CONTENTS

16 Seaborne thermal coal offers fall in

December
20 Seaborne coking coal offers fell in December 6 | COVER STORY
21 India’s November coal imports down 12% Slow but steady: Coal in 2025
y-o-y
22 CIL’s coal production up 2% in November A deep look at how the energy sector will
24 SCCL’s coal production up 4% in November perform in the coming year.
25 Ministry offers 1 coking coal block in 11th
round
27 FutureCoal’s roadmap for sustainable coal
value chain 30 | FEATURE
32 Deocha Pachami commissioning in 3-4 India has 14 TW of geothermal
years
33 CoalMin awards LOA to 3 coal gasification
potential: IEA
project Gujarat, eastern coast of AP, Central Son-
35 Power capacity addition up manifold in Narmada Fault Zone are key areas.
October
37 India’s sponge iron production up 7% in

40 | EXPERT SPEAK
November
38 Coal handled by major ports down 2% till
November
39 Indian Railways’ coal handling up 6% till
“CSR a part of our Business Goal”
November Dr. Vinay Ranjan, Director (Personnel &
42 Expert Speak: Vipin Malhotra, Senior Industrial Relations), Coal India Ltd.
General Manager (Sales and Marketing),
Green Power International Pvt Ltd
46 Event: Bauma ConExpo showcases major
equipment makers
48 US coal production estimated at 509 MMst 44 | EVENT
in 2024: EIA Cement sector focuses on sustainability
49 Peabody ships first coal from Centurion,
Takeaways from 7th Cementing India
eyes regular output from March
51 Australia approves 4 coal mine expansion conference organised by ICC.
projects
53 Coal India’s big push to renewable energy
57 TCS partners with Landis+Gyr for next-
gen energy efficiency 55 | CORPORATE
59 Ghatampur thermal plant Unit 1 starts NTPC eyes 10.5 mtpa from Banhardih in
generation 5 years
60 Corporate update
62 Government update Eyes 50 mtpa coal production from own
64 Port Data mines.

4 Coal Insights, December 2024

COVER STORY

SLOW BUT STEADY:

Coal in 2025
Sumit Maitra

6 Coal Insights, December 2024

COVER STORY

T “Looking ahead, coal

he growing weakness in the October, driven by strong demand from
economies of India and China, the power sectors of China and India and
the two most important entities in
the global fossil fuel energy market, would
shrinking supplies in both China and the US,
coal prices were down in November.
prices are projected to
significantly weigh on coal, its consumption
and trade. Here we look at the factors at
“Looking ahead, coal prices are projected
to fall in 2025 and 2026 but remain above
fall in 2025 and 2026
play and key opinions guiding us on how the
sector will look like in the coming year.
pre-pandemic levels. This anticipated decline
is due to robust supply, as reductions in global
but remain above pre-
Global coal demand to grow by 1
consumption weigh on the market. Risks to
the price outlook remain broadly balanced,”
pandemic levels. This
percent in 2024: IEA World Bank has said.
Major Indonesian coal exporter PT Bumi
anticipated decline is
Indicating significant slowdown in global
thermal coal sector, International Energy Resources Tbk saw realised coal prices in the due to robust supply.”
Agency (IEA) sees global coal demand 9 months of 2024 falling sharply to $73.7/
growing by just 1 percent in 2024 to 8.77 ton from $85.2/t in the corresponding period
of 2023 in line with the downward trend of
World Bank
billion tons (bt).
“This represents a considerable slowdown global coal prices.
“The downward trend in global coal 2024. However, looking ahead, International
in growth from previous years. Global coal
Energy Agency (IEA) sees global trade
consumption rose by 7.7 percent in 2021 prices has impacted the decrease in FOB
volumes shrinking, with thermal coal seeing
as it rebounded from the Covid shock the prices,” Bumi Resources said this month.
the biggest decline.
year before, by 4.7 percent in 2022 and by China’s thermal and coking coal prices
“Our models show trade volumes
2.4 percent in 2023. Although industrial are on a downhill journey due to weak
shrinking, with trade in thermal coal seeing
consumption also increased over that period, demand and high de-stocking pressures.
the biggest decline,” IEA said.
the power sector has been the main driver “The limited liquidity at ports, along
According to IEA’s latest report, Asia
of coal demand growth, with electricity with a major miner’s reduction in third-party
coal prices, led to a price decrease among remains the at the centre of international
generation from coal set to reach an all-time
high of 10 700 terawatt-hours (TWh) in other miners… Market sentiment remained coal trade, with all of the largest importing
2024,” IEA said in its latest report on the bearish, with miners cutting prices in response countries in the region, including China,
global coal markets. to tepid demand and low purchase prices India, Japan, Korea and Viet Nam, while
from end-users. A leading miner’s continued the largest exporters include Indonesia and
Energy prices to stay weak in 2025 reduction in its buy prices of third-party coal Australia.
Commodity prices eased in 2024 with has compounded the negative outlook for the In most advanced economies, coal
Bloomberg commodity index down 2.1 near-term market,” Fenwei/Sxcoal said in an demand has already peaked and is expected
percent in 2024, mainly driven by declines analysis. to keep decreasing and depends on the
in agricultural and energy subindex while enactment of strong policies, such as those
precious metals subindex has increased Global coal trade volumes set to implemented in the European Union, and
sharply. shrink the availability of alternative power sources,
Following a 3 percent increase in the International trade of coal by volume is set including cheap natural gas in the United
third quarter of 2024 and a further rise in to reach a record 1.55 billion tons (bt) in States and Canada.
“Meanwhile, demand for coal is still
BUMI’s Average Selling Prices (ASP) increasing in some emerging economies
where electricity demand is rising sharply
along with economic and population growth,
such as India, Indonesia and Vietnam. In
emerging economies, growth is mainly
driven by coal demand from the power sector,
although industrial use is also going up,” IEA
said.
Addition of thermal power capacity in
countries like India is offsetting retirement
of coal-fired plants in Europe, Alliance

Coal Insights, December 2024 7

FEATURE

Ministry offers 1 coking coal block in

11th round

Additional Secretary and Nominated Authority, Ministry of Coal, Rupinder Brar, Vikram Dev Dutt, Secretary, Ministry of Coal, Minister of Coal and Mines,
G. Kishan Reddy launching the 11th round of commercial coal mine auction.

Coal Insights Bureau infrastructure etc. have been revised to of 100 mt of coal gasification by 2030. By
improve the attractiveness of the coal mines. encouraging cleaner and more efficient

O
n December 5, Coal Minister G. Addressing the event, Coal and Mines technologies, the scheme aims to reduce
Kishan Reddy launched the 11th Minister G Kishan Reddy, emphasized that reliance on imported natural gas, lower
round of commercial coal mine coal remains the cornerstone of India’s energy carbon emissions, and pave the way for
auctions with a total of 27 coal blocks on landscape, asserting that power generation is sustainable energy development.
offer. unimaginable without it. Vikram Dev Dutt, Coal Secretary
These 27 coal blocks are spread Reddy reaffirmed the Government’s highlighted the crucial role of policy reforms
across Jharkhand, Odisha, Chhattisgarh, dedication to boost domestic coal production in creating an ecosystem that encourages
Maharashtra, Madhya Pradesh and to meet the nation’s energy demand. The innovation, reduces production costs,
Arunachal Pradesh and include both fully Minister further reiterated the Government’s and meets the growing energy demands
explored and partially explored mines commitment to uplift local communities, of the nation without compromising on
thermal blocks and 1 coking coal mine. emphasizing that coal auctions and mining environmental standards.
The Ministry of Coal has taken a series activities go beyond economic growth. Dutt stressed that these reforms are
of reforms to ensure that the coal sector They also aim to empower communities designed to not only enhance coal production
grows at a rapid pace and is able to meet the by creating employment opportunities, but also align the sector with India’s broader
country’s energy needs. improving infrastructure, and enhancing goal of achieving energy self-reliance and
For 11th round also, mines falling under education and healthcare in coal mining sustainable development.
protected areas, wildlife sanctuaries, critical regions. He further emphasised on inter-
habitats, having forest cover greater than 40 He also highlighted the Government of ministerial collaboration, particularly
percent, heavily built-up area etc. have been India’s Financial Incentive Scheme with an with the Ministry of Environment,
excluded. outlay of `8,500 crore to promote Coal and Ministry of Power, and Ministry of Steel.
The block boundaries of some of the Lignite Gasification projects. He underscored how such cooperation
coal mines where there was presence of This initiative, he noted, is a pivotal step facilitates the harmonization of policies,
dense habitation, high green cover or critical toward achieving India’s ambitious target streamlines processes, and addresses sectoral

Coal Insights, December 2024 25

FEATURE

Global geothermal potential

India has 14 TW of The potential for geothermal is now truly

global, IEA said in the report.
The full technical potential of next-

geothermal potential: IEA generation geothermal systems to generate

electricity is second only to solar PV among
renewable technologies and sufficient to
meet global electricity demand 140-times
Coal Insights Bureau sustainable, carbon-free, continuous, over. This is a key finding of a first-of-a-kind
uninterrupted and environment-friendly. analysis of geothermal potential conducted

W
hile potential for conventional It is the only renewable energy available for this report in
geothermal is highly limited, at 24x7 to the mankind not requiring storage The availability of geothermal would
a depth of 5 km India’s potential and unaffected by day-night or seasonality be particularly valuable to bolster electricity
grows considerably to around 14 TerraWatt variance. security in regions looking to transition away
(TW), International Energy Agency (IEA) “India is the third-largest market for from coal-fired power, such as China, India
has said in its latest report ‘The Future of next-generation geothermal power capacity and Southeast Asia, or to complement large
Geothermal Energy’. by 2050. The dispatchability of next- amounts of solar PV and wind in regions
States like Gujarat, the eastern coast generation geothermal would pair well with such as Europe and the United States.
of Andhra Pradesh and the central Son
the production profile of solar PV in India, collaboration with Project Inner Space.
Narmada Fault Zone are among the key
which would otherwise reach 35 percent of Geothermal energy potential increases
areas for geothermal power generation
total electricity generation by 2035 and 50 as developers access higher heat resources
development, IEA said.
percent by 2050,” IEA said in the report. at greater depths. New drilling technologies
“We find that global market potential for
Deploying next-generation geothermal exploring resources at depths beyond 3 km
next-generation geothermal is concentrated
technologies would help India meet growing open potential for geothermal in nearly
among just a few large markets, with China,
electricity demand while avoiding the need all countries in the world. Using thermal
the United States and India accounting for
for additional coal-fired power plants, and resources at depths below 8km can deliver
almost three-quarters,” the report says.
it may be a more affordable option that almost 600 TW of geothermal capacity with
Geothermal projects harness the intense
displaces some CSP, hydro and bioenergy. an operating lifespan of 25 years.
heat in molten rocks under the earth’s crust
Geothermal can also provide a continuous
for electricity generation and domestic If next-generation geothermal expands
source of low- and medium-temperature
heating. quickly enough in India, it could also
heat for use in buildings, industry and
Geothermal energy is an energy source eliminate the need for some solar PV capacity
district heating. Global geothermal potential
that is stored in the form of heat beneath and batteries, creating a more diverse clean
from sedimentary aquifers at depths up to 3
the earth’s surface, which is clean, renewable, energy mix, IEA said.
km and temperatures greater than 90°C is
estimated around 320 TW.
Geothermal power capacity by country/region and by scenario, This is consistent with the requirements
2023, 2030 and 2050 of existing fossil fuel-fired district heating
networks, which could be decarbonised by
switching to geothermal heat. For lower
temperature requirements, the potential for
geothermal increases about tenfold.
With continued technology improvements
and reductions in project costs, geothermal
could meet up to 15 percent of global
electricity demand growth to 2050. This
would mean the cost-effective deployment
of as much as 800 GW of geothermal power
capacity worldwide, producing almost 6
000 terawatt-hours per year, equivalent to
the current electricity demand today of the
United States and India combined.

30 Coal Insights, December 2024

FEATURE

informed that WBPDCL has not taken any

Deocha Pachami Bridge Linkage against the coal block.

“It was further stated that the data related
to Geological Reserves for the coal block has

commissioning in 3-4 years been submitted by WBPDCL, however,

the Mining Plan is not finalized till now.
It was also informed that PRC of Deocha
Pachami coal block will be available only
when the Mining Plan is finalized. A senior
official of WBPDCL stated that it will take
another 3-4 years for the coal production to
commence from the coal block.
“Director (Marketing), Coal India Ltd
stated that since Deocha Pachami coal block
will take another 3-4 years to operationalise,
hence, WBPDCL may opt for Bridge
Linkage, which may be provided for the
corresponding capacity of the coal block.
WBPDCL may also opt to delink its
SGTPP Stage-III (660 MW) from Deocha
Pachami and request for the full coal quantity
requirement of the power plant under Para B
(i) of SHAKTI Policy.
NITI Aayog also suggested that
Coal Insights Bureau Corporation Ltd (WBPDCL) for grant of
WBPDCL may explore the possibility of
balance coal requirement of Sagardighi TPS

D
eocha Pachami coal block in applying for Bridge linkage as well.
(SGTPP) Stage-III (Unit 5) (1 x 660 MW)
West Bengal is facing delays in as coal linkage under Para B (i) of SHAKTI
development and would need Gourangdih to start ops in March
Policy. SGTPP Stage-III (Unit- 5) is a under
another 3-4 for coal production to start, construction brownfield expansion project Followng the delay in commissioning of
according to information furnished by the linked with Deocha Pachami coal block and Deocha Pachami, West Bengal government
state to the Coal Ministry. The Mining Plan the commissioning of the power plant is is planning to start mining of Gourangdih
is not yet ready, the state has informed. scheduled in March, 2025,” the minutes said. ABC Coal Mine in West Burdwan by March
As the coal was earmarked for Sagardihi As per the ACQ norms, the coal 2025. The mine has a potential for extractable
power plant Stage-III (660 MW) of requirement of SGTPP Stage-III is 3.385 coal deposits of approximately 62 mt.
WBPDCL, Coal India has now agreed mtpa of G13 grade. Ministry of Power has Forest clearance and environmental
to provide bridge linkages for the plant. mentioned that the tentative PRC of 2 mtpa clearance are under process.
Alternatively, WBPDCL may request full of Deocha Pachami coal block shall not be “The state has the approval of the mining
coal quantity requirement of the power plant sufficient to fulfill the requirement of the unit. plan for Gourangdih ABC Coal Mine,”
under Para B (i) of SHAKTI Policy. “Accordingly, Ministry of Power has said state Labour and Law minister Moloy
“Ministry of Power has informed requested for grant of balance coal quantity Ghatak earlier said at the Global Mining
that Deocha Pachami coal block is under requirement of 1.385 mtpa for SGTPP Summit 2024.
development and a conceptual report on Stage-III (Unit 5) as coal linkage under Para The coal mine was allocated to West
coal block has been prepared by CMPDIL B (i) of SIIAKTI Policy,” the minutes said. Bengal Mineral Development & Trading
which has indicated the tentative Peak Rated Representative of WBPDCL said during Corporation Ltd (WBMDTCL) in
Capacity of the coal block as 2 million tons the meeting that considering the delay in September 2016 for commercial mining.
per annum (mtpa),” minutes of the meeting operationalisation of Deocha Pachami, it is As per the terms of the allotment
of Long Term Coal Linkage Committee, also exploring the possibility of meeting the agreement at least 25 percent of the coal
mentioned. requirement of the end use plants of Deocha produce is to be sold to MSME sector in
“Ministry of Power vide O.M dated Pachami coal block including SGTPP Stage- Bengal. The remaining coal may be offered
19.11.2024 has requested to consider the III from its other captive coal mines, whose to buyers through a transparent e-auction
request of West Bengal Power Development PRC may have to be re-worked. lt was also process.

32 Coal Insights, December 2024

 EVENT

Cement sector focuses on sustainability

Coal Insights Bureau size of the industry compared to global peers coal or pet coke, whereas the largest portion
and our per capita consumption.

A
is released by limestone decomposition.
chieving sustainable manufacturing According to current data, India's per Limestone, the most important feedstock for
practices and low emissions in capita cement consumption is around 250 cement production, consists of about 35 to 44
the Indian cement industry is kilograms, half of 500 kilograms per person, percent CO2, depending on its quality.
a significant challenge considering the indicating a large potential and requirement
Reducing fossil fuel consumption in the
relatively low consumption of cement in for growth in the Indian cement market.
India compared to China and the global cement sector is a challenge as significant
And it pales in comparison with China,
average meaning that the sector needs to heat is required to be generated in the
where per capita cement consumption is
invest in addressing environmental concerns manufacturing process, according to Yaswant
around 1800 kg, the highest per capita
even as it invests in significant capacities. Mishra, President (Corporate) and Chief
cement consumption in the world.
Cement worldwide is responsible for Financial Officer, Mangalam Cement Ltd.
“This gives us an idea of how rapidly
anywhere between 7 percent to 8 percent of our cement consumption is likely to grow Portland cement clinker is produced
global Green House Gas (GHG) emissions. specially in the background of the rapid in a kiln from calcareous and siliceous raw
“This means that this sector will always economic development,” Bhatia said. materials and the primary cement clinker
be under scrutiny. The cement industry will “We are looking forward to the next 10 minerals are formed in a solid state at high
be under the radar and will constantly be to 20 years of sustained investment in cement temperature of 1450°C, he said.
expected to move towards sustainability,” production. So, therefore, I think it becomes To reduce emission of greenhouse
Vivek Bhatia, Managing Director & CEO, even more imperative for us to think about gases, TKIL, erstwhile thyssenkrupp India,
TKIL Industries said while addressing the how we will be building this additional has been developing and implementing
7th Cementing India conference organised capacity,” he said. techlogies like the oxyfuel.
by the Indian Chamber of Commerce. During cement manufacturing, large The basic principle behind oxyfuel is the
The challenge of meeting sustainability quantities of carbon dioxide (CO2) are emitted. capturing of CO2 from the exhaust gas of
goals for the Indian cement sector needs to Only one third of these CO2 emissions result cement manufacturing plants and hindering
be seen from the perspective of the relative from the combustion of fossil fuels, such as it to get into the atmosphere. Easier said

44 Coal Insights, December 2024

CORPORATE

Mine details

NTPC eyes 10.5 mtpa from As a brief of the entire coal block, the
Banhardih Coal Mining Block has an
approved mining plan capacity of 12 mtpa

Banhardih in 5 years with Peak Rated Capacity (PRC) scheduled

to be achieved in 7th year.
Total block area of the project spans 1818
Ha, with 1467 Ha designated for mining
Coal Insights Bureau ♦ Package also includes development of operations as per the approved plan. Of this,
infrastructure facilities like equipment 1049 Ha has been explored, while 418 Ha

N
TPC Ltd is eyeing to mine 10.5 workshop, pumping arrangements, remains unexplored, in which exploration is
million tons per annum (mtpa) haul road maintenance, construction under progress by CMPDIL.
in the fifth year of operations of An additional 139.87 Ha is set aside for
of internal roads / culvets etc., and
the Banhardih opencast coal mine with a infrastructure purposes, including railway
discharge of coal to delivery point of (-)
cumulative target of 34.5 mt having average siding, township, project office, and R&R
100 mm size within the block boundary
grade of G11 in 5 years. colony. The geological reserves of the project
and compliance to all statutory rules,
To feed its Patratu Vidyut Utpadan amount to 1536.55 mt, with 401.56 mt of
Nigam Ltd (PVUNL), NTPC sees regulations, and laws as applicable
reserves considered for mining up to a depth
production from the mine at District Latehar, ♦ Mine operator shall also carryout of 300 meters.
Jharkhand growing from 1 million tons (mt) diversion and strengthening of Nallahs The extractable reserves, according to
in the first year to 10.5 mtpa in 5 years as per and construct road for village road the approved mining plan, total 250.50 tons.
the scope of work disclosed in a tender issued diversion on fixed amount basis. In terms of excavation, the project involves
attracting response from mine developers for
a short period of 5 years.
♦ Short-term contract is focused on
exploiting 34.50 mt by removing 267.89
M.cum of overburden at an average
stripping ratio 7.76 cum/t.
♦ Package is aimed at expediting the
operationalization of the coal block
through a short-term contact for 5
operating years with a development stage
of 360 days
♦ Contracted quantity of 34.50 mt shall be
ramped up in subsequent years i.e Y1: 1
mtpa, Y2: 6.5 mtpa, Y3: 7.5 mtpa, Y4: 9
mtpa, Y5: 10.5 mtpa
♦ Mining shall be carried out as per the
approved mining plan & mine closure
plan approved by Ministry of Coal, the
area identified for this contact shall be as
per the 5th year stage plan, for the area
which is explored
♦ Average grade of coal is G11 (4001 – 4300
Kcal/kg) with a range from G8 to G14
♦ Mine development shall involve land
acquisition and R&R related activities
such as interaction with PAPs, state
government and other agencies, physical
possession of land for mining activities,
for which a facilitation charges shall be
paid to the mine operator

Coal Insights, December 2024 55

66 Coal Insights, December 2024