PRE-FEASIBILTY REPORT

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1 Aug 2018 PRE-FEASIBILTY REPORT OF M/S. J.M.R.MINES (MINING OF FELDSPAR, QUARTZ & MICA MINE) Lease Area : 5.78 Hectares(14.29 Acres) Sy.No.941,942,943 &947 Giddalur (V), Sydapuram (M), SPSR Nellore District Andhra Pradesh PREPARED BY M/S J.M.R MINES

2 1.0 INTRODUCTION M/s J.M.R Mines propose to mine Feldspar, Quartz and Mica Mine from an approved mining lease area over an extent of 5.78 Ha., in Sy.No.941,942, 943 & 947 of Giddalur Village, Sydapuram Mandal, SPSR Nellore District, Andhra Pradesh. The Proposed capacity is TPA. The area is situated at a distance of 0.9 kms from Idulapalli Village respectively. 1.1 SALIENT FEATURES OF THE PROJECT The mine lease area falls under the Toposheet No.57N/16 bearing following Toposheet details: Toposheet No: 57 N/16 S.No. Latitude Longitude '07.4"N 79 47'14.7"E '04.8"N 79 47'18.4"E '59.3"N 79 47'14.7"E '56.6"N 79 47'13.1"E '51.0"N 79 47'10.0"E '51.6"N 79 47'08.4"E '57.4"N 79 47'10.0"E '58.3"N 79 47'07.6"E '02.2"N 79 47'09.2"E '00.8"N 79 47'11.9"E The nearest railway station is Manubolu Railway Station is at kms from the mine lease area. The nearest airport is Tirupathi International airport at kms from the mining site.

3 SAILENT FEATURES OF THE PROJECT Nature of the project M/s J.M.R Mines Mining of Feldspar, Quartz & Mica Mine Size of the Project Maximum Production:13800 T/Annum Feldspar T/Annum Quartz-2156 T/Annum Mica-863 T/Annum LOCATION OF PROJECT District & State S.P.S.R Nellore District, Andhra Pradesh Village & Mandal Giddalur Village, Sydapuram Mandal, Land Availability 5.78 Ha., Nearest Village Idulapalli Village at 0.9 kms Ownership Patta Land Toposheet No. 57N/16 GENERAL CLIMATIC CONDITIONS Annual rainfall 1084 mm Min and max temp. 18 C and 42 C Avg. relative humidity 71% Predominant wind direction SW - NE HISTORICAL / IMPORTANT PLACES Nearest human settlement Idulapalli Village at a distance of 0.9 kms Nearest town Sydapuram Mandal at a distance of 8.82 kms Nearest railway station Manubolu Railway Statio kms Archaeological/Historically Important Site No historical movements exist in and around the quarry lease proposed area. Infrastructure Facilities Hospitals, schools and community facilities are available at 8.0 kms away from the mine site.

4 2.0 INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION 2.1 Identification of project and project proponent. In case of mining project, a copy of mining lease/letter of intent should be given. Details of Project Proponent: Name of Mine : M/s J.M.R.Mines ADDRESS OF THE MINE M/s J.M.R.Mines Extent: 5.78 Ha., Sy.No.941, 942, 943 & 947 Giddalur (V), Sydapuram (M), S.P.S.R. Nellore District. ADDRESS OF THE LESSEE M/s J.M.R.Mines Smt V.Revathi, Mg.Partner H.No.40, Narasimha Reddiar Nagar, 1 st Street, Kodungaiyur, Chennai Brief Description of nature of the project Initially, the mining lease was granted in favour of G.Balasubramanyam, over an extent of Acres in Sy.No.941, 942, 943 & 947 of Giddalur Village, Sydapura Mandal and SPSR Nellore District vide G.O.Ms No.1274 of Industries and Commerce (M.I) Dept., dated: , for a period of twenty years. The ML was executed from vide ADM&G, Nellore proceedings No.03/444/73, dated: The first renewal of the mining lease was granted for Mica over an extent of acres in Sy.No.941,942,943 & 947 of Giddalur Village, Sydapuram Mandal and SPSR Nellore District in favour of G.Balasubramanyam, vide G.O.Ms No.299 of Industries and Commerce (M.I) Dept., dated: , for a period of twenty years. The mining plan was approved by R.C.O.M & Indian Bureau of Mines, Hyderabad, vide Letter No.659(219)/MC/96/NLR dated:

5 The mining lease was transferred on in favour of M/s J.M.R Mines, vide ADMG, Nellore proceedings No.4801/M2/97 dated: the lease period up to After, the inclusion of minerals Quartz, Feldspar and vermiculite as additional minerals to the existing mining lease for mica held by M/s J.M.R Mines over an extent of acres in Sy.No.941,942,943 & 947 of Giddalur Village, Sydapuram Mandal and SPSR Nellore District, vide ADMG, Nellore proceedings No.4801/M2/1977, dated: M/s J.M.R Mines, it s Mg.Partner M.Revathi applied for the renewal of the mining lease for Mica, Quartz & Feldspar, over an extent of acres in Sy.No.941,942, 943 & 947 of Giddalur Village, Sydapuram Mandal, SPSR Nellore District. The four years of the plan period i.e to already lapsed. Hence, the proposals are made for ensuing balancing one year i.e The mining plan was approved vide Lr.No.2731/MS/NLR/2017, dated Need for the project and its importance to the country and or region. In the present scenario, the Mica, Quartz, Feldspar has good market in the country for domestic consumption. 2.4 Demand-supply Gap. There is a demand of Quartz, Feldspar and Mica is ever growing with the growth of industrial sector in the country specifically ceramic and abrasive areas. The requirement of the mineral is always found high in adjoining areas. There is export demand also for these minerals. 2.5 Imports V/s Indigenous production Feldspar, Mica and Quartz mined from the proposed project will be exported or imported based on the supply demand scenario. It is found that market for these minerals is very much promising in present situation and consistent growth is anticipated with the growth in ceramic and glass industrial sector.

6 2.6 Export Possibility The minerals are having international demand for its wide application in ceramic industrial sector and therefore there is export possibility of these minerals. 2.7 Domestic/ Export Markets The Quartz & Feldspar of this area is not met for captive use. The mineral Quartz will be sold to the Ferro Alloy Industries. Foundaries, Ceramics and to Glass Industries. Feldspar will be sold to the ceramic industries. 2.8 Employment generation (Direct and Indirect due to the project) The proposed project will generate direct employment to 18 people of the poorest section of the society, while benefiting further more people indirectly. 3.0 PROJECT DESCRIPTION 3.1 Type of project including interlinked and interdependent projects, if any The proposed mining project is mining of Quartz, Feldspar & Mica manual. It is done manually and is transported through vehicles. 3.2 Location The above said quarry lease falls in Topo sheet No.57N/16. The Quarry lease area is located at a distance of about 0.9 kms from Idulapalli Village. The Q.L area is connected by Sydapuram-Podalakur Road.

7 GOOGLE MAP 3.3 Details of alternate sites considered The mineral is site specific, hence there are no alternative sites considered. Mining activities are carried out based on local geology and availability of the mineral. 3.4 Size or magnitude of operation The proposed mine has lease over an area of 5.78 Ha., The total extractable material would be approx TPA. (II) The year wise production proposed is shown in the following table. Year ROM Mica 4%in Quartz 10% in Feldspar Sub Grade Production Volume Tons Tons 50% in 36% in in Tons (M 3 ) Tons TOTAL

8 Life of Mine/Quarry: Life of Mine = Total Mineable reserves Average Production per year = T 21563T = say 15 years 3.5 Project description with process details: It is proposed to operate the mine by manual method B Category an open cast mining with systematic & scientific method of mining. Bench Height and width shall be maintained at 3m & 4m respectively as per the statutory requirements and slope of benches will be maintained at The lessee proposes to produce Mica, quartz and Feldspar by drilling and blasting for progressing benches and for handling of ore/waste material. However Drilling& blasting techniques will be used for hard formations only. The ore body is blasted and loaded by small excavator into tippers of 10 Ton capacity and transported to the end users and dump yards. 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 No raw material will be required in the proposed project. Except removal of overburden, no mineral processing will be carried out in the mine lease area. 3.7 Resource optimization/ recycling and reuse. Minerals are depleting asset once mined, they cannot be replenished like agriculture, vegetation thus a scientific approach will be taken up in exploitation of mineral with systematic method. Mining work will be carried out by open cast method. Sub grade ore will be kept separately and would be blended with high grade to make it saleable. The feldspar, quartz and mica waste during operation which is weathered pegmatite is generated. The soil overburden will be stored separately. The total quantity of rejects expected to generate during plan period is dumped in waste dump yard. Waste will be refilled in excavated area. As no fresh excavation is done during and also mining activity is confine to a limited area, no reclamation is proposed. The dumps are mainly

9 constituted of soil and quarry waste. It will be back filled in the quarry pits after excavation of the mineral. 3.8 Availability of water its source, energy/ power requirement and source Water Requirement Around 7.0 KLD of water will be required for the proposed project and will be met through water tankers. Water is required in the mine for spraying on the roads and working faces to suppress the dust. Also a small quantity of drinking water is required. S.No Description Fresh water Waste water Disposal 1. Domestic 1.0 KLD 0.8 KLD Septic tank followed by soak pit 2. Green belt 3.0 KLD Dust suppression 3.0 KLD Total 7.0 KLD 0.8 KLD 3.9 Quantity of wastes to be generated (liquid and solid) and scheme for their management/ disposal Solid Waste Generation& its Disposal The Quartz and Feldspar soil is also utilized in the cement industry. Year Sub 36%(T) Total Liquid Effluent 0.8 KLD of domestic effluent will be generated at the mine site. Domestic Waste Water generated will be send to septic tank followed by soak pit. 4.0 SITE ANALYSIS 4.1 Connectivity The quarry lease area is connected by Sydapuram-Podalakur Road.

10 4.1.1 Nearest Railway Station The nearest Railway Station is Manubolu Railway Station is at kms s from the mine location Nearest Airport The nearest airport facility is available at Tirupathi airport which is about kms away from mine Nearest Highway. Nearest National Highway-5 at a distance of kms from the mine site. 4.2 Land form, land use and land ownership During the ensuing scheme period an area of 5.78 Ha., mining will be done as per approved mining plan. Measures will be taken for the reclamation only after the end of mining scheme period. 4.3 Existing land use pattern Area Hectares Area under Mining 0.50 Infrastructure 0.10 Gren Belt -- Dumps -- Roads -- Mineral Stacking -- Magazine -- Total Area Utilised 5.18 Total Mine Lease Area 5.78

11 4.4 Existing infrastructure There is no major construction is seen near to the mining lease area. An office/rest shelter for the labors shall be made. 4.6 Soil classification The top layer of anticline comprises Feldspar, Quartz and Mica deposit with 10 to 100 mtrs depth. 4.7 Climatic data from secondary sources CLIMATE & RAINFALL The area is falling under Semi Arid Tropical Zone. The area is having dry climate. The minimum temperature recorded in mandal Head Quarter is 18 0 C in December and maximum temperature in May month is about 42 0 C. The general wind direction is South West to North East. The average normal rainfall of the district is 1084 mm. 4.8 Social infrastructure available The lessee has provided office-rest shelter complex inside of the ML area in extent of 1000 m 2. The lessee is providing drinking water supplied by village panchayath, first aid facilities to their workers and private medical practitioner. They have developed very good plantation around their buildings and created good atmosphere. 5.0 PLANNING BRIEF 5.1 Planning concept (Type of industries, facilities, transportation etc) Town and Country Planning/Development authority Classification. It is proposed to produce tons of pegmatite during next one year plan period from an area of 2500 m 2. Benches of 3 m height will be developed during scheme period. 5.2 Population projection The project will employ nearly 18 workers from nearby villages. Thus, there will not be any increase in population due to the project.

12 5.3 Land use planning: Land use planning explained under existing land use pattern. 5.4 Assessment of Infrastructure Demand (Physical and Social) Safety equipments, small rest shelter and first aid facilities will be made available for the workers in the mine lease area. 5.5 Amenities/facilities The following facilities will be extended by the mine management: i. Direct and indirect Employment. ii. Arrangement for safe and healthy working conditions. iii. Provision of drinking water. iv. Conducting medical camps for workers and nearby villagers at regular intervals. v. Providing personal protective equipments (PPE) 6.0 PROPOSED INFRASTRUCTURE 6.1 Industrial area (Processing Area) No Mineral processing will be carried out in the mine lease area. After excavation, the Quartz, Mica, Feldspar will be dispatched as per orders. 6.2 Residential area (Non Processing Area) The mine workers will be hired from nearby villages, so residential areas will not be made. 6.3 Green belt Plantation will be made at open places and along the approach road. 6.4 Drinking Water Management Water Requirement for drinking purpose is 1.0 KLD which will be supplied by water tankers. 6.5 Sewerage System Domestic waste water generated will be send to septic tank followed by soak pit.

13 6.6 Industrial Waste Management Not Applicable 6.7 Solid Waste management Not applicable as on mineral rejects. Only 7763 tons of sub grade material is anticipated in this plan period. It will be dumped on proposed dump yard. 6.8 Power Requirement & Supply/ Source Not Applicable. 7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN 7.1 Policy to be adopted (Central/State) in respect of the project affected persons including home out sees, land out sees and landless laborers (a brief outline to be given) No human settlements are existing in the ML area and no humans will be displaced from the area so the proposed project does not involve any rehabilitation and resettlement. 8.0 PROJECT SCHEDULE & COST ESTIMATES 8.1 Likely date of start of construction and likely date of completion (Time schedule for the project to be given) The project will commence once Environmental Clearance and other necessary certificates are obtained from the respective departments. 8.2 Estimated project cost along with analysis in terms of economic viability of the project. The cost of the project : 60.0 Lakhs EMP Cost : 6.0 Lakhs

14 9.0 ANALYSIS OF PROPOSAL (Final recommendations) 9.1 The project will bring economical benefits to the state by the ways of royalty of mineral. The mining operations shall be providing employment to people per day of the poorest section of the society and benefitting further people indirectly through mineral based industries and people related form product to end consumer. On the other hand, a large number of people are getting employment in mine directly or indirectly and by this way socio economic conditions in the region will improve slightly. Considering the market potential for the products, employment provision, mine plan, risk free operations and availability of infrastructure, it is recommended that the operations are feasible economically, technically, and environmentally. Significant contribution will be made towards education, medical facilities and cultural aspects. Mining will create awareness amongst the people for education and general up liftment particularly in the women folk.