Organization Study @ Indian Rare Earths Ltd

INDIAN RARE EARTHS LIMITED

CHAPTER 1

INTRODUCTION

Each and every organization has its own importance in the economic wealth of the

nation. Different organization meets different needs of people by offering different

products and services. Due to globalization, the world has changed into a global

village. In this fast changing business scenario, it is imperative for every entrepreneur

to have a vivid understanding of the functional application of the new age business. As

a part of the academic curriculum each student has to undertake an organizational

study to get a practical exposure. This study is conducted at INDIAN RARE EARTHS

LIMITED, CHAVARA.

IREL, CHAVARA is located 10km north of Kollam, 85kms from

Thiruvananthapuram, capital of Kerala and 135kms by road from Kochi is perhaps

blessed with the best mineral sand deposit of the country. The plant operates on a

mining area containing as high as 40% heavy minerals and extending over a length of

22kms in the belt of Neendakara and Kayamkulam. The deposit is quite rich with

respect to Ilmenite, Rutile and Zircon. And the mineral Ilmenite happens to be of

weathered variety analyzing 60% Titanium Dioxide (TiO2). The present annual

production capacity of Chavara unit engaged in dry as well as wet (dredging/ up

gradation) mining and mineral separation stands at 2,00,000 tone of Ilmenite, 1,14,500

tones of Rutile, 11,750 tones of Zircon and 10,000 tones of Sillimanite. In addition to

that, the plant has facilities for annual production of ground Zircon called Zirflour and

Micozir of the order of 6000 tones and 300 tones respectively.

IREL Chavara is one of the oldest and leading public sector undertakings under the

Department of Atomic Energy (DAE). It is an ISO 9001:2000, ISO 14001:2000; OHSAS

18000 certified company supplies beach sand minerals to the foreign and domestic

market. It caters the requirements of developed countries like U.S.A, U.K, Germany,

Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile,

Sillimanite, Zircon and Zirflour

IRE in Chavara is known for supplying of Ilmenite (TiO2 bearing mineral) to the TiO2

industry. IREL Chavara is located 10 km north of Kollam, 85 km from

Thiruvananthapuram and 135 km by road Kochi is perhaps blessed with the mineral sand

deposit of the country. The plant operates on a mining area containing as high as 40%

heavy minerals and extending over a length of 22km in the belt of Neendakara and

Berchmans Institute of Management studies 1


Kayamkulam. The deposit is quite rich with Ilmenite, Rutile and Zircon and mineral

Ilmenite happens to be of weathered variety analyzing 60% TiO2. The present annual

production capacity of Chavara unit engaged in dry as well as wet (dredging/up

gradation) mining and mineral separation stands at 200000t of Ilmenite, 114500t of

Rutile,1175t of Zircon, and 10000t of Sillimanite. In addition the plant has facilities for

annual production of ground Zircon called Zirflour (-45 micron) and Microzir (1-

3micron) of the order of 6000t and 500t respectively.

IREL Chavara is one of the oldest and leading public sector undertakings under the

control of Department of Atomic Energy. It is an ISO 9001:2000, ISO14001:2004, and

OHSAS18001:1999 certified company supplies beach sand minerals to the foreign and

domestic customers. The major minerals products of IREL are Ilmenite, Rutile,

Sillimanite, Zircon and Zirflour.

Reason for selecting IREL

IREL is one of the major mineral producing public sector companies of its kind in India

In this study I will be covering organization as a whole briefly.



CHAPTER 2

INDUSTRY PROFILE

Rare earths elements, series of chemical elements of the periodic table. The Rare

elements include the elements with atomic numbers 57 through 71. In the early years

these elements were considered as rare elements and so they are called as rare earth

metals. Later many elements in this group were found splendid but their name remained

unchanged. The primary source of rare earth elements is greenish yellow coloured

mineral sand, which is Monazite .Its availability in nature is confined to certain beaches

and rock found in certain countries. The beaches containing the monazite are found mixed

with other minerals too. Most of these are ores for valuable metals. An ore is a mineral

from which metal can be separated economically. These ores are Ilmenite, Rutile, and

Zircon. Ilmenite and Rutile forms the ore for Titanium, Zircon for Zirconium; even

though Aluminium bearing metal Garnet and Sillimanite are also found along with these

beach sand minerals. But they are not commercially exploited for Aluminium production

due to economic reasons. However Garnet and Sillimanite, in their natural form, are

commercially significant. Ilmenite which is black in colour constitutes a major chunk of

these minerals (60%) presence of these minerals makes the beaches appear black. These

minerals are commercially known as beach sand minerals or heavy minerals.

The origin of beach sand is from rocks, which are rich with heavy minerals. This sand

particle reaches sea through rivers. The sea level is not remaining constant. It is regarded

that the sea level, it is now really 100 meters above what we had seen 20,000 years ago.

This white sand seen at the beach area contains he main constitute as Quartz. This is

lighter than black sand .As a result of movements of the sea this sand will erode away and

black sand get deposited. The black sand thus deposited 100 years ago is mined and

processed.

In the year 1789 Fr. William George (1761-1817) discovered Ilmenite at knower in

England and started that this black sand contains some important metal. But he failed to

discover which metal it was. After several time, in the year1875 the Hungarian scientist

Martin Heen Witch Klapporth found the same metal contents in the Rutile minerals about

which Fr.William George mentioned. After a series o investigations are found those

metals content as Titanium after ‘Titan’ of Greek mythology.

Technology developed over the years has made the beach sand. Minerals are utilized in a

variety of industrial and domestic applications. Monazite was mainly used in the gas



mantle industry. After the advent of electricity its demand decreased in the gas mantle

industry, Pigment industry, welding electrode industry, Sillimanite is used in high

temperature refractory industry, ceramic industry etc Zircon is used in foundries,

ceramics, and refractories and in the manufacture of Zirconium chemicals, metals and

alloys. Zirflour used in foundries for high temperature castings. Garnet is used in the

manufacture of abrasive polishing glass, TV tubes for sand lasting and for water filtration.

The beach sand mining and processing industry has vast future because of their demand

in nuclear industry too. In the present scenario of booming economy in India and China

there is huge demand for the beach sand minerals, Ilmenite in particular.

The current world production capacity of Ilmenite and other titanium feed stocks for

production of titanium oxide pigment titanium metal, welding electrodes etc is around 70

lakhs million tons per annum (tpa). Approximately half of this is from beach sands and

the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the

limited supply of natural Rutile, its share of consumption in pigment production is rather

small and 55% of its total availability of about 5lakh (tpa) is used in the non pigment

applications predominantly in the production of welding rod and titanium metal. The

present production capacity of pigment in the world just above 40 lakhs tpa North

America is the largest producer with 37% of the global capacity is the second largest

producer and Asia-Pacific region with 21% capacity, is the third. The balance 10%is

distributed among the rest of the world.

India has the largest resources base of 278 million tones for Ilmenite. This is the single

largest and Ilmenite .This is the single largest and least exploited mineral deposit in the

world. However 10% of this is only mineable. Resources base in India for other minerals

are:

Mineral In million tones Contribution to world

Rutile 18 10%

Zircon 21 14%

Monazite 8 7%

Sillmanite 130 25%

Ilmenite 107 35%

In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of

global Ilmenite production) and the production of Ilmenite and Rutile during 2004-2005

was over 3-5 lakh tonnes and 1300 tonnes respectively.



Presently there are few private organizations engaged in the mining and mineral

separation of beach sand minerals. The Indian players at present are Transworld garnet

private limited, VV minerals, Earth minerals private limited, Tutucorin.

Titanium Resource and value addition

Ti mineral TiO2 USD/Ton

mineral feed stock

Ilmenite 50-60 200-250

Manmade feed stock

Stag

Syn-Rutile

87

93

575

878

TiO2 Pigment

Rutile GR

Antase GR

99.8

99.8

3666

3333

Ti Sponge 99%Ti 11111

Ti mill products 99%Ti 22222

It can be seen that value will be increased about 100 time through value addition natural

Ilmenite

Key success factor for the beach sand mineral industry are:

Increase the Ilmenite capacity to reach economic scale of production.

Value addition projects in minerals and rare earths compounds.

Initiate action to develop new mining areas.

Forward integrate through stake in world leader in pigment industry like Tinfoss,

DuPont or selling up a pigment plant.

Explore other mining options in neighbouring countries.

Social and political Environment

Govt; understanding is considered necessary to safe guard the integrity and welfare of the

community as a whole, to enable to the economy, to plan for the overall rapid progress

and prosperity and to undertake and execute schemes and projects a vital to the need of

the nations.

Till 1998, IREL was enjoying monopoly in the beach sand mineral market but the Govt;

passed a mineral policy in 1998 starting that any private parties can be enter into mining

area. In the states of Tamil Nadu and Andhra Pradesh, private players’ have already



entered into beach sand industry. How ever in Kerala, private participation was much

encouraged with effect from 1998, after liberalizing mining policy, private participation is

increasing year by year. How ever, with effect from January 2007 all the beach sand

minerals expect monazite have been taken out of the ‘prescribed mineral’ category of

Atomic Energy Rules and the industrial licensing authority was shifted to Ministry of

mines from Atomic Energy Regulatory Board(AERB). This has eased the entrepreneurs

for obtaining industrial license to start their business in beach sand mineral industry.

WORLD SCENARIO

China, France, India, and Japan were major import sources of rare-earth chlorides,

nitrates, and other concentrates and compounds. Thorium-free intermediate compounds as

refinery feed were still in demand as industrial consumers expressed concerns with the

potential liabilities of radioactive thorium, the costs of complying with environmental

monitoring and regulations, and costs at approved waste disposal sites. In 2001, demand

for rare earths decreased in the United States, and imports decreased by 5.9%. In 2001,

estimated world production of rare earths increased to 119,000 t of REOs. Production of

monazite concentrate was estimated at 5,700 t. World reserves of rare earths were

estimated by the USGS to be 100 million metric tons (Mt) of contained REOs in 2001.

China, with 43%, had the largest share of those world reserves. China’s reserves are

primarily contained in bastnäsite-bearing carbonates. Australia’s reserves include rare

earths contained in monazite owing to its widespread availability as a very low cost by

product of heavy-mineral sands processing. Australia’s other major reserve of rare earths

is in the Mount Weld carbonate.

Australia.—Australia remained one of the world’s major potential sources of rare-earth

elements from its heavy-mineral sands and rare-earth laterite deposits. Monazite is a

constituent in essentially all of Australia’s heavy-mineral sands deposits. It is normally

recovered and separated during processing but in most cases is either returned to tailings

because of a lack of demand or stored for future sale. In 2001, major producers of heavy-

mineral sand concentrates in Australia, in order of potential production, were Iluka

Resources, Ltd., Tiwest Joint Venture, Consolidated Rutile, Ltd. (CRL) (43% owned by

Iluka Resources Ltd.), and RZM/Cable Sands, Ltd. (CSL). Iluka operated eight mines in

Australia and two in the United States in 2001 (Iluka Resources Ltd., 2002a, p. 1). Iluka’s

Australian subsidiary WA Titanium Minerals operated six mines in Western Australia,

two of which opened in 2000. The company operated the Capel North West Mine near



Capel, Western Australia. WA Titanium operated the North Mine and the Newman

concentrator near Eneabba, Western Australia. Other mining operations were the South

Mine near Eneabba and the Yoganup, the Yoganup Extended, and the Busselton Mines in

the southwestern region. Iluka’s two east coast mines, in which it has a 48.9% interest,

were operated by CRL on North Stradbroke Island, Queensland. Iluka upgraded the

heavy-mineral sand resources by 28% at three of its Murray Basin tenements in

northwestern Victoria. The deposits included the Boulka in Ouyen, the Snapper in

Pooncarrie about 120 kilometers (km) north of Mildura, and the Dispersion, about 70 km

east of Mildura. Iluka reported grades of greater than 22% heavy minerals with mineral

zones containing up to 27% rutile and 15% zircon at Dispersion (Iluka Resources Ltd.,

2002b). BeMaX Resources NL and Probo Mining Pty. Ltd. announced they would begin

development of their joint venture Ginkgo Mineral Sands project (Ginkgo) in the Murray

Basin near Pooncarie, New South Wales. Reserves are 184 Mt of ore grading 3.2% heavy

minerals. Production from the Ginkgo deposit was expected to commence in late 2003

with shipments commencing in early 2004 (BeMaX Resources NL, 2002; Mineral Sands

Report, 2002a). BeMaX reported inferred resources at its joint-venture Snapper deposit in

the northern Murray Basin, New South Wales, at 104 Mt grading 4.8% heavy minerals.

The BIP Joint Venture between BeMaX (75%) and Probo Mining (25%) controls the

Snapper and the Ginkgo heavy-mineral deposits (Mineral Sands Report, 2001f). The

Snapper deposit is located 10 km southwest of the Ginkgo deposit. The Ginkgo deposit

has a resource of 252 Mt grading 2.8% heavy minerals (BeMaX Resources NL, 2001§).

Exploration Company Metal Sands Pty. Ltd. released the results of its drilling in

southwestern Western Australia. The resource had an estimated 3.37 Mt of ore grading

2.38% ilmenite, including 1.85 Mt grading 0.08% zircon (Metal Sands Pty. Ltd., 2002).

In April, Iluka announced that it had discovered additional heavy-mineral sands resources

in Western Australia. Measured, indicated, and inferred resources were increased to 88

Mt of heavy minerals. This resource is split between Western Australia’s southwest

region, which includes Capel at 48 Mt, and the midwest region, which includes Eneabba

at 40 Mt. Iluka’s heavy-mineral sand resources in its rest-of-world category, including

other parts of Australia, in decreasing order, were Sri Lanka, 119 Mt; the United States,

25 Mt; North Stradbroke Island, Queensland, Australia, 15 Mt; and Murray Basin,

Victoria, Australia, 9 Mt (Mineral Sands Report, 2001c). Australian Zirconia Ltd. (a

wholly owned subsidiary of Alkane Exploration Ltd.) announced that it is making minor

adjustments to its pilot plant to produce a marketable zirconium oxide and hafnium oxide

product from its Dubbo hard-rock rare earth-yttrium-zirconium-hafnium-niobium-

tantalum bearing deposit in New South Wales. Another production run of the plant was



planned for December to produce a first run niobiumtantalum product (Alkane

Exploration Ltd., 2001). The multimineral deposit is located on the Toongi alkaline

intrusive that contains hafnium, lanthanides, niobium, tantalum, yttrium, and zirconium in

the igneous rock trachyte. Measured resources at the Dubbo deposit are 42 Mt grading

1.91% zirconium oxide, 0.04% hafnium oxide, 0.449% niobium oxide, 0.027% tantalum

oxide, 0.138% yttrium oxide, and 0.713% REO (Australian Zirconia Ltd., 2000).

Basin Minerals Ltd. announced it had acquired a loan to proceed with a final feasibility

study of the Douglas heavymineral sands deposit in the Murray Basin in western Victoria.

Basin Minerals’ Douglas deposit covers an area of 5,860 square kilometers and has a

resource of 22.4 Mt of heavy minerals. The area contains the Acapulco, Bondi, Bondi

East, and Echo strandline deposits containing 11.3 Mt of ilmenite (including leucoxene),

1.26 Mt of rutile, and 1.62 Mt of zircon. Basin Minerals reported it had filed an

environmental effects statement with the Victoria government (Mineral Sands Report,

2002b). Basin Minerals has estimated an inferred resource for the Culgoa deposit in the

Murray Basin to be 11.8 Mt at 16.8% heavy minerals with a cutoff grade of 3% heavy

minerals. Culgoa has 1.985 Mt of heavy-mineral concentrate with a waste-to-ore ratio of

2:1. The high-grade mineralization is between 60 and 140 meters (m) wide and averages

4 m in thickness over a strike of 17.6 km. Culgoa’s heavy-mineral content averages 79%

valuable heavy minerals and 21% gangue (TZ Minerals International, [undated]§).

Mineral Deposits Limited (MDL) announced it had received approval to proceed with an

extension of its dredging at Fullerton, New South Wales. The 14-km extension should

extend the mine life by about 10 years at present mining rates. Part of the extension

extends onto aboriginal lands, for which MDL has obtained leases from the Worimi Land

Council (Mineral Sands Report, 2001d). Iluka purchased a 4.8% share of Basin Minerals,

which has several heavy mineral sands holdings in the Murray Basin. Basin Minerals

properties included the Douglas project with reserves of 35.9 Mt of ore grading 10.3%

heavy minerals (Mineral Sands Report, 2001b). Iluka announced a takeover bid for its

43%-owned subsidiary CRL. Through its subsidiary Iluka Corp. Ltd., Iluka Resources

offered $A1.00 per share for all the outstanding stock, a 21% premium to the stock price

at the time of offer (Mineral Sands Report, 2001a). Sons of Gwalia (SOG) increased its

share of BeMaX to 19.9%. SOG held at 16.82% equity in BeMaX prior to the sale

of 5.1 million shares. Imperial One Ltd. (IOL), the largest shareholder, increased its share

of BeMaX to 24.36%. IOL was BeMaX’s original joint-venture partner when the

exploration company started (Mineral Sands Report, 2001e).



Brazil.—Reserves of monazite contained in marine alluvial deposits were 42,000 t, and in

stream placers, 40,000 t in 2000, the latest available data. The reserves of marine origin

were distributed in deposits primarily in the States of Rio de Janeiro (26,730 t), Espírito

Santo (4,136 t), and Bahia (10,186 t). The main placer reserves were in the States of

Minas Gerais (24,396 t), Espírito Santo (11,372 t), and Bahia (3,481 t) (Fabricio da

Silva, 2001, p. 93-94).

Canada.—Tiomin Resources Inc.’s Natashquan heavy mineral sand deposit is on a care-

and-maintenance basis while the company focuses on development of the Kwale deposit

in Kenya. The Natashquan deposit, on the north shore of the St. Lawrence River in

Quebec, contains ilmenite, magnetite, and zircon. Only a small portion of the deposit has

been drilled and resources are estimated to be 2.1 billion metric tons (Gt) of ore grading

5.9% heavy minerals. The dredgeable resource at Natashquan has been calculated using

geologic modeling to be about 770 Mt grading 9.0% heavy minerals for the north zone

and 890 Mt grading 7.19% heavy minerals for the south zone. A 116-hole drilling

program confirmed the modeling resource estimate (Tiomin Resources Inc., [undated]a§).

China.—Production of rare-earth concentrates in China was 73,000 t REOs in 2000, the

latest available data. Refined and processed products reached 65,000 t REOs. Production

of individual high-purity rare-earth compounds and metals was 25,000 t REOs, an

increase of 66% from those of 1998. Consumption within China increased by 20% in

2000 to about 19,200 t REOs. Metallurgical applications, the major domestic use,

consumed 5,200 t of equivalent REOs (China Rare Earth Information, 2002a). Santoku

Corporation entered into a joint-venture agreement with Baotou Rare Earth High and

New Technology Industry Development Zone, Rhodia, and Westlake to form the

rechargeable battery materials company Baotou Santoku Battery Materials Co. Ltd.

(BSBM). Santoku will reportedly invest 70% of the capital for the Baotou venture.

Initially, BSBM plans to manufacture mischmetal and nickel-hydride alloys for use in

rechargeable batteries for consumption in China. Future production will be slated for

export throughout Asia (Rare-earth Information Center Insight, 2001a). Baotou Iron and

Steel Group Inc. (Baogang) produced 7,900 t of rare-earth products in 2001. The

production represents an increase of 14% compared with 2000. Baogang reported a

profit of Y64.72 million (China Rare Earth Information, 2002b).

Estonia.—AS Silmet (a subsidiary of Silmet Group) separated rare earths at its plant in

Sillamäe. Located on the northeastern coast of Estonia on the Gulf of Finland, the plant



has capacity of 3,000 metric tons per year (t/yr) of rare earth products. Rare-earth material

for the Sillamäe plant originates as loparite concentrates from Russia. Preliminary

processing of the loparite ore is done in Solikamsk, Russia, to produce intermediate rare-

earth concentrates. These concentrates are shipped for use as feed material for the

Sillamäe rare-earth separation plant. The majority of production is exported to Japan;

however, exports to the United States have been increasing (Baltic Review, [undated]§).

The Sillamäe radioactive tailings pond, an environmental problem from the Soviet era

(before 1991), has been undergoing remediation since 1999. Under direction of the

private-public environmental company Ökosil, created by a cooperative venture between

the Government of Estonia and Silmet Group, the cleanup of the tailings pond is planned

for completion in 2006.

France.—Rhodia is to refocus its direction to become a development partner and supplier

of advanced materials, especially to the electronics and catalyst markets. Three new

business units in Rhodia were structured to embrace the company’s market focus—new

markets, electronics, and catalysis. The growth in added value products will be an

extension of its core business in rare-earth technologies (Rhodia RARE EARTHS—2001

61.7 Europe, 2001).

India.—In December2001, V.V. Minerals (VVM) announced that it had discovered

mineral sands resources of 23.9 Mt of ore containing 9.45 Mt of heavy minerals,

including monazite. VVM has been a producer of garnet with byproduct production of

ilmenite. With its drilling program in Tamil Nadu, VVM is expecting to produce greater

quantities of ilmenite and byproduct rutile and zircon. Additional drilling in 2002 at

closer intervals is expected to further delineate its heavy mineral deposit (Mineral Sands

Report, 2002c).

Indian Rare Earth Ltd. (IRE) operates three heavy-mineral sand mines at Chavara in

Kerala State, Manavalakurichi in Tamil Nadu State, and the Orissa Sands Complex in

Orissa State. In 2001, IRE recovered and processed monazite to produce thorium-free

rare-earth chloride and byproduct thorium hydroxide. Kerala Minerals and Metals Ltd.

(KMML) mined and processed heavy-mineral sands from beach sands along the Chavara

coast in Kerala State. KMML announced it was building a new mineral separation plant

to increase capacity to about 3 million metric tons per year (Mt/yr) of ilmenite, with

concomitant increases in the other heavy minerals. Monazite from the KMML deposits on

the Chavara coast had an average composition of 57.5% REOs with 7.96% thorium oxide

and 28.2% phosphate, with a specific gravity of 5.14. The heavymineral composition of



the coast and adjoining seabeds contained 240 Mt ilmenite, 20 Mt rutile, 50 Mt zircon, 60

Mt sillimanite, and 4 Mt of monazite (Kerala Minerals and Metals Ltd., 2001§).

Japan.—Japan refined 5,104 t of rare earths in 2001, a decrease from the 5,625 t

produced in 2000. The rare earths were produced from imported ores and intermediate

raw materials (Roskill’s Letter from Japan, 2002b). Inventories of rare earths increased to

701 t, up from the previous year’s level of 567 t. Imports of rare earths during the year

were 19,736 t, a decrease from the 26,928 t imported in 2000. The value of imports

decreased to ¥18,600 million in 2001 from ¥23,843 million in 2000 (Roskill’s Letter from

Japan, 2002d). Japanese rare-earth imports declined in all product categories. Imports

from the United States, however, were 664 t, an increase from the 530 t imported in 2000.

Estimated production of Japanese bonded neodymium-ironboron magnets in 2001 was

591 t, a decrease from the 700 t produced in 2000 (Roskill’s Letter from Japan, 2002c).

After a decade of double-digit growth, the decrease in neodymium-ironboron magnet

production is the second decline in 2 years. Japanese shipments of rare-earth-containing

Ni-MH rechargeable batteries decreased by 36% in 2001 to 650 million units (Roskill’s

Letter from Japan, 2002a). Ni-MH shipments were 653.8 million units in 2001, a decrease

from the 1,015.3 million units shipped in 2000. The lower shipments were the result of

decreased demand for consumer products that use Ni- MH batteries, including cellular

phones, laptop computers, PDA’s, and portable tools. Japanese imports of rare earths

from China were as follows: cerium compounds, 3,474 t; rare-earth compounds, 3,380 t;

rare-earth metals, 3,213 t; cerium oxide, 3,212 t; lanthanum oxide, 1,283 t; yttrium oxide,

854 t; and ferrocerium, 45 t (Roskill’s Letter from Japan, 2002d). Total imports in 2001

were as follows: rare-earth compounds, 5,361 t; other cerium compounds, 4,434 t; cerium

oxide, 3,832 t; rare-earth metals, 3,346 t; lanthanum oxide, 1,498 t; yttrium oxide, 881 t;

and ferrocerium, 384 t (Roskill’s Letter from Japan, 2002d). No rare-earth chlorides were

imported in 2001 (Roskill’s Letter from Japan, 2002e). China continued as the leading

source of rare-earth imports for Japan with 12,909 t in 2001, a substantial decrease from

the 22,431 t, imported in 2000.

Kenya.—Tiomin Resources Inc. explored four heavy-mineral sands deposits in the

coastal region between Mambrui and Shimoni. The deposits from north to south are the

Mambrui, Kilifi, Vipingo, and Kwale. Located 6 to 12 km inland from the coast, the

deposits are in the Magarini Formation of Pliocene age. The Mambrui has a resource of

700 Mt grading 3.7% heavy minerals. The Kilifi dunal system is believed to be aeolian in



origin. The Kwale deposit is the most advanced of Tiomin’s properties, although it is the

smallest of the group. The deposit consists of two large dunes located 10 km from the

coast and only 65 km from the city of Mombasa. Kwale’s resources are 200 Mt of heavy-

mineral sands containing 3.8 Mt of ilmenite, 1.1 Mt of rutile, 0.6 Mt of zircon, and lesser

amounts of monazite (Tiomin Resources Inc.).

Madagascar.—Rio Tinto Iron and Titanium Inc. (RIT) announced that its three deposits

near Fort Dauphin graded 4.5% to 5.5% heavy minerals. The heavy-mineral suite

reportedly is ilmenite-rich with a 75% to 80% content but with a correspondingly small

zircon and rutile content (Mineral Sands Report, 2001h). A feasibility study on mining

heavy-mineral sands near Tolagnaro (Fort Dauphin) in southeastern Madagascar was

started by QIT Madagascar Minerals S.A. (QMM), a Malagasy company owned 80% by

RIT and 20% by the Malagasy Government.

Mozambique.—RIT announced the discovery of heavy mineral sands deposits in the

Provinces of Gaza and Inhambane. The placer deposits are in a coastal dunal system

representing a fossil shoreline. Initial drilling indicated an inferred resource of 70 Mt of

ilmenite and other heavy minerals, including zircon. Additional drilling on the deposit is

planned (Mineral Sands Report, 2002e). Kenmare Resources plc of Dublin, Ireland,

completed its feasibility study of the Moma titanium minerals project, which indicated the

project was viable. Exploratory drilling proved the deposit is capable of supporting a

625,000-t/yr heavymineral sands operation for 20 years (Kenmare Resources plc,

2001).

Russia.—Solikamsk Magnesium Works (SMZ) reported it had processed 9,521 t of

loparite ore in 2000, up by 15.4% from that of 1999. Output was up by 48.2% in 2000 to

1,104 t of intermediate rare-earth compounds, feed material destined for the rare-earth

separation plant in Sillamäe, Estonia. SMZ reported value had increased by 21.3% to

Rub94.215 million. Rare-earth materials accounted for 34% of SMZ’s output, the

remainder being magnesium and its alloys (MetalMerge, 2001§). The Lovozero deposit in

the Murmansk region is the principal source of light-group rare earths (LREE) in Russia.

The deposit was operated by AO Sevredmet’s Lovozero Mining Combine until March

2000. Sevredmet went into receivership March 15, 61.8 U.S. GEOLOGICAL SURVEY

MINERALS YEARBOOK—2001 2000, and the mining company restructured under

OAO



Sevredmet. The new public company Lovozero Mining Company (LMC) was formed at

the Umbrozero mining facility to operate the loparite concentrator facility. LMC has

projected output from the concentrator to be 5,150 t/year of rare-earth carbonates (96% of

Russian demand). LMC ships loparite concentrate for further processing to Solikamsk

and then on for further refining and separation to Estonia, Kazakhstan, and Kyrgyzstan

(Russian Ministry of Economic Development and Trade, State Investment Agency.

South Africa.—Rare Earth Extraction Co. Ltd. (RARECO) decided to postpone

development of its deposit at Steenkampskrall because of international economic

conditions. RARECO quoted the financial crisis in Asia and Russia and decreased

commodity prices, including rare earths, as the principal causes for the postponement

(Rare Earth Extraction Co. Ltd., 2001§). Ticor Ltd. of Australia announced it would

acquire 40% of the shares in Iscor’s IHM Hillendale project in KwaZulu Natal Province.

The remaining 60% is owned by Kumba Resources Ltd. (a subsidiary of Iscor Ltd.). The

IHM project, which was renamed Ticor South Africa in August, consists of three deposits

—the Hillendale and the Fairbreeze in KwaZulu Province and the Gravelotte in Northern

Province—which total 16 Mt of heavy minerals. Mining using water jets was used for the

project because traditional dredging was determined to be inadequate (Ticor Ltd., 2000§).

The Ticor South Africa mine and concentrator were commissioned in June 2000 with

production from the deposit beginning in April 2001. The mine initially produced

196,000 t of ore with the concentrator producing 8,500 t of heavy-mineral concentrate. A

heavy mineral dry separation plant at Empangeni also commenced production. The Ticor

South Africa mining operation officially opened in September (Australian Mining,

2002§). Namakwa Sands (a wholly owned subsidiary of Anglo

American plc) continued to increase production of heavy mineral sands as a result of an

expansion (phase two) at its mine at Brand-se-Baai. The phase two expansion increased

ore capacity to 12 Mt/yr from 4 Mt/yr (Mineral Sands Report, 2001).



CHAPTER 3

PROFILE OF INDIAN RARE EARTHS LIMITED

On August 18, 1950, Indian Rare Earths Limited (IREL) was incorporated as a private

limited company -jointly owned by the Government of India and Government of

Travancore, Cochin with the primary intention of taking up commercial scale processing

of monazite sand at its first unit namely Rare Earths Division (RED), Aluva, and Kerala

for the recovery of thorium.

After becoming a full fledged Central Government Undertaking in 1963 under the

administrative control of Department of Atomic Energy (DAE), IREL took over a number

of private companies engaged in mining and separation of beach sand minerals in

southern part of the country and established two more Divisions one at Chavara, Kerala

and the other at Manavalakurichi(MK), Tamil Nadu.

After a gap of about 20 years, IREL commissioned its largest Division called Orissa Sand

Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with

Corporate Office in Mumbai and produces/sells six heavy minerals namely Ilmenite,

Rutile, zircon, monazite, Sillimanite and garnet as well as various value added products.

IREL is making profit for the last 6 years with its sales turnover reaching a peak

exceeding Rs. 2600 million in 2000-01, with export component of above Rs. 1000

million.

Chavara plant is engaged in the processing of beach sand deposits available on the coastal

belt of Neendakara- Kayamkulam.



BRIEF HISTORY

IREL’s history should not be narrated without mentioning the name of German Chemist

Mr. Her Schomberg who has realized that the shining yellowish- brown sand particles

sticking to coir, a coconut fiber shipped from India (1909), contained Monazite.

1948 The Government of India set up the Atomic Energy Commission under the

Chairman ship of Dr. Homi Bhabha. The export of Monazite was stopped and the

possibility of setting up a facility to process the beach sand mineral for the production of

Rare Earths was examined.

1950 Indian Rare Earth Limited was incorporated in Bombay.

1951 IREL became a full fledged Central Government undertaking under Department of

Atomic Energy and commenced construction of its Rare Earths plant at Udyogamandl in

Kerala.

1952 Rare Earth was dedicated to the nation on December 24, by the late Prime Minister,

Pandit Jawaharlal Nehru.

1955 Opening of Thorium factory off Bombay.

1965 Opening of Minerals Division at Quilon in Kerala State with manufacturing

facilities at Chavara in Kerala and at Manavalakurichi at Tamil Nadu and a giant mineral

sand separation and synthetic Rutile plant at Chatrapur in Orissa (1986) OSCOM



Products

IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon,

Sillimanite, and Ilmenite. The product range includes value added products like Zirflor

and Microzir.

Annual production capacity in Chavara plant

Product Production capacity

Ilmenite 200000t

Rutile 1145000t

Zircon 1175t

Sillmanite 10000t

Zirflour 6000t

Microzir 500t

Product Range

Product Specification Specific

gravity

Bulk Density

Kg/M3

Major application

Ilmenite ‘Q’

Grade

TiO2-58% 4.45-4.54 2600-2630 TiO2pigment

industry, Titanium metal

Rutile

‘Q’ Grade

TiO2-95% 4.18-4.24 2630-2650 Used as flux in the

welding electrode

industry

Sillimanite

Q’ Grade

Ai2O3-58% 3.20-3.25 1950-2050 In the manufacturing of

refractory bricks castables,

cordierites

Zirflour

(300/200mes

h ASTM)

ZrO2-64% - 1800-1850 In refractory and foundry

coatings. Also as opacifier

in ceramic industry

Microzir-1

9d50=`1.2mi

cron)

ZrO2-63.5% -` - In ceramic glazes, optical

glass, heat resistant

porcelain, refractories,

plastics, rubber etc



Board of management

IREL shares are wholly owned by Govt; of India. The board of management consists of

seven directors under the chairman ship of Mr. Siva Subramanian appointed by Govt; of

India. There are three fulltime directors and four part time directors who are nominated

by DAE and state Governments in addition, nominee from the president of India also

participate in Board meetings. Approximately 2750 people are employed by IREL in all

units and they constitute one of its greatest resource.



VISION

o To be a leading supplier of beach sand minerals from Asia by supplying 10% of

the world demand for beach sand minerals over the next 7-10 years. It would be

achieved by maximum utilization of existing capacities, new capacity addition,

and capturing major portion of the incremental growth in the global TiO2

feedstock demand and by developing competitive value added Rutile, zircon,

Sillimanite and garnet products that make handsome contribution to revenue and

profits.

o To become the preferred rare earths products supplier (producer and / or marketer)

for domestic customers to ensure long-term sustenance and profitability of rare

earths business and to achieve adequate efficiency in monazite processing as long

as it is necessary / worthwhile.

MISSION

To harness beach sands in an environmentally and socially responsible manner for

efficiently producing minerals and their traditional and innovative value-added

products of world-class quality, that are used to make increasingly superior / novel

products required by customers.

To play a dominant role in developing domestic rare earths market by producing

and / or marketing the quality value-added products to realize maximum potential

of rare earths in a range of applications.

To build a professional, creative and committed workforce and nurture an

environment that fosters learning, sharing and development.



Awards and Achievements

IREL has fairly good record in its performance during the past decade. From 1997-1998

onwards all out team effort was taken to achieve name plate capacity for the mining and

mineral separation plants in all the three locations, Total sales turnover, share of export

and profit after tax started improved by leaps and bounds and the company recorded

increasing profit since then. In addition to production and financial performance, IREL

has excelled in the areas of marketing, safety and human resource management. In

recognition of the company’s efforts, SCOPE awarded prestigious Silver Trophy of

‘SCOPE’ award for excellence and outstanding contribution to the Public Sector

Management – Special turnaround Category for the year 1999-2000. During the year

2006-07, IREL posted all time high sales turn over exceeding 3600 million with export

component over Rs. 1000 million & all time high Profit Before tax of Rs. 1000 million.

Future Outlook

Company is implementing expansion of all the three Mineral Separation Plants. With the

expansion activities in progress, the Company is poised to reach greater heights in the

years to come. The phase-I expansion at Chavara is nearing completion (in full) and the

expansion at MK is expected to take off soon. Expansion of capacity at OSCOM is also

progressing.

In addition to expansion of Mineral Separation Plants, the Company is planning to restart

the manufacture of Rare Earths products in big way with implementation of Monazite

Processing Plant (MOPP) at OSCOM which is likely to commence commercial operation

by July, 2009.

The successful completion of expansion activities will bring forth a new era of higher

capacity and profits and the Company, it is hoped, will attain the pinnacle of glory. The

Company will continue to be one among the most successful



CHAPTER 4

MARKETING AND SALES DEPARTMENT

Marketing occupies an important position in the organization of any business unit.

Marketing function necessary to satisfy the customer such as financing, storage risk

bearing and after sales services etc. Marketing is a vital connecting link between the

producer and the customer.

The department structure as follows

Objective of marketing department

Maximum turn over

Maximum profit

Maximum customer relation

Maximum customer satisfaction

Earlier IRE had the monopoly in the field of rare earth products. Now some private

players are present in the market. IRE is engaged in the production of minerals such as

Ilmenite, Rutile, zircon and Sillimanite from naturally available beach sand deposits. It

also produces like Zirflour and Microzir. On specific requirements of customers, the

company also supplies Sillimanite powder by sub contracting among there Ilmenite,

Rutile, , zircon are categorized as scheduled minerals for which the customer is require to

obtain license from the department of Atomic Energy (DAE) Bombay of their purchase.

Berchmans Institute of Management studies

General Manager

Dy. General Manager

Manager (sales) Manager (marketing)

Clerical staffClerical staff

20


Sales and distribution system

The organization enjoyed monopoly till 1998, only public sectors are present in the

market. After that private sectors are come to the market. But in Kerala they enjoy

monopoly. Direct selling is the main system of the organization. The customers primarily

pay the full amount as DD in advance and then the company gives the product.

For domestic sales orders are received as follows

1. Through head office

2. directly from customers

3. transferred from other units of IRE

All expect Zirflour and Microzir and Sillimanite powder are dispatched against permits

obtained after payment of prescribed loyalty by IRE in advance to department of mining

and geology, Govt: of Kerala.

On receiving inquiry from party is submitting their quotation stating with general

conditions for sales. Majority of the customers place orders directly with Chavara.

Sometimes head office also fixed quota customer wise, if necessary, for the supply of

minerals and intimates from time to time If all the formalities are completed delivery

instruction are given by the sales department to stores and despatch department for

delivery the material to the customers

Sales procedure

On receiving inquiry from a party they should submit their quotation stating with general

majority of the customers place orders directly with Chavara. In certain cases orders are

issued by registered office Bombay which is diverted to Chavara for execution. If all the

formalities are completed delivery instructions are given by the sales department to stores

department for delivering materials to customers.

Pricing

Pricing is very crucial decision for marketing management. The objectives of the firm is

to get maximum profit, it is very much depends upon the correct decision in pricing. The

price will have to accommodate with additional cost involved in respect of packaging,

labelling etc. Consolidated marketing are done in IRE. Approved prices of various

products are received from head office at time to time and maintained by sales

department.



Samples to customers

Samples are sent to customers on their request or as per instructions from head office for

their evaluation of suitability for their requirements.

Free samples are sent to customers as per following procedure.

Up to 500gm: HOD (marketing) intimates section head to prepare samples of required

quantity along with gate pass.

501 to 1 kg: HOD (marketing) prior approval from unit head and follows the above

procedure.

Above 1kgs: Head office approval with information to unit head and following above

procedure.

Customer visit

Every quarter five customer are selected for a visit to know the prevailing market

condition

Customer feedback

Every year customer questionnaires are circulated to the customers and circulated to the

customers and suitable strategy for future marketing. Competitors Even though the

company enjoys a near monopoly till recently. But now it has some competitors in

Domestic and foreign markets. Companies like Vaizag (A.P), VV Minerals, Tutucorin

(T.N) in the domestic market and like RGC Ltd, Western sands(both in Australia) Titania

and Tinfos (Norway), Richard’s Bay Minerals Ltd (South Africa)

Major customers

KMML

CMRL

Steel companies

Ceramic companies

Reoinda

Kerr-McGee Corporation

Dugon

The last three companies are regular customers who producing titanium di oxide (TiO2).

Market segmentation

The company finds its major market in foreign countries. The IREL exports mineral like

Ilmenite, Zircon &Sillimanite to many countries mainly U.S.A, Canada, UK, France,

West Germany, Japan etc. The head office in Mumbai makes the export contract .Also it

supplies heavily to domestic market. Exporting is done through shipment. The company



makes shipping bills and packs the items in cargo for distribution products in the

domestic market. The company uses road transportation system.

Market share

The company has 90% market share in domestic market and 2% in foreign market. Till

1998, the company enjoyed monopoly in rare earth products. But now some competitors

are present in other states. In Kerala still the company enjoys monopoly.

SALES FOR THE LAST FOUR YEARS

Fig 1



MINING DEPARTMENT

In IRE the raw material for production process are collected through mining process. The

production process starts with the collection of beach sand from various places. For

collecting this beach sand IRE uses the following two Methods: Sea Washing and

dredging.

Sea washing

Raw sand is collected from sites where deposits are occurred due to natural beach

washing .Presently IRE owns two sites one at Vellanathuruthu / Ponmana and one at 132

mining area. There is a heavy mineral deposit over a length of 22.5 km. They are found

over or coastal belt having an average width of 800 meters. The sea waves deposits the

mineral sand on the beach sand on the beach line and it is collected. Then it is send to the

mineral separation plant

Dredging

Presently IRE, Chavara have two floating dredges (material recovery plant MRP) at

Karithura and Puthenthura. These plants are constructed with the help of Neumann

Equipments private limited Australia. Each plant was cost about Rs 10 crore as

establishment cost.

The plant DWUP used for the mechanized recovery of minerals from the beach sand.

The DWUP consists of a floating dredging plant operated hydraulically and electrically

which could be moved from one place to another based on the requirement. The plant is

floating in an area having a water depth of 6 meters. The sand along with water in the

form of slurry (a mixture of sand and water) is pumped to the heavy up gradation

equipments. The equipments consist of a series of transfer bin rotating screens called

trommel, spirals separators, hydrocyclones, pumps etc all being electrically operated. The

DWUP can dredge about 40 to 60 tones per hour. The raw sand having an average at 40%

heavy minerals is fed to the floating plant and updates it to 85 to 90% mineral content.

The waste sand (quartz) from DWUP is used for backfill the dredged area.



Department structure as follows


Senior Manager

Manager

132-mining

Manager

VT mining

Manager

Dredge plant

Tally clerk Dy. Manager

Wheel land operator

Supervisor

Tally clerk

Workers (5)

Engineers (3)

Operators (16)

Workers (3)

25


PRODUCTION DEPARTMENT

The main function of this department is to separate the minerals from raw sand using the

physical resources so as to provide desired utility to customer while meeting other

organizations objectives, efficiency and adaptability. IRE takes the nature boundary in

the form of beach sand and separates it to extract rare earths and minerals. These

materials go for a wide variety of products like ceramics paints, flints of lighters,

detergent etc. IRE produces the major beach sand heavy minerals like Ilmenite, Rutile,

Zircon, Sillimanite, brown Ilmenite and value added products like Zirflor and Microzir.

MAJOR FUNCTIONS OF THE DEPARTMENT

Prepare detailed raw material plans and ensure the incoming Quality standard and

their usage

Constantly evaluate alternative sources for raw materials, direct trial of the same

and help management to firm up such source

Prepare detailed production plan in consistent with Company’s production

objectives; direct and control the implementation of the same

Carry out investigation and guide management on long term measure towards

achievement of goals of expansion in the area of production and quality

Evolve standard operating procedures for different process and equipment

document standard operating data and periodical update the same


Various tasks of production department


GM

Manager

Production Engineers

Operators

Workers

Fitters

Electricians

26


1. Prepare detailed production plans consistent with company’s production

objectives and direct control the same.

2. Constantly evaluate alternate source of raw materials, direct trials of the same and

help management to firm up such sources.

3. Carryout investigation and guide management on long term measures towards

achievements of the goals of expansion in the across of production and quality

4. co-ordinate with customer service department and initiate actions in different

departments to take corrective actions from the points of the quality assurance to

customers

5. Ensure implementation of safety measures in the operations, equipments and

process to avoid dangers to the structures and man and equipment.

6. Evolve standard operating for different process and equipments, documents,

standard operating data and periodically update the same

7. Provide leadership to the men under his jurisdiction motivating all the officers and

workman in the production and control areas towards better performance and

achievement of company’s objectives regarding production and maintenance of

sound industrial relatives.

Production process:

The mineral sand from different mining areas as well as dredged sand from DWUP sites

are fed to HUP, where it is passed through a set of spirals and is separated into

concentrate and tailings (righter) fractions. The concentrate fraction is passed through

WHIMS magnetic separator to get magnetic and non-magnetic fractions.

The dewatered WHIMS magnetic fraction is dried in a Fluidised Bed Drier and fed to the

High tension Separators to get conducting fraction which is the Ilmenite product and non-

conducting fraction, which is enriched in Monazite, is sent to the monazite plant for

further processing.

The dewatered non-magnetic fraction from HUP is dried in another Fluidized Bed Drier

and fed to High tension Separators to get conducting fraction and non-conducting

fractions. The conducting fraction is fed to Magnetic separators to get three fractions viz,

(1) Magnetic (Ilmenite product), (2) Non-magnetic (Rutile product) and also a middling

fraction (Leucoxene product).



The non-conducting fraction from the Rutile High Tension Separators Rutile plant is fed

to another set of Magnetic separators, the magnetic fraction of which is fed to Monazite

circuit, being rich in Monazite content. The non-magnetics fraction is fed to the Floatex

Density Separator the overflow of which is rejected and the under flow is fed to spirals

circuit. The heavies’ fraction from these spirals is further upquraded through wet tables,

Magnetic separators, HTS etc to produce Zircon product. The tailings fraction from the

spirals is treated in Kelsey Jig and wet tables to recover zircon. The tailings fraction from

Kelsey Jig is treated in Spirals, Flotation cells etc to produce Sillimanite product.

PRINCIPLES OF SEPARATION

Conductivity separation:

The heavies from HUP plant is dried using fluidized Bed Dries (FBD). The dried mineral

concentrate is subjected to electrostatic separation using high tension electrostatic

separation and two fraction namely conductivity and non conductivity minerals are

separated out.

Magnetic separation:

There are two types of magnetic separators are used. They are induced roll magnetic

separation and exolons.

Low intensity magnetic separator

Ilmenite being highly magnetic and is subjected to low intensity magnetic separator


Principles used in

mineral

separation

Conductivity separation

Magnetic separation

Gravity separation

Froth floatation

28


High intensity magnetic separator

Non magnetic fraction, which is contain Rutile and Leucoxene. Rutile is subjected to high

intensity magnetic separator and Leucoxene is separated as magnetic fraction and Rutile

as non magnetic. The non conductivity fraction of electrostatic separation, which contain

Zircon, Monazite and Quartz is subjected to high intensity magnetic separation Monazite

is separated as magnetic separation factor

Mineral separation based on special gravity

It is mainly used to separate out heavy and light fraction of minerals. There are three

types of gravity separation

Spiral gravity separation

In this light fractions are thrown out aside and the heavies with high density are collected

down

Wet table gravity separation

It is a moving table of water that separators out the light and heavy fractions.

Floatex separation

This is a column type of gravity separator. The input is fed from the top and water with

high pressure and force is pumped from the other end thus the low density fractions are

separated aside and the heavier are collected down.

Floatation method

This uses some chemicals for this purpose such as sodium silicate and oleic acid, which is

used for the separation of Sillimanite.



Flow diagram of the process

IRMS-Induced roll magnetic separator

HIRMS-High intensity induced roll magnetic separator

FBD-Fluidized bed drier


Rotary dryer

Dry sand separation

Conducting Non conducting

IRMS

Mag Non Mag

HIRMS

Mag Non Mag

Non MagMag

HIRMS

Gravity separation

Leucoxene Rutile

Monazite

concentrate Tails

ZirconFlotation

Sillimanite

Ilmenite

Float

HUP

Tails

FBD

30


FINANCE DEPARTMENT

The department is headed by a senior manager at unit level. He is reporting to Gm at

Bombay through Chief General Manager Chavara. Finance accounting package is in

Oracle language has been implemented at finance and Accounts division. The main

function of this department is to get all receipt and make all transactions to prepare final

accounts. IREL annual report is publishing from Bombay gives only consolidated figures

of all units together. Normally no annual report is published at unit level.

The department structure as follows

Significance of accounting policies

1) Basis of accounting

The financial statements are prepared under historical cost convention and in accordance

with the generally accepted accounting principles on an accrual basis and comply with

accounting standards referred to in section 211(3C) of the companies Act,1956

2) Use of estimates


Senior Account officer

Sec officerSales

Sec officer Bills

Secofficer Establish ment

Sec officerE D P

Sec officer

Costing

Sec officerStores

Clerical Staff

Clerical Staff

Clerical Staff

Clerical Staff

Clerical Staff

Clerical Staff

31

Senior Manag

er


The presentation of financial statement requires estimates and assumptions to be made

that affect the reported amount of assets and liabilities on the date of financial statements

and the expenses during the reporting period. Differences between the actual results and

estimates are recognized in the period in which the results are known materialized.

3) Fixed assets

Fixed assets are stated at their historical cost lees accumulated depreciation thereon. The

cost of fixed assets comprises of the acquisition cost and any attributable cost of brining

the Assets to its working condition for its intended use. Subsidy/ Contribution received

for specific assets is reduced from the cost there of.

The cost of self constructed fixed assets comprises of the costs directly relating to the

specific assets and overheads consistently allocated at pre-determined percentage of direct

salaries and wages

In respect of assets discarded/ scrapped, the net book value as assessed by the salvage

committee, whichever is lower is retained in the discarded/scrapped assets; the loss/gain

with reference to the retained value is adjusted in the year of disposal. However , if any of

these assets is not disposed off with in a period of three years from the date on which the

same is discarded/ scrapped, the value retained is fully written off and charged to Profit

and loss account for they year in which period of three year expires.

Capital expenditure on assets not owned by the company is amortized over a period of

five years commencing from the year in which benefit accrues to the company

Borrowing costs that are attributable to the acquisition /construction of qualifying assets

are capitalized as part of the cost of such assets. A qualifying asset is one that takes

substantial period of time to get ready for its intended use. All other borrowing costs are

charged as to revenue.

Land held for mining includes cost of land, trees, buildings, shifting, charges, registration

charges, stamp duty etc less registration if any

Depreciation

a) Depreciation on fixed assets is provided for on straight line basis at the rates and in the

manner specified in the companies Act, 1956, expect for the following assets on the basis

of technical evaluation

-Slurry pumps @20%

-computers@25%

-The depreciation is continued to be charged till the net block becomes nil



b) In respect of assets added during the year, depreciation is charged pro-rata from the

date of addition

c) In respect of assets discarded/demolished/destroyed during the year, depreciation is

charged pro-rata up to the date of such discard/ demolition/ destruction

d) Assets costing Rs5000 or less individually are depreciated at 100% in the year of

addition

e) In respect of fixed assets whose cost has undergone a change due to change in duties

etc, depreciation is provided prospectively over the residual life of the asset.

f) Cost of leasehold land is amortized over the period of the lease.

The diminution due to mining in the value of land held for mining as ascertained by

technical assessment at the end of every financial year is charged as depreciation.

Investments

Long term investments are stated at cost with provision to recognize a decline other than

temporary in value.

Investments classified as current investments are carried in the financial statements at the

lower of cost and fair value determined on the basis of the category of the investment.

Valuation of inventories

a) Raw material and material in transit are valued at cost or net realizable value

which ever is lower.

b) Stores, spare parts and loose tools are valued at weighted average cost.

c) Inventory of work in progress, intermediate products for further processing and

finished products are valued at cost or net realizable value which ever is lower.

d) Off grade material and contaminated stock is valued at 50% of lower cost or

market value.

e) Stores & spares not moved for more than 3 years are written down by 95% of the

cost.

Pre project expenditure

Expenditure on feasibility studies, flow sheet development, presentation of project

report, on new / expansion projects under its own auspices and /or joint venture to the

extent not adjusted are grouped under ‘pre-project expenditure’ pending capitalization/

adjustment/ write off

Loans & Advances

The company has neither granted nor taken any loans , secured or unsecured to and from

companies , firms or other parties required to be listed in the in the company Act 1956.



PROFIT AFTER TAX THROUGH YEARS

Fig 2

Diagram Showing the EPS



HUMAN RESOURCE DEPARTEMENT

IREL Chavara takes place its highly motivated and trained human resource that has

maximized its performance and there by its highest business growth and profit. Morale of

employees remains facilitating smooth working of the company. Skill requirement related

to different disciplines are identified and training programs and workshops are conducted

to improve overall efficiency of the human resource.


HR department lead by General Manager and two deputy managers assisted him. The

security department and time office are working under the General Manager of HR

department. Four deputy officers and 14 clerical staffs are working under the deputy

managers.

People are the most important resources of an organization.

The main functions of HRM are:


Unit headUnit head

HOD (HRM)HOD

(HRM)

SH HRM ISH

HRM ISH

HRM IISH

HRM II

SHTrainin

g

SHTrainin

g

SHLegal

services

SHLegal

services

SHSecurit

y

SHSecurit

y

In charge (Forum)

In charge (Forum)

Subordinates

Subordinates

In charge (welfare)& (Time)

In charge (welfare)& (Time)

Subordinates

Subordinates

Subordinates

Subordinates

Subordinates

Subordinates

Subordinates

Subordinates

35


1. Administration

2. Industrial relation

3. Training and employees welfare

4. Time management

1. Administration: The administrative function of HR department include

Manpower planning

Recruitment policy

Performance appraisal

Salary and wage administration

Industrial discipline

Maintaining service book and personal files

Maintaining reservation register.

Manpower planning

Man power planning is important for any type of organization. It is the process which

determines how an organization should move from its current man power position to

its desired manpower position. For this purpose, the HR department at IRE collect

feed back from all department in order to identify their manpower requirements of

various department And then the HR department crosscheck whether there is any

overstaffing in any of the departments If these department have excess of staff, they

are transferred to those departments where there is a shortage.

The company considers the number of employee presently working as significantly

high. There is a problem that sometime the VRS can lead to scarcity to workers for

particular job. At IREL using the process of multitasking the employees are made fit

to work in other function also. By the VRS scheme more than 100 employees have

been sent out with in span of three year

Man power of the company: There are 569 employs in the company. Total officers are

92 and clerical staff 477. The numbers of contract worker are 1240.



Recruitment policy: Recruitment in Chavara plant is done through local employment

exchange for find out prospective workers. The office staffs and managers are

recruited by the head office through tests and interviews.

Recruitment criteria:

For the recruitment of candidates, the candidates should be above18 years of age. The

following steps are taken before the recruitment of employees. They are Govt. guide

line, the recruitment only through employment exchange, notification in internet, and

advertisement in newspaper should be needed. Application will be scrutinized with

the help of a selection committee and eligible candidates are called for an interview.

Selection: The steps followed in the selection process are

Inviting and receiving application

Screening the application

Selection test-the selection test of employees are include

Aptitude test

Personality test

Achievement test

Trade test

Appointment will be based on certain criteria’s like they are medically tested after

that induction training should be given.

After training for a period of one year or more they will be put as permanent

employees.

Performance appraisal: Appraisal is the evaluation of work quality or merit. In the

case of IRE performance appraisal is a systematic evaluation of employees by

superiors or others familiar with their performance.

The company following mainly two types of methods

1. Straight ranking method

Under this method men as a whole are compared from other men and

ranked on the basis of overall performance.

2. Grading method

Under this method certain categories of work such as excellent, very

good, average, poor, very poor are established and defined actual performance of each

employee then compared with the grade definitions and ranked.



To evaluating the performance of workers are present. Last grade employees that are

8th& 9th grade, their work performance have been observed by supervisors. But in

the case of executives MBO’s are observed their performance and efficiency.

In IRE performance appraisal is done on a yearly basis to assess the performance of

the employees. The appraisal is done by three persons.

1. Reporting officer

2. Reviewing officer

3. Evaluating officer

F5rstly, the employees themselves do a self appraisal and this is given to the reporting

officer and the person who has done self appraisal together identifies the key result areas

and weight age is allotted to each one of them. This is usually done at the beginning of

the year. The reporting officer checks whether the key result areas set where met by the

appraisal or if there any deviation from it. And this is to be sent to reviewing officer and

then evaluating officer. Various other factors such as the appraisal’s managerial skills like

job knowledge, interpersonal skills are also included and guided, and that is allotted in the

appraisal and there promotion is based solely seniority.

Promotion

In IREL promotion is given seniority based or based on experience. Promotion is a

transfer of an employee to a job that pay more money or that enjoys some preferred

status. Sometimes the company is considering the length of the service, education,

training courses completed, previous work history etc. Sometimes the company is also

considering ability, hard work, co-operations, honesty etc.

Conditions for getting promotion:-

1. Average leave should not exist more than 15 days

2. Any Discipline Actions Should Not Be Taken During the Service Period

3. Should not applied for job in any other organization

These are conditions for getting promotion

Industrial discipline:

Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is

on receiving a complaint about a particular employee, explanation is asked. Employee

will give an explanation before 15 days. If the explanation is not satisfied he will be given

a charge sheet and will also conduct a domestic enquiry. For this purpose an enquiry

officer is placed. After conducting the enquiry the report should be sent to the disciplinary

committee, and if necessary, certain punishment may also give.



Grievances handling

There is a grievance cell in this company. Any employee can bring their grievance and

complaints here. These grievances are discussed with top authorities and effective

measures are taken.

Transfer policies

Transfer is the movement of an employee from one job to another without involving any

substantial change in his duties, responsibilities. The company is following 4 methods

a) Production transfer:

When a particular department or job is faced with the pressure of work, its strength may

supplement through from other departments. Such transfers are generally made where are

department is overstaff and other is short of manpower.

b) Replacement transfer:

A replacement transfer is the transfer of a senior employee to replace with a junior

employee or new one

c) Shift transfer:

When units in shifts, employees are transferred from one shift t o another on similar job.

d) Department transfer:

Transfer from one department to another department with in the plant or with in the

organization.

Industrial Relation

Most of the disputes will be settled by the company and unions. If it is not cleared, they

can approach to the government.

The trade unions active at IRE are;

1) United Trade Union Congress (UTUC).

2) Indian National Trade Union Congress (INTUC).

3) All India Trade Union Congress (AITUC).

4) Travancore Minerals Workers Unions (UTUC (B)).

5) Indian Employees Rare Earth Federation (CITU).

6) Indian Rare Earth Mazdoor (BSM).

These are the recognized unions. There are some criteria for the reorganization of a

union; the union will have 15% of employees as their members. Also some participative



forum is present, they are plants committee, Safety committee, &House building

committee. These committees will have the equal participation.

Training and development

“Training is the act of increasing the knowledge and skill of an employee for during a

particular job”. IRE adopted various techniques of training for increasing the mass

productivity. The training program is restructured regularly in IRE. The objective of

training and development in IRE

Increase the efficiency

Increase the morale of people

Reduce the absenteeism

Procedures for training

1. Identify the training needs. The company identifies the training needs through 3 ways

a. Organization analysis

b. Task analysis

c. Man analysis

2. Executives themselves will discuss the training needs.

3. Charting out the training plan for a period

4. Based on feed back individual training is given.

Training methods

IRE has mainly four types of training methods. In house training, External training,

Vocational training and First aid training. The training method can be grouped on the

basis of level of personnel in the organization.

In house training: Other wise known as on the job training. In this method expert from

outside, come to the organization and give training.

External training: Also known as off the job training. The training is given out side of the

organization.

Vocational training; At least 0% of the employees should be trained every year.

First aid training; 30 people in one batch and give them training.

In house and external training



Employees’ welfare:

Two types of employees’ welfare are present in IREL. They are statutory welfare and non

statutory welfare. Grativity, P.F, Pension, canteen, medical allowances are including in

the statutory welfare. Festival allowance, LTC, Recreation, Tour facilities are includes in

the non statutory welfare. Also the IREL gives some kind of allowances. They are

Shift allowance: for employees working in shifts expect general shifts will get an

allowance as follows

1 st shift (8 am to 4 pm) =10/-perday

2nd (4 pm to 12 pm) =15/-perday

3rd shift (12 pm to 8 am) =25/-per day

Hard shift allowance

Since the plant handles sand for its production, it creates a dust in the atmosphere

considering this hard ship in work every employee of Chavara plant gets 135/- per month

as hard ship allowance

Uniform allowance

Every employee is provided with two pairs of uniform in every year. Rs100/-per month

as washing allowance is granted for all employees.

Transportation allowance

Every Employees (except officers) get Rs.700/- per month as conveyance allowance.

Officers will get minimum Rs.1000/- per month as car allowances

Canteen

A round the clock canteen is provided for the employees. Company will charge Rs. 4/ per

day from each employee. The canteen is under the control of the company.

Attendance bonus

To increase attendance in the company gives annual bonus of 12 days wages for every

employee who have minimum 268 day presence

Production incentives

Every employee gets an amount of Rs. 525/-per year as production incentives from the

profit.

Leave facilities available in IRE

Casual leave -15/year



Sick leave - 10/year (worker)

-10 full or 20halfdays/year (officer)

Earned leave -30 days/year (It can be max of 240 days)

Surrender leave-Each employee can surrender max 90 days/year or 75% of earned leave.

Other benefits

750ml milk/day

4 pears soap/month

One turkey or towel/year

Shoes (1pair)/year

One umbrella/ year

One raincoat/2 year

House loans up to 3.5 lakhs

Medical facilities etc

Educational allowance to workers children

Festival allowance.

Group insurance scheme.

Holiday facility.

Leave travel concession (LTC).



Time office

There is a full fledged time office headed by Dy. administrative officer. It follows a

punch card system. Different allowances for employees are given and it is mainly depend

on attendance. It is providing according to the report from the time office. The Time

office is working under the HRM department. The main function of this department is to

maintain attendance records, leave and service records etc. There is an e-form called

Muster which relates with the attendance. The various allowances to the employees like

shift allowance, overtime allowance, attendance bonus all these records are maintained by

the time office department. Also yearly attendance bonus is given to the employees.

Attendance of 268 days per year -12 day’s salary

Attendance of 262 days per year-10 day’s salary

Attendance of 243 days per year-7 day’s salary

The structure of time office as follows

For recording attendance punching system followed here. The attendance register usually

keep in time office. The time office collects attendance from concerned authority also.

And match with the punching system and avoid swapping. Time office has three centers

for punching in convenience of employees. In mining area and dredging plant also keep

mechanical punching machine. For the payment of salaries the time office is sending the

records to the finance department. If the finance department asks for any clarification they

will do it.


GENERAL MANAGER

Dy. administrative officer

Senior Assistant

Assistant Clerk

Attender

43


PURCHASE DEPARTMENT

The main function of department is procurement of materials at competitive price. All

items including real materials other than raw sand are purchased by this department. Inn

IRE purchase department has a prime importance

Formalities for placing an order

1. Organization of an indent

2. Tender enquiry

3. Opening the tender at the due date

4. make comparative statement

5. send it for technical evaluation

6. selection of the best one

7. if an negotiation needed it is done with party

8. Obtaining approval

9. place the order

10. Follow up


DGM

Senior Manager

Dy. Purchase Officer

Clerical Staff

Work Force

44


Formalities of purchase

1. Float inquiry to right source

2. scrutinize the quotations

3. Obtaining the financial approval

4. Release an order

5. Flow up for times requirement

6. Receipt at the store

7. Assistance to give payment in time.



STORES AND DESPATCH DEPARTMENT

The stores department act as a store and supply chain, keeping inventory of the product

produced on one hand and supplying requisite raw materials to the manifold department

on the other hand.

All the items in IRE are properly stored by this function area, including finished product

inventory. It stores furnace oil, machine parts, office equipments and stationary etc.

The department structure as follows.

Stores fall under two categories

Capital items

Consumable items

Capital items, which give return for long term. Revenue items or a consumable item

means that which are consumable only for a short period.

Procurement of items of capital nature is to be made only after the approval by the

competent authority duly verified by internal auditors with prior conclusion in the capital

budget

Stores action is responsible for arranging procurement of all items or purchase

requisitions shall from the basis for arranging procurement or other departments,

complete in all respects and duly approved by the controlling authority. Stores are


Deputy General Manager

Manager (stores)

Store officer Store officer

Clerical StaffClerical Staff

WorkersWorkers

46


purchased indigenously and from foreign suppliers through the adoption of competitive

tendering. Tendering system is adopted it secure the most competitive tendering the most

competitive rates and eliminate chance of favour.

The worth of production in the plant is currently between 6-7 crores. Once in every three

months inventory statistics is prepared and send to the head office in Mumbai. Stores

follow Bin card and Cardex system. This department has three major functions as follows

Receipt: The consignment items are properly verified with the receipts and requested the

particular departments to made inspection on each items

Storage: The received items are stored in proper locations and preserve them until the

issue. Each item has its own Bin card .The quantity received, material issued, total

remaining are noted in the Bin cards.

Issue: The issue made in first in first out method. After the receipt of the material internal

note from the department, the issues are made and same is recorded in the bin card

Inventory Control

Under the stores department the inventory control function is done. If excess stock is

obtained, it is properly informed to the marketing department to promote sales and if any

shortage obtained it is properly informed to production department to increase the

production. Usually ABC inventory control method is adopted in IRE Chavara for control

of inventories. The principal types of inventories are

Raw material and supply

Goods in progress that is work in progress

Finished good

For reduction of inventories four steps are taken in the stores and despatch department.

They are computerization, Codification, standardization, and value addition. All the

process in stores departments are computerized and Inventory management software is

used for this purpose. Coding is given to all inventories. For this, alpha numerical coding

is used. Material coding is help to realize what kind of inventories are stored. And

location coding is help to find out where it is stored. By the use of standardization

physical verification of inventories are to be done and to be check whether the invoice

number and purchase order are equal.



Despatch section

Despatch section controls the transportation of the finished products to the out side of the

company. When a customer made a complete settlement of money for the purchasing of a

particular product from the company the marketing department placed a delivery order to

the despatch department. The despatch department then prepares an invoice and t gave a

copy to the customer. This d4eepartment also prepares gate pass and state Govt;

declaration sheet.



QUALITY CONTROL DEPARTMENT

One of the quality control departments is to ensure quality products according to

customer requirement. They harness beach sands in environmentally responsible manner

to produce minerals and innovative value added products, which are used to make novel

products required by customers.

Secondly they are responsible for maintaining consistent quality of products to the

satisfaction of the customers through quality management system implementation. They

also aim at further improvement of product, technology or process. The quality control

department is also responsible for maintaining consistency in quality of raw material

during the processing, intermediate, and final product stages. They al make use of

chemical and mineralogical testing methods in each stage.

In addition to these functions this department also conducts research and development

activities to support flow sheet development works and for solutions to process related

problems.

IREL Chavara got ISO 9001:2000 certifications for quality management system

established for mining, manufacturing and marketing of mineral products for the

certification body of TUV management service: Munich



SAFETY AND ENVIRONMENT DEPARTMENT

This department looks after the safety issues of the manpower. This team is lead by

Manager (safety and environment). He is assisted by Dy. Manager (Safety and

environment) .There are staff to assist these officers

This department provides personnel protecting equipments like safety shoes, gun boots,

helmet, goggles, mask, air muffs etc to workers from time to time. This department

conducts mines safety week during August- September month in every year. There will

be competition in safety slogan, safety song, safety speech etc. At induction level every

employee gets an intense training in safety issues. Under safety department there is a

committee “accident inspection committee”, to face unexpected accidents IRE has a

safety and environmental protection committee consists of unit head as chairman and all

department /section heads as members, employees union are also participating in the

committee. This committee is meeting in every month to evaluate safety measures and

forms new policies if necessary.

Indian Rare Earth Limited, Chavara employs a state of art safety program to prevent

accidents in the plant. The safety programs are responsible for

1) Displaying safety advertisement boards which help to create safety awareness among

the workers

2) The safety committee is responsible for safety. An inspection conducted on a regular

basis say daily, weekly and monthly. In addition to this a yearly inspection is conducted

by internal and external experts.

3) This department is responsible for providing safety training and retraining to regular

employees. They also provide instruction training for fresher and external expert training

to all engineers

4) Safety committee also conducts monthly performance appraisal programs of their

activities.

5) This department also has a special wing for accident investigation and reporting and

accident prevention programs



MAINTENANCE AND PROJECT DEPARTMENT

MAINTENANCE DEPARTMENT

This department stands for the maintenance of machineries in plants. This

department is taking place daily inspection of the equipments; thereby they are able to

understand the efficiency of the machine by looking into the performance of the

machines. Sometimes the maintenance will go for 7days to 15 days.

TYPES OF MAINTENANCE:-

The maintenance department gives different types of maintenance to the machineries

like;

1) Electrical maintenance.

2) Mechanical maintenance.

3) Machine maintenance.

4) Preventive maintenance.

5) Break down maintenance.

6) Routine maintenance.

7) Block maintenance.



PROJECTS

Normally projects are carried out by the requirements of the production department.

Then the maintenance department makes a feasibility study. Then again the maintenance

department consults with the user department. Then the maintenance department

calculates return on investment (ROI) and pay back period (PBP). After that, these will

be sent to the head office at Mumbai. If the head office asks for any clarification, the

maintenance department will clarify it.

Departmental Structure as follows

PROCESS MODULE:-

REQUIREMENTS

1. Maintenance requirements identified through maintenance plan and schedule.

2. Breakdown/repair/modification/intimation received from other departments.


HOD Maintenance

SHHUP

SHAuto

SHMech

SH DWUP-I SH

DWUP-II

SHDWUP-III

SHMSP-I

SHMSP-II

SHD-SHIEF

SH ELE

CINST

SHELECHUP

SHELECMSP

52

Maintenance personnel

Unit HeadUnit Head


INPUT:-

1) Maintenance services from outsiders.

2) Spare parts produced through purchase and stores.

OUTPUT:-

1) Ensuring the availability of plant and equipment through preventive

maintenance.

2) Improvements through modification.

OBJECTIVE OBJECTIVE

TARGET FOR

2008-2009

SUPPORTING

THE SYSTEM

Improving the plant

availability

QMS

Min: 98 % QMS

Improvement of

power factor

Providing APFC panel at

DWUP-3

EMS

Premises from

lighting

Clamping of loose

tools

To provide at HUP,

Administration building,

Canteen building.

1) All Ilmenite

dump area.

2) Behind fire store room.

OHMS

EMS



SECURITY DEPARTMENT

Security of company assets and premises laid on the staff of security department It is lead

by security manager and he is assisted by 6 head security officers and 26 security guard

The security department gives security of company and also maintains the entry of

employees and visitors. According to ISO procedure they maintain the discipline of

employees like uniform visitors pass etc

Major threats

Two major threats they are present in IRE they are

1) sabotage

2) Theft .

Sabotage

If sabotage happens there will be a control room and it accessible at every time. In case of

emergency the system will automatically shut down and emergency alarm is there. And

all the employees are required to assemble in assembly points.

Theft

The boundary walls of the company were not clear. And also the neighboring people are

jobless people because they have a tendency to theft.


There are 32 securities in total. The security department gives security in mining area

also.7 securities are in Puthenthura, 7 securities in Vellanathuruthu and 16 in plants.


GM

Mgr (Security)

Head Security (6)

Security Guards (26)

54


MEDICAL DEPARTMENT

IREL Chavara has a full fledged dispensary in the company. It comprises of two doctors,

three pharmacist and three nurses. Structure of the department as follows

Every family member of the employee is eligible for free attendance and treatment in the

dispensary. Cases beyond the scope the dispensary will refer to major hospitals in kollam

and karunagapally (referred hospitals). The whole payment is such cases are done by the

company itself. Dispensary is working around the clock.


Dy. GM (Medical)

Senior manager (medical)

Pharmacist

Nurses

55


CIVIL DEPARTMENT

Civil department consists of Dy. Manager (civil), two Dy. Officer and the work force.

They frequently monitor company structures and maintain them properly. In case of new

projects, the basic infrastructure has to be erected by this department.

General Manager (Resource)

Dy. General Manager Resources)

Supervisors



FINDINGS AND ANALYSIS

Strength

1. Highly skilled manpower

2. Efficient management

3. Modernized plant having foreign and Indian technology

4. Cordial relation ship between management and unions

5. The setting up of IREL has resulted as in a considerable upliftment of the social

and economic conditions of the people living in surrounding areas.

6. In keeping with the environmental concerns Indian Rare Earth as adopted eco-

friendly the measures with in the surrounding.

Weakness

1. Situated in Kerala where labour charges are high and also political influence are

regarding labour issues.

2. Only a small part of total plant capacity is utilized

3. Due to monopoly of market sales promotional activities are very less

4. Poor distribution system

5. Company is a central government undertaking and as a result all major and minor

decisions have to be taken undergoing a lot of formalities and take more time.

Opportunities

The company has in the part associated with setting up of projects for the department of

Atomic Energy (DAE) viz the Uranium metal a plant at Bombay and the uranium

corporation of India at Jaduguda in Bihar state. In the near future it plans to under take

more such projects on behalf of DAE.

Threats

1. Possible changes in government policy

2. Increasing trend of transportation cost

3. Change in social and political scene to increase the price of raw material.



CONCLUSION

IREL is one among well performing companies in Kerala, engaged in the process of

processing rare earths products available among the coastal belts. IRE is reaching new

boundaries with its performance. IRE was incorporated on 18th August 1950 as a Pvt. ltd

company under the Indian company’s act of 1913 jointly owned by the govt: of India and

the govt: of Travancore Cochin. In 1951, IREL became a public sector undertaking and

two mineral separation plants, one at Manavalakurichi in Tamil Nadu (1967) and the

other at Chavara in Kerala state (1970) were set up.

The organization study at IRE was an unforgettable experience. The

organizational atmosphere prevailing at IRE is not that of a timid public sector unit. The

concern for the environment and social responsibility are worth studying. The study

helped in having a practical exposure to real practice in organization. The study provides

insight into the functioning and coordination of departments in an effective organization.



BIBLIOGRAPHY:-

IRE Brochure.

Departmental procedure manual (DPM) of IREL.

IRE Annual report.

www.irel.gov.in

www.wikipedia.org

U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2001

Kothari C. R. Research Methodology Methods and Techniques 2ND Edition New

Age International Publishers 2008

Chhabra T. N Human Resource Management – Concept and issues Fifth edition

Dhanpant Rai & Co(P) Ltd. 2008

Kotler Philip Marketing Management- A South Asian Perspective 12th Edition

Pearson Education 2007

Chase B Richard, Aquilano J Nicholas, Jacobs Robert F, Agarwal K Nithin

Operation Management For Competitive Advantage 11th Edition The McGraw-

Hill Publishing Company Ltd. 2006


http://www.irel.gov.in/


COMPARATIVE P&L ACCOUNT for the year ending31/03/07 31/03/2006 31/03/2005

Particulars Rs in LakhsI IncomeGross sales 36,053.22 30,649.50 29914.75less: excise duty 41.22 46.54 367.2NET SALES 36012.00 30602.96 29547.55

compensation for processing Thorium 706.54 775.46 0.00Increase/Decrease in Stock -2682.11 799.43 -1683.36Other Income 2305.48 1689.75 1709.34

36341.91 33867.60 29573.53

II ExpenditureMaterials Consumed 3433.31 2627.40 1642.53

Employee's Remuneration benefits 10378.1 9996.49 8001.32

Manufacturing & Other Expenses 11333.86 12031.56 10996.51Interest 17.77 20.22 57.85

Capital Expenditure not represented by assets owned by the Co. 12.40 12.40 12.40

26908.52 26163.36 22238.74III Profit Before extra ordinary items, prior adjustments & taxation 9433.39 7704.24 7334.79Extraordinary items & prior Period Adjustments -571.84 20.10 261.65PBT 10005.23 7684.14 6073.14

Provision For Tax for current year 4241.85 3710.15 3575.66Income Tax 0.00 412.43 807.68deferred Tax charges(credit) -749.95 -754.31 -710.93FBT 90.61 75.00 0.00PAT 6422.72 4240.85 2400.73Balance brought forward 17324.55 14776.36 12953.67IV PROFIT Available for appropriation 23747.27 19017.21 15354.40Appropriations:Proposed Dividend 1727.3 10445.96 506.94Tax on dividend 293.85 146.7 71.1Transfer to gen Reserve 500.00 500.00 0.00

Balance carried to Balance Sheet 21226.42 17324.55 14776.36TOTAL 23747.27 19017.21 15354.4

Comparative Balance sheet



31/03/ 07 31/07/07

1. Sources of funds:

a) Capital 8,636.50 8,636.50

b) Reserves & surplus 22,236.50 17834.63

30,873.00 26471.13

2.Loan funds

a) Secured loans 17.68 25.99

b) Unsecured loans 5,534.03 6,640.84

5,551.71 6.666.83

Total 36,424.71 33,137.96

Application of fund

1.Fixed asset

a) Gross block 37235.00 32865.67

b) Less depreciation 20,719.54 19,167.45

c) Net block 16,515.46 13698.22

d) Capital work in progress 4,897.03 2,503.80

e) Capital expenditure not represented by assets 12.40 24.80

f) Asset pending disposal 16.15 50.90

21,441.04 16,277.92

2.Investment 545.32

3.Deferred tax assets(net) 4237.34

4.Current assets, loans and advances

a. Current assets

b. Inventories 4829.13 7614.77

c. Sundry debtors 3169.17 2140.09

d. Cash and bank balance 2021.24 18645.01

e. Loans and advances 6239.96 6062.13

34439.50 34462.00

Less current liability and provisions

a. Current liabilities 4097.05 3974.69

b. Provisions 20258.23 21207.36

24,355.28 21,207.36

Net current asset 10084.22 13254.64

Miscellaneous expenditure 116.79 116.79

36,424.71 33,137.96



Unit Head


DGMMIN

SM m&p

GMFin

DGM(PS)

SMIA

DGMProd

GMR&MR

GMHR

Mgrproj

Mgrmain

Mgrmain

Mgrele

MgrS& D

Mgrpur

Mgrmis

MgrLS

MgrT&

Mgrprod

Mgrmai

Mgrmain

MgrprojMgrmecMgr

DM

R

DM

P

DM

P

DM

M

DM

M

DMPR

DM

S

DM

P

DM

M

DM

E

DM

P

DM

P

DM

M

DM

S

DM

P

DM

fI

Organization chart

Documents

Organization Study @ Indian Rare Earths Ltd