Mining Own Coal is Demand of Time

In the wake of chronic fuel supply crisis, the much delayed exploitation of substantial volume of superior quality (high heating value, low ash, low sulfur) coal has now become an essential religious duty of Bangladesh. For different reasons, ranging from poor planning, highhanded bureaucratic inefficiency of Petrobangla and EMRD exploration of petroleum resources both onshore and offshore, Bangladesh could not match with the exponential growth of demand. There exists huge deficit in primary fuel supply. The proven reserve of natural gas is fast depleting. All producing gas fields from its present production zones have gone past production plateau. The 12.55 Tcf remaining proven plus probable (P1+P2) gas reserve as of December 31, 2018 may not last beyond 2030. But given the water drive nature of the wells, major depletion may trigger much earlier. As per own admission of Petrobangla and EMRD, in a publication on the occasion of Power Week 2018, the production capacity of the 19 out of 27 gas fields was 2,750 MMCFD. The documents mentioned about 3,996 MMCFD coincident peak demand. The production has depleted to 2,600 MMCFD now. The 1,400 MMCFD of deficit created low pressure over the entire gas grid. Even the 500 MMCFD of RLNG injection did very little impact on the gas grid, beyond comforting gas supply situation in KGDCL franchise in Chittagong. Experts believe that even additional 500 MMCFD RLNG expected to be available by end 2019 may not bring much relief. Moreover, FSRUs may not be operational on 365 days given the turbulent nature of the Bangladesh offshore. The government has decided not to pursue with FSRU options any more. The land based LNG terminal would take at least 5 years if started in 2019. Between now and 2024, own gas reserve would drastically deplete creating huge gas deficit. New gas from offshore may also take 8-10 years to reach shore. The government adopted imported coal based power generation route. Even the first limited capacity coal port at Matarbari may not come into operation before 2023. Coal for Payra and Rampal power plants would need to be transported by make shift transshipment from mother vessels anchored at deep sea in the territorial waters of the neighboring countries or carrying coals in smaller Panamax vessels from source countries (very expensive option).

In such situation observers believe that exploiting own 3,565 million tonnes of discovered coal reserve applying well practiced proven technology must be considered priority one option now. Even 50% exploitation would provide 40 Tcf equivalent good quality coal, good enough for 20,000 MW power generation for 50 years. It may be mentioned here that the depleted gas reserve is only 12.55 Tcf now. There are potential environmental and social impacts associated with coal mining. The mining would impact agriculture, sub-surface and surface water and would require relocation and resettlement of mine affected community. But there are off the shelf proven technologies well practiced world wide even in neighboring West Bengal, Bihar, Jharkhand and Orissa. In many countries like Germany, Poland, Australia 75-80% of the mined area is restored to its original state or before after mining and rest of the area is converted to sweet water lakes. Agriculture and other occupations are restored. Mine water is managed for irrigation and community use. Very authentic documents of agricultural land restoration, water management, relocation and rehabilitation of mine affected community prepared by internationally accredited mining consultant are available with Bangladesh government. Mining experts, energy analysts and business leaders have repeatedly pleaded for starting mining own coal. The government in PSMP 2010 approved fuel mix with local coal contributing up to 29% of the 40,000 MW power generation capacity targeted for 2030.

Observers believe that if coal exploration is not started soon, Bangladesh pursuing prescribed fuel mix of PSMP 2016 would become over 90% dependent on imported fuel. Given the volatility of global oil market, Bangladesh cannot absorb fuel price shock. Moreover, global and regional geo politics may create disruption to supply chain any time. Bangladesh can neither absorb price shock nor survive supply chain interruptions.

Coal Reserve Scenario

How Government Mismanaged Fuel Exploration?

Years of neglect in own fuel (coal and gas) exploration and development and some vested interest group of bureaucrats, destroying professional development of power and energy sector, has made Petrobangla almost a non- functional entity. From 2000-2018, only a little over 2 Tcf new gas reserve has been added but over the same time over 9 Tcf from the proven recoverable reserve has been used up. Even the present government, over the past two consecutive terms, failed to take political decision of mining own coal or expediting exploration for onshore and offshore petroleum resources. The government appointed high powered committee suggested applying open pit mining method on the shallow northern flank of Barapukuria mine. The committee also suggested auditing SOD of Phulbari mine by accredited consultants and taking decision based on their recommendation. The committee also suggested mining from Khalaspir and Dighipara mines. But the vested quarter inside the government discouraged policymakers in taking positive decision about mining own coal. This has led to PSMP 2016, prescribing for 35% (34% imported coal) contribution of coal of the planned 60,000 MW capacity targeted for 2041. If approved, it will effectively mean that the government would take the suicidal decision of keeping the black gold buried forever.

It may be mentioned here that extraction of coal bed methane (CBM) or underground coal gasification are not possible from Bangladesh coalmine. UCG is a failed concept even in Australia. Link Energy CEO was sent to Jail for underground water contamination. From a study of consultant in the recent past, it appeared that CBM is not economic option from Jamalganj coalfield.

The government policymakers appear to be misguided by fuel import beneficiary syndicates and shallow knowledge left leaning political activists. Mining coal is not going to dislocate too many people neither it is going to cause permanent damage to agricultural land. Some 70-80% of the mine-affected land would be rehabilitated back to its original. Only the last section would be converted to sweet water lake. Mining is not going to trigger desertification. Rather the locality would get treated fresh water supply and additional water for irrigation. On top of all, the affected community will be rehabilitated and actions would be taken to regenerate their income. Credible study reports are available in the Scheme of Development (SOD) of AEC submitted for mining at Phulbari.

There is no logic waiting for unnecessary coal mining policy for commencing mining. Mines & Minerals Act and Environment Policy have required coverage for mining. In the backdrop of above, the government arrived at the present situation of fuel mix.

Present Fuel Mix:  (February 2019) As Per Installed Capacity

It becomes apparent that the government’s failure in exploiting coal and exploring gas are among reasons for retracting power generation below 12,000 MW.  Petrobangla cannot supply gas or coal to power plants as per demand. The failure of Petrobangla has forced the government continuing with very expensive liquid fuel (furnace oil and diesel) based rental and quick rental power plants. Petrobangla took long 8 years for importing 500 MMCFD of LNG and another 500 MMCFD is expected by end 2019, provided two gas transmission pipelines Maheshkhali – Anowara 90 KM 42 inches Outer Diameter loop line and Faujdarhat – Feni – Bakhrabad 36 inches OD 200 KM pipeline are completed before monsoon – which is very unlikely.

Present Mining and Future Prospect

Of the five discovered coal fields, currently mining is only being done at Barpukuria. The mine is operated by Barapukuria Coal Minining Company Limited (BCML), a subsidiary of state-owned Petrobangla.

China National Machinery Import & Export Corporation (CMC), a Chinese government company, developed the mine under suppliers credit of China. The first contract was signed for mine development in February 1994. The poorly conceived underground coal mining method encountered all possible impacts and hazards that can be conceived in a coal mine. The mine construction was completed in August 2005. Mine water flooding, gas formation, roof caving and other impacts management required 11 years completing the mine to operation stage. The first 72 months mine operation contract between BCML and Chinese consortium Xuzhou Coal Mining Corporation (XMC) and CMC was signed in August 2005 operation contract with BCML in 2005. The target was producing 4.75 million tonnes of coal applying Box and Pillar underground mining method. But till end of the contract, 3.50 million tonnes of coal could be extracted for various issues and impacts encountered during mining. A second 72 months contract was signed with XMC-CMC JV in August 2011 for a target production of 5.5 million tonnes. The JV achieved the target within the tenure of the contract. The third contract of 42 months duration became effective in August 2017 is targeted for 3.5 million tonnes of coal. It will expire in August 2021.

The Geological Survey of Bangladesh (GSB) discovered Barapukuria coal field in 1985. A detailed feasibility study was carried out by M/S Wardell Armstrong (U.K based Organization) & China National Machinery Import & Export Corporation (CMC) in Barapukuria coal field. Some 33 boreholes were drilled, delimited the area of reserve, determined the structure and the coal seam characteristics were identified in terms of thickness, quality etc. at that time. According to the necessity during development and production period of the mine, additional 5 boreholes were drilled by XMC/CMC consortium in mining area during 2013-2014.Asia Energy Corporation (AEC) Bangladesh pty. ltd drilled 4 boreholes in 2005 at the southern side of Barapukuria lease area and confirmed the extension of the coal seam towards south. Institute of Water Modelling (IWM), Bangladesh drilled 8 exploratory boreholes in 2013-2014 at the Northern side of the coal field under a study work relating to groundwater modelling in that area.

The surface geology over the entire coalfield area was covered by Barind Clay (Madhupur Clay). Ground water bearing strata (Dupi-Tila) is uncomfortably overlays the Gondwana (Permian) coal bearing sediments. These are folded into an asymmetric syncline or basin, whose axis strikes approximately North-South. A major fault forms the eastern limit of the deposit, beyond which, Archaean Basement rock (Pre-Cambrian) are present immediately below the Dupi-Tila. Besides this, around 38 faults have been identified in Barapukuria by seismic survey. The Western, Northern and Southern limits of the deposit are formed with the subcrop of seam VI beneath the Dupi-Tila.

The Gondwana sequence comprises predominantly sandstone, with subordinate siltstones and mudstones, which contains up to six coal seams in the centre of the basin. The lowest of these, seam VI is the principle target seam of Barapukuria and has an average thickness of 36m. It consists of a weakly-caking sub-bituminous to bituminous coal with average sulphur content of about 0.53% making it an ideal fuel for power generation. In- seam inclusions of dirt (non-coal material) are variable, but mainly restricted to the uppermost and lowermost sections of the seam. An in-situ geological reserve of about 390 million MT of coal was calculated for the entire basin.

Currently mining is being done using Long Wall Top Caving (LWTC) underground method from the 6^th seam of central area. Till 2021, mining can continue in this face at an annual capacity of 0.8 million tonnes. After 2024-25, extension of present underground mining in the central region may increase production up to 0.96 million tonnes/ year. Even this cannot meet the demand of 1.2 million tonnes required for 524 MW total capacity of the three units of Barapukuria mine mouth power plants.

A study is being commissioned for exploring the possibility of open pit mining from the shallow northern and southern flanks of Barapuluria mine. If feasible, it will be possible extract 2+2 = 4 million tonnes of coal per year from Barapukuria alone. That production would not only meet the entire requirement of the 524 MW capacity existing power generation unit, it will also assist in operating another 600 MW capacity new power plant in the region.

A document submitted by BCML to Petrobangla evidences that if mining can be done from Dighipara and Khalaspir applying appropriate mining method, 3+2 =5 million tonnes coal can be extracted per year. This would be enough to feed 3,600 MW capacity coal based power generation. If mining can be done from Barapukuria, Dighipara and Khalaspir, about 18% of the total coal required for 50 million tonnes coal required for coal fired power generation targeted for 2041 can be met. We have not considered mining from Phulbari and Jamalganj here. The government should audit the feasibility report of Asia Energy Corporation (AEC) submitted with their Scheme of Development (SOD) by a third party specialist mining consultant and, based on their recommendation, go for mining at Phulbari. There are reports on Agricultural Land Recovery and Restoration, Mine Water Management, Mine Community Relocation and Rehabilitation, Social and Environmental Impacts Management.

Imported Coal Based Power Generation

The government is going ahead with ambitious plan for imported coal based power generation in Matarbari, Maheshkhali, Bashkhali, Payra , Patuakhali and Rampal. For import of coal, Bangladesh needs setting up coal port and coal transhipment terminal. But for shallow nature of Bangladesh coastal region, only South Matarbari is found suitable for a coal port. With JICA financial support, major works for a 14.6 KM long 220-meter wide and 18.5-meter deep canal linking Matarbari with deep water is progressing satisfactorily. Land development works for 2X1200 MW coal fired power plant of CPGCL is also proceeding. Japanese company Sumitomo will construct that power plant. The government has plan for constructing a 28 million tonnes annual capacity Coal Transhipment Terminal (CTT) at Matarbari.  Coal from CTT would be supplied by conveyor belts to all planned large imported coal based power plants at Maheshkhali, and adjoin areas. There is no commitment of fund yet for the CTT. The link canal, coal port are expected to be available for use in 2023 and 1,200 MW power plant may come into commercial operation by 2023. In the uncertain situation of CTT, the prospect of any new imported coal fired power plant in the region appears to be in the womb of uncertainty.

The first unit of NWPGCL 2X660 = 1,320 MW power plant at Payra is due to come into operation at the later part of 2019. Coal will be imported by smaller carriers directly from Indonesia for docking at plant jetty at Ramnabad. The additional transportation cost will increase cost of generation and would reflect on cost plus power tariff. The possibility of transhipment from mother vessels anchored at Bangladesh deep water has been negated for the turbulent nature of the Bay of Bengal in Bangladesh water for 4-5 months. There are even plans for setting up facilities in the territorial water of India for transhipment of coal. No fixed plan is known so far how coal will be transported to Rampal power plant of Bangladesh India Friendship Power Company (BIFPC).

Mining Own Coal Must Get Top Priority Now

In view of all above, it has now become almost a religious duty to start mining own coal and use it for mine mouth power generation. The government should pay heed to suggestions of mining experts, energy analysts and experienced professionals. NGOs and environmentalists all over the world always oppose coal mining. NGOs finance activists in every country. Still coal dominates fuel mix in most countries. Great innovations have now been made in mining technology. Smart mining, application of artificial intelligence have drastically reduced impacts of mining.

Why should the government let energy crisis grow beyond manageable proposition for fuel supply crisis entertaining evil suggestions of vested groups? Why billion dollars worth of black gold in mineable depth should remain buried? Bangladesh can never achieve affordable, reliable, sustainable and modern energy supply for its citizen unless it starts mining own coal and expedite exploration of petroleum resources. Mining own coal would also give government option for setting up coal fired power plants anywhere negotiable by Railway. Bangladesh is expanding Railway communication to Payra, Mongla and Matarbari. In coal countries, coal is transported to 400-500 miles by rail from mines.

It’s an urge upon the Prime Minister of Bangladesh to let coal mining start without delay and advise the EMRD intensify exploration for petroleum resources at offshore and onshore without any delay.

Khondkar Abdus Saleque;

NRB Energy Professional