Coal Mining in India

Piers Fennell
Derek Wilson
 HISTORY OF INDUSTRY

HEALTH & SAFETY ISSUES

ENVIRONMENTAL ISSUES

FUTURE OF COAL IN INDIA

 History - Timeline
• First Indian mining operations begun in 1774.

• Development of steam engine in 1850’s spurred

coal demand.

• World War I created another surge in demand.

• National Coal Development Corporation (NCDC)

– 1956 formed.

• Steel industry growth in 1950’s and 1960’s sent

coal demand to all time highs.
 History Cont’d
• Demand from steel industry led to significant
private investment in mining, mostly for
coking coal.

• Growth in private mining led to following

comment by then Minister of Steel and Mines:

“Rampant corruption, forced labour, dubious and duplicate

records, under reporting of production, non-payment of full
wages, extended hours of shift without payment of lead or
lift, lack of safety and welfare measures…seemed to be the
guiding principles of a large number of private collieries…”

• Nationalization of the industry.

– Coking Coal Mines Nationalization Act of 1972
– Coal Mines Nationalization Act of 1973
– Coal India Ltd
 Coal India Limited
• Government–owned entity which owns and operates India’s mines.
• Under Ministry of Coal.
• 8 mining subsidiaries, 1 mine siting and planning subsidiary.

Source: Coal India LTD.

 Coal India Limited
• World’s largest coal mining company.
• Responsible for approximately 85% of
total Indian production.
– 324 million tons in 2005.

1) Eastern Coalfields LTD

2) Bharat Coking Coal LTD
3) Central Coalfields LTD
4) Central Mine Planning
5) Northern Coalfields LTD
6) South Eastern Coalfields LTD
7) Western Coalfields LTD
8) Mahanadi Coalfields LTD
9) North Eastern Coalfields

Source: Coal India LTD.

 HISTORY OF INDUSTRY

HEALTH & SAFETY ISSUES

ENVIRONMENTAL ISSUES

FUTURE OF COAL IN INDIA

 Health & Safety Issues
Year Fatal Accidents Serious Accidents
• Key risks faced by miners:   Accidents Fatalities Accidents Injuries

– Gas and coal dust exposure. 1972 200 217 1534 1616

– Mine roof and wall collapses. 1975 222 664 2135 2211

1985 176 204 1007 1060

– Mine fires.
1993 156 176 854 903

1994 156 241 717 775

• Fatal and serious accidents have steadily 1995 137 219 757 813

deceased since 1972 (see table). 1996 131 146 677 723

1997 143 165 677 725

1998 128 146 523 560

• Between 1950-1961 the 10-yearly avg. death

1999

2000
127

117
138

144
595

661
650

707
rate per 1,000 people employed was 0.91. 2001 106 141 667 720

Between 1991-2000, figure dropped to 0.32. 2002 81 97 629 650

2003 83 113 563 578

– Nationalization in 1970’s.
2004 90 99 599 608
– Technological advancements, specifically the 2005 34 35 340 344
mechanization of many tasks in the mining process
(i.e. mechanized roof bolting system, long wall Source: Government of India, Ministry of Coal.
miners, etc…).
 Mines Act of 1952
• Key piece of Indian legislation that regulates health, safety, and
welfare of miners.

• Administered by Directorate General of Mines Safety (DGMS).

– Falls under control of Ministry of Labour
– DGMS mission:

“Reduction in risk of occupational diseases and casualty to persons employed in mines, by

drafting appropriate legislation and setting standards, by overseeing compliance thereof and
through a variety of promotional initiatives and awareness programmes creating an
environment where safety is given due priority.”

• Among issues covered by the Mines Act are the following:

– Appointment of Chief Inspector.
– On-site medical care.
– Sufficient potable water within mines.
– Timely reporting of accidents to Chief Inspector.
– Right of government to appoint of court of enquiry to look into accidents.
 HISTORY OF INDUSTRY

HEALTH & SAFETY ISSUES

ENVIRONMENTAL ISSUES

FUTURE OF COAL IN INDIA

Key Environmental Legislation

• Water Prevention and Pollution Control Act, 1974 (1988)

• Forest Conservation Act, 1980

• Air Prevention and Pollution Control Act, 1981

• Environmental Protection Act, 1986

• Mineral Conservation and Development Rules, 1957 (1987)

• Mineral Conservation and Development Rules, 1988

 Water Prevention and Pollution
Control Act, 1974 (1988)
• Initiated the Pollution Control Boards and the Central Pollution
Control Board.

• Power of entry and inspection in industrial establishments and

authority to take samples.

• Empowered to set standards of effluents that may be discharged

into water sources.

• Power to impose penalties for contravention of provisions.

 Forrest Conservation Act, 1980
• Legislation enacted to check deforestation.

• Prohibits use of forest land for non-forest purposes (including

mining) without prior approval of the Central Government.

• Reforestation or compensatory reforestation is primary condition for

approval of proposals for diversion of forest land.
Air Prevention and Pollution Control
Act, 1981
• Act enjoins industry not to discharge emissions of any pollutant in
excess of standards established by State Board.

• Establishes power to inspect and collect samples and vests power

with the Central and State Pollution Control Boards.
Environmental Protection Act, 1986
• Act widens scope of environmental protection activities of Central
and State Boards.

• Prohibits all pollution in excess of standards set by State Board.

• Requires mandatory environmental audits.

• Prohibits expansion or modernization of any existing industry or new

projects without prior environmental clearance by the Central or
State Government.
 Mineral Conservation and
Development Act, 1957 (1987)
• Act gives Government power to prevent a licensee or lease holder
from damaging the environment.

• Act gives the Government power to require rehabilitation of

vegetation, trees, and shrubs destroyed by prospecting or mining.

• Requires a mining plan to be submitted with an environmental

management plan.
 Mineral Conservation and
Development Rules, 1988
• Rules administered by the Indian Bureau of Mines, a department of
the Central Government under the Ministry of Mines.

• Requires every mining operation to be in accordance with a mining

plan.

• Requires review of approved mining plans every 5 years.

• Requires every mine operator to take all possible precautions for

protection of environment and control of pollution while conducting
any mining activities.

• Requires that the air, water, and noise pollution levels are within the
permissible limits.
 Major Environmental Concerns
• Air Quality

• Water Regime

• Impact on Land
 Air Quality
• Methane and Suspended Particulate Matter.
• Mine Fires and the Combustion of Coal produces Carbon Dioxide,
Sulfur Dioxide, and Nitrogen Oxide.
 Water Regime

• Water Table Lowered and Water Waste.

• Acid Mine Drainage (AMD).

– Water + Sulphide Minerals = AMD.
• Water Contamination.
• Disrupts growth and reproduction of aquatic plants and animals.
• Kills fish.
• Corrosion of mining equipment and structures, such as barges, bridges, and concrete
materials.
 Impact on Land
• Large scale excavation.

• Removal of topsoil.

• Dumping of solid wastes.

• Creation of derelict land.

• Subsidence.

• Noise and vibrations.

 Pollution Mitigation
• Dust extractors on drilling • Land reclamation and
equipment. rehabilitation.

• Sprinkler systems. • Siltation ponds.

• Effluent Treatment Plants. • Removed topsoil utilization.

• Sewage Treatment Plants. • Stoping-in worked out mines.

 HISTORY OF INDUSTRY

HEALTH & SAFETY ISSUES

ENVIRONMENTAL ISSUES

FUTURE OF COAL IN INDIA

 Future of Coal in India
• Rapid population growth and skyrocketing demand for energy.

• 70% of coal consumption expected to be in electric power sector.

• In 2003, coal-fired power plants consumed 5.0 quadrillion Btu of

coal, representing 69% of India’s total coal demand.
 Future Energy Utilization
1999  (281 million tons of oil  2020 (716 Mtoe)
Equivalent "Mtoe") Hydro
Nuclear 2%
Nuclear
1% Hydro 1%
3% Gas
Gas
7% 16%

Oil Coal
33% 56% Oil Coal
34% 47%

Coal Oil Gas Nuclear Hydro Coal Oil Gas Nuclear Hydro

Source: International Energy Agency

 Future of Coal in India
• Coal use for electricity generation projected to grow by 2.7% per
year, to 10.3 quadrillion Btu in 2030.

• Coal-fired generating capacity projected to increase from 67 GW in

2003 to 161 GW in 2030.
 Coal to Oil
• Like China, India relies heavily on imported oil to meet demands.

• Coal-to-liquids (CTL) projects have yet to be developed in India.

• A CTL industry would represent a viable means of increasing oil

supply.

• Indian Oil Corporation is currently evaluating construction of an

80,000-barrel-per-day coal liquefaction facility.