Pre feasibility report

FOR

Markhera Pyrophyllite & Diaspore Mine

Lease Area – 10.834 Hectare

AT

Village: Markhera, Tehsil: Jatara

Dist. Tikamgarh (M. P.)

Leasee

M/s Rabela Traders & Fianance Pvt. Ltd.

Indra Bhavan, Idgah Hills ,

Bhopal. (M.P.)

Contents

1.0 Executive Summary

2.0 Introduction of the Project. Background Information

3.0 Project Description

4.0 Site Analysis

5.0 Planning Brief

6.0 Proposed Infrastructure

7.0 Rehabilitation & Resettlement Plan

8.0 Project Schedule and Cost estimate

9.0 Analysis of Proposal (final recommendation)

1.0 Fig. (Topography Map)

PRE FEASIBILITY REPORT

1.0 Executive Summary

M/s Rabela Traders, & Finance Pvt. Ltd, is registered under the Indian partnership Act 1932 (9

of 1932) having their registered office at Indra Bhavan, Idgah Hills, Bhopal (M.P.) The

company is engaged in mining and trading of minerals. The firm is controlled by its partners.

Markhera Pyrophyllite and Diaspore mine is located in village Markhera, Tehsil Jatara Dist.

Tikamgarh in Madhya Pradesh. The lease area of mine is 10.834 ha.

The lease area is falls in survey of India Toposheet 54 L/13 and was sectioned in favour of

Eastern Minerals, Jhansi from the period from 03/12/1984 to 02/12/2004 and Transferred to

M/s Rabela Traders & Finance Pvt. Limited vide agreement dtd. 02/03/2002. At present the

lease is under process for renewal at State Govt.

Previously the mining is done by Rabela Traders & Finance Pvt. Limited upto 2004, and then

stopped due to low market of Pyrophyllite and Diaspore.

The mining scheme was submitted under Rule 12 of MCDR 1988 in the year 1997 and

approved by IBM. At present the scheme of mining is under preparation for further five years.

1.1 Salient features of the project

Name of the project Markhera Pyrophyllite & Diaspore Mine

Location of Mine Khasra No. 476, 477 village Markhera, Tehsil

Jatara, District Tikamgarh (Madhya Predesh)

Latitude 24052’42”

Longitude 78047’44”

Land use Govt. waste Land

Minerals to be mined out Pyrophyllite and Diaspore

Total Reserve 3,21,139 MT

Life of Mine Approx. 30 years @ 10000 MTPA production

Proposed production 10,000 MTPA - Pyrophyllite

400 MTPA - Diaspore

Method of mining Open cast manual

No. of working day in a year 300 days

Water requirement 10 kld

Source of water Ground water/ mine pit water

Man power requirement 59 Nos.

Nearest City Tikamgarh 18 km from Mine

Nearest Railway Station Niwari 70 km from lease area.

Nearest Airport Khajuraho 165 km from the mine by road

Nearest Highway Tikamgarh-Jhansi NH-12 is 14 km from mine.

Nearest Village Markheda at 1.0km

Nearest River Jammi River 3.2 km

Topography Mount shape

Ecological Sensitive Zone No national parks and sanctuary within 10 km

radius

Nearest Industries None within 10 km radius

Inter state boundary U.P. state border 6.3 km. (Distt. Lalitpur)

2.0 Introduction of the Project/ Background information

2.1 Identification of project and project proponents:

Earlier the Mining Lease sectioned to M/s Eastern Minerals, Jhansi (U.P.) and the lease has

been transferred to M/s Rabela Traders, & Finance Pvt. Ltd. The Mining lease area is 10.834

ha. and validity of lease was 03.12.1984 to 02.12.2004. At present, the renewal of lease is

under renewal process at State Govt. Level.

Project Proponents

The owner of the Mine M/s Rabela Traders, & Finance Pvt. Ltd. having their office at Bhopal.

The Director of the company is as follows:

Shri Raj Mohan Agarwal

Indra Bhavan, Idgah Hills

Bhopal (M.P.)

Shri Sanjay Kumar Gupta

Power of Attorney

2.2 Brief Description of Nature of Project

The mining project is proposed for an annual production of 10,000 MTPA of Pyrophyllite and

400 MTPA of Diaspore by open cast method. The lease area is government waste land. No

forest land is involved. The total estimated Geological Reserves is 3,21,139 tonnes.

As has been stated earlier that the mine has been operated previously therefore Separate

dumps of soil and waste rocks are existed in lease area. The OB is found in the range from

1.5m to 3.0m.

The soil shall be used for plantation. OB shall be used for Backfilling in mined out pits.

2.3 Need for the Project and Its Importance to the Country or Region

Pyrophyllite and Diaspore are important chemical minerals. Pyrophyllite is required for

production of refractory, ceramic & paper industry while Diaspore is used is making alumina

refractory. The start of mining project is beneficial for the local people as they will get

employment and the Govt. will also get royalty.

2.4 Demand- Supply Gap:

At present there are five refractory plants within 100 km radius from the mine and they are

facing shortage of minerals to run their plants, therefore after start of mine the minerals shall

be supplied to these refractory units.

2.5 Imports vs Indigenous production:

The proposed project is expected to bring down the domestic merchants.

2.5 Export Possibility

At present, there is no proposal to export the Pyrophyllilite and diaspore from the proposed

mining.

2.6 Domestic /Export Market:

The quality of minerals is mix grade and high grade. The minerals shall be transported to

Newari, where pulveriser plant is located. There shall be no special contract with the

purchaser.

2.6 Employment Generation (Direct & Indirect) due to project.

The local labors shall be engaged for mining of Minerals and loading and handling of mineral

in mining area, besides, watch and ward and plantation activity with proper maintenance. The

total manpower required for material handling and loading works out to 55. Beside this,

Rabela shall engage skilled and managerial staff to meet the statutory requirement under

MMR 1961 and MCDR 1988. The following skilled / unskilled and semi-skilled workers besides

managerial and administrative staff shall be employed at the time of re-opening of mine.

Designation Qualification Number

Mine Manager under

Reg 34 of MMR 1961

Mine Manager’s certificate

of competency

1

Mining Engineer

under Rule 42(1)(b)

of MCDR 1988

BE Mining 1 ( Part time)

Mine foreman Certificate of competency 1

Mine mate Certificate of competency 1

Blaster Certificate of competency 1

Drill Operator 1

Semi skilled 5

Unskilled 50

3.0 Project Description:

3.1 Type of the project including interlinked and interdependent project, if any

The Markhera Pyrophyllite and Diaspore at Village Markhera, Tehsil Jatara & District

Tikamgarh, Madhya Pradesh, has a total mine lease area of 10.834 ha. The proposed

production will be 10000 MTPA of Pyrophyllite and 400 MTPA of Diaspore. The project has no

other interlinked project.

The project activity falls under category ‘A’ (Activity 1 A – Mining of Minerals) because the

lease area is located within 10 km from the boundary of Utter Pradesh State, as per General

Condition 1 of the Environmental Clearance Notification 2006, as amended from time to time.

3.2 Location (map showing general location, specific location, and project boundary &

project site layout) with Coordinates

District/State Tahsil Village Khasara No. Area

Tikamgarh (MP) Jatara Markheda 476, 477 10.834 ha

Total 10.834 hectare

The lease area is located at the distance of about 18 km NW of Tikamgarh the District head

quarter, and is approachable from Tikamgarh via Tikamgarh – Jhansi Road upto 12 km mile

stone and from their by a 6 km long all weathered road. The area is located at a distance of 95

km from Jhansi and also approachable by Prithvipur and Digoda.

Topographical map:

Fig. 1.0 Topography Map

3.3 Details of Alternate Sites

The Subject mine lease is already in possession of Rabela Traders & Finance Pvt. Limited and

renewal of lease is in process at State Govt. Level and the Environmental Clearance is applied for

commencing mining operations and lease renewal.

3.4 Size or magnitude of Operation:

The mine lease area is 10.834 ha government waste land and the moming operation shall be open

cast manual method for excavation of Pyrophyllite and Diaspore.

3.5 Project Description with Process details:

Mining method

Mining Method Mining will be carried out manually with opencast method with

conventional hand tools, drilling & blasting shall be done occasionally.

Sorting, sizing, dressing & breaking will be carried out manually. Different

grades of pyrophyillite will stack separately & transported to grinding

unit. Total Reserve - 3,21,139 M.T.

Blasting Drilling and Blasting will be carried out for the removal of OB Drilling will

be under taken by 33mm dia jackhammer. The drilling and blasting

parameters are as follow:

Height of bench - 1.5m

Depth of hole with 10% sub grade drilling - 1.0m

Spacing - 1.5m

Burden /dia - 1.0 m/ - 32-34 mm

Total Explosive/around - 1.5 kg

Charge per hole - 250 gm.

Process flow chart

Top Soil Removal Storage of Top Soil

Drilling and Blasting for

Loosening of Waste Rock and

waste rock Removal

Drilling and Blasting for

mineral Loosening

Excavation of Pyrophyllite & Dumper

Loading Sent to Market

Waste Rock Dump Yard

Precautionary Measures during Blasting

Adequate precautionary measures will be taken as given below:

� Adequate siren system will be used.

� Legible warning sign in the language understood by the local people.

� Enough security guards, especially posted on roads etc.

� Before blasting the upper surface of the bench shall be cleaned off any stones lying

above, as it is a major source of flying stones.

� Controlled blasting shall be practiced and only between 12 Noon and 2PM.

� All safety measures as prescribed under MMR 1961 and circulars issued by DGMS.

� An effective record of instruction to guards given for working shall be maintained.

3.6 Raw material required along with estimated quantity, likely source, marketing area

of final product/s, mode of transport of raw material and finished product

For the purpose of mining, materials required includes Explosives, HSD, The final product

from this mine will be sized Pyrophyllite and Diaspore which will be transported to pulveriser

plant at Niwari.

3.7 Resource optimization/ recycling and reuse

No sub grade mineral is expected to be excavated, therefore mo proposal has been envisaged

for separated stacking of sub grade mineral and its use.

3.8 Availability of Water its source, energy / power requirement and source

3.8.1 Water Requirement

In mining activity no water is used in the process the use of water is only for domestic

purpose, the quantity of water required is approx. 10,000 liters per day shall be taken from

the nearby bore wells and accumulated rain water in mine pits.

Water requirement

S. No. Head Quantity

1. Dust suppression 5.0 kld

2. Green belt 3.0 kld

3. Domestic 2.0 kld

Total 10.0 kld

3.8.2 Power Requirement:

Power shall be required for domestic / office use and shall supply by MPSEB.

3.9 Quantity of wastes to be generated (liquid and solid) and Scheme for their

management/ disposal

3.9.1 Solid waste generation and management:

The overburden to be produced from working pits will be quartz pyrophyllie and it has been

considered as waste. The lease hold is rocky exposure having less soil cover, mining is

proposed in the already exposed mining pit and during first five years lateral extension of

existing working pits has been proposed.

3.9.2 Liquid effluent

There will be no waste water generation from Mining activities. However, a small amount of

domestic wastewater generation will happen as a result of water used by humans, which will

be disposed in soak pits.

3.10 Schematic representation of the feasibility drawing which give information of EIA

Purpose.

EIA shall be prepared on the baseline data of Air, Water, Soil, Noise and Socio economic

within 10 km radius and as per the points given by regulatory authority in TOR.

4.0 Site Analysis

4.1 Connectivity

The lease area is located at the distance of about 18 km NW of Tikamgarh the District head

quarter, and is approachable from Tikamgarh via Tikamgarh – Jhansi Road upto 12 km mile

stone and from their by a 6 km long all weathered road. The area is located at a distance of 95

km from Jhansi and also approachable by Prithvipur and Digoda.

4.2 Land Form, Land use and Land Ownership

4.2.1 Land Form

The area is mount shape

4.2.2 Land use

The land use of the mine lease area 10.834 ha is government waste land of Khasra No.. 476,

477 falling under the revenue limit of Markhera village, Tehsil Jatara & District Tikamgarh

(M.P.)

4.2.3 Land Ownership

The lease area is falls in survey of India Toposheet 54 L/13 and was sectioned in favour of

Eastern Minerals, Jhansi from the period from 03/12/1984 to 02/12/2004 and Transferred to

M/s Rabela Traders & Finance Pvt. Limited vide agreement dtd. 02/03/2002. At present the

lease is under process for renewal at State Govt.

4.3 Topography along with Map

Topography of the area is undulating at the foothill. The highest level of area is 377.20 m RL

while the lowest level is at 329.10 m RL. The area has mild slope towards east and west. One

dry Nala is about 500m south of lease hold and west to east meet the Jammi Nadi which is

about 3.2 km from the lease hold. The Topographical map is given in Fig. 1.0 under caption

3.2.

4.4 Existing Land use pattern of Mine Lease area

Particulars Area in (ha)

Pits and Quarries 0.85

Dumps 2.91

Backfilled area 0.32

Plantation 0.05

Road 0.04

Stack yard 0. 92

Rest Shelter 0.09

Balance Undisturbed area 5.654

Total 10.834

4.5 Existing Infrastructure

Nearest City Tikamgarh 18 km from Mine

Nearest Railway Station Niwari 70 km from lease area.

Nearest Airport Khajuraho 165 km from the mine by road

Nearest Highway Tikamgarh-Jhansi NH-12 is 14 km from mine.

Nearest Village Markhera at 1.0km

Nearest River Jammi River 3.2 km

Topography Mount shape

Ecological Sensitive Zone No national parks and sanctuary within 10 km

radius

Nearest Industries None within 10 km radius

Inter state boundary U.P. state border 6.3 km. (Distt. Lalitpur)

4.6 Soil Classification

Soil samples shall be collected from three different locations and analysed for the purpose of

EIA report. At present the soil in the lease area is yellow soil cover is upto 10 cm in some

patches.

4.7 Climatic data

The climate in the region shows broadly four seasonal variations namely:

Winter : December – February

Summer : March – Mid June

Monsoon : Mid June – September

Autumn : October – November

Temperature

Maximum temperature recorded during summer season is 48°C. Minimum temperature

recorded is 9.2 °C January.

Rainfall

The area receives 70% on an average rainfall in between June end to mid September the

annual rainfall is 917.6 mm.

4.8 Social Infrastructure Available

The social infrastructure like educational facilities (primary and higher secondary schools),

drinking water supply, post and telegraph, public transportation and hospitals are by and

large are available within 10 km.

5.0 Planning Brief

5.1 Planning Concept

Open cast manual mining operations shall be carried out in the proposed mining operations.

In the mining activity local people shall be engaged. We the scheme of mining for five years

are under preparation.

5.2 Assessment of Infrastructure Demand (Physical & Social)

Physical infrastructure- it’s a small scale mining project and all necessary arrangement like

road, drinking water, rest shelter shall be made available before start of mine.

Social Infrastructure – shall be covered in EIA report after socio economic survey.

5.3 Amenities / facilities

� First aid facility shall be provided at mine site.

� The area shall not being used at all by general public.

� A rest shelter is there for workers.

� A Watchman during day & night shall be deputed at site to prevent unauthorized

entry.

� In case of natural hazards such as earthquake we will take assistance from the local

competent authority of Govt.

6.0 Proposed Infrastructure

6.1 Industrial area (processing area)

No permanent structure is proposed. Temporary rest shelter, road , site office shall be made.

6.2 Residential area (Non Processing area)

As the local people from nearby villages shall be engaged in mining activity. Therefore no

housing / building is proposed.

6.3 Greenbelt

� The plantation shall be carried out in 3.57 ha. in the lease area next five years.

� 3000 Nos. of plant / species of local variety shall be planted in the lease area.

� Name of plant/species- Neem, Tendu, Aam, Chiroul, Amltas & Mahua.

6.4 Social Infrastructure

As per CSR activity the company will contribute in the developmental activities in nearby area.

6.5 Connectivity

Site is well connected with village road to Tikamgarh – Jhansi Road (NH-12) which is 14km

from mine.

6.6 Drinking water management

Drinking water is required 2.0 kld per day which will be taken from village hand pump.

6.7 Sewerage System

The domestic waste shall be taken to soak pit.

6.8 Industrial waste management

No waste water generated from mining activity. The solid waste in form of over burden shall

be used for backfilling in exhausted pits.

6.9 Solid waste management

The solid waste in form of over burden shall be used for backfilling in exhausted pits.

6.10 Power Requirement and supply / source

Power shall be required for domestic / office use and is being supplied by MPSEB.

In mining operation power is not required.

7.0 Rehabilitation & Resettlement Plan

The total area of the lease is 10.834 ha sectioned by Govt. of M. P. and the land is undulating

and there is no human settlement or agriculture field is exists therefore, no R & R plan is

required.

8.0 Project Schedule and Cost estimate

8.1 Likely date of start of construction and likely date of completion

After obtaining environmental clearance and water / air consent the company shall start the

mining project.

8.2 Estimated project cost along with analysis in terms of economic viability of the project

The capital cost of the project is less than 10.0 lacs

Operating cost – Rs. 1500/- per tones

Closure Cost - Rs. 1,00,000/- year

Rehabilitation cost : (including dump management /backfilling, afforestation & other

measures etc) = 50,000/- per year

Production

Per year – 10,000 tonnes

Total operating cost of production/ year = 10,000 x 1500= 1,50,00,000/-

Total cost of production per year 1,00,000/- + 50,000/- + 1,50,00,000/-

= Rs. 1,51,50,000/-

Total cost of production per tonne = Rs. 1,51,50,000/10,000 = Rs.1515/-

Avg. sale value = 1800/- per tone

Profit : Rs. 1800 – Rs. 1515 = Rs. 285/-

Total profit in a year : 285 x 10,000/- = Rs. 28,50,000/-

9.0 Analysis of Proposal (Final Recommendation)

9.1 Financial and social benefits with special emphasis on the Benefit to the local people

including tribal population, if any, In the area

The proposed project will provide employment to local people in different mining activities

such as Mining, sizing, transportation and plantation. The project activity will not have any

major impact on the environment due to small scale manual mining. At Post mining stage of

proposed project, the existing waste land shall be partially backfilled and rest shall be

developed as water reservoir.

Company will also developed plantation in lease area which will improve the aesthetic

environment. As the part of CST activity the company will under take the developmental

work in nearby area in consultation with local panchayat.