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THE ODISHA MINING CORPORATION LIMITED PRE-FEASIBILITY REPORT FOR PROPOSED EXPANSION OF MAHAPARBAT IRON ORE MINING PROJECT (Prepared as Part of Application for Terms of Reference for EIA Studies as per Notification No. J-11013/41/2006-IA.II(I) dated 30 th Dec., 2010) MECON LIMITED RANCHI – 834002 INDIA 11.S2.2015.EE2193 March, 2015

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Page 1: PRE-FEASIBILITY REPORTenvironmentclearance.nic.in/writereaddata/Online/TOR/0_0... · 2015. 4. 4. · THE ODISHA MINING CORPORATION LIMITED . PRE-FEASIBILITY REPORT FOR . PROPOSED

THE ODISHA MINING CORPORATION LIMITED

PRE-FEASIBILITY REPORT FOR

PROPOSED EXPANSION OF

MAHAPARBAT IRON ORE MINING PROJECT

(Prepared as Part of Application for Terms of Reference for EIA Studies as per Notification No. J-11013/41/2006-IA.II(I) dated 30th Dec.,

2010)

MECON LIMITED RANCHI – 834002

INDIA

11.S2.2015.EE2193 March, 2015

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Pre-Feasibility Report Expansion of Mahaparbat Iron Ore Mining Lease

CONTENTS

Chapter Nos.

Title Page Nos.

Executive Summary 1

1 Introduction 3

2 Introduction of the Project / Background Information 4

3 Project Description 7

4 Site Analysis 15

5 Planning Brief 17

6 Proposed Infrastructure 18

7 Resettlement and Rehabilitation Plan 20

8 Project Schedule and Cost Estimate 20

9 Analysis of Proposal (Final Recommendation) 21

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Pre-Feasibility Report Expansion of Mahaparbat Iron Ore Mining Lease

DRAWINGS

Draw ing No. Title

MEC/Q778/11/S2/T1 Mine lease area superimposed on toposheet

MEC/Q778/11/S2/T2 Geological Plan

MEC/Q778/11/S2/T3 Surface Plan

MEC/Q778/11/S2/T4 Conceptual Plan

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Pre-Feasibility Report Expansion of Mahaparbat Iron Ore Mining Lease

ABBREVIATIONS

AMSL Above Mean Sea Level

ANFO Ammonium Nitrate Fuel Oil mixture

BHJ Banded Hematite Jasper

BHQ Banded Hematite Quartz

CSR Corporate Social Responsibility

DGMS Directorate General of Mines Safety

EIA Environmental Impact Assessment

EMP Environmental Management Plan

Fe Iron

ha hectare

HEMM Heavy Earth Moving Machinery

HSD High Speed Diesel

IMD India Meteorological Department

l litre

hr hour

m3 Cubic Metres

ML Mining Lease

Mn Manganese

MoEF Ministry of Environment and Forests, Govt. Of India

Mt Million tonnes

t / yr Tonnes per year

OB Overburden

OMDC Orissa Mineral Development Company Limited

PF Protected Forest

R & R Rehabilitation and Resettlement

RF Reserved Forest

RINL Rashtriya Ispat Nigam Limited

t tonnes

ToR Terms of Reference

TPH Tonnes per hour

UNFC United Nations Framework Classification

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EXECUTIVE SUMMARY Mahaparbat Iron Ore Mining Lease is spread over an area of 68.0 ha in Joda block, Barbil tehsil, Champua sub-

division of Keonjhar district, Odisha. The mine is spread over Unchabali & Balda village. The lease deed has been executed with the State Government on 09.06.2008 for a period of 20 years.

Mahaparbat iron ore area originally consists of two blocks, separately located as Block-A and Block-B in villages

Unchabali and Balda over an area of 77 ha, was decided by the State Govt. to grant as a mining lease in favour of The Odisha Mining Corporation (OMC) Ltd for iron as well as manganese ore vide letter No.8921/SM dated 27.03.2000. Mining plan over 72 ha prepared under Rule 22 of MCR, 1960 was approved vide IBM’s letter No.BBS/KJ/Fe/MP-102 dated 20.06.2001. But Block-A (forest land including agricultural fields etc.) was entirely deleted and lease area was reduced from 77 ha to 68 ha and OMC was said to submit revised mining plan over 68 ha vide State Govt. letter No.5801/SM dated 28.06.2007. On the basis of IBM’s letter vide I/MP/GA(PS)/BBS-2006 dated 13.07.2007, modification of approved mining plan prepared under Rule 22(6) of MCR, 1960 was approved vide IBM’s letter No.MP/MAN/40-ORI/BHU/2007-08 dated 31.01.2008 and the lease deed over an area of 68 ha was executed with the State Govt. on 09.06.2008 for a period of 20 years. Subsequently, another Modification of approved mining plan prepared under Rule 10 of MCDR, 1988 was approved vide IBM’s letter No.MPM/OTFM/14-ORI/BHU/2011-12 dated 10.02.2012. Environmental Clearance from the Ministry of Environment, Forest and Climate Change (MoEFCC) was granted for production of 0.07 Mt/yr along with Consent to Establish from Odisha State Pollution Control Board and Surface Right over 64.810 ha (out of 68 ha excluding safety zone, nala / drain, danda / road etc.).

Keeping in view the growing rate of expenditures and being a Public Sector Unit (PSU) proposition for lower rate

of production @70,000 t/yr was not feasible. Therefore, mining could not be commenced in spite of available valid modification of approved mining plan and Environmental Clearance. However, core drilling continues as a part of mining operation. The 2nd modification of approved mining plan was approved to produce saleable iron ore @ 300,060 t/annum but mining could not be commenced due to want of EC. Moreover, OMC holds another 15 nos. of mining leases having iron ore in the State and most of the leases are not under operation due to want of Forest Clearance. Mahaparbat iron ore mine is located entirely in non-forest land and having reserve of 10.603 Mt (mineable iron ore) of +45% Fe.

Therefore, the present proposal is given to produce ROM iron ore @1Mt/yr to (a) meet the growing demand, (b)

utilize the resource, (c) cater the need of iron ore industries and (d) add the revenue. Loosening of the hard rock mass will be effected by the blasting of DTH drilled holes. Shovels of 2.5 m3 capacity

will be utilized for excavation & loading of blasted rocks. Dumpers, rear dump trucks of 21 t capacity will be used for transportation of ore and waste within lease area. There exist an old quarry in western part and two old trenches in northern part of lease area over 1.187 ha. Two quarries are proposed to be operated simultaneously.

Maximum rated production of 1.0 Mt/yr of iron ore at an anticipated stripping ratio of 1:0.26 m3:m3 has been

proposed. The ore from Mahaparbat mine will increase the supply of iron ore to India’s domestic steel manufacturers. The

project will also generate much needed employment. Majority of the people employed at the mine will be local residents. Economy of the area will get a boost and there will be overall growth of the region in terms of education, health, training and transport etc. The local people’s standard of living is also expected to improve.

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The salient features of the project include: Proposal To enhance the rated capacity of Mahaparbat Iron Ore Mine from 0.07 Mt/yr. to

1.0 Mt/yr. of Iron ore from existing opencast mine having present lease area of total 68.0 ha.

Location of Mine Villages: Unchabali & Balda under Joda block, Barbil tahasil, Champua sub-division of Keonjhar district, Odisha.

Latitude 21052’44.18” N to 21053’23.55” N Longitude 85025’05.48” E to 85025’37.03” E Land Use No forest land involved; waste land : 49.339 ha; Mining: 17.503 ha; Nala: 0.563

ha; Agricultural land: 0.534 (not to be utilized throughout the life of mine); Road: 0.061 ha

Total Mineable Reserves 10.603 million tonnes as on 1.4.2014 Life of Mine 11 years (@ 1 MTPA) Method of Mining Mechanized open cast mining Quarries Two quarries namely Q-1 and Q-2 will be developed simultaneously in

eastern and western parts of ML. Stripping Ratio (m3:m3) 1:0.26 (saleable Ore : Waste) Waste disposal Waste generation till the life of mine shall be 1,254,916 m3. Out of these,

207,400 m3 waste will be dumped over an area of 14,814 m2 (i.e. 1.482 ha) in 3 terraces of 10 m each. Remaining 1,047,516 m3 waste will be utilized for backfilling of mined out area since 6th year onwards over 104,752 m2 (i.e. 10.475 ha) at 10 m thick filling from one side of mine. Backfilling is proposed to be undertaken from 6th year onwards. Areas under excavation and OB dumps will be fully reclaimed/rehabilitated after cessation of mining operations.

Mineral Processing Sizing through a 500tph capacity dry crushing & screening unit. Mineral Transport 21t capacity dumpers will be used for transportation of ore and waste

within lease area. 16t capacity dumpers will be utilized for transportation of ore to the crushing & screening / ROM stacking site and waste to the dumping site. Saleable ore will be dispatched through trucks / railways depending upon the location of consuming industries.

Number of working days 300 days Fuel Consumption 3 Kl/day Explosive Consumption 17128 kg/yr Water Demand Peak water requirement: 60 m3/day,

Drinking & Domestic demand – 15 m3/day Industrial use – 45 m3/day.

Source of water Ground water for drinking and domestic use at the mine site. Surface water from nearby nala for industrial water usage.

Man Power A total of 157 persons (Management and supervisory personnel - 23 and workers -134).

Electricity Demand 0.5 MW Infrastructure Most of the ancillary services are already in place within OMC’s

adjoining lease BPJ. Some of the facilities as per the requirement viz. rest shelter, canteen, site office will be constructed once mining operations will commence

Proposed Investment Rs. 20 Crores Production Cost ~ Rs.650 per tonne at rated capacity CSR Budget Total Rs. 1.5 lakhs for year 2013–14 & Rs. 10 lakhs for year 2014-15

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1.0 INTRODUCTION This Pre-Feasibility report has been prepared as part of the application made to the Ministry of

Environment, Forest and Climate Change (MoEFCC) for seeking approval of Terms of Reference (ToR) of Environmental Impact Assessment and Environmental Management Plan (EIA/EMP) study for the proposed capacity expansion of Mahaparbat Iron Ore Mine of Odisha Mining Corporation Limited (OMC) from 0.07 Mt/yr to 1.0 Mt/yr spread over an area of 68 ha. The mining lease area is located in Joda block & Champua sub-division of Keonjhar district of Odisha. This report has been prepared as specified in Ministry of Environment, Forest and Climate Change (MoEFCC) Guideline No. J – 11013 / 41 / 2006 – IA.II(I) dated 30th Dec, 2010.

In pursuance of Government of India policy vide Environment (Protection) Act, 1986 new projects or

expansion of any existing project necessitates prior Environmental Clearance in accordance with the objectives of National Environmental Policy as approved by the Union Cabinet on 18th May, 2006 and MoEFCC EIA Notification dated 14.09.2006, by preparing a EIA / EMP report. As part of the process of Scoping for the EIA / EMP studies the project proponent has to submit a formal application to MoEFCC in the prescribed format (Form I) along with a Pre-Feasibility Report.

OMC has obtained Environmental Clearance from the MoEFCC for a production capacity of 70,000 t/yr

alongwith Consent to Establish from Odisha State Pollution Control Board and Surface Right over 64.810 ha (out of 68 ha excluding safety zone, nala / drain, danda / road etc.).

Since OMC is a Public Sector Unit, keeping in view of the operating expenditure in respect of

mechanization, employment, peripheral development, environmental concerns etc. lower rate of production was not feasible in spite of having valid modification of approved mining plan as well as Environmental Clearance. Then, second modification of approved mining plan was approved to produce saleable iron ore @ 300,060 t/yr but mining could not be commenced due to want of EC. Moreover, OMC holds another 15 nos. mining leases having iron ore in the State and most of the leases are not under operation due to want of Forest Clearance. The Mahaparbat iron ore mine is located entirely in non-forest land and having reserve of 10.603 Mt mineable iron ore of +45% Fe. Lessee being a State PSU is under tremendous pressure for supplying iron ore to the consuming industries that are not having captive mines. Therefore, proposal is given to produce ROM iron ore @1Mt/yr to (a) meet the growing demand, (b) utilize the resource, (c) cater the need of iron ore industries and (d) generate revenue.

In view of above, the Pre-Feasibility report has been prepared for seeking approval for Terms of

Reference for the EIA / EMP Studies for the proposed capacity expansion of OMC Mahaparbat Iron Ore Mine from Ministry of Environment, Forest and Climate Change, Govt. of India. The EIA/EMP report will also facilitate expansion and other related regulatory clearances as required, in addition to meeting environmental mitigation needs for Mahaparbat Iron Ore Mine.

This report contains information on the proposed capacity expansion without change in lease area of

the mine.

The report including this introduction chapter includes: Introduction of the Project / Background Information

Identification of the Project and the Project Proponent Brief Information of the Project Need for the Project and its Importance to the Country or Region Demand and Supply

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Import vs. Indigenous Production Export Possibilities Domestic / Export Market Employment Generation

Project Description Type of Project including Interlinked and Interdependent Project Location Details of Alternate Site Size and Magnitude of Operation Mine Description Raw Materials Resource Optimization / Recycling and Resource Site Services Wastes

Site Analysis Connectivity Land Form, Land Use, Ownership Land use Existing infrastructure Soil classification Climate Social infrastructure available

Planning Brief Planning Concept Land Use Planning Assessment of Infrastructure Demand Amenities / Facilities

Proposed infrastructure Resettlement and Rehabilitation Plan Project Schedule and Cost Estimate Analysis of Proposal (Final Recommendation)

ACKNOWLEDGEMENT MECON wishes to place on record its deep appreciation for the trust reposed in MECON by OMC and

for the active interest and help extended by OMC officials. 2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION : 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT: Odisha Mining Corporation Limited (OMC) was jointly established by the Union and State

Governments in 1956 as the first state Public Sector Unit (PSU) in mining sector in the country for exploration, exploitation and marketing of minerals. In the year 1962, OMC became wholly owned by the State Government. Odisha Mining Corporation Ltd. has been classified as a “Gold” Category State PSU.

OMC holds / operates 35 mining leases consisting of 11 iron ore leases, 3 manganese ore leases, 5

iron & manganese ore leases, 11 chromite leases, 1 limestone lease and 4 gemstone (semi-precious ruby / corundum) leases only in Odisha state. The major minerals mined by OMC are chrome, iron and manganese ore which cater to the requirement of mineral based industries such as steel, sponge iron,

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pig iron, ferro-manganese, ferro-chrome, etc. At the present rate, OMC is producing about 10 % of total iron ore production of the State and about 30 % of the total chrome ore production of the State.

2.2 BRIEF INFORMATION OF THE PROJECT: Mahaparbat Iron ore mining lease is spread over an area of 68.0 ha in Joda block, Barbil tehsil, Champua sub-

division of Keonjhar district, Odisha. The mine is spread over Unchabali & Balda village. The lease deed has been executed with the state Govt. on 09.06.2008 for a period of 20 years.

Mahaparbat iron ore area originally consists of two blocks, separately located as Block-A and Block-B in villages

Unchabali and Balda over an area of 77 ha, was decided by the State Govt. to grant as a mining lease in favour of The Odisha Mining Corporation (OMC) Ltd for iron as well as manganese ore vide letter No.8921/SM dated 27.03.2000. Mining plan over 72 ha prepared under Rule 22 of MCR, 1960 was approved vide IBM’s letter No.BBS/KJ/Fe/MP-102 dated 20.06.2001. But Block-A (forest land including agricultural fields etc.) was entirely deleted and lease area was reduced from 77 ha to 68 ha and OMC was said to submit revised mining plan over 68 ha vide State Govt. letter No.5801/SM dated 28.06.2007. On the basis of IBM’s letter vide I/MP/GA(PS)/BBS-2006 dated 13.07.2007, modification of approved mining plan prepared under Rule 22(6) of MCR, 1960 was approved vide IBM’s letter No.MP/MAN/40-ORI/BHU/2007-08 dated 31.01.2008 and the lease deed over an area of 68 ha was executed with the State Govt. on 09.06.2008 for a period of 20 years. Subsequently, another Modification of approved mining plan prepared under Rule 10 of MCDR, 1988 was approved vide IBM’s letter No.MPM/OTFM/14-ORI/BHU/2011-12 dated 10.02.2012. Environmental Clearance from the Ministry of Environment, Forest and Climate Change (MoEFCC) was granted for production of 0.07 Mt/yr along with Consent to Establish from Odisha State Pollution Control Board and Surface Right over 64.810 ha (out of 68 ha excluding safety zone, nala / drain, danda / road etc.).

Keeping in view the growing rate of expenditures and being a Public Sector Unit (PSU) proposition for lower rate of production @70,000 t/yr was not feasible. Therefore, mining could not be commenced in spite of available valid modification of approved mining plan and environmental clearance. However, core drilling continues as a part of mining operation. The 2nd modification of approved mining plan was approved to produce saleable iron ore @ 300,060 t/yr but mining could not be commenced due to want of EC. Moreover, OMC holds another 15 nos. mining leases having iron ore in the State and most of the leases are not under operation due to want of Forest Clearance. Mahaparbat iron ore mine is located entirely in non-forest land and having reserve of 10.603 Mt (mineable iron ore) of +45% Fe.

Therefore, the present proposal is given to produce ROM iron ore @1Mt/yr to (a) meet the growing demand, (b) utilize the resource, (c) cater the need of iron ore industries and (d) add the revenue.

2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY OR REGION : OMC being a State Public Sector Unit is under tremendous pressure for supplying iron ore to the consuming

industries that are not having captive mines. The mine is designed to produce saleable lumps ore [(+)5 to (-)18 mm and (+)18 to (-)40mm] size fraction and fines [(-)5mm size fraction] having 62-64% Fe. OMC is in the process of signing long term agreements with a number of large integrated steel plants and sponge iron plants for supply of calibrated iron ore from its mines.

Propose capacity expansion of Mahaparbat Mine will have the following benefits:

Increase the supply of iron for India’s domestic steel producers. It will increase revenue generation of the District / State. The mine will generate additional employment, both direct and indirect which will lead to economic

growth.

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OMC shall provide, school buildings, bus shelters, medical facilities and other amenities to local villages under the company’s CSR programme.

The increased Iron ore production will boost the economy. Thereby providing growth and development to the country.

2.4 DEMAND AND SUPPLY GAP :

India’s domestic steel production capacity is ~83 Mt/yr of which 41 Mt/yr is produced by integrated steel plants and ~18 Mt/yr is produced through the DRI-EAF route. Since it takes ~1.6 t of iron ore to produce 1 t of steel, India’s demand for iron ore is ~94.4 Mt/yr. India is one of the major producers and exporters of high grade iron ore. In 2013 - 14, India’s iron ore production was 152.06 Mt. The major iron ore producing states are Odisha, Jharkhand, Chhattisgarh, Karnataka and Goa. India is world’s 3rd largest iron ore exporter after Australia and Brazil. India’s iron ore exports were 15.13 Mt (~9.95%) in 2013–14. All major steel producers in India are implementing their growth plans to enhance hot metal production capacity. The iron ore requirement is expected to increase to about 206 Mt/yr by 2016 – 17 and 500 Mt/yr by 2025. In order to meet enhanced requirement of iron ore, all iron ore producers are taking necessary action to expand their existing mines. Iron ore production capacity will be enhanced to meet the expanded requirement in the next 3-4 years time.

2.5 IMPORT VS INDIGENOUS PRODUCTION :

India produces a surplus of iron ore. In 2013-14, India’s iron ore production was 152.06 Mt of which 15.13 Mt (i.e. about 9.95%) was exported.

2.6 EXPORT POSSIBILITIES :

Iron ore produced from this project will be exclusively consumed in the domestic steel industry. There is no proposal for export of iron ore from this project.

2.7 DOMESTIC / EXPORT MARKET:

The iron ore are used in the iron & steel industry. They are basic raw materials required for manufacturing of iron and steel. India is one of the major producers of iron ore, most of which is consumed domestically. A minor proportion (~13.5% in 2012 – 13) is exported.

2.8 EMPLOYMENT GENERATION :

A total of 157 persons (Management and supervisory personnel - 23 and workers -134) will be employed in the mine. Management and supervisory personnel will be 23 numbers. Total personnel under employment will be 134 + 23 = 157 numbers. Categories break-up of the employment are given below:

Highly Skilled (Management & Supervisory) Persons

Sl No. Post Qualification Nos. 1 Mines Manager First Class Mines Manager’s Certificate of Competency 1 2 Asst. Mines manager First/Second Class Mines Manager’s Certificate of Competency 2

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3 Mining Engineer Degree in Mining Engineering with minimum 10 years of experience as per MCDR, 1988

1

4 Mechanical Engineer Degree in Mechanical Engineering 1 5 Electrical Engineer Degree in Electrical Engineering 1 6 Geologist M. Sc. in Geology with minimum 10 years of experience as per MCDR, 1988 1 7 Mining Foreman Foreman’s Certificate of Competency 4 8 Mining Mate Mate cum-blaster’s

Certificate of Competency 6

9 Surveyor Surveyor’s Certificate of Competency 1 10 Personnel Officer Degree in Personnel Management and Labour lows 1 11 Supervisor & Office

Staff Degree in Arts/Science/Commerce 4

Total --- --- 23

Total Manpower (category-wise)

Type Percentage Numbers Highly Skilled 13% 23 Skilled 25% 38 Semi-Skilled 35% 54 Un-skilled 27% 42 Total 100% 157

3.0 PROJECT DESCRIPTION

Mahaparbat Iron Ore Mining Lease is spread over an area of 68.0 ha in Joda block, Barbil tehsil, Champua sub-division of Keonjhar district, Odisha. The mine is spread over Unchabali & Balda village. Govt. of Odhisa had decided to grant a mining lease to Odisha Mining Corporation Ltd (OMC) for Mahaparbat Iron Ore Mining Lease consisting of two blocks separately viz. Block-A and Block-B spread over an area of 77 ha in villages Unchabali and Balda for iron as well as manganese ore. Consequently, Mining plan for 72 ha was prepared. Subsequently, Block-A (forest land including agricultural fields etc.) was entirely removed and lease area was reduced from 77 ha to 68 ha and OMC was said to submit revised mining plan over 68 ha by State Govt. Modification of Approved Mining Plan prepared and was approved. The lease deed over an area of 68 hectares was executed with the State Govt. on 09.06.2008 for a period of 20 years. Subsequently, another Modification of Approved Mining Plan prepared was approved by IBM. Scheme of Mining was prepared for a period of five (5) years from 2013-14 to 2017-18. Out of these, commencement of mining operation is not expected in 2014-15. The deposit has total of 10.603 Mt mineable iron ore (+45% Fe) which has formed the basis for production of iron ore @1 MTPA. OMC has obtained Environmental Clearance from the Ministry of Environment, Forest and Climate Change for 0.07 MTPA, Consent to Establish from Odisha State Pollution Control Board and Surface Right over 64.810 hectares. Keeping in view the growing rate of expenditures, proposition for lower rate of production @ 0.07 MTPA was not feasible. Therefore, mining could not be commenced in spite of available valid modification of approved mining plan and environmental clearance. Therefore, second modification of approved mining plan was approved to produce saleable iron ore @ 300,060 t/yr but mining could not be commenced due to want of EC. Scheme of Mining has been prepared for a period of five (5) years from 2013-14 to 2017-18. Out of these, 2013-14 & 2014-15 is completed and commencement of mining operation has not started. Therefore, development and production planning etc. is prepared for a period of 3 years from 2015-16 to 2017-18 whereas exploration proposal is given for 4 years from 2014-15 to 2017-18.

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The mine will be developed and production starts after getting all the statutory clearances. The iron ore mined from the ML area will be processed and will be transported to the prospective buyers.

3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTER-DEPENDENT PROJECT

The proposed project falls under Category “A”, as per EIA notification – 2006, Amendment Nov.-2009 & April -2011 of the Ministry of Environment, Forest and Climate Change, New Delhi. This is a self-dependent project.

3.2 LOCATION:

Mahaparbat mining lease is located in villages Unchabali & Balda under Joda block, Barbil tahasil, Champua sub-division of Keonjhar district, Odisha. The mining lease area falls under Survey of India toposheet No. 73G/5 and is located within the latitudes 21052’44.18” to 21053’23.55” N and longitudes 85025’05.48” to 85025’37.03” E. The location of project is shown in Drg. No. MEC/Q778/11/S2/T1

3.3 DETAILS OF ALTERNATE SITE:

Since the proposed project envisages capacity expansion of an existing mine, possibility of alternate site is out of question.

3.4 SIZE AND MAGNITUDE OF OPERATION:

The mine lease is spread over 68.0 ha. The mine has earlier EC for rated capacity of 0.07 Mt/yr which has been proposed to increase upto 1.0 Mt/yr.The mine is not under operation since the last date of extension of lease.

3.5 MINE DESCRIPTION 3.5.1 Geology:

Regional Geology:

Iron ore deposit of the M.L area forms a apart of the eastern limb of the Singhbhum-Keonjhar-Bonai belt, also known as the Jamda-Koira valley and is represented by a narrow NNE-SSW trending synclinorium of 60 km length and 25 km width. The precambrian horseshoe shaped belt is well known for its large reserves of iron and manganese ore. The general strike is north-east to north and dips are moderate to steep. The western limb of the synclinorium is slightly over turned at some places. The belt was first reported by Jones in 1934 and has been studied in detail by several eminent geo-scientists, since then. The major litho types are metamorphosed sandstone, lithic wacke mostly in the east, BIF and iron ore fragments. Shale, lavas, volcanic, pyroclastic tuffs, phyllite and Banded Iron Formation (BIF) including Banded Hematite Quartzite (BHQ) and the Kolhan Group of rocks are exposed. The Precambrian rocks of this region comprising of basic lava, tuffs, banded iron formation (BIF), shales, conglomerates and sandstones etc. were mapped for the first time by Jones (1934). The stratigraphic succession established by Jones has largely been modified later by Dunn (1940) based on detailed mapping in the northern parts of the belt. Dunn recognized a new group lying unconformably over the Iron Ore Group which he named as the “Kolhan Group”. The rock types of the area belonging to the Kolhan group lies to the north of the Noamundi in Bihar. The most acceptable litho-stratigraphic succession for the belt was proposed by Murthy and Acharaya (1975). They identified different depositional facies and proposed a more detailed stratigraphic succession. They also

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proposed a new name the “Kolhan Group” to the rocks of Bonai-Keonjhar belt. The stratigraphic succession suggested by Murthy and Acharya (1975) is as follows:

KOLHAN GROUP Sandstone, Conglomerate, Breccias ----------------------------Unconformity--------------------------------- Mixed Facies Basic Lava, tuffs and tuffites of volcanic

facies Iron, Manganese, Lenses of Iron formation, Chert, small dolomite patches of chemical facies. Minor lenses of sandy and silty shale of clastic facies.

Banded shale Banded shale member Formation Black shale member

Black shale – chert member KOIRA GROUP Banded Iron formation Finally banded Jaspilite Member

Coarsely banded jaspilite member Volcanic Formation Tuffaceous shale

Basic Lava Basal Sandstone Gritty Sandstone, Quartzite,

Conglomeratic at places with interbedded Lava at top

----------------------------Unconformity--------------------------------- Singhbhum Granite with enclaves of older meta-basic and meta-sedimentary rocks. Geological mapping by the OMC over the area from the surface exposure as well as bore holes loggings have helped to understand the geology to a considerable extent. The local geology interpreted from the above has been arranged as follows: • Lateritic Soil • BIF with Iron Ore • Ferruginous Shale

Lateritic Soil Due to weathering of rocks, presence of lateralization is a common feature affecting all the rock types. Laterite & Lateritic soil is observed on the surface as well as in the trenches which are found admixed with bouldery/float iron ore. Extensive laterite cappings are observed. These laterites are often rich in iron ore and termed as lateritic iron ore.

BIF with Iron Ore BHJ, a member of BIF, mixed with float iron ore is predominantly observed in the M.L area. It is an evenly laminated sedimentary rock within alternate layers of primary hematite and deep brown coloured chert with admixed dusty inclusions of hematite granules. BHJ is host rock of iron ore which strikes along N-S to NE-SW direction and dips at 450 due west.

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Hematite variety of iron ore occurs in the M.L. area. Based on physical characteristics like colour, compactness etc. the deposits have been mapped into float, insitu & conga/recemented iron ore and BHJ with iron ore. Grade of iron ore varies from 47.22% Fe to 67.77% Fe.

Ferruginous Shale It is exposed in south central valley part of the M.L area. It is light brown to dark brown in color, clayey to silty in nature and exhibits the bands with 1 to 2 cm thick lamina. It strikes along NNE-SSW to NE-SW and dips moderately towards west.

3.5.2 Mineral Reserves: The mineable reserves as on dated 01-04-2014 are as follows:

Reserves Category Reserve (Mt) Fe%

Proved 5.988 +58 0.630 +45-58

Probable 3.611 +58 0.374 +45-58

Total 10.603 Reserve & Grade as per United Nations Framework Classification, Geological Reserve (in Million Tonnes and as

on 1.04.2014) is Coded as follows:

Reserve/ Resources Type UNFC Code Quantity (Mt) Grade

Reserves Proved 111 5.988 +58% Fe 0.630 +45-58% Fe

Probable 122 3.611 +58% Fe

0.374 +45-58% Fe Total (a) --- --- 10.603 --- Remaining resources Feasibility 211 0.220 +58% Fe

0.036 +45-58% Fe Pre-feasibility 222 0.696 +58% Fe

0.077 +45-58% Fe Measured --- --- --- Indicated --- --- --- Inferred 333 0.114 +58% Fe

0.007 +45-58% Fe Reconnaissance --- --- ---

Total (b) --- --- 1.150 --- Total (a+b) --- --- 11.753 ---

Surface Geological Plan of the mining lease are enclosed as Drg. Nos. MEC/Q778/11/S2/T2. 3.5.3 Mining:

The Mahaparbat Iron Ore Mine is an open cast mine which will be worked for saleable iron ore @ 1 Mt/annum with the deployment of earthmoving machines on two shift basis. Opencast mechanized method of mining will be adopted on 8 hourly shift basis. Loosening of the hard rock mass will be effected by the DTH drills. Excavators of 2.5m3 capacity will be utilized for excavation & loading. 16 t capacity dumpers will be utilized for transportation of ore to the crushing & screening / ROM stacking site and waste to the dumping site.

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The rated production of saleable iron ore will be obtained in 5th year i.e. year 2017-18 and onwards @1,000,035 t / annum. Accordingly, capacity and number of machines are proposed to be deployed is shown in table below. Loosening of the hard rock mass will be effected by the blasting of DTH drilled holes. Iron ore deposit is mostly with friable ore & blue dust. About 30% of iron ore zone is hard which will be drilled by DTH drill and blasted. Height and width of the benches will be maintained at 6m and 12m respectively. Individual bench faces will be kept nearly vertical (800-850 angle with the horizontal) whereas the overall Quarry slope angle (the angle between the line joining the toe of bottom bench and the crest of the top bench with the horizontal) is proposed to be maintained 270 with the horizontal.

S. No. Purpose Name Capacity Proposed 1 Primary Drilling DTH / Wagon drills 100mm dia 1

Pneumatic compressor 180BHP/12.5Kg/cm2 2 2 Rock breaking Rock breaker --- 1 3 Excavation & loading Excavator 2.5 m3 2

Loader 1.5-3m3 2 4 Mineral processing Crushing / screening plant 500tph 1 5 Transporting Dumper 21 t 8 6 Leveling & road making Dozer --- 1 7 Environmental Protection &

industrial use Water Tanker 16 KL 1 Weigh Bridge 50 t 1 DG Set --- 2 Ambulance --- 1 Four wheelers --- 2

Mining of Different Quarries:

Mining lease is executed on 09.06.2008. After the execution, exploration has been done by way of core drilling and no mining has been carried out till date. As mining could not be conducted in plan period of last 5 years therefore Quarry-1 and Quarry-2 planned for development in last plan period is proposed again to operate in this current scheme period till exhaust. No development and production has been carried out in the year 2014-2015 due to want of some statutory clearances. During 2015, development will be done at two places namely Quarry-1 and Quarry-2. From the year 2016 onward benches of Quarry-1 and Quarry-2 will developed and will be further extended laterally to achieve the rated capacity of saleable iron ore @ 1 MTPA by the end of year 2017-18. Two quarries are proposed to be operated simultaneously because of the following reasons: • Production of 1 MTPA saleable ore will be safe and scientifically feasible by operating two quarries in respect of the movement of dumpers, weighing, excavation & loading and maneuverability of the machines. • Quarries are proposed at the two extreme ends of the deposit and crusher / Weigh Bridge are located centrally to avoid traffic jam and any untoward conditions. • As far as conservation of minerals is concerned, selective mining is avoided in Quarry-1 where ore to waste ratio is 1: 0.2 and therefore, Quarry-2 is proposed (in addition to Quarry-1) where ore to waste ratio is 1: 0.4.

Due to illegal mining, old quarry / trenches and waste dump are developed encroaching the safety zone. Lessee has lodged FIR at the police station and also informed the Directorate of Mines, regarding the illegal mining. Illegal mining was stopped just after the lodging of the FIR at the police station. Therefore, no further action was necessitated by the Lessee. The said quarry / trenches were developed prior to the execution of mining lease area which is indicated in the land schedule of lease deed where 43.25 acres or 17.503 ha is mentioned as “Khani” means quarry. There exist an old quarry in western part and two (2) old trenches in northern part of lease area over 1.187 ha. Saleable ore is processed in to different sizes. Sub-grade ore is not saleable at present due to its grade. Therefore, these ores are proposed to be stacked for use in future. Waste will be dumped and rehabilitated. The production schedule will be as per the following table:

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Year Name of Quarry

Total excavation (m3)

OB/ Waste (t)

Saleable Ore Zone Sub-grade Ore zone ROM Ore (+45% Fe) (t)

Total Mineral Rejects (t)

Saleable Ore (+58% Fe) (t)

Mineral Rejects (t)

Sub-grade Ore (+45%-58% Fe) (t)

Mineral Rejects (t)

Col.5+6+7+8 Col.6+8

1 2 3 4 5 6 7 8 9 10 3rd (2015-16)

Quarry-1 174050 45,430 294,594 103,506 41,359 14,531 453,990 118,037 Quarry-2 65300 35,860 101,787 35,763 6,294 2,211 146,055 37,974 Sub-total 239,350 81,290 396,381 139,269 47,653 16,742 600,045 156,011

4th (2016-17)

Quarry-1 257700 109,230 421,023 147,927 36,764 12,917 618,631 160,844 Quarry-2 83350 49,170 123,765 43,485 10,490 3,685 181,425 47,170 Sub-total 341,050 158,400 544,788 191,412 47,254 16,602 800,056 208,014

5th (2017-18)

Quarry-1 337250 160,710 556,221 195,429 27,273 9,582 788,505 205,011 Quarry-2 96800 55,880 138,750 48,750 17,782 6,248 211,530 54,998 Sub-total 434,050 216,590 694,971 244,179 45,055 15,830 1,000,035 260,009

Total --- 1,014,450 456,280 1,636,140 574,860 139,962 49,174 2,400,136 624,034

The existing surface plan of the lease is enclosed as Drg. No. MEC/Q778/11/S2/T3. The surface plan at the end of work is shown as Drg. No. MEC/Q778/11/S2/T4.

3.5.4 Mineral Processing:

Dry crushing & screening process will be adopted in the lease area. Sub-grade ore will be stacked for sale in future before or after blending with upper grade ores depending upon the market demand. Due to dry processing there will be no generation of tailings. Dry processing plant in the M.L area will be consisting of crushing & screening of iron ore for sizing only. Adequacy of the proposed crushing & screening plants is justified as follows:

Description Crushing & Screening Plant Capacity 500 tph Working hours/shift 8 hours No. of shifts to be worked 2 Annual working days 300 Efficiency expected 65% R.O.M ore can be processed / annum 500 x 2 x 8 x 1 x 300 x 65%

= 1,560,000 t R.O.M ore to be processed / annum = 1,000,035 t

A crushing & screening unit of 500tph capacity will be operated to process 1.0 Mt ROM iron ore / annum.

3.5.5 Mineral Transport

Dumpers, rear dump trucks of 21 t capacity will be used for transportation of ore and waste within lease area. Sixteen (16) tonne capacity dumpers will be utilized for transportation of ore to the crushing & screening / ROM

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stacking site and waste to the dumping site. Saleable ore will be dispatched through trucks / train depending upon the location of consuming industries.

3.6 RAW MATERIALS

The only raw materials consumed in the project are fuel (HSD) and explosives. The fuel consumption in the mine operating at full capacity is estimated to be 3 kl/day. The explosives consumption is expected to be 17,128 kg/yr (powder factor of 17.51 t of iron ore per kg of explosives). Explosive will be either stored in the existing magazine or supply of explosive will be outsourced to external agency.

3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE

Some of the effluents from the mine’s canteens and rest-rooms will be utilised for irrigation of green belt. A water will be recycled and utilized for Green Belt Development & Drilling & Dust suppression using existing facilities before being distributed. OMC Ltd. has developed centralized work-shop, stores, medical unit at its BPJ lease for its mines in the Region also. Housing Colony for supporting mining activity at Mahaparbat and BPJ have been developed having all the amenities. These infrastructures will serve the requirements of Mahaparbat also.

3.8 SITE SERVICES

Lease area is accessible from Joda via jururhi through 18 km long road consisting of 17 km long metal and one (1) km long all weather road. The nearest railhead is at Banspani at a distance of 14 km from the lease area via Jururhi. Local market places are Jururhi (8 km). However, full fledged market facilities are available at Joda (18 km), Barbil (32 km) and Keonjhar (112 km), the district Head Quarter. Main power line passes through the western side adjacent BPJ iron ore mine of Lessee. Drinking water is available from the borewell of BPJ iron ore mine of OMC. Baitarani river water is used for non-domestic purpose. In addition to Health Centre of OMC nearby SGBK iron ore mine, medical facilities are also available from the Dispensary at Bamebari (2 km), TATA STEEL hospital at Bichhakhundi (22 km). Govt. hospital at Joda NAC area. Education up to 7th class is available at Guruda UGME School, and High school level at Bamebari and college level, at Joda. Postal and telephonic facilities are available at Bamebary, Jururhi, Banspani & Joda.

3.8.1 Water Requirement:

Drinking water will be supplied to the mine through water tankers. Ground water will be necessitated @6,000 liters / day for drinking and 15,000 liters / day for domestic use at the mine site. In addition to these, 45,000 liters nala water will be utilized for non-domestic purpose such as use of water for mine operation (washing of machines, wet drilling etc), water spraying for dust suppression / prevention and watering the plantation site for live & growth of the saplings. However, purpose-wise daily need of the surface as well as ground water is given in a table as follows:

Type of Use Purpose Average demand

(in liters) Peak demand

(in liters) Domestic Drinking 5,000 6,000

Bathing, Washing, Cooking etc. 10,000 15,000 Non-domestic Dust Suppression 15,000 30,000

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Plantation 2,000 5,000 Pit-head bath 7,000 10,000

Total --- 39,000 66,000 3.8.2 Power Requirement

The estimated peak power requirement for Mahaparbat iron Ore Mine is 0.5 MW. Main power line passing through the adjacent lease area of OMC will be utilized for mineral processing and electrification of office, staff quarters etc.

3.8.3 Amenities

The statutory buildings such as rest shed, first-aid centre etc will be constructed and maintained properly. Rest shed will serve the purpose to rest and take food and water during lunch time. Wholesome drinking water will be provided as per need and kept in earthen pots under the shed for keeping the water cool and clean. Safety equipment and blasting sheds will be provided to the workers as per need. A canteen will be provided to take tiffin & meals as per need of the mine people. Toilet will be made available in ML area for disposal of human excretes in a hygienic manner. For day to day mine operation, facilities to be provided for various activities are as follows:

Type of Work Facilities Mine working Repair, maintenance & purchase of machineries/vehicles/ equipments/accessories. Safety Measures

Provision of helmets, gloves, spades, spectacles.

Protection of Environment

Water sprinkling, plantation and construction of retaining wall etc.

Welfare Provision of rest shed, blasting shed, first aid facilities, wholesome drinking water & ambulance arrangement.

3.9.1 SUBGRADE

As per CCOM’s latest Circular No. 3/2010 dated 14.07.2010 regarding exploration, notified threshold value of hemataitic iron ore is 45% Fe while cut-off grade considered by the Lessee for sale is 58% Fe. Therefore, iron ore resources with +45%-58% Fe is considered as sub-economic or sub-grade ore and with +58% Fe is considered as economic ore. A total of 502,300m3 sub-grade ore will be generated during the conceptual period. An area of 1.728 hectares is earmarked to stack 51,838m3 sub-grade ore of scheme period temporarily. Sub-grade ore of scheme period as well as beyond will be sold in the indigenous market due to decrease of cut-off grade day by day because of technological improvement in beneficiation plant and metallurgical industry.

3.9.2 WASTES

Saleable ore to waste ratio is 1:0.26. Therefore, conceptual generation of waste will be 4,826,600m3 x 0.26 = 1,254,916 m3. Out of these, 207,400m3 waste will be dumped over an area of 14,814 m2 or 1.482 hectares in 3 terraces of 10m each. Remaining 1,254,916 – 207,400 = 1,047,516 m3 waste will be utilized for back-filling of mined out area since 6th year (2018-19 & onwards) over 104,752m2 or 10.475 hectares at 10m thick filling from one side of the mine.

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4.0 SITE ANALYSIS 4.1 CONNECTIVITY

There is no state or national highway or railway line within lease area. Village road of Balda village exists in the M.L area. Lease area is accessible from Joda via Jururhi through 18 km long road consisting of 17 km long metal and 1 km long all weather road. The nearest railhead is at Banspani at a distance of 14 Km from the lease area via Jururhi.

4.2 LAND FORM, LAND USE, OWNERSHIP

M.L area over 68 hectares falls in villages Unchabali & Balda under Joda block, Barbil tahasil, Champua sub-division of Keonjhar district, Odisha. As per the revenue department, villagewise break-up of the pre-operational land use pattern is as follows:

Sl No. Type of land Revenue head Area in hectares Village Unchaballi Village Balda Total

1 Waste land Parbat-II 49.339 --- 49.339 2 Mining area Khani --- 17.503 17.503 3 Drain Nala --- 0.563 0.563 4 Agricultural field Taila --- 0.534 0.534 5 Road Danda --- 0.061 0.061 Total --- --- 49.339 18.661 68.000

A total of 17.503 ha land has been scheduled by the revenue department as Khani i.e Mine. Out of these, only 0.563 ha is identified as mine / quarry during field survey. As per the land schedule, there is no forest land in the entire lease area over 68 ha and the entire lease area over 68 ha is Govt. owned.

4.3 TOPOGRAPHY

ML area is mainly dominated by the undulating hilly topography with two prominent flat topped mounds at its NW and SE part dissected by an inverted conical valley. The highest and lowest altitudes are at 608.5mRL and 525mRL. The elevation difference is 608.5–525 = 83.5m. Lease area slopes from north to south at 1:7. Area constitutes 72% hilly area, 26% mining area, 1% agricultural filed and 1% nala approximately. Forest growth is observed to be sparse in the places of insitu/conga iron ore exposures and dense in float / bouldery iron ore zone. There is no forest land in the lease area. The natural drainage system is distinct and dendritic due to hilly topography. Seasonal as well as perennial nala exist in the M.L. area. Surface run-off water flows along the natural slopes, valleys and finally in to the seasonal nalas in northern part to meet a perennial nala in southern part of the M.L area. The confluence point of this perennial nala and Baitarani river is located at a distance of 3 Km east of the area. Catchments of Baitarani River falls under 5 km radius of ML area and flows due north and then east to meet the Bay of Bengal. Water table is at 5m below ground level (at 525m above mean sea level) in rainy season and 8m (at RL522 aMSL) in dry season. Ground level is at 530 aMSL.

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4.4 LAND USE

There is no forest land in the lease area over 68 ha which is consisting of 49.339 ha waste land, 17.503 ha mining area, 0.563 ha drain, 0.534 ha agricultural land and 0.061 ha road as per revenue department (ref: Land schedule in lease deed). As on date, an area of 2.305 ha land has been utilized/degraded due to old quarry / dump / trench and road as per the following table: Sl. No. Type of land use As at present (ha) 1. Area under excavation 1.187 2. Storage for Topsoil --- 3. Overburden dump 0.683 4. Mineral storage --- 5. Infrastructure (rest shed office, quarters, hutting etc.) --- 6. Roads 0.480 7. Railways --- 8. Green belt (safety zone along lease boundary) --- 9. Tailing Pond --- 10. Effluent Treatment Plant --- 11. Mineral Separation Plant --- 12. Township area --- 13. Others Weigh bridge ---

Mineral rejects --- Total 2.350

There is no national park/wild life sanctuary/biosphere reserve/ tiger reserve/ elephant reserve in the core (M.L area) and buffer zone (5 km radius of the M.L area).

4.5 EXISTING INFRASTRUCTURE

A temporary site office with survey, mining, geology, administration etc. department will be constructed for the day to day work mine administration and management. All the statutory facilities such as crèche, canteen, first-aid centre, vocational training centre etc will be provided. To take care of the drinking water needs at different working areas, water tankers have been envisaged for the mine. The rest shed-cum-Lunch rooms will be constructed near quarry site as per Mines Rules-56. The servicing & repairing shop facilities will be constructed and include: Servicing & repairing space, Emergency spares room (store) with tools, Services station (with water treatment facilities), Mechanical (garage) Engineer – Cum- Record Room, Foreman’s office, Toilet. Township and guest house is located outside the lease in the BPJ village where mine’s personnel are accommodated.

4.6 SOIL CLASSIFICATION

The soil is lateritic, typical of the area. The thickness of the top soil varies from nil (due to outcropping of iron ore to maximum of 60 cm. There are no valuable trees in the mineable area of scheme period except shrubs & bushes. Therefore, impact on flora & fauna due to mining / excavation, dumping etc. will be negligible. Trees like Sal, Banyan and Mahul occurs sporadically. Endangered / extinct species of flora & fauna do not exist in the M.L area.

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4.7 CLIMATE

The M.L. area is located in tropical region where climate is characterized by very hot summers and cool winters. The climate in the area is generally cold in water between November and February and hot is summer between March and June. The monsoon sets in late June and continues upto the end of August. Temperature shows the variation between 40 C to 47.50 C. Predominant wind direction is South-West. Area remains calm for nearly 50% of the year. Average annual rainfall is 1400mm. The south-west monsoon lasts from mid June to mid September and the area receives more than 80% of the annual rainfall during the period.

4.8 SOCIAL INFRASTRUCTURE AVAILABLE:

Full fledged market facilities are available at Joda (18 km), Barbil (32 km) and Keonjhar (112 km), the District Head Quarter. Main power line passes through the western side adjacent BPJ iron ore mine of Lessee. Drinking water is available from the borewell of BPJ iron ore mine of Lessee. Baitarani river water is used for non-domestic purpose. In addition to Health Centre of the Lessee’s nearby SGBK iron ore mine, medical facilities are also available from the Dispensary at Bamebari (2 km), TATA STEEL hospital at Bichhakhundi (22 km). Govt. hospital at Joda NAC area. Education up to 7th class is available at Guruda UGME School, and High school level at Bamebari and college level, at Joda. Postal and telephonic facilities are available at Bamebary, Jururhi, Banspani & Joda.

5.0 PLANNING BRIEF: 5.1 PLANNING CONCEPT:

On receipt of all clearances from the concerned statutory authorities, the development of the mine shall begin in earnest. Construction of the ore processing plant and other infrastructure shall also be taken concurrently. However, as per the scheme of mining, an exploratory mine has already been developed, two quarries namely Q-1 and Q-2 will be developed simultaneously in eastern and western parts in rich iron ore zone where insitu iron ore is proved up to the end of ore zone with an aim to extract iron ore completely from one end of the lease to obtain the exhausted part as early as possible to start reclamation work.

5.2 LAND USE PLANNING:

The existing land use and the land use at the end of the mine’s life are as follows: Sl. No. Type of land use As at present

(in ha) As at the end of scheme period (in ha)

As at the end of conceptual period (life of mine) (in ha)

1. Area under excavation 1.187 8.322 42.827 2. Storage for Topsoil --- --- --- 3. Overburden dump 0.683 2.165 2.165 4. Mineral storage --- 3.529 3.529 5. Infrastructure (rest shed office, quarters,

hutting etc.) --- 0.500 0.500

6. Roads 0.480 1.760 2.179 7. Railways --- --- --- 8. Green belt (safety zone along lease

boundary) --- 1.500 2.500

9. Tailing Pond --- --- ---

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10. Effluent Treatment Plant --- --- --- 11. Mineral Separation Plant --- 0.675 0.675 12. Township area --- --- --- 13. Others Weigh bridge --- 0.500 0.500

Mineral rejects --- 3.250 3.250 --- Sub-Total 2.350 22.201 58.125 14. Safety zone on either side of village road --- 0.140 0.140 15. Safety zone on either side of perennial nala

coarse --- 8.600 8.600

16. Village road 0.060 0.060 0.060 17. Perennial nala 1.075 1.075 1.075 --- Sub-Total 1.135 9.875 9.875 --- Total 3.485 31.393 68.000

When the reserves are exhausted, the mine will be shut down as per the Approved Mine Closure Plan.

5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND 5.4 AMENITIES / FACILITIES

The statutory buildings such as rest shed, first-aid centre etc will be constructed and maintained properly. Rest shed will serve the purpose to rest and take food and water during lunch time. Wholesome drinking water will be provided as per need and kept in earthen pots under the shed for keeping the water cool and clean. Safety equipment and blasting sheds will be provided to the workers as per need. A canteen will be provided to take tiffin & meals as per need of the mine people. Toilet will be made available in ML area for disposal of human excretes in a hygienic manner. The servicing & repairing shop facilities will be constructed and include: Servicing & repairing space, Emergency spares room (store) with tools, Services station (with water treatment facilities), Mechanical (garage) Engineer – Cum- Record Room, Foreman’s office, Toilet.

6.0 PROPOSED INFRASTRUCTURE:

The statutory buildings such as rest shed, first-aid centre etc will be constructed and maintained properly. Wholesome drinking water will be provided as per need and kept in earthen pots under the shed for keeping the water cool and clean. Safety equipment and blasting sheds will be provided to the workers as per need. For day to day mine operation, facilities to be provided for various activities are as follows:

Type of Work Facilities Mine working Repair, maintenance & purchase of machineries/vehicles/ equipments/accessories. Safety Measures Provision of helmets, gloves, spades, spectacles. Protection of Environment

Water sprinkling, plantation and construction of retaining wall etc.

Welfare Provision of rest shed, blasting shed, first aid facilities, wholesome drinking water & ambulance arrangement.

Medical examination of workers shall be carried out periodically, records shall be maintained properly and treatment shall be done accordingly by the specialized Doctors. Temporary housing facilities will be provided to the laborers within the site with all necessary facilities such as fuel for cooking, mobile toilets, wholesome drinking water, medical/health care etc.

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Pre-Feasibility Report Expansion of Mahaparbat Iron Ore Mining Lease

Occupational health surveillance programme of the workers shall be undertaken periodically to observe any contractions due to exposure of dust and take corrective measures.

Green Belt & Plantations:

A total of 106,567 saplings such as Mango, Mahul, Neem, Mahaneem, Gambhari etc. will be planted cumulatively over an area of 42.627 hectares by the end of conceptual plan period. Before the lease is abandoned, plantations will be created over additional exhausted quarry benches and floors, external over-burden dumps and backfill areas. Saplings of species like Neem, Karanj, Jamun, Mahua, Amla, and other fruit bearing trees etc. will be planted as part of the re-vegetation programme. There will be no reclamation of mined out land during the remaining years till 2018 because of non-availability of exhausted quarry or part thereof. Back-filling is proposed to be undertaken since 6th year (2018-19) and onwards. As far as post mining land use is concerned, area under excavation and overburden dump will be fully reclaimed/ rehabilitated. A part of the mined out area over 4.865 hectares will be left as water reservoir. Road will be left for use of the local people and also as fire line. Area under sub-grade stack, mineral separation plant, mineral stacking & infrastructure may also be utilized after mine life. The details are as follows:

Sl. No.

Type of plantation Location Area (in ha.)

No. of saplings

1 Plantation Safety zone along lease boundary

2.500 6250

2 Reclamation (back-filling & plantation)

Mined out area 10.475 26188

3 Rehabilitation -do- 27.487 68717 4 Rehabilitation Waste dump 2.165 5412 Total --- --- 42.627 106,567

CSR Activities: OMDC is planning to do these jobs under Corporate Social Responsibility and jobs are taken up within villages that falls under 10 Km radius. Activities which will be taken are as follows: Holding of medical camps, supply of medicines to villagers, mosquito eradication programmes Improving drinking water supply systems and infrastructure in peripheral villages Material assistance to needy village women Improvement of education facilities in villages Setting up of solar powered street lights in villages Construction of roads Setting up of community toilets Material assistance for village festivals, cultural events and sports activities

Activities already taken up are as follows:

Year Purpose Amount (in Rs) 2013-14 Grant in Aid to Dharanidhar High School, SGBK Mines of

Barbil Region for the year 12-13 150000.00

2014-15 Financial Assistance to Indian Red Cross Society, Keonjhar for the year 2014-15

1000000.00

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Pre-Feasibility Report Expansion of Mahaparbat Iron Ore Mining Lease

7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN :

The project does not envisage any leasing or acquisition of private land. Hence there will not be any land oustees who have to be resettled our rehabilitated.

8.0 PROJECT SCHEDULE & COST ESTIMATE 8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION:

It has been envisaged that Mahaparbat opencast mine of OMCL attain its rated capacity to 1.0 Mt/yr in FY 2017-189 i.e. 5th year of the present scheme of mining. However the expansion schedule is subject to receipt of all statutory clearances required for the expansion. It has been assumed that “Zero-date” i.e. start of the expansion project, will commence after completion of preliminary works like land Identification, approval of EIA/EMP and other statutory clearances. Immediately after the clearance of EIA / EMP report by the MOEF, mobilization and placement of orders for civil works, structural works and procurement activities for infrastructure facilities will be started so that the above facilities shall be completed well before the start of the mine development works.

8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT

Capital cost of the project and operating cost/tonne are Rs.20 Crores and Rs.650, respectively. As per the flow sheet of crusher unit, 150tph lumps (64% Fe), 220tph fines (62% Fe) and 130tph rejects (55.5% Fe) is likely to be produced from 500tph iron ore (61.5% Fe). The percentage of processed materials is expected to be of the order of 30%, 44% and 26% whose present selling prices are Rs.6700/-, Rs.1775/- and Rs.800/- respectively. Average present sale price / ton of ROM ore is calculated to be Rs.6700 (30%) + Rs.1775 (44%) + Rs.800 (26%) = Rs.2999, say Rs.3000/-. Capital cost of the project is estimated to be Rs.20 crores for production of ROM iron ore @1Mt/annum till the date of opening of the mine. Item wise break-up of the capital cost is proposed to be as follows :

Sl. No ITEM AMOUNT (Rs in Crores) 1 Land, Building & Infrastructure 2.50 2 Road development 1.00 3 Other investments for power supply, water supply etc. 1.50 4 Plant, machinery & equipment 11.30 5 Exploration (drilling, sampling & analysis

@Rs.5,000/m for 5385.15m drilling) 2.70

6 Statutory clearance 1.00 --- Total 20.00

Production, transportation and processing cost is estimated to be Rs.650/tonne as per the following break-up :

Sl. No ITEM COST/TONNE (Rs) 1 Sampling & chemical analysis of stack samples 5.00 2 Mining (excavation & transportation) 318.00 3 Processing (assuming one-third of mining cost) 106.00 4 Depreciation 20.00 5 Salary & Wages 50.00 6 Fringe benefits 25.00

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7 Marketing & liaison 10.00 8 Diesel, lubricants & grease 80.00 9 Power 10.00 10 Explosive & accessories 12.00 11 Occupational safety (Health care, safety equipments,

training etc.) 2.00

12 CSR Activities/Peripheral development 5.00 13 Statutory clearances 2.50 14 Road maintenance 1.50 15 Progressive mine closure activities such as

environmental monitoring, construction of retaining wall, plantation etc.

1.00

16 Abandonment cost (final mine closure activities / reclamation & rehabilitation)

2.00

--- Total 650.00 9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) The project will have the following benefits:

The project will increase the supply of iron for the domestic steel industry. In addition it will add to revenue generation of the District / State. There will be social benefits from the mining operation in the region. The underlying benefits through the

proposed project are : It aims to provide additional direct or indirect employment to the local population of the area. The proposed project aims to fulfill its social sustainable responsibility through promoting and maintain

permanent structure as follows : Facility for village school including classroom, toilet construction, ceiling fan/coolers or books for school

library. Vocational training to be provided to the persons for improving their skills in income generation techniques

like stitching, Hatchery. Plumber, carpenter, blacksmith etc. Formation of self help groups to develop the saving and helping each other with financial resources instead

of going for heavy interest debts.

Considering the above mentioned points capacity expansion of Mahaparbat iron ore mine will fetch additional benefits and uplift the socio-economic condition of local villagers apart from generating additional revenue for state. Thus capacity expansion of Mahaparbat Mine project has become necessary.

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EW

S

N85° 20' 85° 25' 85° 30'

85° 20' 85° 25' 85° 30'

22°

57'

22°

47'

22°

52'

21° 30'22° 57'

22° 52'22° 47'

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