Mining & minerals

My Business / Mining & Minerals

Coal Mining

EMIL expanded its mining portfolio in 2010 by diversifying into coal extraction as a Mine Developer cum Operator (MDO) by bagging the prestigious Bhubaneswari OCP from MCL with peak coal volume of 20 MTPA and OB volume of 15 MCuM. In 2012, EMIL bagged Rajmahal Expansion OCP contract from ECL with peak production levels of 17 MTPA coal and OB volume of around 13 MCuM.

Following the diversification of the coal mining business, Government of India invited private industry players to bridge the coal production deficit. When EMIL was awarded the Bhubaneswari open cast project, now the largest coal mine in Odisha, under Mahanadi Coalfields Ltd. (MCL), it became the country’s first MDO.

More recently, EMIL won the bid for Mahan Coal block which is jointly owned by Hindalco (another Group company) and Essar Power and has peak coal volume of 8.5 MTPA and peak Over Burden volume of around 51 MnCuM. Through its subsidiaries Bhubaneswari Coal Mining Limited (BCML) in Odisha and Rajmahal Coal Mining Limited (RCML) in Jharkhand, the company currently operates two projects: Bhubaneswari Coal Mine and Rajmahal Coal Mine, which have propelled EMIL to become the country’s largest MDO. EMIL established itself as the largest private sector MDO in India.

What does an MDO contractor do?
We cover a full range of activities from land acquisition, R&R, and mine planning, to the development, operation of mine and coal extraction to coal transportation up to the loading silo on behalf of the mine leaser or owner. In return, they pay a contractually fixed mining fee on per tonne of coal and/or OB basis to the MDO.

Bhubaneswari Coal Mines Ltd (BCML) operations commenced in November 2011. Since then, BCML has surpassed the targets given by MCL every year. In its first full year of operation, BCML produced 11.44 Mn Te of coal and was recognised for the fastest ramp up of coal production in Indian coal mining history.

BCML has grown its coal production and achieved the peak rated capacity a year ahead of schedule. Contractually, it is expected to produce 269.5 MnTe of coal over 15 years. Its contribution to MCL’s growth in terms of volume and profit has been applauded by the coal mining fraternity and MCL authorities.

Graph depicts BCML’s stellar performance year-wise in coal production
BCML’s operations have streamlined operations management, enhanced efficiency, optimised resources, and prioritised environment, health & safety (EHS).

Rajmahal Coal Mines of Eastern Coalfields Ltd (RCML) is located in Godda District in Jharkhand and has been operating open cast mines since 2013. The mining operation is expected to produce 200 Mn Te of coal over 12.5 years. The coal production figures are as follows:

OB removal is undertaken with state-of-art HEMM, including those using ACERT technology engines for fuel conservation and minimising emissions. A surface miner was introduced for the first time in the Rajmahal OCP to improve quality parameters of coal.

Successful dove-tailing of the conveyor system was completed with ECL CHP without disturbing the existing structures of the ground bunker. A 4 km long in-pit conveyor was installed for the transportation of +0 – 100 mm crushed coal directly from the pit to the ground bunker of the ECL, with an advanced blasting method to minimise the environmental impact on surrounding areas. In accordance with rules and regulations, the mined areas have been restored and reclaimed after becoming available for backfilling.

Bunder Diamond Project

Essel Mining & Industries Limited (EMIL) participated in the auction process of the Bunder Diamond Block (Mining Lease) in Madhya Pradesh’s Chhatarpur District and won the block through competitive bidding. The Government of Madhya Pradesh issued a Letter of Intent to Grant a Mining Lease to EMIL in December 2019.

The Bunder Diamond Block is a 364-hectare greenfield mining project in the Buxwaha Protected Forest, near the village of Sagoria in the Buxwaha Tehsil of Madhya Pradesh’s Chhatarpur District. The project is located approximately 80 kilometres from Chhatarpur, the district headquarters, and 260 kilometres from Bhopal, the state capital. The existing NMDC diamond mine is approximately 175 kilometres from Bunder. M/s Rio Tinto Exploration India Private Limited has investigated the project (one of the largest mining company in the world). The block’s estimated resources are around 53.70 million tonnes of Kimberlite ore containing approximately 34 million carats of rough diamonds.

With an investment of around INR 2500 Cr, EMIL intends to develop a fully mechanised opencast mine and state-of-the-art processing plant for diamond recovery. Once operational, the project has the potential to become one of the largest diamond mines in the Asian region. EMIL is currently in the process of obtaining various regulatory clearances, such as Mine Plan approval and Environment and Forest clearances required for mining lease execution. The company intends to execute the Mining Lease by the end of FY22, after which it will begin mine development and plant construction activities.