Cover Article

Coal Policy: Some Australian Lessons
Saleque Sufi

The caretaker government with popular support of silent majority is on a mission to eradicate corruption, indiscipline and mismanagement from every walk of life. These are considered essential preconditions to create enabling environment for neutral, free and fair election for restoring democratic government which can dedicate themselves for the poverty alleviation and overall development of the country. At the same time the government is also exploring various options to improving the general quality of life of the people, which the successive governments did not accomplish. The government is very conscious about the deteriorating energy security and is trying to find the appropriate options exploiting the energy resources in the safest and most economic way. Bangladesh does not have huge natural gas to ensure the energy security till eternity. It is nonrenewable and is fast depleting. Many conservative estimates suggest that we may face serious gas supply crisis as early as 2020. This may still happen even if we embark on aggressive exploration campaign. 

The only other basic energy resource of any significance is high quality coal, which may serve our requirement for a considerable time into the future if harnessed and exploited with proper plan. But for lack of proper policy and effective management we have so far failed to exploit this option for the last 36 years since independence. The only underground coal mine at Barapukuria appears to have become a white elephant. The underground coal mine there is suffering from manifold crisis. It cannot even feed the lone mine-mouth small power plant. The only other major coal project at Phulbari cannot progress due to mismanagement and indecision of the immediate past government. The UK based energy company AEC after extensive study under specific contract with the government submitted mine development plan. They considered open pit mining to be most cost effective and economic option for mining. 

A section of environmentalist and academicians started agitation and some people instigated the innocent local population to start agitation. The government let the situation go out of control leading to confrontation and loss of life. This resulted in suspension of mining activities and some quarter could put a temporary halt to delay mining. Some of the representative of previous government agreed with the agitating people to halt the mining activity and scrap the contract between a government and an international mining company without considering the legal impact of such injudicious act. That is the way one major mining initiative for exploring coal is hibernating.

The previous government initiated action for coal policy and advanced a great deal after extensive discussion on the draft policy prepared by line professionals. This policy is now lying with energy ministry. The caretaker government is believed to be contemplating proceeding with the approval process. But sections of our intelligent people who always have their own agenda in any development efforts have questioned the authority of the caretaker government for approving the policy. It is ridiculous as the government is taking some many vital decisions like separation of the judiciary and administration, reconstitution of Election Commission , Anti-Corruption Commission etc. Still their authority for approving the coal policy is being questioned. 

They should provide logical opinion and techno economic analysis with justifications in support of their notion. But why they are questioning the authority of the government. Well who will determine this authority? Can we question why these people are not raising their voice against massive plundering and siphoning off huge public money in Barapukuria underground mining project? Why they did not agitate when the Hawa Bhaban was plundering resources from energy sector and were indulged in massive corruption in the energy sector?

We must admit we do not have any capacity for managing any mining project not to speak about undertaking mining at all. There are hardly any practicing miners in the country. There are no provisions for studying mining technology in the country. Senior miners did not have opportunity to work in active mines and most of them are no longer active. The theoreticians and academicians are acting on myths and misguiding the policy makers. Well the half literate politicians of immediate past government had their stakes elsewhere and they did not bother to resolve the Phulbari crisis. But the present government does not have any stake other than people’s welfare and long-term energy vision. So why they should bother about the ill motivated propagandas of short sighted opportunists. The government must examine every pros and cons of the AEC contract from legal point of view and resolve the issue at the earliest to restore confidence of prospective investors. Side by side they should also examine the draft coal policy and take steps to approve it. 

The coalmines usually take 3-5 years to come into production. So even if AEC or any other company starts mining now it will not be before 2011 that the commercial production can start. But by that time we may start struggling with our natural gas. There is no way that gas alone can sustain the energy and industrial sector for a long time. So by not taking appropriate development action of coal are we not exposing ourselves to serious crisis?

The main debate is whether open cut or underground mining is the appropriate option for us. For several years we are disputing and disputing. Our policy makers have visited several mining sites in different countries. There is innumerable information on websites. Our development partners can assist us also. Moreover, Barapukuria mine is a living example. So why we cannot conclude once for all the mining method? It will be different for different cases. But why is this dilemma? Most of the countries of world are more environment-conscious than us. If they can opt for open cut and underground mining methods to suit particular cases why we can nit do that? In this context we can look at Australian situation.

The Australian coal industry is committed to operating in an environmentally responsible manner and continually improving its environmental performance. By carefully pre-planning projects, implementing pollution control measures, monitoring the effects of mining and rehabilitating mined areas, the coal industry minimizes the impact of its activities on the neighboring community, the immediate environment and long term land capability.

Australia’s coal mines are required to meet stringent environmental requirements at all stages of mine development, from planning through to post operational mine site rehabilitation. The industry has responded by developing and applying more and more effective and sophisticated pollution control measures supported by comprehensive monitoring and reporting.

Let us now see how the mining industry responds to specific environmental concerns.

Air, Noise and Water:
To protect workers and communities from air, noise and water pollution, each mine invests heavily in specialised equipment and continuously monitors the effectiveness of its pollution control measures and researches new methods.

Dust levels are controlled by spraying roads, stockpiles and conveyor transfer points, drills are fitted with dust collection and additional land surrounding the mine may be purchased to form buffer zone between the mine and its neighbor.

Water pollution is controlled by carefully separating the water run off from undisturbed areas from water which contains sediments or salts from coal mine workings.

Clean runoff can be discharged into surrounding watercourses, while other water is treated and re-used for dust suppression and coal preparation plant.

Noise is controlled through selection of equipment and insulation and surround enclosures around machinery and each site has no vibration monitoring equipment installed.

Mine Rehabilitation:
Mining activities represent only a temporary use of the land. Extensive rehabilitation measures are adopted to ensure that land capability, post mining, and meet agreed and appropriate standards which, in some cases, are superior to the lands original condition.

In case of underground mining, the surface area can be simultaneously used for forests, cattle grazing and crop raising, even reservoirs and urban development with little or no disruption to the existing land use.

In open cut operations land rehabilitation measures generally progress simultaneously with the mines development. As core samples are retrieved to assess the quality and quantity of coal site, they are also analyzed to assess the value of soil or subsoil material to support vegetation. 

Computer models are used to simulate mining and backfilling operations over the operating life of the mine. Top soils are stripped and stockpiled prior to mining for subsequent dispersal over rehabilitated areas.

After mining ceases in one section the open cut, bulldozers and scrapers are used to reshape the disturbed area. Drainage within and off site is carefully designed to make the new land surface as stable and resistant to soil erosion as the local environment allows. Often dams are built to protect the area from erosion serve as permanent source of water. Based on the soil requirements, the land is suitably fertilized and re vegetated.

Mine Subsidence:
Some land subsidence is a consequence of underground mining if the maximum amount of the coal resource is to be recovered each mining lease. However, efficient resource recovery can be achieved through careful mine design, involving subsidence control practices, which minimize subsidence, integrated with thoughtful planning of proposed urban and other surface developments.

Well the method of mining is site specific, case specific. Technology protects both options from the safety point of view. It is economic consideration and recovery probability, which must drive the decisions. If open pit mining benefits the entire nation why then the nation cannot see that affected population are adequately compensated and appropriately rehabilitated. 

Bangladesh needs immediate decision on Coal mining strategy a comprehensive coal policy. We do not have capacity to explore or manage mines on our own. We have to develop our human resources. We must do that to keep regulation and control of mining in our own hands. But we must utilize most of the resources for our own requirement. The question of import should only come if the domestic market cannot absorb the coal. 

We should also cap the production capacity on the basis of appropriate reserve production ratio. If we have surplus we can trade ourselves and utilize the foreign currency in developing other important infrastructures. But at the same time we should also remember none will make huge investment unless they have opportunity of appropriate rate of return. If we cannot adopt a proper time tested policy now that may not happen during the tenure of political government. 

Our coal may remain unexplored for few more decades and we may plunge into serious energy insecurity for indefinite period. Exploration and utilization of coal will trigger green house gas emission and related issues. There are answers to these imposing problems also. There should not be any cause of concern.
We should not waste time in unnecessary debates. 

The government may take assistance of donor agencies and experts of friendly countries in finalizing the coal policy. Bangladesh and its people must get the maximum benefit from its own resources. We hope that the present government will take immediate action to adopt the coal policy and create opportunity for aggressive coal mining. Availability of coal in 3-5 years will create opportunity for setting up required numbers of coal based power plants for ensuring long term energy security. It will also protect our gas resources from rapid depletion and more economic use. Active coalmines in the greater Dinajpur and Rangpur areas will create massive job opportunities in areas where people are affected every year from Monga and other problems. The entire economy of the area will be changed.