Types of Contracts Used in the Coal Mining Sector during Its Construction: Analytical Essay

Introduction

The research area is based on how construction contracts and procurement techniques are used in project of Coal India Ltd. CIL is a Maharatna and Indian state-owned company of coal mining and refinery. The main headquarter of Coal India Ltd is in Kolkata, West Bengal. 82% of coal is produced in India by CIL. It is in the 8th position in terms of market value among the Indian companies. CIL has many subsidiaries where CIL produces most of its coals. There are a total of 7 subsidiaries of CIL. The names of coal subsidiaries companies are: -

1. Eastern Coal Fields limited.
2. Bharat Coal Coking limited.
3. Central Coalfields Limited.
4. Western coalfields limited.
5. Southeastern coalfields limited.
6. Northern coalfield limited.
7. Mahanadi coalfield limited.

The aim of this project is to find out the types of contracts used in the coal mining sector during its construction. To study Different procurement contracts or routes such as fixed-price contracts, time and materials. In this report, we will also see how parties should consider more detail in work than the complex methods, and how to choose a certain type of contract in the industry. Next, we will take some live cases of the coal mining sector and analyze its data, for example, Chitra Coal mine(A & B). We will discuss Solid waste management, disposal practice, pollution control measures in a conversation of natural resources, Air pollution control, noise and vibration control measures, etc. all will be discussed thoroughly along with the details. We will also see what type of contract has been adopted in this coalfield and analyses which will be the best for both parties, i.e. contractor and Employer.

According to Planning management book of knowledge, the procurement process involves planning, executing, monitor, & controlling different phases of the project. The relationship between clients, consultants, contractors, etc is also highlighted. Policies for procurement in coal mining are for micro and small enterprises, special provisions for small enterprise, price quotation are also stated in the manual of the Coal India. Source: - (Coal India, 2010)

Fig 1: - Image of CIL (Coal, 2012)

Aim: -

To suggest the best contract for mining construction, procurement routes, techniques, how to purchase materials, types of equipment used in mining construction, etc.

Project Objectives: -

• To analyze procurement practices and routes for coal mining.
• To analyze the best contract for coal mining construction.
• To analyze and prevention of fire in coal mines.
• Equipment used in coal mining, their functions, exports, and equipment cost in the coal mining sector.

Literature Review

· What are the types of contracts used in mining construction and choosing the best contract?

This research paper discusses Construction Contracts and procurement management in Coal Mining in India. The main authority of coal mining in India is governed by Coal India Ltd. There are many subsidiary companies under Coal India Ltd., they are Eastern coalfields, Mahanadi Coalfields, Central Coalfields, Western coalfields, Bharat Coking Coal, etc. Firstly, we will see how the construction contract and law take place in mining and assessing the relationship between the contractor and Employer. We will see how the contract is choosed among 3 main contracts, such as -lump-sum Contract, Cost-plus Contract, Target-Plus Contract, etc. To study the various factors such as preferred risk allocation by the parties, ability to adapt the contract to scope changes, knowledge about each contract type by the contracting parties, improvement in project delivery by contract type, and aim to improve cooperation among parties. Factors such as financial costs, dispute costs of contract types and need for financial information by the stakeholders of the parties are also analyzed. To study Different procurement contracts or routes such as fixed-price contracts, cost-reimbursable, time and materials. In this report, we will also see how parties should consider more detail in work than the complex methods, and how to choose a certain type of contract in the industry. Source: - (Calderón, n.d.)

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· Any example of a live mining project with details?

One of the live cases analyzed in this journal called the Chitra Coal mining project, which is situated in Eastern Coalfields of India, was discovered in 1975, and after that, the main authority nationalized it and named Chitra A and Chitra B coal fields. From these coal fields, the production of coal ranges from 1.2 to 2.50 MTY and coal reserve of 60.5 MTY in each Chitra coal quarries. The estimated life of the project is 26 years. Later in project Environmental qualities, Air quality in coal mines, water quality, noise level, etc. will be discussed later. Solid waste management, disposal practice, pollution control measures in a conversation of natural resources, Air pollution control, noise and vibration control measures, etc. all will be discussed thoroughly along with the details. We will also see what type of contract has been adopted in this coalfield and analyses which will be the best for both parties, i.e. contractor and Employer. Source: - (Mining, n.d.)

· What are the types of mining construction equipment are used?

Next, we will see what kind of equipment is used in Mining Construction. In this research paper, it mainly discusses about the function of the equipment in excavating, ground preparation, haulage for material, dumping/laying in a specified manner, etc. Exports for mining and construction equipment costs in different countries will also be analyzed along with details and data. Various equipment used in coal mining areas such as,” Dumpers, dozers, hydraulic excavatars, rope shovels, draglines, drills, wheel loaders, continuous miners, etc” Source: - (Mining, n.d.)

· What is procurement practice in coal mining projects?

Public procurement Management or material Management as documented and handled by Coal India Limited will be discussed in the project in detail. First, various policies documented in the manual are as follows,” Procurement for micro and small enterprises, special provisions for small and micro enterprises, reporting of targets, quotation in a tender od pricing, review comitte, reduction in transaction cost, monitoring of goals, etc”. Source: - (procurement, n.d.)

· What are the techniques used for purchasing materials and items in coal mining construction?

Next is the Purchase Manual of Coal India Limited. The main objective of the manual are,” gaining brief knowlwdge of organisation, policies for purchasing, adverstisemnt of tenders, provisions for safety of items, registration of suppliers for safety of items, rating of vendors, enquiry of tenders, follow procedure, Follow-up and monitor progress, payment to the suppliers, various laws and regulations for purchase, etc.” Source: - (CIL, n.d.)

· What are the techniques used for fire prevention of coal mining construction?

Recent Developments and practices to control fire in underground coal mines, as discussed in the research article will be discussed in the project. Coal mine fires cause a serious threat to the property and human lives. The outbreak of fire may be dealt with advanced fire suppression techniques like Infusion of inert gases or liquid nitrogen, Dynamic Balancing of pressure, Reversal of underground mine ventilation, Application of nitrogen foam, Water mist, etc. The paper addresses all those control techniques in detail. The success stories of controlling fires in coal mines of different parts of the world are reported. Results of a recently completed Science & Technology (S&T) project about various fire suppression techniques like Infusion of liquid nitrogen, Injection of high-pressure high stability nitrogen foam, and Water mist on open fire are also discussed.

Keywords: - Nitrogen Foam, coal mine fire, infusion of inert gas, Inertisation of goaf and water mist, underground mine ventilation, etc. Source: - (UK, n.d.)

References

1. Calderón, D. S., n.d. types of contract. [Online] Available at: diva-portal.org/smash/get/diva2:1118726/FULLTEXT02
2. CIL, P., n.d. Purchase Manual. [Online] Available at: https://www.coalindia.in/DesktopModules/DocumentList/documents/purchase.pdf
3. Coal India, w., 2010. Wikipedia. [Online] Available at: https://en.wikipedia.org/wiki/Coal_India [Accessed 7 02 2020].
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7. UK, G. o., n.d. Health and safety executive. [Online] Available at: https://www.hse.gov.uk/mining/feguidance.pdf
8. Calderón, D. S., n.d. types of contract. [Online] Available at: diva-portal.org/smash/get/diva2:1118726/FULLTEXT02
9. CIL, P., n.d. Purchase Manual. [Online] Available at: https://www.coalindia.in/DesktopModules/DocumentList/documents/purchase.pdf
10. Coal, 2012. Dumping CIL. [Online] Available at: https://www.google.com/search?q=coal+mining+projects&sxsrf=ACYBGNTnCjAYECLgQjRfstyDDNW3T9lV6w:1580746049234&source=lnms&tbm=isch&sa=X&ved=2ahUKEwj2o_r14bXnAhXR6nMBHUgGDi0Q_AUoAnoECAsQBA&biw=1366&bih=576#imgrc=QrmBYIb-4jKmFM
11. Mining, n.d. Indian mining and equipments. [Online] Available at: https://miningandblasting.files.wordpress.com/2010/03/indian-mining-construction-equipment-industry.pdf
12. procurement, C., n.d. Procurement Manual. [Online] Available at: https://www.coalindia.in/DesktopModules/DocumentList/documents/Public_Procurement_policy_Micro_Small_Enter_Order_2012_13022014.pdf
13. UK, G. o., n.d. Health and safety executive. [Online] Available at: https://www.hse.gov.uk/mining/feguidance.pdf