Stringent regulations in the case of transportation of ammonium nitrate technical grade, commonly referred to as TAN, is giving a tough time to manufacturers of mining explosives.
Under the new rule, which came into being since January 2014, licenced manufacturers are mandated to employ two-able bodied and trained individuals along with the consignment till the location of the mine. Besides, this has to be supported with respective clearances from state/central police personnel at various transit points.
The explosive made out of TAN (65- 80 per cent by weight) is used in mining sector operations, including coal, metal mines and also by the cement industry. The new rules are mainly aimed at preventing the use of ammonium nitrate by terror elements.
"The ammonium nitrate (AN) rules have made it harder to transport to end-users," said Carl Lindgren, president of TAN business at Deepak Fertilisers.
Some manufacturers said it was very difficult to employ individuals whose identity is readily available and scrutinised by the security personnel. According to Singareni Collieries general manager - co-ordination, S Chandrasekhar, the company was witnessing delays in the arrival of bulk mixture and cartridge-laden TAN at its facilities. While the public sector miner's annual requirement of TAN stood at 90,000 tonne, it produces around 15,000 tonne per annum at its facilities in Ramagundam and Manuguru in AP.
He said the technical issues associated with the scrutiny process had been put forward by miners to the respective central government bodies and port officials, including the chief controller of Explosives, PESO, Nagpur.
However, with the AN Rules here to stay, the manufacturers are bracing themselves to tackle the situation. "While there was a problem in the initial stages ie in January and February, we have now raised the capacity by 1,000 tonne and the March production should be around 38,000 tonne," said Lindgren.
When contacted, an NMDC official said the issue had not really affected its operations much in the last three months, as it procured from multiple suppliers. However, he expressed there had been some supply pressure.
India's annual requirement of industrial grade ammonium nitrate stands at 700,000 tonne. The country imports 40 per cent of its needs from Russia and Ukraine in bulk format, while globally trade happens in bagged consignments, in conformity with the recommendations of the International Maritime Dangerous Goods Code.
The supply problem could be partly attributed to their working approach of the miners. "In India, unlike the miners in Australia, North America and South Africa, there isn't any big push for a sizeable inventory. Here, miners stock up inventory for a couple of days," said Lindgren.
Refuting the talk around shortage of ammonium nitrate in the market, he said, domestic availability this year would be higher at 780,000 tonne.
Vizag Port to form committee to study bulk imports
Meanwhile, Vizag Port, which had discontinued bulk ammonium nitrate handling except in bagged form from April 1, 2013, last week has decided to moot a committee to review its embargo.
The move comes after the Shipping Ministry has urged the port to review its embargo on the bulk import of ammonium nitrate.
The port was in the process of setting up an expert committee with trade, CISF, traffic department officials for working out modalities relating to safety and security measures while handling the bulk form. After finalisation, the committee is expected to come up with recommendations in two weeks, a port official said.
The port prior to issuance of the order handled 200,000-300,000 tonnes of ammonium nitrate a year in bulk form. However, with the fresh guidelines, this fell to 40,000 tonne.
