Understand the Mine Plan and Mine Closure Guidelines by the Ministry of Coal, outlining the process, requirements, and key amendments for effective implementation.
MINING PLAN AND MINE CLOSURE GUIDELINES (as per Guidelines issued by MoC dated 29.05.2020)
Implementation of the approved Mining Plans shall be sole responsibility of the mine
Once approved shall be valid for the balance life of the Mine, provided that any modification(s) of the mining plan is approved by the competent authority and such approval of the modified mining plan shall remain valid for the estimated balance duration of the mining mine.
- The Stage plan for 1st year, 3rd year, 5th year, year of achieving Peak rated capacity, Final year (i.e. at the end of mine life) and post closure shall be submitted at the time of initial submission of mining plan.
- The project proponent shall submit a report/information to Coal Controller, CCO, Kolkata along with a copy to administrative section delating with allocation of block and section dealing with approval of mining plan at MoC/CCO for information.
- Report to be submitted least 180 (one hundred eighty) days before the expiry of 5 year starting from the commencement of Moneral Concession Rules 2020 or date of execution of mining lease deed whichever is later.
- Above information must bear certificate of qualified person/Accredited mining plan agency and have approval of respective company board. Non submission of updated Mining Plan for review during the stipulated time may result in cancellation /permission withdrawal as decided by CCO.
- Modification in Mining Plan for:
- Change in mining method;
- Facilitating increase in sanctioned peak capacity that’s in excess of 150% of Sanctioned rated capacity;
- Change in leased area;
- In the interest of safe and scientific mining;
- Conservation of minerals;
- Protection of environment.
- Addition of reserve by way of proving of reserve in the existing lease area.
- Changes in final mine closure conditions
- Such other changes determined by Central govt.
- For other minor changes, company board is empowered to make modifications
- change in land type within leased area
- changes in HEMM deployment plan
- Change in location of infrastructure within leased area.
Submit specific changes to CCO Kolkata along with a copy to administrative section delating with allocation of block and section dealing with approval of mining plan at MoC/CCO for information
- Mining Plan submitted for approval requires prior approval of concerned board of company.
- Base Date of Mining Plan: Date on which the extractable reserve, balance life etc. has been quantified;
- Proposed lease area in the Mining Plan: Area specified in mining lease and includes non mineralized area required and approve for activities referred in definition of mines as per Mines Act 1952.
Evacuation route, R&R & Employee Township area outside the block will not be part of the Mining plan.
- A certificate is to be provided by the qualified person/Accredited mining plan agency that mining area is restricted within the allotted block boundary.
- Rule 16 of MCR 1960, State Government is custodian of the exploration data.
If Project area extends beyond the block boundary, certificate issued by the Mines and Geology Department of the concerned State Government must be attached stating
- Intent of State Govt for grant of extended portion lease
- Non existence of coal/lignite in that portion supported with the proof of the same
- Mining plan may be revised on year to year basis for extraction of more coal but for extraction of less coal on satisfaction of following conditions:
- If remaining extractable reserve of coal mine is less than 3 times of rated capacity
- Change is method from opencast to underground due to change in geo mining conditions(Prior approval of nominated authority is required)
- Approval of the revised Mining Plan shall not result in changes in the terms and conditions as well as efficiency parameters mentioned in the CMDPA/Allotment Agreement
- An undertaking to be obtained from Project Proponent the mine shall be operated as per the Environment Clearance (EC) & Forestry Clearance (FC) for the project.
MINE CLOSURE PLANS
A) Progressive/Concurrent Mine Closure Plan: Various land use activities to be done continuously and sequentially during the entire period of the mining operations
- Frequency and review: It shall be prepared for and examined periodically in every 5 years and will be subjected to third party monitoring by agencies approved by CG (e.g. CMPDIL, NEERI etc. )
- Activities included : mined-out land details & their technical and biological restoration plan, water quality management, infrastructure to be retained and demolished, disposal of mining machinery,
- Activities not included: If the backfilling of the mine void is being carried out as part of regular mining operation, it shall not be included in mine closure activities.
where the backfilling of mine void is being carried out specifically for closure of the mine, the same shall be included in the list of activities.
1. Final Mine Closure Plan: Activities would start towards the end of mine life, and may continue even after the reserves are exhausted and/or mining is discontinued till the mining area is restored to an acceptable
- Financial Assurance: The Mine Owner will open a Fixed Deposit Escrow account in any schedule bank, with the Coal Controller Organization (on behalf of the Central Government) as exclusive beneficiary prior to commencement of any activities on the land/ project area of the mine and shall submit to CCO before the permission is given for opening the mine.
- Escrow Account Calculation: Closure cost for an opencast mine comes (based on the current base year i.e. 01.04.2019) is Rs.9,00,000 per hectare and Rs.1,50,000 per hectare for an underground Mine. Rates will stand modified based on the wholesale price index (WPI) as notified.
Annual closure cost is to be computed considering the total project area of the mine multiplied by escalated rate (at the above-mentioned rates) and dividing the same by the balance life of the mine in years. An amount equal to the annual cost is to be deposited each year throughout the mine life compounded @5% annually.
In case these funds are insufficient to cover the cost of final mine closure, Mine Owner to provide the additional fund before 5 years of Mine Closure failing which it may be recovered by such other methods as the competent authority may deem fit in this regard.
- Assessment of Abandonment cost: Cost of progressive and final mine closure activities such as barbed wire fencing, dismantling of structures/demolition, cleaning of site, plantation, protective and rehabilitation measures etc. for the specified post closure period.
- Time Schedule for Abandonment: Action plan should be furnished in bar chart for a period of life of mine plus post closure period.
- Post closure period:
- For Underground mines & Opencast mines having stripping ratio lesser than 6 MM3 /Te: 3 years
- For Mines having stripping ratio more than 6 MM3 /Te: 5 years
- Final Mine Closure: Details of the Mining Plan including updated cost estimates for various mine closure activities and the Escrow Account already set up, shall be submitted to the approving authority for approval at least 5 years before the intended final closure of the
Closure would be completed only after acceptance of the third-party audit report by the CCO on the compliance of all provisions of Mine Closure Plan. Failure of restoration within the specified period may result in forfeiture of Escrow Account.
- Withdrawal from escrow Account
Up to 50% of the total deposited amount including interest accrued in the ESCROW account may be released after every five years in line with the periodic examination of the Progressive mine closure plan.
The amount released should be equal to expenditure incurred on the progressive mine closure in past five years or 50% whichever is less.
The balance amount shall be released to mine owner/ leaseholder at the end of the final Mine Closure on compliance of all provisions of Closure Plan. Compliance report should be duly signed and certified by the lessee and Coal Controller.
- Reporting:
The owner shall submit to the Coal Controller a yearly report before 1st July of every year setting forth the extent of protective and rehabilitative works carried cut as envisaged in Progressive and Final Closure Plans.
- Final Closure Certificate: Mine Owner to obtain a mine closure certificate from Coal Controller that work is completed as per approved mine plan/provisions.
If not, Coal controller shall give the mine owner a written notice of his intention to issue the orders for forfeiting the sum assured at least 30 days prior to the date of the order to be issued after giving an opportunity to be heard.
Key amendments
- Qualified Agency (QP) or Mining Plan Preparing Agency (MPPA) shall have recognition from the concerned company board that the qualification and accreditation of the QP and MPPA has been duly verified and is in line with provisions of MCR 1960.
- The project proponent shall submit one soft copy and four hard copies of draft mining plan/ modified mining plan to administrative section of MoC/CCO.
- Project Proponent shall register online using official email ID.
- QP/MPPA shall upload mining plan through a temporary login and submit to project proponent.
- Project proponent after incorporating company board approval, submits the plan to mining authority with prescribed fee. System of SMS alerts will be available at all stages.
- Observations of Internal committee members shall be uploaded online.
- Project Proponent shall make the required compliance online and submit the updated mining plan online within 15 days from communication of observations.(15 days extension in case of sufficient cause for non submission)
Approving Authority:
- For approving mining plan all categories of coal, lignite mines including sand for stowing, authority will be CCO, Kolkata.
Time Limit for dispose of application:
- 30 days from date of receiving application, if mining plan is compete in all respects.
If modifications are suggested, 30 days will be taken from date of submitting modified mining plan.
Communication of approval:
- In case of allotted/auctioned mine, section dealing with approval shall communicate decision of Approving Authority to Project Proponent within 5 working days through a letter confirming “in-principle approval” with a copy to the Nominated Authority, Govt of India.
Final approval will be communicated on payment of applicable payments and its confirmation from Nominated Authority.
- In case of mines other than allotted/auctioned mine, section dealing with approval shall communicate decision of Approving Authority to Project Proponent within 5 working days.
Revision: Aggrieved Person can appeal to Secretary (Coal), MoC for revision within 30 days of communication of order/direction. After giving reasonable opportunity of being heard by Authority, confirm/amend/set aside the order within 30 days.
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