Govt plans to mine 90 million tonnes of coal at Dighipara

The government plans to extract 90 million tonnes of coal in the next 30 years from the Dighipara coal mine in Dinajpur with a current market price of $16 billion (Tk1,67,904 crore).

Experts say this would be the right step amid the country's struggle with high energy prices and the quest for stable energy supply for domestic and industrial consumers.

It is expected to take around eight years to begin coal extraction from the mine after the start of work. The mine is expected to have a reserve of 706 million tonnes, according to a feasibility study conducted by Barapukuria Coal Mining Company Limited.

The plan was unveiled in a report presented by Petrobangla at a meeting on Bangladesh's coal reserve on 11 February this year. State Minister for Power, Energy and Mineral Resources Nasrul Hamid was present at the meeting.

Currently, Bangladesh is extracting coal only from the central part of the Barapukuria coal mine. As of last January, 14.24 million tonnes of coal have been extracted from this mine since 2005.

Experts say with the gradual decline in the country's fuel supply and the diminishing reserves of extractable gas in gas fields, it is highly logical to opt for coal extraction from new mines.

At present, 3.6 million tonnes of coal worth about $6b is required every year in power plants in the country.

Badrul Imam, energy specialist and a geology professor at Dhaka University, said, "The country needs coal supplies. With the inadequate amount of coal mined from Barapukuria, extracting coal from Dighipara could potentially meet the coal demand of coal-based power plants and save significant foreign currency."

He added, "There is a necessity for long-term coal supply for these power plants. Consequently, imports should be minimised by tapping into the country's reserves."

According to Petrobangla, 20% of the country's total reserves can be extracted from the country's five coal mines. The remaining extractable coal reserves in the country are 1,550.36 million tonnes, equivalent to 39.69 TCF of natural gas. Currently, the remaining natural gas reserves in the country are 9.38 TCF.

Costs and financing of extracting coal at Dighipara

According to Petrobangla's report, the capital expenditure for extracting coal from the Dighipara mine will be $1.644 billion. Additionally, the operating cost for extracting per tonne of coal will be $53, resulting in a total cost per tonne of coal extraction of $160.

Petrobangla mentions developer-cum-operator investment, suppliers' credit, joint ventures, foreign sources or government funding as possible financiers for extracting coal from the mine.

A survey report on coal extraction from the Dighipara mine has been submitted to the power, energy and mineral resources ministry by the Chinese company CMC, which is presently engaged in coal extraction from the Barapukuria coal mine.

The Chinese company has suggested forming a joint venture company if the project is deemed profitable upon reviewing the survey report.

Multi-slice longwall method

According to the Petrobangla report, the Dighipara coal mine area spans 11 square kilometres, with coal reserves discovered at depths ranging from 320 to 506 metres. The feasibility study for the mine was completed in 2020. In August 2022, UK-based consulting firm DMT Consulting Limited conducted a review of the feasibility study report and provided positive feedback, recommending the underground multi-slice longwall top coal caving mining method.

In light of this recommendation, Petrobangla has submitted three alternative proposals to the Energy and Mineral Resources Division.

They proposed undertaking rapid development activities for coal mining using the underground multi-slice longwall top coal caving mining method.

Alternatively, they suggested conducting a feasibility study to determine whether the room and pillar with stowing method or underground coal gasification method could be employed while minimising ground subsidence.

Energy specialist Badrul Imam said opting for an open-pit method in Dighipara would not be suitable. The multi-slice longwall or multi-layer underground approach will be perfect for it.

Describing the multi-slice longwall method, he explained that this approach involves tunnelling to reach the coal layer underground. If the coal layer in the mine is 20 metres deep, the initial extraction begins with the top three metres. Subsequently, after leaving a three-metre gap, the lower three metres are extracted.

Environmental impact

According to the Petrobangla report, extracting coal from the Dighipara coal mine would necessitate the acquisition of 13.98 sq-km of agricultural land. The report calculates the value of paddy production on the land over the next hundred years at Tk6,009 crore.

According to the report, around 11,110 people from 2,798 families will be needed to relocate for the coal mine. To rehabilitate the landless, housing arrangements can be made by constructing mining cities. Landowners affected by mining will be compensated according to government law, and there will be direct and indirect employment opportunities for local people.

An environmental impact assessment and environmental management plan have been conducted for coal extraction from the mine. The report states that the maximum water flow in the mine can reach 20,000 cubic metres per hour, which will be controlled through the construction of cut-off walls or sealing walls.

Citing examples of how mines are managed by building sealing walls to control water flow in various countries worldwide, the Petrobangla report mentions that Germany's Lusatian Lignite open-cut mine, Jaenswalde open-cut mine, and Canada's Diavik diamond mine have effectively controlled water flow through the construction of sealing walls.

According to the report, the use of sealing walls will not adversely affect the water level outside the mine area, thereby avoiding any detrimental impact on the environment. The maximum water discharge from underground after the construction of a sealing wall is reported to be 2,516 cubic metres per hour.

During a briefing on 16 January, Nasrul Hamid said instructions would be sought from the prime minister to extract coal as much as possible without damaging agricultural land or harming the environment. He mentioned that once the prime minister gives her consent, coal mining will proceed.

Condition of other coal mines

The Petrobangla report also addresses the current status of other coal mines in the country and proposes potential actions for coal extraction.

It suggests that a feasibility study is necessary to extract coal from the northern part of the Barapukuria coal mine using either the room and pillar or LTCC mining method. This section contains coal reserves of 135 million tonnes at depths ranging from 118 to 370 metres, covering an area of 2.81 sq-km.

On the other hand, the US-based JTB has recommended the adoption of the longwall mining method for coal extraction in the southern part of Barapukuria. Petrobangla has proposed conducting a feasibility study to assess the viability of extracting coal using the room and pillar method.

The Chinese contractor company XMC-CMC Consortium has been tasked with coal extraction from Barapukuria until 2027.

The consortium has informed the Energy and Mineral Resources Division that an additional 1.08 million tonnes of coal could be extracted from the Barapukuria coal mine by extending the contract.

In 2005, following a feasibility study, the consulting firm recommended open-pit mining of coal from the Fulbari coal mine. However, due to protests from local residents, coal mining activities were suspended. Petrobangla has recommended conducting a feasibility study to determine whether the room and pillar method or the room and pillar with stowing method can be employed to extract coal from this mine.

In terms of coal reserves, the Jamalganj coal mine, the country's largest, holds 5,450 million tonnes of reserves at depths ranging from 640 to 1,158 metres. In a study conducted in 2016, the Division of Energy and Mineral Resources recommended underground coal mining at depths of 600 to 800 metres in a 15-square-kilometre area of the northwest part of the mine.

In this context, Petrobangla's proposal suggests conducting a feasibility study for underground coal extraction from the northwest part of the mine.

Besides, the Khalashpir coal mine, consisting of 12.25 square kilometres area at depths of 222 to 516 metres, holds reserves of 685 million tonnes. In 2005-06, Hosaf International Ltd and Shandong-Ludi Xinwen Mining Group consortium jointly completed a feasibility study recommending the adoption of the longwall mining method.