study of coal industry

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STUDY OF COAL INDUSTRY

BYHARISH KUMAR BISOYI1226113118


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INTRODUCTION

Coal is the most abundant and economical fossil fuel in the world. Coal is primarily used for thegeneration of electricity, with much smaller volumes used for industrial process heat and in steel

production. Over 40 percent of the worlds electricity is produced from coal. As such, it is animportant fuel source and will remain so for decades due to its low cost and abundance.However, like all fossil fuels, it is formed from carbon and when it burns, its carbon combineswith oxygen to form carbon dioxide (CO2), a greenhouse gas.CO2 emissions from coal power generation are considered a major contributing factor to global

warming. Further, traces of sulfur and nitrogen are also trapped inside coal. If oxides of theseelements are released into the air, they can combine with water vapor to form acid rain. Mineralsand dirt are also contained in coal. These particles do not burn and result in coal ash.

Coal is formed from the decomposition of organic materials that have been subjected to millionsof years of geologic heat and pressure. While coal is generically described as a singlecommodity, it in fact varies widely in important physical and chemical characteristics such asenergy content, carbon content, moisture content, and presence of contaminants such as sulfur.These attributes determine both the price of coal and the applications for which it is used

THE COAL INDUSTRY PROFILE OF INDIA

The report provides top-level market analysis, information and insights into the coal miningindustry in India including:

In-depth analysis of the coal mining industry A detailed analysis of market attractiveness, covering the key trends, drivers and

regulatory frameworks Detailed market sizes for a period of 10 years (2006 2015), including production and

consumption analysis Detailed import and export figures for coal for a period of 10 years (2006 2015) Description and analysis of the competitive landscape for the coal mining industry

Summary

India had million tons coal reserves in 2010, which accounts for significant share of total globalreserves. India produced million tons of coal in 2010. Other major coal producers include China,the USA and Australia. India is also a leading consumer of coal globally. In India, the majorityof its coal is consumed by thermal power generation plants. The cement industry is highly energyintensive and is the third-largest coal user in India and, as such, the robust growth of cementindustry will fuel the demand for coal. About45 % of coal production in India is derived fromopen-pit mines while underground mining contributes for about 38%. Coal India Ltd andSingerani Collieries Company are the two leading producers of coal in India. Around XX% ofthe coal produced in India is non-coking coal. Indian coal has high content of ash, as low sulphurcontent, low refractory nature of ash, low iron content in ash and low chlorine content.


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Scope

This report provides a comprehensive analysis of the coal mining industry in India:

It provides historical values for the coal mining industry for the reports 2006 2010review period and forecast figures for the 2011 2015 forecast period

It offers a detailed analysis of production, consumption, imports and exports of keyminerals in terms of volume as well as value

It details the regulatory framework for the coal mining industry

Reasons To Buy

Gain insights into the coal mining industry in India Identify the key market trends, opportunities and challenges Assess the industry structure and competitive landscape for coal mining industry in India

Assess growth opportunities and industry dynamics by looking at the report's production,consumption, import and export figures for coal mining industry in India by volume andvalue

Analyze the regulatory environment governing the coal mining industry in the country

INDIAN COAL MINING - INDUSTRY OVERVIEW

More than 90 percent of coal in India is produced by the government-owned companies. CILis one of the largest coal producing companies in the world.

The role played by private sector players is limited to captive mining for the purpose of selfconsumption, be it steel production, power generation, cement production, fertiliser

production. Currently, in spite of large reserves of coal, the industry is unable to increase the coal

production to match the demand and to reach its potential production. Hence, India has toimport coal to meet its additional requirements.

Indian power sector relies heavily (around 78 per cent) on coal for electricity generation. Asthe infrastructure to support coal imports is inadequate and coal reserves are found inabundance in India, the domestic coal production has to gear up to meet future demand.

COAL USES

Coal is primarily used as a solid fuel to produce electricity and heat through combustion. Worldcoal consumption was about 7.25 billion tonnes in 2010 (7.99 billion short tons) and is expectedto increase 48% to 9.05 billion tonnes (9.98 billion short tons) by 2030 .China produced 3.47

billion tonnes (3.83 billion short tons) in 2011. India produced about 578 million tonnes (637.1million short tons) in 2011. 68.7% of China's electricity comes from coal. The USA consumedabout 13% of the world total in 2010, i.e. 951 million tonnes (1.05 billion short tons), using 93%
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of it for generation of electricity .[35] 46% of total power generated in the USA was done usingcoal.

When coal is used for electricity generation, it is usually pulverized and then combusted (burned)in a furnace with a boiler. The furnace heat converts boiler water to steam, which is then used tospin turbines which turn generators and create electricity. The thermodynamic efficiency of this

process has been improved over time. Simple cycle steam turbines have topped out with some ofthe most advanced reaching about 35% thermodynamic efficiency for the entire process.Increasing the combustion temperature can boost this efficiency even further .[ Old coal power

plants, especially "grandfathered" plants, are significantly less efficient and produce higher levelsof waste heat. At least 40% of the world's electricity comes from coal, and in 2012, about one-third of the United States' electricity came from coal, down from approximately 49% in 2008. Asof 2012 in the United States, use of coal to generate electricity was declining, as plentifulsupplies of natural gas obtained by hydraulic fracturing of tight shale formations becameavailable at low prices. The emergence of the supercritical turbine concept envisions running a

boiler at extremely high temperatures and pressures with projected efficiencies of 46%, with

further theorized increases in temperature and pressure perhaps resulting in even higherefficiencies.

In Denmark, a net electric efficiency of > 47% has been obtained at the coal-fired Nordjyllandsvrket CHP Plant and an overall plant efficiency of up to 91% with cogeneration ofelectricity and district heating .[43] The multifuel-fired Avedrevrket CHP Plant just outsideCopenhagen can achieve a net electric efficiency as high as 49%. The overall plant efficiencywith cogeneration of electricity and district heating can reach as much as 94%.

An experimental way of coal combustion is in the form of coal-water slurry fuel (CWS), whichwas well-developed in Russia since the days of the Soviet Union. CWS significantly reducesemissions, improving the heating value of coal. Other ways to use coal are combined heat and

power cogeneration and an MHD topping cycle. The total known deposits recoverable by current technologies, including highly polluting, low-energy content types of coal (i.e., lignite, bituminous), is sufficient for many years. However,consumption is increasing and maximal production could be reached within decades (see worldcoal reserves, below).

Coking coal and use of coke

Coke is a solid carbonaceous residue derived from low-ash, low-sulfur bituminous coal fromwhich the volatile constituents are driven off by baking in an oven without oxygen attemperatures as high as 1,000C (1,832F), so the fixed carbon and residual ash are fusedtogether. Metallurgical coke is used as a fuel and as a reducing agent in smelting iron ore ina blast furnace. The result is pig iron, and is too rich in dissolved carbon, so it must be treatedfurther to make steel. The coking coal should be low in sulfur and phosphorus, so they do notmigrate to the metal.

The coke must be strong enough to resist the weight of overburden in the blast furnace, which iswhy coking coal is so important in making steel using the conventional route. However, thealternative route is direct reduced iron, where any carbonaceous fuel can be used to make spongeor pelletised iron. Coke from coal is grey, hard, and porous and has a heating value of 24.8
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million Btu/ton (29.6 MJ/kg). Some cokemaking processes produce valuable byproducts,including coal tar, ammonia, light oils, and coal gas.

Petroleum coke is the solid residue obtained in oil refining, which resembles coke, but containstoo many impurities to be useful in metallurgical applications.

GasificationCoal gasification can be used to produce syngas, a mixture of carbon monoxide (CO) andhydrogen (H 2) gas. This syngas can then be converted into transportation fuels, such as gasolineand diesel, through the Fischer-Tropsch process. This technology is currently used bythe Sasol chemical company of South Africa to make motor vehicle fuels from coal and naturalgas. Alternatively, the hydrogen obtained from gasification can be used for various purposes,such as powering a hydrogen economy, making ammonia, or upgrading fossil fuels.

During gasification, the coal is mixed with oxygen and steam while also being heated and pressurized. During the reaction, oxygen and water molecules oxidize the coal into carbonmonoxide (CO), while also releasing hydrogen gas (H 2). This process has been conducted in both

underground coal mines and in the production of town gas. C (as Coal ) + O 2 + H 2O H 2 + CO

If the refiner wants to produce gasoline, the syngas is collected at this state and routed into aFischer-Tropsch reaction. If hydrogen is the desired end-product, however, the syngas is fedinto the water gas shift reaction, where more hydrogen is liberated.

CO + H 2O CO 2 + H 2

In the past, coal was converted to make coal gas (town gas) , which was piped tocustomers to burn for illumination, heating, and cooking.

LiquefactionCoal can also be converted into synthetic fuels equivalent to gasoline or diesel by severaldifferent processes. In the direct liquefaction processes, the coal iseither hydrogenated or carbonized. Hydrogenation processes are the Bergius process ,[46] theSRC-I and SRC-II (Solvent Refined Coal) processes and the NUS Corporation hydrogenation

process. In the process of low-temperature carbonization, coal is coked at temperatures between360 and 750C (680 and 1,380F). These temperatures optimize the production of coal tars richerin lighter hydrocarbons than normal coal tar. The coal tar is then further processed into fuels.Alternatively, coal can be converted into a gas first, and then into a liquid, by using the Fischer-Tropsch process. An overview of coal liquefaction and its future potential is available

Coal liquefaction methods involve carbon dioxide (CO 2) emissions in the conversion process. Ifcoal liquefaction is done without employing either carbon capture and storage (CCS)technologies or biomass blending, the result is lifecycle greenhouse gas footprints that aregenerally greater than those released in the extraction and refinement of liquid fuel productionfrom crude oil. If CCS technologies are employed, reductions of 5 12% can be achieved in Coalto Liquid (CTL) plants and up to a 75% reduction is achievable when co-gasifying coal withcommercially demonstrated levels of biomass (30% biomass by weight) in coal/bomass-to-liquids plants.For future synthetic fuel projects, carbon dioxide sequestration is proposed to
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avoid releasing CO 2 into the atmosphere. Sequestration adds to the cost of production. Currently,all US and at least one Chinese synthetic fuel projects, include sequestration in their processdesigns

Refined coal

Refined coal is the product of a coal-upgrading technology that removes moisture and certain pollutants from lower-rank coals such as sub-bituminous and lignite (brown) coals. It is one formof several precombustion treatments and processes for coal that alter coal's characteristics beforeit is burned. The goals of precombustion coal technologies are to increase efficiency and reduceemissions when the coal is burned. Depending on the situation, precombustion technology can beused in place of or as a supplement to postcombustion technologies to control emissions fromcoal-fueled boilers.

Industrial processes

Finely ground bituminous coal, known in this application as sea coal, is a constituent of foundrysand. While the molten metal is in the mould, the coal burns slowly, releasing reducing gases at

pressure, and so preventing the metal from penetrating the pores of the sand. It is also containedin 'mould wash', a paste or liquid with the same function applied to the mould before casting .]Seacoal can be mixed with the clay lining (the "bod") used for the bottom of a cupola furnace. Whenheated, the coal decomposes and the bod becomes slightly friable, easing the process of breakingopen holes for tapping the molten metal.

OVERVIEW

Demand and supply

The overall long-term demand of coal is closely linked to the performance of the end-usesectors. In India, the end-use sectors of coal mainly include electricity, iron and steel andcement. Demand from the unorganised small scale sector comprising primarily of the

brick and ceramic industry is relatively large though infirm as users switch between coal,firewood and biomass depending on their relative prices. Other industries using coalhave only a marginal impact on the long-term demand for coal.The charts show the projected sector-wise coal consumption in India by the end of the12th Plan and 15th Plan. The report of the Working Group of Coal and Lignite for the 12th FiveYear Plan projects the coal demand in India to grow at a CARG of 7.1% till 2016-17 and reach980.5 MT annually under realistic demand. At a CAGR of 7.0%, the demand is expected to reach1,373 MT by 2021-22.

Coal demand in IndiaEstimated sector-wise coal consumptionin India (2016-17)Estimated sector-wise coal consumptionin India in 2031-32
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Source: The report of the Working Group for Coal and Lignite for 12th Five Year PlanOutlookElectricity- 59%Iron& Steel- 7%Cement- 4%

Others- 10% Non-elect- 20%Electricity- 60%Iron& Steel- 5%Cement- 5%Others- 10%

Non-elect- 20%

Source: India Energy Book 2012, (World Energy Council, Indian Member Committee)12 PwCFurther, the Ministry of Steel (MoS) projected to build steel production capacities of200 MT by 2020 to meet the rising demand. Out of this, almost 70% of the steel might

be based on basic oxygen furnaces (BOF) technology. Different scenarios for cokingcoal requirement are also proposed under different studies, and their projections areas follows:

The current shortage of coal stands at 84 MT and the same is expected to rise to 300MTPA in medium-term if all the letters of assurance issued by the state-owned coalcompanies materialise. Some of this shortfall will be met by supplies from captive coal

blocks and rest through imports. Also, the choice between the supplies from domesticand imported coal is mainly driven by timely availability of coal from domestic sources,quality requirements and the economics of landed cost of coal at the end-use plant.Captive coal mining in India was, gradually, being permitted by amending the CoalMines Nationalisation Act, primarily in iron and steel making, power generation andcement production. However, the capacity augmentation from captive coal blocks wasdismal as only 30 mines could come online as compared to a targeted 76 mines. Hence,it became important for India to secure coal through imports from international marketto meet their significantly rising coal demand. However, import is mainly dependent onavailability of coal in global market, increasing competitive scenario and affordability.Coking coal demand for steel

Coal availability in India2016-17 2021-2022CIL SCCL Captive miningSCN-I: Business as usual, SCN-II: Optimistic scenario

In the global market, China, India and Indonesia are expected to account for nearly 80%of the total incremental growth in demand for coal. As per projections, by 2035, Chinawill remain the worlds largest consumer of coal, followed by India, US and Indonesia.Coal-based thermal power projects will be the main drivers of demand in China andIndia. The projected coal fired generation capacity in Asia will rise to 1,464,000 MWin 2020 up from 918,000 MW this year, while for India it will rise from 95,000 MW to


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294,000 MW over the next 11 years (a 300% increase).Asia Pacific is expected to account for 70.8% of the global coal production and 71.3%of the global consumption in 2015 with China and India being two largest consumers.The demand and supply gap is expected to widen in 2030 as Asia Pacific is expectedto produce 73.8% of the global coal production but consume 77.7% of the total

consumption. The negative coal balance will have significant impact on coal prices.

ENVIRONMENTAL IMPACT OF THE COAL INDUSTRY

The environmental impact of the coal industry includes the consideration of issues suchas land use, waste management, and water and air pollution caused by the coal mining,

processing and the use of its products. In addition to atmospheric pollution, coal burning produces hundreds of millions of tons of solid waste products annually, including fly ash, bottomash, and flue-gas desulfurization sludge, that contain mercury, uranium ,thorium, arsenic, andother heavy metals

There are severe health effects caused by burning coal. According to the reports issued bythe World Health Organization in 2008 and by environmental groups in 2004, coal particulates pollution are estimated to shorten approximately 1,000,000 lives annually worldwide, includingnearly 24,000 lives a year in the United States. Coal mining generates significant additionalindependent adverse environmental health impacts, among them the polluted water flowingfrom mountaintop removal mining. A major EU funded research study known as ExternE, or Externalities of Energy, undertakenover the period of 1995 to 2005 found that the cost of producing electricity from coal woulddouble over its present value, if external costs such as damage to the environment and to humanhealth, from the airborne particulate matter, nitrogen oxides, chromium VI and arsenic emissions

produced by coal, were taken into account. It was estimated in the study that external,

downstream, fossil fuel costs amount up to 1 2% of the EUs entire Gross Domestic Product(GDP), with coal the main fossil fuel accountable for this, and this was before the external costof global warming from these sources was even included. The study also found that theenvironmental and health costs of coal alone were 0.06/kWh, or 6 cents/kW h, with the energysources of the lowest external costs associated with them being nuclear power 0.0019/kWh,and wind power at 0.0009/kWh.

WATER MINING

Open-pit mining requires large amounts of water for coal preparation plants and dustsuppression. To meet this requirement mines acquire (and remove) surface or groundwatersupplies from nearby agricultural or domestic users, which reduces the productivity of theseoperations or halts them. These water resources (once separated from their original environment)are rarely returned after mining, creating a permanent degradation in agricultural productivity.Underground mining has a similar (but lesser) effect, due to a lower need for dust-suppressionwater; however, it still requires sufficient water for coal-washing.Groundwater supplies may be adversely affected by surface mining. These impacts includedrainage of usable water from shallow aquifers; lowering of water levels in adjacent areas andchanges in flow direction within aquifers; contamination of usable aquifers below mining
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operations due to infiltration (percolation) of poor-quality mine water ; and increased infiltrationof precipitation on spoil piles. Where coal (or carbonaceous shale) is present, increasedinfiltration may result in:Increased runoff of poor-quality water and erosion from spoil pilesRecharge of poor-quality water to shallow groundwater aquifers

Poor-quality water flow to nearby streamsThis may contaminate both groundwater and nearby streams for long periods. Deterioration ofstream quality results from acid mine drainage, toxic trace elements, high content of dissolvedsolids in mine drainage water, and increased sediment loads discharged to streams. When coalsurfaces are exposed, pyrite comes in contact with water and air and forms sulfuric acid. Aswater drains from the mine, the acid moves into the waterways; as long as rain falls on themine tailings the sulfuric-acid production continues, whether the mine is still operating ornot. Also waste piles and coal storage piles can yield sediment to streams. Leached water fromthese piles can be acid and contain toxic trace elements. Surface waters may be rendered unfit foragriculture, human consumption, bathing, or other household uses.To mitigate these problems, water is monitored at coal mines. The five principal technologies

used to control water flow at mine sites are:Diversion systemsContainment pondsGroundwater pumping systemsSubsurface drainage systemsSubsurface barriers

Land Management

Impact to land and surroundings

Strip mining severely alters the landscape, which reduces the value of the natural environment inthe surrounding land .[10] The land surface is dedicated to mining activities until it can bereshaped and reclaimed. If mining is allowed, resident human populations must be resettled offthe mine site; economic activities, such as agriculture or hunting and gathering food andmedicinal plants are interrupted. What becomes of the land surface after mining is determined bythe manner in which the mining is conducted. Usually reclamation of disturbed lands to a landuse condition is not equal to the original use. Existing land uses (such as livestock grazing, cropand timber production) are temporarily eliminated from the mining area. High-value, intensive-land-use areas like urban and transportation systems are not usually affected by miningoperations. If mineral values are sufficient, these improvements may be removed to an adjacentarea.Strip mining eliminates existing vegetation, destroys the genetic soil profile, displaces ordestroys wildlife and habitat, alters current land uses, and to some extent permanently changesthe general topography of the area mined .[11] Adverse impacts on geological features of humaninterest may occur in a coal strip mine. Geomorphic and geophysical features and outstandingscenic resources may be sacrificed by indiscriminate mining. Paleontological, cultural, and otherhistoric values may be endangered due to the disruptive activities of blasting, ripping, andexcavating coal. Stripping of overburden eliminates and destroys archeological and historicfeatures, unless they are removed beforehand.
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The removal of vegetative cover and activities associated with the construction of haul roads,stockpiling of topsoil, displacement of overburden and hauling of soil and coal increase thequantity of dust around mining operations. Dust degrades air quality in the immediate area, hasan adverse impact on vegetative life, and constitutes health and safety hazards for mine workersand nearby residents.

Surface mining disrupts virtually all aesthetic elements of the landscape. Alteration of landformsoften imposes unfamiliar and discontinuous configurations. New linear patterns appear asmaterial is extracted and waste piles are developed. Different colors and textures are exposed asvegetative cover is removed and overburden dumped to the side. Dust, vibration, and dieselexhaust odors are created (affecting sight, sound, and smell). Residents of local communitiesoften find such impacts disturbing or unpleasant. In case of mountaintop removal, tops areremoved from mountains or hills to expose thick coal seams underneath. The soil and rockremoved is deposited in nearby valleys, hollows and depressions, resulting in blocked (andcontaminated) waterways.Removal of soil and rock overburden covering the coal resource may cause burial and loss oftopsoil, exposes parent material, and creates large infertile wastelands. Soil disturbance and

associated compaction result in conditions conducive to erosion. Soil removal from the area to besurface-mined alters or destroys many natural soil characteristics, and reduces its biodiversityand productivity for agriculture. Soil structure may be disturbed by pulverization or aggregate

breakdown.Mine collapses (or mine subsidences) have the potential to produce major effects above ground,which are especially devastating in developed areas. German underground coal-mining(especially in North Rhine-Westphalia) has damaged thousands of houses, and the coal-miningindustries have set aside large sums in funding for future subsidence damages as part of theirinsurance and state-subsidy schemes. In a particularly spectacular case in theGerman Saar region (another historical coal-mining area), a suspected mine collapse in 2008created an earthquake measuring 4.0 on the Richter magnitude scale, causing some damage tohouses. Previously, smaller earthquakes had become increasingly common and coal mining wastemporarily suspended in the area .[14] In response to negative land effects of coal mining and the abundance of abandoned mines in theUS the federal government enacted the Surface Mining Control and Reclamation Act of 1977, which requires reclamation plans for future coal mining sites. These plans must be approved byfederal or state authorities before mining begins.

Waste management

The burning of coal leads to substantial fly ash sludge-storage ponds. In the low-coal-contentareas waste forms spoil tip. The Environmental Protection Agency classified the 44 sites as

potential hazards to communities (which means the waste sites could cause death and significant property damage if an event such as a storm, a terrorist attack or a structural failure caused aspill). They estimate that about 300 dry landfills and wet storage ponds are used around thecountry to store ash from coal-fired power plants. The storage facilities hold the noncombustibleingredients of coal and the ash trapped by equipment designed to reduce air pollution.

River water pollution
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Coal-fired boilers / power plants when using coal or lignite richin limestone produces ash containing calcium oxide (CaO). CaO readily dissolves in water toform slaked lime / Ca(OH) 2 and carried by rain water to rivers / irrigation water from the ashdump areas .Lime softening process precipitates Ca and Mg ions / removes temporary hardness inthe water and also converts sodium bicarbonates in river water into sodium carbonate Sodium

carbonate (washing soda) further reacts with the remaining Ca and Mg in the water to remove / precipitate the total hardness. Also water soluble sodium salts present in the ash enhance thesodium content in water further. Thus river water is converted into soft water by eliminating Caand Mg ions and enhancing Na ions by coal-fired boilers. Soft water applicationin irrigation (surface or ground water) converts the fertile soils into alkaline sodic soils. Riverwater alkalinity and sodicity problem is acute when many coal-fired boilers and power stationsare installed in a river basin. River water sodicity problem aggravates in the downstream ofintensively cultivated river basins located in China, India, Egypt, Pakistan, west Asia, Australia,western US, etc. due to accumulation of salts in the remaining water after meeting varioustranspiration and evaporation losses.

WildlifeSurface mining of coal causes direct and indirect damage to wildlife. The impact on wildlifestems primarily from disturbing, removing and redistributing the land surface. Some impacts areshort-term, and confined to the mine site; others have far-reaching, long-term effects.The most direct effect on wildlife is destruction or displacement of species in areas of excavationand spoil piling. Pit and spoil areas are not capable of providing food and cover for most speciesof wildlife. Mobile wildlife species like game animals, birds, and predators leave these areas.More sedentary animals like invertebrates, reptiles, burrowing rodents and small mammals may

be destroyed. The community of microorganisms and nutrient-cycling processes are upset bymovement, storage, and redistribution of soil.Degradation of aquatic habitats is a major impact by surface mining, and may be apparent manymiles from a mining site. Sediment contamination of surface water is common with surfacemining. Sediment yields may increase a thousand times times their former level as a result ofstrip mining.The effects of sediment on aquatic wildlife vary with the species and the amount ofcontamination. High sediment levels can kill fish directly, bury spawning beds, reduce lighttransmission, alter temperature gradients, fill in pools, spread streamflows over wider, shallowerareas, and reduce production of aquatic organisms used as food by other species. These changesdestroy the habitat of valued species, and may enhance habitat for less-desirable species.Existing conditions are already marginal for some freshwater fish in the United States, and thesedimentation of their habitat may result in their extinction. The heaviest sediment pollution of adrainage normally comes within 5 to 25 years after mining. In some areas, unvegetated spoil

piles continue to erode even 50 to 65 years after mining.The presence of acid-forming materials exposed as a result of surface mining can affect wildlife

by eliminating habitat and by causing direct destruction of some species. Lesser concentrationscan suppress productivity, growth rate and reproduction of many aquatic species. Acids, diluteconcentrations of heavy metals, and high alkalinity can cause severe damage to wildlife in someareas. The duration of acidic-waste pollution can be long; estimates of the time required to leachexposed acidic materials in the Eastern United States range from 800 to 3,000 years
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Air Pollution

Air emissions

Coal and coal waste products (including fly ash, bottom ash and boiler slag) releasesapproximately 20 toxic-release chemicals,including arsenic, lead, mercury, nickel, vanadium, beryllium ,cadmium, barium, chromium, copper, molybdenum, zinc, selenium and radium, which are dangerous if released into theenvironment. While these substances are trace impurities, enough coal is burned that significantamounts of these substances are released .[20] During combustion, the reaction between coal and the air produces oxides of carbon, includingcarbon dioxide (CO 2, an important greenhouse gas) , oxides of sulfur (mainly sulfur dioxide) (SO 2), and various oxides of nitrogen (NO x). Because of the hydrogenous and nitrogenouscomponents of coal, hydrides and nitrides of carbon and sulfur are also produced during thecombustion of coal in air. These include hydrogen cyanide (HCN), sulfur nitrate (SNO 3) and

other toxic substances.The wet cooling towers used in coal-fired power stations, etc. emit drift and fog which are alsoenvironmental concern. The drift from the cooling towers is containing Respirable suspended

particulate matter. In case of cooling towers with sea water makeup, sodium salts are depositedon nearby lands which would convert the land into alkali soil by reducing the fertility ofvegetative lands and also cause corrosion of nearby structures.Fires sometimes occur in coal beds underground. When coal beds are exposed, the fire risk isincreased. Weathered coal can also increase ground temperatures if it is left on the surface.Almost all fires in solid coal are ignited by surface fires caused by people or lightning.Spontaneous combustion is caused when coal oxidizes and airflow is insufficient to dissipateheat; this more commonly occurs in stockpiles and waste piles, rarely in bedded coalunderground. Where coal fires occur, there is attendant air pollution from emission of smoke andnoxious fumes into the atmosphere. Coal seam fires may burn underground for decades,threatening destruction of forests, homes, roadways and other valuable infrastructure. The best-known coal-seam fire may be the one which led to the permanent evacuation of Centralia,Pennsylvania, United States.Approximately 75 Tg/S per year of Sulfur Dioxide (SO 2) is released from burning coal. Afterrelease, the Sulfur Dioxide is oxidized to gaseous H 2SO2 which scatters solar radiation, hencetheir increase in the atmosphere exerts a cooling effect on climate that masks some of thewarming caused by increased greenhouse gases. Release of SO 2 also contributes to thewidespread acidification of ecosystems.Mercury emissionsMercury emission from coal burning are concentrated as they work their way up the food chainand are converted into methylmercury, a toxic compound which harms both wildlife and peoplewho consume freshwater fish. Coal burning is a key source of methylmercury in theenvironment. "Power plants... are responsible for half of... the mercury emissions in the UnitedStates.In New York State winds bring mercury from the coal-fired power plants of the Midwest,contaminating the waters of the Catskill Mountains. The mercury is consumed by worms, whichare eaten by fish, which are eaten by birds (including bald eagles) . As of 2008, mercury levels in
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bald eagles in the Catskills had reached new heights. "People are exposed to methylmercuryalmost entirely by eating contaminated fish and wildlife that are at the top of aquatic foodchains. "[30] Ocean fish account for the majority of human exposure to methylmercury; the fullrange of sources of methylmercury in ocean fish is not well understood.The United States Environmental Protection Agency has proposed the Mercury and Air Toxics

Standards (MATS) regulations ,]

which require all coal plants use the technology which isavailable to substantially reduce mercury emissions. "Today, more than half of all coal-fired power plants already deploy pollution control technologies that will help them meet theseachievable standards. Once final, these standards will level the playing field by ensuring theremaining plants about 40 percent of all coal-fired power plants - take similar steps to decreasedangerous pollutants.Annual excess deaths In 2008 the World Health Organization (WHO) and other organizationscalculated that coal particulates pollution cause approximately one million deaths annuallyacross the world, which is approximately one third of all premature deaths related to all air

pollution sources.Pollutants emitted by burning coal include fine particulates (PM2.5) and ground level ozone.

Every year, the burning of coal without the use of available pollution control technology causesthousands of preventable deaths in the United States. A study commissioned by the Marylandnurses association in 2006 found that emissions from just six of Maryland's coal-burning plantscaused 700 deaths per year nationwide, including 100 in Maryland. Since installation of

pollution abatement equipment on one of these six, the Brandon Shores plant, now "produces 90 percent less nitrogen oxide, an ingredient of smog; 95 percent less sulfur, which causes acid rain;and vastly lower fractions of other pollutants.According to a report published in 2004, coal-fired power plants shorten nearly 24,000 lives ayear in the United States (2,800 from lung cancer) . In the United States alone, the United StatesEnvironmental Protection Agency (EPA) estimates that a range of 13,000 to 34,000 preventable

premature deaths will be avoided by the reductions in PM2.5 and ozone expected by the end ofthe several-years time needed to complete implementation of the coal plant cleanup provisions ofthe Final Cross-State Air Pollution Rule (CSAPR).In addition to preventing avoidable premature deaths, the Final Cross-State rule is estimated to

prevent 15,000 additional (non-fatal) heart attacks, 19,000 attacks of acute bronchitis; 420,000upper and lower respiratory symptoms, 400,000 aggravated asthma attacks; and 19,000 hospitaland ER trips (e.g., for asthma attacks triggered by soot from coal burning). By reducing thehealth detriments that arise from burning coal without using available pollution controls,implementation of the Final Cross-State Air Pollution Rule is expected to reduce days when

people must miss work or school by 1.8 million.The Cross-State Air Pollution Rule requires significant reductions in sulfur dioxide (SO2)and nitrogen oxide (NO) emissions that cross state lines. These pollutants react in the atmosphereto form fine particles and ground-level ozone and are transported long distances, making itdifficult for other states to achieve healthy levels of pollution control. The benefits of theemission reductions expected from EPA's recently proposed Mercury and Air Toxics Standards(MATS) are not included in the above estimated emission reductions from the Cross-State AirPollution Rule; once the Mercury and Air Toxics Standard s[ are implemented, death and diseasefrom coal burning are likely to be reduced even further, both directly by reducing mercury

poisoning, and by reducing sulfur dioxide emissions.
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Green House Emissions

The combustion of coal is the largest contributor to the human-made increase of CO 2 inthe atmosphere. Electric generation using coal burning produces approximately twicethe greenhouse gasses per kilowatt compared to generation using natural gas.

Coal mining produces methane, a potent greenhouse gas. Methane is the naturally occurring product of the decay of organic matter as coal deposits are formed with increasing depths of burial, rising temperatures, and rising pressure over geological time. A portion of the methane produced is absorbed by the coal and later released from the coal seam (and surroundingdisturbed strata) during the mining process. Methane accounts for 10.5 percent of greenhouse-gas emissions created through human activity. According to the Intergovernmental Panel onClimate Change, methane has a global warming potential 21 times greater than that of carbondioxide over a 100-year timeline. The process of mining can release pockets of methane. Thesegases may pose a threat to coal miners, as well as a source of air pollution. This is due to therelaxation of pressure and fracturing of the strata during mining activity, which gives rise tosafety concerns for the coal miners if not managed properly. The buildup of pressure in the strata

can lead to explosions during (or after) the mining process if prevention methods, such as"methane draining", are not taken.In 2008 James E. Hansen and Pushker Kharecha published a peer-reviewed scientific studyanalyzing the effect of a coal phase-out on atmospheric CO 2 levels. Their baseline mitigationscenario was a phaseout of global coal emissions by 2050. Under the Business as Usual scenario,atmospheric CO 2 peaks at 563 parts per million (ppm) in the year 2100. Under the four coal

phase-out scenarios, atmospheric CO 2 peaks at 422 446 ppm between 2045 and 2060 anddeclines thereafter.

Radiation Exposure

Coal also contains low levels of uranium, thorium, and other naturally occurring radioactiveisotopes whose release into the environment may lead to radioactive contamination .[20][44] Coal

plants emit radiation in the form of radioactive fly ash which is inhaled and ingested byneighbours, and incorporated into crops. A 1978 paper from Oak Ridge NationalLaboratory estimated that coal-fired power plants of that time may contribute a whole-bodycommitted dose of 19 Sv/ yr to their immediate neighbours in a 500 m radius .[45] The United

Nations Scientific Committee on the Effects of Atomic Radiation' s 1988 report estimated thecommitted dose 1 km away to be 20 Sv/yr for older plants or 1Sv/yr for newer plants withimproved fly ash capture, but was unable to confirm these numbers by test .[46] Asingle PWR spent fuel bundle, after 10 years cooldown, with no shielding, emits 2.3 MSv/yr, atrillion times more than coal .[47] However, if we exclude contained waste and ignoreunintentional releases from nuclear plants, coal-plants carry more radioactive wastes into theenvironment than nuclear plants producing the same amount of energy. Plant-emitted radiationcarried by coal-derived fly ash delivers 100 times more radiation to the surrounding environmentthan does the normal operation of a similarly productive nuclear plant .[48]This comparison doesnot consider the rest of the fuel cycle, i.e., coal and uranium mining and refining and wastedisposal.
http://en.wikipedia.org/wiki/Human_impact_on_the_environmenthttp://en.wikipedia.org/wiki/Earth%27s_atmospherehttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Intergovernmental_Panel_on_Climate_Changehttp://en.wikipedia.org/wiki/Intergovernmental_Panel_on_Climate_Changehttp://en.wikipedia.org/wiki/Global_warminghttp://en.wikipedia.org/wiki/James_E._Hansenhttp://en.wikipedia.org/wiki/Uraniumhttp://en.wikipedia.org/wiki/Thoriumhttp://en.wikipedia.org/wiki/Radioactive_isotopeshttp://en.wikipedia.org/wiki/Radioactive_isotopeshttp://en.wikipedia.org/wiki/Radioactive_contaminationhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-gabbard-20http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-gabbard-20http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-gabbard-20http://en.wikipedia.org/wiki/Fly_ashhttp://en.wikipedia.org/wiki/Oak_Ridge_National_Laboratoryhttp://en.wikipedia.org/wiki/Oak_Ridge_National_Laboratoryhttp://en.wikipedia.org/wiki/%CE%9CSvhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-45http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-45http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-45http://en.wikipedia.org/wiki/United_Nations_Scientific_Committee_on_the_Effects_of_Atomic_Radiationhttp://en.wikipedia.org/wiki/United_Nations_Scientific_Committee_on_the_Effects_of_Atomic_Radiationhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-46http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-46http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-46http://en.wikipedia.org/wiki/Pressurized_water_reactorhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-47http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-47http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-47http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-48http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-48http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-48http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-47http://en.wikipedia.org/wiki/Pressurized_water_reactorhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-46http://en.wikipedia.org/wiki/United_Nations_Scientific_Committee_on_the_Effects_of_Atomic_Radiationhttp://en.wikipedia.org/wiki/United_Nations_Scientific_Committee_on_the_Effects_of_Atomic_Radiationhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-45http://en.wikipedia.org/wiki/%CE%9CSvhttp://en.wikipedia.org/wiki/Oak_Ridge_National_Laboratoryhttp://en.wikipedia.org/wiki/Oak_Ridge_National_Laboratoryhttp://en.wikipedia.org/wiki/Fly_ashhttp://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-gabbard-20http://en.wikipedia.org/wiki/Environmental_impact_of_the_coal_industry#cite_note-gabbard-20http://en.wikipedia.org/wiki/Radioactive_contaminationhttp://en.wikipedia.org/wiki/Radioactive_isotopeshttp://en.wikipedia.org/wiki/Radioactive_isotopeshttp://en.wikipedia.org/wiki/Thoriumhttp://en.wikipedia.org/wiki/Uraniumhttp://en.wikipedia.org/wiki/James_E._Hansenhttp://en.wikipedia.org/wiki/Global_warminghttp://en.wikipedia.org/wiki/Intergovernmental_Panel_on_Climate_Changehttp://en.wikipedia.org/wiki/Intergovernmental_Panel_on_Climate_Changehttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Greenhouse_gashttp://en.wikipedia.org/wiki/Earth%27s_atmospherehttp://en.wikipedia.org/wiki/Human_impact_on_the_environment


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Coal Imports:

New Delhi: India, the worlds third -largest coal consumer, imported 43% more of the fuel than ayear ago on increased demand from power stations and steelmakers, according to shipping data.Adani Enterprises Ltd , Tata Group , JSW Group and Steel Authority of India Ltd were

among buyers who received 16.77 million tonnes of coal, from 11.75 million in the same monthlast yea r, according to Interocean Group, a New Delhi - based shipper. This included 13.39million tonnes of steam coal and 3.38 million of coking coal at 23 ports. India, where 59% of electricity generation is coal-fired, added 1,570 megawatts of thermal powerin May to boost its total installed capacity to 225,133 megawatts, according to the CentralElectricity Authority. The nations steel production expanded by 1.5% in May, slowing from3.5% in April, the Economic Times reported on 24 June.The port of Mundra, operated by Adani Group, Indias biggest importer of the fuel, received thehighest volume at 3.48 million tonnes, according to Interoceans data. The eastern ports ofKrishnapatnam, Paradip and Gangavaram took in 1.71 million, 1.31 million and 1.12 milliontonnes, respectively.

Indonesia was the biggest source of coal imports with 11.76 million tonnes, the data show.Australia supplied 2.85 million tonnes and South Africa exported 1.73 million. Imports from theUS totalled 289,183 tonnes. New Zealand, Russia and Mozambique shipped 74,076 tonnes,35,000 tonnes and 30,416 tonnes, respectively.Power -station coal at Australias port of Newcastle, the Asian benchmark price, fell 2.1% to$81.20 a tonne in the week ended 21 June, according to data from IHS McCloskey. Th at was afourth weekly decline. Coal ProductionIndia has some of the largest reserves of coal in the world (approx. 267 billion tonnes [3] ). Theenergy derived from coal in India is about twice that of energy derived from oil, whereasworldwide, energy derived from coal is about 30% less than energy derived from oil.The top producing states are:Orissa - Talcher in Angul districtChhattisgarhJharkhandOther notable coal-mining areas include:Singareni collieries in Khammam district, Andhra PradeshJharia mines in Dhanbad district, JharkhandOrissa

Nagpur & Chandrapur district, MaharashtraRaniganj in Bardhaman district, West Bengal

Neyveli lignite mines in Cuddalore district, Tamil NaduSingrauli Coalfield and Umaria Coalfield in Madhya PradeshOrissa

Nagpur & Chandrapur district, MaharashtraRaniganj in Bardhaman district, West Bengal

Neyveli lignite mines in Cuddalore district, Tamil NaduSingrauli Coalfield and Umaria Coalfield in Madhya Pradesh
http://www.livemint.com/Search/Link/Keyword/Adani%20Enterprises%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Adani%20Enterprises%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Tata%20Grouphttp://www.livemint.com/Search/Link/Keyword/Tata%20Grouphttp://www.livemint.com/Search/Link/Keyword/Tata%20Grouphttp://www.livemint.com/Search/Link/Keyword/JSW%20Grouphttp://www.livemint.com/Search/Link/Keyword/JSW%20Grouphttp://www.livemint.com/Search/Link/Keyword/JSW%20Grouphttp://www.livemint.com/Search/Link/Keyword/Steel%20Authority%20of%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Steel%20Authority%20of%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Steel%20Authority%20of%20India%20Ltdhttp://en.wikipedia.org/wiki/Indiahttp://www.coalindia.nic.in/coalreserve.htmhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Talcherhttp://en.wikipedia.org/wiki/Angul_districthttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Singarenihttp://en.wikipedia.org/wiki/Khammam_districthttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Jhariahttp://en.wikipedia.org/wiki/Dhanbad_districthttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/w/index.php?title=Nagpur_%26_Chandrapur_district&action=edit&redlink=1http://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Raniganjhttp://en.wikipedia.org/wiki/Bardhaman_districthttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Neyvelihttp://en.wikipedia.org/wiki/Cuddalore_districthttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Singrauli_Coalfieldhttp://en.wikipedia.org/wiki/Umaria_Coalfieldhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/w/index.php?title=Nagpur_%26_Chandrapur_district&action=edit&redlink=1http://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Raniganjhttp://en.wikipedia.org/wiki/Bardhaman_districthttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Neyvelihttp://en.wikipedia.org/wiki/Cuddalore_districthttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Singrauli_Coalfieldhttp://en.wikipedia.org/wiki/Umaria_Coalfieldhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Umaria_Coalfieldhttp://en.wikipedia.org/wiki/Singrauli_Coalfieldhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Cuddalore_districthttp://en.wikipedia.org/wiki/Neyvelihttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Bardhaman_districthttp://en.wikipedia.org/wiki/Raniganjhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/w/index.php?title=Nagpur_%26_Chandrapur_district&action=edit&redlink=1http://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Umaria_Coalfieldhttp://en.wikipedia.org/wiki/Singrauli_Coalfieldhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Cuddalore_districthttp://en.wikipedia.org/wiki/Neyvelihttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Bardhaman_districthttp://en.wikipedia.org/wiki/Raniganjhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/w/index.php?title=Nagpur_%26_Chandrapur_district&action=edit&redlink=1http://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Dhanbad_districthttp://en.wikipedia.org/wiki/Jhariahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Khammam_districthttp://en.wikipedia.org/wiki/Singarenihttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Angul_districthttp://en.wikipedia.org/wiki/Talcherhttp://en.wikipedia.org/wiki/Orissahttp://www.coalindia.nic.in/coalreserve.htmhttp://en.wikipedia.org/wiki/Indiahttp://www.livemint.com/Search/Link/Keyword/Steel%20Authority%20of%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/JSW%20Grouphttp://www.livemint.com/Search/Link/Keyword/Tata%20Grouphttp://www.livemint.com/Search/Link/Keyword/Adani%20Enterprises%20Ltd


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INDUSTRY FORECAST

The Indian coal industry, one of the largest in terms of reserve base and production level, hasgained significant momentum in the past few years. Mainly dominated by PSUs like Coal IndiaLtd, which contributes over 75% of the countrys total coal production, the industry has attracted

government concern and investments. However, India has not been able to minimize its coaldeficit despite huge resource base, and still depends on imports. As per our latest estimations,carried out in recent research report, the overall coal imports are anticipated to cross the 100Million Metric Tons-mark in near future.According to our research report Indian Coal Industry Forecast to 2013 , the coal demandhas been rising constantly in India on back of high demand from major coal consuming sectors,including power, cement and steel. Our study also analyzed that plentiful coal reserves inJharkhand, growing industry demand mainly by power sector, and the increasing governmentsupport will boost the coal production in the country. We estimate that coal production will growat a CAGR of around 9% during 2011-12 to 2013-14. It is also anticipated that the demand forthermal coal and coking coal by power and steel sectors, respectively, will gain momentum in

near future.We also observed that the Indian coal industry is set to witness a great boost in near future on

back of strong government support and rising mergers and acquisitions of coal mines in overseasmarket. The presence of vast opportunities in coal washeries is also encouraging players toinfuse money in them. Recently, de-allocation of coal blocks and stake sales in PSUs wereamong the major steps taken by the government to boost production and investment in the coalindustry.While analyzing the pricing mechanism, we found that Coal Indias latest pricing system,adopting Gross Calorific Value (GCV) method, would have a minimal impact on powerconsumers, while non-power consumers would be affected the most. On distribution front, weobserved that under-developed infrastructure has been creating problems for transportation of

coal to various power plants across the country. The situation is expected to get worse ifrailways, roads and ports are not developed in pace with the capacity addition program.Moreover, detailed information on key market players and government initiatives has beenincluded in the comprehensive study to present a balanced outlook of the Indian coal industry toclients.

Total Installed Capacity (December 2012)

Source Total Capacity (MW) Percentage

Coal 120,873.38 57.29

Hydroelectricity 39,339.40 18.64


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Renewable energy source 25,856.14 12.25

Gas 18,903.05 8.96

Nuclear 4780 2.26

Oil 1,199.75 0.56

Total 2,10,951.72

Sector Total Capacity (MW) Percentage

State Sector 86,405.85 40.96

Central Sector 62,886.63 29.81

Private Sector 61,659.24 29.22

Total 2,10,951.72

Coal Reserves and Resources of CIL

As of April 1, 2010, we had total coal resources of 64,786 million tons, comprising, pursuant ofISP classifications, Proved Geological Reserves of 52,546 million tons, Indicated GeologicalReserves of 10,298 million tons and Inferred Geological Reserves of 1,942 million tons. As ofApril 1, 2010, from our total coal resources of 64,786 million tons, 30,356 million tons had beenconsidered for mining studies (mine planning and feasibility studies), and the remaining coalresources of 34,430 million tons had not yet been considered for such mining studies. From the30,356 million tons of coal resources that had been considered for mining studies as of April 1,2010, 21,754 million tons has been estimated as our Extractable Reserves.

Coal Production


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(A) We produce non-coking coal and coking coal of various grades for diverse applications. Thefollowing table provides certain information relating to the non-coking coal and coking coal

produced by us in the periods indicated:

Grades

Fiscal

2010 2011 2012 2013 2014Ist QTR

Rawcoal

productionMillTe

% ofRawcoal

production

Rawcoal

productionMillTe

% ofRawcoal

production

Rawcoal

productionMillTe

% ofRawcoal

production

Rawcoal

productionMillTe

% ofRawcoal

production

Rawcoal

productionMillTe

% ofRawcoal

production

Non

Cok ingCoal 1

395.13 91.6

389.97 90.4

392.48 90.1

408.555 90.3

92.191 89.6

Cok ingCoal 2

36.13 8.4 41.35 9.6 43.36 9.9 43.656 9.710.70

2 10.4

Total

431.26 100.0

431.32 100.0

435.84 100.0

452.211 100.0

102.893 100.0

1 Includes NEC(Assam grade) coal.2 Includes semi-coking coal and weakly coking coal

A significant majority of our non-coking coal is produced by us from mines operated in theKorba, Singrauli, Talcher, IB Valley and Wardha Valley coalfields, Most of our coking(metalurgical) coal is produced at the Jharia coalfield.

(B) COMPANYWISE DETAILS 2013-14- Ist QTR

DETAILSUNIT ECL BCCL CCL NCL WCL SECL MCL NEC CIL

PRODUCTION

UGOC

MillTe

1.6836.374

0.7557.208

0.2289.855

0.00014.02

1.9148.264

3.85725.22

0.35323.08

0.001

8.79194.102


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MillTe

3 3 9 0.066

TOTAL MillTe 8.057 7.96310.08

314.02

310.17

829.08

023.44

20.06

7102.89

3

OB MCUM19.97

921.60

615.06

551.54

034.74

332.53

022.30

21.06

2198.82

7

OFFTAK E

MillTe 7.898 8.427

13.058

17.147

10.797

29.911

28.049

0.077

115.364

Manpower

COMPANY-WISE MANPOWER FOR THE MONTH OF JULY-2013 (i.e. 01.08.2013)

Category ECL

BCCL CCL WCL SECL MCL NCL NEC

CMPDI

DCC

CIL(HQ)

TOTAL CIL

Executive 2591 2619 2831 2888 3559 1893 1824 122 979 43 390 19739

Supv. 5586 4978 3258 5345 7570 3076 1978 368 642 265 48 33114

Workmen

64615

53145

41481

45455

61648

17307

13165

1776 1552

232 506

300882

TOTA

L

7279

2

6074

2

4757

0

5368

8

7277

7

2227

6

1696

7

226

6 3173 54

0 944 35373

5

Key Players in Indian Coal Sector

Coal Producing Companies Production(Mtes)Coal India Ltd (CIL)( A Govt. of India Enterprise)-324 (85%)Singareni Collieries Co. Ltd. -(SCCL)(AP St. Govt. & Govt. of India Jt. Venture)-36 (9%)Captive Producers (Steel & Power)-22 (6%)Total (During 2004--05)-382Coking Coal mines in India were Nationalised in 1971 & NonCoking Mines in 1973COALLIGNITECIL :COAL PRODUCINGSUBSIDIARIES


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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. NORTH EASTERN COALFIELDS.( A UNIT UNDER CIL(HQ) )SINGARENI COLLIERIES CO. LTD .

NEYVELI LIGNITE CORPORATION

COAL COMPANIES

Bharat Coking Coal Bharat Coking Coal Limited (BCCL) is a Public Sector Undertaking

engaged in mining of coal and allied activities. It occupies an important place in as much as it produces bulk of the coking coal mined in the country. BCCL meets almost 50% of the total prime coking coal requirement of the integrated steel sector. It also supplies substantial quantityof coal to the pig iron sector and bulk of the coal requirement of the power station in the

Northern region.

Coal India Limited Coal India contributes around 85% of coal production in India.It is thelargest company in the World in terms of coal production and employs nearly 4.25 Lakh personsand is the largest corporate employer in the country. It is one of the largest Companies in thecountry, turnover being around Rs. 386.31 billion in 2007-08.

NCL Northern Coalfields Limited was formed in April 1986 as a subsidiary company of CoalIndia Limited. Its headquarter is located at Singrauli, Distt. Sidhi (M.P.).The area of SingrauliCoalfields is about 2202 Sq.Km. The coalfield can be divided into two basins, viz. Moher sub-

basin (312 Sq.Km.) and Singrauli Main basin (1890 Sq.Km.). The present coal mining activitiesand future blocks are concentrated in Moher sub-basin. The exploration carried out byGSI/NCDC/CMPDI has proved abundant resource of power grade coal in the area. NCL

produces coal through mechanised opencast mines.

Singareni Collieries Company The Singareni Collieries Company Limited (SCCL) is aGovernment coal mining company jointly owned by the Government of Andhra Pradesh andGovernment of India on a 51:49 equity basis. The Singareni coal reserves stretch across 350 Km

of the Pranahita, Godavari Valley of Andhra Pradesh with a proven geological reservesaggregating to whopping 8791 million tonnes. SCCL is currently operating 13 opencast and 42underground mines in 4 districts of Andhra Pradesh with a manpower around 78,000.

COAL ENERGY RESEARCH CENTRES

Central Institute of Mining and Fuel Research (CIMFR) The newly formed national
http://bccl.cmpdi.co.in/http://bccl.cmpdi.co.in/http://www.coalindia.nic.in/http://www.coalindia.nic.in/http://ncl.gov.in/http://ncl.gov.in/http://scclmines.com/http://scclmines.com/http://cmriindia.nic.in/http://cmriindia.nic.in/http://cmriindia.nic.in/http://scclmines.com/http://ncl.gov.in/http://www.coalindia.nic.in/http://bccl.cmpdi.co.in/


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laboratory, the Central Institute of Mining and Fuel Research (CIMFR) Dhanbad, is a constituentlaboratory of Council of Scientific & Industrial Research (CSIR) and aimed to provide R&Dinputs for the entire coal-energy chain from mining to consumption through integration of thecore competencies of the two (CFRI & CMRI) premier Coal institution of the country.

Coal Demand Projections

Sector--wise Projected Raw Coal Demand in 2024 25

Power(Utility) Power(Captive) Steel Cement BRK & Others Total Demand

Demand (Mt)

7% GDP Growth 719 102 97 113 116 1147

Share ofTotal (%) 62.69 8.89 8.46 9.85 10.11 100

Demand (Mt)8% GDP Growth 804 112 105 123 123 1267

Share ofTotal (%) 63.46 8.84 8.28 9.71 9.71 100

Investment / Cooperation Opportunity in India

-Development of UG projects with Longwall / mass production technology.-Extraction of Pillars by Longwall / Shortwall tech.-Manufacturer of spare parts for mining equipment in India

-Technology for deep shaft sinking

CLEAN COAL TECHNOLOGIES:-UG Coal gasification

- Coal liquefication

-Setting up of washery-CBM / CMM / AMM exploration & exploitation.-Quantum jump in production from 400 to 1200 mt in future provides enough opportunities forUS

INVESTMENT.AREAS OF INTEREST FOR INDIAN SIDE

-Coal Bed Methane


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-Clean Coal Technology (Coal Washing) and-Power Generation from Washery Rejects-Coal Liquefaction Project in India Mine Closure-Coal Mine Safety Issues-US Regulatory framework for development & exploitation on CBM & UCG

-Sharing of US Regulatory framework for Environment-Mine Rescue setup, facilities & Operations

Coal India Profit Beats Estimates on Higher Demand, Lower Wages

Coal India Ltd. (COAL) , the worlds biggest miner of the fuel, reported a better -than-expected35 percent increase in fourth-quarter profit, aided by increased shipments and a decline in wagecosts.

Net income climbed to 54.1 billion rupees ($973 million), or 8.58 rupees a share, in the threemonths ended March 31 from 40.13 billion rupees, or 6.41 rupees, a year earlier, the companysaid today in a statement. The median of 34 analyst estimates compiled by Bloomberg was a

profit of 49.6 billion rupees. Sales rose 2.5 percent to 199 billion rupees.Coal India , which accounts for more than 80 percent of the nations production of the fuel, plansto boost output this year to bridge the gap between demand and local supplies. The company hada cash reserve of 622.4 billion rupees as of March 31.Shipments rose to 130 million metric tons in the quarter, while output declined to 143.3 milliontons from 144.6 million tons a year earlier, the company said in the statement. Employeeexpenses dropped 21 percent to 74.7 billion rupees.Coal India shares gained 1.2 percent to 313.80 rupees at the close of trading in Mumbai. The keyS&P BSE Sensex rose 1.7 percent. The earnings were announced after trading ended.

Indias coal production has increased from 431 million tons (MnT) in 2006 -07 to 554 MnT in2011-12 (an increase of 28.5%). On the other hand, demand for coal has grown at a CAGR ofmore than 7% in the last decade and has reached around 696 MnT (2011-12) as against the

production growth of 5%. It is further anticipated that coal production will grow at a CAGR ofaround 7-9% during 2013-14.Coal imports to India began as early as 1895 from UK at first. Import has expanded by more thanfour times in the past 10 years. India imported 23 MnT in 2002-03 which moved up to 99 MnTin FY 2012 and crossed 100 MnT in April-December 2012. Imported coal accounts for nearly15% of the total coal consumption in India. At the termination of 12th five year plan, demand forthermal coal is estimated at around 913 MnT with an indigenous supply of nearly 760 MnT withCIL accounting 595 MnT in all. This will create a gap of about 165 MnT. Total Coal imports to

India is estimated to cross 200 MnT in the ongoing Five Year plan (2012-17).
http://www.bloomberg.com/quote/COAL:INhttp://www.bloomberg.com/quote/COAL:INhttp://topics.bloomberg.com/india/http://topics.bloomberg.com/india/http://www.bloomberg.com/quote/COAL:INhttp://www.bloomberg.com/quote/COAL:INhttp://topics.bloomberg.com/india/http://www.bloomberg.com/quote/COAL:IN


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CONCLUSION

Thus Coal is the largest source of energy for the generation of electricity worldwide, as well asone of the largest worldwide anthropogenic sources of carbon dioxide releases. In 1999 worldgross carbon dioxide emissions from coal usage were 8,666 million tonnes of carbondioxide. Coal-fired electric power generation emits around 2,000 pounds of carbon dioxide forevery megawatt-hour generated, which is almost double the approximately 1100 pounds ofcarbon dioxide released by a natural gas-fired electric plant per megawatt-hour generated.Because of this higher carbon efficiency of natural gas generation, as the fuel mix in the UnitedStates has changed to reduce coal and increase natural gas generation, carbon dioxide emissionshave fallen. Those measured in the first quarter of 2012 were the lowest of any recorded for thefirst quarter of any year since 1992.

Coal is extracted from the ground by coal mining, either underground by shaft mining, or atground level by open pit mining extraction. Since 1983 the world top coal producer has

been China, in 2011 China produced 3,520 millions of tonnes of coal 49.5% of 7,695 millions

tonnes world coal production. In 2011 other large producers were United States (993 millionstonnes), India (589), European Union (576) and Australia (416). In 2010 largest exporters wereAustralia with 328 million tonnes (27.1% of world coal export) and Indonesia with 316 millionstonnes (26.1%) while largest importers were Japan with 207 million tonnes (17.5% of world coalimport), China with 195 million tonnes (16.6%) and South Korea with 126 million tonnes(10.7%).
http://en.wikipedia.org/wiki/Electricity_generationhttp://en.wikipedia.org/wiki/Anthropogenichttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Carbon_dioxide_emissionshttp://en.wikipedia.org/wiki/Coal_mininghttp://en.wikipedia.org/wiki/Shaft_mininghttp://en.wikipedia.org/wiki/Open_pit_mininghttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Open_pit_mininghttp://en.wikipedia.org/wiki/Shaft_mininghttp://en.wikipedia.org/wiki/Coal_mininghttp://en.wikipedia.org/wiki/Carbon_dioxide_emissionshttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Anthropogenichttp://en.wikipedia.org/wiki/Electricity_generation

study of coal industry

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