Pakri Barwadih Coal Mining Project

Location:
Jharkhand State

Value:
$5.5 billion

Client:
NTPC Ltd (National Thermal Power Corporation Limited)

Capabilities:
Mine Operations, Mobile Plant, Design & Construction, Resources

Contract Type:
Joint Venture

Start Date:
November 2010

Duration:
November 2010 to November 2034

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Thiess operates in India through its wholly owned subsidiary, Thiess India Private Limited, and a 90% SPV named Thiess Minecs India Private Limited with an Indian partner, Minecs Finvest holding the other 10%. 30 November, 2010 was a red letter day for Thiess Minecs when the $11 billion NTPC Limited, India’s largest power generator (with more than 36,000 MW of installed generation capacity) awarded a 27 year contract to Thiess Minecs to develop and operate the green-field Pakri Barwadih coal mine in the state of Jharkhand. This landmark contract is one of the largest ever awarded by NTPC and is the largest contract ever awarded to Thiess.

Pakri Barwadih will be the first of six mines NTPC intends to develop to provide low cost coal for its power stations, replacing expensive imported coal.

Thiess Minecs will undertake mining operations (planning, infill drilling, overburden removal, coal mining & crushing), as well operation & maintenance of cross-country system and railway siding under construction by NTPC.

Thiess Minecs will also develop mine infrastructure (15 Mt coal handling plant, workshops, warehouses, office, training centre, staff & workers residential colony, utilities, etc).

Thiess Minecs has completed the mine planning and design as per industry best practices, and has submitted a Revised Mine Plan and Project Layout to the Government of India, after obtaining NTPC’s approval. This revised plan envisages ramp up of the coal production to the ultimate capacity of 15 Mtpa in three years (compared to the 12 years envisaged in the currently approved mine plan), and will help to reduce the shortfall of coal being faced by NTPC today. NTPC is now in dialogue with us to enhance the capacity to 18 Mt, for which we have started working.

Enabling work for the project is in progress and financial closure will be activated shortly. Organisational capability building is in progress and a strong experienced and dedicated team is already working in Kolkata, Barkagaon/Hazaribagh to develop this project.

On 11th February 2012, Director (Finance) of NTPC broke the ground on a training centre to be build and operated by Thiess Minecs, in order to train the local youth to work in the Project or elsewhere.

2012 will be a landmark year in the history of Thiess India when mining operations commence for the first time in India through a local sub-contractor in October, immediately after the Monsoon season. In January 2013, Thiess Minecs plans to dispatch coal to NTPC from its captive coal mines for the first time, by implementing contingency plans in consultation with NTPC.

Winning The Pakri Barwadih Contract Is A Platform On Which To Build A Contract Mining Business In India And Has Been A Long Term Goal For Thiess

Environment & Community

While NTPC is engaged in land acquisition and Resettlement & Rehabilitation of the Project affected persons, Thiess Minecs is implementing its own community engagement and development strategy, and construction of mine infrastructure. One of the first buildings to be constructed is the Vocational Training Centre, which continues Thiess’ established track record of training local youth in the operation and maintenance of mining equipment.
As an income generating scheme for the ladies, Thiess Minecs has joined with Jharkraft & Government of Jharkhand to train ladies on handicraft work. As many as 35 ladies have completed training, and this pilot program is now being extended to other villages in the area.

Health & Safety

A medical clinic completely funded by Thiess Minecs has been set up at the site with the help of reputed NGO. Two doctors along with Para Medical staff, pathology tests and a 24/7 ambulance facilities have been provided.
Thiess Minecs also organises Health Camps in different villages of the Pakri Barwadih block with more than 1100 people treated by the Health Centre.

Accommodation

To attract and retain the best people to develop and operate the Pakri Barwadih project, Thiess Minecs offers staff members (all officers & selected supervisors) the option of staying in suitable bachelor accommodation in the proposed Thiess Minecs camp at Pakri Barwadih, while their family members can stay in Ranchi (Jharkhand’s capital) or Hazaribagh (District/Town).
Thiess Minecs will provide a complimentary staff bus to transport the staff members to and from central places in these towns to the Project camp/mine. Suitable rosters and work schedules will be developed to facilitate this arrangement.