Iron ore Beneficiation Plant

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1 PRE-FEASIBILITY REPORT FOR Iron ore Beneficiation Plant In 7-20 Acres Survey Number:121/1B 18-Hulikunte Village Sandur Taluk Bellary District, Karnataka By M/s Zest Ferro Beneficiation Pvt. Ltd. No.144, Primary No. 121/1B, 18-Hulikunte, Nandihalli Road, Sandur Taluk, Bellary District, Karnataka

2 C O N T E N T S Sl. No. Description Page No. 1 Executive Summary P-02 2 Introduction P-03 3 Project Description P-06 4 Site Analysis P-16 5 Planning P-18 6 Proposed Infrastructure P-21 7 Rehabilitation & Resettlement Plan P-24 8 Project Schedule & Cost Estimates P-27 9 Analysis of Proposal & Conclusions P-29 P-1

3 1.0 Executive Summary Owner s Name : M/s. Zest Ferro Beneficiation Pvt. Ltd. Sri. Shivraj M. (Managing Partner) Plant Site Extent : 7-20 Acres of Barren Land Proposed Method : Iron ore Crushing in jaw crusher followed by screening, washing of iron ore fines in a washer/ rinser, followed by desliming, hydrocyclones, wet high intensity magnetic separation (WHIMS), thickeners for concentrate Material : Iron Ore Survey No./ Plot No. : Survey No. 121/1B Village : 18-Hulikunte Village Taluk/ Tehsil : Sandur Taluk District : Bellary District State : Karnataka Status of lease : New Plant Barren Land Total Area 7-20 Acres Proposed Production : 90,000 Tons Per Annum(TPA) P-2

4 2 Introduction 2.0 General: Steel being the basic commodity for all industrial activities, quantum of its consumption is considered as an index of industrial prosperity. Since the independence there has been a substantial growth in the steel sector in India from Million Tons per Annum (MTPA) in to about MTPA in (Source: Steel Scenario Yearbook 2010), due to a substantial demand for steel in industrial, housing and construction sector. In order to meet the increasing steel demand, several new steel plants are being established and the existing ones are taking-up expansion programmes. For the production of steel, the basic raw material required is iron ore and the state of Karnataka is having abundant quantity of iron ore fines, which almost contribute to 60-70% of the total iron ore reserves of the state. The good quality iron ore (more than 63% Fe Content) is being mined, for the past years and the availability of this, is becoming scarce. To make effective utilization of the lower grade iron ores (i.e. with less than 60% Fe Content), which is a rich natural resource, it is necessary to process the iron ore from lower grade to higher grade, by using suitable and proven techniques. Beneficiation, is one such process, which converts the lower grade iron ore into a higher grade, thereby increasing its market value. Also, it generates employment for the local youth and helps in augmenting the overall economy of the country. Considering these aspects, M/s. Zest Ferro Beneficiation Pvt. Ltd., a Registered Partnership Firm, under Indian Partnership Act 1932, has proposed to establish an Iron ore Beneficiation Plant of 90,000 Tons per Annum (TPA) Capacity, near Sandur, in Bellary District in the state of Karnataka. M/s ZEST Ferro Beneficiation Pvt. Ltd., a Partnership Firm, registered under Indian Partnership Act 1932, promoted by 3 young and dynamic entrepreneurs from Sandur, in Bellary District, the land of rich iron ore in Karnataka, with the P-3

5 purpose of carrying-out the trading of iron ore, including export. The Firm is being steered by Mr. Shivaraj M, a young Engineering Graduate from Sandur, with more than 6 years of experience in Iron Ore trading, as its Managing Partner. He is ably supported by Mr. Chiranjeevi, a young and dynamic Diploma Holder from Sandur, having more than 6 years in iron ore trading and Mr. Santhosh Kumar G, a Diploma Engineer from Sandur, with about more than 6 years of experience of iron ore grading, trading etc. 2.1 Identification of project and project proponent (in case of mining project a copy of mining lease / letter of intent should be given) Identification of Project Project: Iron Ore Beneficiation Plant Extent: 7-20 Acres Sy. No. 121/1B, 18-Hulikunte Village, Sandur Taluk, Bellary District, Karnataka. Lessee/Project Proponent M/s Zest Ferro Beneficiation Pvt. Ltd. Sri. Shivraj M. (Managing Partner) No.144, Primary No. 121/1B, 18-Hulikunte, Nandihalli Road, Sandur Taluk, Bellary District, KARNATAKA, INDIA Id: enviprogroup@gmail.com 2.2 Brief description of nature of the project: M/s Zest Ferro Beneficiation Pvt. Ltd. have appointed M/s. EnviPro Solutions Pvt. Ltd., Bangalore, for preparation of the project report, obtaining the Environmental clearance etc. for the proposed project. M/s. EnviPro Solutions Pvt. Ltd., expresses its sincere thanks to the Management of M/s. Zest Ferro Beneficiation Pvt. Ltd., for their support and valuable guidance in preparation of this report. This report is based on the information collected from M/s. Zest Ferro Beneficiation Pvt. Ltd., their equipment suppliers and information from other agencies. The present proposal of the establishment of 30 TPH Capacity iron ore beneficiation plant, comprises of crushing, screening, washing and fines separation equipment. It is proposed to operate the proposed plant, on a single shift basis (10 hours/ day), for an average 300 days in a year. The annual production of the proposed plant works-out to be in the range of 90,000 Tons P-4

6 per Annum (TPA) of throughput. The detailed description of the proposed project, is given in the following chapters. 2.3 Need for the project and its importance to the country and region: Due to the changing legislation on iron ore trading & export and considering the depleting sources of the rich grade iron ores in the region, the promoters of M/s Zest Enterprises, have decided to establish an iron ore beneficiation plant, in an industrially converted plot, owned by them. 2.4 Demand- Supply Gap: Most of the steel production processes, need iron ore with iron content of 61-62% minimum. The grade of the abundantly available ore in Bellary - Hospet area, in the recent days generally varies from 56% to 57%. Hence, the ore fines need to be upgraded. The iron ore fines from Bellary-Hospet region are primarily from hematite deposit and contain mostly silica and alumina as prime gangue minerals. The objective of the proposed project is to upgrade these ores to minimum 61-62% Fe by suitable beneficiation technique. The concentrate product can be used for pellet/ sinter making, for further utilization in making of DRI (Sponge Iron)/ Steel. 2.5 Imports vs. Indigenous Production: Not applicable, as import of iron ore, is not required in India. 2.6 Export Possibility: Not envisaged at this stage, as there is enough demand in the local market. 2.7 Domestic/ Export Markets: Not applicable, as the quantity and extent of beneficiation of iron ore, are very marginal. 2.8 Employment Generation (Direct and Indirect) due to the project. About 34 persons including managerial and office staff will be required to operate the plant to achieve the required production levels. P-5

7 3.0 Project Description 3.1 General M/s. Zest Ferro Beneficiation Pvt. Ltd. Deals with trading in ferrous and non ferrous minerals especially Iron Ore. Firm engaged in procuring and supply of Iron Ore as per the specification of its customers which are exported by some customers, some customers are consuming the same as their raw material. Further firm is also exploring opportunities for direct exports and become merchant operator 3.2 Type of project incl. interlinked and interdependent project, if any: It is a New Iron Ore beneficiation Plant, and there are no interlinked and interdependent projects. 3.3 Location The proposed iron ore beneficiation plant, will be established in an industrially converted land, bearing Sy. No. 121/1B, with an extent of 7-20 acres. The chosen land, belongs to 18-Hulikunta Village, Sandur Taluk, in Bellary District, and is in close proximity to the iron ore mines. It is at a distance of 4-5 KM from Sandur Town, on the road connecting Sandur and Nandihalli. The nearest human habitation i.e Nandihalli, is at a distance of KM, from the proposed project site. The site is well connected to an all weather road, capable of handling the required traffic. There are no environmental sensitive places, like estuaries, water bodies, defence installations, major air ports, national/ state highways, rivers, religious/ historic places, archaeological monuments, national parks, wildlife sanctuaries, etc., within close proximity (in 5km radial distance), of the proposed project site. The index map showing the location of the proposed project site is furnished below: P-6

8 Index Map of the Project Site Proposed Project Site P-7

9 3.4 Details of alternate sites, considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted Not applicable, as the beneficiation of Iron Ore is a site specific work. The site is cleared, from environmental considerations. 3.5 Size or magnitude of operation: Proposed industry involves beneficiation of 90,000 Tons Per Annum (TPA) of low grade iron ore. 3.6 Project description with process details (a schematic diagram/flow chart showing the project layout, components of the project etc. should be given): The main plant facilities include raw material receipt and storage, weighbridge, crushing of the iron ore in jaw crusher followed by screening, washing of iron ore fines in a washer/ rinser, followed by desliming, hydrocyclones, wet high intensity magnetic separation (WHIMS), thickeners for concentrate, tailing separation and storage of concentrate/ tailings. The low grade iron ore will be fed into the Jaw Crusher, wherein the ore will be crushed to the size below 20mm. After crushing, the crushed ore will be sent for screening, in a single deck screen of 20mm mesh. The under size will go for further processing and whereas the oversized i.e. +20mm ore will be fed back into the Jaw Crusher, for further crushing. In the Washer, it is proposed to go for an integrated iron ore crushing-cumwashing equipment. It contains the crushing equipment, to crush the feed material into the desired size. The crushed ore will be fed to a de-sliming screen with 0.5mm opening. Water will be sprayed on de-sliming screen; to wash the excess silica and alumina from the crushed ore. After that, the wet ore will be fed onto a screen. The washed ore with size ranging from 5-20mm (termed as Product A), gets piled into a heap, by way of a conveyor. The undersize i.e. - 5mm material will be screened further and the finer material i.e. -4mm sized material will be pumped into the next process i.e. fines master. The product of P-8

10 size -4 to -5mm (Product B) will be stored as a heap. The schematic arrangement of a typical Washer/ Rinser Equipment is shown below: The iron ore fines (-4mm) and water from the screen box of the Washer/ Rinser, enters the bucket of the fines master, through (A). The majority of the material will be lifted by the bucket wheels (B) and dumped onto the dewatering screen (C). After moving along the Dewatering Screen (C), it will be discharged onto outlet chute at (D). The overflow from the bucket tank, containing fines, flows through (E) and (F), into the Cyclone Tank. It is then pumped at (G) into the splitter box (H) and flows-up through the hoses (I) to the Cyclones. The,aterial discharges from the bottom of the Cyclones onto dewatering screen (C) and is discharged at Chutes (D), with the rest of the material. Overflow from the Cyclones (J), returns to the tank at (K). The overflows from this cyclone tank flows to the settling pond, through (L). The schematic diagrams showing the Fines Master, are depicted below: P-9

11 About 30 tons/h of the material will be fed to Magnetic Separator. Based on optimized process parameters like the feed rate, bulk density etc., the magnetic intensity will be controlled to get optimum recovery and highest degree of concentrate. The concentrate will be pumped into a concentrate thickener where the solid content will be increased to 65%. The thickened slurry will be pumped into slurry storage tank and from the tanks to distributors ranging above the filtrate. Excess slurry from distributors will flow back to thickener. Slurry is dewatered to a moisture content of 9-9.5%. Each filter is equipped with the vacuum pump for producing necessary vacuum. Pump sucks moisture of air and filter water from the filters via a double stage vacuum receiver system where air and filter water are separated. The filter cake from disc filters is blown out by compressed air. The tailing from de-sliming screen, hydro-cyclone and bins is taken into tailing thickener where the solid contents are increased to 65-70%. There will be a centralized control room, accommodating all the process related control systems. All equipment will be provided with local manual control and remote centralized control through PLC. Industrial standard and industrypurpose computer will be used for man-machine interface and engineer station, P-10

12 which will be of the latest industry standards. All the software will be based on Windows platform using English language. For taking printouts, one printer will be provided. All the above units, are shown in the layout drawing. 3.7 Raw material required along with estimated quantity, likely source, marketing area of final product/s, Mode of transport of raw material and finished products: The major raw material required for the operation of the proposed beneficiation plant, i.e. low grade iron ore is abundantly available at a very competitive price, in and around the proposed project location. The distance from the source of the raw material to the proposed project location, is around 8-10 KM. The typical characteristics of the low grade iron ores available, in the proposed project area, are given below: Sl. Parameter Composition (in % W/W) No. Sample 1 Sample 2 Sample 3 1 Iron (Fe) Silica (SiO2) Alumina (Al2O3) Lead (Pb) Calcium Oxide (CaO) Magnesium (MgO) Sulphur, S Loss on Ignition (LOI) mm Size Nil mm Size The required raw materials, will be brought by covered tipper trucks, and will be stacked into the stock-pile, at the designated place. Following are the major agencies envisaged for the supply of low grade iron ore, in the region: v M/s Mysore Minerals Limited v M/s Sandur Manganese & Iron Ore Pvt. Ltd. v M/s H Rangana Gowda & Co. v M/s Kumara Swamy Mining Corporation P-11

13 v M/s B Kumar Gouda Mining Co. etc. 3.8 Resource optimization/recycling and reuse envisaged in the project. If any, should be briefly outlined: The major solid waste that is going to be generated from the proposed iron ore beneficiation plant, will be the tailings, mixed with water. The water will be recovered to the maximum extent and the solids, which is a very fine powder, will be used for brick manufacturing, in the adjacent land, available with the project proponents. 3.9 Availability of water its source, Energy/power requirement and source should be given: The chosen process being only physical in nature, without involvement of any chemicals, there will not be generation of any industrial effluents. The water mixed with the tailings, will be allowed to settle in the settling tank. The clear water from the top of the settling tank will be collected in another tank and will be pumped back into the system. The sewage from the toilets will be discharged into a septic tank-soak pit system. As such, the plant will work on zero discharge basis. 50 KLD water will be required for the proposed plant and is proposed to draw from the Bore wells, existing within the proposed project site. The water will be drawn and stored in a Tank and Pumped to the Rinser/ Washer for washing the crushed and screened material. In the unlikely event of a power failure an overhead tank of sufficient height & Capacity has been provided to ensure non stop water supply to the system. The water from the thickener, de-sliming screen etc., gets collected in the settling tank and the overflow flows into the next tank, from where it will be pumped back, for recycling. In addition, there will be a demand of about 1.5-2KLD for gardening and potable purposes. The wastewater from the toilets will be diverted into a septic tank, followed by soak pit. Good hygienic conditions will be maintained. P-12

14 Considering the availability of ground water, topography of the project site, amount of annual rainfall etc., it is proposed to take-up the ground water recharging of the rain water, by way of building the check dams, percolation pits etc., so as to have a perennial source of water. The Water Balance, for the proposed beneficiation plant, is given below: P-13

15 WATER BALANCE DIAGRAM Recycled Water 325 KLD Fresh Water 52 KLD For Process 50 KLD For Drinking & Garden 02 KLD Total Process Water 375 KLD Septic Tank 02 KLD Used Water from thickener, de-sliming screen etc. 375 KLD For Recycling 325 KLD Settling Tank 340 KLD Water with the product 35 KLD Water with the Tailings 15 m 3 /D P-14

16 The estimated power load for the plant is found to be around 300 KW. Capacitors will be installed to improve the Power factor to 0.9 as per statutory requirements. To ensure continuous & un-interrupted power supply to the beneficiation plant, a provision has been made for installation of the electricity power line from the nearest substation of Gulbarga Electricity Supply Company Limited (GESCOM), and also provision has been made for D.G Set of 250 KVA capacity, to meet the emergency power requirements. Considering the size of operation, location of the proposed project site (close proximity to Sandur), no exhaustive repair facilities have been envisaged in the project. However, necessary mechanical and electrical repair tools, lifting tools etc. will be provided for routine operation and maintenance works. It is proposed to place sufficient number of suitable type of fire extinguishers in control room, office premise, main gate etc. To keep the necessary consumables like lubricating oil, grease, cotton waste and items like nuts, bolts etc., provision has been made in the control room building Quantity of wastes to be generated (liquid and solid) and scheme for their Management/disposal: There will be 18,000 tonnes per annum of waste generated from the plant. From the quality of the iron ore available in the region and based on the recovery pattern of similar plants, working in the area, it is expected to recover 75-80% of the feed material, as concentrate. The balance i.e %, will be disposed off, in the form of tailings. It is proposed to utilize these tailings, for brick manufacture, at a later stage of the project Schematic representations of the feasibility drawing which give information of EIA purpose Extract of the location showing in Topo-sheet has been enclosed along with. P-15

17 4.0 Site Analysis 4.1 Location of Site is located over an area of 7-20 Acres in Barren land bearing Survey No. 121/1B of 18-Hulikunte Village, Sandur Taluk, Bellary District, Karnataka. The proposed area forms part of Survey of India Topo- Sheet. 4.2 Connectivity: The granted area is easily workable in all Weather conditions. From the Plant area 18-Hulikunte Village is situated at 2.5 km and Bellary is at a distance of 50 km towards and Sandur Taluk is at a distance of 15 kms away from the applied Plant area where all the welfare amenities are available. The nearest railway station is Ranjpura. The nearest airport is JSW Airport, Vidyanagar. 4.3 Land Form, Land use and Land Ownership: The entire land is Barrren land, comprising rocky boulders, sheet rock etc., and is not fit for agricultural purposes converted for industrial purpose. 4.4 Topography (along with map) Land is currently bare land, converted for industrial purposes. will be used for industrial purposes permanently. Land is barren without any major trees or agriculture or buildings. 4.5 Existing land use pattern (agriculture, non-agriculture, forest, water bodies including area under CRZ), shortest distances from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river), CRZ. In case of notified industrial area, a copy of the Gazette notification should be given The chosen site is not part of any notified area, from environmental perspective. 4.6 Existing infrastructures: Since the above proposed Plant is New, necessary site infrastructural facilities like rest shelter, small office, etc. are to be developed at the site. P-16

18 4.7 Soil classification: The entire area is barren Land. 4.8 Climatic data from secondary sources: The area experiences dry climate for the major part of the year. The average rainfall in the area is around 766mm annually. The maximum temperature may rise upto 16 0 C, while minimum is 35 0 C may falls upto 10 0 C during winter season. 4.9 Social Infrastructure available: The area is part of Bellary district, and is at about 2.5 Km from 18-Hulikunte village. It is at 16 km from Sandur, where all basic infrastructural facilities like school, primary health center etc. are existing. P-17

19 5.0 Planning 5.1 General For successful running of the unit the most important factor is the availability of Raw Materials as well as Utilities & Power, which are required to efficiently run the Equipment. The iron ore beneficiation plant needs uninterrupted supply of water and power to ensure that the unit achieves the desired production level. 5.2 Planning Concept (type of industries, facilities, transportation etc.) Town and country Planning Development Authority classification: No Villages or human dwellings are within the area and within 500mtrs of lease hold. The lease area covered under village limits of 18-Hulikunte village. 5.3 Population Projection: As per 2011 census, there are about 1650 peoples living in the nearby 18- Hulikunte village and there are about 273 households. 5.4 Land use planning (breakup along with green belt etc.): The proposed Plant area is Barren Land. It is barren and the sheet rock is fully exposed in the area and also sheet rock is seen at the surface level. As per the approved Plant Plan by the Dept. of Mines & Geology, Bellary, the landuse planning is as under: Sl. No Type of Land Used Area (Acres) 1 Raw material Storage Factory Unit & Buildings Green belt area Tailings Storage Roads and other Open 0.7 Areas Total 7.2 P-18

20 5.5 Assessment of Infrastructure Demand (Physical & Social) As the extent of Beneficiation and the proposed production are marginal, there will not be any additional requirement of any infrastructural facilities. The existing infrastructural facilities can accommodate the above production levels. 5.6 Amenities/ Facilities: Only Planting will be carried out in the area. The infrastructure buildings like office building, rest shelter etc. will be constructed in a semi-permanent construction using brick walls & thin sheet roofing. Drinking water will be provided in a well maintained water tank close to the workers rest shelter. 5.7 Man-Power Required for Operation of the Plant: The proposed iron ore beneficiation plant will operate in a single shift, basis and about 330 days in a year, on an average. The manpower required for operation and maintenance of the plant is estimated as below: Sl. No. Unit/ Activity Persons 1 Plant Manager 01 2 Weigh-Bridge Area 02 3 Jaw Crusher 02 4 Washer/ Rinser 04 5 Fines Master 04 6 Maintenance (electrical & mechanical) 03 7 Control Room Operators 02 8 Office Staff (incl. peons) 05 9 General Helpers Security Gate 01 TOTAL 34 P-19

21 5.8 Extent of Mechanization Table: Requirement of Machineries # Machineries 1. Feed Hoppers 2. Belt Feeders 3. Belt Conveyors 4. Drum Scrubber 5. Screw Classifier 6. Hydrocyclone 7. Magnetic Separator 8. Column Floatation 9. Thickener 10. Silt master 11. Ball mills P-20

22 6.0 Proposed Infrastructure 6.1 General To carry-out iron ore beneficiation plant, various infrastructural facilities are required for the main activity as well as for environmental protection & pollution prevention. 6.2 Industrial Area (processing Area): The Size of the proposed plant is quite small. 6.3 Residential Area (Non Processing Area): As the Plant site is located within 2.50 Km by road from 18-Hulikunte village, no residential facilities have been envisaged near the Plant location. 6.4 Green Belt: There is no forest area falling around the Plant lease area. Besides common trees, natural vegetation grows during monsoon & fades away with the onset of summer. However, to absorb the dust due to vehicle movement on the haulage road, it is proposed to take-up plantation work during the first two years of operation of the Plant. Also, it is proposed to take-up tree plantation work in the vacant land of the same Sy. No., and near the Govt. School & Temple at 18- Hulikunte, Nandihalli villages, as under: 6.5 Social Infrastructure: There are few villages & hamlets within 5 kms radius zone. Presently the people of these villages are engaged in seasonal agricultural activities & thus are not employed fully. Some persons will be directly working in the Plant while some shall be on contractual role depending upon the nature and period of the requirement of the mining activities. 6.6 Connectivity (Traffic & Transportation Road/Rail/Metro/Water ways etc)]: The granted area is easily workable in all Weather conditions. From the Plant area 18-Hulikunte Village is situated at 2.5 km and Bellary is at a distance of 50 km towards and Sandur Taluk is at a distance of 15 kms away from the applied P-21

23 Plant area where all the welfare amenities are available. The nearest railway station is Ranjpura. The nearest airport is JSW Airport, Vidyanagar. 6.7 Drinking Water Management (Source & Supply of water): 50 KLD water will be required for the proposed plant and is proposed to draw from the Bore wells, existing within the proposed project site. The water will be drawn and stored in a Tank and Pumped to the Rinser/ Washer for washing the crushed and screened material. In the unlikely event of a power failure an overhead tank of sufficient height & Capacity has been provided to ensure non stop water supply to the system. The water from the thickener, de-sliming screen etc., gets collected in the settling tank and the overflow flows into the next tank, from where it will be pumped back, for recycling. In addition, there will be a demand of about 1.5-2KLD for gardening and potable purposes. The wastewater from the toilets will be diverted into a septic tank, followed by soak pit. Good hygienic conditions will be maintained. 6.8 Sewerage system: The wastewater from the toilets will be diverted into a septic tank, followed by soak pit. 6.9 Industrial Waste Management: From the quality of the iron ore available in the region and based on the recovery pattern of similar plants, working in the area, it is expected to recover 75-80% of the feed material, as concentrate. The balance i.e %, will be disposed off, in the form of tailings. It is proposed to utilize these tailings, for brick manufacture, at a later stage of the project Solid Waste Management: The major solid waste that is going to be generated from the proposed iron ore beneficiation plant, will be the tailings, mixed with water. The water will be recovered to the maximum extent and the solids, which is a very fine powder, P-22

24 will be used for brick manufacturing, in the adjacent land, available with the project proponents Power Requirement & Supply / Source: The estimated power load for the plant is found to be around 300 KW. Capacitors will be installed to improve the Power factor to 0.9 as per statutory requirements. To ensure continuous & un-interrupted power supply to the beneficiation plant, a provision has been made for installation of the electricity power line from the nearest substation of Gulbarga Electricity Supply Company Limited (GESCOM), and also provision has been made for D.G Set of 250 KVA capacity, to meet the emergency power requirements. P-23

25 7.0 Rehabilitation & Resettlement (R & R) Plan 7.1 General The proposed ing area, is located near 18-Hulikunte Village of Sandur Taluk, Bellary District of Karnataka State. The proposed site is at about 2.50Km from the nearest human habitation i.e. 18-Hulikunte. In the core area, there are no houses/ hutments etc. Hence the R & R Plan for the proposed Plant site is limited to the environmental protection and other social measures planned, as part of the proposed activity. 7.2 Human Settlements There is no human settlement in the core zone. 7.3 Socio-Economic Benefits Spurt in industrialization and mining activities have invariably brought a drastic change in the environment including the society connected with region. Mostly remote areas tucked away from urbanization and influence of modern civilization fall within the limits of mine development. A natural corollary to this the socio economic aspects of the local inhabitants who have dwelling this region for generations, get suddenly and probably a radical change, consequent to their abrupt exposure to the mining. The local people will get employment opportunities, better medical and educational facilities etc., mainly due to the mining operation from this project. In addition to this the literacy rate and better living standards shall increase due to the enhanced earning capacity of villagers. 7.4 Storage and Preservation of Topsoil Wherever the topsoil generated, shall be collected and stacked separately for use in a forestation. 7.5 Reclamation of land P-24

26 Land restoration or reclamation of the area is very essential in any Industrial area. Proper measures adopted during restoration will control most of the adverse environmental impacts of Industry and also improve the aesthetic beauty of the area. 7.6 Facilities for Environmental Management Generally ing is expected to cause air pollution leading to breathing problems. Activities like movement of heavy vehicles generate dust and aggravate air pollution in addition to noise pollution. For mitigating the adverse impacts of the above, suitable control measures are planned, which are more detailed in the enclosed Environmental Management Plan. Also, for meeting the drinking and sanitary needs of the employees/ workers and for watering of the trees, water will be required. To take care of the occupational health and safety of workers at site, dust masks will be provided. Dust masks would prevent inhalation of Respirable Particulate Matter (RPM) thereby reducing the risk of lung diseases and other respiratory disorders. Regular health monitoring of workers will be carried out. The rainwater accumulating in the work area will be collected and will be drained-out to the downstream properly with guide drains, so that it can be used by the downstream fields for their agriculture and allied purposes. To avoid soil erosion, rain water entering into the mine pit, carryover of the material with rain water, suitable garland drains will be provided all along the active mine area. 7.7 Implementation of EMP & Monitoring Programme The environmental management plan is detailed on the basis of impact assessment. Control and mitigation measures for the adverse impacts envisaged. P-25

27 As the major environmental attributes have been confined to the project area alone, implementations of the proposed control measures and monitoring thereof will be undertaken on the regional basis. The Iron Ore Beneficiation Plant will ensure the implementation of the measures within the plant area and carryout efficient monitoring. In order to implement the measures suggested for mitigating the adverse impacts on the environment, it is suggested to monitor the environmental parameters regularly. P-26

28 8.0 Project Schedule & Cost Estimates 8.1 General Any developmental activity needs to have adequate resources, be in the form of man-power or machinery. Careful planning and timely deployment adequate funds to have the required resources, is of paramount importance for any successful project implementation. In the following paras, it is explained about the mobilization schedule of resources and the capital expenditure estimates. 8.2 Mobilization Schedule The proposed Plant, being a New Plant, the time required for mobilization of man-power, machinery & equipment etc., will be about 2-3 months from the date of issue of Plant lease. 8.3 Cost of the Project: The capital cost of the proposed iron ore beneficiation plant having annual rated production of 90,000 t per year is estimated as Rs. 98 Lakhs. The estimates are summarized in the following table. SUMMARY OF ESTIMATED COST OF PROJECT Sl. No. Item In Rs. Lakhs Total Cost 1 Land and Site development Buildings Plant & Machinery Miscellaneous Expenses 2.00 Total capital cost The capital cost estimates are based on the prices prevailing in the fourth quarter of 2010 and do not take into account any future escalation in prices. Cost of the project includes cost towards land and site development, buildings, plant and machinery, engineering expenses on drawings and documents, miscellaneous fixed assets, preliminary and pre-operative expenses, provision for contingencies and margin money for working capital. P-27

29 8.4 Cost for Implementation of Environmental Management Works: The Planting activity is likely to result in some minor adverse impacts of the environment. To overcome such impacts, certain mitigative measures have been planned. The cost provision towards the same is given below: P-28

30 9.0 Analysis of Proposal & Conclusions: 9.1 Cost-Benefit Analysis of the Proposal: The facilities included under this head are factory buildings like control room, weigh bridge, etc. The cost of these facilities have been estimated on the basis of preliminary layouts and designs of facilities discussed in the previous chapters, taking into consideration the cost of construction materials prevailing in the region. Cost of plant and machinery includes, besides the basic cost, costs towards spares, taxes and duties, freight & clearance charges, inland transport and transit insurance etc. Spares have been considered at 1% of equipment cost. Costs also include installation charges for the plant and machinery. Cost estimated under this head includes engineering & consultancy charges (which comprise of preparation of project reports, technical specifications, inspection services etc.); and other miscellaneous expenses. It is proposed to finance the above project, using the internal accruals of the project proponents i.e. partners of M/s Zest Ferro Beneficiation Pvt. Ltd. Capital cost estimates indicated above are based on the following assumptions: v Estimates are based on the price levels prevailing in fourth quarter of v Estimates do not have any provision for escalation in price levels, variation in foreign exchange rates, variation in statutory duties & taxes etc. 9.2 Benefits of the Proposal to the Society: a. It provides additional jobs to rural educated youth b. Improvement in the surrounding infrastructural facilities and nearby villager s quality of life will be improved. c. Programs that are taken-up as part of the Corporate Social Responsibility, will improve the literacy rate, improvement of village etc. d. Additional earnings to the Government, in the form of Taxes, Royalty etc. P-29

31 9.3 Conclusion(s): Considering the growing demand for the iron ore and the depleting sources of the rich grade iron ore, it is becoming inevitable to evolve suitable techniques for the upgradation of the cheaply available low grade iron ore reserves. Due to the location of the proposed iron ore beneficiation plant and considering the experience & expertise of the project proponents, along with their dynamism coupled with the familiarity to the project region, it is felt that the proposed project is highly viable. Hence, the proposed iron ore beneficiation plant of 30 TPH (80,000 Tons Through-put Per Annum), is strongly recommended for implementation, as fast as reasonably practicable. - x x x P-30

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46

47