minerales monclova s.a. de c.v. · minerales monclova s.a. de c.v. the potential of using vam at...

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Design, Operation, and Design, Operation, and Integration Integration of of Methane Methane Drainage Drainage Systems Systems at at Minerales Monclova S.A. de C.V.’s Minerales Monclova S.A. de C.V.’s Underground Coal Mines in Underground Coal Mines in Coahuilia, Mexico Coahuilia, Mexico Minerales Monclova S.A. de C.V. Minerales Monclova S.A. de C.V. Methane to Markets Ministerial Meeting Methane to Markets Ministerial Meeting November 15 November 15 17, 2004 17, 2004 Washington, DC Washington, DC

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Page 1: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Design, Operation, andDesign, Operation, and IntegrationIntegration

ofof MethaneMethane DrainageDrainage SystemsSystems atat

Minerales Monclova S.A. de C.V.’sMinerales Monclova S.A. de C.V.’s

Underground Coal Mines inUnderground Coal Mines in

Coahuilia, MexicoCoahuilia, Mexico

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Methane to Markets Ministerial MeetingMethane to Markets Ministerial Meeting

November 15November 15 –– 17, 200417, 2004

Washington, DCWashington, DC

Page 2: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

MineralesMinerales MonclovaMonclova OperationsOperations

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 3: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

MineralesMinerales MonclovaMonclova OperationsOperations

MineralesMinerales MonclovaMonclova S.A. de C.V. (MIMOSA):S.A. de C.V. (MIMOSA):

Coal Production:Coal Production: 5 Mt per Year5 Mt per Year

Product:Product: Metallurgical CoalMetallurgical Coal

Mining Method:Mining Method: 4 Underground4 Underground LongwallLongwall MinesMines

Depths:Depths: Less than 220 mLess than 220 m

Coal Seam:Coal Seam: Double Seam (Upper Cretaceous)Double Seam (Upper Cretaceous)

Conditions:Conditions: Gassy (High Permeability, High GC)Gassy (High Permeability, High GC)

CH4 Control Systems:CH4 Control Systems: Ventilation, PreVentilation, Pre--Mining Degasification,Mining Degasification,

and Gob Gas Drainageand Gob Gas Drainage

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 4: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Main PurposeMain Purpose of CMM Drainage:of CMM Drainage:

Page 5: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Control Through Mine VentilationControl Through Mine Ventilation

Principal Means of Controlling Underground EmissionsPrincipal Means of Controlling Underground Emissions

Exhausting Ventilation Systems at all MinesExhausting Ventilation Systems at all Mines

Dilutes Methane Concentrations to Permissible Limits (< 1% by voDilutes Methane Concentrations to Permissible Limits (< 1% by volume)lume)

Ventilation Systems Liberate more than 80 MmVentilation Systems Liberate more than 80 Mm33 of Methane per Yearof Methane per Year

Average Exhaust Methane Concentration: 0.5% Methane in AirAverage Exhaust Methane Concentration: 0.5% Methane in Air

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 6: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Reservoir Characterization and Numerical Models:Reservoir Characterization and Numerical Models:

Performed in 1989 on Adjacent Property by Resource Enterprises,Performed in 1989 on Adjacent Property by Resource Enterprises, Inc.Inc.

Direct Gas Content Tests Show High GC (>13 mDirect Gas Content Tests Show High GC (>13 m33/t)/t)

Injection Tests Indicate High Permeability (>30md, 180 meters deInjection Tests Indicate High Permeability (>30md, 180 meters depth )pth )

Numerical Modeling Indicates Benefits of InNumerical Modeling Indicates Benefits of In--Seam Boreholes Drilled in Advance of MiningSeam Boreholes Drilled in Advance of Mining

Pressure Test with PEMEX (3.9Pressure Test with PEMEX (3.9 mdmd, 300 meters depth), 300 meters depth)

Modeling Projections: 50% Reduction in InModeling Projections: 50% Reduction in In--Situ Gas Content in 1 Year, real 48%.Situ Gas Content in 1 Year, real 48%.

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

CoalbedCoalbedButt CleatButt Cleat

Matrix Blocks ContainingMatrix Blocks Containing MicroporesMicropores

Page 7: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Degasification with Long InDegasification with Long In--Seam Boreholes in Advance of Mining:Seam Boreholes in Advance of Mining:

Boreholes Reduce Gas Emissions During Gate Road DevelopmentBoreholes Reduce Gas Emissions During Gate Road Development

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 8: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Degasification with Long InDegasification with Long In--Seam Boreholes in Advance of Mining:Seam Boreholes in Advance of Mining:

Contractor Proves Benefit of Directionally Drilled Boreholes inContractor Proves Benefit of Directionally Drilled Boreholes in Double SeamDouble Seam

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

45 45 45 45

55

80

80 85

70

0

10

20

30

40

50

60

70

80

90

October November December January February March April May June

Months in 1994

Em

iss

on

/Air

flo

w/A

dv

an

ce

Ra

te

Advance Rate (10's of Meters Per Month)

Methane Emissions (1000's of Cubic Meters Per Day)

Airflow Rate (Cubic Meters Per Second)

500 m Borehole on Production

Page 9: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Degasification with Long InDegasification with Long In--Seam Boreholes in Advance of Mining:Seam Boreholes in Advance of Mining:

REI Drilling, Inc. Directionally Drills Over 26,000 m of InREI Drilling, Inc. Directionally Drills Over 26,000 m of In--Seam Boreholes in 4 MinesSeam Boreholes in 4 Mines

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Gate Entry ShieldsGate Entry Shields

Mine II: 1992Mine II: 1992--19981998

Lengths: 305Lengths: 305 -- 900m900m

Spacing: 150mSpacing: 150m

Page 10: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Underground Gas Collection:Underground Gas Collection:

Underground Pipelines Installed to Bring Gas to the SurfaceUnderground Pipelines Installed to Bring Gas to the Surface

Liquid Ring Vacuum Pumps Installed on SurfaceLiquid Ring Vacuum Pumps Installed on Surface

Methane is Vented to the AtmosphereMethane is Vented to the Atmosphere

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 11: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Additional Developments:Additional Developments:

Underground InUnderground In--Seam CrossSeam Cross--Panel Rotary Drilling Program with Acker MidPanel Rotary Drilling Program with Acker Mid--John DrillJohn Drill

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Page 12: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Drainage ExperienceMethane Drainage Experience

Additional Developments:Additional Developments:

Successful Implementation of Vertical Gob WellsSuccessful Implementation of Vertical Gob Wells

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Page 13: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

InIn--House Directional Drilling:House Directional Drilling:

Procured Refurbished Drill from REI Drilling, Inc. in 2004Procured Refurbished Drill from REI Drilling, Inc. in 2004

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.Acker Big John Drill, Capacity: 900 mAcker Big John Drill, Capacity: 900 m

Page 14: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

InIn--House Directional Drilling:House Directional Drilling:

REI Drilling, Inc. Provides Training to MIMOSA Engineers and FiREI Drilling, Inc. Provides Training to MIMOSA Engineers and FieldeldPersonnel Under Technology Transfer ProgramPersonnel Under Technology Transfer Program

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Page 15: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

InIn--House Directional Drilling:House Directional Drilling:

Wellhead Safety and Control, Drill Site Installation, TrainingWellhead Safety and Control, Drill Site Installation, Training

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Page 16: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

InIn--House Directional Drilling:House Directional Drilling:

Drill Operation, Directional Control, and Borehole Surveying, TrDrill Operation, Directional Control, and Borehole Surveying, Trainingaining

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Mule Shoe Alignment Slot

Muleshoe Stinger Spacer Bars Lower Centralizer

Steering Tool Feedthru Centralizer Cable Head Assy.

Tool Face Indicator

STEERING COMPASS

Tool Face Alignment Direction and Angle

Bent Housing

Alignment Key In Orienting Sub

(Aligned to Tool Face) Connection to

Accu-Steer Tool (Data to surface

computer via wireline conductor cable)

Connects to non-magnetic rods (shields Accu-Steer from magnetic interference)

Page 17: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

InIn--House Directional Drilling:House Directional Drilling:

Downhole Tool and Drill Maintenance, TrainingDownhole Tool and Drill Maintenance, Training

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Page 18: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

C. Banda DesarrolloC. Regreso Desarrollo

C. Banda DesarrolloC. Regreso Desarrollo

X° 9

X° 8

X° 7

C. BandaDesarrollo

C. RegresoDesarrollo

C. Regreso Contra-Ataque

C. Banda Cont ra-Ataque

X°6

X° 5

40

X°4

X°3

X° 2

X° 1

C. BandaDesarrollo

C. RegresoDesarrollo

C. Regreso Contra-Ataque

C. Banda Cont ra-Ataque

X°6

X° 5

X°4

X°3

X° 2

X° 1

X° 8

X°7

C. BandaDesarrollo

C. RegresoDesarrollo

C. Regreso Contra-Ataque

C. Banda Cont ra-Ataque

X°6

X° 5

X°4

X°3

X° 2

X° 1

Proyecto

Galerias

Mine No. 7X° 1

X° 2

X°3

X°4

X° 5

X°6

C. 1Poniente

2do. Aux.

C. 1 Poniente3e r. Aux.

C. 1Poniente

1e r Aux.C. 1

Poniente

C. 2Poniente

Aux.

C. 2Poniente

X° 7

X° 8

X° 9

X°10

X°11

X°12

Maquina # 4

Maquina # 2

Maquina # 1

X° 13

Maquina # 3

InIn--House Directional Drilling:House Directional Drilling:

Drilling Plans for Mine 7 Following TrainingDrilling Plans for Mine 7 Following Training

Page 19: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

CMM Use:CMM Use:

Volume Drained from Mine Esmeralda, Mine 6, 7, and 8Volume Drained from Mine Esmeralda, Mine 6, 7, and 8

Minerales Monclova S.A. de C.V.Minerales Monclova S.A. de C.V.

Longwall Panel

Gate

Roads

Underground Gas

Collection System

Vacuum Pump

Mines Drain currently over 5 MmMines Drain currently over 5 Mm33 per year (70,000 TCO2e)per year (70,000 TCO2e)

Average Concentration at Vacuum Pump is 60% Methane in AirAverage Concentration at Vacuum Pump is 60% Methane in Air

Page 20: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Recent DevelopmentsRecent Developments

CMM Use:CMM Use:

Generation of Heat for Mine Esmeralda Bath HouseGeneration of Heat for Mine Esmeralda Bath House

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

7.5 kW7.5 kW WellsiteWellsite Compressor Transports Gas to Boiler Via 38 mm PipelineCompressor Transports Gas to Boiler Via 38 mm Pipeline

System Capacity is Approximately 1,440 mSystem Capacity is Approximately 1,440 m33/day of Methane/day of Methane

Page 21: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Vacuum Pump

Gas Collection Well

H2

CO

CMM Power Plant

Heat

electricity grid

Methane Use OptionsMethane Use Options at MIMOSA Minesat MIMOSA Mines

In-Seam Directional Boreholes in Advance of Mining

Use of CMM from InUse of CMM from In--Seam Drainage and Gob Wells for Power Seam Drainage and Gob Wells for Power Generation:Generation:

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Courtesy of G.A.S. Energy

Page 22: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Use OptionsMethane Use Options at MIMOSA Minesat MIMOSA Mines

0.1

0.1

N/A

0.29

0.26

0.259

0.4

0.3

0.39

0.3

0.38

0.46

0.5

Average Discharge

Concentration (%)

0.5

0.3

0.1

0.3

0.4

0.05

0.7

2.6

2.8

0.07

0.8

7.1

0.2

Annual VAM Emissions Bm3 (2005)

7.0

4.5

2.1

4.7

5.7

0.8

10.5

37.5

39.8

1.0

10.8

101.6

2.2

Equivalent Annual

MMT CO2 (2005)

0.01South Africa

0.07India

0.03UK

0.018Kazakhstan

0.03Poland

0.0468Czech Republic

0.02Australia

0.03Ukraine

0.03EUA

0.065Germany

0.044Russia

0.035China

0.0475Mexico

Average Price of Power

US$/kWh Country

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

The Potential of Using VAM atThe Potential of Using VAM at MIMOSA’sMIMOSA’s Mines is High:Mines is High:

Page 23: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

Methane Use OptionsMethane Use Options at MIMOSA Minesat MIMOSA Mines

Use of VAM from Mine Ventilation Systems for Power Generation:Use of VAM from Mine Ventilation Systems for Power Generation:

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Reactor Converts Low Quality Methane to HeatReactor Converts Low Quality Methane to Heat

Courtesy of MEGTEC Systems

Page 24: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

FutureFuture Capacity CMMCapacity CMM

Phased Project toPhased Project to GenerateGenerate PowerPower forfor Self Use:Self Use:

Phase I:Phase I:

11 –– 1.3 MW Power Plant Fueled by CMM from the Esmeralda Mine1.3 MW Power Plant Fueled by CMM from the Esmeralda Mine

Phase II:Phase II:

Expand Esmeralda Project by 1Expand Esmeralda Project by 1 –– 1.3 MW1.3 MW

4 MW Power4 MW Power PlantPlant Fueled by CMM from Mine 7Fueled by CMM from Mine 7

5 MW Power5 MW Power PlantPlant Fueled by VAM from Mine 7Fueled by VAM from Mine 7

Phase III:Phase III:

5 MW Power5 MW Power PlantPlant Fueled by VAM forFueled by VAM for the Esmeralda Mine, 4 MW Powerthe Esmeralda Mine, 4 MW Power4 MW Power4 MW Power PlantPlant Fueled by CMM from Mine 8Fueled by CMM from Mine 8

ExpandExpand PlantsPlants BasedBased onon SupplySupply

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 25: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

FutureFuture Capacity CMM & VAMCapacity CMM & VAM

33

38

34

43 44

52

42

50

53 53

59

63 63

51 51

9 9 10

15 15

17

14

17 17 17 18 19 19

14 14

24

29

24

28 29

35

27

33

37 37

40

44 44

37 37

27.421

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

MW

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Power Generation Potential (CMM and VAM) ofPower Generation Potential (CMM and VAM) of MIMOSA’sMIMOSA’s Mines:Mines:

Page 26: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

KeyKey BarrierBarrier to Use of CMM in Mexicoto Use of CMM in Mexico

DrainageDrainage ofof the gas isthe gas is only a technicalonly a technical issue, we areissue, we are

succeeding.succeeding.

In MexicoIn Mexico thethe statestate ownsowns the gas (Arts. 27 & 28)the gas (Arts. 27 & 28)

NeedNeed toto havehave govermentgoverment authorizationauthorization to use theto use the

CMM & VAM.CMM & VAM.

Page 27: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

The Use ofThe Use of Coal Mine MethaneCoal Mine Methane LiberatedLiberated fromfrom SafetySafety SystemsSystems Implemented atImplemented at

MIMOSA’s Mines is a Priority for the CompanyMIMOSA’s Mines is a Priority for the Company

AdvancedAdvanced DrillingDrilling TechnologyTechnology andand Developments in CMM and VAM UseDevelopments in CMM and VAM Use

TechnologyTechnology willwill LeadLead toto thethe Successful Use ofSuccessful Use of thisthis Greenhouse GasGreenhouse Gas

MIMOSA, in ConjunctionMIMOSA, in Conjunction withwith Equipment Manufactures, haveEquipment Manufactures, have InvestigatedInvestigated

Methane Use Alternatives (CombustionMethane Use Alternatives (Combustion Engines, Turbines, VAM Reactors,Engines, Turbines, VAM Reactors,

Etc.), SpecificallyEtc.), Specifically PowerPower GenerationGeneration OptionsOptions

MIMOSA’s CMM and VAM Resource has Tremendous Potential forMIMOSA’s CMM and VAM Resource has Tremendous Potential for

Development for Years to ComeDevelopment for Years to Come

MIMOSA can PartnerMIMOSA can Partner with a Domesticwith a Domestic oror InternationalInternational InvestorInvestor to Use thisto Use this LowLow

QualityQuality ResourceResource CurrentlyCurrently VentedVented toto thethe EnvironmentEnvironment

ConclusionsConclusions

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Page 28: Minerales Monclova S.A. de C.V. · Minerales Monclova S.A. de C.V. The Potential of Using VAM at The Potential of Using VAM at MIMOSA’s Mines is High: Methane Use Options at MIMOSA

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

MineralesMinerales MonclovaMonclova S.A. de C.V.S.A. de C.V.

Gracias!Gracias!

Mimosa has to have degasification forMimosa has to have degasification for

safety, also to protect the environmentsafety, also to protect the environment