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www.cmpdi.co.in Central Mine Planning and Design Institute Ltd. UNITED NATIONS FRAMEWORK CLASSIFICATION OF COAL RESOURCES UNDER CIL

Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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Page 1: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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Central Mine Planning and Design Institute Ltd.

UNITED NATIONS FRAMEWORK CLASSIFICATION OF COAL RESOURCES UNDER CIL

Page 2: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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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

Page 5: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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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

Page 11: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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UNITED NATION FRAMEWORK CLASSIFICATION

Page 12: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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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<12% (PR Prepared mines)

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

E3 Neither a feasibility study nor a pre-feasibility study has been conducted and only the results of a geological study are available - Intrinsically economic resource

No feasibility study

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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

Page 18: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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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 has been made and found potentially economic.

2. In our case the losses during mining operation has been included in this category & can be computed by deducting the estimated mineable reserve from the geological reserve considered in PR.

222 The resource is G2 category, pre-feasibility study (F2) has been made and found potentially economic (E2).

331 The resource is of G1 category, no study has been made but GR is available & hence economic criteria not determined (E3).

332 The resource is of G2 category, no study has been made & economic criteria not determined.

333 The resource is of G3 category , no study has been made & economic criteria not determined

Page 21: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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Coal Resource (Billion Tonne) Coal Reserve (Billion Tonne)

U N F C Code

333 332 331 222 221 211 Total 122 121 112 111 Total

2.56 16.10 29.43 0 11.81 2.82 62.71 0 0 0.023 18.18 18.21

No study has been made

No Prefe study CIL

Loss Potent. Econo

No Pre-feab study done in CIL

Indicated Reserve

Coal Resources & Reserves under CIL as per UNFC Classification

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THANKS

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LIMITATION

Coal which cannot be mined economically as per present study, termed as ’Coal Resource’ & not included in ‘Coal Reserve’

Balance mineable coal of running mines, at present incurring losses – included in the category of ‘Coal Resource’ although still winning

Coal lost during mining (both under ground and open cast) and left in-situ - part of ‘Coal Resource’ (categorized as UNFC Code 2,2,1) - majority of it may not be possible to win in future

Geological Reports are not available for some old mines (taken

over from private owners during nationalization) - Project Reports not prepared for these mines – Based on assessment from Regional Institutes

Page 24: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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COAL RESERCES AS PER ISP (Figures in Million tonne)

Category All India (As per GSI, as on 01.04.2012)

Proved 118144.82

Indicated 142168.85

Inferred 33183.48

Total 293497.15

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BALANACE COAL RESOURCES OF CIL (as on 31.03.2012)

Category Balance Reserve (Million tonne)

Proved 62236.23

Indicated 16119.28

Inferred 2561.91

Total 80917.42

Page 26: Central Mine Planning and Design Institute Ltd.... As per Indian Standards Procedure (ISP) the coal resources are classified into: Proved: The coal resources of an area falling within

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Balance Reserve of CIL (As on 31.03.2012) (In Million tonne)

62236.23

16119.28

2561.91

Proved Indicated Inferred