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THE ODISHA MINING CORPORATION LIMITED PRE-FEASIBILITY REPORT FOR PROPOSED EXPANSION OF DAITARI 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.EE2191 March, 2015

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THE ODISHA MINING CORPORATION LIMITED

PRE-FEASIBILITY REPORT FOR

PROPOSED EXPANSION OF

DAITARI 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.EE2191 March, 2015

Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

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 19

8 Project Schedule and Cost Estimate 19

9 Analysis of Proposal (Final Recommendation) 19

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.S2.2015. EE2191) Contents Page i of iii

Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

DRAWINGS

Draw ing No. Title

MEC/Q77A/11/S2/T1 Mine lease area superimposed on toposheet

MEC/Q77A/11/S2/T2 Geological Plan

MEC/Q77A/11/S2/T3 Surface Plan

MEC/Q77A/11/S2/T4 Conceptual Plan

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.S2.2015. EE2191) Contents Page ii of iii

Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

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

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.S2.2015. EE2191) Contents Page iii of iii

Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

EXECUTIVE SUMMARY

Daitari iron ore mining lease of Odisha Mining Corporation (OMC) is spread over an area of 1018.3085 ha and located in village Talpada, Rebana Reserve Forest & Daitari Protected Forest in Harichandanpur tehsil, Keonjhar & Jajpur districts of Odisha and is covered by Survey of India toposheet no. 73 G/16. Daitari iron ore mine is in operation since 1966. Initially, the lease deed was executed for an area of 1812.99 ha on 27.01.1966 for a period of 30 years, which expired on 26.01.1996. Application for further renewal of the lease for a period of 20 years w.e.f. 27.01.1996 was made on 21.01.1995 for a lease area of 1812.99 ha. In the meantime, OMC decided to retain only 190.20 ha area and surrender balance part of the mining lease area and accordingly a revised renewal application was filed by OMC on 22.05.1997 for an area over 190.20 ha. Mining plan under Rule 22 (1) of MCR 1960 for a lease area of 190.20 ha was approved by IBM vide letter No. 314(3)/97/MCCM(C)/MP-10, dated 14.09.1998. Subsequently, the Scheme of Mining along with Progressive Mine Closure Plan (PMCP) for the period from 2003-2008 over an area of 190.20 ha was submitted by the lessee and approved by Indian Bureau of Mines vide letter No. 314(3)/97/MCCM(C)/S-22/2003 dated 11.07.2006. Later on OMC management again decided to retain the original lease area of 1812.99 ha without surrendering any part of the lease and requested Principal Secretary to Govt. of Odisha, Department of Steel & Mines Bhubaneswar to grant 1st renewal of the mining lease over an area of 1812.99 ha vide letter no. 3156/OMC/G&S/2006 dated 09.02.2006. OMC also wrote similar letter to Director of Mines (Odisha) on 15.02.2012 to grant 1st renewal of lease over an area of 1812.99 ha. Scheme of Mining along with PMCP for the period 2008-2013 and for an area of 1812.99 ha was approved by IBM vide letter No. 314(3)/2008/MCCM(CZ)/MS-12, dated 06.10.2008. Approved Mining Plan for an area of 190.20 ha was modified for the revised lease area of 1812.99 ha. The same was approved by Indian Bureau of Mines vide their letter No. 314(3)/2008/MCCM(CZ)/MP-16 dated 06.10.2008. Last scheme of mining of Daitari iron ore lease for a period of 2013-2016 over an area of 1812.99 ha has been approved by IBM vide letter no. 314(3)/2012-MCCM(CZ)/MS-52/223 dated 12.07.2013. The Environment Clearance for Daitari iron ore mining project has been accorded by Ministry of Environment, Forest and Climate Change (MoEFCC) vide letter no. J-11015/1003/2007-IA.II(M) dated 22.09.2010 for a production capacity of 3.0 Mt/yr. The stage-II Forestry Clearance of the mine has been accorded for an area of 95.60 ha by MoEFCC (FC Division) vide letter no. 8-164/97-FC dated 25th-27th January 2005. Consent to Operate have also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act vide letter no. 5917/IND-I-CON-246 dated 05.04.2011, which is valid till 31.3.2016. Consent to Establish has also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act vide letter no. 504/IND/-II-CON-47666 dated 12.01.2009. The lessee also has surface right over an area of 520.30 ha. Later it was again proposed by OMC to retain 1018.3085 ha and surrender the remaining area (794.6815 ha) to the state government. Permission from the state government for obtaining renewal of the lease over 1018.3085 ha has been taken. Accordingly, OMC prepared the Final Mine Closure Plan (FMCP) for the proposed area to be surrendered i.e. 794.6815 ha and the same was approved by IBM vide letter no. 314(3)/2012-MCCM(CZ)/FMCP-6/453 dated 15.03.2013. Certificate under rule 29A of MCR 1960 has been issued by Regional Controller of Mines, Bhubaneswar vide letter no. FMCP/FM/05-ORI/BHU-2012-13 dated 25.06.2013. Precise area plan for the balance retained area of 1018.3085 ha was approved by the Directorate of Mines, Odisha vide letter no. No. MIV(B)-59/04-12897/DM dated 23/02/2013. There has been no MCDR violation during the last scheme of mining period. No litigation against the project is pending at any court or any direction/ order is passed by any Court of Law against this project.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

So far, two mineral bearing blocks have been identified within Daitari ML area (1018.3085 ha). First block is the working zone, known as Daitari Hill Top deposit where mining operation is being continued since inception of the mines and the second iron ore bearing block is Sindurmundi area within the ML. The Daitari iron ore mine comes under Category-A as per EIA notification – 2006, Amendment Nov.-2009 & April -2011 of the Ministry of Environment, Forest and Climate Change, New Delhi. The deposit is being worked by opencast method of mining with formation of benches by drilling and blasting. Presently maximum height of bench is 10 m whereas, minimum width of bench is 10 m. Drilling & blasting is being used for hard laminated & massive ore, whereas, soft ore is directly excavated by 1.5 – 3.5 m3 capacity hydraulic excavators. The blasted/excavated material is loaded into 16 - 25 t tippers / 35 t dumpers which in turn is transported to 200 tph & 350 tph dry screening & crushing unit and 800 tph crushing plant for further size reduction & screening. The ore from Daitari mine will increase the supply of iron ore to India’s domestic steel manufacturers. The salient features of the project include:

Proposal Enhancement of Iron ore production from 3 Mt/yr to 6 Mt/yr at Daitari Iron Ore Mine (Area-1018.3085 ha) [including Daitari Extension area (249.96 ha), Installation of mechanized facilities for production and dispatch of 2.5 Mt/yr (106.016 ha) and 133 KVA transmission line]

Location of Mine Village Talpada, Rebana Reserve Forest & Daitari Protected Forest in Harichandanpur tahsil, Keonjhar & Jajpur district of Odisha.

Latitude 21005’33.09684”N to 21007’08.80500’’N Longitude 85046’01.89300”E to 850 49’17.01804’'E Land Use Total forest land of 846.3995 ha, Non-forest land of 171.909 ha (consisting of

Agricultural land - 7.214 ha, Settlements - 8.679 ha, Roads-0.48 ha and Waste land - 155.536 ha )

Total Mineable Reserves

~159.08 Mt of Iron ore (62.20% Fe in average) as on 01.08.2014

Life of Mine 25 years Method of Mining Fully Mechanized Opencast mining method with formation of benches by drilling

and blasting Quarries Presently Daitari Hill Top Deposit is the single existing working quarry in iron ore

section. Mining will be confined to Hilltop area during the proposed scheme period. In the conceptual period, attempts would be made to combine Sindurmundi deposit which has been proved to be ore bearing. Quarry benches are 7-10 m high & 15-20 m wide.

Stripping Ratio (m3:m3) 2.50 (ROM:Waste) Waste disposal There will be no waste generation during the plan period (i.e. till 2016). During 4

years from 2016-2020 waste generated will be dumped into existing waste dumps. Around 3.85 Million cu.m waste generation has been envisaged during the proposed scheme period. During 2020 year onwards OB will be used partly for dump and partly for backfilling. Sub-grade ores will be stacked externally for future use.

Mineral Processing A part of the production (ROM) shall be crushed & screened by dry process for which two dry screening & crushing plants are installed in the lease area. The other part shall be processed through 800 tph capacity OHP. A new 1000 tph capacity crushing & screening plants for production of CLO (10-40mm), fines (-10mm)OHP has been envisaged.

Mineral Transport The finished products are transported by road to Baliparbat area stack yard and Railway siding for final dispatch to buyers.

©, 2015 MECON LIMITED, All rights reserved

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

Number of working days

300 days/ year

Fuel Consumption HSD : Existing – 132.98 kl/yr ; Proposed: 3300 kl/yr Explosive Consumption

NG Based Slurry : Existing – 163.5 t/yr; Proposed: - 298.898 t/yr @ 4.26 t of iron ore per kg of explosives

Water Demand Average water consumption for domestic and industrial use are 714 m3/day and 1972 m3/day, respectively.

Source of water Portable water through bore-well and industrial water by treated recycled water. Man Power A total of 1250 Nos. (Regular: 350 Nos. contractual: 900 Nos.) Employees will be

working. Electricity Demand 10 MW Infrastructure Site office, Canteen, Crèche, First-aid centre, Vocational training centre has been

developed Proposed Investment Rs. 19878.135 Lakhs Production Cost Rs. 1061.48 / tonne CSR Budget Total Rs. 5.95 lakhs was spent for year 2013–14 & Rs. 30 lakhs is the CSR

budget approved by the CSR committee for the year 2014-15.

1.0 INTRODUCTION

This is Pre-Feasibility Report, which has been prepared as part of the application for grant of ToR (Terms of Reference) for Environmental Impact Assessment and Environmental Management (EIA/EMP) studies w.r.t. the proposed expansion of Daitari iron ore mining project of Odisha Mining Corporation Limited from rated capacity of 3 Mt/yr to proposed capacity of 6 Mt/yr of iron ore from existing open cast mine with decrease in ML area from 1812.99 ha to 1018.3085 ha [including Daitari Extension area (249.968 ha), installation of mechanized facilities for production & dispatch of 2.5 Mt/yr (106.016 ha) and 133 KVA transmission line]. The lease area is located in Harichandanpur Tehsil of Keonjhar and Jajpur district of Odisha. This report has been prepared as specified in MoEFCC’s OM 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 statutory prior Environmental Clearance in accordance with the objectives of National Environmental Policy as approved by the Union Cabinet on 18th May, 2006 and MoEFCC’s 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 through online submission in the prescribed format (Form I) along with a Pre-Feasibility Report.

In view of the above, Pre-Feasibility report has been prepared for seeking Approval for Terms of Reference for the EIA / EMP Studies for the proposed expansion of OMC’s Daitari Iron Ore Mine with decrease in ML area from Ministry of Environment, Forest and Climate Change, Govt. of India. The EIA/EMP report will also facilitate installation of mechanized facilities for production & dispatch of 2.5 Mt/yr (106.016 ha), 133 KVA transmission line and other related regulatory clearances as required, in addition to meeting environmental mitigation needs for Daitari Iron Ore Mine.

This report contains information on the proposed expansion of the mine and other facilities.

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

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

Demand and Supply 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.

©, 2015 MECON LIMITED, All rights reserved

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

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

Daitari iron ore lease covers 1018.3085 ha and is spread over Talpada village, Rebana Reserve Forest and Daitari Protected Forest between latitudes 21005’33.1”N & 21007’08.8’’N and longitudes 85046’01.9”E & 85049’17.0’'E. The area is covered under Survey of India toposheet no. 73 G/16.

2.2 BREIF DESCRIPTION OF THE PROJECT Daitari iron ore lease deed for total area of 1812.99 ha was executed on 27.01.1966 for a period of 30 years, which expired on 26.01.1996. Application for further renewal of the lease for a period of 20 years w.e.f. 27.01.1996 was made on 21.01.1995 for a lease area of 1812.99 ha. In the meantime OMC decided to retain only 190.20 ha area and surrender balance part of the mining lease area, and accordingly a revised renewal application was filed by OMC on 22.05.1997 for an area over 190.20 ha. Mining plan under Rule 22 (1) of MCR 1960 for a lease area of 190.20 ha was approved by IBM vide letter No. 314(3)/97/MCCM(C)/MP-10, dated 14.09.1998. Subsequently, the Scheme of mining along with Progressive Mine Closure Plan (PMCP) for the period from 2003-2008 over 190.20 ha area was submitted by the lessee and approved by Indian Bureau of Mines vide letter No 314(3)/97/MCCM(C)/S-22/2003, dated 11.07.2006. Later on OMC management again decided to retain the original lease area of 1812.99 ha without surrendering any part of the lease and requested Principal Secretary to Govt. of Odisha, Department of Steel & Mines Bhubaneswar to grant 1st renewal of the mining lease over an area of 1812.99 ha vide letter no. 3156/OMC/G&S/2006 dated 09.02.2006. OMC also wrote similar letter to Director of Mines (Odisha) on 15.02.2012 to grant 1st renewal of lease over an area of 1812.99 ha. Scheme of mining along-with PMCP for the period 2008-2013 and for an area of 1812.99 ha was approved by IBM vide letter No 314(3)/2008/MCCM(CZ)/MS-12, dated 06.10.2008. Approved Mining Plan for an area of 190.20 ha was modified for the revised lease area of 1812.99 ha. The same was approved by Indian Bureau of Mines vide letter no. 314(3)/2008/MCCM (CZ)/MP-16 dated 06.10.2008. Last scheme of mining of Daitari iron ore lease for a period of 2013-2016 over an area of 1812.99 ha has been approved by IBM vide letter no. 314(3)/2012-MCCM(CZ)/MS-52/223 dated 12.07.2013.

The Environment Clearance of the mine has been accorded by MoEFCC vide letter no. J-11015/1003/2007-IA.II(M) dated 22.09.2010 for a production capacity of 3.0 million tonnes per annum. The stage-II Forestry Clearance of the mine has been accorded for an area of 95.60 ha by MoEFCC (FC Division) vide letter no. 8-164/97-FC dated 25th /27th January 2005. Consent to operate have also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act vide letter no. 5917/IND-I-CON-246 dated 05.04.2011, which is valid upto 31.3.2016. Consent to establish have also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act vide letter no. 504/IND/-II-CON-47666 dated 12.01.2009. The lessee also has surface right over an area of 520.30 ha.

Later it was again proposed by OMC to retain 1018.3085 ha and surrender the remaining area (794.6815 ha) to the state government. Permission from the state government for obtaining renewal of the lease area over 1018.3085 ha. Accordingly, OMC prepared the Final Mine Closure Plan (FMCP) for the proposed area to be surrendered i.e. 794.6815 ha and the same was approved by IBM vide letter no. 314(3)/2012-MCCM(CZ)/FMCP-6/453 dated 15.03.2013. Certificate under rule 29A of MCR 1960 has been issued by Regional Controller of Mines, Bhubaneswar vide letter no. FMCP/FM/05-ORI/BHU-2012-13 dated 25.06.2013. Precise area plan for the balance retained area of 1018.3085 ha was approved by the Directorate of Mines, Odisha vide letter no. MIV(B)-

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

59/04-12897/DM dated 23/02/2013. The present lease area comprises of forest Land, agricultural land, settlements, waste land, grazing land and roads.

The deposit is being worked by opencast mining method with formation of benches by drilling and blasting. Presently maximum height of bench is 10 m whereas, minimum width of bench is 10 m. Drilling & blasting is being used for hard laminated & massive ore, whereas, soft ore is directly excavated by 1.5 – 3.5 m3 capacity hydraulic excavators. The blasted/excavated material is loaded into 16-25 t / 35 t capacity dumpers which in turn is transported to 200 tph & 350 tph dry screening & crushing unit and 800 tph crushing plant for further size reduction & screening.

2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY OR REGION :

The mine is designed to produce calibrated lump ore [(+) 10 mm – (-) 40mm] size fraction and fines [-10mm size fraction] having 63-64% 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 (including Daitari).

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

Increase the supply of iron for India’s domestic steel producers. It may be noted that, the Kalinganagar Industrial Complex with several integrated steel plants (including those of NINL, Tata Steel and Jindal Stainless Ltd.) is located ~50 km away from Daitari mines. Daitari mine is among the nearest source of iron ore producing mine for these steel plants.

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. OMC shall continue its peripheral development schemes by providing amenities viz. school buildings,

bus shelters, medical facilities etc. 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.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

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

Presently Daitari mine employs 1250 persons comprises of regular 350 Nos. and contractual 900 Nos. Under the proposed expansion programme, majority of the unskilled and semiskilled workers will be local persons.

3.0 PROJECT DESCRIPTION Original lease area of Daitari Iron Ore Mines was 1812.99 ha. OMC has surrendered 794.6815 ha area of the lease to the state government. The year wise iron ore production details from 1993-94 to onwards are given in Table No. 3.1.

Year Production(in t/y)

1993-94 2,02,805

1994-95 4,10,186

1995-96 2,31,085

1996-97 2,58,878

1997-98 1,00,875

1998-99 3,11,145

1999-2000 3,00,747 2000-01 2,83,155 2001-02 6,67,890 2002-03 9,18,799 2003-04 8,52,083 2004-05 11,01,048 2005-06 13,43,333 2006-07 19,17,963 2007-08 7,36,548 2008-09 15,93,553 2009-10 16,26,579 2010-11 7,87,800 2011-12 19,88,975 2012-13 7,03,440 2013-14 3,51,589 2014-15 *1,99,320

* till july 2014 The Environment Clearance of the mine has been accorded by MoEFCC vide letter no. J-11015/1003/2007-IA.II(M) dated 22.09.2010 for a production capacity of 3.0 Mt/yr. Stage-II Forestry Clearance of the mine has

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

been accorded for an area of 95.60 ha by MoEFCC (FC Division) vide letter no. 8-164/97-FC dated 25th /27th January 2005. Consent to Operate have also been granted by the state pollution control board, Odisha under the Air & Water (Prevent & Control of Pollution) Act vide letter no. 5917/IND-I-CON-246 dated 05.04.2011, which is valid upto 31.3.2016. Consent to Establish have also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act vide letter no. 504/IND/-II-CON-47666 dated 12.01.2009.

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.

3.2 LOCATION

Daitari iron ore lease is spread over Talpada village, Rebana Reserve Forest and Daitari Protected Forest in Harichandanpur tehsil of Keonjhar and Jajpur district of Odisha. The mine lies between latitudes 21005’33.1”N & 21007’08.8’’N and longitudes 85046’01.9”E & 85049’17.0’'E. The area is covered by Survey of India toposheet no. 73 G/16. The location of project is shown in Drg. No. MEC/Q77A/11/S2/T1.

3.3 DETAILS OF ALTERNATE SITE

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

3.4 SIZE AND MAGNITUDE OF OPERATION

Presently the retained ML area of Daitari Iron ore mines is 1018.3085 ha with rated capacity of 3.0 Mt/yr. It is proposed to increase ROM production to 6.0 Mt/yr along with increased ROM production, crushing and screening capacity will also be enhanced. Necessary infrastructure for handling the additional ore shall also be created.

3.5 MINE DESCRIPTION 3.5.1 Geology

Regional Geology

Daitari iron ore deposit forms a part of the Tomka-Daitari-Kalisagar-Rebana-Harichandanpur basin (Daitari Basin, BIF-2), which is considered to be older to the Bonai Iron Ore Horse Shoe described by Jones & Dunn. Acharya (1976 & 1984) consider the Iron Ore Formation of Daitari-Tomka as the BIF-2 of the Iron Ore Super Group that encompasses the three BIF horizons of northern Odisha. BIF of Daitari is regarded to be of older Proterozoic age. Iron ore formation of Daitari-Tomka basin overlies the granitic basement with an unconformity.

Regional Stratigraphy

The lithology of the area can broadly be divided as below.

Talangi Gritty Quartzite Upper Metapellites BIF with variants

Lower Metapellites Granites

The BIF is the key horizon of reference in the basin. The rocks are highly metamorphosed to green schist facies. The Iron Ore Formation is intruded by the Chromite bearing Ultramafics of Sukinda located to the north of Daitari hill range. Regional Structure

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

The iron ore formation of Daitari-Tomka represents an overturned anticline where the Talpada valley forms the core of the anticlinal structure. Daitari along with Sindurmundi hills makes the southern limb while the Baghiathali ridge makes the northern limb of the anticline. Both the limbs strike almost E-W and dips southerly by 620 - 720. A N-S trending fold with N-S trending axial plane is noted between Daitari ore body & Sindurmundi. Due to faulting, BIF zone in Daitari ore body & Sindurmundi deposit has been shifted. The regional geological map is given below as Figure 1.

Figure 1 : Regional geology of the area.

Daitari Iron ore deposit is an isolated deposit forming a conspicuous ridge along the district boundary between Keonjhar and Jajpur towards the North of Sukinda Chromite belt. The lower metapellites form the basal unit of the sequence unconformably overlying the granitic basement. Conspicuous hills and tors of granite are abundantly found along Bramhanipal-Harichandanpur road to the north of Daitari. The lower metapellites represented by phyllites, chlorite and chloritoid schist, lenses of quartzite & quartz schist, metavolcanics with tuffs & sediments, banded phyllites, slates, manganese bearing shale, ferruginous pyritiferous shale/phyllites, coarse dark coloured quartzite etc. are observed abundantly along the ghat-road section from Baliparbat upto the mines. Rocks of Banded Iron Formation consisting of Banded Hematite Jasper (BHJ), Banded Hematite Quartz (BHQ) overly the lower metapillites and are found outcropping near the primary crusher house. Outcrops of BHQ are also observed behind the Canteen in the mines. Highly weathered BHQ outcrop at about CS 1100/S close to the Dry Screening Plant are observed. The iron ore formation of Daitari is overlain by a comparatively thinner sequence of upper metapellites represented by phyllites, ferruginous shale, slate, tremolite-actinolite schist, dolerite with feldspar porphyry etc. The entire sequence of the upper metapellites is exposed along the western slopes of Daitari hill. However, the sequence of BHQ/BHC found at the crusher house continues towards Sindurmundi along the slopes apparently overlying the iron ore mineralization of Daitari. No BHQ/BHC sequence has been reported occurring on the footwall side of iron ore mineralization except for the

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

small outcrops at the canteen and the dry screening plant. A horizon of gritty quartzite named as Talangi gritty quartzite represents the uppermost horizon of the sequence. The chromite bearing ultramafics bear an intrusive relationship with the iron ore formation. A large body of quartzite occurring around Pancham can be observed at about 2 km uphill along the ghat road to Daitari township. A large dolerite dyke of coarse grained dolerite cuts across the area which is found outcropping along the Ghat road. Exposures of this dyke can be found at about 100m south of the Tarini gate. Outcrops of basalt can be observed to the NE of the township along the stream. Pillow structures can be delineated with right side up direction. Daitari is the largest iron ore deposit in the Tomka-Daitari range. Iron ore has developed by leaching of BHJ and enrichment of the lower tuffacious shale. Several smaller iron ore bodies have also been reported at Champajhar, Tungaisuni, Tomka, Baghiathali, Kalisagar and Nipania. These ore bodies are intra BIF (Acharya 2000) and broadly parallel to bedding and form massive to laminated ore deposits. Another smaller deposit occurs along Sindurmundi hill to the immediate west of Daitari, separated by a patch of feruginuous shale/phyllites. This area indicates a zone of structural disturbance and four different faults are interpreted to be passing through this zone (Acharya 2002). Sindurmundi appears to be the most promising iron ore deposit in the area besides Daitari. The succession of rocks in the lease area is as follows.

Upper Metaphilites and Meta Volcanics

Laterite,

Banded Iron Formation BIF Iron ore

Lower Metaphillites and Metavolcanics

Psammitic rocks, Pelltic / Acid tuff, Dark gray cherty quartzite and BMQ/BMJ/BHQ and BHJ etc.

The different litho units of Daitari iron ore lease is described below: a. Soft Laminated Ore (SLO)/ Friable Ore Soft Laminated Ore (SLO)/Friable Ore (FO) is the predominant ore type. 60% of the total reserve comprises of SLO/Friable Ore. At several places a still softer variety of ore can be seen (exposed around CS 700 S) which is termed as the biscuit type of ore. These ore are extensively used in the Dry Screening Plant for production of calibrated lump ore (CLO). b. Hard Laminated/ Hard Massive Ore The northern part of the deposit is dominated by hard laminated and hard massive variety of ore. Around 20% of total daitari deposit is of Hard Laminated type ore. A crude linear contact can be inferred between the hard massive/laminated ore and the soft laminated/biscuit type of ore. c. Limonite/ Limonitic Ore The north western part of the mines (00 N/-250 E) hosts a predominantly limonitic ore zone which indicates the proximity of multiple fault zones causing limonitisation to a deeper level. Around 5-6% ore is of limonite/limonitic ore in the deposit. All the ore types of Daitari are predominantly rich in limonite/goethite and hence rich in alumina and phosphorous. Washing and screening of the ore reduces the clayey limonitic materials to some extent. But mostly the limonitic materials become sticky in contact of water and make the removal very difficult. d. Blue Dust/ Powdery Ore It is fine grained iron rich ore having grayish in colour. It constitutes around 8 -10% of the Daitari iron ore Mines. The southern part of Daitari Iron Ore Mine between -250N to -450N hosts the Blue Dust/powdery ore. e. Laterite/ Lateritic Ore

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

Laterite/Lateritic Ore is predominantly hosted by Sindurmundi area between -2000E to -1200E. It is around 9 -10% of the total deposit. f. Shale Variety of shale incl. Ferruginous shale, Tuffaceous Shale, Carbonaceous Shale, Brown Redish Shale etc. are present in the area. It is predominant in the Sindurmundi area. Local Structure The deposit represents an overturned anticlinal fold. Strike of the Hilltop deposit is along the hill axis in N-S direction with an strike length of 1400 m. width of the orebody varies from 250m to 450 m. Hilltop deposit is westerly dipping at 600 - 700 .Two major faults cutting the orebody along -1100N and -700N have been interpreted. Strike of the Sindurmundi deposit is in E-W direction with an strike length of 1000 m. Width of the orebody varies from 100m to 350 m. Sindurmundi deposit is southerly dipping at 600 - 650.

3.5.2 Mineral Reserves:

Reserve & Grade as per United Nations Framework Classification, Geological Reserve is Coded as follows (in tonnes and as on 01.08.2014):

Sl. No Reserve Category (UNFC Classification) Block Qty. in Million Tonnes Grade (Fe%)

1 Proved Mineral Reserves (111) Hilltop

87.99 62.90% 2 Probable Mineral Reserves (121) 35.06 62.83% 3 Probable Mineral Reserves (122) Sindurmundi 36.03 59.82% A Total Economic (Mineable) Reserves 159.08 62.20% 4 Feasibility Mineral Resource (211)

Hilltop 11.032 +45%

Pre-Feasibility Mineral Resource (221) 0.52 +45% 5 Pre-Feasibility Mineral Resource (222) Sindurmundi 21.182 +45% 6 Remaining measured resource (331) - NIL NA 7 Remaining Indicated Resource (332) - NIL NA 8 Inferred Resource (333) - NIL NA Reconnaissance Resource (334) Float Deposits 4.906 +45%

B Total resource 37.642 +45% Total reserve & resource (A+B) 196.722

Total mineable reserve is 159.08 Mt. Surface Geological Plan of the lease area is enclosed as Drg. Nos. MEC/Q77A/11/S2/T2.

3.5.3 Mining:

The Daitari iron ore mines come under Category-A (Fully Mechanized category) as per the IBM guidelines. The deposit is being worked by opencast method of mining with formation of benches by drilling and blasting. Presently maximum height of bench is 10 m whereas, minimum width of bench is 15 m. Drilling & blasting is being used for hard laminated & massive ore, whereas, soft ore is directly excavated by 1.5 – 3.5 m3 capacity hydraulic excavators. Holes are charged with slurry explosives and initiated using electric detonator/detonating fuse/NONEL. The blasted/excavated material is loaded into 16 – 25 t capacity tippers / 35 t capacity dumpers which in turn is transported to 200 tph & 350 tph dry screening & crushing unit and 800 tph crushing plant for further size reduction & screening.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

The mining operations have been programmed in one locations i.e. namely Daitari Hill Top Deposit during the proposed present scheme period. In the conceptual period, attempts would be made to combine Sindurmundi deposit which has been proved to be ore bearing. The ROM will be transported to the existing 200 tph & 350 tph crushing & screening plants, 800 tph OHP and proposed new 1000 tph crushing & screening plants for production of CLO (10-40mm), fines (-10mm). The expected life of the mine at the above mentioned rated capacity will be around 25 years. Daitari iron ore lease will be mined at a maximum rated capacity of 6.0 million tonnes per year. The wastes generated from the Daitari iron ore lease will be partly dumped in external dumps & partly backfilled in the voids created during mining.

Sindurmundi & Hilltop pits will be merged together at conceptual stage. The ultimate size of the different quarries/ blocks with their ultimate co-ordinates, bottom RLs with bank slope are tabulated as below:

Mining Blocks/ Quarry Ultimate size of Pits (m)

Bottom RL (m)

Bank Slope Angle

Max. Ultimate Pit Slope

Daitari Hill Top quarry 2012 x 850 510 700 330 Sindurmundi quarry 1570 x 850 570 700 360

List of proposed fleet of mining machineries i.e. Major HEMM & Auxilliary Mining Equipment for Daitari iron ore mines is given below:

Parameters HEMM Fleet

Hydraulic Excavator, 3.2 – 4.5 cu.m 4 Hydraulic Excavator, 1.5 – 2.0 cu.m 4 Loader, 1.5 – 2.0 cu.m 4 Backhoe, 0.9 cu.m 2 Dumper, 35t 10 Tipper, 16 – 25t 30 Drill, 115 mm 3 Dozer, D-155 Equivalent (for mine) 2 Motor grader 2 Rock Breaker, 9 t 1 Explosive van - Service van 1 Pick up van 1 Water sprinkler, 28 2 Diesel tanker 1 Portable lights for face lighting 6 Tractor 1

The existing surface plan of the lease is enclosed as Drg. No. MEC/Q77A/11/S2/T3. The surface plan at the end of work is shown as Drg. No. MEC/Q77A/11/S2/T4. The mine will work 300 days per year with three daily shifts. When mineral reserves are exhausted, the mine shall be closed down in accordance with the approved mine closure plan. All waste dumps will be stabilized and biologically reclaimed. Some of the other infrastructure will be dismantled. Others, especially buildings will be handed over to local Panchayats or the State Government.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

3.5.4 Mineral Processing:

Dry crushing & Screening Plants Part of the ROM ore shall be crushed and screened by dry process for which two dry screening & crushing plants are installed in the lease area. The capacity of screening plant is 200 tph and that of dry crushing & screening plant is 350 tph. Recovery of these plants is 100% of feed quantity of ROM. The balance ROM shall be processed through Ore Handling Plant (OHP). It is expected that lumps (+10 mm size) shall constitute ~53%, whereas fines (-10 mm size) shall constitute ~47% of the calibrated ore. The grade of ore (lumps as well as fines is expected to be >60%. The finished products are transported by road to Baliparbat area stack yard and railway siding for final dispatch to buyers. 800 TPH OHP (Existing) The ROM from the mines is transported by 35 t dumpers to the hopper of primary crusher house. The ROM is fed to a vibrating grizzly (800 tph capacity) by an apron feeder. Oversize of grizzly is fed to primary jaw crusher of 800 tph capacity, whereas the undersize material of grizzly & the product of primary jaw crusher (-275 mm) is discharged to a belt conveyor which feeds the material to a Double deck scalping screen. Oversize material (+40 mm) of screen is transported to a surge bin installed at the end of DD screen which is fed to a secondary cone crusher of 400tph capacity through a belt conveyor. Undersize of screen & crushed product of secondary cone crusher is carried to primary stock pile of 5000 t capacity. (-)40mm material of stockpile is fed to a long distance belt conveyor (LDBC) of 3.8 km length by a series of conveyors. Provision of 15000 t capacity intermediate stockpile has been also made ensure uninterrupted supply to ore to downstream crushing & screening plant located at Baliparbat. The ore from stock pile may be fed to downstream conveyor by a pay loader through a movable hopper . Material from downhill LDBC is collected in 3 nos. of hoppers each having 200 t capacity. The ROM is fed to a double deck screen at Baliparbat processing plant. Oversize material is fed to another jaw crusher of 50 tph capacity. Product of 50 tph jaw crusher is fed to a double deck screen. Oversize of screen is recirculated to the jaw crusher, (-)10 mm material of double deck screens are collected in a hopper and finally carried to the fines stack yard at Baliparbat. Similarly (-)40 to (+)10 mm CLO are carried to the CLO stackyard at Baliparbat through a series of belt conveyor. Fines & CLO from Baliparbat stackyard is dispatched to different buyers either by road or through Daitari railway siding. Proposed New Standalone Project (1000 tph Capacity) A new stand alone project of 1000 tph production capacity is proposed to be installed with mechanized wagon loading facility. It is envisaged to mine 1000 tph iron ore from Daitari Hill Top deposit and the ROM shall be maximum 1000 mm size. These products shall be crushed to an optimum size at the proposed crusher in the hilltop at a approximate lead distance of 3 km (to & fro) from the mines and will be transported to Odisha State Commercial Transport Corporation (OSCTC) area at the foothills through a suitable downhill conveyor system of approximately 4.5 km long. The above crushed ore shall be subjected to further crushing and sizing, as required, in the plant to be installed at OSCTC area and screened to produce (-) 40 mm and (+) 10 mm calibrated ore (-) 10 mm fines. These products will be stacked in the adjacent area in 2 different stock piles. The capacity of the lump ore stock pile will be 0.2 Mt and fines ore stock pile of around 0.3 million tonnes. The finished products will be reclaimed and subsequently transported to railway siding area at a distance of 5 km through another conveyor for mechanized loading into wagons at a new captive railway siding.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

3.5.5 Mineral Transport

The blasted/excavated material is loaded into 16 – 25 t capacity tippers / 35 t capacity dumpers which in turn is transported to 200 tph & 350 tph dry screening & crushing unit and 800 tph crushing plant for further size reduction & screening. The finished products will be reclaimed and subsequently transported to railway siding area at a distance of 5 km through another conveyor for mechanized loading into wagons at a new captive railway siding.

3.6 RAW MATERIALS

The only raw materials consumed in the project are fuel (HSD) and explosives (NG Based Slurry).

The fuel consumption in the mine operating at full capacity is estimated to be HSD- 3300 KL. The explosives consumption is expected to be 1.0 TPD (powder factor of 4.76 t of iron ore per kg of explosives). Storage of explosives (like capacity and type of explosive magazine) Presently, OMC has a licensed magazine of 18 t capacity for storage of explosive but considering the sensitivity of the area, it is proposed to continue the supply, charging & blasting operation to external agency as being done through tripatriate agreement. The detail of magazine is given below.

Class Commercial terms Quantity Class – II and Division – 0 Nitrate mixture 18 tonnes Class – VI (Division – 1) Safety fuse 12,000 m Class – VI (Division – 2) Detonating fuse 30,000 m Class – VI (Division – 3) Electric & ordinary detonators 44,000 Nos

3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE

Effluents from the mine’s drinking water circuit shall be collected in sumps and utilized for industrial purposes (green belt irrigation and dust suppression).

3.8 SITE SERVICES 3.8.1 Water Requirement:

The total average water demand for the project is about 1420 m3/day, out of which, about 1290 m3/day of potable water shall be drawn from bore wells (1250 m3/day for the township and 40 m3/day for drinking and domestic purposes at the mine site). Further, 130 m3/day including 60 m3/day of water is required for green belt development shall be catered through recovered treated water from STP of the township.

3.8.2 Power Requirement

The estimated power demand is ~10 MW for illumination, operation of operation of weighbridge, surveillance system & water pumps. The power shall be drawn from the grid.

3.8.3 Amenities

The leasehold area hosts statutory facilities viz. crèche, canteen, first-aid centre, vocational training centre etc. and also Administration block, servicing and repairing shops, fuel pump station and a small medical unit. Also, certain ancillary services (viz. Township, School, Ore sizing yard etc.) are located in Daitari Extension area over 249.968 ha outside Daitari ML area.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

3.9.1 SUBGRADE

Material containing 45-55% Fe has been considered as subgrade. Around 31.67 Mt of subgrade ore containing an average grade of 49.30% Fe will be generated. Out of the above subgrade, 10.98 Mt and 20.69 Mt will be generated from hilltop & sindurmundi blocks respectively. Entire subgrade generated upto conceptual period has been planned to be blended with high grade ore therefore, no subgrade stack is required.

3.9.2 WASTES

The mine’s rated capacity shall be 6 Mt/yr of iron ore. During the plan period (i.e. till 2016), there will be no waste generation. However, about 180.69 Mm3 of total waste shall be generated from entire Daitari iron ore lease till conceptual period. Out of the above, around 60.69 Mcu.m shall be dumped in existing external waste dump and balance 120 Mcu.m waste generated during upto conceptual period has been planned to be backfilled for reclamation of the worked out pit progressively. Initially the OB/wastes shall be dumped at the earmarked sites given in conceptual plan.

4.0 SITE ANALYSIS

4.1 CONNECTIVITY

The mine is well connected by all-weather metal road from different cities of Odisha. The lease area is at a distance of ~53 km from Jajpur, ~169 km from Keonjhar, ~93 km from Cuttack, ~155 km from Paradeep and ~166 km from Bhubaneswar respectively. Nearest East Coast passenger railway station on Howrah-Chennai main broad guage-line is at Jajpur-Keonjhar road which is at a distance of ~53 km from Daitari iron ore mines while the nearest passenger station on Bhubaneswar-Kendujhar BG line is at Tomka which is at a distance of ~9 km. The nearest airport with regular scheduled services, is at Bhubaneswar which is about ~166 km from the mine site.

4.2 LAND FORM, LAND USE, OWNERSHIP

The mine lease area of Daitari iron ore lease is 1018.3085 ha, comprising of 846.3995 ha forest land and 171.909 ha non-forest land. The forest land comprises of 563.0789 ha of Reserve Forests, 229.6126 ha of Protected Forests and 53.7080 ha of Village Forests. The non forest land comprises of agricultural land (7.2140 ha), settlements (8.6790 ha), waste land (155.5360) and roads (0.480 ha).

4.3 TOPOGRAPHY

Daitari leasehold area is an undulated hilly terrain consisting of high ridges and valleys forming a part of Tomka-Daitari hill peak at the current level of 830 mRL form the highest point of the area as well as the leasehold. The lowest point in the leasehold is represented by the south-eastern part at 480 mRL. Township is situated at 400 mRL. The area displays a dendritic pattern of drainage. Daitari hill range acts as a water divider where the surface runoff from the north, north-east of Daitari drains to the Baitarani River. The surface run off are collected by Kukrangi Nala through several streams and discharged at Pancham in to the Kusei Nala, a major tributary of the River Baitarani. The south, south–west slopes drains to the River Bramhani where the surface run off is collected by the Damsal Nala and Ganda Nala, two major tributaries of River Bramhani.

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

4.4 LAND USE

The lease area is located partly in forest land (846.3995 ha) and partly in non-forest land (171.909 ha). The pre mining landuse of the ML area and stage-wise land utilization of Daitari ML area (ha) is given below: Pre mining landuse of Daitari ML area (ha) S.No. Landuse Area 1 Forest Land 846.3995 1 Agricultural Land 7.2140 2 Settlements 8.6790 3 Road 0.4800 4 Waste land 155.5360

Total 1018.3085

4.5 EXISTING INFRASTRUCTURE

All necessary infrastructure viz. Mine office, workshop, explosive magazine, stores, weigh bridge, first aid centre, rest shelters, canteen, vocational training centre, crèche, township etc. are already in existence. The existing material handling facilities will be augmented to cater to the increased production. Additionally, certain ancillary services (viz. Township, School, Ore sizing yard etc) are located in Daitari Extension area over 340.82 ha outside Daitari ML area.

4.6 SOIL CLASSIFICATION & VEGETATION

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. The natural vegetation in this area is classified as Northern Tropical Dry Deciduous Forests. Average tree density in the area is about 1515 / ha, with tree height ranging from 1.2-1.5m. Sal and Kangara are most dominant species with Tendu, Dhaura, Asah and Jam etc.

4.7 CLIMATE

Climate of the area is subtropical with abundant rainfall during monsoon. More than 70% of the rainfall occurs during June to September. Average annual rainfall in the area is of the order of 1231 mm. Temperature in the area varies from 70C - 470C. Relative humidity varies from 20%-89%. Predominant wind direction is due SW.

4.8 SOCIAL INFRASTRUCTURE AVAILABLE

Certain social infrastructures (viz. Township, School etc.) are already in place at Daitari Extension area over 249.968 ha outside Daitari ML area. Additionally schools, market complex, play ground, water reservoir, Guest house, temple and public utility area already exists in near by area of OSCTC (Balipabat).

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

5.0 PLANNING BRIEF

5.1 PLANNING CONCEPT

The proposed project envisages expanding an existing open cast mine. The basic infrastructure required for the expansion is already in place. The proposed rated capacity of the mine (6 Mt/yr of iron ore) will be attained in 2015-16.

5.2 LAND USE PLANNING

Only 3.9508 Ha additional area will be degraded for development of road, plant & machinery. Entire mining operation will be confined within the existing broken area during the proposed scheme period. The land use in stages is given below:-

Particulars Existing Land use

At the end of Scheme period i.e. Yr 2019-20

Conceptual Stage

Mining 61.6300 61.8661 571.5560 Subgrade Dump - - - Waste Dumping - 22.7574 279.8401 Mineral Stacking & Processing 15.0330 15.0330 10.3419 Infrastructure, Plant & Machinery 10.4910 13.2765 20.7148 Roads 7.4171 11.4055 18.7326 Magazine with Safety Zone 91.9580 91.9580 91.9580 Statutory Safety Barrier 11.0661 11.0661 11.0661 Green belt/Rehabilitated area 0.8800 0.8800 0.8800 Tenant & Unauthorised Occupant Land 14.8729 14.8729 13.2190

Total 94.5711* 124.3385* 1018.3085

* Excl. Safety Barrier area, Magazine with safety zone, greenbelt and tenant/un-authorised occupant land

When the reserves are exhausted, the mine will be shut down as per the Approved Mine Closure Plan. Additionally, certain ancillary services (viz. Township, School, Ore sizing yard etc,) are located in Daitari Extension area over 340.82 ha outside Daitari ML area. Item-wise break-up of the land already broken-up/utilized for different purposes, is as follows:

Land utilization of Daitari Township block (ha) Sl.No. Pattern of Utilization Area

1 Construction of buildings, workshops, power stations, Township, housing colony 92.1114 2 Construction of road, rope-way, railway lines etc. 25.9786 3 Ore stacking and processing 86.3068 4 Water Reservoir 45.5717

Total 249.968

Land utilization of Conveyor gallery (ha) Location Pattern of utilization Total(in ha) Zone-1 Crushing and screening

plant (Plant-1 to 3) 3.149

Zone-1 Conveyor corridor (Corridor-1 to 8)

11.392

Zone-3 Left out area of OSCTC 48.96 Zone-4 Corridor-9 9.242

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

Location Pattern of utilization Total(in ha) Zone-5 Railway siding 1 to 5 29.129 Zone-6 - 0.158 Zone-7 Road 0.807 Zone-8 Road 1 to 10 & 12 3.179

Total 106.016

Land utilization of the left out area of OSCTC (ha) Sl. No. Pattern of Utilization Area (ha)

1 Administrative building, store, workshop, canteen, tyre, vulcanizing plant, pump house and public utility area.

9.45

2 Residential area, colony, hutment, electrical sub-station and public utility area. 5.64 3 Temple, public place and electrical sub-station. 1.13 4 Hutment for workers (Residential Area) and public utility area 10.03 5 School, market complex, play ground, water reservoir, Guest house, pump house

and public utility area 18.73

6 Roads 3.98 Total 48.96

48.96 ha under use by OSCTC verified broken prior to 25.10.1980 at Baliparbat

5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND

Most of the infrastructures required for the project are already in existence.

5.4 AMENITIES / FACILITIES

All basic amenities are already in existence.

6.0 PROPOSED INFRASTRUCTURE

The area is well connected by road and rail network. The area is self sufficient to cater the needs of the proposed project; hence, no additional area is proposed to be acquired. A new stand alone project of 1000 tph production capacity is proposed to be installed with mechanized wagon loading facility. Additionally, a 133 KVA transmission line will be required. Green Belt & Plantations: As part of the progressive green belt development and plantation, in year 2013-14 total number of plants afforested (outside lease area) was 1261 and in 2014 till now, the total afforestation done is 3000 plants. 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.

CSR Activities: OMC is already doing many jobs under Corporate Social Responsibility. Activities already taken up are in 2013-14 and ongoing in 2014-15 is as follows:

S.No. Activities Expenditure

(in Lakhs) For 2013-14 1 Health Check-up programme in proposed Adopted villages of Daitari Iron Ore

Mines = Rs. 2.00

2 Financial Assistance to RBT Adivasi Club Rs. 0.20 3 Financial Assistance to Baliparbat and Birsa Munda S.T. / S.C. Sangha Rs. 0.25 4 Financial Assistance for the Annual Grant-in-Aid to Daitari Public School for the

Financial year 2013-14. Rs. 3.50

For 2014-15

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Pre-Feasibility Report Expansion of Daitari Iron Ore Mining Project

1 Construction of Footpath Road from Dharasahi to Mundasahi via: Burusahi of

Rasol GP, Daitari, Keonjhar Approval of the CSR Committee of the Board held on 03.05.2014. intimated to AGM(Civil) to complete the erection work at an early date, but it is ascertained from the Civil Section that till date the tender work is not completed)

Rs. 30.00

7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN

No fresh area is to be acquired as all the workings have been proposed within the broken area only. Hence the project does not envisage R&R.

8.0 PROJECT SCHEDULE & COST ESTIMATE

8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION:

The mine is already producing at a rated capacity of 3 Mt/yr. The rated capacity of the mine 6 Mt/yr will be attained by the end of the scheme period, after receipt of necessary statutory clearances.

8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT

No massive injection of capital cost has been envisaged for development of Daitari iron ore lease except one new stand alone 1000 tph capacity crushing & screening plant, capital investment for monitoring of environment parameters etc. The capital cost envisaged for the next six years is Rs. 893.75/- Crore. The estimated production cost (including depreciation & interest) at 100% capacity utilization after proposed expansion will be ~ Rs 1061.48 per tonne at rated capacity (iron ore). The entire ore produced will be sold to long term buyers for use in their steel plants.

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

The project will have the following benefits:

The project will increase the supply of iron ore for the domestic steel industry. Daitari mine is the nearest iron ore source for the integrated steel plants in Kalinganagar Industrial Complex.

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 points coming up of the Daitari project has become necessary.

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