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.

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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 20-50 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.
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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;
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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;

2.

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.
Mine Design parameters
Giving justifications for the selection of chosen parameters for,

3.

Bench dimensions;
blast hole drilling;
blasting;
haul road and ramp;
waste dump;
final pit configuration etc.
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:

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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.

Waste Disposal planning

Select most suitable site giving justification and due consideration to the cost

5.

involved.

6.

7.

Describe in detail the treatment of waste & tailings, configuration of waste dump
and its stability.
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.
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:

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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.

Financial Analysis:
Revenue from sales,
Profitability statement,
cash-flow analysis,
rate of return,
payback analysis,
break-even analysis.

10.

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;
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 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

Payment
(in %)

Major mild-stones
1 On signing the contract

10

2 On completion of survey

15

On acceptance of draft
Geological Investigation Report

4 On acceptance of FMFS report

5 On acceptance of EIA
6

25
15

On commencement of actual
work
Total

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25

10
100

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.

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