COAL INDIA LIMITED
THE BIGGEST ENERGY PROVIDER IN
INDIA
N C JHADirector (T), CIL
Coking
6.8%
Non Coking
93.2%
Coal Industry in India
Total resources : 267 BT
Proved : 106 BT
Indicated/inferred: 161 BT
88% of production from opencastmines; 12% from undergroundmines
Coal present in 14 out of 28 states
Indian coal contain generally highash, (4500 GCV) & low sulphur
No longer a regulated industry
Coal Production and ImportsTypes of Coal Produced in India
Coal Reserves in India
India
China
Pakistan
Myanmar
Nepal Bhutan
Sri Lanka
Coalfields
India
China
Pakistan
Myanmar
Nepal Bhutan
Sri Lanka
Coalfields
323.5 343.4360.9 379.5
403.7
59.163.6
69.977.6
89.3
29.038.6
43.149.8
59.0
411.6445.6
473.9506.9
552.0
200
300
400
500
600
2004-05 2005-06 2006-07 2007-08 2008-09
Co
al
Pro
du
cti
on
/ I
mp
ort
s (
MT
)
CIL Others Imports
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1774 Start of Coal Mining in India
1900 Coal Production 6.12 mts.
1920 Coal Production 18 mts.
1942 Coal Production 29 mts.
1946 Coal Production 30 mts.
1947 Advent of Independence
.
1956 Setting up of NCDC a Govt. UT
1956 Takeover of SCCL mines by Govt.
1972 Nationalisation of coking
coal mines
1973 Nationalisation of
non-Coking coal mines
493 mts
The Growth of Indian Coal Industry
6.12mts
.80.93mtsSystematic Mining
2008-09
Company Overview
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83
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Vast Scale and Operations
Largest coal company in the world
Produced over 403 MT in FYE Mar2009
82% market share in India
Over 400,000 employees
Reserve base ~ 70bn tonnes
Meets 45% of Indias primarycommercial energy requirement
Net Revenues of over US$8 bn
Estimated PBT before pay revision~US$2.3bn, PBT as reported~US$1.2bn for FYE March 2009
100% owned by the Government ofIndia (GoI)
Awarded Mini-Ratna in Mar 2007,Nav-Ratna in Oct 2008 & SCOPEExcellence Award in 2009
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Eastern Coalfields Ltd
Bharat Coking Coal Ltd
Central Coalfields Ltd
Northern Coalfields Ltd
Western Coalfields Ltd
South Eastern Coalfields Ltd
Mahanadi Coalfields Ltd
Central Mine Planning & Design
Institute
North Eastern Coalfields
(A Unit Under CIL HQ)
CIL Subsidiaries
Exchange rate of 48.39 INR/USD5
Presence Through the Value Chain
EXPLORATION
COAL MINING
BENEFICIATION
473 mines owned: 279 UG ,163 OC , 31 Mixed Production in 2008-09 was 359MT from OC and 44MT from UG SCCL and TISCO are the other main players in coal mining ~200 blocks allotted to private operators for captive mining
Operates 17 washeries - 12 coking (22.18 MTY) and 5 noncoking (17.22MTY)
Decision taken to supply beneficiated coal to all non Pit Head consumers 20 new washeries (18 under BOM-105.10 MTY, 2 under Turn Key-6 MTY)
being taken up for construction as Public-Private-Partnership.
Carried out in two stages: Regional and Detailed In 2008-09, 0.27 Mm of drilling has been achieved Action initiated to enhance drilling capacity to 1Mm annually
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Strong Track Record of Growth
78.99
204.16
250.62279.65
379.46403.73
360.91
0
50
100
150
200
250
300
350
400
74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09
RAW COAL PRODUCTIONM
illi
on
To
nn
es
UNDERGROUND PRODUCTION
Mil
lio
n T
on
ne
s58.22
56.63
55.19
49.22
43.32 43.5443.96
40
50
60
74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09
Mil
lio
n T
on
ne
s
MANPOWER
598649
627463
519922
439343426077
671550
412350
400000
450000
500000
550000
600000
650000
700000
1.4.75 1.4.92 1.4.97 1.4.02 1.4.06 1.4.07 1.4.09
PRODUCTIVITY
0.58
1.40
1.86
2.45
3.543.79
4.09
0
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4
74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09
To
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es
PROJECTION & PLANNING
COMPANY
ACTUAL PROGRAMME
IX PLAN
(01-02)
X PLAN
(06-07)
XI PLAN
(11-12)
XII PLAN
(16-17)
CIL
(CAGR)
279.65
(2.22)
360.91
(5.23)
520.50
(7.60)
664.00
(5.00)
S.C.C.LTD 30.81 37.71 40.80 45.00
OTHERS 17.33 32.21 119.70 346.00
TOTAL
(CAGR)
327.79
(2.53)
430.83
(5.62)
680.00
(9.57)
1055.00
(9.18)
CILs GROWTH INPRODUCTION
X OVER IX PLAN XI OVER X PLAN
81 Mt (29%) 160 Mt (44%) (HIGHEST SO FAR)
COAL PRODUCTION TREND/ PROGRAMME (WG)
Mill T
Sustainable Strategic Initiatives
Enhancing Availability of Resources
EXPLORATION
Drilling targets increased 4x - Aiming to convert inferred andindicated category to proved category
Detailed drilling and projectisation of coal blocks allocated to captive blockowners.
Systematic exploration to arrive at reliable estimate of coal reserves Application of IT to create geo database
NEW PROJECTS
FOREIGN ACQUISITIONS
Acquiring coal resources abroad through equity stake in working or greenfield projects - Acquired 2 virgin coal blocks in Mozambique
Global EOI floated for selection of strategic partners for overseasoperations
134 new projects for ultimate capacity of 309 MTy identified - 34 UG, 100OC
Setting up 20 washeries with a capacity of 111.1 MTy
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Ensuring Accessibility of Resources
OC MINING
UG MINING
Computer-aided mine planning for deeper OC mines Deploying high capacity equipment to achieve economy OITDS for efficient fleet management State-of-the-Art Mass Production Technology
Tapping large reserves below 300m depth 7 UG Greenfield properties being developed 18 abandoned mines (1600 MT) identified for development
HIGHWALL MINING
Mining of good quality thin seams Recovery of good quality coal in OC mines beyond economic stripping ratio.
CBM/UCG
Recovery and commercial utilization of CBM from deep seated seams Underground coal gasification of deep seated seams
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ENVIRONMENTAL POLICY OF COAL INDIA
COAL INDIA CARES FOR ENVIRONMENT TAKING SUITABLE MEASURES
IN ALL ASPECTS OF THE ENVIRONMENT AS FOLLOWS:
Air Pollution Control
Water Management & Water Pollution Control
Noise Control
Control of Vibration, Noise & Fly Rock generation due to blasting
Mine Reclamation & Rehabilitation
Green Belt Development
Land Use Planning
Socio-economic Environment & Rehabilitation of mined out areas for PostMining Land Use
WITH DUE EMPHASIS ON SUSTAINABLE DEVELOPMENT
Extensive tree plantation programme is undertaken every year by the subsidiaries of Coal India.
Avenue plantation, plantation on the OB dumps, plantationaround mines, residential colonies, available land isundertaken in existing as well as new projects.
Coal India planted over 70 millions of plants since 1993-94covering an estimated land area of around 28300 hectares.
Coal India is committed to continue plantation which is apart of annual activities in each subsidiary.
Reclamation & Plantation
All 171 OC projects have been identified.
49 projects excavating more than 5 Mm3 (Coal+OB) perannum will be monitored once a year.
122 projects excavating less than 5 Mm3 (Coal+OB) per annumwill be monitored once in 3 years.
Out od 49, Surveillance for 35 projects excavating more than 5Mm3 per annum has been completed under first 100 DaysProgramme of Ministry of Coal, Government of India.
Remaining 14 projects are also being covered this year.
CIL in Satellite Surveillance:
Study reveals that in all OC projects, plantation area, green coverage and backfilled area have increased.
In Singrauli Coalfield, NCL, area of plantation has increased from57.25 sq. km (2000) to 69.30 sq. km (2005)
In Wardha Valley Coalfield, WCL, area of plantation has increasedfrom 11.48 sq. km (2005) to 14.05 sq. km (2008)
In Korba Coalfield, SECL, in Gevra & Dipka OCPs combined,plantation area increased from 2.99 sq. km (2003) to 7.75 sq. km(2008)
In North Karanpura Coalfield, CCL, in Ashoka & Piparwar OCPscombined, plantation has increased from 5.06 sq. km (2006) to5.64 sq. km (2008)
Salient Findings
YEAR 2007 YEAR 2008
LAND USE/ COVER MAP OF NIGAHI OCP BASED ON SATELLITE DATA OF 2008
31 Projects have been accredited for ISO: 14001 certification. Company wise break up:
CCL : 3
MCL : 5
NCL : 8
SECL : 3
WCL : 12
Mining Projects : 29
Central Workshop : 1
Coal Preparation plants : 1
ISO: 14001 certification:
Performance of CIL is continuously improving quantitatively and qualitatively.
CIL had been conferred the Navratna status in October 2008.
CIL conferred with 'CEO with HR Orientation' award by Council of World HRD
Congress during Global HR Excellence Awards Ceremony 2010.
CIL won the SCOPE Gold Trophy 2007-08 (Institutional category) for Excellence
and Outstanding Contribution to Public Sector Management.
CIL adopted several cost effective measures like manpower restructuring,
extensive use of computers, introduction of ERP-SAP, advance training to
employees to increase the learning ratio, increasing the adaptability with high
tech environment etc.
CIL is committed to follow the International Financial Reporting
Standards (IFRS).
CIL is looking for foreign collaboration to bring in proven technologies and
advance management skill.
Coal India is going for IPO:
IPO proposed in August 2010.
Public offering in Book Building: 10%
Employees Reservation: 1-2% (Provisional)
Future Land Losers: 2% (Provisional)
In deregulated environment, market is the best judge for
performance and market discounts all past and future
events, CIL is confident to get a high value quote in the
secondary market.
Initial Public Offer
As a part of liberalization process, CIL is going for proposed
disinvestments through Initial Public Offer (IPO).
As per NCDP, Coal India is required to meet the requirement of coal of
the country, if required, even by import.
Demand from works out to 721 Mte in 2011-12 against projected
production of 487 Mte leaving a gap of 235 Mte. This gap is to further
increase at 305 Mte in 2012-13.
Coal India has taken initiatives for Strategic Alliance with overseas
producers for augmenting availability of coal.
Coal India has also been taking initiatives for acquiring overseas
properties.
Coal India has been mandated by the Planning Commission to import 8
Mte of coal for utility sector, out of total import target of 35 Mt in the
next fiscal.
CILs venture for coal import
CIL will be required to bring 65% of the import in East Coast Port and
the remaining 35% in Western Coast.
Major initiatives have also been taken for upgrading infrastructures at
major Government ports at Vizag in east and Kandla in west coasts.
CIL is contemplating to be associated with this infrastructure building
exercise.
Dedicated Freight Corridor (DFC) of Indian Railway system, likely to be
operative from the middle of 12th Plan would also enhance hinterland
logistics capability.
CIL is contemplating following process for importing coal: