https://www.engineeringnews.co.za
Coal|Explosives|Logistics|Mining|OPENCAST|Power|Underground|Equipment
Coal|Explosives|Logistics|Mining|OPENCAST|Power|Underground|Equipment
coal|explosives|logistics|mining|opencast|power|underground|equipment

CIL supply linkage rationalisation saves power stations costs

11th December 2019

By: Ajoy K Das

Creamer Media Correspondent

     

Font size: - +

KOLKATA (miningweekly.com) – At least 58 thermal power plants in India have been able to save an estimated $531-million since Coal India Limited (CIL) started rationalising its coal supply linkages, the mining company has claimed.

The rationalisation exercise, which started in 2015, entails replacing coal sourced from distant mines to mines closer to the thermal power plant, aiming to lower transportation costs.

Bringing coal sources closer to thermal power stations also ensures faster turnaround of railway rakes and makes a higher number of rakes available.

Initially, CIL identified 19 thermal power plants for rationalisation of coal supply linkages, but the success of lowering transportation costs led to the company extending the exercise to 58 plants and officials said that more power stations would be brought under the purview of the rationalisation exercise following a closer study of potential logistics cost savings.

Significantly, even as CIL is focusing on lowering logistical costs for thermal power plants, a parliamentary committee in a report submitted this week has flagged the miner’s high operating costs, which add to the final cost of the dry fuel and end-user costs.

The parliamentary committee in its report noted that despite several measures taken by the miner, it had not been able to bring down per unit cost of production from underground mines or opencast mines.

Observing that the high operating costs of CIL were a “serious consideration”, the committee said that, during 2018/19, the lowest operating cost of production from an opencast mine was Rs455/t ($6/t) and the highest cost was pegged at Rs1 889/t ($27/t). In the case of underground mines, CIL’s operating costs ranged from as high as Rs4 879/t ($69/t) to Rs27 015/t ($380/t).

To lower operating costs, CIL is converting unsafe and unviable underground mines into opencast mines, deploying heavy earth-moving equipment in opencast mines and conducting e-reverse auction for procurement of explosives. The parliamentary committee, however, noted that these measures had not been successful in bringing down operating costs.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 24 May 2024
Magazine round up | 24 May 2024
24th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.335 0.39s - 160pq - 2rq
Subscribe Now