A team of delegates from different subsidiaries of CIL visited Australia.

Concept presentation was made during CMD’s meet at CIL HQ.

It was agreed that some coal mines will be selected and CIL and Orica

will work together to improve overall productivity

The project was named as “Productivity Improvement Programme” (PIP).

The projects selected were AKWMC Project in BCCL and Dudhichua

Project in NCL.

The whole process was divided in two phases: Phase 1 was called

“Study of Ongoing Practices” and Phase 2 was called “Demonstration of

benefits”

Productivity Improvement Programme

AKWMC, Katras Area BCCLThe mine had been re-structured after amalgamation of Keshalpur and West Mudidih Mines.

Production target for 2008-09

•Coal - 1.5 Million Tonnes.

•Overburden - 4.5 Million cubic meters.

No. of working benches

•Overburden - 08

•Coal - 03

Machineries

•Shovels:

5cuM bucket capacity rope shovel- 06 Nos.

5 cuM bucket capacity hydraulic shovel-01 No.

2.8cuM bucket capacity hyraulic shovel- 03 Nos.

•Drills:160mm drill diameter- 05 Nos.

•Drill: 250 mm. Drill diameter-01 no.

•Dumpers on roll(35 Tonnes capacity) - 53 Nos.

Achieved high operational efficiency with stripping ratio of 1:3.

Achieved Coal Production of 1.12 MT against the target of 1.20 MT in 2007-08 .

Receptive to new technologies.

Sensitive to environmental issues like ground vibration,fly rocks and noise.

Low blasting costs.

Successfully doing excavation over old underground workings.

Higher percentage percentage of utilization of HEMM 85% as compared to other mines of BCCL.

AKWMC, Katras Area BCCL

PIP StructureProductivity Improvement Programme was structured as follows:

Formation of Steering Team: Steering team formed with some nominated members of Katras area and Indian Explosives Limited.The steering team meeting was scheduled once in a week for planning the operation in next week and to review the work done in last week.

Selection of benches: Since time period the study was very less some of the overburden benches in the mine were selected for PIP which are very hard and geologically disturbed where mine management was facing problems in operation.

Benchmarking of on-going practices in mine: Productivity of some of the key operations e.g. Drilling,Blasting and Mucking was benchmarked in terms of Rs./cuM and cuM/hr by time and motion study of each operation.

Demonstration of benefits: Productivity of the same operations e.g. Drilling,Blasting and Mucking was determined after some blasts were done on the same benches by M/s. Indian Explosives Limited by using modern blasting technology.

Calculations: Demonstration of benefits in terms of productivity was done by comparing demonstration and benchmarking data of each operation.

Presentation: A presentation on work done was made to the CGM (Katras area) and steering committee.

Project Planning by Steering CommitteeSteering committee met weekly to assess the progress of work done in previous

week and to plan the work for next week.

Appointed Mr. C.B.Prasad as an officer in-charge dedicated for PIP work.

AKWMC management suggested

To select only hard and fractured due to presence of depillared and caved goaf benches for PIP exercise, which were over VIII seam top, VIII seam bottom and VII seam.

To do time and motion study only for some selected machines deployed on those benches. The machines selected were:

Shovels: S-38, S-483, S-394 and S-342.

Drills: IDM 30 III, IDM 30 I and RECP 311.

To take transportation cost as a constant for both phases.

To take average of four months costs for determination of existing operating cost.

To conduct at least one blast in each bench for demonstration of the benefits.

It was finalized by the Steering Committee that Orica

Will conduct 4 stand up blasts by using advanced blasting technologies.

Will mark drill holes, supervise drilling operations and provide relevant training

to drill operators.

Will present the results obtained in both the phases of the study.

Project Planning by Steering Committee

Benchmarking of On-going Practices

Drilling operation

Time and motion study of drill machines IDM 30 III, IDM 30 I and RECP 311 and productivity was determined in terms of Rs./m and Rs./cuM.Drilling operation

Drilling cost

Blasting operation

Blast design parameters are studied and tabulated.Bench wise powder factor was determined and cost in Rs./cuM was determined.Blasting operation

Blasting cost

Mucking operation

Time and motion study for shovels S-38,S-342,S-394 and S-493 was done and productivity of mucking operation was determined in terms of Rs./cuM and material handled in cuM/hr.Mucking operation

Mucking cost

Transportation cost

Transportation cost was constant for both phases and material handled per trip was taken as 11cuM/trip as fixed by previous survey data.

Total mining cost

Total mining cost was determined by adding up drilling cost,blasting cost and mucking cost.COST COMPONENTS

DATA SOURCES

Study of On-going Practices- Phase I

Phase II-Demonstration of Benefits

Methodology adopted in demonstration exercise :

DRILLING OPERATION

•Marking of drill holes in staggered pattern on the patch.

•Monitoring of the drilling operation for ensuring proper depth and pattern

•Training imparted to the drill operators and helpers.

Training of drill operators and Helpers

BLASTING OPERATION

•To ensure proper charging of blast holes according to the plan.

•To model each blast with Orica’s patented softwares.

•To design each blast with the help of Shotplus-i software.

•To use hole liners in the crack holes. Blasting cost

MUCKING OPERATION

•Time and motion study of the shovels is done by dividing the blasted muck into three sections e.g. Initial, middle and last section as in study of on-going practice.

•Material handled in cuM/hr. was determined with the study data. Mucking cost

TRANSPORTATION COST

Transportation cost is taken constant as in study of on-going practice.

Demonstration of Benefits

Blast Design & Model – Blast 2Blast 2 in shotplus-i

Photographs of the blasted muck pile during demonstration

Results

HeadCost during

benchmarking operation in

Rs./cuM

Cost during demonstration operation in Rs./cuM

Savings in cost in Rs./cuM

Percentage savings

Drilling cost in Rs./cuM 13.23 10.27 2.96 22.39%

Blasting cost in Rs./cuM 19.59 13.80 5.79 29.54%

Drilling and blasting cost in Rs/cuM 32.82 24.07 8.75 26.65%

Mucking cost in Rs./cuM 23.46 14.8 8.66 36.91%

Total mining cost in Rs./cuM 56.28 38.87 17.41 30.93%

Overall savings in mining cost* in Rs./cuM 17.41 (30.93%)

Benefits Improvement in Fragmentation.

Drilling cost (per cuM) was saved by optimization of blast design parameters

Savings in production hours due to bigger blasts.

Exposure of mine management to advanced blasting technology.

Sharing of knowledge between BCCL and IEL.

Scope of improvement in Future

To Merge two small benches (5 to 6 m height) for faster development of the

mine. The mine is having capacity to drill 15m. Drill holes.

Application of Stratablast (a product of Orica’s Blast Based Services) for

mining of thin seams along with partings in a single blast for faster

development of the mine.Presently the mine is excavating no. of thin seams

in different benches.

To conduct bigger blasts for faster exposure of coal and better efficiency.

Help the mine meet environmental compliance norms.

DISCUSSIONS?????….

Thank you!!!

PHASE-I

STUDY OF ON-GOING PRACTICE

Method of study

DRILLING

Time study of:

• Drilling time.

• Rod changing time.

• Spotting time.

• Idle time.

• Meterage drilling. Rate of drilling (m/hr.) = Meterage drilling/ Total time taken in drilling (excluding

idle time). Drilling cost (Rs./m.) = Total cost incurred during the period of study/ Total

meterage of drilling done by the machine.

Back to main slide

MUCKINGBack to main

Time study of the shovels by:

• Study of the cycle time of loading of one dumper.

• Study of the spotting time of one dumper.

• Idle time of the shovel due to non availability of dumpers at the face. Material handled by the shovel (cuM / Hr) = Volume of the material carried by

the dumper per trip* / Total time taken in filling one dumper by shovel (excluding idle time of the shovel)

Mucking cost (Rs. / cuM) = Total cost incurred for the shovel during the study period/ Total volume handled by the shovel during the period.

* Standard volume carried by each dumper is considered as 11cuM.

COST COMPONENTSBack to main Following cost components are taken into consideration in determination of mining cost of OB

in Rs./cuM.

Cost of Diesel, lubes and other consumables

Cost of spares.

Cost of maintenance manpower.

Cost of operation manpower.

Cost of depreciation.

Following cost components are considered as a constant in determination of per cubic mining cost of OB due to non-availability of sufficient data:

Electric power consumption cost.

Hauling cost.

Dozing cost.

Administration cost.

DATA SOURCESBack to main

DATA SOURCE

Cost of HSD and consumables. New Keshalpur and West Mudidih Workshop.

Cost of Spares and maintenance. New Keshalpur and West Mudidih Workshop.

Cost of maintenance manpower. Finance deptt. of the project and Workshops.

Machine performance as per BCCL data. Excavations deptt. of the Katras area.

Monthly cost sheet. Computer deptt. Katras area.

Cost of explosives and blasting accessories.

AKWMC magazine.

Meterage drilling and cuM handled by machines per month.

Office of the project officer AKWMC and pit office.

Study of blasting operation in case studyBack to main

Study of following operations in blasting operation:

• Blast design parameters like burden, spacing and depth of the drill holes.

• Charging operation.

• Drilling cost per cuM.

• Blasting cost per cuM.

• Bench wise powder factor.

Study of drilling operationBack to main slide

Drilling cost( Rs./m.) in case study (Excluding administration cost)

HEAD IDM 30 III RECP 311 IDM 30 I

COST in Rs.(from Jan to Apr.08)

HSD,LUBES & CONS. 867627.00 1087946.00 830952.00

SPARE PARTS 172092.00 300237.00 185208.00

MAINTE.MANPOWER COST 388601.24 388601.24 582901.86

OPERATION MANPOWER COST* 584093.60 683766.03 564717.08

DEPRECIATION COST 359852.00 291333.00 327407.00

TOTAL COST 2372265.84 2751883.27 2491185.94

       

DRILL METERAGE 14402.00 13318.00 12861.00

WORKING HOURS 779.70 1101.50 842.90

DRILLING COST /M 164.72 206.63 193.70

       

COST/HR 3042.54 2498.31 2955.49

Avg. drilling cost/m

*includes one drill operator, one helper and half supervisor.

188.35

Mucking operation in case study.(Back to main)

Operation Cost of Shovel as per field study data (in Rs./cuM) (excluding electric power and administration cost)

* includes one shovel operator, one cableman and half supervisor.

HEAD S-38 S-394 S-342 S-483

Material handled in cuM/hr.( Mar. to Apr.08)

Initial Section 74.94 99.27 88.5 100.54

Middle Section 75.51 115.96 105.42 112.45

Last section 72.3 77.83 77.34 103.97

Average 74.25 97.69 90.42 105.65

Total working Hrs. (Jan. to Apr.08) 506.5 827.7 848.5 1968.2

COST in Rs. (From Jan. to Apr. 08) (Avg.muckig cost in Rs./cuM – 23.46 )

Cost of Maintenance Manpower 680052.13 1165803.70 874352.81 971503.10

Cost of operation manpower* 274395.85 547849.15 441606.15 791548.65

Cost of Spares & Consumable# due to comp. rep’g of undercarriage 87759.00 44410.00 311664.00# 132600.00

Cost of Depreciation 0.00 568028.00 0.00 1464724.00

Total Cost 1042206.98 2326090.85 1627622.95 3360375.75

Composite Material handled (cuM) 37607.63 80855.25 76721.37 207946.89

Cost/Hr 2057.66 2810.31 1918.24 1707.33

Cost per cuM in Rs. 27.71 28.77 21.21 16.16

Study of blasting operationBack to main

Bench

Avg.depth in

M

Av. Burden

in M

Av.spacing

in M

P.F.in

cuM/Kg.

Avg. drilling and blasting

cost in Rs/cuM

Avg. blasting

Cost* in Rs./cuM

S-38(VIII seam bottom) 11.38 3.53 4.25 1.27 32.51 20.10

S-394(VIII seam bottom) 11.20 3.27 3.87 1.19 34.29 20.76

S-483(VIII seam top) 6.41 3.04 3.90 1.31 38.47 22.52

S-483( VIII seam top) 11.19 3.80 4.70 1.51 27.68 14.99

*includes explosives cost and salary cost of blasting crew. Avg. 1.32 32.82 19.59

Drilling and Blasting

BENCH WISE P.F. AND BLASTING COST (Rs./cuM)

BenchDate of blast

Avg. depth in M

Av. Burden in M

Av.spacing in M

P.F.in cuM/Kg.

Blasting cost in Rs./cuM

Drilling cost in Rs./cuM

Avg. drilling

and blasting cost in Rs/cuM

S-394 19.05.08 6.52 3.7 4.2 1.37 15.89 16.17 30.93

S-394 27.05.08 6.09 3.7 4.2 1.84 11.77 12.32 22.73

S-342 30.05.08 11.73 4 4.5 1.93 10.96 10.38 20.75

S-38 15.06.08 14.34 4 4.5 1.84 11.58 12.06 21.87

Back to main     Avg. 1.75 12.55 12.73 24.07

Mucking operation Ongoing practice

Operation Cost of Shovel as per field study data (in Rs./cuM)(Excluding Electric Power and administration cost)

HEAD S-38 S-394 S-342 S-483

Material handled in cuM/hr. (From May - June 08)

Initial Section 138.03 147.86 171.81 N.A.

Middle Section 157.57 191.05 204.18 N.A.

Last section 114.17 124.46 140.89 N.A.

Average material handled (cuM/Hr)

136.59 154.46 172.29 N.A. 

Cost/Hr 2057.66 2810.31 1918.24 N.A

Cost per cuM in Rs. 15.06 18.19 11.13 N.A.

Mucking cost in Rs./cuM (Avg.) 14.80

Mucking operation Ongoing practice

Back to main

Operation Cost of Shovel as per field study data (in Rs./cuM)(Excluding Electric Power and administration cost)

HEAD S-38 S-394 S-342 S-483

Material handled in cuM/hr. (From May - June 08)

Initial Section 138.03 147.86 171.81 N.A.

Middle Section 157.57 191.05 204.18 N.A.

Last section 114.17 124.46 140.89 N.A.

Average material handled (cuM/Hr)

136.59 154.46 172.29 N.A. 

Cost/Hr 2057.66 2810.31 1918.24 N.A

Cost per cuM in Rs. 15.06 18.19 11.13 N.A.

Mucking cost in Rs./cuM (Avg.) 14.80

Cost comparison in study and demonstration exercise

Cost Analysis

HeadCost during

benchmarking operation in Rs./cuM

Cost during demonstrati

on operation in

Rs./cuM

Savings in cost in Rs./cuM

Percentage savings

Drilling cost in Rs./cuM 13.23 10.27 2.96 22.39

Blasting cost in Rs./cuM 19.59 13.80 5.79 29.54

Drilling and blasting cost in Rs/cuM 32.82 24.07 8.75 26.65

Mucking cost in Rs./cuM 23.46 14.8 8.66 36.91

Total mining cost in Rs./cuM 56.28 38.87 17.41 30.93

Overall savings in mining

cost* in Rs./cuM*Mining cost includes drilling,Blasting & mucking cost. 17.41 (30.93%)