Section 5 TERMS OF REFERENCE (ToR) For Topographical Surveying, Geological Study, and Final Mining Feasibilitiy Study

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1 Section 5 TERMS OF REFERENCE (ToR) For Topographical Surveying, Geological Study, and Final Mining Feasibilitiy Study I. BACKGROUND State Mining Corporation Limited (SMC), a subsidaiary of Druk Holdings and Investments Ltd is in the process of acquiring coal mine at Samrang coal mine under Martsala gewog, Samdrup Choeling ( or Bhangtar) dungkhag, Samdrup Jongkhar dzongkhag. This mine was once operated by a private company and later closed down by the government for security reasons. It is believed that there are good reserves of coal deposits still left at this site after the last mining activities. SMC would like to revive this coal mine and operate on behalf of the government. The revival of the mine necessitiate geologial investigation in order to confirm the balanced reserve. Susequently, final mining feasibility study (FMFS) and EIA will have to be prepared. II. LOCATIONS The place where the coal occurs is known as Tshophangma which is located at about 7-8 km from Samrang gewog centre. Tshophangma, although closer to Samrang, is under Martsala gewog, Samdrup Choeling dungkhag. It is not accesible by a road. It has around 100 acres of land earmarked for the mine. III. OBJECTIVES Main objective of the ToR is to engage highly experienced and relevant consulating firms (local or international or joint venture) who will be able to carry out topographical surveying, geological investigation study (GIS) and final mining feasibility study (FMFS) report, and environmental impact assessment (EIA) for Samrang coal mine. IV. DETAILED SCOPE OF WORK AND DELIVERABLES There are three major work or deliverables to be achieved. Main scope of work with deliverables required are given below. 1 P a g e

2 A. Topographical surveying: A1: Scope / responsibilities of consultants: 1. Conduct reconnaisance study on the sites (preferably before submission of the bids or RFP); 2. Conduct topographical survey necessary using total station or advanced technology, 3. Pick up points, lines and polygons of all relevant topographical features like reference points, important land marks, cliff, base of cliff, existing structures, private land boundary, drainage channels, rock outcrops, lease boundary, geological section lines, geological readings of dip and strike, ridges & valleys. 4. The surveyor should pick up geological reading points taken/marked by the geologist at close spacing. 5. Demarcation of mine lease boundary, in the presence of DGM mining engineer if DGM chooses to attend. o Fix appropriate demarcation pillars on each demarcation points with properly anchored angle iron angle of 2 inch by 2 inch & 3 feet long. Consultants need to quote based on this specification. o The demarcation must be done with PCC with average dimension of 8 inch x 8 inch x 12 inch deep hole in to the ground. o For financial estimation, total number of pillars should be 30 (thirty) with above dimension. Consultants must quote accordingly. o Consultant should paint the iron angle with white paint and number with red paint. 6. Survey should cover about metres beyond the earmakred boundary of the mine; 7. The map must be acceptable to the competent authority with appropriate scales. 8. The survey work and output maps are preferred in National Reference System - Drukref. Note: The demarcation work will be carreid towards the end of geological study or as convenient to consultant but before monsoon. If grade and reserve are not acceptable to the client, demarcation is not required and accordingly contract may cease too. A2: Outputs/deliverables from the survey report must include the following: 1. A layout map suitable scale showing all topographical features, including all important land marks, landuse type, existing structures, private land boundary if any, drainage channels, contours, cliff, top and base of cliff, lease boundary, geological litho-contacts etc. 2 P a g e

3 2. All final maps must show permanent required features/information in A0 size or suitable sized white paper to fit the map scale duly signed by the surveyor and the geologist. 3. The deliverables should also be supplied as soft copies in DXF format, DWG plot format and Arcinfo Shapefile format in DVD/CD media. 4. Demarcation pegs on site with white paint, numbered read and on map (colour). 5. All pegs must be numbered on the PCC foundation top with red paint. Required to submit 3 nos of A0 size map containing all details above (demarcation point must be shown clearly with nos). B. Geological investigation report (GIR): B1: Scope/responsibiliteis of the consultants: 1. Conduct at least 30 (thirty) sampling within the area; 2. Carry out trenchings at suitable locations: o With average dimension of 20 m long, 1 m wide, 1.5 m deep. Consultant must quote for one such trenching (unit price) in the financial proposal. If there is need for more trenches during the course of study period, the client shall according asks consultant to do at the quoted price per trench provided in the financial form. The client with DGM will decide the nos of trenches required during the visit. 3. Consultants geologists must use its expereince and skills to locate appropriate trenching/sampling sites. 4. Conduct a geological investigation or exploration & mapping showing dip & strikes direction on the map; 5. Carry out laboratory tests and analyses the samples at recognized test house or laboratories or DGM lab, to see if it fit to be used for production of refreactory bricks and fused coal. 6. Geological plans and sections showing necessary geological features; 7. Detailed findings of the exploration, geological parameters, reserves, quality of mineral or grade, etc.; 8. Apart of soft copy, produce hard copy map suitable scale in A0 size paper showing all details. B2: Deliverables: Main deliverable is geological investigation report (GIR) which must contain the following: Laboratory analys of coal from different locations within the site; Geological investigation report with confirmed reserves and grade; 3 P a g e

4 Geological map showing outcrops, litho-contacts, overburden thickness, geological readings, and geological cross-sections, as appropriate. Required to submit minimum of 3 nos of report with 3 nos of geological maps in A0 size. C: Final mining feasiblity study (FMFS) report Main responsibilities and deliverables are, but not limited the following: 1. Mine Development Planning The plan must show or include the following: Determination of pit boundary and the area required for establishment of infrastructural facilities; Access road to the mine area and the mining benches; Pre-production development works including jungle & bush clearance, initial cut and bench preparation to expose the deposit; Establishment of infrastructure which include plant and machinery, office and residential buildings; Provision of ancillary facilities such as power, water, transport facility with and beyond the mine etc. 2. Mine Design parameters Giving justifications for the selection of chosen parameters for, Bench dimensions; blast hole drilling; blasting; haul road and ramp; waste dump; final pit configuration etc. 3. Mine production planning. Year-wise and bench-wise working and production plan giving details of quantity, quality and specification of mineral/rejects/sub-grade mineral and all the consumables; Description of the method of operation. 4. Mine plan drawings, Which must show or include the following: 4 P a g e

5 Location map in an appropriate scale showing pre-mining land use in and around the mining lease area and demarcation line of private and government land within the lease-hold boundary; Layout plans (in a scale not less than 1:50,00) showing lease boundary, pit boundary, infrastructure set-up, access road, locations of top soil/reject rocks/subgrade dumps, explosives magazine, public facilities such as school, hospital etc. and the index map showing the location of the proposed mine in the region; Pre-mining cross-sections at suitable intervals not exceeding 100 meters, along the actual slope of topography with clear plotting of different litho-types; Pre-production development plan; Bench-wise slice plans clearly demarcating different litho-types and grade of mineral in different mining benches; Year-wise configuration of the mining pit shown on plans and all X-sections clearly marking the litho-types for five years, for the end of lease period and for end of the mine life; Year-wise configuration of the waste disposal site for five years, for the end of lease period and for end of the mine life; Ultimate pit configuration on plan and different X-sections. 5. Waste Disposal planning Select most suitable site giving justification and due consideration to the cost involved. Describe in detail the treatment of waste & tailings, configuration of waste dump and its stability. 6. Manpower Details of manpower requirement in executive, supervisory, technical and workers category stating their duties, including organisation charts. Type of contract work and the contract workers proposed to be involved. 7. Project implementation schedule It includes the implementation schedule of various activities in the mine starting from project concept to signing of lease agreement to the production stage. 8. Capital cost It includes pre-production and preliminary costs, cost of equipment and machinery, infrastructure and mine development costs, utilities costs, working capital etc. 9. Production cost: 5 P a g e

6 It shall include cost for unit operations such as; transport, fuel water and power, labour, health, safety and sanitation,, service, marketing and promotion land compensation, acquisition, government levies, waste disposal, environment management and restoration activities, financing, depreciation cost, Other cost. 10. Financial Analysis: Revenue from sales, Profitability statement, cash-flow analysis, rate of return, payback analysis, break-even analysis. V. DURATION OF THE ASSIGNMENT The firm will be given 6 (six) months-time to come up with the outputs or deliverables mentioned above. The client expects consultant to furnish a detailed work plan with timeline acceptable to the client. VI. MANPOWERREQUIREMENT AND EXPERIENCES Following manpower is required, but not exhaustive: One geologist: o Bachelor degree or masters or PhD in geology and / or geological related studies; o 5-10 years experience (see RFP for detail); o Preference will be given to master or PhD geologist who has extensive knowledge on research on Himalayan geology, mapping and / or mineral prospecting in Bhutan. One mining engineer: o Bachelor degree or masters o 5-10 years experiences; 6 P a g e

7 One socio-economist: o Bachelor degree or masters in economics or financial studies; o 5-10 years experience. o Must experience in financial analysis too. Environmental expert o Minimum bachelor degree or master in environmental science, environmental planning and management, or relevant field. o 5-10 years experience in the field. One surveyor: o With 150 and above course. o 5-10 years experience in topographical surveying with competency to generate contours or maps both in LISCAD as well as AutoCAD or GIS. The consultant should have demonstrated required skills and experience to be able to carry out the studies professionally. Coal occurrence is highly erratic. Its needs the both theoretical knowledge as well field experience without which forecasting accurate coal reserve is challenging. In-depth knowledge of Himalayan geology, particularly of Bhutan, will be very useful. And consultant must be able to demonstrate such skills/knowledge. Further, mining engineer and environmentalist are of equally important if not more. It would be responsibility of the environmentalist to facilitate getting clearances from various agencies including local community. Therefore, mitigation measures must be appropriate and precise too. Such knowledge and skills must be demonstrated in the CV. VII. PAYMENT SCHEDULE AND TERMS Payment schedule will be as follow: Sl no Major mild-stones Payment (in %) 1 On signing the contract 10 2 On completion of survey 15 3 On acceptance of draft Geological Investigation Report 25 4 On acceptance of FMFS report 25 5 On acceptance of EIA 15 On commencement of actual 6 work 10 Total P a g e

8 VIII. PAYMENT TERMS Payment shall be released a week after acceptance of the report. If the reports are inadequate and not acceptable, the consultants shall be given one more chance to improve the documents within a specified time without affecting the subsequent duration/schedule of work during which they must submit the report. If the second submission (improved version) is also not acceptable, the contract will be terminated. IX. FACILITIES/SERVICES TO BE PROVIDED BY SMC It may be noted that SMC shall not provide any facilities or services such as stationeries, printing, office space, transportation, relevant laws and data, etc. SMC staff will show the sites once to the consultants. X. MONITORING SMC shall constitute a team of experts (or committee) from within and / or outside of the organization in order to assess the consultants jobs or track the progress of the consultants. The team may visit the sites from time to time in order to track the actual progress on the ground and report back on any shortfalls if any. Release of payment shall be done only upon approval of the committee. However, committee will have to ensure that the report is acceptable so that payment can be released..end of ToR.. ToR for EIA as approved by NEC. In addition: Minimum of two seasons baseline data is required for EIA report. Consultants are encouraged to set up the instrument and take the reading immediately after the award of the service, and collect another data at the end of the contract term, in order to avoid any delays. 8 P a g e

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