FEASIBILITY REPORT FOR NARAYANPOSHI IRON & MN ORE MINE-AMTC (EXPANSION OF MINE CAPACITY FROM 3.0 MTPA TO 6.0 MTPA (ROM) FOR IRON ORE & EXISTING 0.

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2 CHAPTER I EXECUTIVE SUMMARY 1.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION 1.1 BACKGROUND INFORMATION OF PROJECT: Narayanposhi Iron & Manganese Ore Mines of Aryan Mining & Trading Corporation Pvt. Ltd. is in the villages of Koira & Kashira and Kathamala RF, Tehesil Koira, district Sundargarh, Odisha. The total lease area is Ha. Mine is in operation since The mine has obtained various statutory clearances as shown below: Lease validity Up to 31 st March The supplementary lease deed was executed on 17th December, Mining Scheme approval for expansion of Iron Ore Production from 3.0 MTPA to 6.0 MTPA & Manganese ore MTPA obtained from IBM vide letter No-MS/FM/43- ORI/BHU/ , dated Forest Clearance obtained from MoEF for ha. Vide letter F.No.8-34/2000-FC / dated 15 th November The Environmental Clearance obtained from MoEF for the production of 3 MTPA Iron Ore & MTPA Mn Ore vide letter.no. J / 288 / 2008-IA.II (M), dated For the above production CTO was obtained with validity up to The enhanced resource base subsequent to exploration carried out in year to has opened the avenues for capacity expansion of this mine from 3.0 MTPA to 6.0 MTPA (ROM) for iron ore & existing MTPA Manganese ore. Besides, it is also proposed to establish a Beneficiation plant of 2.0 MTPA capacity within the mine lease area to improve the quality of ore. MOEF notification stipulates that any change in production requires fresh environmental clearance. 2

3 Prior to obtaining environmental clearance, as per MOEF notification of September 2006, Form I and Feasibility report have to be submitted along with Terms of reference (TOR) for the project for stipulating the TOR for the project by MOEF, Govt. of India. This project falls under category A as per MoEF notification in this respect, because of mining lease being more than 50 Ha. Hence, Form 1, TOR and feasibility report have been submitted to MoEF, New Delhi for their approval and prescribing TOR and according EC after submission of EIA/EMP report to them. This feasibility report for Integrated Narayanposhi Iron & Mn Ore Mines & Beneficiation Plant is prepared in line with the guidelines issued by MOEF, vide their letter dated 30 th September 2010 for increase in iron ore production from 3.0 MTPA to 6.0 MTPA (ROM) & existing Manganese ore production MTPA and establishment of 2.0 MTPA beneficiation plant along with crusher & screen plant within the same ML area for obtaining TOR from MoEF&CC towards getting environmental clearance for the total mine lease area of Ha. 1.2 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT: Narayanposhi Iron & Manganese Ore Mines of Aryan Mining & Trading Corporation Pvt. Ltd is a working mine for the last 6 decades with good approachability and availability of various facilities. There are potential buyers in our country and also abroad to sign long term supply agreement of quality iron ore. Recent exploration in the part of the ML area itself revealed the presence of good iron ore deposit. From the geological trend, more reserves are expected in the adjacent area and thus the overall iron ore reserve potential in the total mine lease area is expected to be good. Considering all these aspects, it is identified now to go for this expansion with an integrated Beneficiation plant in the Narayanposhi Iron & Mn mine lease area. 3

4 PROJECT PROPONENT: Name and Address of the applicant: Mr. Naman Saraf, Executive Director, Aryan Mining & Trading Corporation Pvt Ltd Aryan House, 8 th Floor, P-1, Hide Lane, Kolkata contact@aryanmining.in Phone Fax The lessee is having experience in mining and marketing of Iron & Mn ore for a period of more than 6 decades. As such, it can be seen that the project proponent is having versatile experience and expertise in Iron & Mn ore mining. 1.3 BRIEF DESCRIPTION OF NATURE OF PROJECT: The project envisages increase of iron ore production from 3.0 MTPA to 6.0MTPA (ROM) & existing Mn ore MTPA and establishment of 2.0 MTPA beneficiation plant within the same ML area. The mining operations will be through mechanized opencast mining system, involving shovel-dumper combinations, drilling and blasting etc., as described in chapter III. Beneficiation plant will be adopting latest wet technology comprising Drum scrubbers, double deck wet screens, jigs, dewatering screens, thickening cyclones, Thickener, Filter press. 4

5 1.4 NEED FOR THE PROJECT & ITS IMPORTANCE TO THE COUNTRY AND OR REGION: It is proposed to expand the iron ore mining capacity in Narayanposhi Iron & Mn mine lease to 6.0 MTPA (ROM) and establish a beneficiation plant considering the following reasons: Presence of more than Million ton of resources/reserves within the recently explored mine area and possibility of more reserves if go for further exploration. There is good demand for quality ore in the market. As per Steel ministry estimates, by the year 2020, steel production will get scaled up to MTPA. Proportionately there will be huge demand for Iron ore, which is the raw material for steel industry. Opencast method of mining is the proven technology. Stripping ratio in this mine is 1:0.16. (T:M 3 ). Similarly wet process technology comprising Drum scrubbers, double deck wet screens, jigs, dewatering screens, thickening cyclones, Allflux, WHIMS, Thickener, Filter / Belt press is also proven one. Hence Techno economically this proposal is viable. This is a working mine for the last 6 decades with well laid approach roads and other facilties. No rehabilitation or other social issues involved. Considering all the above said favorable factors it is practically possible to achieve the proposal within the planned period. As far as the importance to our country is concerned, this project will enable to achieve increased outputs of steel and other related products which in turn will help to increase GDP growth of the nation considerably. As the government is planning massive investments in the infrastructural sectors, more and more infrastructural projects are being encouraged to be put up by private players. Towards fulfillment of such Government targets, this project will contribute its own share As far the regional scenario is concerned, the interior under developed tribal area will get a great uplift in terms of social condition betterment, industrial growth and local area development. The State Government will also be benefited financially through 5

6 receipt of royalties, cess, duties, etc, due to project operations. It can be concluded that on an overall basis, sustained industrial growth of the State can be realized to full measure by the present proposal. 2.0 PROJECT DESCRIPTION 2.1 LOCATION: Narayanposhi Iron & Manganese Ore Mines of Aryan Mining & Trading Corporation Pvt. Ltd. is in the villages of Koira & Kashira and Kathamala RF, Tehesil Koira, district Sundargarh Odisha. The total lease area is Ha. Mine is in operation since Topo Sheet No. 73 G/1 & 73 G/5 Latitude Longitude : North : East 2.2 PROJECT DESCRIPTION: MINES: RESERVES: Exploration has been carried out by drilling 128 number of bore holes in between the year to for a total meter age of m. RESERVES: Based on these the geological reserves in the block are estimated as follows: Total Mineral resources in the area for iron ore is Million Tons including proved & probable category which is utilize for planning the mine & for Manganese ore is Million ton. GIST OF MINERAL RESERVE & RESOURCES FOR IRON Total Resources Reserved Category Code Quantity in million tones Grade % (A + B) Proved (111) % Fe (ROM) Probable (122) Sub total (a)

7 B. Remaining Resources Feasibility Mineral Resources Pre-feasibility Mineral (221) (222) % Fe (ROM) Resources Measured Mineral (331) Resources Indicated Mineral (332) Resources Inferred Mineral (333) Resources Reconnaissance Mineral (334) Resources Subtotal (b) GIST OF MINERAL RESERVE & RESOURCES FOR MANGANESE Total Resources Reserved B. Remaining Resources Category Code Quantity in million tones Grade % (A + B) Proved (111) % Probable Mn (122) Subtotal (a) Feasibility Mineral (221) ---- Resources Pre-feasibility Mineral (222) Resources Measured Mineral (331) - Resources Indicated Mineral (332) - Resources Inferred Mineral (333) Resources Reconnaissance Mineral (334) - Resources Subtotal (b)

8 MINING METHOD: In this scheme period, same method of mining i.e. fully mechanized opencast mining method will be adopted by engaging HEMM like Excavator, Pay Loader, Air Compressor, Wagon drill, Rock breakers, Hydraulic drill, dumpers etc for the excavation and production of ROM. From second year onward lessee will produce 6.0 MTPA Iron Ore & MTPA Manganese Ore. Drilling and blasting shall be used only in hard patches which account only 50% of the total excavation. The quarries namely Q-3, 4 & forest block will be developed to produce ROM iron /annum and Q-5 will be worked for ROM manganese / annum. There will be likely generation of waste materials t during the life of the mine from iron ore production & 3,743,726 t or during the life of the mine from Mn ore production. A total of t Mineral reject of iron ore will be obtained conceptually during the life of the mine PRODUCTION SCHEDULE: Year wise planned production schedule of ore and waste for the next five years are tabulated below:- Iron Ore Year IB/Waste (t) Iron Ore (t) ROM Ore (86%) Saleable Ore (65%) Mineral reject (21%) Total

9 Manganese Ore Year Waste (t) Manganese Ore (t) OB IW (78%) Total ROM Ore (22%) Saleable Ore (20%) Mineral reject (2%) ,700 36, ,477 10,373 9, , , ,643 36,002 32,729 3, , , ,203 36,002 32,729 3, , , ,433 36,027 32,752 3, , , ,233 36,027 32,752 3,275 Total 537, ,529 1,084, , ,392 14, BENEFICIATION PLANT: Out of 6.00 MTPA ROM to be produced after expansion, it is expected that about 66.5% of the material amounting to 4.00 MTPA will be of +61% Fe grade and are easily marketable. The balance 2.00 MTPA of sub grade and low grade material is proposed to be beneficiated for improving its quality to +64% Fe. Hence, a beneficiation plant with 2.00 MTPA capacity is planned within in the mine lease area. This plant will have 2 streams each of 185 TPH capacity and will be within the same mine lease area. The capacity of the beneficiation plant will be 2.00 MTPA PLANT DESCRIPTION: The iron ore of size 5-18mm /18 40mm with +45 to -62 %Fe will be feed to the Scrubber followed by hopper with simultaneously receiving the required quantity of water. By the combined action of attrition & scrubbing the adherent clay & silicate contents are washed away from the surface of ore particles. The scrubber output will be discharged to a De-sliming screen, where the products are as follows: +1 to -5 mm +5 to -18 mm / +18 to -40 mm Slurry. 9

10 The above iron ore +5 to -18 mm / +18 to -40 mm along with additional water will feed to the Alljig for further gravity separation and will produce two products i.e. Concentrate Iron ore (+5 to -18 mm / +18 to -40 mm with +62% Fe) Rejects ((+5 to -18 mm / +18 to -40 mm) The rejects will be dewatered and stacked into rejects pile, the water will be sent to Thickener through the common slurry sump. The Concentrate will be dewatered at screen and ore (+5 to -18 mm / +18 to -40 mm with +62% Fe) will be stacked into final product pile, the filtered water will be sent to Thickener through the common slurry sump. The slurry generated from De-sliming screen of scrubber will be feed to Hydro-cyclone for further separation of slurry in respect to ore particle size.i.e micron to -1 mm -150 micron The above +150 micron to -1 mm will be feed to dewatering screen. Separated Ore fines will be stacked at fines stock pile and the screened water will be feed to Thickener through the common slurry sump. Slurry carrying -150 micron particles will be feed to Thickener through the common slurry sump. The above combined slurry will clarified in the Thickener, resultant generation of Clarified water - will be re-used back into process. Thickened slurry (50% solids). The thickened slurry will be feed to Plate Filter Press, resultant generation of Filter cake consisting of about 10 % moisture, which will be disposed to dump yard and later to backfill the mined-out voids. The filtrate water will be sent to thickener. In case of emergency, due to some breakdown of filter press the underflow slurry from the thickener will be discharged to the Emergency Slime Pond. For this purposes 2 no s of emergency slime pond of 40m x 10m is provided. 10

11 Emergency Slime Pond has been provided with a sump and pump for recovery of clarified water. The circuit proposed as above is a totally closed circuit with zero effluent discharge. The detailed process description is given in para , Chapter III. 2.3 LAND USE PATTERN: The present, during mining and post mining land use pattern is given below: Sl. No. Type of land use As at present (ha) As at the end of scheme period (ha) As at the end of Conceptual period (life of mine) (ha) 1 Area under excavation Storage for Topsoil Overburden dump Mineral Storage Infrastructure facilities Road Railways plantation Tailing Pond Effluent Treatment Plant Mineral processing Plant/ Beneficiation plant 12. Township area Others (Manual processing & stacking yard, Processing yard, Water harvesting pond and environment manage ment practices) Sub -Total safety zone Un touched Total

12 2.4 LIFE OF THE MINE: As estimated, quantity of iron ore resource is Mt and iron ore reserve is Mt. During the scheme period, Mt ROM iron ore will be extracted. Remaining reserve will be extracted within a period of 26.49, say 27 say 6 Mt / annum. Hence, life of the mine will be 5 (scheme period) + 27 (beyond scheme period) = 32 years. As estimated, quantity of manganese ore resource is 542,698 t and manganese ore reserve is 534,818 t. During the scheme period, 154,431 t ore will be extracted. Remaining reserve of 380,387 t manganese ore will be extracted within a period of 10.57, say 11 t / annum. Hence, life of the mine will be 5 (scheme period) + 11 (beyond scheme period) = 16 years. 2.5 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY, LIKELY SOURCE, MARKETING AREA OF FINAL PRODUCTS, MODE OF TRANSPORT OF RAW MATERIAL & FINISHED PRODUCT.. About 6.0 MTPA of ROM will be produced from the mine after expansion for iron ore & MTPA for Mn ore. Out of 6.0 MTPA iron ore about 4.0 MTPA of high grade iron ore will be directly sold in the market. The balance 2.0 MTPA will be beneficiated in the beneficiation plant of which about 1.00 MTPA will be the final product. The final product will be having different size and grade. This will be marketed to the steel plant, Sponge iron plant, & pelletisation plant. Major part of the material will be transported by Barsuan Railway sidings located about 30 km from the project. These siding are having surplus capacity to take care of the expansion needs. Besides, remaining material can be transported through NH connecting Panikolli and Rajamunda which is the main ore transporting link connecting Paradeep port, Dhamra port and other iron ore consuming industries in the region namely Kalinganagar, Rourkela, Jharsugura, etc., The NH 215 is being converted in to 4 lane road and the completion work is on 12

13 advance stage. Widening will reduce the traffic congestion and will also increase the carrying capacity of the NH-215 road. Hence, the existing connectivity facilities will be adequate enough to take care of expansion needs. 2.6 RESOURCE OPTIMIZATION / RECYCLING AND REUSE ENVISAGED IN THE PROJECT: During the production of iron ore, high grade iron ore as well as sub grade ore shall be produced. Better grade ore will be marketed directly while the sub-grade/mineral reject/lowgrade ore will be beneficiated in the proposed beneficiation plant within the lease area itself. By this about 83.25% of the material will be converted into marketable grade. The balance 16.75% of reject from the plant will be backfilled in the mine itself. mining sector. This helps towards mineral conservation & effective waste management in iron ore 2.7 AVAILABILITY OF WATER ITS SOURCE, ENERGY/POWER REQUIREMENT & ITS SOURCE WATER REQUIREMENT: The water requirement for the integrated mines is mainly for green belt, dust suppression and drinking water purpose & in beneficiation plant for make up purpose. The total water requirement will be 1275 m 3 /day comprising 250 m 3 /day for green belt, dust-suppression and drinking water purposes and 1025 m 3 /day for Beneficiation plant make up. The entire water required will be sourced from the bore well within the lease premises. The area falls in the safe category as far as the stage of development is concerned POWER REQUIREMENT: The power demand for the integrated mine and beneficiation plant is estimated to be 4000 KVA. Comprising 2000 KVA for mines and 2000 KVA for beneficiation plant. The power requirement will be met from the State grid and backup power from DG Sets. 13

14 2.8 QUANTITY OF WASTES TO BE GENERATED (LIQUID & SOLID) A total of cum will be generated during ensuing scheme period from the iron ore zone. Out of these, an amount of 500,000m3 waste will be utilized for construction and repair of 5 km long road within the lease and m3 wastes will be dumped at two separate locations. The proposed dump -1 will cover an additional area of 6000m2 whereas proposed dump- 4 will cover an additional area of 9023m2. Similarly, dumping for manganese ore will be done at two separate location i.e. proposed dump-2 will cover an additional area of 2350m2 and that of dump- 3 will cover 9429 m2. A total of 493,177m3 wastes will be generated in manganese ore quarries. This waste will be dumped in Dump-2 to the west of manganese Quarry-5 and in a new dump to the south east of Quarry-5 over an area of 16,440m2 in two terraces of 15m height each. As Beneficiation plant is concerned, out of 370 TPH of feed, about 112 TPH (30.27%) of ore waste comprising 62 TPH of screened rejects & 50 TPH of finer rejects in the form of filter cake from Filter Press will be generated. These rejects will be separately collected and directly transferred into mine waste dump yard (temporary) and subsequently backfilled in the mined out void. The filter cake produced from the plant would have an assay of 40 % Fe. The grade is low and therefore it has no market. The final waste generated will be in solid form with about 12 % moisture, after water recovery through thickener and efficient filter / belt press. As far as liquid waste is concerned, the plant adopts zero discharge concept and hence no liquid waste will be generated. 14

15 3.0 SITE ANALYSIS 3.1 CONNECTIVITY NH-215 is passes through the lease area; one side connected to Rajamunda & other side to Panikoili. Barbil is 37 km from the lease area and Koira is only 1.2 Km form lease area. Important towns like Barbil (Mining Town), Rourkela (Steel City) & Barsuan (rail siding) in Orissa state and Chaibasa (Regional Mine Safety Office) & Tata Nagar (Steel City) in Jharkhand state are linked with the area mostly by the Public roads (NH/SH). Barsuan, the nearest railway siding, is located at a distance of 30 km from the lease area. 3.2 LAND FORM, LAND USE &LAND OWNERSHIP: Out of total area ha, ha is forest land & rest ha is non-forest land. Forest clearance has already obtained for ha from MoEF, vide letter F.No.8-34/2000- FC / dated 15 th November 2007 & the remaining ha is safety zone. An area of hectares land is already degraded / utilized for mining, dumping, office, road, etc. An area of hectares is anticipated to be degraded / utilized at the end of the conceptual planning period. 3.3 TOPOGRAPHY The area is marked by undulating hills with altitudes varying from 545m to 640m above MSL. General slope of the area is towards north on an average. Three prominent mounds having their highest points at 640m, 620m and 595m are located in the lease area from south to north. Few spurs are developed in the central portion of the lease area. Another insignificant mound having peak point of RL 605m occur near Quarry-6. All the above peak points are connected with each other in different trends with intervening valleys where from a number of impersistent seasonal nalas emerge 3.4 EXISTING LAND USE PATTERN The total area is ha. Out of it ha is forest land & rest of ha is non-forest land. 3.5 EXISTING INFRASTRUCTURE: 15

16 This being a working mine, all the infrastructural facilities required like approach road, office, stores, etc is already developed. However, for the proposed expansion project all these facilities will be suitably upgraded. 3.6 SOIL CLASSIFICATION: The texture is predominantly clayey in nature. The reaction of the soil is usually neutral. 3.7 CLIMATIC DATA FROM SECONDARY SOURCES The climate of the study area in general is hot and humid. The minimum and maximum temperature ranges from C to C. The maximum humidity is observed during the monsoon season with mean value of 95%. The minimum humidity is observed in December as 26%. Generally the weather during the other seasons is more or less dry and in the comfortable zone. Annual rainfall as obtained as secondary data from meteorological office at IMD Rourkela over a period of 10 years indicates rainfall to be above 1325 mm. Most of the rainfall is received during monsoon season which starts in June and continues till September SOCIAL INFRASTRUCTURE AVAILABLE Koira is the nearest major human habitation (about 1.2 km from site). The town is provided with all basic civic amenities. Tensa 7.0 km from the mine area. Major source of water in the area is the Karo River. Most of the important locations are provided with water supply and electricity. The areas are developed with basic facilities. Most of the important locations are provided with water supply and electricity. Details of various facilities available in the region are given in para 4.8, Chapter IV. 4.0 PLANNING BRIEF 4.1 PLANNING CONCEPT: Planning concept is based on the following criteria: Technical feasibility and economic viability of achieving the increased production Possibility of increasing the grade of ore through beneficiation Availability of market for committed grade of ore on long term basis Absence of ecologically sensitive features 16

17 4.2 ASSESSMENT OF INFRASTRUCTURE DEMAND (PHYSICAL & SOCIAL) Black topped NH-215 passes through the lease area and is connected Panikoili to Rajamunda. As far as social infrastructure is concerned, this being a developing area there is a great demand for it. The proponent will carry out the need based assessment of the locals, social infrastructure demand and will implement good measures towards the same. The details are given in para 4.4, Chapter IV. All the future social demands will be complied considering its need after the expansion of project. 4.3 AMENITIES/FACILITIES All required amenities / facilities required for the mining activities like site office, rest shelter, VTC, Canteen etc are available at the site. These facilities will be suitably upgraded for the expansion. 5.0 REHABILITATION & RESETTLEMENT (R&R) PLAN Establishment of the beneficiation plant and the mine expansion activities will be carried out in the present mine lease area of Ha only. There is no human population/habitation inside the mines lease area. Hence the question of rehabilitation and resettlement does not arise. 6.0 PROJECT SCHEDULE & COST ESTIMATES 6.1 LIKELY DATE OF START OF CONSTRUCTION & LIKELY DATE OF COMPLETION This being a working mine, the envisaged expansion quantity will be achieved in a phased manner. It is proposed to achieve the enhanced 6.0 MTPA iron ore production & existing MTPA manganese ore production in the 2 nd year after commencement of expansion activities. Construction of beneficiation plant will commence after obtaining all the necessary statutory clearances and it is expected to be commissioned in 1 year time. 6.2 ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF THE PROJECT. I) CAPITAL COST: The total project cost for the mine expansion for plant & machinery and pre operative expenses are expected to be Rs. 55 crores where as for the proposed beneficiation plant the 17

18 capital cost is estimated to be Rs Crores ( Stream #1 & 2 ) including Interest during Construction, prevailing taxes and duties. II) OPERATING COST (PRODUCTION COST): The estimated production cost per MT of iron ore after beneficiation is expected to be Rs.1000 to Rs. 1300/ per tonne. The selling price of the iron ore is largely dependent on the quality of the ore. Since it can be ensured that good quality ore is consistently supplied to the customers, price at least 20% higher than the production cost will be definitely obtained. 6.3 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS) The existing mining operations in the area have already brought about positive impact locally by way of employment generation, increase in income generation, creation of infrastructural facility, marked improvement in the life style and living standards of the entire tribal and scheduled caste population of the surrounding area. There will be continued substantial improvement in case of local population in living standards, receipt of per capita income, cultural patterns, living styles, educational standards, etc.after expansion also. The project proponent has already carried out extensive beneficiary works, under their CSR responsibility objectives. These schemes will be further augmented and implemented after expansion and setting up of the beneficiation plant. There will be continual improvements of the local amenities like roads, communication, electricity, water supply, educational & recreational facilities, hospitals/ dispensaries, libraries, availability of variety of goods & services and other basic amenities needed for the local society. As already mentioned earlier, the project will improve the social and physical infrastructural patterns of this interior area in its own way resulting in overall improvement of HDI (Human Development Index). Besides, the Central and State Government will also derive good financial benefits by way of receipt of taxes, duties and Cess. In view of above aspects of the project, the project can be said to be beneficial to the local community, the local region, the State and to the entire country on the whole. * * * * * * * * 18

19 CHAPTER II INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION 2.0 BACKGROUND INFORMATION OF PROJECT: Narayanposhi Iron & Manganese Ore Mines of Aryan Mining & Trading Corporation Pvt. Ltd. Is in the villages of Koira & Kashira and Kathamala RF, Tehesil Koira, district Sundargarh Odisha. The total lease area is Ha. Mine is in operation since The mine has obtained various statutory clearances as shown below: Lease validity Up to 31 st March The supplementary leased deed executed on 17 th December, 2015 (Annexure-1) Mining Scheme approval for expansion of Iron Ore Production from 3.0 MTPA to 6.0 MTPA & Manganese ore MTPA obtained from IBM vide letter No. MS/FM/43- ORI/BHU/ , dated for a period up to (Annexure-2) Forest Clearance obtained from MoEF for ha. Vide letter F.No.8-34/2000-FC / dated 15 th November (Annexure-3) The Environmental Clearance obtained from MoEF for the production of 3 MTPA Iron Ore & MTPA Mn Ore vide letter.no. J / 288 / 2008-IA.II (M), dated (Annexure-4) For the above production CTO was obtained with validity up to (Annexure- 5) The enhanced resource base subsequent to exploration carried out in year to has opened the avenues for capacity expansion of this mine from 3.0 MTPA to 6.0 MTPA (ROM) for iron ore & existing MTPA Manganese ore. Besides, it is also proposed to establish a Beneficiation plant of 2.0 MTPA capacity within the mine lease area to improve the quality of ore. Prior to obtaining environmental clearance, as per MOEF notification of September 2006, Form I and Feasibility report have to be submitted along with Terms of reference (TOR) for the project for stipulating the TOR for the project by MOEF, Govt. of India. 19

20 This project falls under category A as per MoEF notification in this respect, because of mining lease being more than 50 Ha. Hence, Form 1, TOR and feasibility report have been submitted to MoEF, New Delhi for their approval and prescribing TOR and according EC after submission of EIA/EMP report to them. This feasibility report for Integrated Narayanposhi Iron & Mn Ore Mines & Beneficiation Plant is prepared in line with the guidelines issued by MOEF, vide their letter dated 30th September 2010 for increase in iron ore production from 3.0 MTPA to 6.0 MTPA (ROM) & existing Manganese ore production MTPA and establishment of 2.0 MTPA beneficiation plant along with crusher & screen plant within the same ML area for obtaining TOR from MoEF&CC towards getting environmental clearance for the total mine lease area of Ha. 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT: Narayanposhi Iron & Manganese Ore Mines of Aryan Mining & Trading Corporation Pvt. Ltd is a working mine for the last 6 decades with good approachability and availability of various facilities. There are no social problems envisaged due to absence of agricultural land or rehabilitation as in the case of few other projects. There are potential buyers in our country and also abroad to sign long term supply agreement of quality iron ore. Recent exploration in the part of the ML area itself revealed the presence of good iron ore deposit. From the geological trend, more reserves are expected in the adjacent area and thus the overall iron ore reserve potential in the total mine lease area is expected to be good. Considering all these aspects, it is identified now to go for this expansion with an integrated Beneficiation plan in the Narayanposhi Iron & Mn mine lease area. PROJECT PROPONENT: Name and Address of the applicant: Mr. Naman Saraf, Executive Director, Aryan Mining & Trading Corporation Pvt Ltd Aryan House, 8 th Floor, 20

21 P-1, Hide Lane, Kolkata Phone Fax The lessee is having experience in mining and marketing of iron ore for a period of more than 6 decades. As such, it can be seen that the project proponent is having versatile experience and expertise in iron ore mining. 2.2 BRIEF DESCRIPTION OF NATURE OF PROJECT: The project envisages increase of iron ore production from 3.0 MTPA to 6.0MTPA (ROM) & existing Mn ore MTPA and establishment of 2.0 MTPA beneficiation plant along with crusher & screen plant within the same ML area. The mining operations will be through mechanized opencast mining system, involving shovel-dumper combinations, drilling and blasting etc., as described in chapter III. Beneficiation plant will be adopting latest wet technology comprising Drum scrubbers, double deck wet screens, jigs, dewatering screens, thickening cyclones, WHIMS, Thickener, Filter / Belt press. 2.3 NEED FOR THE PROJECT & ITS IMPORTANCE TO THE COUNTRY AND OR REGION: It is proposed to expand the iron ore mining capacity in Narayanposhi Iron & Mn mine lease to 6.0 MTPA (ROM) and establish a beneficiation plant considering the following reasons: Presence of more than Million ton of proved reserves within the recently explored mine area and possibility of more reserves if go for further exploration. The projection of the demand for the iron ore for steel industry is in the upward trend. Domestic steel demand is expected to grow by around 10% 12% annually. Crude steel production in India as per IBM data in the year is 88.4 Million tonnes. As per Steel ministry estimates, by the year 2020, steel production will get scaled up to MTPA. Proportionately there will be 21

22 huge demand for sized high grade Iron ore, which is the raw material for steel industry. Opencast method of mining is the proven technology. Stripping ratio in this mine is 1:0.16. Similarly wet process technology comprising Drum scrubbers, double deck wet screens, jigs, dewatering screens, thickening cyclones, Allflux, WHIMS, Thickener, Filter / Belt press is also proven one. Hence Techno economically this proposal is viable. This is a working mine for the last 6 decades with well laid approach roads and other facilties. No rehabilitation or other social issues involved. Considering all the above said favorable factors it is practically possible to achieve the proposal within the planned period. As far as the importance to our country is concerned, this project will enable to achieve increased outputs of steel and other related products which in turn will help to increase GDP growth of the nation considerably. As the government is planning massive investments in the infrastructural sectors, to the tune of US 500 billion dollars during 11th five year plan period, more and more infrastructural projects are being encouraged to be put up by private players. Towards fulfillment of such Government targets, this project will contribute its own share As far the regional scenario is concerned, the interior under developed tribal area will get a great uplift in terms of social condition betterment, industrial growth and local area development. The State Government will also be benefited financially through receipt of royalties, cess, duties, etc, due to project operations. It can be concluded that on an overall basis, sustained industrial growth of the State can be realized to full measure by the present proposal. 2.4 DEMAND-SUPPLY GAP The Indian steel industry to experience robust growth, with future demand boosting India s per capita consumption of steel from a low base of around 54kg to far higher levels. Steel is expected to remain a key sector for the Indian Government, with the Government encouraging further growth with its increased approval rate of Greenfield projects. 22

23 As earlier mentioned, domestic steel demand is expected to grow by around 10% 12% annually. Crude steel production in India as per IBM data in the year is 88.4 Million tonnes. As per Steel ministry estimates, by the year 2020, steel production will get scaled up to MTPA. Proportionately there will be huge demand for Iron ore, which is the raw material for steel industry. With the domestic steel demand expected to grow rapidly there is a need for greater support from the Indian Government towards increasing the exploration of raw materials and developing enabling infrastructure. 2.5 IMPORT VS. INDIGENOUS PRODUCTION Not Applicable 2.6 DOMESTIC/ EXPORT MARKETS The saleable iron ore raised from the mine is being sold to various consuming industries for Steel Plant, Sponge Plant and Blast Furnace. 2.7 EMPLOYMENT GENERATION The proposed mine expansion and beneficiation plant is expected to generate about 650 no of direct and 1500 no indirect employment. * * * * * * * * 23

24 CHAPTER III PROJECT DESCRIPTION TYPE OF PROJECT: This is an increase in iron ore production from 3.0 MTPA to 6.0 MTPA (ROM) & MTPA manganese ore production and establishment of 2.0 MTPA beneficiation plant within the same ML area. Method of mining will be mecahnised open cast. Beneficiation plant will adopt latest wet technology comprising Drum scrubbers, double deck wet screens, jigs, dewatering screens, thickening cyclones, Thickener, Filter / Belt press. The ore produced from this mine will meet the domestic raw material requirements of various steel plants, sponge iron plants in the region and also can meet export demand. 3.2 LOCATION: Narayanposhi Iron & Manganese Ore Mines of Aryan Mining & Trading Corporation Pvt. Ltd. is in the villages of Koira & Kashira and Kathamala RF, Tehsil Koira, district Sundargarh Odisha. The total lease area is Ha. Mine is in operation since Topo Sheet No. 73 G/1 & 73 G/5 Latitude : North Longitude : East The location Map attached as Figure no DETAILS OF ALTERNATE SITES CONSIDERED & THE BASIS OF SELECTING THE PROPOSED SITE: As far as mine expansion is concerned, since this is an expansion project in the existing mining lease area for which lease already granted, question of alternate site does not arise. It is proposed to set up the beneficiation plant within the mine lease area considering the following reasons: 24

25 Proximity of the mines and hence logistical advantage for transportation of material from mine to feed the plant and also final tailings from the plant to the mined out areas for backfilling. Plant is proposed within the mine lease area only and as such no additional land is required Better road connectivity and approachability Better communication to Haldia Port & Paradeep port. Proximity and availability of ground water source without putting constraints on the existing water system of the locality. No additional infrastructure /transport system for handling the ROM feed /dispatch and hence no further strain on the infrastructure. Absence of any ecologically sensitive features in the region. The operation is economic, cost effective with least land usage within the mining lease area. 3.4 SIZE OR MAGNITUDE OF OPERATION: The current proposal of expansion of iron ore mine capacity to 6.0 MTPA (ROM) & existing MTPA Manganese ore production and setting up of 2.0 MTPA beneficiation plant along with crusher & screen plant is planned in the existing mining lease area of Ha itself. 25

26 LOCATION MAP Figure No 1 26

27 TOPO MAP Figure No 2 27

28 3.5 PROJECT DESCRIPTION: MINES GEOLOGY: Narayanposhi Iron and Manganese Ore Mine is in the southern end of the western limb of the Horse-shoe shaped Iron Ore Range of West Singbhum-Keonjhar-Sundargarh district of Jharkhand & Odisha. The rock types found within the leasehold belong to Banded Iron Formation of Koira Group. The main litho units mapped in this area are laterite, Banded Hematite Jasper, shale of different nature and cherty phyllite. Alluvium occupies especially the low-lying areas. Based on the field studies, the stratigraphic sequence of different litho assemblages of the area is interpreted as follows: Soil & Alluvium Float ore (with Laterite/Canga ore) Iron Ore Group Ferruginous laterite Manganiferous shale with Mn-ore In-situ Iron Ore (with float at places) The litho units of BIF usually trend in a NE-SW to NNE-SSW direction with westerly dips varying from 20 to 70 and their disposition is outlined below- Soil & Alluvium: Traverses along and across the leasehold, however, show that alluvial soil covers a sizeable portion of the area. The alluvium occupies especially the low lying area. These areas are appeared to be barren where village site and low yielding agricultural fields are seen. Ferruginous Laterite: Ferruginous laterites occur as intermediate waste and capping at places on the in situ Iron ore horizons having Fe content or less than 55% and contain both hematite and goethite. 28

29 Float Iron Ore: The float iron ore zones may be considered of two types. The ores are mostly of massive type with big lumps and occur along with lateritic horizons. Float zone continues up to 5-7 m from surface level which is seen in quarry 5 & 6. The second variety of float ore over (+)10 to (-)40mm size with laterites, which is observed in Quarry-1. Conga Zone: In the north eastern corner and western part of the area, canga zones are exposed consisting of boulders, cobbles and pebbles of iron ores re-cemented by lateritic materials. These materials are seen in and around quarry-4 (old) & Quarry-5. Insitu Iron Ore: Below the float ore zone, insitu ore exists and proved up to a depth of 60m from surface level. Because of its bouldery nature, it is sometimes mistaken as float ore. An insitu ore zone is delineated covering all insitu ore working quarries like Q-1,3,4,7 etc. However, on the basis of depth persistence, insitu ore zone is delineated around the Q-1, 2, 3, 4, 6 & 7. Manganiferous Shale: Most of the workable manganese ore deposits occur within this formation. The shale is mostly ferruginous, grey, pink in colour with white streaks. These coloured members do not occur in conspicuous band rather than they are highly mixed up. Manganese bodies usually occur on the crest of the domes in the variegated shale formed due to the superposed folding RESERVES: Exploration has been carried out by drilling 128 number of bore holes in between the year to for a total meter age of m. Based on these, the geological reserves in the block are estimated as follows: 29

30 Total Mineral resources in the area for iron ore is Million Tons including proved & probable category which is utilize for planning the mine & for Manganese ore is Million ton. GIST OF MINERAL RESERVE & RESOURCES FOR IRON Total Resources Reserved B. Remaining Resources Category Code Quantity in million tones Grade % (A + B) Proved (111) % Fe (ROM) Probable (122) Sub total (a) Feasibility Mineral Resources Pre-feasibility Mineral (221) (222) % Fe (ROM) Resources Measured Mineral (331) Resources Indicated Mineral (332) Resources Inferred Mineral (333) Resources Reconnaissance Mineral (334) Resources Subtotal (b) GIST OF MINERAL RESERVE & RESOURCES FOR MANGANESE Total Resources Reserved B. Remaining Resources Category Code Quantity in million tones Grade % (A + B) Proved (111) % Probable Mn (122) Subtotal (a) Feasibility Mineral (221) ---- Resources Pre-feasibility Mineral (222)

31 Resources Measured Mineral (331) - Resources Indicated Mineral (332) - Resources Inferred Mineral (333) Resources Reconnaissance Mineral Resources (334) - Subtotal (b) MINING METHOD: Details of the Existing Quarry Continuation of mining operation since 1945 has resulted 4 iron ore quarries (Q-3, 4, 5 & 6) & 7 manganese quarries [Q-1A, 1B, 1C, 1D, 3A, 3B & 4(old)] in iron ore zone and 3 manganese quarries [Q-2, 5 & 5 (old)] in manganese ore zone. The maximum development and production has been from Quarry-3 in iron ore zone and Quarry-5 in manganese ore zone. Most of the quarries are scattered in nature and distributed throughout the lease area. Out of these, Q-5 and Q-5 (old) contain manganese ore zone and others are located in iron ore zone. As far as drilling is concerned manganese ore is not proved in iron ore zone. Incidental availability of manganese ore cannot be ruled out. Details of the Existing Dump There exist two (2) dumps in the lease area. One is located near Quarry-3 in iron ore zone and another one is near Quarry-5 in manganese ore zone. However, the dumps have been detailed as follows: Sl. Name of the ore Name of Dimension Status No zone Dump Length (m) Breadth (m) Area (m 2 ) 1 Fe-Ore Dump ,680 Active 2 Mn-Ore Dump ,200 -do- --- Total , Details of the Existing Stack Yard Stacks of ROM ore, processed ore like CLO & fines and Mineral reject available in the M.L area are as follows: Type of Ore Product / Size Quantity (t) Grade (% Fe) Iron Ore Lumps (40-200mm) % 31

32 Lumps (40-200mm) % Lumps (10-40mm) % Lumps (10-40mm) % Natural fines % Natural fines % Screened Fines % Mineral reject (Scr. Fines) % Re-screened Mineral reject 3-10mm % Re-screened Mineral reject 0-3mm % CLO 5-18mm to 64.99% Crushed Fines to 61.99% Crushed Fines to 64.99% Mineral reject Lump (40-200mm) % Mineral reject Lump (10-40mm) % Total Grade (% Mn) Manganese Lump(10-75mm) % & Above Ore Lump(10-75mm) % Lump(10-75mm) % Lump(10-75mm) Below 25% Total PROPOSED METHOD OF MINING: On account of exposures of iron ore as well as manganese ore and its limited depth of occurrence, opencast mechanized method of mining will continue on three shift basis with the deployment of drills, associated compressors, dumpers/tippers, excavators and other auxiliary equipments for development, production, processing, protection of environment and safety. As per the MCDR, 1988, the mine comes under Category-A (Fully Mechanized) Mine. Strategy for Development: In the approved Scheme of mining, the quarries namely Q-3, 4, 5 & 7 were proposed be developed to 6.0 million tons of iron ore(rom) per annum and Q-5 was proposed to be worked for ROM manganese 0.036million ton / annum. However, to obtain the same 32

33 production quantity of iron ore it has been planned to develop Quarry No-3, 4 and an additional quarry within Kathamala R.F. The height and width of the benches for iron ore will be kept at 9m and 12m respectively. As the capacity of the dumper will be 30t,the width of the benches has been planned to change from 10m to 12m. The height and width of the proposed manganese quarry will be 6m (height) and 10m (width). The layout of roads for haulage of ore/ waste and access to different installation in the mine will be developed complying with the statutory regulations stipulated in the Metalliferrous Mines Regulations, Waste and sub-grade ore /mineral reject will be dispatched to the dumping and stacking sites located in the lease area. Twelve meter wide haul road will be developed in the lease area as per need at a gradient up to 1:16. In this scheme period, same method of mining i.e. fully mechanized opencast mining method will be adopted by engaging HEMM like Excavator, Pay Loader, Air Compressor, Wagon drill, Rock breakers, Hydraulic drill, dumpers etc for the excavation and production of ROM. From second year onward lessee will produce 6.0 MTPA Iron Ore & MTPA Manganese Ore. Drilling and blasting shall be used only in hard patches which account only 50% of the total excavation. The quarries namely Q-3, 4 & forest block will be developed to produce ROM iron /annum and Q-5 will be worked for ROM manganese / annum. Height and width of the benches will be maintained at 9m and 12m respectively in Q-3, Q-4 and forest block in iron ore zone. The individual benches will be kept nearly vertical (85 0 ) while overall quarry slope angle will be maintained at around 27 0 with horizontal. Similarly, Q-5 in manganese ore zone will be developed by 6m high and 10m wide benches. Individual bench slope angle will be maintained at 85 0 while overall quarry slope angle will be at around 31 0 with the horizontal. At the end of scheme period, hectares will be utilized for production of iron as well as manganese as indicated above and hectares will be degraded/utilized in all total due to various activities. A total of cum will be generated during ensuing scheme period from the iron ore zone. Out of these, an amount of 500,000m3 waste will be utilized for construction and repair of 5 km long road within the lease and m3 wastes will be dumped at two 33

34 separate locations. The proposed dump -1 will cover an additional area of 6000m2 whereas proposed dump- 4 will cover an additional area of 9023m2. Similarly, dumping for managanese ore will be done at two separate location i.e. proposed dump-2 will cover an additional area of 2350m2 and that of dump- 3 will cover 9429 m2. A total of 493,177m3 wastes will be generated in manganese ore quarries. This waste will be dumped in Dump-2 to the west of manganese Quarry-5 and in a new dump to the south east of Quarry-5 over an area of 16,440m2 in three terraces of 30m height each. As per as Beneficiation plant is concerned, out of 370 TPH of feed, about 112 TPH (30.27%) of ore waste comprising 62 TPH of screened rejects & 50 TPH of finer rejects in the form of filter cake from Filter Press will be generated. These rejects will be separately collected and directly transferred into mine waste dump yard (temporary) and subsequently backfilled in the mined out void. The filter cake produced from the plant would have an assay of 40 % Fe. The grade is low and therefore it has no market. The final waste generated will be in solid form with about 12 % moisture, after water recovery through thickener and efficient filter / belt press. As far as liquid waste is concerned, the plant adopts zero discharge concept and hence no liquid waste will be generated. Plan showing the details of surface features existing in the mine lease area, present mine, dump position and conceptual mine, dump position are given as Plate No 2 & 3. 34

35 Plate No -2: Surface layout plan 35

36 Plate No - 3: Conceptual plan 36

37 PRODUCTION SCHEDULE: Year wise planned production schedule of ore and waste for the next five years are tabulated below:- Iron Ore Year IB/Waste (t) Iron Ore (t) ROM Ore (86%) Saleable Ore (65%) Mineral reject (21%) Total Manganese Ore Year Waste (t) Manganese Ore (t) OB IW (78%) Total ROM Ore (22%) Saleable Ore (20%) Mineral reject (2%) ,700 36, ,477 10,373 9, , , ,643 36,002 32,729 3, , , ,203 36,002 32,729 3, , , ,433 36,027 32,752 3, , , ,233 36,027 32,752 3,275 Total 537, ,529 1,084, , ,392 14,039 37

38 DETAILS OF MACHINERY: The following are the steps involved for winning Iron Ore. Unit operation Name Dia / Capacity Iron Ore Numbers Manganese Ore Drilling DTH drills 100mm ( stand by) 2 Excavation & loading DTH drills 100mm Compressor 450 cfm Excavator 3 m m m Pay loader 2.5m Transporting JCB Leveling & road making Mineral Processing Environmental Protection & Dumper 35 t Dumper 30 t Tipper 10 t Dozer 300 HP Mobile 200tph screening -do- 150tph do- 100tph Fixed Crusher 350tph Mobile Crusher 150tph tph Stand by 150tph mobile crusher -do- 100tph Stand by 150tph mobile screen -do- 100tph do- 200tph Revolving Screen 10tph Water Tanker 10kl Total 38

39 industrial use Miscellaneous Rock breaker Diesel Pump 25 HP Diesel Pump 30 HP Electric Pump 30 HP Light vehicles Ambulance GRADE OF ORE: In the present market scenario, cut-off grade is considered at 45% Fe as per IBM threshold norms of iron ore. The average grade of ROM is +45% Fe as such, entire ROM is considered. For this, no sub grade or waste shall be generated. However, after processing, there will be generation of below 45% Fe material. This material is considered as waste and the generation is about 20 to 30% from the total feed. After sorting and picking, the average grade of iron ore of this mine comes to 50 60% Fe. Manganese ore cut-off grade is +10% Mn BENEFICIATION PLANT: Out of 6.00 MTPA ROM to be produced after expansion, it is expected that about 67% of the material amounting to 4.0 MTPA will be of +62% Fe grade and are easily marketable. The balance 2.0 MTPA of sub grade and low grade material is proposed to be beneficiated for improving its quality to +62% Fe. Hence, a beneficiation plant with 2.0 MTPA capacity is planned within in the mine lease area. From which the final product will be 1.0 MTPA. This plant will have 2 streams each of 185 TPH capacity and will be within the same mine lease area. (Refer Figure No 3) 39

40 (Figure No 3) Location of Beneficiation Plant within ML area Mineral processing/ Beneficiation plant area 40

41 PLANT DETAILS: The capacity of the beneficiation plant will be 2.00 MTPA with the following production scheme: The capacity of the beneficiation plant will be 2.0 MTPA or 2x185TPH with the following production scheme: 1) Hourly feed in Beneficiation plant (TPH) ) Working hour per day ) No of working days in a year ) Annual raw material feed MTPA (between 55 to 62% Fe) 5) Of this, the saleable materials are: a) Product from the Beneficiation 45.95% recovery of concentrate MTPA (above 62 Fe %) b) Sub product from the Beneficiation 23.78% recovery of which 25% is expected to be marketable MTPA (between 60 to 62% Fe) Total Marketable ore say 1.00 MTPA c) Remaining sub-product will be stacked MTPA (+58 to -60 % Fe) 6) will be waste MTPA (Temporarily dumped in waste dumps and than sent to back-filling) Note: The remaining sub product of 0.36 MTPA will be blended with high grade ore as per the requirement and sold as direct feed to the pellet plant operating in the surrounding region PLANT DESCRIPTION: The proposed beneficiation plant will adopt wet process with the latest State of Art technology comprising of Drum scrubbers, double deck wet screens, jigs, dewatering and rinsing screens, thickening cyclones, Hi-frequency screens, Filter press, etc, This technology is selected due to the following reasons: - No fugitive dust emission due to wet process technology 41

42 - The entire water circuit will be of closed cycle and the entire wastewater will be reused /recycled. No waste water will be discharged outside the premises. As such no water pollution, besides minimum water usage. - Chemicals are not used for washing. - No tailing dam is involved due to installation of filter press - Better ore recovery - Less land requirement since tailing dam is not required. - Due to its process simplicity and compact in nature it can be integrated in with the existing mining activity. On the whole, it can be concluded that this technology is environment - friendly with better ore recovery PROCESS FLOW The iron ore of size 5-18mm /18 40mm with +45 to -62 %Fe will be feed to the Scrubber followed by hopper with simultaneously receiving the required quantity of water. By the combined action of attrition & scrubbing the adherent clay & silicate contents are washed away from the surface of ore particles. The scrubber output will be discharged to a De-sliming screen, where the products are as follows: +1 to -5 mm +5 to -18 mm / +18 to -40 mm Slurry. The above iron ore +5 to -18 mm / +18 to -40 mm along with additional water will feed to the Alljig for further gravity separation and will produce two products i.e. Concentrate Iron ore (+5 to -18 mm / +18 to -40 mm with +62% Fe) Rejects ((+5 to -18 mm / +18 to -40 mm) The rejects will be dewatered and stacked into rejects pile, the water will be sent to Thickener through the common slurry sump. 42

43 The Concentrate will be dewatered at screen and ore (+5 to -18 mm / +18 to -40 mm with +62% Fe) will be stacked into final product pile, the filtered water will be sent to Thickener through the common slurry sump. The slurry generated from De-sliming screen of scrubber will be feed to Hydro-cyclone for further separation of slurry in respect to ore particle size.i.e micron to -1 mm -150 micron The above +150 micron to -1 mm will be feed to dewatering screen. Separated Ore fines will be stacked at fines stock pile and the screened water will be feed to Thickener through the common slurry sump. Slurry carrying -150 micron particles will be feed to Thickener through the common slurry sump. The above combined slurry will clarified in the Thickener, resultant generation of Clarified water - will be re-used back into process. Thickened slurry (50% solids). The thickened slurry will be feed to Plate Filter Press, resultant generation of Filter cake consisting of about 10 % moisture, which will be disposed to dump yard and later to backfill the mined-out voids. The filtrate water will be sent to thickener. In case of emergency, due to some breakdown of filter press the underflow slurry from the thickener will be discharged to the Emergency Slime Pond. For this purposes 2 no s of emergency slime pond of 40m x 10m is provided. Emergency Slime Pond has been provided with a sump and pump for recovery of clarified water. Over-all this proposed process is totally closed circuit with zero effluent discharge, nearly 95-97% water can be recovered from the circuit. Resultant, make up of fresh water to the tune of 54 m3/hr will be added. The Mass & Water balance diagram cum process flow diagram are shown Fig-4 43

44 The circuit proposed is a totally closed circuit with zero effluent discharge. Figure-4 PROJECT NO. 44

45 MASS BALANCE DIAGRAM FIG NO 2.1 LOW GRADE ORE 5-18MM (185TPH) LOW GRADE ORE 18-40MM (185TPH) TOTAL (370TPH- 100%) WET SCRUBBING WET SCRUBBING WET SCREENING ` JIGGING JIGGING ` WET SCREENING 1-5MM 5-18MM PRODUCT 85 TPH Fines 5-18MM THICKNER Fines Fines 18-40MM PRODUCT 85 TPH 1-5MM PRODUCT (170TPH %) SUB PRODUCT 10 TPH SUB PRODUCT 34 TPH SUB PRODUCT 34 TPH SUB PRODUCT 10 TPH SUB PRODUCT (88TPH %) REJECTS 31TPH REJECTS 31TPH REJECTS REJECT 50TPH (112TPH %) W ATE R B AL ANCE DIAG RAM ( PR O C E S S) FIG N O 2.2 ALL VALU ES IN M 3 M AK E UP WATE R in M 3/hr RE CO VE R ED WA TER SC R UB B IN G S C REE N IN G JIGG ING LOSS 1 84 LOS S PUM P S U MP C OL LECTION TAN K TH ICK E N ER 5 0 F ILTE R P R ESS L OSS 45

46 Fig-5 PLOT PLAN 250 M 4000T Ø27 MTR T Ø24 MTR RJT5-18mm HIGHT-6 MTR. 160 M TAILING THICKENER DIA 30MTR. Ø mm HOPPER SCRUBBER SCRUBBER HOPPER JIG JIG HOPPER PLANT BOUNDARY HIGHT-6 MTR. SCALE : NTS 46

47 3.6 LAND USE PATTERN: As already mentioned, the total lease area is The present, during mining and post mining land use pattern is given below: Sl. No. Type of land use As at present (ha) As at the end of scheme period (ha) As at the end of Conceptual period (life of mine) (ha) 1 Area under excavation Storage for Topsoil Overburden dump Mineral Storage Infrastructure facilities Road Railways plantation Tailing Pond Effluent Treatment Plant Mineral processing Plant/ Beneficiation plant 12. Township area Others (Manual processing & stacking yard, Processing yard, Water harvesting pond and environment manage ment practices) Sub -Total safety zone Un touched Total

48 3.5.9 LIFE OF THE MINE: As estimated, quantity of iron ore resource is Mt and iron ore reserve is Mt. During the scheme period, Mt ROM iron ore will be extracted. Remaining reserve will be extracted within a period of 26.49, say 27 say 6 Mt / annum. Hence, life of the mine will be 5 (scheme period) + 27 (beyond scheme period) = 32 years. As estimated, quantity of manganese ore resource is 542,698 t and manganese ore reserve is 534,818 t. During the scheme period, 154,431 t ore will be extracted. Remaining reserve of 380,387 t manganese ore will be extracted within a period of 10.57, say 11 t / annum. Hence, life of the mine will be 5 (scheme period) + 11 (beyond scheme period) = 16 years. 3.6 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY, LIKELY SOURCE, MARKETING AREA OF FINAL PRODUCTS, MODE OF TRANSPORT OF RAW MATERIAL & FINISHED PRODUCT.. About 6.0 MTPA of ROM will be produced from the mine after expansion for iron ore & MTPA for Mn ore. Out of 6.0 MTPA iron ore about 4.0 MTPA of high grade iron ore will be directly sold in the market. The balance 2.0 MTPA will be beneficiated in the beneficiation plant of which about 1.00 MTPA will be the final product. The final product will be having different size and grade. This will be marketed to the steel plant, Sponge iron plant, & pelletisation plant. Besides some quantity can be exported also. Major part of the material will be transported by Barsuan Railway sidings located about 30 km from the project. These siding are having surplus capacity to take care of the expansion needs. Besides, remaining material can be transported through NH connecting Panikolli and Rajamunda which is the main ore transporting link connecting Paradeep port, Dhamra port 48

49 and other iron ore consuming industries in the region namely Kalinganagar, Rourkela, Jharsugura, etc., The NH 215 is being converted in to 4 lane road and the completion work is on advance stage. Widening will reduce the traffic congestion and will also increase the carrying capacity of the NH-215 road. Hence, the existing connectivity facilities will be adequate enough to take care of expansion needs. 3.7 RESOURCE OPTIMIZATION / RECYCLING AND REUSE ENVISAGED IN THE PROJECT: During the production of iron ore, high grade iron ore as well as sub grade ore shall be produced. Better grade ore will be marketed on the sub-grade/low-grade ore will be beneficiated in the proposed beneficiation plant within the lease area itself. By this about 83.25% of the material will be converted into marketable grade. The balance 16.75% of reject from the plant will be backfilled in the mine itself. This helps towards mineral conservation & effective waste management in iron ore mining sector. 3.8 AVAILABILITY OF WATER ITS SOURCE, ENERGY/POWER REQUIREMENT & ITS SOURCE WATER REQUIREMENT: The water requirement for the integrated mines is mainly for green belt, dust suppression and drinking water purpose & in beneficiation plant for make up purpose. The total water requirement will be 1275 m3/day Sl.no Purpose quantity, m 3 /day 1. Mining (green belt, dust suppression & domestic) Beneficiation plant Makeup 54m3/hr x 18 hrs/day & other allied activities 1025 Total

50 The entire water required will be sourced from the bore well within the lease premises. The area falls in the safe category as far as the stage of development is concerned POWER REQUIREMENT: The power demand for the integrated mine and beneficiation plant is estimated to be 4000 KVA. Comprising 2000 KVA for mines and 2000 KVA for beneficiation plant. The power requirement will be met from the State grid and backup power from DG Sets. 3.9 QUANTITY OF WASTES TO BE GENERATED (LIQUID & SOLID) A total of cum will be generated during ensuing scheme period from the iron ore zone. Out of these, an amount of 500,000m3 waste will be utilized for construction and repair of 5 km long road within the lease and m3 wastes will be dumped at two separate locations. The proposed dump -1 will cover an additional area of 6000m2 whereas proposed dump- 4 will cover an additional area of 9023m2. Similarly, dumping for managanese ore will be done at two separate location i.e. proposed dump-2 will cover an additional area of 2350m2 and that of dump- 3 will cover 9429 m2. A total of 493,177m3 wastes will be generated in manganese ore quarries. This waste will be dumped in Dump-2 to the west of manganese Quarry-5 and in a new dump to the south east of Quarry-5 over an area of 16,440m2 in two terraces of 15m height each. From beneficiation plant, out of 370 TPH of feed, about 112 TPH (30.27%) of ore waste comprising 62 TPH of screened rejects & 50 TPH of finer rejects in the form of filter cake from Filter Press will be generated. These rejects will be separately collected and directly transferred into mine waste dump yard (temporary) and subsequently backfilled in the mined out void. The filter cake produced from the plant would have an assay of 40 % Fe. The grade is low and therefore it has no market. The final waste generated will be in solid form with about 12 % moisture, after water recovery through thickener and efficient filter / belt press. As far as liquid waste is concerned, the plant adopts zero discharge concept and hence no liquid waste will be generated. 50

51 MTPA TO 6.0 MTPA (ROM) FOR IRON ORE & EXISTING MTPA MANGANESE ORE AND SETTING UP OF 2.0 MTPA 3.10 Schematic representations of the feasibility drawing which give information of EIA purpose CLEARANCE OF VEGETATION IN THE MINING LEASE FOLIAGE & WOOD FOR DOMESTIC PURPOSE FLORA & FAUNA SOCIO ECONOMY WATER REGIME O T H E R I M P A C T S MINING PROJECT SITE PREPARATION FOR DRILLING & BLASTING DRILLING & BLASTING EXCAVATION & TRANSPORTATION SCREENING, CRUSHING & BENEFICIATION DEGRADATION OF FOREST LAND REMOVAL OF TOP SOIL & OVER BURDEN (STACKING IN DUMP YARD) DUST GENERATION, NOISE & VIBRATION, EXHAUST EMISSION DUST GENERATION, NOISE & LOCALIZED VIBRATION, EXHAUST EMISSION FROM HEMM GENERATION OF DUST, LOCALIZED VIBRATION GENERATION OF DUST, SURFACE RUN OFF, SILT LAND USE GRADED & SIZED IRON ORE STACKING OF MINERALS DUST DUE TO STACKING OF MINERALS TRANSPORTATION TO INDUSTRIES GASEOUS EMISSION, DUST GENERATION, TRAFFIC 51

52 4.1 CONNECTIVITY CHAPTER IV SITE ANALYSIS NH-215 is passes through the lease area which is one side connected to Rajamunda & other side Panikoili. Barbil is 37 km from the lease area and Koira is only 1.2 Km form lease area. Important towns like Barbil (Mining Town), Rourkela (Steel City) & Barsuan (rail siding) in Odisha state and Chaibasa (Regional Mine Safety Office) & Tata Nagar (Steel City) in Jharkhand state are linked with the area mostly by the Public roads (NH/SH). Barsuan, the nearest railway siding, is located at a distance of 30 km from the lease area. 4.2 LAND FORM, LAND USE & LAND OWNERSHIP: Out of total area ha ha is forest land & rest ha is non-forest land. Forest clearance already obtained for ha from MoEF, vide letter F.No.8-34/2000-FC / dated 15 th November 2007 & the remaining ha is safety zone. An area of hectares land is already degraded / utilized for mining, dumping, office, road, etc. An area of hectares is anticipated to be degraded / utilized at the end of the conceptual planning period. 4.3 TOPOGRAPHY (ALONG WITH MAP) The area is marked by undulating hills with altitudes varying from 545m to 640m above MSL. General slope of the area is towards north on an average. Three prominent mounds having their highest points at 640m, 620m and 595m are located in the lease area from south to north. Few spurs are developed in the central portion of the lease area. Another insignificant mound having peak point of RL 605m occur near Quarry-6. All the above peak points are connected with each other in different trends with intervening valleys where from a number of im-persistent seasonal nalas emerge. 4.4 EXISTING LAND USE PATTERN As already mentioned, the entire mine lease area of Ha which consists of both forest & non-forest land. 52

53 4.5 EXISTING INFRASTRUCTURE: This being a working mine all the infrastructural facilities required like approach road, office, stores, etc are already developed. However, for the proposed expansion project all these facilities will be suitably upgraded. 4.6 SOIL CLASSIFICATION: The texture is predominantly clayey in nature. The reaction of the soil is usually neutral. 4.7 CLIMATIC DATA FROM SECONDARY SOURCES The climate of the study area in general is hot and humid. The minimum and maximum temperature ranges from C to C. The winter seasons sets in towards end of November and continues till February. The temperature gradually rises after February and March to May is the summer season. This is also referred to as Pre-monsoon season. The maximum humidity is observed during the monsoon season with mean value of 95%. The minimum humidity is observed in December as 26%. Generally the weather during the other seasons is more or less dry and in the comfortable zone. Annual rainfall as obtained as secondary data from meteorological office at IMD Sundargarh over a period of 10 years indicates rainfall to be above 1325 mm. Most of the rainfall is received during monsoon season. The monsoon starts in June and continues till September. The maximum amount of rainfall in received in July and also the maximum rainy days occurs in July. Wind speed is by and large moderate and varies between slow to medium with maximum speed reaching a value of 10.5 km/h. During early monsoon and during retrieval of monsoon wind speed is very high. 4.8 SOCIAL INFRASTRUCTURE AVAILABLE Koira is the nearest major human habitation (about 1.2 km from site). The town is provided with all basic civic amenities. Tensa is 7.0 km from the mine lease area. Major source of water in the area is the Karo River. Most of the important locations are provided with water supply and electricity. The areas are developed with basic facilities. 53

54 Medical facilities: Medical facilities available in and around the area includes dispensaries, hospitals, health center, public health sub-centers etc. Almost all villages have medical facilities either at door or within 5-10 km. Electricity: All the villages in and around the area access to have power supply. Education facility: Schools, namely primary, middle school to high school are available in the study area. Almost 79% villages have education facilities. Number of private schools are also operative in around the area. * * * * * * * * 54

55 CHAPTER V PLANNING BRIEF 5.1 PLANNING CONCEPT: Planning concept is based on the following criteria: Technical feasibility and economic viability of achieving the increased production Possibility of increasing the grade of ore through beneficiation Availability of market for committed grade of ore on long term basis Absence of ecologically sensitive features 5.2 POPULATION PROJECTION The increase in production and establishment of beneficiation plant will definitely increase the manpower requirement both directly and indirectly which will lead to increase in population due to this integrated project. Major villages/towns located within a radius of 5 km from mine lease site are: Koira Kashira Kamarha Balajori Nadikashira Nuagaon The area in general is not densely populated and it can easily absorb the additional increase in population due to this proposed integrated project. 55

56 5.3 Land Use planning The land use existing, after 5 years and during the conceptual period is given below: Sl. No. Type of land use As at present (ha) As at the end of scheme period (ha) As at the end of Conceptual period (life of mine) (ha) 1 Area under excavation Storage for Topsoil Overburden dump Mineral Storage Infrastructure facilities Road Railways plantation Tailing Pond Effluent Treatment Plant Mineral processing Plant/ Beneficiation plant 12. Township area Others (Manual processing & stacking yard, Processing yard, Water harvesting pond and environment manage ment practices) Sub -Total safety zone Un touched Total

57 5.4 ASSESSMENT OF INFRASTRUCTURE DEMAND (PHYSICAL & SOCIAL) Black topped NH 215 passes through the lease area and is connected to Panikoili Rajamunda. As far as social infrastructure is concerned, this being a developing area & there is a great demand for it. The proponent has carried out need based assessment of the locals, social infrastructure demand and is implementing good measured towards the same. The details of infrastructure already identified and developed in the region are given below: S. No Activity Amount (Rs in Lacs) Period 1 Infrastructure Development (up to Nov 2015) 2 Drinking Water Supply at nearby villages 0.18 and schools 3 Health & Awareness Education and support for sustainable 1.74 livelihood 5 Sports & recreations Water sprinkling for dust Suppressions at Koira village 5.92 Total Infrastructure Development Drinking Water Supply at nearby villages 3.68 and schools 3 Health & Awareness Education and support for sustainable 3.22 livelihood 5 Sports & recreations Water sprinkling for dust Suppressions at Koira village 7 Awareness campaign 0.41 Total Infrastructure Development

58 2 Drinking Water Supply at nearby villages and schools 3 Health & Awareness Education and support for sustainable 6.00 livelihood 5 Sports & recreations Development of Green belt at 6.99 Bhubaneswar city Total Infrastructure Development Drinking Water Supply at nearby villages 2.55 and schools 3 Health & Awareness Education and support for sustainable 4.21 livelihood 5 Sports & recreations Development of Green belt at Bhubaneswar city Total Infrastructure Development Drinking Water Supply at nearby villages and schools 3 Health & Awareness Education and support for sustainable 2.72 livelihood 5 Sports & recreations 3.75 Total Infrastructure Development Drinking Water Supply at nearby villages and schools

59 3 Health & Awareness Education and support for sustainable 2.26 livelihood 5 Sports & recreations Water sprinkling for dust Suppressions at Koira village Awareness campaign 0.38 Total All the future social demands will be complied considering its need after the expansion of project. 5.5 AMENITIES/FACILITIES All required amenities / facilities required for the mining activities like site office, rest shelter, VTC, Canteen etc are available at the site. These facilities will be suitably upgraded for the expansion. * * * * * * * * 59

60 CHAPTER VI PROPOSED INFRASTRUCTURE 6.1 INDUSTRIAL AREA The project area does not fall in the notified industrial area. 6.2 RESIDENTIAL AREA (NON PROCESSING AREA) There are no residential plots within the mine lease area. 6.3 GREEN BELT Green belt development will be carried out in all possible area comprising in the safety zone around mine lease, along un-diverted road within the lease etc. 6.4 SOCIAL INFRASTRUCTURE Good social infrastructural facility exists in the area. However, these facilities will be suitably upgraded to meet the increased requirements. 6.5 CONNECTIVITY As mentioned in para 4.1, the mine is well connected with Nh-215 (passing through the lease area) which is connected Panikoili to Rajamunda. The nearest town is Barbil which is about 37.0 Km from the mines & Koira is a semi town which is 1.2 Km from the mines. The nearest railway station is Barbil. Further Barsuan Railway siding is situated at a distance of 30.0 KM. 6.6 DRINKING WATER MANAGEMENT (SOURCE & SUPPLY OF WATER) The total water requirement for the integrated project is estimated to be 1275 m 3 /day; 250 m 3 /day for mining and 1025 m 3 /day for beneficiation plant make up & allied activities. The entire water required is and will be sourced from the bore well within the plant premises. The area falls in the safe category as far as the stage of development is concerned. 6.7 SEWERAGE SYSTEM. The domestic waste water is being passed through the soak pit. These measures will be suitably augmented for expansion. 6.8 INDUSTRIAL WASTE MANAGEMENT In the mining project no process effluent are generated. However, in the beneficiation plant, the slurry generated from de-sliming screen of scrubber will be feed to Hydro-cyclone for further separation of slurry in respect to ore particle size.i.e. 60

61 +150 micron to -1 mm -150 micron The above +150 micron to -1 mm will be feed to dewatering screen. Separated Ore fines will be stacked at fines stock pile and the screened water will be feed to Thickener through the common slurry sump. Slurry carrying -150 micron particles will be feed to Thickener through the common slurry sump. The above combined slurry will clarified in the Thickener, resultant generation of Clarified water - will be re-used back into process. Thickened slurry (50% solids). The thickened slurry will be feed to Plate Filter Press, resultant generation of Filter cake consisting of about 10 % moisture, which will be disposed to dump yard and later to backfill the mined-out voids. The filtrate water will be sent to thickener. In case of emergency, due to some breakdown of filter press the underflow slurry from the thickener will be discharged to the Emergency Slime Pond. For this purposes 2 no s of emergency slime pond of 40m x 10m is provided. Emergency Slime Pond has been provided with a sump and pump for recovery of clarified water. Over-all this proposed process is totally closed circuit with zero effluent discharge. 6.9 SOLID WASTE MANAGEMENT The details of soild waste generation from the mine, beneficiation plant and its management is given in para 3.9, Chapter III POWER REQUIREMENT & SUPPLY/SOURCE The power demand for the integrated mine and beneficiation plant is estimated to be 4000 KVA. Comprising 2000 KVA for mines and 2000 KVA for beneficiation plant. The power requirement will be met from the State grid and backup power from DG Sets. * * * * * * * * 61

62 CHAPTER VII REHABILITATION & RESETTLEMENT (R&R) PLAN Establishment of the beneficiation plant and the mine expansion activities will be carried out in the present mine lease area of Ha only. The entire ML is consists of both forest & non-forest land and there are no human population inside the mines lease area. Hence the question of rehabilitation and resettlement does not arise. * * * * * * * * 62

63 CHAPTER VIII PROJECT SCHEDULE & COST ESTIMATES 8.1 LIKELY DATE OF START OF CONSTRUCTION & LIKELY DATE OF COMPLETION This being a working mine, the envisaged expansion quantity will be achieved in a phased manner. It is proposed to achieve the enhanced 6.0 MTPA iron ore production in the 2 nd year after commencement of expansion activities. Construction of beneficiation plant will commence after obtaining all the necessary statutory clearances and it is expected to be commissioned in 1 year time. 8.2 ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF THE PROJECT. III) CAPITAL COST: A) Mines: The total project cost for the mine expansion is expected to be Rs. 55 crores with the following break up: Plant & machinery - Rs.45.0 crores Pre operative expenses - Rs crores Total Rs crores B) Beneficiation Plant: The project cost for this proposed beneficiation plant is estimated to be Rs Crores (Stream #1 &2 ) including Interest during Construction, prevailing taxes and duties. The details are as below: Particulars Rs in Crores 1. Land & Site Development Civil works All structural, conveyor system and pipes and fittings Design & Engineering Consultancy Equipments (Scrubber, Screen, Jig, pumps etc)

64 6. Electrification including automation Filter Press Erection Supervision Transportation Equip. erection Contingency 10% Interest during construction for ½ yr Say Rounded off to Crores OPERATING COST (PRODUCTION COST): The estimated production cost per MT of iron ore after beneficiation is expected to be Rs.1000 to Rs. 1300/ per ton. The selling price of the iron ore is largely dependent on the quality of the ore. Since it can be ensured that good quality ore is consistently supplied to the customers, price at least 20% higher than the production cost will be definitely obtained. From the above it is clear that the project is Techno economically viable due to the following reasons: Exploration is carried out and the reserves are mostly in the proved category There is a good demand for the increased ore production The project area is approachable from the black topped passing through the lease area and connected to NH-215. There are railway sidings with adequate spare capacity nearer to the mine lease to transport the additional ore produced. The selling price is at least 20% more than the production cost and hence it is economically viable. * * * * * * * * 64

65 CHAPTER IX ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS) Financial & social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area. The existing mining operations in the area have already brought about positive impact locally by way of employment generation, increase in income generation, creation of infrastructural facility, marked improvement in the life style and living standards of the entire tribal and scheduled caste population of the surrounding area. There will be continued substantial improvement in case of local population in living standards, receipt of per capita income, cultural patterns, living styles, educational standards, etc. after expansion also. The project proponent has already carried out extensive beneficiary works, under their CSR responsibility objectives. These schemes will be further augmented and implemented after expansion and setting up of the beneficiation plant. There will be continual improvements of the local amenities like roads, communication, electricity, water supply, educational & recreational facilities, hospitals/ dispensaries, libraries, availability of variety of goods & services and other basic amenities needed for the local society. As already mentioned earlier, the project will improve the social and physical infrastructural patterns of this interior area in its own way resulting in overall improvement of HDI (Human Development Index). Besides, the Central and State Government will also derive good financial benefits by way of receipt of taxes, duties and cess. In view of above aspects of the project, the project can be said to be beneficial to the local community, the local region, the State and to the entire country on the whole. * * * * * * * * 65

66 Annexure-1 Supplementary Lease deed 66

67 67

68 Annexure-2- Approved Mining Scheme 68

69 69

70 Annexure-3 Forest Clearance Letter 70

71 71

72 Annexure-4- Environmental Clearance 72