction with labor unions and the approval of for-est clearances are all signs the government is willing to push ahead with domestic output growth.

CRU maintains the view that, unless there are seismic changes in Indian policy and red and green tape, we are not as optimistic as the government's domestic coal production targets. In conjunction with research conducted by CRU's Mumbai office, we estimate In-dian domestic coal output to be 599 Mt in 2015, with a CAGR of 4.8 percent between 2013 and 2019.

(Source – Mining Review.com, 17-June-2015)
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