COAL INDIA LIMITED

THE BIGGEST ENERGY PROVIDER IN INDIA

N C JHA Director (T), CIL

Coal Industry in India

Total resources : 267 BT Coal Reserves in India
China Pakistan Nepal India Myanmar Bhutan

Proved : 106 BT Indicated/inferred: 161 BT

88% of production from opencast mines; 12% from underground mines Coal present in 14 out of 28 states Indian coal contain generally high ash, (4500 GCV) & low sulphur No longer a regulated industry Types of Coal Produced in India
Coal Production / Imports (MT)

Coalfields
Sri Lanka

Coal Production and Imports

600 506.9 500 411.6 400 300 323.5 200 2004-05 2005-06 CIL 2006-07 2007-08 Others Imports 2008-09 343.4 29.0 59.1 473.9 445.6 38.6 63.6 43.1 69.9 77.6 49.8 89.3 552.0 59.0

Coking 6.8%

Non Coking 93.2%

360.9

379.5

403.7

The Growth of Indian Coal Industry 493 mts

2008-09 Systematic Mining

80.93mts
1956

1973 Nationalisation of non-Coking coal mines 1972 Nationalisation of coking coal mines

1956 1947 1946

Setting up of NCDC a Govt. UT Takeover of SCCL mines by Govt. Advent of Independence

Coal Production 30 mts. Coal Production 29 mts.

6.12mts
1774

1942

1920 Coal Production 18 mts. 1900 Coal Production 6.12 mts.

Start of Coal Mining in India

Company Overview

Vast Scale and Operations

Largest coal company in the world Produced over 403 MT in FYE Mar 2009 82% market share in India

4 3 1 8

5
2 7 6 9 10

Over 400,000 employees Reserve base ~ 70bn tonnes Meets 45% of Indias primary commercial energy requirement Net Revenues of over US$8 bn Estimated PBT before pay revision ~US$2.3bn, PBT as reported ~US$1.2bn for FYE March 2009 100% owned by the Government of India (GoI) Awarded Mini-Ratna in Mar 2007, Nav-Ratna in Oct 2008 & SCOPE Excellence Award in 2009

CIL Subsidiaries
1 2 3 4 5

Eastern Coalfields Ltd

Bharat Coking Coal Ltd

Central Coalfields Ltd Northern Coalfields Ltd Western Coalfields Ltd South Eastern Coalfields Ltd

6
7 8

Mahanadi Coalfields Ltd

Central Mine Planning & Design Institute North Eastern Coalfields (A Unit Under CIL HQ)

Exchange rate of 48.39 INR/USD

Presence Through the Value Chain

EXPLORATION

Carried out in two stages: Regional and Detailed In 2008-09, 0.27 Mm of drilling has been achieved Action initiated to enhance drilling capacity to 1Mm annually

COAL MINING

473 mines owned: 279 UG ,163 OC , 31 Mixed Production in 2008-09 was 359MT from OC and 44MT from UG SCCL and TISCO are the other main players in coal mining ~200 blocks allotted to private operators for captive mining

BENEFICIATION

Operates 17 washeries - 12 coking (22.18 MTY) and 5 noncoking (17.22 MTY) Decision taken to supply beneficiated coal to all non Pit Head consumers 20 new washeries (18 under BOM-105.10 MTY, 2 under Turn Key-6 MTY) being taken up for construction as Public-Private-Partnership. 6

Strong Track Record of Growth

RAW COAL PRODUCTION

400
360.91 279.65 250.62 204.16 379.46 403.73

Million Tonnes

350 300 250 200 150 100 50 0

74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09

78.99

UNDERGROUND PRODUCTION
60

58.22 56.63 55.19

Million Tonnes

Million Tonnes

50

49.22

43.32

43.54

43.96

40 74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09

MANPOWER
700000 650000
598649 671550 627463

600000 550000 500000 450000 400000

1.4.75 1.4.92 1.4.97 1.4.02 1.4.06 1.4.07 1.4.09
439343 426077 412350 519922

PRODUCTIVITY
4 3.54 3 2.45 2 1.40 1 0.58 0
74-75 91-92 96-97 '01-02 '06-07 '07-08 '08-09

4.09 3.79

Tonnes

1.86

PROJECTION & PLANNING

COAL PRODUCTION TREND/ PROGRAMME (WG)

Mill T

ACTUAL COMPANY IX PLAN (01-02) 279.65 (2.22) 30.81 17.33 327.79 (2.53) X PLAN (06-07) 360.91 (5.23) 37.71 32.21 430.83 (5.62)

PROGRAMME XI PLAN (11-12) 520.50 (7.60) 40.80 119.70 680.00 (9.57) XII PLAN (16-17) 664.00 (5.00) 45.00 346.00 1055.00 (9.18)

CIL (CAGR) S.C.C.LTD OTHERS TOTAL (CAGR) CILs GROWTH IN PRODUCTION

X OVER IX PLAN

XI OVER X PLAN

81 Mt (29%)

160 Mt (44%)
(HIGHEST SO FAR)

Sustainable Strategic Initiatives

Enhancing Availability of Resources

EXPLORATION

Drilling targets increased 4x - Aiming to convert inferred and indicated category to proved category Detailed drilling and projectisation of coal blocks allocated to captive block owners. Systematic exploration to arrive at reliable estimate of coal reserves Application of IT to create geo database

NEW PROJECTS

134 new projects for ultimate capacity of 309 MTy identified - 34 UG, 100 OC Setting up 20 washeries with a capacity of 111.1 MTy

FOREIGN ACQUISITIONS

Acquiring coal resources abroad through equity stake in working or green field projects - Acquired 2 virgin coal blocks in Mozambique Global EOI floated for selection of strategic partners for overseas operations 13

Ensuring Accessibility of Resources

OC MINING
Computer-aided mine planning for deeper OC mines Deploying high capacity equipment to achieve economy OITDS for efficient fleet management State-of-the-Art Mass Production Technology

UG MINING
Tapping large reserves below 300m depth 7 UG Greenfield properties being developed 18 abandoned mines (1600 MT) identified for development

HIGHWALL MINING
Mining of good quality thin seams Recovery of good quality coal in OC mines beyond economic stripping ratio.

CBM/UCG
Recovery and commercial utilization of CBM from deep seated seams Underground coal gasification of deep seated seams

14

ENVIRONMENTAL POLICY OF COAL INDIA

COAL INDIA CARES FOR ENVIRONMENT TAKING SUITABLE MEASURES IN ALL ASPECTS OF THE ENVIRONMENT AS FOLLOWS:
Air Pollution Control

Water Management & Water Pollution Control

Noise Control Control of Vibration, Noise & Fly Rock generation due to blasting

Mine Reclamation & Rehabilitation

Green Belt Development Land Use Planning Socio-economic Environment & Rehabilitation of mined out areas for Post Mining Land Use

WITH DUE EMPHASIS ON SUSTAINABLE DEVELOPMENT

Reclamation & Plantation

Extensive tree plantation programme is undertaken every year by the subsidiaries of Coal India.

Avenue plantation, plantation on the OB dumps, plantation around mines, residential colonies, available land is undertaken in existing as well as new projects. Coal India planted over 70 millions of plants since 1993-94 covering an estimated land area of around 28300 hectares. Coal India is committed to continue plantation which is a part of annual activities in each subsidiary.

CIL in Satellite Surveillance:

All 171 OC projects have been identified.

49 projects excavating more than 5 Mm3 (Coal+OB) per annum will be monitored once a year. 122 projects excavating less than 5 Mm3 (Coal+OB) per annum will be monitored once in 3 years. Out od 49, Surveillance for 35 projects excavating more than 5 Mm3 per annum has been completed under first 100 Days Programme of Ministry of Coal, Government of India. Remaining 14 projects are also being covered this year.

Salient Findings

Study reveals that in all OC projects, plantation area, green coverage and backfilled area have increased.

In Singrauli Coalfield, NCL, area of plantation has increased from 57.25 sq. km (2000) to 69.30 sq. km (2005) In Wardha Valley Coalfield, WCL, area of plantation has increased from 11.48 sq. km (2005) to 14.05 sq. km (2008)

In Korba Coalfield, SECL, in Gevra & Dipka OCPs combined, plantation area increased from 2.99 sq. km (2003) to 7.75 sq. km (2008)
In North Karanpura Coalfield, CCL, in Ashoka & Piparwar OCPs combined, plantation has increased from 5.06 sq. km (2006) to 5.64 sq. km (2008)

LAND USE/ COVER MAP OF NIGAHI OCP BASED ON SATELLITE DATA OF 2008

YEAR 2007

YEAR 2008

ISO: 14001 certification:

31 Projects have been accredited for ISO: 14001 certification. Company wise break up: CCL : 3 MCL : 5 NCL : 8 SECL : 3 WCL : 12 Mining Projects : Central Workshop : Coal Preparation plants : 29 1 1

Coal India is going for IPO:

Performance of CIL is continuously improving quantitatively and qualitatively. CIL had been conferred the Navratna status in October 2008.

CIL conferred with 'CEO with HR Orientation' award by Council of World HRD
Congress during Global HR Excellence Awards Ceremony 2010. CIL won the SCOPE Gold Trophy 2007-08 (Institutional category) for Excellence and Outstanding Contribution to Public Sector Management. CIL adopted several cost effective measures like manpower restructuring, extensive use of computers, introduction of ERP-SAP, advance training to employees to increase the learning ratio, increasing the adaptability with high tech environment etc. CIL is committed to follow the International Financial Reporting Standards (IFRS).

CIL is looking for foreign collaboration to bring in proven technologies and

advance management skill.

Initial Public Offer As a part of liberalization process, CIL is going for proposed disinvestments through Initial Public Offer (IPO). IPO proposed in August 2010. Public offering in Book Building: 10% Employees Reservation: 1-2% (Provisional) Future Land Losers: 2% (Provisional) In deregulated environment, market is the best judge for performance and market discounts all past and future events, CIL is confident to get a high value quote in the secondary market.

CILs venture for coal import

As per NCDP, Coal India is required to meet the requirement of coal of the country, if required, even by import. Demand from works out to 721 Mte in 2011-12 against projected production of 487 Mte leaving a gap of 235 Mte. This gap is to further increase at 305 Mte in 2012-13. Coal India has taken initiatives for Strategic Alliance with overseas

producers for augmenting availability of coal.

Coal India has also been taking initiatives for acquiring overseas properties. Coal India has been mandated by the Planning Commission to import 8 Mte of coal for utility sector, out of total import target of 35 Mt in the next fiscal.

CIL is contemplating following process for importing coal:

CIL will be required to bring 65% of the import in East Coast Port and
the remaining 35% in Western Coast. Major initiatives have also been taken for upgrading infrastructures at major Government ports at Vizag in east and Kandla in west coasts. CIL is contemplating to be associated with this infrastructure building exercise. Dedicated Freight Corridor (DFC) of Indian Railway system, likely to be operative from the middle of 12th Plan would also enhance hinterland logistics capability.