Habrang Coal Mine is located at Khatoethang Chiwog, Phuntshothang Gewog, in the Samdrup Jongkhar District of Bhutan. This mine is significant as it is the first coal mine operated by the State Mining Corporation Limited (SMCL), which began operations in 2016.
Geological and Operational Details
- Geological Reserve: The mine has a geological reserve of approximately 285,993.75 metric tons (MT).
- Mineable Reserve: The mineable reserve is estimated at 243,757.93 MT.
- Average Annual Production: The average annual production capacity is around 42,000 MT, reflecting a steady output from the mine.
- Total Leased Area: The total area leased for mining operations spans about 144.51 acres.
- Mining Method: The mine utilizes an open-pit mining method, which is standard for surface coal extraction.
Historical Context
The Habrang Coal Mine was formally leased to SMCL by the Department of Geology and Mines (DGM) on January 4, 2016, marking a significant milestone for the government’s investment arm, Druk Holding and Investments (DHI), in the mining sector. Actual mining operations commenced in August 2016, with initial projections estimating a probable deposit of around 600,000 MT of coal.In its first five months of operation, the mine sold approximately 1,000 MT of coal to Dungsam Cement, generating gross revenue of around Nu 67.698 million. This successful start helped reduce SMCL’s operational losses significantly.
Economic Impact
Habrang Coal Mine plays a crucial role in Bhutan’s economy by providing coal primarily for domestic industries, particularly the cement sector. The coal mined here is vital as it accounts for about 40% of the total production cost of cement in Bhutan. The mine also contributes to local employment and generates revenue through coal sales.The operational success of Habrang has enabled SMCL to stabilize its financial position and contribute positively to government revenues.
Challenges and Future Prospects
The mine faces several challenges typical of coal mining operations, including fluctuations in seam quality and transportation costs associated with moving coal from the site to end-users. Additionally, environmental concerns related to surface mining practices necessitate careful management.Looking ahead, SMCL aims to enhance operational efficiency while addressing these challenges through potential restoration projects as the mine approaches depletion. Plans are also in place to improve community engagement and ensure that local needs are met as mining activities continue.In summary, Habrang Coal Mine serves as a vital asset for Bhutan’s mining landscape, characterized by its significant reserves and contributions to both local economies and national revenue generation. Its strategic importance in supporting domestic industries underscores its role in Bhutan’s economic development.
