PRE FEASIBILITY REPORT FOR PROPOSED EXPANSION & LEASE RENEWAL OF BAGIABURU IRON ORE MINING PROJECT

Transcription

1 THE ORISSA MINERALS DEVELOPMENT COMPANY LIMITED PRE FEASIBILITY REPORT FOR PROPOSED EXPANSION & LEASE RENEWAL OF BAGIABURU 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 INDIA

2 THE ORISSA MINERALS DEVELOPMENT COMPANY LIMITED PRE FEASIBILITY REPORT FOR PROPOSED EXPANSION & LEASE RENEWAL OF BAGIABURU 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 INDIA 11.S F 2165 September, 2014

3 Pre-Feasibility Report for Reopening of Bagiabauru Iron Ore Mining Lease CONTENTS Chapter Nos. Title Page Nos. Executive Summary 1 1 Introduction 3 2 Introduction of the Project / Background Information 5 3 Project Description 7 4 Site Analysis 12 5 Planning Brief 14 6 Proposed Infrastructure 15 7 Resettlement and Rehabilitation Plan 16 8 Project Schedule and Cost Estimate 16 9 Analysis of Proposal (Final Recommendation) 17, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Contents Page i of iii

4 Pre-Feasibility Report for Reopening of Bagiabauru Iron Ore Mining Lease DRAWINGS Drawing No. MEC/Q761/11/S2/(1)T1 MEC/Q761/11/S2/(1)T2 MEC/Q761/11/S2/(1)T3 MEC/Q761/11/S2/(1)T4 MEC/Q761/11/S2/(1)T5 Title Mine lease area superimposed on toposheet Geological Plan Geological sections Surface Plan Conceptual Plan PHOTOS Photo No. Title Page Nos. 1 Bagiaburu North Quarry (as in Sept., 2014) 10 2 Plantation in Safety Zone 15 3 Drinking Water Supply System Constructed by OMDC 17 4 Distribution of Bicycles to School Girls by OMDC 17 APPENDIXES Appendix Nos. Title 1 Copy of covering letter - Approval of Mining Plan 2 Copy of Resolution by circulation No. OMDC/RESL/6/2014 dated Copy of the Court order of the J.M.F.C., Barbil (Case no.115 / 2013) 4 Copy of Stage I Forest Clearance Letter, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Contents Page ii of iii

5 Pre-Feasibility Report for Reopening of Bagiabauru Iron Ore Mining Lease ABBREVIATIONS AMSL ANFO BHJ BHQ CSR DGMS EIA EMP Fe ha HEMM HSD IMD l hr m 3 ML Mn MoEF Mt t / yr OB OMDC PF R & R RF RINL t ToR TPH UNFC Above Mean Sea Level Ammonium Nitrate Fuel Oil mixture Banded Hematite Jasper Banded Hematite Quartz Corporate Social Responsibility Directorate General of Mines Safety Environmental Impact Assessment Environmental Management Plan Iron hectare Heavy Earth Moving Machinery High Speed Diesel India Meteorological Department litre hour Cubic Metres Mining Lease Manganese Ministry of Environment and Forests, Govt. Of India Million tonnes Tonnes per year Overburden Orissa Mineral Development Company Limited Protected Forest Rehabilitation and Resettlement Reserved Forest Rashtriya Ispat Nigam Limited tonnes Terms of Reference Tonnes per hour United Nations Framework Classification, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Contents Page iii of iii

6 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease EXECUTIVE SUMMARY Bagiaburu Iron Ore Mining Lease is spread over ha in Barbil Tehsil of Keonjhar District of Odisha. The lease area is located ~2 km from the Odisha Jharkhand interstate boundary. The mine is located entirely within Uliburu Reserve Forest. Stage I Forestry Clearance has been received from the Regional Office, Bhubaneswar of MoEF. The Bagiaburu M.L area was executed in favour of The Orissa Minerals Development Company Ltd. (OMDC) on for a period of 20 years with effect from The lease was expired on The application has been made on for the renewal of mining lease for another term of 20 years. Since execution of the lease, the mine has operated intermittently with a maximum annual production of 67,100 t/yr. The mine is closed since due to want of Environmental and Forestry Clearances. The mine is an open cast mine with 2 existing quarries. Both the quarries have 4 benches. The benches are 6 m wide and 6 m high. The present proposal envisages resumption of 0.36 Mt/yr of iron ore. Mining will be carried out by drilling, blasting and excavation of ore and overburden by combination of 0.9 m 3 capacity hydraulic shovels and 10 t dumpers. The existing quarries will be expanded and the number of benches will be increased. Ultimately the quarries will be merged. Mobile in-pit crushers will be in operation for crushing and screening ore. The expected life of the mines is 17 years. Crushed and screened ore will be dispatched by trucks to nearby railway siding. Presently there are two external dumps. On resumption of mining the entire overburden generated during the first 5 years will be dumped externally on the existing dumps. From the 6 th year till end of mining the entire quantity of overburden (including the accumulated overburden) will be used for backfilling. Sub-grade ore will be stacked separately and blended with higher grade material. The salient features of the project include: Proposal Location of Mine Latitude Longitude Resumption of iron ore 0.36 Mt/yr from existing open cast mine without increase in ML area of ha In Uliburu Reserve Forest (Barbil Range of Keonjhar Forest Division). Tehsil Barbil, Dist Keonjhar, Odisha 22⁰ N to 22⁰ N 85⁰ E to 85⁰ E Land Use 100% Forest Land. (Stage I Forestry Clearance Received) Total Mineable Reserves million tonnes (Mt) of iron ore (+58% Fe) Life of Mine 17 Years Method of Mining Semi mechanized Open cast mining by conventional shovel dumper combination Quarries 2 numbers of quarries to be worked simultaneously. Stripping Ratio (t:m 3 ) 1:0.05 Waste disposal During 1 st 5 years external dumping. From 6 th year onwards OB will be used for backfilling. Sub-grade ores will be either stacked externally or blended with higher grade ores. Mineral Processing Crushing and screening by mobile in-pit crushers Mineral Transport By 10 t dumpers to railway siding in adjoining Thakurani lease Number of working days 300 days, 3 shift per day Fuel Consumption Existing Nil; Proposed: 165 kl/yr Explosive Consumption Existing Nil; Proposed: 60 t/yr (@ 7 t of ore per kg of explosives) Water Demand 50 m 3 /day (inclusive of 10 m 3 /day potable water) Source of water River Karo (industrial) and Potable (Bore well) Man Power 250 (10 officers & supervisors + 72 skilled workers + 96 semiskilled workers + 72 unskilled workers), 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 1 of 17

7 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Electricity Demand Infrastructure Proposed Investment Production Cost CSR Budget Existing Nil; Proposed: 35 kw for illumination, operation of weighbridge, surveillance system & water pump Mine office, first aid centre has to be refurbished. Rest shelters have to be constructed. Workshop, stores, railway siding, township & amenities common with other leases of OMDC located in the area. Rs Crores Rs.1205 per tonne at rated capacity Total Rs. 89 lakhs for year for OMDC s mines in Joda Barbil Area (Bagiaburu, Belkundi, Dalki, Thakurani, Bhadrasahi & Kolho Roida) The ore from Bagiaburu Mine will increase the supply of iron ore to India s domestic steel manufacturers. The project will also generate much needed employment. Majority of the people employed at the mine will be local residents.. Economy of the area will get a boost and there will be overall growth of the region in terms of education, health, training and transport etc. The local people s standard of living is also expected to improve., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 2 of 17

8 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease 1.0 INTRODUCTION This is Pre-Feasibility Report, which has been prepared as Part of the Application for Terms of Reference Environmental Impact Assessment and Environmental Management (EIA / EMP) studies for the proposed reopening of Bagiaburu Iron Ore Mine of The Orissa Minerals Development Company Limited (OMDC) with a rated capacity of 0.36 Mt/yr. The lease area measures ha and is located in Uliburu Reserve Forests in Barbil Tehsil of Keonjhar district of Odisha. This report has been prepared as specified in Ministry of Environment and Forests (MoEF) Guideline No. J / 41 / 2006 IA.II (I) dated 30 th Dec., In pursuance of Government of India policy vide Environment (Protection) Act, 1986 new projects or expansion of any existing plant 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 MoEF EIA Notification dated , 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 MoEF in the prescribed format (Form I) along with a Pre-Feasibility Report. In view of above, the Pre-Feasibility report has been prepared for seeking Approval for Terms of Reference for the EIA / EMP Studies for the proposed reopening (with increased capacity) of OMDC s Bagiaburu Iron Ore Mine from Ministry of Environment and Forests (MoEF), Govt. of India. The EIA/EMP report will also facilitate lease renewal and other related regulatory clearances as required, in addition to meeting environmental mitigation needs for Bagiaburu Iron Ore Mine. The application for Terms of Reference (ToR) for the project had been submitted to Ministry of Environment and Forests, Govt. of India in The matter was however referred to the State Environmental Impact Assessment Authority (SEIAA), Odisha. The SEIAA issued ToR for the EIA study for the project in The Environmental Public Hearing was held on 25 th February, The SEIAA recommended the project for Environmental Clearance on 17 th Nov., 2011 subject to submission of Stage I Forestry Clearance by 16 th Nov., The date was extended to 16 th, May, OMDC could submit the Forestry Clearance only by Nov., OMDC was advised to submit a fresh Application for the project. The SEIAA duly examined the proposal on 14 th May, It was noted that the project was located less than 10 km of the Odisha Jharkhand inter-state boundary and hence the project was Category A project i.e. outside the jurisdiction of the SEIAA. The SEIAA referred the matter to MoEF, New Delhi on 3 rd July, OMDC has decided to submit a fresh application to MoEF and has engaged the services of MECON Limited a Public Sector Undertaking under the Ministry of Steel, Govt. of India to prepare a Pre-Feasibility Report as the first step for seeking Environmental Clearance for the Bagiaburu iron Ore Mine. This report contains information on the proposed reopening and expansion of the mine. The report including this introduction chapter includes: Introduction of the Project / Background Information Identification of the Project and the Project Proponent Brief Information of the Project Need for the Project and its Importance to the Country or Region Demand and Supply Import vs. Indigenous Production Export Possibilities Domestic / Export Market Employment Generation Project Description Type of Project including Interlinked and Interdependent Project, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 3 of 17

9 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease 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 OMDC and for the active interest and help extended by OMDC officials., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 4 of 17

10 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease 2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION : 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT: Bagiaburu Iron Ore Mine is spread over ha, entirely within Uliburu Reserve Forest, in Barbil Tehsil of Keonjhar District Odisha. The mine is closed since for expiry of lease and want of Environmental and Forestry Clearances. It is proposed to resume open cast mining operations with a maximum production of 0.36 Mt/yr of iron ore. Bagiaburu Iron Ore Mine is owned by The Orissa Minerals Development Company Limited (OMDC). OMDC owns / operates six iron and manganese ore mining leases in the Joda Barbil Region in Keonjhar District of Odisha. Presently all of these mines are closed for various reasons. The company has recently been allotted a coal block in the Talcher Coalfield area in Odisha. OMDC was incorporated on 16 th August, The company was nationalized by the Government of India by virtue of the Bird & Company (Acquisition and Transfer of undertaking and other properties) Act, 1980 (Act 67 of 1980). OMDC became Schedule B Public Sector Undertaking with effect from 19 th March, 2010 as a subsidiary of Eastern Investment Limited, which in turn became a subsidiary of RINL with effect from 5 th January, RINL is a Navaratna public sector undertaking under Ministry of Steel, Government of India. RINL is one of the leading steel makers in the country and is having integrated steel plant at Vishakhapatnam, whose capacity is being increased from 3.6 Mt/yr to 6.3 Mt/yr. The lease deed for Bagiaburu M.L was executed in favour of The Orissa Minerals Development Company Ltd. (OMDC) for a period of 10 years ( to ). Subsequent renewal was executed for 20 years ( to ). The renewal application for next 20 years ( to ) has been submitted on Mining Plan has been approved by IBM vide letter no MP/OTF-MECH/07-ORI/BHU/ dated (copy enclosed as Appendix 1). The proposed rate of production is 0.36 Mt/yr of iron ore. The estimated project cost is Rs Crores. The expected life of the mine is 17 years. 2.2 BRIEF INFORMATION OF THE PROJECT: Bagiaburu Mine is an open cast iron ore mine located on the outskirts of Barbil town in Keonjhar District of Odisha. The lease area is spread over ha, which is located entirely in Uliburu Reserve Forest. The mine is closed since The maximum annual production prior to 1994 was 552 t (in ) whereas after 1994 the same was 67,100 t ( ). Since this is a case of violation, the following necessary actions have been taken in accordance with the relevant procedures laid down in Ministry of Environment and Forests Office Memorandum No. J / 41 / 2006 IA.(II)I dated 12 th Dec., a) The matter relating to the violation has been put to the Board of Directors of the Company and a Resolution has been adopted stating OMDC undertakes to take the necessary measures to confine the production within the permitted quantity and will ensure that violation of Environment (Protection) Act, 1986 will not be repeated (copy of Board resolution is enclosed as Appendix 2). b) On the basis of a letter from Govt. of Forest & Environment Department the Office of The Collector & District Magistrate, Keonjhar has initiated legal action against OMDC u/s 19 of Environment (Protection) Act, 1986 for violation of the provisions of E.I.A. Notification 1994 / E.I.A. Notification 2006 and u/s 15 of the said Act by filing a case in the Court of the J.M.F.C., Barbil (Case no.115 / 2013; copy is enclosed as Appendix 3). Thus, provisions laid down in Ministry of Environment and Forests Office Memorandum No. J / 41 / 2006 IA.(II)I dated 12 th Dec., 2012 have been attended. It is proposed to reopen the mine with a rated capacity of 0.36 Mt/yr of iron ore. Ore produced at the mine will be sold through e-auction. Water requirement for the proposed project for industrial purposes has been estimated to be 40 m 3 /day, whereas potable water demand has been estimated to be 10 m 3 /day. The industrial water will be drawn from Karo River flowing 2.6 km beyond the lease s western boundary. The potable water will be drawn from bore-wells., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 5 of 17

11 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease A Safety Zone has been maintained all along the lease boundary as the Green Belt. 2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY OR REGION: OMDC has six iron and manganese ore mining leases, all of them located in the Joda - Barbil region of Keonjhar District of Odisha. All these mines are closed for various reasons. Consequently the company s resources are idle badly affecting the company s financial conditions. Reopening of Bagiaburu Mine will have the following benefits: Increase the supply of iron ore for India s domestic steel producers. Some of OMDC s idle machinery, infrastructure and manpower will be reactivated. The mine will generate additional employment, both direct and indirect which will lead to economic growth 2.4 DEMAND AND SUPPLY GAP : The major application of iron ore in India is for manufacture of iron and steel. India is one of the major producers and exporters of high grade iron ore. In , India s iron ore production was Mt. The major iron ore producing states are Odisha, Jharkhand, Chattisgarh, Karnataka and Goa. India is world s 3 rd largest iron ore exporter after Australia and Brazil. India s iron ore exports were18.37 Mt (~13.5%) in 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 and about 500 Mt/yr by 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. The iron ore produced from Bagiaburu will be sold to domestic steel producers. 2.5 IMPORT VS INDIGENOUS PRODUCTION : In , India s iron ore production was Mt of which Mt (i.e. about 13.5%) was exported. 2.6 EXPORT POSSIBILITIES : The Iron Ore produced from this Project will be used for domestic consumption. 2.7 DOMESTIC / EXPORT MARKET : The iron ore is used in the iron & steel industry. It is a basic raw material 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 ) is exported. 2.8 EMPLOYMENT GENERATION : Bagiaburu Mines will be headed by the Mines Manager who will be the responsible for the supervision, control and management of the mines. All statutory supervision i.e. Mines Foreman, Mining Mate etc. will be employed as specified in the Metalliferrous Mines Regulation, Employment potential at Bagiaburu Iron Ore Mine is as follows: Sl. No. Category No. of Persons 1. Officer 4 2. Supervisors 5 3. Surveyor 1 4. Skilled worker Semi skilled worker Un-skilled worker 72 Total 250, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 6 of 17

12 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Majority of the workers will be local persons. The officers, supervisors and rest of the workers will be housed in OMDC s townships, either at Nalda or Thakurani. 3.0 PROJECT DESCRIPTION Bagiaburu Mine started operation in The mine operated intermittently up to with maximum production of 67,100 t/yr during Year wise production (1989 to 2010) Period Iron Ore Production (t) TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECT: Although the lease area ( ha) is less than the stipulated 50 ha, the project is under Category A since the lease is located within 10 km of an Inter-state boundary (Odisha - Jharkhand boundary), as per General Conditions. 3.2 LOCATION: The Mining lease area is located at Uliburu R.F. under Barbil Range of Keonjhar Forest Division in Barbil Tehsil of Keonjhar District, Odisha. The mining lease area falls under Toposheet No. 73F/8 between Latitudes 22⁰ N to 22⁰ N and longitudes 85⁰ E to 85⁰ E. The location of project is shown in Drg.No.MEC/Q761/11/S2/(1)T1 3.3 DETAILS OF ALTERNATE SITE : Since the proposed project envisages reopening of an existing mine, possibility of alternate site is out of question. 3.4 SIZE AND MAGNITUDE OF OPERATION : The present proposal envisages resumption of mining with a rated capacity of 0.36 Mt/yr of iron ore. The rated capacity will be attained in the 5 th year of operation. There is no proposal to increase the lease area of ha., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 7 of 17

13 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease 3.5 MINE DESCRIPTION : Geology: Bagiaburu Mine occupies the western flank of the eastern limb of the Horse Shoe shaped synclinorium, otherwise known as Singhbhum-Bonai-Keonjhar Iron Ore belt. Geologically the terrain forms a part of the oldest metasedimentary formations which are correlated with Precambrian of the Indian Geological succession. The rocks belong to the Iron Ore Group (IOG) and are comprised of schists, tuffs, phyllites, basic rocks, BHQ/BHJ, shale along with iron and manganese ore. The regional stratigraphic succession has been established as follows: Newer Dolerite Mayurbhanj Granite Gabbro anorthosite Ultramafic intrusions Kolhan Group Unconformity Dhanjori Group Jagnnathpur lava Unconformity Chaibasa formation Unconformity Singhbhum Granite Unconformity Iron ore group Unconformity Older metamorphic gneiss Unconformity Older metamorphic group Lithology: Broadly, three groups of rock types can be recognized in the area. They are as follows: Group consisting primarily of basic volcanics and green stones which have undergone a low grade of metamorphism. Group consisting essentially of argillaceous and tuffaceous suite of rocks of very low grade metamorphism and having workable manganese concentrations. Group comprising essentially iron formations rocks, which are now mostly BHJ and afterwards concentrated to iron ore deposits in selected areas. Lateralization is a very common feature in almost all the rock types. Iron ore deposits are generally located directly on shales, tuffs at or near the top of hill ranges. But the manganese concentration fringes the iron ore bodies on the inner slope of synclinorium. Frequently detached/isolated bands/lenses bodies of hematitic quartzites/ jaspers/ cherty formations are commonly observed. These formations/detached bands occur generally in conformity with the surrounding rocks. However, it is not possible to decipher any marked pattern amongst these patches, if analyzed on a macroscopic or mesoscopic scale. The general trend of rock formation is observed with the strike of NNE-SSW and dip of 0 0 to 90 0, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 8 of 17

14 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Local Geology Most of the area is covered with laterites. However, the local stratigraphy of the area may be given as follows: Soil and Alluvium Laterite BIF (with iron ore) Shale Soil and Alluvium: Around 10% of the lease area is covered by the soil and alluvium at lower levels. Laterite: This is the common litho unit observed in the region. This is out cropped as well as intercalated with in float/lateritic iron ore and is considered as waste materials. BIF (with iron ore) : BIF (Banded Iron Formation) consisting of the siliceous rocks such as BHJ (Banded Hematite Jasper) and BHQ (Banded Hematite Quartzite) forms the proto ore or the primary rock where rhythmic banding of silica and iron ore is noticed. Because of high silica, these rocks are not used presently for metallurgical purpose. The secondary processes like leaching out of silica bands from BHQ/BHJ have given rise to the thinly laminated biscuity iron ores. Infilling of the voids with iron-oxides and subsequent compaction yields bouldary iron ore. At places, laterite is enriched with Fe content. This has been classified as lateritic ore. Wide variation in Fe content is observed due to variable degree of enrichment of iron in lateritic ore. Soft as well as hard laminated ore occurs at depth. Iron ore stretches along NE- SW direction dips at 30 o -40 o due NW. Shale: This is the bottommost litho unit. The bottom shale is directly exposed and is overlain by iron ore in north and southern side Mineral Reserves: The reserves as on are as follows: Category Mineable Reserve (t) Proved 3,568,415 Probable 1,338,750 Possible 635,250 Total 5,542,415 Reserve & Grade as per United Nations Framework Classification, Geological Reserve is Coded as follows: Reserve/ resources Type UNFC Code Iron Ore (t) Reserves Proved 111 3,568,415 Probable 121 1,338,750 Sub-Total (a) 4,907,165 Remaining resources Feasibility Prefeasibility Measured ,250 Indicated ,750 Inferred ,250 Reconnaissance ,500 Sub- Total (b) 939,750 Total (a + b) --- 5,846,915 Average grade of Iron ore is observed to be % Fe. Cut-off grade is 58% Fe. Surface Geological Plan and Section of the lease are enclosed as Drg. Nos. MEC/Q761/11/S2/(1)T2 and MEC/Q761/11/S2/(1)T3 respectively., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 9 of 17

15 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Mining: Bagiaburu is an open cast mine, where mining is carried out by drilling, blasting followed excavation of loosened material by hydraulic shovels and loading them onto tipper trucks. 100mm dia. DTH drill 0.9 m 3 / 2.2 m 3 capacity shovel and 10t/25t capacity tippers will be deployed. A total of two (2) quarries have been developed over an area of hectares. The details of the quarries have been incorporated as follows: Sl. No. Name of Quarry Length (m) Width (m) Area (ha) No. of benches 1 North South Photo 1: Bagiaburu North Quarry (as in Sept., 2014) On account of exposures of iron ore and its limited depth of occurrence, open cast Category-A (other than semi mechanized) method of mining will be continued on three shift basis. North & South quarries will be merged in to a single quarry later. Height and width of the benches will be kept at 6m each to maintain final slope angle of the pit at around 45 o with the horizontal and to recover optimum amount of iron ore at the close of life of the mine. Blasting will be done by charging of the shot/blast holes drilled either in single or multi rows on staggered pattern. 0.9 m 3 / 2.2 m 3 capacity excavators is/will be used for excavation & loading of the blasted materials in to 10t/25t capacity tippers which will unload it into the hopper of the 150tph capacity (3 shift operation) crusher unit. Height and width of the benches will be kept at 6 m each. The bank slope angle will be 75 o 85 o whereas the overall quarry slope angle (the angle between the line joining the toe of bottom bench and the crest of the top bench with the horizontal) is proposed to be maintained at around 45 with the horizontal. The mine has been designed for maximum rated production of 0.36 Mt/yr with an anticipated stripping ratio of 1:0.05 t/m 3 and external dumping for the first 5 years. The life of the mine will be 17 years., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 10 of 17

16 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease For Production of ROM and removal of Overburden Name of Equipments No. of shift operation No of equipment Excavator 0.9 m 3 1 Excavator2.2 m 3 1 Tipper 10 t 4 Tipper 25t 3 4 Drill Machine 100mm 2 Dozer 180 hp 1 Water Sprinkler 1 Diesel Browser 1 Rock Breaker Attachment 1 1 Water Pump 2 1 For Crushing & Screening Sl No Activity Machine Required (Nos) 1. Screening & Crushing Feeding and finished product shifting to the Designated Plot 2. Crushing & Screening of Iron Ore Material Stacking, shifting of finished product from Mobile unit Transporting of Ore & other Misc. Job (as and When required) Hydraulic Loading Shovel (Backhoe) 01 No. of shift operation 2 Minimum capacity 1.2 m 3 bucket capacity Mobile Crushing & Screening Plant TPH Loader m 3 Dumper t Mobile Crushing & Screening Plant No. of working Days in a Year 300 Days No of Shift per day 2 No. of working hours in a shift 8 Hours Plant Availability 80 % Plant Capacity Utilization 80 % No. of operating hours per year 3072 Hours No. of effective working hours per year 3000 Hours Ore to be crushed MT ROM Feed Size -400 mm. Product Size -30, +10 mm; -10 mm. -18, +5 mm. ; -5 mm. mm. Designed capacity of Crusher Plant Nominal Capacity 120 TPH Designed Capacity -150 TPH The existing surface plan of the lease is enclosed as Drg. No. MEC/Q761/11/S2/(1)T4. The surface plan at the end of work is shown as Drg. No. MEC/Q761/11/S2/(1)T5. The mine will work 300 days per year with three daily shifts. The expected life of the mine is 17 years. 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., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 11 of 17

17 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Mineral Processing: ROM iron ore production from the mine is fed into the crushing and screening unit for sizing and sized materials will be loaded onto dumpers and dispatched to nearby railway siding in Thakurani lease. The recovered iron ore will be regularly sampled to determine its quality. Mobile crusher and screening plant will be set up within the lease to separate lumps and fines Mineral Transport: The iron ore recovered from Bagiaburu will be dispatched by 10 t tipper trucks to nearby railway sidings either at Thakurani Lease or at Barbil, for loading onto railway wagons. 3.6 RAW MATERIALS : The only raw materials consumed in the project are fuel (HSD) and explosives. The fuel consumption in the mine operating at full capacity is estimated to be 165 kl/yr. The explosives consumption is expected to be 60 t /yr (powder factor of 7t of ore per kg of explosives). OMDC s centralized fuel storage facilities and explosives magazine located in Thakurani Lease will cater to the needs of Bagiaburu lease also. 3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE : OMDC has developed centralized work-shop, stores, medical unit at its Thakurani lease for its mines in the Joda Barbil Region. Townships with all amenities have been developed at Thakurani, Kolho Roida and Nalda. Railway sidings are available at OMDC s Thakurani lease. This infrastructure will serve the requirements of Bagiaburu also. 3.8 SITE SERVICES: Water Requirement: 30 m 3 /day of water will be required for dust suppression operations. Another 10 m 3 /day of water will be required for irrigation of plantations and green belt. 10 m 3 /day of potable water will be required for mine drinking water, pit head baths, canteen etc. The industrial water will be drawn from Karo River whereas the potable water will be drawn from bore-wells Power Requirement: As all machinery shall be diesel powered, no power shall be required for mine operations. However, an estimated 35 kw of electricity shall be required for illumination, weighbridge, operation of surveillance system and operation of water pump. This power shall be drawn from the grid through OMDC s adjacent Belkundi Lease Amenities: The mine shall have a site office. Rest shelters with drinking water facilities, toilets, bathing and washing facilities and canteen shall be provided. There shall be a First Aid Centre with an ambulance always available. Other amenities and infrastructure, such as township, hospital, stores, workshop, community centre, schools etc. are available at OMDC s Thakurani and Nalda townships. 3.9 WASTES: Presently there are two external overburden dumps containing estimated m 3 of material, whose details are as follows: Dump Area (ha) Avg. Ht. (m) Max. Ht. (m) No. of Terraces Present Cap. (m 3 ) D D The mine has been designed at a rated capacity of 0.36 Mt/yr with an anticipated stripping ratio of 1:0.05 t/m 3 and, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 12 of 17

18 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease external dumping for the first 5 years followed by concurrent reclamation. 4.0 SITE ANALYSIS: 4.1 CONNECTIVITY : The lease area can be approached by a morrum road from the metalled roads viz. Barajamda -Barbil road and combination of metalled and morrum roads from Barbil Railway station. The nearest railway stations are Barajamda (3.4 km north-east) and Barbil (3.8 km south-west) on SE Railway s electrified broad gauge branch Rajkharsawan Junction (on Howrah Mumbai main line) Barajamda - Bolani branch line. The leasehold is well connected with Tatanagar by metalled road as well as by rail route via Barajamda, Noamundi and Chaibasa. The nearest National Highway is NH 215, which runs about 8.6 km south of Bagiaburu mine lease. The nearest airport, with regular scheduled services, is at Ranchi which is about 140 km from mine site. 4.2 LAND FORM, LAND USE, OWNERSHIP : The entire mine lease area falls entirely within Uliburu Reserved Forest in Keonjhar District, Odisha. Stage I Forestry Clearance has been received vide letter no. 5-ORC-164/2013-BHU dated 21 st November, 2013 (copy enclosed as Appendix 4). 4.3 TOPOGRAPHY : Topography in the area comprises a part of east-west trending hill slope ranging in attitude from RL 531m to RL 458m (ref: surface plan in Plate-II). The hill slopes are moderately steep and the slope is more in northern area. Northern and southern ends are under mining for iron ore. Change in elevation in the mining area is observed mainly due to quarries and dumps. Bagiaburu lease lies at the slope of a hill between altitude of 520 m and 460 m above mean sea level. There are no perennial streams in the lease area. But three seasonal channels traverse across the lease area leading to Karo River. The Karo River flows towards the north 2.6 km beyond the lease s western boundary. 4.4 LAND USE: The entire lease area is located in Forest Land. The existing land use pattern in the lease is as follows: Sl. No. Type of land use Existing Area (in ha) 1 Area under excavation External Dumps Infrastructure (Rest shed, blasting shelter etc.) Mines Roads Public Roads Safety zone Crushing and screening area Un-utilized Total EXISTING INFRASTRUCTURE : Haul roads are already existing within the mine lease. Weigh bridge, rest shelters will be built after receiving all clearances for resumption of mining. Mine office, first aid centre and canteen will be shared with OMDC s adjacent Belkundi Mine Lease. These are adequate for the project. Other common infrastructure for the entire mine such as, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 13 of 17

19 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Main Administrative Building, workshop, stores, hospital, township and railway siding is existing in OMDC s nearby Thakurani Lease. 4.6 SOIL CLASSIFICATION : The soil is lateritic, typical of the area. The thickness of the top soil varies from nil (due to outcropping of iron ore to maximum of 60 cm. 4.7 CLIMATE : The mine lease area lies in tropical region where climate is characterised by very hot summers and cool winters. Summer is typically from March to June when monthly temperature ranges from a maximum of 40 C during daytime to a minimum of 20 C at night. Winter is from November to February when the maximum temperature during day goes up to 30 C and minimum temperature at night becomes as low as 10 C. The average annual rainfall as recorded at IMD observatory at Chaibasa is 1192 mm. The Southwest monsoon lasts from mid June to mid September and the area gets more than 80% of the annual rainfall during this period. 4.8 SOCIAL INFRASTRUCTURE AVAILABLE: OMDC has six mines in the Joda - Barbil area some of which are quite old as they were operated by the erstwhile Bird Group. OMDC has two large townships at Thakurani and Roida and a small one at Nalda. The Thakurani and Roida townships have all necessary amenities including hospital, markets, playgrounds and entertainment facilities. Education facilities and major markets are available at Barbil and Joda towns. 5.0 PLANNING BRIEF: 5.1 PLANNING CONCEPT: The proposed project envisages reopening and expanding an existing open cast mine. The mine had commenced operations during the 1972 but had stopped operating in The basic infrastructure required for resuming operations are already in place. Once the necessary clearances are obtained mining will be resumed after refurbishment of the offices and construction of temporary rest shelters which have been dismantled since stoppage of mining. The rated capacity of the mine (0.36 Mt/yr) will be attained in the 5 th year of operation. 5.2 LAND USE PLANNING: The existing land use and the land use at the end of the mine s life are as follows: Sl. No. Type of land use Area of land use (in Ha) Existing At End of 5 th Year At End of Work 1 Area under excavation External Dumps Top soil storage Mineral Storage Infrastructure (Rest shed, blasting shelter etc.) Mines Roads Public Roads Safety zone Crushing and screening area Un-utilized Total , 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 14 of 17

20 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Photo 2: Plantation in Safety Zone When the reserves are exhausted, the mine will be shut down as per the Approved Mine Closure Plan. 5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND: Since cessation of mining the mine office has fallen into disuse. It has to be refurbished. The rest shelters and canteen have collapsed. They will be reconstructed. A new weigh-bridge for Bagiaburu will be constructed. The haul roads within the mine are in fairly good shape; only some pot-holes have to be filled in. OMDC s existing workshop, stores, railway siding, etc. will cater to the needs of Bagiaburu also. Bagiaburu mine will employ 250 persons, majority of whom will be local villagers. The rest comprising of the officers, supervisors, some of the skilled and semiskilled workers may come from outside. These people will be provided accommodation in the existing Thukarani and Nalda townships, which have all amenities. Some of the quarters at these townships are very old and in a poor state. It is expected that about 100 quarters with a total built up area of 8000 m 2 may have to be built to replace the ir-repairable houses. 5.4 AMENITIES / FACILITIES : During the process of reopening the mine, OMDC will revamp the site office, time Office and First Aid center which have been lying disused since Rest shelters and canteen shall be constructed. 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 infrastructure is proposed. OMDC has townships with necessary amenities. Green Belt & Plantations: At present plantations are present over ha within the lease area, which constitutes the Safety Zone. Before the lease is abandoned, plantations will be created over 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: OMDC has already undertaken the following activities in nearby villages under its Corporate Social Responsibility Programme: Holding of medical camps, supply of medicines to villagers, mosquito eradication programmes Improving drinking water supply systems and infrastructure in peripheral villages Material assistance to needy village women Improvement of education facilities in villages Setting up of solar powered street lights in villages Construction of roads Setting up of community toilets Material assistance for village festivals, cultural events and sports activities, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 15 of 17

21 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease Annual expenditure towards CSR activities during the last seven years are as follows: : Rs 89,03,744/- (budgeted) : Rs. 92,27,681/ : Rs. 1,16,99,425/ : Rs. 1,46,15,774/ : Rs.1,42,25,076/ : Rs. 34,44,949/ : Rs. 4,72,93,002/- Photo 3 : Drinking Water Supply System Constructed by OMDC Photo 4 : Distribution of Bicycles to School Girls by OMDC, 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 16 of 17

22 Pre-Feasibility Report for Reopening of Bagiaburu Iron Ore Mining Lease 7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN : The project does not envisage any leasing or acquisition of private land. Hence there will not be any land oustees who have to be resettled or rehabilitated. 8.0 PROJECT SCHEDULE & COST ESTIMATE : 8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION: The mine will be reopened within six months of receipt of necessary clearances. The rated capacity of the mine (0.36 Mt/yr of iron ore) will be attained in the 5 th year of operation. 8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT: The estimated project cost will be Rs Crores. Production cost for reopened Bagiaburu mine has been worked out taking into account the annual production capacity (after expansion), requirement/ linkages/sourcing and pricing of various input materials to the mine site, requirement of manpower and their salaries & wages, power, fuel and other services & utilities, consumables, maintenance spares and various overhead expenses. The estimated production cost (including depreciation & interest) at 100% capacity utilization after proposed expansion will be Rs. 1205/- per tonne of product. 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. 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 Bagiaburu project has become necessary., 2014 MECON LIMITED, All rights reserved (Report No. 11.S F 2165) Page 17 of 17

23 DRAWINGS

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29 APPENDIXES

30 Appendix-1 Page 1 of 3

31 Appendix-1 Page 2 of 3

32 Appendix-1 Page 3 of 3

33 Appendix 2 Page 1 of 3

34 Appendix 2 Page 2 of 3

35 Appendix 2 Page 3 of 3

36 Appendix 3 Page 1 of 4

37 Appendix 3 Page 2 of 4

38 Appendix 3 Page 3 of 4

39 Appendix 3 Page 4 of 4

40 Page 1 of 5 Appendix 4

41 Page 2 of 5 Appendix 4

42 Page 3 of 5 Appendix 4

43 Page 4 of 5 Appendix 4

44 Page 5 of 5 Appendix 4