Central Mine Planning and Design Institute Ltd. ... As per Indian Standards Procedure (ISP) the coal

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Text of Central Mine Planning and Design Institute Ltd. ... As per Indian Standards Procedure (ISP) the coal

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    Central Mine Planning and Design Institute Ltd.

    UNITED NATIONS FRAMEWORK CLASSIFICATION OF COAL RESOURCES UNDER CIL

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     INTRODUCTION

     Systematic exploration coal in India started about 65 years back, sometime in the year 1945

     Coal did not play a leading role in the country’s economy for long.

     No attempts were made to standarise the related terminology and resource classification till late nineteen fifties.

     The Committee on Assessment of Resources (CAR) under Coal Council of India (1956) drew up Indian Standard Procedure (ISP) for Coal Reserve Estimation in 1957

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     No administrative and statutory structure Identified.

     Only Government agencies adopted ISP.

     Planning Commission Set up a Task Force on Coal and Lignite (1972) to arrive at estimate of coal resources of the country, for the first time, on the line of ISP.

     GSI brought out the coal resource inventory of the country

    in 1976,1978, 1984, 1986 and annually thereafter.

    INTRODUCTION

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     STAGES OF EXPLORATION AND ISP

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    As per Indian Standards Procedure (ISP) the coal resources are classified into:  Proved: The coal resources of an area falling within 200 m

    radius from a borehole point (or observation point).

     Indicated: Those resources occurring in the area falling between radii of 200m and 1km from a borehole point.

     Inferred: Those resources occurring in the area falling between radii of 1km and 2km from a borehole point.

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     The Inventory represents only the volume and tonnage available in the ground without any connotation of its mineability and economics of mining it.

     Committee on Assessment of Coal Resources, reconstituted by the Coal Controller of India in May’1981, did indeed incorporate the criterion of economic mineability for classifying coal “reserves” out of all coal “resources”.

     It, however, did not structure the classification system accordingly and these proposals were, in any case, not implemented.

    Indian Standard Procedure for Coal Resource Classification

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     The government of India decided in the year 2000 to adopt the United Nations Framework Classification for its mineral Resources/Reserves.

     In December’2001 a conclave of serving and retired senior technical officials of the Indian coal industry held at Delhi at the instance of the Ministry of Coal (MoC), organized by CMPDI underlined the need for UNFC classification of coal resources in the country.

     The Sub-Group II of the Working Group on Coal and Lignite of the MoC also proposed funding for a five year project for creation of coal resource data base on the lines of UNFC

    Indian Standard Procedure for Coal Resource Classification

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     UNITED NATION FRAMEWORK CLASSIFICATION

     It consists of a three dimensional system with three axes: Economic viability (E), Feasibility Assessment (F) and Geological Assessment (G)

     The UNFC system has obvious advantage of providing a

    ready and well defined picture of coal occurrences for investments and exploitation

     The coal reserves/resources of CIL have been codified (01.04.2012) as per UNFC -2004 following the guidelines issued by Controller General of Indian Bureau of Mines

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    Classification of Coal Resources/Reserve under CIL as per UNFC

    UNITED NATION FRAMEWORK CLASSIFICATION

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     The coal reserves/resources of CIL have been codified (01.04.2012) as per UNFC -2004 following the guidelines issued by Controller General of Indian Bureau of Mines

     Geological Assessment in UNFC is more or less like the classification as per ISP.

     The reserve/resources classified as per ISP may be

    directly mapped to different categories of geological axis under UNFC.

    UNITED NATION FRAMEWORK CLASSIFICATION

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     UNITED NATION FRAMEWORK CLASSIFICATION

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     GEOLOGICAL ASSESSMENT (G)

    Four stages of geological assessment are represented by the following 4 category/ codes:

    Category Definition CIL Definition

    G1 Quantity of known deposit - estimated with high level of confidence

    Proved reserve as in ISP Classification

    G2 Quantity of known deposit - estimated with moderate level of confidence

    Indicated reserve as in ISP Classification

    G3 Quantity of known deposit - estimated with low level of confidence

    Inferred reserve as in ISP Classification

    G4 Quantity of a potential deposit based primarily on indirect evidence (Reconnaissance)

    Not done for CIL Blocks

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     FEASIBILITY ASSESSMENT (F)

    Three stages of feasibility assessment are represented by the following 3 category/ codes:

    Category Definition CIL Definition

    F1 A Feasibility Study assesses 1. Detail the technical soundness 2. Economic viability of a mining project 3. The basis for the investment decision 4. A bankable document for project financing

    Project report prepared

    F2 A pre-feasibility Study provides 1. A preliminary assessment of the Economic

    viability of a deposit 2. The basis for justifying further investigations.

    Normally not carried out

    F3 No feasibility study and only GR is available . No Project Report but only GR

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     ECONOMIC ASSESSMENT (E)

    Three stages of economic assessment are represented by the following 3 category/ codes:

    Category Definition CIL Definition

    E1 Feasibility or pre-feasibility study shows that the deposit can be profitably mined under the present economic, technological and political conditions - Deposit is economic reserve

    1. IRR>12% (PR Prepared mines)

    2. Incurring profit (For mines whose PR has not been prepared)

    E2 Feasibility or pre-feasibility study finds that the deposit or part of it can not be mined profitably at present - Deposit is Potentially economic resource

    1. IRR

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     Coal Reserve: defined as 1. Can be extracted economically either from proved

    (G1) resource or from indicated (G2) resource 2. After assessing its viability through either

    preparation of PR (F1) or Pre-feasibility study (F2).  Thus the codes for Reserves under UNFC can be 111,

    121, 112, 122.

    COAL RESERVE UNDER CIL AREAS

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     Coal Resource: defined as 1. Resources for which no study has been made

    (333, 332, 331) 2. Resources which can not be extracted

    economically as on date (after preparation of PRs / Feasibility Studies) (211, 222)

    3. Resources which ire currently being extracted incurring loss (211)

    4. Coal lost during mining operation (221, 222)

    COAL RESERVE UNDER CIL AREAS

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     Coal Resource: defined as 1. Resources for which no study has been made

    (333, 332, 331) 2. Resources which can not be extracted

    economically as on date (after preparation of PRs / Feasibility Studies) (211, 222)

    3. Resources which ire currently being extracted incurring loss (211)

    4. Coal lost during mining operation (221, 222)

    COAL RESERVE UNDER CIL AREAS

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     Coal Reserve 1. Proved Mineral Reserve (111) 2. Probable Mineral Reserve (121, 112 & 122)

     Coal Resource 1. Feasibility Mineral Resource (211) 2. Prefeasibility Mineral Resource (221 & 222) 3. Measured Mineral Resource (331) 4. Indicated Mineral Resource (332) 5. Inferred Mineral Resource (333)

    TERMS AND CODES IN UNFC (as applied in CIL)

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     RESERVES UNDER CIL AS PER UNFC

    Code Code Description A. Coal Reserve

    111 1. The resource is of G1, feasibility study (F1), economically

    viable (E1) category 2. The balance Mineable Reserve (excluding that of losing

    mines) as on date will be in this category

    112 The resource is of G2, feasibility study (F1) and economically viable (E1) category

    121 1. The resource is of G1 and pre-feasibility study (F2)

    category. 2. But, it indicates that the exploitation will be economic

    122 The resource is of indicated (G2) and pre-feasibility study (F2), Economic (E1) category

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     B. Remaining Resource

    211 The resource is of G1 category, feasibility study (F1) has been made and found potentially economic (E2).

    221

    1. The resource is of G1 category; pre-feasibility study