SCCL's coal reserves in Godavari Valley Coal Field (GVCF) are expected to last for 60 years. This coal field has approximate reserves of 10,000 million tonnes.
As of now, SCCL has 32 underground and 16 opencast mines across four districts of Telangana - Karimnagar, Warangal, Adilabad and Khammam - covering an extent of 17,500 sq km. The company produces about 50 million tonnes a year.
Earlier, the chief minister of the state asked the SCCL officials to give preference to underground mines instead of opencast as opencast mines are causing pollution in the area. He also asked officials to make efforts to reduce the pollution. But SCCL has been giving preference to opencast mines due to its operating cost advantages.
In opencast mining as the cost of production is very less in opencast compared to underground mining. While the cost of production in opencast is about Rs 1630 per tonne, it may go up to Rs 3740 per tonne in underground coal production while the realization through sales is Rs 2,000 per tonne for SCCL.
Of the company's total production, 79% of the coal production is being produced from opencast and only 21% from underground mines.
Singareni is planning to open 17 new mines in the next few years. Of the proposed 17 mines, 11 are opencast and six underground, which are expected to generate 31.85 million tonnes of coal.
SCCL has also decided to close 12 mines in the next few years including eight underground and four opencast especially several inclines in Godavarikhani.
Adriyala Long Wall Project of Singareni Collieries
Mining Ideas and Coal
by Dattatreyulu Jammalamadaka
Gives the background with failure of longwall mining earlier and initiation of new project in his book
Project IRR 17.3 percent
Sep 30, 2014
Cost of Production: Rs. 863 per tonne
Mechanization in Mining in India
Long wall Mining - Slide Share