NOTE: Some content may not display correctly, including tables and figures. See PDF for full details.

Νο.   55011-01-2009-CPAM

Governιnent of IndiaMinistry of Coal

Shastή Bhavan,

New Delhi,   the   7th January, 2013

Το

 The Chairman, Coal India Limited, Kolkatta

1. The Chairman-cum-Managing Director, CMPDIL, Ranchi
   1. The Chairman-cum-Managing Director, NLC, Neyveli.
   2. The Chairman-cum-Managing Director, SCCL, Α.Ρ.

SUBJECT: GUIDELINES FOR PREPARATION OF ΜΙΝΕ CLOSURE PLAN -

REG.

 Sir,

Ι am directed to refer to this Ministry letter of even ηο.  dated  27th August, 2009 regarding Guidelines for preparation of Mine Closure Plan and modified Guidelines vide letter of even number dated  gth  September 2009,11th January, 2012, and 25th April, 2012 and to state that  Para  6  of  the letter/ guidelines                 and  Para         6   and  Para                           8   of   the   Annexure         of   theguidelines   has   been   further   aιnended.           It   has  been    decided   by  the Government that aJ1 coal (including lignite) mining operations in India shall henceforth be governed as per these ιnodified guidelines listed in the Annexure to this letter, including the preparation of Mine Closure Plans (MCPs), which shall be incorporated in the Project Report/ Mining Plan henceforth, for new and existing mines. The Mine Closure Plans (progressive and final) shall be approved along with the approval  of  Mining Plans/ Feasibility Report / Project Report as  applicable.

2 (i) All coal mine owners shall ado_pt a Mine Closure Plan  for  each of  their mines comprising progressive closure plan and  final  closure  plan  duly approved  by  the  competent   authority.

2  (ii) All coal mine owners, who are   operating   coal   mines   without   the approval  of  any  Mine  Closure  Plan  are  required  to  obtain  a  Mine   Closure    Plan

Page 1 of 13

approved as per these guidelines within a peήod of  one  year  from  the day when the original guidelines came into effect [i.e. 27th August, 2009].However, a number of mine owners are yet to comply with the same. Inview of this all the mine owners are required to obtain the approval of Mine Closure Plan within a period of one year from the date of publishing of these guidelines failing which Government will take actionas appropriate.

2 (iii) All coal mine owners, who have already been accorded approval of Mining Plans/ Project Reports without the Mine Closure Plans as per these guidelines, are also required to prepare and obtain the approval of Mine Closure Plan as per these guidelines within a peήod of one year from the day when the original guidelines came into effect [i.e. 27th August,  2009].

2 (iv) The competent  authority  for approval  of the  Mine  Closure  Plan  shall be the Standing Committee constituted by the Ministry of Coal for the purpose of approval of Mining Plans. Ιη case of  projects/ mines  of  Government Companies, the competent authority to approve the MCP  will  be  the concerned Board of the Company wherever the power is so delegated for approval of the Mining Plan.

2 (ν) Four copies of MCPs of all mines covered at Sub-Para iv) above shall be submitted to Ministry of Coal within one month of the approval within the timeframe indicated at (ii) and (iiij referred  above. The  Companies  shall carry out all changes in the Closure Plan including the amount of money to be deposited for  the  proposed  Escrow  Account  as directed  by  Ministry  of Coal.

1. The  Mine  Closure  Plans  will  have  two  components  viz.  ij  Progressive  or Concurrent  Mine  Closure  Plan  and  ii)  Final  Mine  Closure  Plan.  Progressive Mine   Closure   Plan   would   include  vaήous   land   use   activities   to  be   done continuously   and   sequentially   duήng   the   entire   period    of   the    mining operations,  whereas  the  Final  Mine  Closure  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   level   by   the   Coal   Controller   as   per   the   certification   by National    Environmental    Engineering   Research    lnstitute    (NEERI)    or Central  Mine   Planning   and  Design  Institute   Limited  (CMPDIL)   or  any

Page 2 of 13

other such institute as may be notified by the Government for these purposes to create a self sustained ecosystem. Provided that such restoration shall be completed within the period  specified  in Mine Closure Plan failing which the amount in the Escrow account shall be forfeited. The details for preparation of Final Mine Closure  Plan  are given in Annexure.

1. Various project specific activities as per paragraphs 3, 4 and 6 of the guidelines are enclosed at Annexure for preparation of Mine Closure Plan shall be adhered to. The total cost estimate is to be assessed based on the activities as mentioned in the paragraphs 3, 4 and 6 of the said  guidelines. The money to be provided per hectare of total Project Area for the purpose is to be deposited evety year after commencement of any activity on the land for the mine after opening a Fixed Deposit Escrow Account prior to obtaining mine opening permission from Coal Controller. Mining company / owners including all Public Sector Undertakings shall deposit the yearly amount in a Scheduled Bank in accordance with paragraphs 7 of the guidelines Annexed herewith. If the Mine owners fail to  deposit the  annual amount  required to be deposited, the Government can withdraw the mining permission.

1. The details of the fιnal Mine Closure Plan along with the details of the updated cost estimates for various mine closure activities and the Escrow Account already set up shall be submitted to the Ministty  of Coal for  approval at least five years before the intended final closure of the mine.

1. Implementation of the approved Mine Closure Plan shall be sole responsibility of the mine owner. Mίning ίs to be carried out in α phasedmanner   ίnίtίαtίng    afforestatίon/reclamation                               work ίn the mined out area of the ftrst phase while commencing the mining in the second phase i.e. continuation of mining activities f rom one phase to other indicating the sequence of operatίons depending on the geo-mining conditions of the mine. Up to 80% of the total deposited amount including interest accrued in the ESCROW account may be released after every five years ίn Zίne with the periodίc examtnation of the Closure Plan as per Clause  3.1  of  the  Annexure  of  the Guidelίnes.  The amount released should be   equal   to  expenditure  incurred on  the Progressive                               mine closure  in past  five   years  or  80%  whichever  is   less.    The balance amount shal l be released to mί ne ownerfleaseholder at  the  end  of the final Mί ne Closure on compliance of al l provtsions of Closure Plan. Thiscomplί ance  report   should   be  duly  sig ned  by the  lessee  and certify  that said closure of mine  complied  all  statutory  rules,  regulations,  orders made by  the  Central  or  State  Government,  statutory  organί satί ons, court etc. and  certίfied  by the Coal  Controller.

1. The Government may at any time before the closure of mine require certain activities to be included in the mine closure plans, which  it  may consider necessary for the safety and conservation of environment or ιn compliance with any modification / amendment in the relevant legislation.

1. Statutory obligations: The legal obligations, if any which the lessee ιs bound to implement like special conditions imposed while execution of lease deed, approval of mining plan, conditions imposed by the Ministry of Environment and Forests, State of Central Pollution Control Board or by any other organisation describing the  nature  of  conditions  and  compliance position thereof should be indicated here  (the  copies of  relevan t documents may be attached as Annexure) .

1. It is to be clearly understood that  the  funds  so  generated  are  towards the security to cover the cost of closure in case the mine owner fails  to complete the relevant closure activities. The prime responsibility  of  mine closure shall always lie with the mine owner, and in case these funds are found to be insufficient to cover the cost of final mine closure including theareas covered in Para 7 above. The mine owner  shall undertake  to provide the additional fund equivalent to the gap in funding before five years of Mine Closure failing which it may be recovered by such other  methods as the competent authority may deem fit in this regard.

1. After the closure of the mine, the reclaimed leasehold area and any structure thereon, which is not to be utilized by the mine owner, shall be surrendered to the  State Govt. conc.erned  following a laid down procedure  as in vogue at that point of time.

1. These Guidelines supersede the previous orders and are without any prejudice to any other relevant rules and regulations, such as those issued by

Page 4 of 13

the State Governments, Ministry of Environment  &  Forests,  Ministry  of Labour  and Employment etc.

Encl:  As above.

Υ-our-s -fait-hfu-lly

V S

Under  Secretary to the Government of  India

Copy to:   / Tech. Director, NIC for putting on the Website of MOC.     (iij          CA-I/ CA-II Section for necessary action.

 Page 5 of 13

GUIDELINES FOR PREPARATION OFFINAL  ΜΙΝΕ CLOSURE PLAN

1. Introduction

The name of the mine owner, the location  and  the extent of lease  area, the type of lease area (forest, non-forest etc) , the present land use pattern, the method of mining and coal-processing operations, should be given ίη  the mines  closure plan.

1.1      Reasons for closure: The reasons for closure of  mining operations such as exhaustion of mineral, lack of demand, uneconomic operations, natural calamity, directives from statutory organization or court etc. should be specified.

1.2       Statutory obligations: The legal obligations, if any, which the mine owner is bound to comply with such as  special  conditions  imposed while execution of lease deed, approval  of  mining plan,  directives  issued by the Ministry of Coal, conditions imposed by the Ministry of Environment and Forests, State Central Pollution Control Board or by any other organization descήbing the nature of conditions and compliance position thereof should be clearly indicated in the Plan (the copies of relevant documents to be attached as Annexures) .

1.3 Closure plan preparation: The decision on mine closure should have the approval of the Board of Directors of the mining company or of any other equivalent competent authority. Copy of such approval should be incorporated  in the final mine  closure plan.

2.1         Mine Description

2.2          Geology: Bήefiy describe the topography and general geology indicating rock types available, including toxic elements, if  any,  at the mine site.

2.3          Reserves : Indicate the coal/ lignite reserves available category wise (proved, indicated and inferred) in the leasehold area estimated in the

Page 6 of 13

last mining plan/ mining scheme approved along with the balance  coal/ lignite reserves at the time of proposed mine closure, including its quality (for final mine closure plan only). Final Mine Closure Plan shoώd also indicatethe estimated Extractable coal reserves and coal actually mined out.

2.4          Mining Method: Descήbe ίη brief the mining method followed to

win the coal/ lignite, mining machinery  deployed, production  level etc.

3.          Closure Plan

3.1       Mined-Out Land: Describe the proposals/ measures to be implemented for reclarnation  (both physical  and biological)  and rehabilitation of mined-out land including the manner ίη which the actual site of the pit will be restored for post mining land use. The proposals should be supported with relevant plans and sections depicting the method of land restoration / reclarnation / rehabilitation and tiιne frame.

Mining is to be carried out ίη a phased manner initiating afforestation work in the mined out area of the first phase while commencing the mining ίη the second phase i.e. continuation of mining activities from one phase to other indicating the sequence of operations depending οη the geo­ mining conditions of the mine. Progressive mine  closure  plan  shall be prepared for a peήod of every five years from the beginning of the mining operations. These plans would be examined periodically in every five years period and to be subjected to third party monitoring by the agencies approved by the Central Government like Central Mine P!anning and Design Institute Ltd. (CMPDIL), National Environmental Engineering  Research  Institute (NEERI) , Indian School of Mines (ISM) etc. for the purpose.

3.2       Water Quality Management: Descήbe in detail the existing surface and ground water bodies available ίη the lease hold areas and the measures to be taken for protection of the same including control of erosion, sedimentation, siltation, water treatment, diversion of water courses, if any, measures for protection of contamination of ground water from leaching etc. Quantity and quality of surface water bodies should also be indicated and coπective measures proposed to meet the water quality conforming to the permissible limits should also be descήbed. Report of hydrological study carried out ίη the area may also be submitted. The water balance chart

Page 7 of 13

should be given. If there is potential of Acid Mine Drainage, the treatment rnethod  should be given.

3.3      Air Quality Management: Descήbe the existing ωr quality parameters and the coπective rneasures to be taken for prevention of air pollution.

3.4       Waste Management: Descήbe the type, quality and quantity of overburden, coal/lignite rejects  etc.  generated  and  their  disposal  practice.  If no utilization of waste rnateήal is proposed, the manner in which the waste mateήal will be stabilized should be descήbed. The protective rneasures to be taken for prevention of siltation, erosion and dust  generation  frorn  these waste mateήals should also be descήbed. If toxic and hazardous elements are present in the waste rnaterial, the protective measures to be taken for prevention of their dispersal in the air, environrnent, leaching in the surface and ground water etc. should be described. As far as possible, reclamation and afforestation shall proceed concuπently with the rnine activity. The quantity of waste rnaterial required to be re-handled or back-filled in the final voids should be specified. All efforts should be made and  reflected  (in the Project Report/ Mining plan) to keep land requirernent bare rninimum for external over burden dumping to minimise land degradation. This may necessitate increase of durnp height to the maximurn extent keeping in view the safety requirement with special emphasis on stability analysis. Mter back-filling of quarry voids, the left out void may be allowed to be filled with water. This will help to recharge and stabilize the water table in the neighbourhood and the local populace will benefit from it.

3.5       Top Soil Management: The topsoil available at the site and its utilization should be described.

3.6       Coal beneficiation and Manageιnent of Coal Rejects: The coal beneficiation facllities including process description may  be  detalled. The proposal regarding future Maintenance or Dismantling of structures of washeries may be given.

3.6 (i) The steps to be taken for proper functioning  of  the  slurry  pond, handling of coal rejects and its utilization, periodic de-silting, aπangement for water  re-circulation,  measures  to  prevent  water  pollution  from  slurry ponds,

Page 8 of 13

arrangement for surplus water overflow etc. shall be indicated in tbe MineClosure Plan.  Rejects dumps sbould be properly benched and graded on

cessation of biologically.

wasbery / mining    operations   and  area   to  be    reclaimed Siιnllarly  tbe  slurry  ponds  sbould  be  disιnantled    and

dewatered     and  area    reclaimed   at  tbe    end   of  the    wasbery/ miningoperations.

3.7         Infrastructure: The existing infrastructural facilities available such as roads, aeήal ropeways, conveyer belts, railways, power lines, buildings & structures, water treatment plant, water supply sources ίη the area etc. and their future utilization should be evaluated  οη case to  case basis. If retained, the measures to be taken for their physical stability and maintenance should be described. lf decommissioning proposed, dismantling and disposal of building structures, support facilities and other infrastructure such as electric transmission line, water line, gas  pipeline,  water works, sewer line, telephone cables, underground  tanks,  transportation infrastructure such as roads, rails, bridges, culverts  etc.,  electήcal equipments and infrastructures such as electήc cables, transformers should be descήbed in connection with restoήng land for further use.

3.8         Disposal of Mining Macbinery: The decommissioning of mining machineries and their possible post mining utilization, if any, should be described.

3.9       Safety and Security: Descήbe the  safety measures implemented to prevent access to surface openings for underground workings, excavations etc. (such as fencing carήed out by barbed wires) and arrangements proposed duήng the mine abandonment plan and up to the site being opened  for general public should be described.

3.10    Economic Repercussions of closure of mine

Manpower retrenchment, compensation to be given, socio-economic repercussions and remedial measures consequent to the  closure  of  mines should be descήbed, specifically stating the  following:

 Page 9 of 13

ι.           Number  of  local  residents  employed  ίη  the  mine,  status  of   the continuation of family occupation and their scope of joiningfamlly occupation once again after closure of mine.

ii.  Compensation  given  or to  be  given  to the  employees concerning their  sustenance  and  their  family members.

ίίί.      Satellite occupations connected to the mining industry - number of persons engaged therein - continuance of such  business after mine closure.

ιν. Continued engagement of employees ίη the rehabilitated status of mining lease area and any other remnant activities.

ν.          Envisaged  expectation  of  the  society  οη closure  of mine.

4.          Time Scheduling for abandonιnent

The details of time schedule of all abandonment operations as proposed ιη paragraph 3 above should be descήbed. The manpower  and  other resources required for completion of the proposed job should be descήbed. The schedule of such operations should also be supplemented by bar chart.

5.          Abandonιnent Cost

5.1       Cost is to be estimated (at the time of preparation  of  Project Report/ Mining Plan) based οη the activities such as barbed wire fencing all around the working  area, dismantling of  structures/ demolition  and cleaning of sites, rehabilitation of mining machinery, plantation, physical/ biological reclamation, landscaping, biological reclamation  of  left out  ΟΒ dump, filling up of decoaled νοίd, post environmental monitoring for 3 years, supervision charges for 3 years, power cost, protective and rehabilitation measures including their maintenance and monitoήng, miscellaneous charges etc.

5.2       It has been estimated that typically closure cost for an open cast mine will come around rupees six lakhs per hectare of the total project area and ίt would be rupees one lakh per hectare for underground project area at current pήce leνel (August 2009] and these rates will stand modified based οη

Page 10 of 13

the whole sale price index as notified by Government of India from time  to tome.

!η  case   of   the   Mine   Closure   Plans   which   have   already   been approved  earlier  οη  the  basis  of  lease  hold  area,  the  project  proponents  are required  to re-calculate  the  closure  cost οη the  basis  of  total  project  area and submit   a   certificate   stating   that   amount   ίη   Escrow   account   would   be deposited as per  the recalculated  amount.

5.3       Annual closure cost is to be  computed  considering  the  total project area at the above mentioned rates and dividing the same by the entire life of the mine ίη years for new projects and balance life of mine ίη years for operating/ existing mines. Αη amount equal to the annual cost ίs to be deposited each year throughout the mine life compounded @5% annually. For example if the annual cost works out to Rs 100, then ίη the first year the amount to be deposited will be Rs 100, in the second year lOOx(l +5%) Λ 1, in the third year lOOx( l+5%) Λ2 and so οη.

6.          Financial Assurance

All coal mine owners shall strictly adhere to the  following:

ί)  For  financial  assurance  the  mining   company   shall   open  an Escrow Account with any Scheduled Bank, with the Coal Controller Organisation (οη behalf of the Central Government) as exclusive beneficiary before the permission is given for opening the mine by Coal Controller.The mining company shall cause payments to be deposited ίη such Escrow Account at the rate computed as indicated at 5.3 above. The owner of the company may select the Scheduled Bank where the Escrow Account is to be opened and inform the same to Coal Controller, Kolkata. The Escrow Account has to be opened as per the aforesaid guidelines of the Mine Closure Plan. The amount being deposited will be reviewed with such periodicity as deemed fit by the Coal Controller.

ίi) Mί nί ng ίs to be carried out ίn α phased manner initiatingafforestationfreclamatί on work in the mined out area of the first phase whtle commencί ng the mίnί ng tn the second phase t.e. contί nuation ofmtntng  αctίvίtίes Jrom  one  phase   to  other  ί ndicatί ng  the  sequence  of

Page 1 1 of 13

operations depending on the geo-minί ng conditions of the mine. Up to 80% of the total deposited amount including interest accrued in the ESCROW account may be released ajter every fί ve years in line wίth the periodί c examination of the Closure Plan as per Clause 3.1 of the Annexure of the Guίdelines.      The amount  released  should  be equal to expendίture ίncurred on the Progressive mί ne closure in past fί ve years or 80% whichever ts less.     The balance amount at the end of the fί  nal Mine     Closure    shal l    be    released     to    mί ne         ownerfleaseholder        on complί ance of al l provί sί ons of Closure Plan duly signed by the lessee to the effect that sαίd closure of mί ne complied all statutory rules, regulatί ons, orders made by the Central or State Govemment, statutory organisatί ons, court etc. and duly certifί ed by the Coal Control ler.

iii) Αη  agreement,  outlining  detailed  terms  and  conditions  of operating the Escrow Account, shall be executed amongst the mining company, the Coal Controller  and the  concerned  bank  in order to  give effect to this. The agreement shall be executed before the grant of permission by the Coal Controller to open the mine.

7.          Responsibility of the Mine owners

It is the responsibility of the Mine owners to ensure that the protective measures contained in the mine closure plan including reclamation and rehabilitation works have been caπied out in accordance with the approved mine closure plan and final mine closure plan.

The owner shall submit to the Coal Controller a yearly report before [st July of every year setting forth the extent  of  protective  and  rehabilitative works carήed out as envisaged in the approved mine  closure  plans (Progressive and Final Closure Plans).

8.          Provision for Mine Closure

8.1       The mine owner shall be required to obtain a mine closure certificate from Coal Controller  to the effect that the protective,  reclamation and rehabilitation works in accordance with the  approved  mine  closure plan /final mine closure plan have been carried out by the mine owner for surrendeήng the reclaimed land to the State Government concerned.

Page 12 of 13