For dimension stones, size and appearance of product is a major criteria. Within limits transport or processing the bigger the better. The bigger the block betters the returns. This demand for special methods. In the case of waste in all cases the biggest possible size that can be loaded, hauled and dumped safely will be the criteria. For in situ weathered mass of waste the blasting methods can be same for both conventional mining and for mining dimension stone. For producing, sizing and handling of dimension stone (blocks) methods vary and calls for high levels of precision. A small error in placement of drill hole, in depth, angle etc can damage the block beyond repairs.  Earlier dimension stone mining was totally labour oriented but now mechanisation in many areas has come in. Heavy earth moving machinery, state of the art drills mechanised cutting methods, larger cranes are now in use. These have the advantage of lesser waste generation, availability of bigger blocks. Unlike others the extent of areas is limited and hence a cluster of mines operate in close proximity. Loading of blocks may be round the clock as it needs to carted for export.

2.0 The process of mining can be broadly divided into

a)         Clearing of  top surface and also removing  of weathered mass, non saleable sized boulders

b)        Checking, determining and aligning of cut

c)         Cutting out of larger size mass  from in situ strata

d)        Inspecting  determining  ,marking , cutting of  blocks and dressing the edges

e)         Handling including loading

3.0 Occupational Health

3.1.0. Dust related Disease – Silicosis

Compared to other minerals concentration levels of silica in granite dimension stone mining is far higher. When silica dust is inhaled it leads to silicosis. Silicosis is an irreversible respiratory disease. Also Dust reduces visibility in the work area and could lead to accidents.

3.1.1 Sources of generation

• All drilling areas including wet drilling unless the dust is collected and disposed before getting dried or the area blasted.
• Slush from wire saw or any such device cutting with abrasion. In this case dust raised after getting dried will contain higher percentage of respirable dust as compared to any other source
• Loading /unloading of blasted waste

3.1.2 Controls

• Slush should be collected allowed to settle and disposed properly
• In the case mines below ground level the respirable dust could remain air borne for considerable period of time, therefore control generation of dust at source. Also where possible general wind direction should be considered for entrance/ exit from pit
• Regular wetting of Haul roads if need be with additives
• Keeping Excavator and dumper cabins closed

Dust masks cannot control where concentration levels are high or where the do not fit the wearer properly due to beard, protruding cheek bones etc.

3.2.0 Hand arm Vibration

3.2.1 Sources

Manual operation of jack hammer and equipments like riveting etc  are  cause for hand arm vibration.

3.2.2 Disease and symptoms

This leads to a disease known as carpal tunnel syndrome. Carpal Tunnel Syndrome is a nerve disorder in the hand that causes pain and loss of feeling, especially in the thumb and first 3 fingers. Other signs and symptoms are

1. Tingling or numbness in part of the hand.
2. Sharp pains that shoot from the wrist up the arm, especially at night.
3. Burning sensations in the fingers.
4. Morning stiffness or cramping of hands
5. Thumb weakness.
6. Frequent dropping of objects.
7. Inability to make a fist.
8. Shiny, dry skin on the hand

3.2.3 Control

1. Automation in drilling
2. Rotation of manpower
3. Use of weights reducing force and time for manual holding (Fig below) Two weights of about 8-10 kg are hung one on each side of handle through a loop made with hose pipes. Dead end stoppers are put on the handle. After collaring and drilling about 30 cms these weights are hung later addition of rods and drilling from 800 to 1600, 2400mm lengths can be done. This reduces exposures levels.

3.3.0 Whole body vibration

3.3.1 Sources

Whole-body vibration is the vibration and shock you feel when you sit or stand on a vehicle or machine travelling over rough ground. Vibration transmitted to the body through the supporting surfaces such as feet, buttocks or back is known as whole body vibration (WBV).Shocks can occur, for example, when driving over bumps or potholes , seat-transmitted vibrations from dumper, dozer, shovel, backhoes, wheel loaders, road graders, etc.; Operating of heavy earthmoving machines causes whole body vibration.

3.3.2 Disease and symptoms

This is a major contributory factor for back pain. Diseases of spinal column: These are very common and associated with long-term exposure to whole-body vibration. The back is especially sensitive to the 4-8 Hz vibration range. WBV exposure has been linked to severe lower back pain (lumbar spine) and degeneration, bucking/ slipping of the lumbar discs. Chronic exposure to WBV takes some time before lower back problems develop.

3.3.3 Control measures

1. Fit  machines  with vision aids such as convex mirrors and CCTV to minimise the need for operator to twist or stretch
2. Do not use high way trucks use in the mine as their suspensions are not designed for rough roads.
3. Poor inflation procedures add up to increased levels of vibration, ensure proper inflation pressure
4. Maintain proper drains to avoid deterioration of haul roads
5. Do not install speed breakers , ensure speed and lane  discipline
6. Maintain proper check on hydraulic jacks to avoid jerky raising or lowering
7. Ensure suspension system for body and cabin are in order
8. Driver seat being the one that transmits vibration it is necessary that it is maintained in order
   1. Seat adjustment controls should be readily accessible and  easy to use.
   2. Maintain seat and cabin  suspensions in order
   3. Do not arrest seat cushioning by blocking
   4. Size, and position of contact of seat belts with body should not hinder free movement of limbs

3.4.0 Noise Induced Hearing Loss

3.4.1 Source

Proximity to HEMM, drills, blasting etc

3.4.2 Disease

Partial or total loss of hearing. Hazardous noise can destroy the ability to hear clearly and may also put stress on other parts of the body, including the cardiovascular system. It can also make hearing sounds necessary for working safely, such as instructions or warning signals, more difficult and therefore can contribute to accidents

3.4.3 Controls measures

Ear muffs though reduces levels are PPEs only. These may not be used due to heat etc.  It protects the wearer only and not others. Closer proximity to compressor excavator leads to Noisy environment and in turn to distraction and accident. Reducing the risks by means of administrative controls e.g., job rotation etc. in combination with the use of personal hearing protectors can work but provides the least desirable noise control measures. Monitoring ambient air quality, noise mapping are some pro active measures and monitoring health of workmen by conducting periodical medical examination could be a reactive and indicative solution post –facto in nature.

4.0 Blasting hazards

In conventional mining blasting would mean fly rock and prior to blasting moving of men machines to safety. In dimension stone mining blasting could be either only to size /trim a block or to reduce waste to manageable size for loading and hauling.  This is done pop shooting.

While the former does not usually release any fly rock and even stray pieces will neither be big nor carried far off, the later does and that too granite being hard and brittle, throw could to longer distances. The throw remains more unpredictable as the waste rock has free face in all sides. Effort is to just reduce to a size convenient for handling by excavators and dumpers and use as less of explosives as possible.

Any lacuna in communication for evacuation could result in fatality more so when the operations are in a cluster with common boundary etc.

5.0 SIZING / splitting of blocks

The process  involves cutting out  from the parent mass sizes as large as possible, inspecting  thoroughly for non conformance like cracks, joints, intrusions etc, mark marketable zones confirming to size requirements and slice  or split them out. The block structure will be determined by jointing parameters like the number, their orientation, distance between, length etc., All these   need expertise and close observation

5.1 Marking hazards and controls

The job of marking the blocks to be cut is done manually. The marker needs to go all around the blocks and gets engrossed in closer inspection of blocks. Chances of Any loose material falling and head injury would need to be considered and therefore calls for inspection of site before marking. Using PPE only may not be a solution and could give false security feeling only

5.2 Splitting methods

Splitting of blocks is done by any of the following methods

1. feathers and wedges,
2. splitting with explosives
3. with the use of cracking powder

All these methods involve drilling of holes. Therefore it is necessary to ensure that the block is safely approachable and is standing on safe base.

5.2.1 Splitting with feathers and wedges hazards and controls

A mass standing safe while drilling may loose its equilibrium at the time of splitting tilt and injure. This happens when such splitting or dressing is done with feathers and wedges and the rock tilting .Also where there are veins passing through at an angle to line of split such tilt could occur.

Heads of wedges flare out due to repeated hammering. The head could chip off and enter in the body. Such injury though appearing superficial could result in major injury, hospitalisation etc. Therefore a regular trimming is needed.

5.2.2 Splitting with explosives:-

Splitting with explosives involves drilling of a series of closely spaced holes in line, charged with low explosive cartridges like gun powder and instantaneous detonators and blasted. Alternatively, detonating cords may be used. The detonating cords are inserted into the holes and the holes are water stemmed and fired to trim  the blocks or cut into smaller ones . The general tendency is to stand close to the area. If it is close the fly rock can injure . Also the air blast due unconfined detonation of Detonating cord  can lead to deafness. Also gun powder is hazardous and can burn/ burst due to sparking etc.

5.2.3 Line Drilling and Cutting  with cracking powder (non explosive material)

Against conventional explosives now we have a powder (Under various brand names Crack AG, Split Ag, Bristar etc) that is mixed with water and poured in the drilled holes. This mix expands and exerts pressure on the drilled hole walls and cracks through the direction/ alignment of holes.

These soundless Cracking Agents are environmental friendly non-explosive demolition agent used in quarrying of Dimension stone and demolishing of structures. When mixed with clean and cold water to be mortar and poured into pre-drilling holes of rock and concrete, it swells and exerts expansive capabilities on the hole-wall at a unit value of more than 50 Mpa (500kg/cm2) and is strong enough to cut and crack concrete, marble and granite after a certain period with no noise, no vibration, no ash, no toxic gas and no fly rock. No special security required for storage. The material with cracks can be easily removed with a pick hammer, a pneumatic breaker, an excavator, etc.

Blown out Shot—Hazard

A blown-out shot is that the mix filled into a hole spurts out from the hole when it is not used properly. The blown-out shot occurs in succession 3-4 times after it occurs once, and it may occur in other holes. Therefore, do not rush to field when the blown-out shot occurs. The mix consists of an inorganic compound mainly made of a mixture of calcium oxide and calcium silicate etc., and it is not toxic. However, it is a highly alkaline product and in case of contact with eyes risk of loosing sight exists.

Control measures To Prevent Blown-out Shots

• Use within recommended  ranges of , hole diameter, and use cold water Do not mix over one bag 5 kgs, with water at a time.
• Mixed with water should be poured into holes within 10 minutes. (Do not leave in a mixing container. Remaining mix should be diluted with a plenty of water and then disposed of on open ground.)
• Do not tamp the entrance of the holes with sand, mortar or any other materials.
• Do not tamp holes with a bar.
• Do not use hot water.

Safety Precaution

• Use Safety goggles, dust-proof mask, and rubber gloves while preparing, mixing and filling.
• Plug the holes immediately after filling and cover the holes with  straw  mat.
• Keep your face away from the holes filled by mortar. Stay away from filled holes at least 3 hours after filling to avoid blow-out shot.
• Keep people away from job site after filling.
• In case of contact with eyes and skin, either in dry or wet form, wash them Immediately with large amounts of cold and clean water without rubbing. Consult doctor quickly.

5.2.4 Diamond wire saw hazards and controls

A long loop of small steel cable, impregnated with industrial diamond segments, cuts the sections free from the bed of the quarry. The principle of wire sawing is to pull spinning continuous loop of wire mounted with diamond steel beads through the granite rock to provide cutting action.

The area of operation of wire saw needs to be barricaded.  Usually once operation starts it is continued till completed. The duration depends upon hardness and total area to be cut. Hence the area needs proper illumination as well.

5.2.5 Jet flame cutting: The rock is cut by creating fractures into layers with a thermal jet flame burning at approximately 3,000 degrees Fahrenheit. This high-velocity flame, created by burning oxygen and fuel oil, causes a continuous flaking action. The hot material gets thrown out from confined atmosphere. Care has to be taken while handling oxygen, fuel as well as the nozzle. Over heating of nozzle heat up can result in backfire , and burn injury. Proper storing of fuel and emergency preparedness to deal fire should be considered.

6.0 Manual dressing (trimming) of block hazards and controls

As a part of processing edges are trimmed to get the block to a near rectangular shape.

This job is done manually with chisel shaped and wedge shaped hammers. Such shaping is done locally by heating and shaping.. Heating disturbs the structure and hammer tends to chip out.

Handles of hammer are locked with hammer by using   nails etc. Nail tends to get loosened and hammer flies out, the hammer man looses balance (For dressing purposes it becomes necessary to stand near the edge of the block) and helper gets injured with the hammer that flies out.

After completion of an edge the block needs to be turned. This activity needs closer supervision to ensure the blocks remain stable and activities of turning are done with care.

7.0 Slope stability hazards and controls

By virtue of its appearance a general feeling will exist that stability of slopes may not pose a problem. Areas to be monitored are

• seepage zones of water  between layers, veins, dykes,
• contact zones between weathered and un weathered mass ,
• cracks induced pre and post blast,
• cracks radiating out of jet flame cutting  that can induce unstable slope. As these may  will not be visible immediately but only when mass cools down
• In case of deposits below ground level and also close cyclone prone coastal areas, drainages to divert water at pit top itself will be another thing to be looked into. If not done the top weathered mass could along with boulders wash down into the pit .
• While working close to dykes , contact zone can open out when stress is released by cutting out blocks and when the remnant mass is standing at an angle in favour of fall

8.0 Illumination hazards and controls

Conventional mining activities like drilling, loading, hauling etc may be confined to day light hours. But operation of wire saw, loading etc are carried beyond day light hour also Loading operations with cranes require proper glare free lighting. Blinding glare while lifting, swinging etc can lead to accidents.

9.0 Hazards in use of cranes:-

Cranes of varying capacity are regularly used for lifting, loading of blocks. These cranes may be fixed or portable. Along with crane wire rope slings, anti slip hooks are also used. Accidents related to crane operations involve falling, dropped, or swinging loads Slings and other fastenings sometimes break/ slip off, Overturning the crane (extremely dangerous and damaging), boom collapse. power lines and other overhead obstructions. slipping and falling while mounting and dismounting etc.,  Serious hazards include overloading, dropping or slipping of the load caused by improper hitching or slinging, obstruction to free passage of the load, and using the machine for a purpose for which it was not intended or designed

Standardized signalling between the ground person and crane operator is very important to safe operation. Taglines must be attached to loads that may require steadying or guidance while suspended. Hitches and slings must be suitable for the particular material handled.

Everyone, including the ground crew, must stay clear of suspended loads.

In corrosive atmosphere periodical structure check , anti rust coatings etc should be made Life history of chains, slings, ropes are used to fasten the load for lifting should be maintained , regular check and replacement procedures should be made

The lifting ability of a crane depends primarily on balance, rather than engine power therefore adding of counter weight beyond manufacturer’s recommendation should not be done. A crane can lift maximum loads only if the boom is held high enough to keep the load close to the crane. A crane can handle lesser loads with greater safety and convenience if the loads are close enough so that there is no question about stability. This practice does, however, involve two dangers – the boom falling over backwards; and overturning the crane by abrupt swinging.

9.1 Few accident Scenarios with cranes

Failure to Use Outriggers;

Soft Ground and Structural Failure. Crane toppling can occur when an operator does not extend the outriggers or when a crane is positioned on soft ground. Accidents involving outriggers occurred when the crane operator was either swinging the cab or extending or lowering a boom without outriggers extended

Outriggers reduce the overturning moment and increase the stabilising moment by simply moving the reference point closer to the load (and further away from the counterweight and crane carrier). A consequence of using outriggers on a crane is that the total weight of load and crane will be concentrated onto the area covered by the outrigger pads. This can reach very high pressures, and for this reason extra large pads are often employed to distribute the weight over a greater area and ensure that the crane does not fall through pavements, sink into soft ground or crack surfaces.

Pinch points

There are two types of crane pinch points:

1. Within the swinging radius of the rotating superstructure of a crane in areas in which people may be working, is a pinch point where people can be crushed or squeezed between the carrier frame and the crane cab, or the crane cab and an adjacent wall or other structure.

2. Many unguarded gears, belts, rotating shafts, etc., within the crane are pinch points to which employees may be exposed. In all of the known cases where someone entered the danger zone and was caught in a pinch point, the danger zone was outside the crane operator’s vision.

Obstruction of Vision

The crane size alone limits the operator’s range of vision and creates many blind spots, preventing the rigger, signaller, oilman and others affected by the crane’s movement from having direct eye contact with the crane operator. When a cab controlled mobile crane is moved or travels back and forth, the operator must contend with many blind spots on the right side of the crane.

In many instances the work environment requires that loads be lifted to or from an area that is outside of the view of the operator. The crane boom may obstruct the operator’s range of vision on the right side.

Toppling Mobile cranes : Hydraulic Cranes Because of a high centre of gravity, can easily topple and crush the operator between the boom and the ground.

Boom Disassembly on Latticework Boom Cranes

If a boom is not blocked, improper disassembly can cause it to collapse upon those who are removing pins under the boom while the boom is suspended.

9.3 Some misconceptions about crane safety

Overload

Conception – that the manufacturer built a big safety factor into the design is not true of the whole crane system. Chain hoists are required to have an overload protection system, but wire rope hoists are not.

Side Pull

Conception – That as long as the hoist has enough rope, can pull a small load is not true.

Side pull can cause the wire rope to come out of its grooves and rub against the rope or drum, resulting in damage, and /or the rope jumping out of the drum and tangling itself around the shaft,

Upper Limit Switch

Conception – Load can be lifted till we hit the upper limit switch is not true. Upper limit switch in a hoist is designed to prevent the hook assembly from colliding with the drum. It is a safety device, not an operational device. If the ultimate upper limit switch fails, the hook block and the drum will collide and the wire rope probably will fail, dropping the load.

Reverse Plugging Speed Control

Conception- When the crane is travelling in one direction, the easiest way  to control velocity is to operate the reverse button is not true. With present cranes until the crane comes to a complete stop, the reverse button does not work.

9.4 Some do’s & don’ts

1. Do watch Ground personnel who can be caught in rigging if the crane operator begins hoisting while they are still making adjustments.
2. Do not use spare parts of unknown or doubtful origin.
3. Never intentionally allow the load to tip over.
4. Never use the lifting chain as a sling.
5. Never attach a sling on the tip of the hook (risk of hook being damaged and load falling).
6. Never use the hook in a slanting position.
7. Never twist the lifting chain (risk of pulley block turning over, etc.).
8. Do not leave a load suspended unless absolutely necessary.
9. Never use the equipment as an earth for welding.
10. Do not use the safety devices as a means of measuring laden weight.
11. Do not operate jerkily as this provokes deterioration of the equipment.
12. Never pull the load sideways, bring the equipment to a position above the load before moving it.

10.0 Tripod and chain pulley blocks:-

These are used in smaller mines for loading blocks into trucks.

1. The block dimensions should measured and weight calculated to determine capacity of tripod legs, pulley blocks, ropes etc
2. Tie braces should be in position to avoid opening out or buckling of legs
3. Fasteners should not be of Mild steel that can elongate and shear
4. Legs of tripod should be in firm ground to avoid tilting on load
5. Operation of pulley blocks should be smooth and not jerky
6. Load should raised only to just required height
7. Tripods, tie braces, Stacking of cut blocks
8. Tripod clevis bolt should be regularly inspected for cracks and looseness of nut

11.0 STACKING for dispatch

Easy identification and stacking for retrieval of blocks is a must. Path for approach of   crane to lift and load should be clear and not congested. Where possible data of location of blocks origin, date, size, number , stack location etc helps easy retrieval .

Conclusion

With the amount of mechanisation and attendant hazards involved it is necessary that each mine undertakes detailed identification of hazards assess the risk rate them and initiate control measures. The above paper deals this aspect in a broad spectrum and site specific study is necessary.

The paper describes some practical methods of selecting optimal blasting parameters and assessing blast fragmentation. Optimising of blast design is a general term which indicate the minimum combined cost of all unit operations including drilling , blasting, loading , hauling and crushing. Blast design is related to a host of complex factors related to the rock, explosive, initiation, drill holes and their layout. It is well understood that a blast cannot  be both cheapest and optimum.The studies were carried out at Bolani Iron Ore Mines of SAIL. The investigations included study of the blast parameters in vogue in the mine and the blast performances , study of blasting economics . Based on the observations a comparative study was done to determine the effect of one parameter on another with a view to select best suitable parameters for  optimal equipment performance. Photographic observations were made and attempts were made to suggest a model which can predict blast fragment distribution for heterogeneous iron ore . It was observed that Rossin Ramler or Sve-Defo distributions did not match with the distributions obtained from the photographic observations. Hence, the author  has tried to describe the nature of the distributions obtained from the photographic observations.

INTRODUCTION

As the mining industry faces mounting challenges of winning minerals and metals from more difficult,  leaner and deeper ore bodies, better blasting techniques has to come to rescue professionals for sustaining the mineral production activity at an ever increasing rate.There is a tendency among mine operators to minimise the direct cost of primary blasting without fully realising the implications on the following factors :

-   fragmentation

-   cost of secondary breakage

-   percentage of fines created in  the blast

-   overbreak, ground vibration, fly rock, slope stability .

-    the indirect effect on cost of crushing, loading and hauling operations.

The lowest overall cost of mining will be achieved only through optimum blasting. Achieving optimum blast round is a complex task which requires  the matching of energy level of the explosive, rock properties and blast geometry together with personal judgment. The measure of the effectiveness of drilling and blasting subsystem is not the expense alone but rather the contribution to the efficiency and economy of the total excavation system. Saving, realised through excessive cost cutting in drilling and blasting programme, may well be lost by increased loading, hauling and crushing cost.

Introduction to Bolani

The iron ore mine at Bolani (Keonjhar Dist ,Orissa) under the Raw Materials Division of SAIL, was opened in 1960,  and produces about 3.00 MT of iron ore annually for Durgapur Steel Plant .

The working areas at Bolani during the study included  ‘F’area mechanised mine, ‘D’ area semi mechanised mine and Panposh mine with semi mechanised mining. ‘G’ area was under  exploration in order to meet the future requirements of the steel industry.

The ROM ore is fed into a 13716 X 18796 mm (54”X74”) gyratory crusher  at the hill top plant.

Rock Characteristics at Bolani Ore Mine

The ore deposit is of pre-Cambrian age, formed by process of enrichment in the host rock of Banded Haematite Quartzite(BHQ)/Banded Haematite Jesper(BHJ) in the high pressure and high temperature zone, blue dust had been formed having higher percentage  of Fe with slightly  more Silica content . In lower benches, hard massive ore had been ascertained.

Existence of various type of ore in a face considerably influence blasting practices. Localised fold, dip and cracks effect the blasting operation also.

Table 1 : Ore types at Bolani Iron Ore Mine and their charecteristics

Blast Geometry

On an average the blast geometry at ‘F’ area in Bolani was as follows :

Explosives used

Table 2 : Technical details of some explosives used at Bolani and their landed coats at Bolani were as follows:

Other than the above explosives like Indomite, Indoprime of IBP Ltd., Nitraboost & Nitrablast  of Orissa Explosives, Oreboost & Oreblast of Orient Explosives,  ToeBlast & Supergel of IDL,  LOX from Derby Industries etc. were also in use at Bolani.

Constraints on Blasting at Bolani :

*           As the magazine capacity  was low there was  no choice on explosive but  to control a blast by its blast geometry and explosive quantity.

*           Faces were small and bench heights are not uniform. Larger blasts could not be designed at a time. A reason for this was the pending forest clearance due to which top benches could not be excavated. Another reason for small faces  was the centralised location of  BHJ/BHQ rock mass at ‘F’area.

Study of Blast parameters

Conclusions have been drawn on the basis of  field observations of blast parameters vs. blast performance in terms of boulder count, fines generation, shovel cycle time, for 150 mm blast holes . It has been found that the best suitable burden for Bolani is 3.65 to 3.96 m. The best powder factor being 0.15 to 0.20 Kg/t and a cost of Rs 4 to 5 should not be considered very high . All these have been justified keeping in view a boulder free, back break free and a good shovel cycle time  of below 30 seconds. Fragmentation being such as to give no detrimental effects to shovel health.

In order to help analysing the parameters following charts of comparative study have been made :

Analysing the Burden

Hence 3.66m to 3.96m( 12 to 13 ft.)  burden is best suitable.

Analysing the powder factor

Powder factors were analysed at the following levels :

At 0.10 to 0.15 Kg/t :  Shovel cycle time was moderate. Boulder count was also less.However, number of observations were less ,  Cost is also low.

At 0.15 to 0.20 Kg/t and At 0.20 to 0.25 Kg/t :Shovel cycle time was low,  boulder generation was moderate, cost was moderate

At 0.25 to 0.3 Kg/t :   Cycle time was moderate but high boulder count and high cost.

At  0.3 to 0.35 Kg/t :    Cycle time was very low, boulder generation was less and cost was high.

0.10 to 0.15 Kg/t  appears to be the best range. However, from personal experience 0.15 to 0.20 was the suggestible range for each blast.

Analysing the Cost

Cost to shovel cycle time and powder factor showed that the more we pay the better results we have . In shovel cycle time a range of Rs 1 to Rs 2 also showed a good cycle time achievement ,but, it was based on less number of observations.

However , for general guidance a cost of Rs 4 to Rs 5 may be acceptable as an optimum range .

It is advisable to analyse on the basis of technical parameters of explosives also including relative weight strength, relative bulk strength and velocity of detonation . However the above could not be done as the information on technical parameters of all brands of explosives was not readily available.

Study of fragmentation distribution

Photographic techniques were used to asses the fragmentation of the blasts. The general method of the photographic technique for fragmentation size distribution assessment involves taking photographs of a muckpile at intervals  throughout the excavation process. Photographic methods are in so far advantageous  as the blasting results can be documented very quickly. In addition the measurement of rock fragmentation using photos is independent from the mining process in the quarry. However, an important assumption in this method is that the dimension which is not visible in the photograph is minimum.

Sophisticated methods of blast fragment assessment are available , involving scanning of photos and use of computer packages. However, a simpler method , which was used in the study, includes taking photograph with scaling board placed on the rockpile surfaces[Kumar Sanjay ,1996 and  Dey, Gupta & Singh 1996]  for references purpose  and later the  whole muck fragment on photograph is converted to actual size with the help of scaling board. The techniques main limitation is its accuracy, due to several errors which may be introduced . Therefore, the accuracy of the photographic assessment technique depends on controlling the source of these errors and minimising their magnitude.

The greatest error in all photographic techniques is caused in the selection of suitable photographs. Noren & Porter [1974] found that the surface  size distribution  of a muckpile  was not representative of the whole muck pile. Just [1979] suggested that the photographs taken  of the digging face were not representative  due to rolling of surface material down the front of the face. In general photographic techniques  do not quantify fines  and are biased towards larger sizes. Proper correlation for missing fines has to be estimated.

Assumptions for  calculating mass in each size range has been considered to be of shape of a sphere of the mean size as diameter. For calculating fines, the total area of the photo was calculated and from which the area of the demarcated stones subtracted. This remaining area has been considered to be 1 cm deep. i.e. Depth of fines assumed to be 1 cm. It may be noted that , the photographs are not of the whole blast, They are a sample drawn from the blast.

Table 3 : Percentage mass passing for each characteristic size

Attempts have been made to establish a linear relationship between percentage mass passing and fragment size, from the photographic observations enlisted in table 4 as Case 1 to 7. It has been seen that the actual curves follow a linear trend beyond a certain fragment size. This minimum fragment size has been termed as C in table 4 . The linear curves after the minimum point C are of the general form

y = Ax – B                     …(I)

Where, y = Percentage mass passing at sieve size x cm.

A ,B and C are constants having values as enlisted in table 4.10.

Another constant D has also been observed . D is the maximum fragment size. In other words the fragmentation distribution varies largely between sizes C and D . Between C and D it follows a straight line of the form y = Ax – B.

Table 4: Linear equations of fragment size distributions obtained in cases 1 to 7(C&D in cm).

From the Table 5 attempts have been made to establish relationships between constants A,B , C and D and blasting parameters as well as rock parameters. As iron ore at Bolani is highly heterogeneous it was difficult to interpret  precisely on which factors A, B, C and D are dependent. However, it is clear that there exists a relationship of the form y = A x – B and  constants C and D for each graph of percentage mass ‘y’ passing a sieve size ‘x ‘. Wherein the maximum and minimum fragment sizes in cm are D and C respectively, and between C and D the distribution follows a nearly straight line of the form y = Ax – B.

Conclusion

When the studies were started at Bolani Iron Ore Mine the basic problem was generation of boulders. The problem was, however, overcome with the coming up of the new ore processing plant  where the feed size was increased to 1.2m (max.) or 54 inches . However , with the increase in feed size there was no considerable decrease in the usage of explosive

It is well understood that a blast cannot  be both cheapest and optimum. However, from the observations it was seen that LOX and ANFO have given both cheap and near optimal blasts. These were the cheapest of  the explosives that were in vogue at the mine. However, if the unsafe element of LOX is not considered , it is the best suited explosive for the rock, provided it is safely and judiciously used. LOX being a powerful explosive does not need charge in quantities like other slurry explosives or ANFO.  LOX can also be deck charged  in order to distribute the charge along the entire length of the column.

The studies suggest a very simple and elaborate way of assessing the optimal blast geometry and parameters for a blast. Further, as evident from photographic observations generation of fines was on the higher side. The fragmentation distribution was mostly around 10 to 25 cm whereas the required average size was 41cm for optimal results. There is a possibility of using explosives of higher relative weight strength with lower charge factors, maintaining the adequate burden of 3.66 to 3.96 m.  Air decking or  deck charging is a process that is very essential in order to distribute lower quantities of explosive along the column of the hole. This shall also reduce the unwanted fines generation.

From the recorded observations tables were made to asses fragment size passing a certain sieve size. Graphs of average sieve size and percentage mass passing were plotted. Comparisons were made with established graphs of Rosin Rammler. However, the actual graphs did not match with the Rosin Rammler distributions. The actual graphs obtained were  more  linear in nature .

References

1.     Naik P.C. , 1994, Trainers Manual of Mines Vocational Training Center, Bolani on Optimisation of Blasting Performance, MVTC Bolani Ores Mines, Bolani

2.     Noren C.H. and Porter D.D., 1974, A comparison of theoretical explosive energy and energy measured under water with measured rock fragmentation. Proc. 3rd Cong. Int. Soc. Rock. Mech., Denever, II, B, pp 1371-1376.

3.     Just G.D., 1979, Rock Fragmentation by blasting, CIM Bull, March 1979, pp 143-147.

4.     A. Dey, R.N.Gupta and D.K.Singh, 1996, Prediction and assessment of fragmentation resulting from opencast blasting, Proc. National Seminar on Drilling and Blasting, Drill Blast ‘96, Bhubaneswar, pp 32-37.

Energy is one of the key inputs for economic development. World energy consumption has increased at a CAGR of 2.1% in the past decade with the expected consumption of more than 128 Quadrillion kilocalories in 2010. Due to global economic recession there was decline in consumption in 2009 but as world economy is recovering the consumption level is expected to increase in future. World energy demand is predominantly met by oil but over the last decade oil’s share is on a decline.

Global Energy Outlook

Source: International Energy Outlook

Presently, the conventional sources contribute around 86% of global energy mix and are expected to reduce to 83% in 2030. The contribution from renewable is expected to increase to 11% from the existing 8%.

It is also important for developing countries like India and china to utilize their conventional sources of energy judiciously for ensuring sustainable development with due regards to environmental pollution.. In such situations investments in less explored energy sources like in-situ gasification of deep seated coal seams, extraction of Coal Bed Methane and CMM may prove to be useful. These sources of energy are clean and may help in reducing GHG emissions.

Energy Hungry India

India is facing challenges in meeting its energy needs, and needs to ensure sustainable development of existing resources. To meet the human development goals and eradication of poverty in next 25 years India needs to sustain 8% to 10% economic growth rate. India needs to increase its primary energy supplies by three to four times and its energy generation & supply capacity by five to six times.

Total installed capacity for power generation including all the captive power plants is around 1,64,000 MW and it must increase to 8,00,000 MW by the end of 2031-32, India would require increase in coal production capacity from present levels to over 2 billion tonnes/annum based on domestic quality of coal.

India’s energy is predominantly dependent on coal (accounting for more than 50% of the primary energy mix), followed by oil.

With domestic production not being able to keep pace with increasing demand, coal demand-supply deficit in India has been consistently increasing. India’s coal demand is presently about 550 million tones per annum out of which 9-12% are imported. The Working Group for Coal and Lignite for formulation of XI Plan has assessed coal demand of 713 million tonnes by the end of 2011-12, whereas the indigenous availability would be about 630 million tonnes per annum. Therefore, there is likely to be a gap of 83 million tonnes which will be required to be met through imports. According to the CIL estimates, it will have deficit of about 303 million tonnes by 2016-17 to meet the committments.

In order to bridge the demand supply gap, India cannot rely completely on imports. There is need to increase the domestic productivity by the key coal suppliers by use of improved and more efficient technologies.

The Integrated Energy Policy also emphasizes to meet the energy needs at least cost but through safe, clean, technically efficient, economically viable and environmentally sustainable manner. These requirements push the coal companies to invest in new safety technologies, clean coal technologies, innovative mining technologies and at the same time be responsive to the needs of society and environment protection.

CMM utilization has multiple advantages namely GHG emission reductions  and increased coal recovery due to improved safety in mines (due to lesser methane concentration in mines). CMM is used in power generation, vehicle fuels and cooking gas. The high concentration gas may also be used for LPG production.  CMM projects also have a additional revenue source through Certified Emission Reductions (CER) trade. Coal mining and CMM generation are related activities and the possible production technologies are discussed in next section.

Coal Production and CMM

Presently around 17% of coal production is from underground coal mines in India. Stripping ratio is a major determinant for choosing between opencast and underground mines in India. A significant proportion of Indian coal reserves are below the depth of 300 meters which is generally observed to be the limit of opencast mining for coal. Beyond 300 meters underground mining may be feasible. It is essential to continuously ventilate the mine to keep the concentration level of inflammable gases low for safe working environment in underground mining. The ventilated air majorly consists of methane from the freshly exposed coal faces. CMM technology focuses on capturing and utilization of methane from underground mines for its commercial utilization. Different ways of capturing CMM are:

1. Mine Pillar Methane (MPM): In this method methane is captured from the standing pillars of a developing or developed coal mine. Horizontal perforated pipes are drilled inside the coal pillars and a negative pressure is applied inside the pipe, which leads to the MPM to move towards the perforated pipe from where it is sucked to a storage tank placed at the surface.

1. Ventilating Air Methane (VAM): Methane is captured at the mine exhausts. The exhaust air from mine is first sent to methane trapping and collecting arrangement and then the rest of the air is discharged to the atmosphere.  This method may be employed along with the MPM method.

1. 3. Abandoned Mine Methane (AMM): Methane is captured from the abandoned mines. Mines which are declared abandoned before mining/exhausting all the coal as per initial production plans due to high methane buildup or other reasons may be opened up scientifically for AMM. This method of capturing methane can either be started by installing an exhaust fan at shaft mouth or by drilling and installing suction pipes to the developed mine galleries.

CMM Potential in India

Coal mine methane in India is majorly concentrated in five coal fields:

Source: CMPDIL – Methane to Markets initiative

Jharia and East Bokaro coalfields have comparatively high density reserves when compared to others. CMM potential in Jharia region has already been demonstrated by pilot plant in Moonidih mines. Jharia coalfields have many developed and abandoned mines which can be installed with CMM extraction and capture technologies. Indian CMM resources have a potential to support around 1000 megawatts[1] of power projects apart from earning carbon credits.

Though, there is huge potential for CMM utilization projects in India but there has been a little or almost no investments in such projects in India. This can be attributed to many factors including lack of policy support and absence of fiscal incentives. China and other countries have been successful in developing CMM projects in recent past due to favorable policies for CMM. Some of these projects in China have helped them in increasing the productivity of underground and opencast mines, which lead to existing coal production of two billion tonnes per annum. India should also implement conducive policies for the development of CMM utilization projects in Jharkhand and West Bengal.

Present Policies for CMM development in India

The Constitution allocates the subject of mineral development and regulation to state governments (entry number 23, State list (List II) of Seventh Schedule) subject to the law of Parliament (entry number 54, Union List (list I) of Seventh Schedule). The role of Central Government is limited by the boundaries set by such law, which in this case is MMDR Act, 1957.

As mandated by MMDR 1957, the Central Government has framed rules for regulating mineral related issues in respect of all minerals other than atomic minerals and minor minerals. The State Governments have framed the rules for minor minerals.

The power for framing rules and regulation for coal lies with central government. Ministry of Coal (MoC) is the administrative agency for coal sector development and regulation in India. Similarly Ministry of Petroleum and Natural Gas (MoP&G) administers the development of oil & natural gas in India. In 1997, Government of India recognized Coal Bed Methane (CBM) as natural gas and formulated a CBM Policy for the commercial exploitation of CBM under the purview of MoP&G.

[2] On a conservative side, around 2.5 million cubic meters of CMM is required for generating 1 megawatt of power for a year. With same conversion ratio, with 50% of recovery in Jharia, East Bokaro and South Karnpura area, the methane could support plants for generating 1000 megawatt for 25 years.

However, as per the Memorandum of Understanding (MoU) between MoP&G and MoC, recovery of CBM including those from post mining operations in the existing coal mining areas are to be under the  purview of coal producing companies. Hence CMM comes under the administrative control of MoC.

A MoU between Govt. of India (Ministry of Coal) and United States Environmental Protection Agency (USEPA) was signed on November 16, 2006 in Washington DC to establish CMM clearinghouse in India. The CMM clearinghouse is a non-profit, non-governmental organization established under the aegis of Methane to Markets (M2M) Partnership Program with an aim to facilitate commercial development of CMM. The clearinghouse has been established on November 17, 2008 at Central Mine Planning & Design Institute Ltd. (CMPDI), Ranchi. The main activities of clearinghouse are:

1. To study and develop solutions for overcoming barriers for project development and facilitate investment in coal mine methane extraction and utilization projects; and

1. To develop partnerships with government agencies, commercial enterprises, and scientific and public organizations of India operating in the areas of environmental protection, coal mining and other energy industry segments.

Though, with the assistance of clearinghouse, India has successfully completed a demonstration project[2] but it has not been able to attract significant investments into the large scale commercial tapping of the CMM utilization. China, Germany, Poland, USA and Australia are champions in CMM utilization projects with China being leader. A comparative analysis between Chinese and Indian policies for CMM capture and utilization are presented in table below:

[3] in Moonidih and Sudamdih mines of BCCL for CMM capture and utilization including power generation for 1 MW

Apart from policy risks there are other concerns for development CMM utilization project. For CMM development it is important to engage government coal companies as they are default owners of CMM in India. Various risks in CMM development are discussed hereof.

Risks in CMM development and Role of Coal Companies

The risks and roles of government companies in development of CMM in India are presented in table below:

Based on risk appetite a suitable risk sharing principle should be developed for CMM utilization projects in India. The possible way forwards are discussed below:

Possible Risk Sharing Models for CMM Projects

Role of government companies is significant in CMM development. Government companies may contribute to CMM development by identifying suitable blocks for private participation. In initial stages they can provide land, water and electricity to the private companies. If CMM project turns to be a successful project then government companies would have the benefits like less emission, increased safety in mines, electricity or gas from CMM utilization project, Carbon Credits and access to CMM technologies. Similarly, private companies would invest in commercial development of CMM projects.

Different business models may be arrived by production/revenue sharing principles where investment in capital and operation are being made by Private companies.

A typical 5 MW Power project running on CMM would require following:

Conclusion

For meeting the growing energy needs of Country it is important to increase production of coal within India in a sustainable manner. The coal production can be augmented by draining methane through different CMM technologies. However, the success of CMM development in India depends on Government initiatives to bring in policy changes including fiscal benefits for attracting private investments.

PPP based developed can be strongly supported to ensure faster development and also helps in better risk sharing. The suggested mechanisms can be explored to enthuse private participation in these projects.

Important features to be included in the sub-legislation to the draft MMDR Bill 2011 Ministry of Mines

Rules to be framed by Central Government

• The manner of application for grant of mineral concessions- form, application, fee and earnest money

• The manner of grant and extension of mineral concessions, including the manner of evaluation of bids under section 13 and procedure and condition for grant of mining lease for small deposits

• The procedure for notifying an area for inviting applications for major minerals and grant of mineral concessions

• The manner of publication of the report on the reconnaissance or prospecting operations and the manner of intimation of the same to the State Government;

• The manner in which a person is to be registered with Indian Bureau of Mines or the State Directorate or any other agency authorised by the Central Government;

• Identification of mineral or group of associated minerals for the purpose of granting of high technology reconnaissance cum exploration licences

• The manner of surrender of area or relinquishment of area out of licence by the holder of a non- exclusive reconnaissance licence, high-technology reconnaissance cum exploration licence and prospecting licence

• The manner of submission of reconnaissance plan, prospecting plan and the approval of mining plan

• The amount of fee to be charged by the State Governments for transfer of the mineral concession

• Conditions for high-technology reconnaissance cum exploration licence and prospecting licence to be fulfilled by the licence holder

• The manner of restoration of a mining area

• The manner of setting up of a grievance redressal mechanism by the lessee

• Empanelment and accreditation of qualified persons for preparation of mining plan

• The manner of assessment of technical and management capability of the State Directorate for grant of approval for major minerals

• Procedure of determination of mining lease

• The manner of providing compensation to the lessee

• The manner of preparation of progressive mine closure plan and final mine closure plan

• The manner of determining payment to be made by the lessee who has not commenced production

• The manner of registration of person or company or firm or association using or trading in or exporting or stocking mineral with the Indian Bureau of Mines

• Rules pertaining to sustainable development framework

• Matters in which State Government may issue directions

• Maintenance of accounts in respect of National Mineral Fund

• Other expenditures utilised for the District Mineral Foundation and the manner of approving such other expenditure available with the District Mineral foundation;

• The salary and allowances payable to and other terms and conditions of service of the Chairperson and Members, employees of the National Mineral Regulatory Authority and National Mining Tribunal

• The procedure for conducting any inquiry;

• The manner of managing the National Repositories and the data

Rules to be framed by State Government

• The manner of publication of data that would be available to the general public

• The manner of making available the data on mineral concessions to the public

• The procedure for notification for grant of mineral concession of minor mineral

• The manner in which a notification may be issued for inviting competitive financial bids in section 18 (transfer of ML);

• The fee to be charged for the transfer of the mining lease in case of a minor mineral

• The rate and in the manner of levy of surface rent and water rate

• The manner of payment of compensation to the owner of surface, usufruct and traditional rights under section 43;

• The amount to be paid by the holder of mining lease to the District Mineral Foundation in case of minor minerals

• The manner of identification of the persons or families affected by mining related operations, determination of monetary benefit to each

• Person or family, and monitoring mechanism

• The manner of administration of State Mineral Fund

• The manner of audit of State Mineral Fund

• The manner of constitution of District Mineral foundation

• The manner of consultation with affected persons or families

• The manner of preparation of annual statement of accounts by District Mineral foundation and audit

• The manner of composition and procedures of State Authority

• The terms of office, salaries and allowances of the Chairperson and members of State Mining Tribunal

• Functions of State Coordination-cum-Empowered committee

CONCLUDING REMARKS

SHRI R K SHARMA

SECRETARY GENERAL, FIMI

1. I was listening to a news item yesterday in CNN/IBN showing visuals that last year 100,000 tribal children died out of hunger in Madhya Pradesh. I also come from a poor family and therefore know what poverty is. Mining is the only industry with the widest spread to bring about economic prosperity in far-flung tribal and backward areas. Since exploration and mining is risky and capital intensive, it requires special dispensation in terms of fiscal and taxation regime which unfortunately is not available in India. I am in FIMI for the last more than 42 years and am therefore in know of certain fundamentals of mining. In my concluding remarks, therefore, I will be making some comments which may not be liked. I shall therefore seek your indulgence.

We, in FIMI, were very surprised when Ministry of Mines asked us to organize this Interface between various stakeholders after the Union Cabinet has approved the MMDR Bill, 2011 and the Bill has now become fait accompli. Ministry of Mines had organized a workshop sometime in October, 2009 in which all stakeholders participated. However, whatever has come out in the final form is something which does not generate enough confidence in the investor. With little sprinkling of acceptance here and there, it is just counter to what Hoda Committee recommended and Government of India accepted in the form of National Mineral Policy in 2008.

2. More than half the Bill (72 out of 139 sections) delineates on elaborate gamut of regulatory regime, enough to scare away any serious investor. Their functions are over-lapping. It is surprising that instead of emphasizing on the improvement in governance and capacity building and strengthening of IBM/GSI/State-DMGs, the Government of India expects Regulatory Authorities to take over their functions. All these regulatory bodies, including government machineries, are expected to curb illegal mining which would ultimately mean that nobody would curb illegal mining as all these bodies would be passing the blame to others. Further, who will curb illegal mining if the decision makers such as Chief Ministers/Ministers themselves indulge in illegal mining in a State? Regulatory system has not been very effective in the country as we all have seen in the case of 2G scam. Regulatory authorities cannot substitute good governance!

3. Minerals are the property of State. How can National Regulatory Authority have jurisdiction on matters which are under the domain of the State. This regulatory body is also supposed to oversee as well as over-view the entire field of mineral development and will be manned by bureaucrats whose track records, except with some exceptions, have been the subject matter of debate. It seems the whole exercise has been attempted to provide post-retirement placements to these bureaucrats. How can the bureaucrats who could not deliver the goods while in service and came in-between development of mineral resources will be good deliverers while manning these post-retirement posts? This is a typical example how Indian bureaucracy manages to profligate itself at the cost of tax-payers’ money.

4. No company will invest its shareholders’ money in a losing proposition! This is what exactly MMDR Bill, 2011 proposes to do. Apart from mind-boggling fiscal imposts which the proposed MMDR Bill, 2011 proposes, there are stamp duties, compensatory afforestation charges ranging from Rs. 26000/- to Rs. 122680/- per hectare in various states; there is net present value ranging from Rs. 4.39 lakhs to Rs. 10.43 lakhs depending on the density of forest; transit fee, environmental consents fee, water cess, labour welfare cess, panchayat and other local body cesses, sales tax, and many other levies and taxes. If you are left with any income, then corporate tax under Income Tax Act. So far, except for fixation of royalty and dead rent, the fiscal levies were in the domain of Ministry of Finance. The imposition of various levies proposed in the MMDR Bill, 2011, as Deputy Chairman, Planning Commission has said in one of his addresses,“amounts to privatising taxation.” Even the World Bank has pointed out in its report: “Nations should carefully weigh the immediate fiscal rewards to be gained from high levels of tax including royalty, against the long-term benefits to be gained from a sustainable mining industry that will contribute to long-term development, infrastructure, and economic diversification.”

5. We are all aware of strength and capabilities of the IBM and DMGs in various states. If one scans through sections 110, 111, 112 and 113, one would be aghast at the powers given to them to impose charges and penalties for disobedience of their directions and if one does not pay, there are special courts created to try the lessees, whether these charges/penalties are genuine or not! Is it not a perfect recipe for corruption? Does the Bill propose to eliminate corruption or perpetuate it?

6. I remember to have read somewhere that there are 2 million registered NGOs world-wide. India is fortunate to have half of them, a highly unsustainable density for a nation whose main worry is the environment of poverty. Every project, including mining, does not escape their whetting so much so that no project sees the light of the day easily. There is a growing feeling in the country that foreign interests are engaged to see that this country does not move towards developing its resources. It is professed time and again that tribals and people living in remote areas have to be brought into national mainstream but what is ensured is that they remain in perpetual aloofness and penury.

7. One has to ponder how and in what way, country’s natural resources can be developed to the optimum level for the growth of national economy. A large amount of FDI and domestic capital ─ in fact it is being invested abroad to acquiring assets ─ is waiting to be pumped into this country but we have negative verve running all around to thwart growth. The present MMDR Bill, 2011 adds to that feeling of gloom. The proposed MMDR Bill, 2011 is in fact a grand obituary on the growth of resource industry in this country.

MMDR Bill, 2011 an overview, Ministry of Mines

KEYNOTE ADDRESS

SHRI A.K.D. JADHAV

Ex-Secretary, Ministry of Mines

I remember that my last conference as Secretary Mines was a conference arranged by FIMI at this very venue in early 2007. At that time we had just submitted the Hoda report to the cabinet along with the new mineral policy document based on the report. Although I left the Ministry immediately after that I did manage to keep track of what was happening and it was heartening to note then that both the report and the new mineral policy were approved by the cabinet with no changes. You are all aware that after going through the usual bureaucratic route the policy document appeared before us as the National Mineral Policy, 2008.

I mention this for two reasons. First, of course, is the fact that the approval of the report and the National Mineral Policy document meant that the core concepts propounded in the Hoda report in respect of non-coal minerals had the backing and approval of the government at the highest level. Apart from the intense exchanges between the various stakeholders’ representatives in the committee meetings and the even more intense debates with the state government at the time of finalization of the report, there was the exchange of notes between departments and Ministries of the government itself which preceded the event of cabinet approval. So the approval of the Hoda report did indeed represent a kind of broad consensus. But the second and more important reason why the cabinet approval then was significant was that it came with a mandate to proceed with the amendments in the statute and the rule book on the basis of the report and the new National Mineral Policy document.

Henry Kissinger has said “No policy has a chance of success if it is born in the minds of a few and carried in the hearts of none” and it soon became apparent that the broad consensus was not really so broad after all. Still, at that time no one thought that the exercise of writing policy into the rule book would take so long. We have all been following the ups and downs of the amendments in the course of the last 4 years. We have read how these amendments came to be changed time and again as one interest group or the other tried to revisit the issues which we thought were settled when the report and the NMP were approved. I must confess that there were times when I had quite given up on the amendments ever seeing the light of day. However, now, more than four years later it does indeed appear that there may be light at the end of the tunnel and when Mr. R. K. Sharma, the eternal fixture of the mining sector in India, requested me to share my thoughts on the new mining bill with a distinguished gathering like this one I was happy to accept the opportunity.

Actually, the subject takes in so many aspects that it’s not really possible to do full justice to the comprehensive new MMRD bill in a single delivery like this. The discussions which followed the report were so wide ranging that instead of amendments to the existing Act, as envisaged earlier, we are now looking at an entirely new statute and I presume that a provision of repealing the old Act will have to find mention in the bill.

The thought that first comes to my mind when I see this bill is that it has two outstanding features vis-a-vis the situation obtaining in 2007. First, where it internalizes some of the concepts enunciated in the report and to some extent goes beyond what we could have hoped for when we began the exercise. On the other hand there are also some provisions, dealing with the more contentious issues, where a delicate balance was sought to be established by the report but where unfortunately the new bill gives rather than gains ground. Today, while I would certainly like to touch upon some of provisions of the first category, more by way of appreciation than anything else, I would also like to deal, in a little more detail, with some of the provisions of the second category which continue to generate heat and which if not resolved may well bring to naught all that has been sought to be achieved in an exercise which is now in its fifth year. I will try to examine how well or closely the proposed statute, the new MMRD Bill, 2011 reflects the policy perspectives in some of the core issues identified by the Hoda report.

You will agree that the main departure point of the Hoda report was the proposition that despite being one of the top five resource rich countries of the world, there is no mining sector worth the name in India. The main reason for this is the unfriendly nature of the regulatory regime prevailing in the country. It was felt that if this situation could be changed and a more mining friendly regulations put in place then the country could gain a thriving mining sector which in a matter of five to ten years could reach 20 billion USD per annum in terms of direct turnover and another 10 billion USD per annum in terms of downstream and tertiary sector spin-offs, especially in the manufacturing sector. The mining sector would then contribute significantly to the growth rate of the country’s GDP raising it by a good 0.5 to 1% percent per annum in the long to very long run. Apart from the immense employment benefits that this would bring, its greatest impact would be on the country’s balance of trade since most non-bulk minerals are imported and bulks are not put to the best use.

To appreciate this proposition better, one has to consider the three main premises on which it was based. Firstly, that the India’s geological environment assures our country a mineral rich hard rock area of more than 10 million sq. kms. of which not more than 20% has been touched by the Geological Survey of India by way of basic exploration. Secondly, even this work done by GSI is mainly in respect of bulk or surface minerals, namely, iron ore, bauxite, lime stone and dimension stone, and of their associates, and so our existing mining sector is a reflection of this work of GSI. We do not have a single mining company of significance in any of the base or noble metal minerals except one in Zinc and one in Copper. Thirdly, since there can be no mining without prospecting, the main thrust of policy in the non bulk segment should be on how to make prospecting an attractive proposition for investment. Since the country has neither the technology nor the funds of the required magnitude for prospecting, it is the nature of the regulatory environment which will determine whether investment and technology flows in the sector will happen.

So, at the outset, it is necessary to clearly distinguish bulk or surface mining from non-bulk or underground mining and provide for the development and regulation of each in a more or less mutually exclusive manner. It is the lack of this distinction in the current dispensation and the universal application of all provisions to all major minerals that leads to consequences not necessarily desirable for either bulks or non-bulks. So what the Hoda report and the NMP did was to disaggregate mining into bulk and non-bulk segments, diagnose the unique issues facing each of these segments and prescribe solutions to resolve these issues. While it is true that the main thrust of the report was on the nonbulk side, aimed at maximizing investment in exploration, the report did indeed deal with the bulk side too with special attention to some unique iron ore related problems since 90% of bulk mining and in fact 80% of all non-coal mining in the country is accounted for by iron ore. Of course, the report had to be presented within the framework of the terms of reference and in many ways the issues were presented as underlying the symptomatic term of reference.

In so far as surface or bulk minerals are concerned, the issues are related to mining proper rather than exploration, not because all exploration of these “easy to find” minerals has been done but because the deposits determined by GSI are immense enough to meet the needs of local industry for a long time and hence there is little or no pressure for exploration. For example, the hematite resources of more than 20 billion MTs have obviated the need for GSI or private players to look for magnetite though it is well known that hardly any work has been done on magnetite after the Kudremukh finds. The main challenges diagnosed for bulks were (i) improving mining efficiency; (ii) making the mining operation environment friendly and taking care of indigenous and / or displaced populations; (iii) assuring reasonable revenue returns to government; and last but not the least, (iv) fair play in grant of mining leases. The prescriptions offered were to, firstly, discourage wastages arising as a problem of plenty by ensuring tight adherence to the Mining Plan. Secondly, adherence to the ten principles of sustainable mining as finalized by the International Council on Mining and Metals (ICMM) through an indigenously developed Sustainable Mining Framework, setting aside a fixed sum from the earnings of mining companies for local infrastructure needs and giving stakeholder participation in the form of equities to tribal cooperatives in mining companies. Thirdly, from the revenue earning angle, it was proposed to convert fixed tonnage based royalties to ad valorem royalties across the board and, lastly, the Committee recommended auctioning of mining leases instead of the first come first serve principle or a vague parameter based selection process of the current dispensation. The latter would also assure fair play.

I am somewhat comforted to find that the proposed new statute, that is the new MMRD Bill, has accepted several of these prescriptions in greater or smaller measure. A much greater emphasis is laid on the IBM approved Mining Plan than earlier. I understand that the programme for capacity building in IBM and the state Directorates is already under way. It is also seen from the Ministry’s website that the inter ministerial working group for working out a sustainable development framework for Indian mining has done much work and is likely to come up with some game changing recommendations. The issue of funding social and physical infrastructure in the mining areas has generated much debate. The idea of keeping aside a certain percentage of profit was actually mooted by the courts and the Hoda Committee recommended that a percentage of the turnover rather than of profit may be a better parameter since it would relate more appropriately to the quantity of mineral extracted. It would also be neutral to managerial inefficiencies and accounting flexibilities and would not punish efficient managements who wish to work for their shareholders. As for the percentage of royalty argument I recall that the main apprehension was not only that at that time iron ore royalty was on fixed tonnage rather than on “ad-valorem” but even if you went to ad-valorem there was really no reliable methodology for dealing with issues like the depression of pit mouth prices vis-à-vis FOB prices in the case of exports and the problem of transfer pricing in the case of captive mines. These two account for more than 90% of all iron ore sales in the country. I am, therefore, not comfortable with the rather simplistic approach of doubling the royalty. The point is not merely that of extracting revenue from the miner for development, but of garnering this revenue without impacting the efficiency of operations and the integrity of the honest miner. Mere doubling of royalty may well be counter productive if seen in this light.

When we come to the fair play aspect of mining leases in respect of bulks I have some reservations. It is quite the gold standard that technical and financial bids are sequential processes. Hence, auctioning of mining leases among those technically qualified has to be seen as the great leveler or a single silver bullet which solves the issues of economic efficiency, maximum revenue and fair play, all at one time. In my view the failure to delink the technical parameters from the financial parameters and the treatment of the financial parameter as one among many parameters for grant of mining leases in effect means losing the raison d’etre of the auction proposition itself. It is certainly not my case that the Hoda report was infallible and hence should have been followed to the last T. However, the report did spend space and effort on giving the conceptual background behind its proposals. Sections 13 (3) to 13 (6) of the new bill, which ignore the report in all aspects of the issue, are difficult to understand in the absence of their philosophical underpinnings and hence it would behove government to bring its thinking into the public domain. Specifically, how do you balance between the technical and financial parameters and how do you set aside a higher financial bid on technical grounds without leaving scope for partisanship or at the least without inviting allegations of favoritism? It does appear that the proposed statute makes contradictory provisions to get out of this conundrum as between section 13 (5) which says that the lease would be granted to the bidder who gives the best financial bid and the Explanation below 13 (6) which says that the best bid would be determined by giving weightages to various parameters including presumably the parameter at 13 (h) viz. the financial bid, which shall be numerical!

It is in the area of Prospecting, however, that I am afraid the new bill has to be seen as clearly retrograde. There are two disaggregations which are vital when it comes to prospecting for minerals. The first is to recognize the difference between prospecting for bulks or surface minerals and prospecting for non-bulk or underground minerals. The second is to recognize the difference between prospecting and mining as stand alone activities with completely different technical and economic drivers. The new bill fails this test on both grounds. It adopts a uniform approach to all mineral concessions regardless of both the Mineral and the Concession. It also fails to recognize the stand alone nature of prospecting operations and the simple logic behind every mining operation in the world viz. that the prospector prospects and miner mines and if you try make one do the other you will end up with neither. The fact that FDI failed to happen despite the liberalization of 1999 was traceable to this simple anomaly in our regulatory regime and for this reason the report made “unbundling” a lynchpin of its package.

The failure to clearly distinguish between bulks and non bulks when it comes to prospecting has repercussions. Prospecting for bulks has already been done by GSI. There is neither demand nor need for prospecting licenses. In a seamless environment, however, there is scope for misuse. A prospecting license for bulks is as good as granting a mining lease so one can bid for a PL (by whatever name) and with a little work get it converted to an ML. In this way one can avoid the ML auction for which competition is bound to be severe. Ideally, there should be no PLs in bulks. Facts on the ground also reflect this reality. Now by providing for PLs of bulks through bids you are actually encouraging investors who can afford to hold and in the process you are not only constricting supply but also depriving government of good revenue which can come out of the ML auction.

The position with non-bulks is exactly the opposite. There is only little or no prospecting done of non-bulks. There is hardly any reconnaissance done by GSI. This is because we have neither the technology nor the funds required for non-bulk underground prospecting. Since there is no prospecting there is naturally no mining either. In fact, by the words “creating a mining sector” for India what we mean is that we should let prospecting companies come and find the minerals for us so that they can be mined commercially by mining companies who can buy either the data or the mining lease or both from the prospecting companies and start mining operations. Treating bulks and non-bulks alike and seeking bids for PLs of non-bulks is a recipe for keeping our storehouse of wealth under the ground and in fact choking the sector before it is born. Having said this however, I must also say that there is a ray of light in the third proviso to section 13 (1) which allows for disposal under section 22 if the auction fails, as indeed it is likely to in respect of non-bulks where no data is available. Unfortunately it is too little in the light of what I am going to say next.

A rather more fundamental departure from the Hoda approach in the new bill is the new section 17. In paras 1.68 to 1.72, the report propounded that transferability of a concession is a crucial feature of the concession instrument, the essential ingredient which will determine whether prospecting companies will show interest in spending the time and money for locating our minerals. Prospecting data without a guaranteed lease will have no value. Prospecting companies can either obtain a mining lease and then transfer the lease along with their data to the mining company or they can simply transfer the PL and the data and expect the purchasing mining company to obtain the lease. In this sense, transferability becomes as important a feature of the new dispensation as seamlessness but in the new bill the dish appears to be half cooked. While one element of seamlessness viz. assured grant of the next concession for holders of RLs and PLs (including the HTREL) is provided for, the other element of transferability required to complete the circle is missing.

The Committee had found that transferability was next to impossible in the current dispensation contained in the rules and regulations. It was recommended that transferability should be made easy, almost automatic, and should be moved to the main statute from the rules. While transferability has been moved from the rules to the statute, the provision itself is in fact just a rehash of the old dispensation so that the stringent conditions now become even more stringent in that what was provided for in the rules earlier now gets statutory backing. It may not be incorrect to say that Section 17 is the single most retrogressive provision in the new statute. In the report the concept behind transferability has been described as “unbundling” where we recognize the difference between prospecting companies and mining companies and delink them from each other.

The prospecting company invests, collects data and sells that data to the mining company via the transferability route. My apprehension is that sections 17 and 18 will ensure that the Canadian and other Juniors, the explorers of the world, will continue to look the other way as has happened in the last many decades and bring an end to our hopes of the country getting a mining sector worthy of its geological and economic status.

There are a number of other changes, additions and deletions in the new MMDR Bill which merit attention in view of their implications for the goal of creating a modern mining sector for India. Some of these appear as anomalies and others as obstructions. It will need a much longer delivery than this to deal with them properly. The point, however, is not merely what impact these provisions will have on the mining sector today or even how they will affect the effort to reach the long term goal. It is rather what they tell us of the thinking behind the new bill.

The Hoda report presented a potential, an objective and presented a route for achieving that objective in as comprehensive a manner as possible within the constraints of diverging stakeholder interests. You may say that the potential was wrongly assessed or that the objective is not desirable or that the route presented needs to be corrected to reach the goal faster or even at all and hence changes are needed. What you cannot do in these days of transparency is to keep the thinking behind the changes in a closet, especially if they are seen to impact not merely the route but the objective itself. The question which will arise then is whether you have a goal at all?

Before this Bill is presented to Parliament I think it would behove the Planning Commission, the Ministry of Mines and any other body which may be behind these formulation to come out in open debate, engage with stakeholders and justify what they are trying to do against the yardstick of national interest both in the short and long term. That is what Mr. Hoda did for 18 long months and he did it in the full glare of public gaze and media attention. Tinkering so extensively with his formulations without open debate or explanation may not be quite the right way to go about it.

Welcome Speech by Shri P.K. Mukherjee, President, FIMI

1. All of us are aware that the Draft MMDR Bill has been approved by the Union Cabinet, and is now likely to be tabled in the Parliament in the forthcoming Winter Session. Two very pertinent points thus arise:

First and foremost, when the MMDR ACT of 1957 has seen the incorporation of a series of amendments as and when the requirement arose, the last being in December 1999, and the mineral sector was opened for 100% FDI in February 2002, where was the necessity to bring in a completely new Bill?

And secondly, why should the draft Bill be discussed with stakeholders at this late stage, when it has already been approved by the Government, and is on the verge of becoming legislation?

2. At the time of the mid-term review of the Tenth Five Year Plan, it was observed that the main factors responsible for investment not coming in to the sector, despite it being liberalized, were procedural delays in disposing of the applications for mineral concessions, and the absence of adequate infrastructure in mining areas.

3. In 2005, the Government of India constituted a High Level Committee (HLC) under the able Chairmanship of Shri Anwarul Hoda, then Member Planning Commission to go into the whole gamut of issues relating to development of the mineral sector. The HLC submitted its report in 2006, and based on its recommendations the ‘New Mineral Policy’ (NMP) was approved and adopted by the Government in 2008. The NMP 2008 was supposed to serve as the foundation for any new legislation.

4. However it is observed that the draft MMRD Bill, 2011 is in many respects at significant variance and in few cases completely contrary to the HLC report and the NMP 2008, particularly with regard to encouraging private investment in the high risk exploration phase, and streamlining of concession granting procedures.

5. While stakeholders are at liberty to raise issues for today’s discussion, the following areas of the draft Bill needs serious deliberations and relook for mineral sector’s development in the future :

─ Complex system of licensing; Reservations, etc. – sec.4, 13, 19, 20, 21, 22, 23

─ Auction/ bidding for mineral concessions; Transfer, Security of Tenure

─ Tax regime including contribution to District Mineral Foundation – sec.24, 42, 43, 44, 45 etc.

─ Administrative mechanism / capability for such a complex Act not yet talked about

The list is only indicative and serves to lay the framework for today’s interaction.

6. It would not be out of context to mention here that as on 20.09.2011, a total of 46,885 mineral concession applications (452 RP, 15535 PL and 30,898 ML) were pending disposal with various State Governments. This excludes numerous cases which may be pending with the Ministry of Mines. Sadly, in most of the cases no communication in this regard has been sent to the applicants.

Therefore asking for fresh applications under the proposed Bill (where no time limit has been set, or a moratorium provided) would be a grave injustice to the applicants, many of whom have waited for several years some as long as ten years), as opposed to the prescribed time-frame under Rule 63 A of the MCR

1960. This would tantamount to penalizing the applicants for the inefficiency and laxity of the concerned authorities.

7. The draft Bill has placed too many restrictions on the grant of mineral concessions. Such restrictions are sure to defeat the NMP’s stated objective of attracting private investment into the mineral sector, particularly the high risk exploration phase. On the other hand the involvement of the granting authority in deciding the transfer pricing of leases tantamount to undue state interference and is completely contrary to business ethics. Such legislation seeks to place excessive powers in the hands of an overstretched state machinery, whose mandate otherwise does not include business matters in which it is also not qualified

8. In India there is a misconception that mining unfailingly delivers windfall gains. It is sometimes not appreciated that mineral exploration and mining is a risky business on account of the inherent uncertainties associated with the discovery and exploitation of mineral deposits. Even in the highly prospective Canadian Shield, the success ratio of a discovery becoming a profitable mine is less than 1%, and achieved by perseverance on the back of cutting-edge technology. Thus a successful find in most cases is made after repeated failures.

9. Therefore auction and bidding will attract speculators and profiteers rather than serious players. There will be a move to maximize short term revenues at the cost of medium and long term interests. Globally, no where with the possible exception of Russia and Uzbekistan, are mineral concessions, especially for prospecting/ exploration, auctioned.

10. The Indian mineral sector is already one of the most highly taxed globally. With the proposed 26% of profit sharing in case of coal and lignite, and 100 % of royalty for other major minerals to be paid as compensation to the owner of the surface, usufruct and traditional rights etc. We’re aware that only 2 years back, when the royalty on iron ore was revised from erstwhile specific rate to 10% ad-valorem, the purpose was to put additional money which is multifold, in the hands of state governments for the ostensible reason of mining area developments – our experience over last 2 years does not corroborate any such spending by the state governments. Besides the same, there are other levies/duties are also proposed. Coupled to this would be the cost involved in taking care of resettlement and rehabilitation (R&R) matters of the project affected persons over the life of the mine.

11. It would not be out of context to mention here that the Government has recently also placed in Parliament a National Land Acquisition and Rehabilitation & Resettlement (LARR) Bill, 2011. This bill, which is at an advance stage of consideration, is also meant for compensation to project affected persons. Side by side, the Government is contemplating introducing in Parliament, a new Companies Bill with a proposed mandatory provision of 2% of the net profit on CSR activities. While the intentions of the government are laudable, such overlapping legislations only serve to increase confusion. As it is most of the mining companies, as responsible corporate have formulated model CSR policies worth emulating, which are rigidly implemented and followed. It is therefore worth considering aligning the draft Mining Bill with the other Bills, especially in such matters.

12. Moreover, not only will such issues place an extra administrative burden on the mining companies, but they would become the highest taxed. This will deprive investors with much needed surplus funds for ploughing back towards future exploration and mining activities. Moreover such exorbitant levels of taxation may discourage private investment in the mining sector, and over a period of time may lead many units to become sick and eventually close production, with consequent increase in unemployment levels. This in turn would defeat the very objective of improving the socio-economic conditions of the local areas and its populace.

13. It may not be out of place to mention here that the experience of dual jurisdiction of Central and State governments over minerals administration have done more harm than good for the development of mineral industry, leave aside the sentiments of resource nationalism exposed by various quarters including the activists.

KEYNOTE ADDRESS

SHRI ANWARUL HODA

Professor ICRIER and former Member Planning Commission

More than five years ago a committee established by the Planning Commission looked at the framework of rules and policy relating to mining in India. It recommended radical changes in that framework in order to stimulate investment in mining and unlock the geological potential of the country. Based on the recommendations the government revamped the mineral policy and the National Mineral Policy, 2008, was announced. It has taken three years more for the government to finalise the new MMDR Bill, 2011. I must observe here that taking five years in framing the draft Bill has delayed crucial reform needed in the mining sector. The draft has been put in the public domain and the Ministry has encouraged FIMI to organize this Interface to get a feedback from stakeholders on the draft. I applaud the UPA government’s policy of transparency.

2. I look forward to listening to the views of the stakeholders who have responded to FIMI’s invitation and are participating in the seminar. You will no doubt have your own perspective and perception and give your comments. I too have had a close look at the draft legislation. For me the starting point for the scrutiny of the draft Bill should be the National Mineral Policy, 2008, which was announced after the Government had had a change to consider the Planning Commission Committee’s recommendations. Has the National Mineral Policy, 2008 been meticulously incorporated in the draft Bill?

3. The central paragraph of the Mineral Policy 2008 on the regulation of minerals reads as follows :

“In order to make the regulatory environment conducive to private investment the procedures for grant of mineral concessions of all types, such as Reconnaissance Permits, Prospecting Licenses and Mining Leases, shall be transparent and seamless and security of tenure shall be guaranteed to the concessionaires. The first intime principle in the case of sole applicants and the selection criteria in the case of multiple applicants will be appropriately elaborated. Prospecting and mining activities shall be recognized as independent activities with transferability of concessions playing a key role in mineral sector development.”

4. This paragraph identifies distinct elements, which we should look for in the draft Bill. Three of these elements are seamlessness in moving from one form of concession to the next, guarantee of security of tenure, and transferability of the concessions. One overriding concern, which is perhaps implicit in the National Mineral Policy, 2008, is about prompt disposal of applications. We should add it as the fourth element. The fifth element is the basis on which concession would be granted: first in time principle in the case of sole applicants and appropriately elaborated criteria where multiple applicants have to be considered.

5. Thus while examining the adequacy and appropriateness of the provisions of the Bill we should apply five tests based on the elements that we have just identified.

6. First, does the draft Bill provide for the investors to move from one form of concession to the next smoothly in a seamless process? The National Mineral Policy attaches importance to the feature of seamlessness. Has this feature of the policy been translated into the draft law? Has the holder of a concession been given a statutory right to move to the next form of concession as long as the criteria are met and the terms and conditions of the license have been adhered to?

7. Second, does the Bill guarantee security of tenure to the holder of a mineral concession? The National Mineral Policy, 2008, attaches equal importance to seamlessness and security of tenure. Have the wide powers given the current MMDR Act to the state government to terminate mineral concessions prematurely been curtailed and circumscribed? Providing security of tenure to the investor is a precondition for stimulating investment in mining activity. Premature termination can be envisaged only in such well defined circumstances as public safety or public works and not for such vague and broadly defined reasons as `public interest’. Does the draft meet the test on security of tenure?

8. Third, a deficiency of the current legislation is the lack of clarity in the provisions on transferability of concessions. In the contemporary mining world exploration is an independent activity separate from mining operations. Many exploration companies specialize in exploration activities on a standalone basis and do not mine. Their goal is to discover a deposit and then transfer their interest in that deposit for a consideration to a company that specializes in mining. Large mining companies, who sometimes also undertake exploration in specific minerals like diamonds and precious stones, may also be interested in transferring rights in cases in which small deposits discovered by them are too small for their portfolio. Transferability of rights of a concessionaire in prospecting is therefore an important ingredient for creating an environment conducive to investment in exploration. The right of transfer of a concession for prospecting should not be subject to discretionary approval by government. The need to obtain approval of government prior to transfer introduces uncertainty, as the approval may be slow to come or be withheld altogether. If investment in prospecting is to be encouraged then there is no room for disallowing transfer on a discretionary basis. Denial of transfer should be limited only to those cases in which pre-defined criteria are not fulfilled. The Committee had recommended that the right to transfer a prospecting license should be explicitly stated in the MMDR Act and not left to the mining rules or to the license instrument. It should be clearly stated in the Act that prospecting license has the right to transfer the right to a qualified entity. Mining leases too should be similarly transferable without hurdles. The investor in exploration should be able to count on getting the full value of mining lease, which comes at the end of the prospecting work done by the exploration company. It is necessary that the revised laws provide not only for seamless movement from one stage to the other but also for the possibility of unbundling of the components in different stages. Does the draft Bill meet the test of providing clearly for unbundling the components of different stages of mining activity?

9. This brings me to the fourth test that we must apply to the draft Bill in order to come to an assessment on its adequacy for stimulating investment. Delays in disposal of applications for various concessions have deterred investment in mining in India. The current Mineral Concession Rules no doubt lay down time limits for disposal of applications, but these time limits have become no more than recommendatory guidelines that are seldom adhered to. The stipulations on time limits are without teeth. Delays of five years or more have not been uncommon. In order to redress the situation the Planning Commission Committee had suggested the drastic remedy that Section 30 of the MMDR Act should be amended to give jurisdiction to the Central government to entertain applications from aggrieved parties to take a final decision in the event of failure of the state government to take a decision within the time frame envisaged in the rules. Some states also felt strongly that the Centre too should be subjected to a time limit for taking a decision on this and other matters. The Committee had therefore recommended that an independent tribunal should be set up to adjudicate on all disputes including disputes between the centre and the states.

10. I can understand the reasons that led the Ministry of Mines not to accept the recommendation to give jurisdiction to the central government in cases in which the states are unable to adhere to the time limits. There could be implications for the state-centre relations if the recommendation had been carried out. But the problem of delays in disposal of applications cannot be wished away and alternative remedies have to be provided in the new law. It is not enough to lay down time limits : the purpose will be served only if the provisions are given teeth. Provisions for the speedy disposal of applications are a sine qua non for an efficient framework of rules and regulations governing mining.

11. Let us turn to the fifth element, which is about the first in time principle being applied in the case of sole applicants and criteria being laid out where multiple applications have to be dealt with. The draft Bill envisages in Section 13 that competitive offers would be invited for grant of a prospecting license over an area where reconnaissance has been conducted and sufficient evidence of mineralization is available. Similarly competitive bids shall be invited for a mining lease over an area on which prospecting has been conducted and sufficient evidence of mineralization established. Section 13 then proceeds to elaborate the criteria, which would be applied for technical and financial appraisal of the bids. Can we say that the elaboration of criteria has been done appropriately? Is it appropriate to bundle together the technical and financial criteria, or should these be done as a two-step exercise. It would be challenging task for states to select out of the menu of criteria and having selected to attach weights to the selected criteria.

12. I would like the participants to consider also one other key feature of the National Mineral Policy, 2008. Paragraph 4 of the Policy on the role of the state in mineral development states as follows :

“In future the core functions of the State in mining will be facilitation and regulation of exploration and mining activities of investors and entrepreneurs, provision of infrastructure and tax collection. In mining activities, there shall be arms length distance between state agencies (Public Sector Undertakings) that mine and those that regulate. There shall be transparency and fair play in the reservation of ore bodies to State agencies on such areas where private players are not holding or have not applied for exploration or mining, unless security considerations or specific public interests are involved.”

13. I would like participants to examine the provisions of the draft Bill to see if the spirit of the above paragraph has been fully reflected in the provisions of the draft Bill.

14. A great deal of debate has taken place on the fiscal aspects and particularly on the rates of payment of royalties, compensation and cess and the payment of an amount equivalent to the royalty to the District Mineral Foundation. Let me say that because of the rise in the world wide price of minerals an environment has been created all over the world that the state should get a better share of the value of the extracted minerals. In our country there is the additional problem of poverty and the need to channel the benefits of mining to the local communities. The mining industry will therefore have to live with the additional levies. For all minerals other than coal the amount payable to the District Mineral Foundation has already been set at the level equal to the royalty as against 26 percent of the turnover that was proposed earlier. However, participants may like to bring out how the new and higher levies might affect the health of mining in the country. In addition, I would like to point out that with the rapid reduction in import duties on finished products our industries are already facing tough competition from imports and taxation of inputs purchased at home will only make it more difficult for them to compete with imported products.

During FY 04-09, while the GDP in India grew at a CAGR of 8.5 per cent, the mining industry registered a slower growth at 5.7 per cent. The key factor is the low thrust on exploration, which accounts for less than 0.5 per cent of the global exploration expenditure of $12.6 billion in 2008. The industry today is valued at $28.8 billion in production, of which coal and iron ore contribute to more than 50 per cent. The growth pace of the sector is expected to accelerate, achieving a CAGR of 9 per cent during 2008-12 and to reach Rs 190,000 crore by 2012.

The gross budgetary support for Indian mineral industry (coal and metallic minerals including steel) has been increasing each year and has recorded an annual compounded growth of 25 per cent.

The major challenges before the Central Government are multi-layered spanning extensive regulatory approvals; the uncertainty and differences in the administration, interpretation and enforcement of rules; constraints for mineral evacuation; absence of fiscal and tax incentives to invest in efficient technologies, disparity between the growing mining industry and poor state of local economy, environmental concerns, etc, among others.

Existing regulatory framework

State governments currently have the power to cancel or modify the terms and conditions of prospecting licenses, mining leases and similar agreements. State governments collect royalty and other taxes related to minerals.

The Constitution allocates the subject of mineral development and regulation to state governments (entry number 23, State list (List II) of Seventh Schedule) subject to the law of Parliament (entry number 54, Union List (list I) of Seventh Schedule). The role of the Central Government is limited by the boundaries set by such law, which in this case is MMDR Act, 1957. As mandated by MMDR 1957, the Centre has framed rules for regulating grant mineral in respect of all minerals other than atomic minerals and minor minerals. The State has framed the rules for minor minerals.

Context of MMDR Act 2010

India is a mineral rich country with a diverse mix of mineral types with occurrence of about three atomic, four fuel, 10 metallic, 23 minor and 46 non-metallic minerals. India has world’s fourth largest coal reserves, the fifth largest iron ore reserves, and significant proportion of reserves of bauxite and other minerals.

Today, the Indian mining and mineral industry is at a cross-road. Achievements in mineral technologies are constantly providing new opportunities while globalization in all its socioeconomic dimensions is posing increasingly complex challenges.

Draft MMDR Act, 2010

The latest version of draft MMDR Act, 2010 (3 June 2010) has attempted to address these key industry concerns of transparent concession systems, scientific mining, sustainable development and curbing illegal mining. The Draft act in line with National Mineral Policy 2008 aims to achieve speedy application processing by delegating power to the state government for award of mineral concessions with prior consent of central government required only in case of coal and atomic minerals.

Enhancing the regulatory framework of exploration, prospecting and commerce: The draft MMDR Act, 2010 attempts to address the industry concerns of inability to invest in advanced technologies for lack of adequate scale of operations area by enhancing the areas for prospecting. The draft MMDR Act, 2010 introduces the concept of large area prospecting license, excepting bulk minerals towards facilitating the investment in exploration segment of mine life cycle. The Draft Act strives to achieve a balance by setting in minimum lock in period of an area while concomitantly providing for enhanced time periods for exploration activities.

Unlike the existing act, draft MMDR Act, 2010 provides for commerce of concession licences. Exploration agencies (RL, PL and LAPL) can now transfer data and concession rights to mining companies (successor-in-interest) after giving 90 days notice to state government. An RL, PL and LAPL holder will have the first right to exclusion to other applicants to get mining lease seamlessly if he so desires. These are key changes for attracting investments in high-risk activities of exploration. Further, provision has been made in draft Act for transfer of mining lease with prior consent of State/Central Government, an allowance that wasn’t available in MMDR Act 1957.

Auctioning of mineral concessions: Apart from the principle of First in Time in the un-notified area for grant of mineral concessions, state governments can now invite applications for grant of mineral concessions on the basis of bids on profit sharing basis/royalty payment/lump sum payments and on the principles of effective conservation and utilisation of mineral resources through weightages to value addition, beneficiation, long-term linkage with local industry while awarding prospecting/ mining licenses. Commercial mechanisms in competitive bidding for award of mineral concessions would need to be designed with due care towards ensuring implementation sustainability and attracting private capital.

The draft Act provides for establishment of National Drill Core Repository and National Geophysical Data Repository. This will help the investors to access relevant information related to mineral resources and facilitate due diligence in bidding for mineral concessions. State Governments and licensees are also required to make available the data relating to grant, extension, relinquishment, termination and plan of operation in the official website.

Profit sharing and equity participation for land owners: Draft MMDR Act, 2010 provides for several provisions for the socioeconomic development of local host populations in and around the mining area. Now, the State Governments have to consult Gram Sabhas and District Councils for notification of areas for concession in scheduled areas and District Panchayats in case of non-scheduled areas. State Governments may also give preference to cooperative society of tribal in awarding mineral concession in scheduled areas through a notification. The draft Bill guarantees assured annuity to the local population either through a 26 per cent share of profits (post tax paid) earned by the miner in case lease holder is a person or 26 per cent of equity participation in case the lease holder is a company, resettlement and rehabilitation of the local population through employment and skill enhancement as outlined by the concerned state government. The current consultation version by the Group of Ministries (GoM) is expected to have adopted the basis to 26 per cent profit sharing with alternative of paying royalty in case of loss making entities.

The current draft tenets resemble the intent of Black Economic Empowerment (BEE) Act, 2003 of South Africa, which required holders of mining rights to achieve 26 per cent ownership participation by historically disadvantaged South Africans in their mining operations by 30 April 2014, of which 15 per cent needed to have been achieved by 30 April 2009 pursuant to the Mining Charter. This provision of draft MMDR Act, 2010 is aimed at increasing the inclusiveness of the host population in ensuring the success of the mining project. This could also bring down the rate of illegal mining as locals will benefit without illegal mining.

Increase in taxes and levies: National Mineral Royalty Commission has been proposed to determine the rates of royalty, dead rent, cess or compensation independently. The period of revision of royalty rates on minerals have been increased to once in five years from the current three years leading to certainty over a longer period. Currently there is an ad-valorem (market linked rate) of royalty on minerals and a nominal dead rent. The proposed draft MMDR Act, 2010 calls for progressive revision of the royalty rates and also the dead rent with miners paying higher of the above. It also calls for the institution of a National Mineral Fund, which would be funded via a customs duty on exported ore and an excise duty on domestic ore where sold. There is a provision also for a State Mineral Fund—not exceeding 10 per cent of the royalty.

The National Fund will be utilised for R&D work and strengthening of Indian Bureau of Mines, while State Fund will be utilised for local infrastructure development, mine closure, strengthening of state Department of Mines and Geology, setting up special courts and curbing illegal mining among others. However, the draft provides that the Central Committee would be able to make recommendations while State Committee has significant function for overseeing the clearances and other activities. The Hoda Committee had recommended that Coordination-cum-Empowered Committees should be set up at the levels of State and Central governments.

Improved governance mechanisms by independent authorities: The discretionary power of state governments and revision section of Central Government under section 11(5) of MMDR, 1957, which provides for grant of mineral concession against the universally accepted principle of First in Time as provided under section 11 (2) of existing act, have been removed. The new legislation also streamlines and enhances the transparency of the current award process of mineral concessions by providing for constituting National and State Mining Administrative Tribunals to check the delays and appropriateness of the decisions of State and Central governments in granting mineral concessions.

The regulatory, deterrent and punitive mechanism under the draft Act have been given more teeth by delegating powers to IBM, AMD and other authority to be notified by Central Government for inspection of mines. IBM has been entrusted the task of technical regulator for enforcing the rules related to compliance with mining plans, mine closure plans and the sustainable development framework. Constitution of Special Court by State Government for speedy disposal of the cases related to without license operations, final mine closure, disobeys to IBM or State Government and Contravention of provisions of Act with stringent punishment have been proposed in the draft Act.

Go and No Go Areas: In several instances the Central Agency and the state government have differing perspectives. For example, in case of the POSCO project in Orissa, Ministry of Environment Forest’s (MoEF) opinion of accommodating views of forest dwellers as per Forests Rights Act have found objections by the State Government due to the validity of existence of forest dwellers in non scheduled area. Similarly, the coal blocks allocated to Adani have been de-allocated and UMPP initiatives in Orissa and Chhattisgarh are proceeding slowly on account of “No Go” areas. A joint study by Ministry of Coal (MoC) and MoEF revealed that almost 35 per cent of coal bearing area falls under the No Go Area. MoEF has declared nearly 44 per cent of the mining area under CIL control as ‘No Go’ areas. On the contrary, out of 49 mining leases awarded in Sindhudurg area of Maharashtra, 32 of the permits were approved in Sawantwadi- Dodamarg zone. This zone has the highest (49 per cent) forest cover in Maharashtra.

A uniform objective framework for project allocation and greater inter-ministerial coordination for award of mineral concessions in forest area is essential to foster sustainable development. The draft MMDR Act 2010 provides for state governments to obtain the first stage of forest clearance, wildlife clearance and all necessary permissions from owners of land before notification for mining lease. This provision is expected to streamline environmental clearance issues and improved private sector interest and lead to risk reduction in project development phase.

Conclusion

Draft MMDR Act, 2010 is a forward looking legislation which has made an attempt to address concerns of stakeholders with the MMDR 1957 and enhance marketability to prospecting and mining licenses thus facilitating the sector to reap risk capital and make exploration a sustainable business for private investment.

However, the success of this legislation could only be measured in terms of increase in investor confidence to invest in mining projects and addressing the immediate needs of the local community and providing for sustainable development of the community in the long run.

(The author is Consultant and Knowledge Manager, Mining, PricewaterhouseCoopers (PwC),  and can be reached at dilipkumar.jena@in.pwc.com. With inputs from Sayantan Banerjee, Sr. Manager, Energy, Utilities and Mining, PwC. Views are personal.)

General In many cases the mobile machine operator are not aware of light vehicles around their machine. Due to the size of haul trucks, the operator is not able to see significant areas around the machine. Figure shows blind spot areas around a small 50ton capacity haul truck.

Most collisions occur in congested areas – in the pit or park up areas.

• Light vehicles are the major at risk vehicles

• Collisions with light vehicles primarily happens because the heavy vehicle driver did not see the light vehicle                                             • Whilst heavy to heavy vehicle collisions causing injuries occur, the risk and consequence is far less than light/heavy vehicle collisions

• Any system chosen must reduce the current risk. When a collision situation (route contention) has been detected the CAS system is expected to series of progressive alerts to the driver. These progressive alerts indicate that the distance between the vehicles is closing and the driver should take action. These progressive warnings can escalate from audio tone only to audio, visual, or other warning modes.

Driver – vehicle interface requirements These requirements define specific ways in which the CAS systems interface with the driver (i.e., Driver-Vehicle Interface), and include indicators, displays, and warning methods. CAS should utilize different audible tones (e.g., different pitches, patterns, lengths, etc.) or tactile warnings to provide multiple progressive warnings as an object crosses the warning thresholds. The CAS system should include a visual indicator when no vehicles or objects are posing a hazard. The indication may be provided by an instrument panel warning light or an indicator that is integral to each system. The CAS system should use a visual indicator to provide system operational status. This status may be indicated by an instrument panel warning light or an indicator that is integral to each system. The CAS system should use a visual or audible indicator to indicate a system failure or malfunction. This status may be indicated by an instrument panel warning light or an indicator that is integral to the system. The CAS system indicators should be clearly discernible in direct sunlight and at night. Consideration should be given to adjust the brightness of the indicators during night operation. Excessively bright indicators have been found to be a distraction to operators.

1.0 TYPES OF COLLISION AVOIDANCE

The first and most prevalent, is close proximity (<20m) type collision avoidance systems which are suitable for slow speed applications. The second class of systems detects longer ranges (50m – 150m) and is meant for higher speed (10km/h – 50km/h) incidents. Below is a description of both classes of systems as well as typical scenarios in which they would be applicable.When deciding on an appropriate collision avoidance system, operations should consider the typical risks and past incidents associated with their operation in order to guide them in deciding which class of system to use.

1.1 Close proximity (<20m) – slow speed type collisions (0km/h ≤ Speed ≤ 20km/h)

The intention of these types of systems is to warn the haul truck operator of light vehicles / pedestrians that are in close proximity to the haul truck and possibly in one of the operator’s blind spots.This is because the available systems that target this segment operate with maximum detection ranges ranging between 8m (Preco Radar) and 20m (Hazard, Booyco RFID etc). Typically these systems are designed to assist the operator at start-up (before moving the machine) or whilst reversing. The speed of 20km/h was calculated as the maximum speed under which this class of CAS will provide sufficient warning to an operator to allow him/her to avoid a collision (Table 1 and Table 2).

1.2 Stopping distances Table 1 show the calculations for stopping distances and stopping times for a loaded haul truck driving downhill on a 10% gradient. This was considered the worst case scenario and hence would represent the maximum stopping distances and maximum warning time requirements that a CAS system would need to provide.

Table 1.Comparison of different CAS technologies to warn operator in time (and Distance) to prevent collision by bringing truck to a complete stop.

[Table-2 - For the purposes of these calculations two actions that an operator could take to avoid collisions are assumed. The first avoiding action is to bring the machine to a complete stop from a predetermined speed. The second type of avoiding action was to reduce the speed of the machine from a predetermined speed to 20km/h. At 20km/h it was determined that the operator could safely swerve to avoid a collision without loosing control of the machine and incurring secondary collisions such as driving into a berm or overturning. It can be seen from Table 1 that for both scenarios the slow speed close proximity class systems are effective up to 20km/h. Beyond this speed this class of devices will not provide adequate warning time and insufficient time to stop or slow the machine to avoid a collision. Technologies that specifically target close proximity type collisions are radar based, low frequency radio identification (RFID), and high frequency RFID. Technologies using Mesh Networking and Machine Vision Cameras are currently being developed. It should be pointed out that most long range high speed type collision avoidance technologies would also be suitable for close proximity-high speed collisions albeit at a higher capital cost.]

1.3 Collision scenarios –Figures show the typical type collision scenarios.

Figure 1 Collision at intersection where one machine fails to adhere to the stop signal

Figure 2 Lane departure one truck drifts into the oncoming lane.

Figure 3 Rear truck moving faster and front slower

Figures 4, 5, 6 &11 Haul truck reversing into parked obstacles that are in the blind areas of the operator

Figure 7 Light vehicle overtaking haul truck

Figure 8 Haul truck parked or moving inside the swing radius of shovels, draglines etc.

Figure 9 Haul trucks simultaneously reversing at crusher / tip or inside the pit

Figure 10 Haul truck reversing towards an embankment.

Figure 12 Haul truck on collision course (at slow speed) with fixed structure.

Figure 13 Haul truck runs into berm.

Figure 14 Truck   following with differential speed. Forward machine is slowing down. There is potential for duck tailing or forward machine is parked in which case a collision is possible.

1.4 Collision scenarios

Long range (0m – 150m) High Speed (0km/h ≤ speed ≤ 55km/h) collision warning systems

The second class of collision warning system is high speed-long range collision avoidance systems. These systems operate on the principle of detecting potential threats (light vehicles, other haul trucks etc.) in the direction of travel and providing sufficient warning time to the operator to take action.Action could include applying brakes to bring the machine to a stop or it may involve slowing the machine to a controllable safe speed before swerving to avoid a collision. Table 1 shows the calculations of stopping distances and times. It can be seen that this class of CAS that these systems would operate at speeds up to 55km/h where stopping distances of 150m are required on a downhill gradient. High frequency RFID which typically has a range of 50m – 70m would not provide sufficient warning time above 35km/h. At 35km/h the operator needs approximately 65m to bring the machine to a stop. Hence the 50m warning is insufficient. If it were possible for the operator to slow the machine down to 20km/h and take action then high frequency RFID would be effective up to a speed to 40km/h. Long distance radar and GPS have long ranges. Long distance radar can detect up to 150m while GPS based systems are effectively limited to 500m by the vehicle to vehicle wireless communications network. Both these technologies would be able to provide adequate warning to the operator at all speeds.

Lane departure one truck drifts into the oncoming lane

A truck drifts onto the oncoming lane. Several factors can cause this including, driving around a curve, loss of concentration due to operator fatigue, avoiding a slow or parked vehicle ahead etc. A long range CAS would detect a potential collision and provide warning to the operator to correct course. Slow moving machines or parked machines pose a potential hazard. This can be even more hazardous if the parked machine is around a curve. A long range CAS system should be able to detect slower moving or parked machines in time to allow the fast moving machine behind to slow down or stop.

Haul truck runs into berm

Several factors can lead to a truck running into a berm. Taking avoiding action, operator fatigue, poor road conditions are some of them. Technologies that use tags or receivers (RFID or GPS) will not be effective in preventing collisions with embankments. Technologies are available to detect if the operator is driving within his lane and alarm the operator if he drifts out (Accumine, Dephi systems)

2.0 COLLISION WARNING TECHNOLOGIES

These technologies include Radar, Radio frequency Identification, Mesh Networking, GPS and Machine Vision systems. The aim is to describe the operation of these technologies, discuss their advantages and limitations that are applicable to surface mining conditions.

2.1.1 Radar

There are several radar based CAS systems.

Fitted only to the host unit but can detect other people, objects and equipment  Works on line of site although some technologies use multiple units and software to “bend” the signal slightly to try to avoid spurious alarms. Antennas fitted outside the vehicle with alarm units (rows of lights or pie chart screen for visual and audible alarm) fitted inside cab.

2.1.2 Basic principle of radar (RAdio Detection And Ranging)

The basic principle behind radar is a signal is transmitted, it bounces off an object and it is later received by some type of receiver. Radars use certain kinds of electromagnetic waves called radio waves and microwaves. EM waves transport energy through a vacuum – this implies that the speed of the signal is constant (c = 292,792,458 m/s). This feature is used  to determine distance calculations to targets and  is called ranging.. Once the radar receives the returned signal, it calculates useful information from it such as the time taken for it to be received, the strength of the returned signal, or the change in frequency of the signal. This information is then translated to reveal useful data: an image, a position or distance away and the velocity (speed) of a haul truck.

2.1.3 Radar for mining equipment

There are several types of radar systems which include Pulsed, Synthetic Aperture Radio, Doppler, Continuous Wave etc. Collision avoidance systems for mining equipment that use radar as their primary technology have the advantage that they are low cost.. Another advantage of radar its ability to work in all weather conditions (rain, mist, fog etc.) – although significant mud build up onto an antennae can cause operation to deteriorate. Radar systems are relatively easy to install. The positioning of the antennas is critical. If the units are installed too low in front or behind then too many rocks etc. will be detected. Mounting the unit too high may cause the radar to miss low objects which, depending on the size of the haul truck, might be light vehicles or people.

Radar systems can detect any object that is able to reflect the EM signal back. Hence other vehicles, people, rocks, buildings, trees etc will be detected. The detection of rocks and foliage may be seen as a false alarm. Too many false alarms could be seen as a nuisance to operators. Nuisance alarms are those emanating from objects of which the operator is already aware or from objects that pose no danger. Too many nuisance alarms may result in an operator not taking a system seriously and ignoring alarms even when a potential collision is imminent. Because of the potential nuisance alarms. In addition it is advisable to integrate radar systems with cameras in order to minimize the number of LCD displays inside the machine. The forward and rear cameras should be activated by a switch on the transmission and the radar alarms should be superimposed on the picture.

2.2 Radio Frequency Identification (RFID)

2.2.1 How it works

Radio Frequency Identification operates on a Reader and Tag principle. In its simplest form RFID systems work on the principle of inductive coupling. The reader’s antenna coil generates a strong, electro-magnetic field, which then penetrates the tag. The tag is essentially a coil – many windings of copper. The electromagnetic field induces a voltage that allows the tag to function. The tag or more accurately called the transponder sends back an electromagnetic signal to the reader. Each tag normally has a unique identity, so when the reader receives the signal from the Tag it can identify where it came from.

RFID systems can be classified as active or passive, high frequency or low frequency.. These features are important when evaluating RFID systems for collision avoidance, because they determine the range (read distance) of the system as well as the effect of the metals etc on the system.

2.2.2 Nautilus Buddy Haul Truck System

Nautilus International has a low frequency RFID product called the Nautilus Buddy Haul Truck System. It is 125 kHz system that uses two loop antennae’s to propagate a magnetic signal. The system uses a radio frequency communication link to transmit signal back to the haul truck. One Antenna is mounted at the front of the truck close to the front railing and a second at the rear. These antennas radiate a field which surrounds the truck completely, including underneath the truck. A tag (Belt pack) is mounted on people or on light vehicles. The range of the coverage is shown where it can be seen that it fluctuates between 15m in the front of the truck to approximately 9m on the sides and the rear of the machine. The complete Buddy system CAS equipment is shown below.

The system calculates the distance that the potential threatening light vehicle/ haul truck is, and displays this information on the haul truck display as well as on the Tag inside the light vehicle. The system uses two antennas to differentiate if the target is approaching from behind or in front. The system has an optional Cab Video Unit where the data can also be displayed This display data includes warning messages for the driver and also shows whether the “target” is a pedestrian or a small vehicle. An audible alarm built into the Cab Video Unit will increase in frequency as the Haul truck approaches the “target”. Once the Haul truck gets too close to the “target” the Haul truck’s air horn will automatically sound and the headlights will flash on and off to warn personnel and small vehicles in close proximity to move away to a safe distance. The Nautilus system has excellent coverage all around the machine and even underneath it making it suitable for close proximity slow speed collisions. On the other hand the system is expensive to install and every haul truck and light vehicle needs to be equipped with the system for it to be effective. The size of the Belt pack could also be a deterrent for adoption. Also against this system is the relatively high cost of the unit.

2.3 High Frequency RFID systems Advanced Mining Technologies (AMT) CAS-CAM

System description

Radio Frequency Identification

• This technology uses radio frequency signals and detection via antennas.

• Requires line of sight between transmitters and receivers.

• Requires each unit or object to be fitted with the technology.

• Is often combined with camera technology with some manufacturers using several units to add sophistication to the alarm logic that can be programmed, and switching of cameras looking at the side of the equipment where the potential collision has been detected.

• On smaller vehicles and equipment the RF unit is combined in rotary flashing light with just an alarm box in the cab

• Can be programmed to alarm at set distances, and even identify specific vehicles with the alarm

• Is the same technology used in modern hospitals to keep track of patients, and in factories to keep track of tools and components.

The AMT CAS-CAM system is a high frequency RFID system. It operates on the 433MHz frequency which puts it into the high frequency range.. the tags provide their own power and are not dependant on the EM field emitted from the reader in order to communicate.

The CAS-CAM system consists of readers, tags and cameras. Tags are installed on each person, light vehicle, heavy vehicle and other items of value. Figure shows the RF unit as well as the camera installed on the rear of a haul truck.. Heavy Vehicles also have video cameras and an LCD video display unit. The images from the camera and the alarms from the RF units are displayed, simultaneously on the LCD unit inside the haul truck.

AMT CAS-CAM RFID reader and camera. The Radio Frequency system transmits digitally coded data such as tag identification number, tag type, vehicle status and tag status. This allows the system

to discriminate between classes of objects e.g. Heavy Vehicle (HV), Light Vehicle (LV), Stationary Object (SO) Personnel Tag (PT), Test Station (TS) etc. The system comes in three options:

1. Video Only system for enhanced vision applications: CAS-CAM

2. RF Only system for automatic object detection: CAS-RF

3. Video & RF systems (vision & object detection): CAS-CAM/RF®

2.4 GPS Based systems

2.4.1 How GPS works

The Global Positioning System (GPS) consists of a constellation of 27 Earth-orbiting satellites (24 in operation and three extras in case one fails). These satellites are in a fixed orbit approximately 20,000km above earth.. A GPS receiver, such as a handheld unit or an electronic circuit board type receives radio messages from these satellites. The receiver then calculates its distance from the satellite sending it a message. The receiver obtains messages from at least three satellites in order to triangulate its position on the earth’s surface. Typically a receiver would use around 6 to 12 satellites (if available) to triangulate its position. The more satellites available the more accurate the position fix. Because the earth is rotating, satellites appear and disappear over the horizon, hence the more satellites that are available not only increases the accuracy but also reduces the risk of loosing accuracy.

GPS Technology

• Each vehicle or machine is fitted with a GPS unit

• The individual vehicle or machine positions as determined by GPS are transmitted to a central computer and are scanned for potential collisions

• If a potential collision is detected warnings are sent to the vehicles or machines involved using radio transmission

2.4.2 GPS based collision avoidance

GPS by itself cannot do collision avoidance – it is simply a means to establish position. By knowing the positions of vehicles in a mine and communicating these positions to machines it is possible to start to have the first part of a collision avoidance system based on GPS positioning. The principle of a GPS based collision avoidance system is as follows: – Each machine is equipped with a GPS receiver to obtain its position – In addition a communication system is required on each machine in order to broadcast its position as well as “listen” to the position of other machines in the vicinity (0 – 500m range) around. The communication network is probably where the most differentiation occurs with GPS based systems.  – On each machine calculations are performed to see if any machine (light, heavy etc. is a threat and an alarm is activated if it is a threat.

2.4.3 Acumine Proximity Detection System.

The Proximity Warning System is a GPS based system that operates on Haul trucks, Light vehicles as well as People. Three modules are used: Haul Truck Proximity System (HTPS), Light Vehicle Proximity System (LVPS), Personnel Proximity System (PPS) and a Base Station. The HTPS alarms the haul truck driver when another truck, a light utility vehicle or personnel is within the defined proximity of the haul truck. The haul truck forms an ad-hoc mesh network with these agents, all of which are equipped with GPS, and broadcasts its position and velocity.. The HTPS will generate a different alarm according to the threat level, e.g. truck approaching in front, vehicle behind etc.

The system uses a dedicated on-board computer for processing and alarming in the haul truck and light vehicles. A Personal Digital Assistant (PDA) is used to warn personnel such as pedestrians etc. Each agent uses a GPS sensor and an Omni directional antenna for wide area coverage. All these agents are registered in a single ad-hoc network. The area of operation is by line of sight of the agents in the proximity and the area of detection. This is possibly a limitation of the system .Systems based on line of sight will typically give ranges of 100m – 500m depending on conditions. However if line of sight is obscured such as on ramped curved roads or possibly at intersections this could become an issue and the system would not detect with required level of fidelity The operator interface is either a simple audible alarm or a full graphical interface as shown in Figure.

The system can be classed as a long range high speed system There are two major drawbacks of this system. Both relate to the wireless network system that they have adopted. One drawback involves the issue of line of sight which cannot be guaranteed in mining environments. The other involves the use of a base station which is a weak link that compromises the system long term operation. The entire fleet would be left without a collision warning system if the base station went down.

2.6 Camera Based Technologies

Collision Avoidance – Cameras

• A reliable technology of video cameras that the operator can select to give better vision in the blind spots of the vehicle.

• A passive system relying on the operator to choose the camera. (Can be tied into the reverse gear signal or other functions)

• Multiple cameras (blind side, reversing, etc.) are sometimes fitted. Additional cameras, whilst increasing visibility, can also complicate use.

• Modern LCD colour screens are much more reliable than old CRT ones. When correctly trained operators can choose night settings to reduce night time glare inside the cab.

• Installation of cameras will not guarantee that collisions will be avoided. However, their installation gives operators better tools to enable them to do their jobs safely.

2.6.1 Caterpillar WAVS

WAVS stands for Work Area Vision System.. The WAVS system comes in four configurations – single camera, 2 and 3 cameras and a special 793 haul truck configuration. Single camera systems are popular with smaller machines such as wheeled loaders, etc. For haul trucks multiple camera units are required. The multiple camera units are automatic units i.e. the rear camera is activated via the transmission. Side cameras are manually activated. A useful feature is that the operator cannot defeat the cameras (switch them off) as there is no manual override. This implies that the cameras are always functional. Cameras come in two configurations 115 degrees and 78 degree options which are used depending on the application. The cameras come with special mounting brackets and have internal heaters to prevent misting in cold weather. The cameras can take vibration and is sealed (High pressure washer compatible). This makes the WAVS an extremely rugged unit. In comparison the CAS-CAM cameras (discussed above) the CAT cameras can go down to 0.5 Lux (CAS CAM goes down to 1 LUX).

It is recommended that multiple cameras be installed on haul trucks -

a. Four cameras (front, rear and two side cameras) are recommended. Depending on the size of the truck the side camera on the operator cab side of the truck may be omitted. Installing an additional camera under the truck could help the operator see large rocks which could damage tyres.

b. The rear and forward cameras of the system should be linked to the transmission of the machine and activated automatically when the reverse or forward gears are selected.

2.6 Machine Vision Systems

Machine Vision commonly known as Vision Systems is a software technique that analyses images and outputs characteristics found such as objects, characters, edges, distances, colours etc. The software does this by analyzing pixels and calculating features inherent in the pixel configuration. For example objects can be recognized using a technique called pattern recognition. In pattern recognition the system is trained using sample photographs or images. Similarly character recognition is performed. Bar coding is one of the most common forms of machine vision systems. In Bar coding a laser line is shone on the bar code to illuminate the bar. The machine recognition software detects the edges of the bar code and calculates the width of each bar. A combination of different widths constitutes a bar code. Machine vision systems are very dependant on lighting conditions. Bright light can blur edges and this confuses machine vision software. Therefore infra red light is often used to illuminate objects. Nevertheless ambient light still poses a significant problem and needs to be dealt with in an application. Camera vibration is another threat to machine vision applications and can blur images. Perhaps the most significant problem with pure machine vision systems from a collision avoidance perspective is that it is a 2 dimensional technology. This implies that standard machine vision system will not be able to decipher how far away a threat is from the host vehicle. Solution to this problem – Stereo Vision. This involves two cameras which use disparity calculations to calculate distance.

2.7 Pros and cons of various systems

GPS & RF

Cameras

RFID

RFID + Cameras

Radar

CONCLUSION – The recommendations for Anglo American operations are as follows:

1. Each operation needs to undertake a risk assessment in order to determine its risk profile. This should involve studying past collisions, near misses or high potential incidents etc. The risk assessment should also identify what actions needs to be taken in order to reduce the risk of collisions between people, mobile machinery and other dangerous machinery. It should also take into account the possible speed of vehicles and determine the minimum and maximum distances from a vehicle at which the detection and warning alarm are needed to sound off;

2. It is prudent to inform operations that all collision avoidance (CAS) systems / technologies investigated by the working group were found to have certain technical and operational limitations. This report provides the necessary technical information discussing limitations and strengths of each system. Understanding the risk profile of the mine together with the technical and operational limitations of the CAS system is a key to mitigating the risk of collisions.

3. Systems that are aimed to be used for anti collision and proximity warning should be not be named: “Safety Systems”, rather they should be referred to as “Operator Enhancement Systems”. This would ensure that the responsibility remains on individuals for ensuring their own safety. It also ensures that individuals do not rely solely on the technology for protection.

Surface Mining Equipment

4. It is recommended that multiple cameras be installed on haul trucks.

a. Four cameras (front, rear and two side cameras) are recommended. Depending on the size of the truck the side camera on the operator cab side of the truck may be omitted.

Installing an additional camera under the truck might help increasing tyre life.

b. The rear and forward cameras of the system should be linked to the transmission of the machine and activated automatically when the reverse or forward gears are selected.

c. The working group did not comprehensively evaluate all vendors of camera systems. The robustness of the camera system as well as the ability to clean the lenses is important factors to consider when making a choice of camera system.

5. In addition to cameras a RFID based system and/or a radar based system should be installed.

a. If the risk assessment shows that slow speed, close proximity collisions are the major threat then radar systems should be installed.

b  The Preview Radar* system should be installed. The system has a limitation of an 8m range and this should be carefully considered before deciding to install the system. A recommended configuration is discussed in the body of the report.

c. If the risk assessment shows that high speed, long range collisions are the major threat then an RFID based system is recommended

6 The range of the system chosen should be set to a minimum of 50m. If possible the maximum range of 100m should be used.

7 The ability of the system to detect near / alongside metal structures such as conveyor belts should be tested. If loss of detection around metal structures is found then alternative safety procedures should be put in place around these areas.

8 A reverse / back up audible alarm should be used for warning while reversing.

9. It is recommended that a reverse / back up audible alarm should be used for warning while reversing.

Collision Avoidance Technical Report Author(s) -

H. Faul; M Ruplal (ATD)

O. Munoz; E. Riffo (Anglo Base)

S. Niven (Anglo Coal)

A. Naidoo (Anglo Ferrous)

D. Janicijevic; V. Nhlapo (Anglo Platinum)

The reef in this sector is mostly vertical or near vertical in dip. As we go down the ore to waste ratio increases. This in turn continuously changes the mining cost on the financial side and also calls for a stronger technical team to handle the situation. A long range planning will need to be done keeping long-term profitability in mind.

We need to take the working pit slope and final pit slope into consideration. Back filling where and when possible will sort out the environmental problems and also reduce the hazards of dumping on slope of hill. Some of the benches would have undergone partial weathering due to exposure, which when exposed to rains will crumble and attain their natural angle of slope.

As we do the exploitation from lower horizons and with the increase in quantum of waste the hill slope may not be able to contain all the waste handled. This in turn will create necessity of taking the waste downhill and outside the forest land. A stage may occur where we may have to rehandle the existing dumps itself upto certain level depending upon final pit slope. This would need to be determined at this stage itself to plan dumping of outside final pit slope. The over all height of mine will be more which will change the final pit slope. This again would need determination with studies. Final pit slope determination will be site specific and is not universal.

Mining of ore and waste will be a continuous process. The ports in west coast of India will pose problems between June and September while the east coast of India will give hiccups between September and December.  The mining areas by themselves will give problems in monsoon. As the railway and port infrastructure are gearing up and with railways insisting on a loading time just 5 hrs for 4000 tons we would need to maintain surge piles for faster activities. Such surge piles again would be of sizeable height. Reloading from such surge piles again would require a different level of dump management. Mostly in such situations wheel loaders are used for purpose of ease in maneuverability. There are instances of such dump collapse with grievous results. Also unlike a conventional dump such surge piles would need closer supervision especially just after retrieval and again unloading from top. At that point of time an undercut could exist. (Sketch-2)

A safe practice would be as rule to put a barricade at the entrance to such dumps before loading out so that no vehicle can enter. Before recommencing unloading operations, dress such dumps and then remove barricades.

Thus this sector will need to gear up in areas of slope stability of benches, dumps as well as dump management.

Wash out of ore stack is a loose – loose situation where in we loose ore and simultaneously pay compensation for polluting the agriculture lands. It is necessary that we take pro-active measures by erecting portable barricades and a drain with settling tank. (Sketch 3 and 4) Fines recovered from such settling tanks become marketable which would otherwise have been lost.

STABILITY OF BENCHES

In the case slope stability lot many studies have been done. We do not go into the intricate details. The topic is quite vast and complex with different type of slope failures. To come to a conclusion /prediction etc it involves detailed studies. These studies do not give universal results but are site specific. We will look into some of the steps that we need to take in the field.

Water Over and above the structure of the deposit, the contributor is rainfall. Except for the float ore all the mines are situated on the hilltop. Rainwater needs to be properly coursed out so that it does not enter into the partition between ore and waste or through tension cracks created by either release of stresses or by exposure of weaker planes, which may be parallel to the strike and which dehydrate and weather out. Water can also percolate wherever there is contact zone between pervious and impervious mass. Water percolated plane in general acts as zone which assists the sliding action. As we reach deeper horizons and with steeper pit slope the result could be catastrophic. .  Blasting without control on vibration would prove as a contributor to the slide.

Rainy season is the usual time when slope failures occur. We should plan for coursing out of water; all benches should have a uniform longitudinal slope of say 1 in 100 to assist free flow of water.Bench floor should have a slope towards the high wall of 1 in 25.

Where possible it is better to cut in situ berms on the bench edge. This could be achieved by taking a thin slice of 1 meter depth leaving the berm of one meter wide and retreating.  This would leave a one-meter wide, one metre high berm on the edge (Sketch-5)

As yet another step a drain would need to be cut along top and bottom of hill parallel to the benches and at a distance of 10-15 mtr away, to carry the rainwater. This drain will ensure that such run off water is clean and would not necessitate collection settling, prior to discharge in to the natural water course.

Water collected from benches and when they pass through loose or filled strata should be made to flow In such a way that it does not under cut and/or erode. The drain in steeper slopes should be lined with non-erodable material (Sketch-6)

When we divert water through the bench floor, the quantity goes on increasing as it goes down due to increase in catchments area. Also depending upon the length, the velocity also would increase. It becomes necessary to cut down the velocity to reduce erosion. This would mean introduction of speed breakers.  Suggested method is as below to avoid erosion of bunds, boxes made out of screen cloth is filled stones and kept slanting as energy dissipater. (Sketch –7)

Slope stability of benches prima facie though complex, proactive measures will go a long way in maintaining the safety standards.

MONITORING:- An official of the category of Assistant mines manger and a Geologist would need regularly to walk through all benches and observe for cracks on the floor. Simultaneously the face should be observed for seepage of water. Steps should be taken to divert such seepage in the bench floor above. Should they observe any it should be recorded. Such record should mention the date location, section/ co-ordinate/ grid, length and the width of crack. Water should not be allowed to accumulate on bench floor. Any longitudinal propagation of cracks should be recorded and monitoring frequency should be increased. A simple method to establish a prima-facie for initiating further steps is to drive two sticks of about 50 cm, one on each side of the crack at a distance 1 mtr. from the crack, tie with a cotton string without slag. Should the string break after a day or two, increase the number of such string tying stations at say 5 meters   apart. A placard indicating the number and date to be kept at site (Sketch-8)

In case if the opening out is noticeable withdraw men and machine from likely to be affected from benches above and below. Initiate steps to flatten the slope.

When it is observed that the crack shows tendencies of horizontal and /or vertical movement the record should show the shift distances in 24 hrs. Later as the rate movement increases in any of these axes such measurements would need to be taken at 12 hrs or 8 hrs. This would facilitate evacuation at short notice. A gadget that could be locally made and used is shown in the Sketch-9. This could be hooked on to a 12 V D.C. Battery and siren so that when the movement of strata more than anticipated takes place. Pointer attached to the string comes into contact with the metallic point in the scale, closes the circuit, the siren gets activated and warns of the imminent danger.

The movement shown by the needle will include horizontal as well as the vertical When the slide is noticeable it becomes necessary that we measure these independently.

For measuring the vertical movement, Make two masonry pillars one on each side of the crack at sufficiently far distance of say 1.5 mtr. Embed metal rod with a projection of one meter above masonry. Take a plastic pipe of 6mm bore of length 6 m. Fill with water for about 4.5 mtr. Remove air bubbles. Tie the plastic pipe one end to each metal rod. Mark the point of water in each rod. Subsidence can be measured with a scale. Also install a staff in the cracked area. Measurement can be taken with a leveling instrument. This will avoid persons entering in the hazard prone area (Sketch-10)

ACTIVE DUMP MANAGEMENT

Certain measures need to be taken to maintain safety of men and material operating the dump. Also protection of environmental impacts of short and long term nature is an additional issue that would need to be looked into.

Any material when dumped loose assumes certain angle known as angle of of repose. Such angle will amongst others depend particle size granulometry, inherent moisture, solubility of the material, weathering characteristics, height of dump, topography of dump, quantum of rainfall, intensity of rainfall, presence of water spring or seepage of water in monsoon  etc

With so many variants playing their roles the stability of the dump slope is an important area to get constant attention

In dry season the dump will assume certain angle of repose and remain stable in that angle. The same material will in the presence of copious water due to rain tend to flatten by creating a slide to the foot of the dump.

The retention wall should be far away so that undue load is not exerted on it causing it to yield. In case if the retention wall is close and is strong the waste will start building up and at certain point of yield. In such a situation the waste could flow along the river course. Also if the dump is bridging a valley could block the natural water course. Such build up of water will ultimately yield with great pressure. The result will be catastrophic. (Sketch –11)

In circumstances when the waste is not much wet, it will not flow down but start building up from midpoint or at the top itself. This will make the angle repose steeper. The load on such condition will build up and at certain point of time yield and slide down en-mass. This happens with little or no indication except for some crack. The situation could aggravate if water flows through such crack. (Sketch-12)

It is necessary that dumps are regularly checked for any change in slope angle, subsidence crack etc. It will be prudent to dig a trench sufficiently wide   between the dump and retention wall to take care of the flow percolated and seepage water. Also such trench will arrest the momentum of any rolling boulders and prevent damage to the retention wall.

It is also necessary that rain water from the mine as well as from the top of dump is coursed properly so that it does not flow down the hill either through the dump or from sides close to the dump on the virgin topography. These will tend to erode the slopes or under cut the sides as the case may be and weaken the stability of the dump (Sketch-13)
As a general practice a sufficiently strong tow chain should always be available at dump. The dump should be sloped at 1in 20 to 1 in 30 towards the entrance. A steeper slope will result skidding of truck. A regular inspection of dump, stopping of any flow of water on the dump slope go a long way. Any unnatural behavior of dump on the floor or slope should be investigated.