PRE-FEASIBILITY REPORT FOR PROPOSED EXPANSION OF KURMITAR IRON ORE MINING PROJECT

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1 THE ODISHA MINING CORPORATION LIMITED PRE-FEASIBILITY REPORT FOR PROPOSED EXPANSION OF KURMITAR IRON ORE MINING PROJECT (Prepared as Part of Application for Terms of Reference for EIA Studies as per Notification No. J-11013/41/2006-IA.II(I) dated 30 th Dec., 2010) MECON LIMITED RANCHI INDIA 11.S EE2192 March, 2015

2 CONTENTS Chapter Nos. Title Page Nos. Executive Summary 1 1 Introduction 4 2 Introduction of the Project / Background Information 5 3 Project Description 8 4 Site Analysis 15 5 Planning Brief 16 6 Proposed Infrastructure 18 7 Resettlement and Rehabilitation Plan 18 8 Project Schedule and Cost Estimate 18 9 Analysis of Proposal (Final Recommendation) 19, 2015 MECON LIMITED, All rights reserved (Report No. 11.S EE 2192) Contents Page i of iii

3 DRAWINGS Drawing No. MEC/Q77B/11/S2/T1 MEC/Q77B/11/S2/T2 MEC/Q77B/11/S2/T3 MEC/Q77B/11/S2/T4 Title Mine lease area superimposed on toposheet Geological Plan Surface Plan Conceptual Plan, 2015 MECON LIMITED, All rights reserved (Report No. 11.S EE 2192) Contents Page ii of iii

4 ABBREVIATIONS AMSL ANFO BHJ BHQ CSR DGMS EIA EMP Fe ha HEMM HSD IMD l hr m 3 ML Mn MoEF Mt t / yr OB OMDC PF R & R RF RINL t ToR TPH UNFC Above Mean Sea Level Ammonium Nitrate Fuel Oil mixture Banded Hematite Jasper Banded Hematite Quartz Corporate Social Responsibility Directorate General of Mines Safety Environmental Impact Assessment Environmental Management Plan Iron hectare Heavy Earth Moving Machinery High Speed Diesel India Meteorological Department litre hour Cubic Metres Mining Lease Manganese Ministry of Environment and Forests, Govt. Of India Million tonnes Tonnes per year Overburden Orissa Mineral Development Company Limited Protected Forest Rehabilitation and Resettlement Reserved Forest Rashtriya Ispat Nigam Limited tonnes Terms of Reference Tonnes per hour United Nations Framework Classification, 2015 MECON LIMITED, All rights reserved (Report No. 11.S EE 2192) Contents Page iii of iii

5 EXECUTIVE SUMMARY Kurmitar iron ore mining lease is owned by Odisha Mining Corporation Limited (OMC) and is located in Barsuan block & Bonai sub-division of Sundargarh district in Odisha. The mine lease is spread over villages: Tilkuda, Uskuda, Sareikala and Kurmitar Reserve Forest. Kurmitar iron ore mine is one of the old operating mines of OMC. The lease deed was executed on for a period of 20 years which expired on Application for further renewal of the lease for a period of 20 years w.e.f was made on for a lease area of ha. Application for 2 nd renewal of the lease for a further period of 20 years was made on stating that the second renewal application submitted by OMC on to be treated as second installment of the first renewal for a period of further 10 years from to Accordingly the 2 nd lease renewal application was for a period of 20 years from to The lease is under deemed renewal status. The Environment Clearance and the Stage-II Forestry Clearance for an area of ha of mine have been accorded by Ministry of Environment, Forests and Climate Change, Govt. of India (MoEFCC) vide letter no. J-11015/1080/2007-IA.II(M) dated & vide letter no /2000-FC(Vol-I) dated respectively. Consent to Operate has also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act, which is valid till The mining plan, for deemed renewal period, for a lease area of ha was approved on , vide letter No.BBS/SG/Fe&Mn/MP-272 dated which was valid till But due to nonavailability of Forest Clearance, the production as proposed in mining plan could not be met. So to comply the violation, a modification to the approved mining plan was prepared incorporating the achievements from to and modified proposals for the rest two years i.e. from to The said modified mining plan was approved by the Controller of Mines, IBM, Nagpur dated The scheme inside the mining plan was valid up to The scheme of mining for the period from to was approved on The modification to scheme of mining for the period from to was approved on 29 th November The validity of the scheme of mining is till Earlier the lease area of Kurmitar Iron Ore lease was ha, out of which ha area has been surrendered by OMC on and Final Mine Closure Plan (FMCP) for surrendered area of ha has been approved by IBM on Thus presently the lease area of Kurmitar Iron Ore Mine is ha. The mine is an open cast mine and comes under Category-A as per EIA notification 2006, Amendment Nov & April of the MoEFCC. It has three existing quarries (viz. Quarries 1, 2 & 6). The deposit is being worked by opencast mining with formation of benches by drilling and blasting. The present proposal envisages capacity expansion of existing opencast cast mine from present rated capacity of 2.4 Mt/yr to 6.0 Mt/yr with decrease in ML area from ha to ha. The existing quarries will be expanded and the number of benches shall increase. Drilling and blasting is being used for hard laminated & massive ore, whereas, soft ore is directly excavated by m 3 capacity hydraulic excavators. The proposed height of bench is 6 m with 15 m minimum working width. Width of bench has been planned to be reduced to 6 m at the ultimate stage near lease boundary. Bank slope has been considered as 70 o. Envisaged ultimate pit slope of the Kurmitar iron ore mines is 32 o. Haul road has been planned at a gradient of 1 in 16. Inter bench ramp width has been considered as 8 m. The ROM will be transported to crushing and screening plants for production of calibrated lump ore (+10 to -40mm) and fines (-10mm). The waste & subgrade material generated will be transported to respective Waste Dump and Subgrade Dump. The lumps and fines generated from the processing plants will be loaded by loader of m 3 capacity & transported through 20 t tippers/ 35 t dumpers to the respective stockyards., 2015 MECON LIMITED, All rights reserved Page 1 of 19

6 A 800 tph capacity stationary crushing and screening plant has been proposed. In addition to this, one existing 225 tph crushing and screening plant will also be maintained to meet the incidental break down and achieve the target. Moreover, a new mechanical evacuation system for fines has been planned to be commissioned. It has been decided to lay a two-line conveyor belt system each having 1000 tph capacity. The said conveying system shall be housed inside fully covered (by G.I sheet) structural steel galleries supported by steel trestles at suitable intervals. These trestles shall be supported by reinforced concrete (RCC) pedestals and foundation. The expected life of the mine is 25 years and a total of Mm 3 of wastes will be generated from entire Kurmitar iron ore mine upto conceptual stage. Present waste dump will be used for dumping the waste for initial 5 years. From year 2020 onwards waste generated from Kurmitar iron ore lease will be dumped partly in existing dump and balance waste will be backfilled in the proposed backfill areas viz. backfill 1, backfill 2, backfill 3 & backfill 4. The mine s rated capacity shall be 6.0 Mt/yr of iron ore at an anticipated stripping ratio of 6.75 t/m 3 with external dumping for the year of production in the existing dump area. The ore from Kurmitar mine will increase the supply of iron to India s domestic steel manufacturers. The project will also generate much needed employment. Majority of the people employed at the mine will be local residents. Economy of the area will get a boost and there will be overall growth of the region in terms of education, health, training and transport etc. The local people s standard of living is also expected to improve., 2015 MECON LIMITED, All rights reserved Page 2 of 19

7 The salient features of the project include: Proposal To enhance the rated capacity of Kurmitar Iron Ore Mine from 2.4 Mt/yr. to 6.0 Mt/yr., having total ML area of ha. Location of Mine Villages: Sareikala, Tilkuda, Uskuda & Khandadhar Reserve Forest Taluka Barsuan, Dist Sundergarh, Odisha Latitude N N Longitude E 'E Land Use Reserve Forest ha (8.13%) and Protected Reserve Forest (91.87% ) Total Mineable Reserves Million tonnes as on Life of Mine 25 years (@ 6.0 mtpa) Method of Mining Fully Mechanized open cast mining by conventional shovel dumper combination Quarries 3 existing working quarries in iron ore section. Quarry benches 2-16 m high & 5-53 m wide. Stripping Ratio (t:m 3 ) 6.75 Waste disposal During , waste generated will be dumped into existing waste dumps onwards, OB will be partly dumped in external dumps and partly backfilled. Sub-grade ores will be stacked externally for future use. Mineral Processing Crushing and screening by two 800 tph crushers has been proposed for iron ore. Mineral Transport CLO and fines is transported by dumper to the stockyard which is further transported to respective buyers. Two- line conveyor belt system (each 1000 tph line) has been planned to lay to transport the fines(-10mm) to the prospective buyers site Number of working days 300 days, 3 shift per day Fuel Consumption Existing 3193 kl/yr; Proposed: 5267 kl/yr Explosive Consumption Existing: kg/yr Proposed: kg/yr Water Demand Peak water requirement: Domestic = 25m 3 /day and industrial use = 175m 3 /day. Source of water Borewell: 25m 3 /day, Surface stream: 141m 3 /day and Recycled water: 34 m 3 /day. Man Power Existing: 110 Proposed: 412 (additional) Electricity Demand Proposed: 5 MW for illumination, operation of electric shovels, operation of weighbridge, surveillance system & water pumps. Infrastructure All necessary infrastructure already exists. Also, after 2017 another line of 800 tph stationary crushing and screening unit has been envisaged to deal with increased production. A new mechanical evacuation system for fines i.e. two-line conveyor belt system (1000 tph each line) has been planned to be commissioned by the end of year Proposed Investment Rs lakhs Production Cost ~ Rs per tonne at rated capacity (iron ore) CSR Budget Total Rs. 5 lakhs for year for Financial Assistance to the District Red Cross Society, Sundargarh, 2015 MECON LIMITED, All rights reserved Page 3 of 19

8 1.0 INTRODUCTION This is Pre-Feasibility Report has been prepared as Part of the Application for Terms of Reference Environmental Impact Assessment and Environmental Management Plan (EIA/EMP) studies for the proposed capacity expansion of Kurmitar Iron Ore Mine of The Odisha Mining Corporation Limited (OMC) from 2.4 Mt/yr. to 6.0 Mt/yr. of the existing opencast mine having present lease area of ha. (the original mine lease area was ha out of which ha area has been surrendered by OMC on ). The lease area is located in Barsuan block & Bonai sub-division of Sundargarh district of Odisha. This report has been prepared as specified in Ministry of Environment, Forest and Climate Change (MoEFCC) Guideline No. J 11013/41/2006 IA.II(I) dated 30 th Dec, MoEFCC had accorded Environment Clearance to the mine for production of 2.4 Mt/yr of iron ore vide letter no. J-11015/1080/2007-IA.II(M) dated The stage-ii Forestry Clearance of the mine has been accorded for an area of ha by MoEFCC (FC Division) vide letter no /2000-FC(Vol-I) dated But, as per the recent guidelines of Hon ble Supreme Court, the mine has initiated actions for diversion of the entire forest land within the lease. Consent to operate has also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act, which is valid upto OMC has decided to seek environmental clearance for increasing the production from Kurmitar Mine and has engaged the services of MECON Limited a Public Sector Undertaking under the Ministry of Steel, Govt. of India for necessary technical assistance. MECON s scope of services also includes preparation of a Pre-Feasibility Report as the first step for seeking Environmental Clearance for the Kurmitar Iron Ore Mine. The report including this introduction chapter includes: Introduction of the Project / Background Information Identification of the Project and the Project Proponent Brief Information of the Project Need for the Project and its Importance to the Country or Region Demand and Supply Import vs. Indigenous Production Export Possibilities Domestic / Export Market Employment Generation Project Description Type of Project including Interlinked and Interdependent Project Location Details of Alternate Site Size and Magnitude of Operation Mine Description Raw Materials Resource Optimization / Recycling and Resource Site Services Wastes Site Analysis Connectivity Land Form, Land Use, Ownership, 2015 MECON LIMITED, All rights reserved Page 4 of 19

9 Land use Existing infrastructure Soil classification Climate Social infrastructure available Planning Brief Planning Concept Land Use Planning Assessment of Infrastructure Demand Amenities / Facilities Proposed infrastructure Resettlement and Rehabilitation Plan Project Schedule and Cost Estimate Analysis of Proposal (Final Recommendation) ACKNOWLEDGEMENT MECON wishes to place on record its deep appreciation for the trust reposed in MECON by OMC and for the active interest and help extended by OMC officials. 2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION : 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT: Odisha Mining Corporation Limited (OMC) was jointly established by the Union and State Governments in 1956 as the first state Public Sector Unit (PSU) in mining sector in the country for exploration, exploitation and marketing of minerals. In the year 1962, OMC became wholly owned by the State Government. Odisha Mining Corporation Ltd. has been classified as a Gold Category State PSU. OMC holds / operates 35 mining leases consisting of 11 iron ore leases, 3 manganese ore leases, 5 iron & manganese ore leases, 11 chromite leases, 1 limestone lease and 4 gemstone (semi-precious ruby / corundum) leases only in Odisha state. At present, OMC is producing about 10 % of total iron ore production of the State and about 30 % of the total chrome ore production of the State. Kurmitar Iron Ore Mine is spread over ha, in Barsuan block & Bonai sub-division of Sundergarh District Odisha. The lease area comprises of ha of Reserve Forest and ha of Protected Reserve Forest. The mine is operational under deemed renewal status. The Environment Clearance of the mine has been accorded by MoEFCC vide letter no. J /1080/2007-IA.II(M) dated for a production capacity of 2.40 Mt/yr of iron ore. Earlier the lease area of Kurmitar Iron Ore lease was ha, out of which ha area has been surrendered by OMC vide letter no 9762/SM dated and Final Mine Closure Plan (FMCP) for surrendered area of ha has been approved by IBM letter vide no. T /MCP/CGBM/08, dated The proposed rate of production is 6.0 Mt/yr of iron ore. The estimated project cost is Rs Lakhs. The expected life of the mine is 25 years., 2015 MECON LIMITED, All rights reserved Page 5 of 19

10 2.2 BRIEF INFORMATION OF THE PROJECT Kurmitar Mine is an open cast iron ore mine located in the Barsuan block of Bonai sub-division of Sundargarh district of Odisha. The lease area is spread over ha, which comprises of Reserve forest and Protected Reserve forest. The lease deed has been executed on for a period of 20 years, which expired on Application for further renewal of the lease for a period of 20 years w.e.f was made on for a lease area of ha. Application for 2 nd renewal of the lease for a further period of 20 years was made on stating that the second renewal application submitted by OMC on to be treated as second installment of the first renewal for a period of further 10 years from to Accordingly the 2 nd lease renewal application was for a period of 20 years from to The lease is under deemed renewal status. The Environment Clearance of the mine has been accorded by MoEFCC in 2008 for production of 2.40 Mt/yr of iron ore. The Stage-II Forestry Clearance of the mine has been accorded for an area of ha by MoEFCC (FC Division) vide letter no /2000-FC(Vol-I) dated But, as per the recent guidelines of Hon ble Supreme Court, the mine has initiated actions for diversion of the entire forest land within the lease. Consent to operate have also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act, which is valid upto The mining plan for deemed renewal period for a lease area of ha was approved vide approval letter No.BBS/SG/Fe&Mn/MP-272 dated , which was valid up to Proposals were made in the mining plan for development of the quarries to fulfill the production target expecting forest clearance in the near future. But due to non-availability of Forest Clearance the production has been confined only to three quarries. To cater to the demand of steel industries and due to high market demand of iron ore the production in these three quarries have gone beyond the proposed target of approved mining plan. (However the total production from the mine had not exceeded 2.4 Mt/yr at any stage). So, a modification to the approved mining plan was prepared incorporating the achievements from to and modified proposals for the rest two years i.e. from to The said modified mining plan was approved by the Controller of Mines, IBM, Nagpur vide letter No. 314(30/2008-MCCM (CZ)/MP-14/1050 dated The scheme inside the mining plan was valid up to The scheme of mining for the period from to was approved vide approval letter No.314 (3/2009-MCCM (CZ)/MS-42 dated The modification to scheme of mining for the period from to was approved vide approval letter No.314 (3/2010-MCCM(CZ)/MS- 30/16 dated 29th November The validity of the scheme of mining is up to Presently the lease area of Kurmitar ore lease is ha. Modification to the approved mining plan due to change in the lease area from ha to present lease area of 651 ha has been approved by IBM, Bhubaneswar vide letter no. MMP/FM/02-ORI/BHU/ dated It is proposed to enhance the rated capacity of mine from 2.4 Mt/yr to 6.0 Mt/yr of iron ore with reduction in lease area (to ha from ha). The expanded mine will produce calibrated lump ore (+10 to -40mm) and fines (-10mm) for its dispatch to various sponge iron/steel plants. The ore s Fe content is expected to be 63-64%. Peak water requirement at Kurmitar Iron Ore Mine for domestic and industrial use are 25 m 3 /day and 175 m 3 /day, respectively. Average water requirement at Kurmitar Iron Ore Mine for domestic and industrial use are 20m 3 /day and 114m 3 /day respectively. The water is drawn from surface stream (141m 3 /day), borewell (25m 3 /day) and by recycling effluents (32m 3 /day)., 2015 MECON LIMITED, All rights reserved Page 6 of 19

11 A Safety Zone has been maintained all along the lease boundary as the Green Belt. 2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY OR REGION : Iron ore is the key input for the iron and steel industry. Odisha is one of the major centres for manufacture of iron and steel. Several industries have come up in the state for the manufacture of iron and steel due to the easy availability of iron ore in the state. At the present rate, OMC is producing about 10 % of total iron ore production of the State. Proposed capacity expansion of Kurmitar Mine will have the following benefits: Increase the supply of iron for India s domestic steel producers, especially those in Odisha. In addition it will add to revenue generation of the District / State. The mine will generate additional employment, both direct and indirect which will lead to economic growth. OMC shall provide, school buildings, bus shelters, medical facilities and other amenities to local villages under the company s community development programme. The increased Iron ore production will boost the economy. Thereby providing growth and development to the country. 2.4 DEMAND AND SUPPLY GAP : India s domestic steel production capacity is ~83 Mt/yr of which 41 Mt/yr is produced by integrated steel plants and ~18 Mt/yr is produced through the DRI-EAF route. Since it takes ~1.6 t of iron ore to produce 1 t of steel, India s demand for iron ore is ~94.4 Mt/yr. India is one of the major producers and exporters of high grade iron ore. In , India s iron ore production was Mt. The major iron ore producing states are Odisha, Jharkhand, Chhattisgarh, Karnataka and Goa. India is world s 3rd largest iron ore exporter after Australia and Brazil. India s iron ore exports were Mt (~9.95%) in All major steel producers in India are implementing their growth plans to enhance hot metal production capacity. The iron ore requirement is expected to increase to about 206 Mt/yr by and 500 Mt/yr by In order to meet enhanced requirement of iron ore, all iron ore producers are taking necessary action to expand their existing mines. Iron ore production capacity will be enhanced to meet the expanded requirement in the next 3-4 years time. 2.5 IMPORT VS INDIGENOUS PRODUCTION : India produces a surplus of iron ore. In , India s iron ore production was Mt of which Mt (i.e. about 9.95%) was exported. 2.6 EXPORT POSSIBILITIES : Iron ore produced from this project will be exclusively consumed in the domestic steel industry. There is no proposal for export of iron ore from this project. 2.7 DOMESTIC / EXPORT MARKET: The iron ore are used in the iron & steel industry. They are basic raw materials required for manufacturing of iron and steel. India is one of the major producers of iron ore, most of which is consumed domestically. A minor proportion (~13.5% in ) is exported., 2015 MECON LIMITED, All rights reserved Page 7 of 19

12 2.8 EMPLOYMENT GENERATION: Presently Kurmitar mine employ 110 persons. The expanded mine shall employ a total of 412 persons comprising of 27 executives and 385 supervisors, office staff and workers. Most of the unskilled and semiskilled workers will be local persons. The officers, supervisors and rest of the workers will be housed in OMC s townships, located outside the lease in the Khandadhar village. 3.0 PROJECT DESCRIPTION It has been planned to enhance the production from 2.4 Mt/yr to 6.0 Mt/yr of the existing iron ore mining project with reduction in mine lease area. The project also envisages setting up another 800 t/hr stationary crushing and screening plant commensurate with the increased ROM production and installation of new mechanical evacuation system for fines. It has been decided to install a two- line conveyor belt system of 1000tph capacity (each line). The length of the conveyor belt will be approximately 17 Km. 3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTER-DEPENDENT PROJECT The proposed project falls under Category A, as per EIA notification 2006, Amendment Nov & April-2011 of the Ministry of Environment, Forest and Climate Change, New Delhi. 3.2 LOCATION: Kurmitar Mining Lease area is located in villages Tilkuda, Uskuda, Sareikala & Kurmitar Reserve forest in Barsuan block & Bonai sub-division of Sundargarh district of Odisha. The mining lease area falls under Toposheet No. 73 G/1 & G/2 between latitude N & longitude 'E. The location of project is shown in Drg. No. MEC/Q77B/11/S2/T1 3.3 DETAILS OF ALTERNATE SITE: Since the proposed project envisages capacity expansion of an existing mine, possibility of alternate site is out of question. 3.4 SIZE AND MAGNITUDE OF OPERATION: The mine is under operation with the rated capacity of 2.4 Mt/yr. The lease area is ha. It is proposed to increase the ROM production to 6.0 Mt/yr. The rated capacity will be attained in the --th year of operation. As mentioned above additional crushing and screening facilities and material handling facilities will be installed commensurate with the increased ROM production. 3.5 MINE DESCRIPTION Geology: Regional Geology: OMC Ltd. s Kurmitar Iron ore deposit forms a part of the huge iron ore deposits of Jharkhand Odisha region. Eastern India is part of the volcano-sedimentary basins containing iron and to some extent manganese deposits of Precambrian age. Most of these banded iron-formation horizons belong to the oxide facies banded iron-formations but silicate facies banded iron-formations are also locally developed., 2015 MECON LIMITED, All rights reserved Page 8 of 19

13 The Precambrian iron ore of Singhbhum North Odisha region of eastern India occurs as part of the horse-shoe shaped broad synclinorium known as Iron Ore Group (IOG) of rocks that host most important iron ore deposits of India. The horse-shoe shaped iron ore deposits form a northerly plunging synclinorium. The iron ore deposits of economic importance occur in close association with BIF in Kumritar mining areas. The chemical and mineralogical variations between banded iron formations and high-grade massive including blue dust varieties from this region and the implications for their origin from BIF to iron ore still remain unresolved. Controversies about the origin of banded hematite and high-grade ores appear largely due to the mono-mineralic composition of the ores. The succession of rocks in the region is as follows. Upper Shale Banded Iron Formation (BIF) Lower Shale Volcanics Lithology The rock types encountered in the leasehold area are as follows:- Soil/ (Shaly)Laterite/ Ferrugenous Shale Ferrugenous Shale / LIO/ BHJ/BHQ/ Iron Ore Floats HLO/ HMO in undigested BHJ/BHQ SLO/ Blue Dust in undigested BHJ/BHQ BHJ/BHQ Tuffaceous Shale/ BHS/ Variegated Shale Basaltic Volcanics Soil & Shaly laterite : A part of the lease on western side close to the boundary & Northern part of the lease is covered by soil whereas, the hill ridges extending from the central part of the ML to eastern and southern parts are capped with shaly laterite. It forms the upper horizon of the succession. Laterite in this zone mostly bauxitized with enriched alumina forms the underlying shale and termed as shaly laterite. Top soil and laterite/ shaly laterite seem to be derived from underlying ferruginous shale and iron ore bearing rocks. Ferruginous shale : The upper shale in this zone is enriched with iron content. It is cherry brown in colour. Ferruginous shale may be considered as an indication of subsurface mineralization. It is mostly found in the vicinity of lease pillar No-48, near the southern boundary and in the central of the ML in the neighbourhood of Tanki Pit. Iron ore bearing rocks : Iron ore is associated with the following litho units and covers about 65-70% area. The rocks bearing iron ore are of various types are as follows: Iron ore floats: Iron ore float zone is found in the foot of the mineralized hillock of Quarry-2. The surface outcrops of such litho unit is very meager. Lateritic Iron Ore: Lateritic iron ore in the ML is the lateritised product of hard/ soft laminated iron ore. Thus, the same structures as found in the parent rocks could also be seen in this rock types. It is mostly in the NW quadrant of the ML area having a moderate dip towards north to NW direction. The thickness of LIO varies from 1m to m with an average thickness of 8.40 m. Soft Laminated Ore (SLO): It is found in most of the quarries. It is overlain by ferruginous shale, laterite/soil and iron ore float. Considerable thickness of SLO has been encountered in the boreholes drilled in the area. The thickness of such iron ore varies from 2 m to m., 2015 MECON LIMITED, All rights reserved Page 9 of 19

14 SLO is frequently associated with blue dust. SLO is of platy & biscuity in nature and can be classified in to mm size range invariably. Hard Massive Ore (HMO)/Hard Laminated Ore (HLO): Hard Massive Ore (HMO) and Hard Laminated ore (HLO) is hardly exposed in the ML area except in Qry-2 and are very meager when compared to the total ML area and to other types of ore. The exposure of this kind of ore is gradually diminishing day by day as the mining activity of such ore continues. HMO in the ML area is highly jointed and has moderate dip towards north-west direction. Two smaller insitu HLO patches are found within the Laterised HLO exposures in the NW quadrant of the ML. the HLO blocks have moderate dip towards the directions of north. Thickness of HLO/HMO varies from 3.80 m to BHJ/ BHQ: Though there is a continuous basement of BHJ/BHQ in BIF as ascertained from borehole inputs, their occurrence on the surface is not continuous and localized in several undigested smaller patches. A major portion of the mineralized block mostly in the western half (within the SLO exposures in Tanki Pit and Qry-2) is exposed with BHJ. Here, BHJ is highly jointed and traversed by secondary silica vein. Exposed BHJ patches show NW to Northerly dipping to a moderate magnitude. Banded Shale: This kind of shale is mapped in the southern faces of the Qry-2 and is mostly light green or brown in colour and hard in nature. Otherwise such litho unit is explored under the iron ore strata during borehole drilling and is a clear indication to devoid of mineralization in further depths. The light brown or light pinkish banded shale are sometimes found tuffaceous and named accordingly. The underlying basaltic volcanic might have generated metamorphic aureole on the overlying banded shale in its thermal zone to make it happen. It is softer and felt soapy in nature. Variegated shale: Variegated shale is a form the lower shale of variety in colour. It is the major exposure of the ML. Talkish Banded shale: This is white coloured lower shale with distinct lamina, mostly explored after BIF in depth. This shows similar character as of BHS. But, it is softer and felt soapy in comparison. Basaltic Volcanics: It is only exposed in the nala cuttings as mapped in the Sareikela and in the Uskuda villages. It is intersected after the banded shale in some boreholes. It is fine grained, greenish, siliceous and fracture rock without amygdoils. Fracture planes are conchoidal to subconchoidal. Though, the physical characteristics of this litho unit resemble to that of BHS (Banded Hard Shale) but its distinguished fracture and hardness makes it identified undoubtedly. Some of the core samples & exposures showed laths of feldspars indicating porphyroblastic texture. Local Geology Kumritar area belongs to Singhbhum Odisha Iron Ore Craton (SOIOC) contains vast deposits of iron ore known as iron ore group (IOG) (Saha 1994). The Precambrian IOG largely contains BIF in addition to the other volcano-sedimentary rocks (~ Ga, Sarkar et al 1969), forming a significant portion of the Singhbhum North Odisha Craton of eastern Indian shield (Saha et al 1984). The IOG in addition to BIF also contains other rock units like two generations of shale, tuffs that underlie or are inter-layered with BIF. High-grade hematite ore is concentrated in tabular stratabound bodies hosted by the BIF. Several economically significant ore bodies are located in the Kumritar deposits. Since multiple generations of shale occur rhythmically as markers within the IOG, the possibility of iron ore below the BHJ cannot be ruled out. The area forms a major part of the synclinal closure. The various structural imprints observed and recorded are in the BHJ and laminated ore. Very tight folding is very common in BHJ always, 2015 MECON LIMITED, All rights reserved Page 10 of 19

15 plunging N 100 E at angle varying from 100 to 700. The Nala sections clearly indicate the reversal of plunge and at places tilting towards east. M type of folds at the trough portion is clearly marked. The above facts clearly indicate an interference pattern of multiphase deformational episode. The primary structures such as bedding, pinch and swell are clearly seen in BHJ. The pent structures are very common in the area. Joints of three sets facilitated the BHJ to break in to blocks. The fractures are numerous and filled by secondary silica. The structural features are also very clear in SLO. Mostly tight folding plunging towards North is clear in Qry-2. The contact of HMO/HLO with underlying shale indicates a synformal structure. The formation in the southern part of the Quarry-2 dips at towards North, eastern part plunges towards NW at 10 0 and Northern part dipping at towards south as the three sides of the Quarry-2 is exposed. The hard massive ore is highly jointed and breaks into blocks of rhombohedra shape. Three sets of joints are clearly observed. The fractures are devoid of any fillings. SLO exposed in the Tanki Pit and other places exhibit east-west strike with moderate dip of 45 0 to 50 0 towards north. A major fault runs in east west direction. The occurrence of brecciated conga along the fault is a clear evidence of such a fault Mineral Reserves: The mineable reserves as on are as follows: Mineable Reserves Category Reserve (Mt) Fe% Proved (111) % Probable (121) % Probable (122) % Total % Reserve & Grade as per United Nations Framework Classification, Geological Reserve (in Mt as on ) is Coded as follows: Sl. No (A) Reserve Category (UNFC Classification) Mineral reserve Reserves (Mt) Grade (Fe%) 1 Proved Mineral Reserves (111) % 2 Probable Mineral Reserves (121) % 3 Probable Mineral Reserves (122) % (B) Remaining Resource 4 Feasibility Mineral Resource (211) % 5 Pre-Feasibility Mineral Resource (221) % 6 Pre-Feasibility Mineral Resource (222) % 7 Remaining measured resource (331) NIL NA 8 Indicated Resource (332) NIL NA 9 Inferred Resource (333) NIL NA 10 Reconnaissance Resource (334) % Surface Geological Plan of the lease are enclosed as Drg. Nos. MEC/Q77B/11/S2/T2., 2015 MECON LIMITED, All rights reserved Page 11 of 19

16 3.5.3 Mining: Kurmitar Iron Ore Mine is an open cast mine, comes under Category-A (Fully Mechanized category) as per the IBM guidelines, where mining is carried out by drilling, blasting followed excavation of loosened material by hydraulic excavators and loading them onto tipper trucks and dumpers. The machines to be deployed are Wagon Drills (115mm dia.), hydraulic excavators (0.9 m 3-4 m 3 bucket capacity), tippers / capacity dumpers etc. for the various mining unit operations such as drilling & blasting, excavation & loading, transportation etc. Kurmitar Iron Ore Mine has been operating since the mid 1960s. Presently 3 quarries i.e. Quarry 1, 2 & 6 are under production. Quarries 2 and 6 will be extended in the south western, northern side & western sides so that all these quarries will merge together eventually. Existing benches at Quarry 1 will be further pushed in the north western side. The proposed height of bench is 6 m with 15 m minimum working width. Width of bench has been planned to be reduced to 6 m at the ultimate stage near lease boundary. Bank slope has been considered as 70 o. Envisaged ultimate pit slope of the Kurmitar Iron Ore Mines is 32 o. Haul road has been planned at a gradient of 1 in 16. Inter bench ramp width has been considered as 8 m. The following equipment will be deployed in the mine: Sl. No. Description Nos. 1. Hydraulic Excavator, 3.2 m Hydraulic Excavator, m Front-end Loader, m Front-end Loader, m Dumper, 35t Dumper, 20t Drill, 115mm 6 8. Dozer,360 HP 2 9. Dozer,190 HP Grader,200 HP Explosive van Service van Pick up van Water tanker Diesel tanker Portable lights for face lighting Tower lights Tractor Crushing & Screening plant(800 tph) Crushing & Screening plant(225 tph) Screening plant mobile (200 tph) 4 The existing surface plan of the lease is enclosed as Drg. No. MEC/Q77B/11/S2/T3. The surface plan at the end of work is shown as Drg. No. MEC/Q77B/11/S2/T4. The mine will work 300 days per year with three daily shifts. The expected life of the mine is 25 years. Mine development & production planning has been carried out to achieve the full production capacity of 6.0 Mt in the FY in a phased manner with 2.4 Mt, 3.97 Mt, 4.47 Mt production in the year , & , respectively to systematically develop the mine with an, 2015 MECON LIMITED, All rights reserved Page 12 of 19

17 anticipated stripping ratio of 6.75 t/m 3. The wastes generated from the mine will be partly dumped in external dumps & partly backfilled in the voids created during mining. Material containing 45-55% Fe has been considered as sub-grade. A total of Mt of sub-grade will be generated up to conceptual stage. Silica & alumina content in the sub-grade generated during mining will be too high making it unsuitable for steel making. However, around 5% of subgrade generated during the scheme period can be blended with high grade ore which will produce a blend containing 62% Fe, 2.91% SiO 2 & 3.71% Al 2O 3. It is proposed to beneficiate and utilize the subgrade ore depending upon the results of testing from a reputed testing agency. However, it has been planned to stack sub-grade material in separate dumps. The height & width of individual terraces has been considered as 10 m with a bank slope angle of A part of the mined out pit will be backfilled in the ultimate stage with the mine wastes where nonpersistence of ore has been proved. The quarry area will be fenced to prevent any inadvertent movement of persons into the area. Remaining mined-out benches will be afforested. When mineral reserves are exhausted, the mine shall be closed down in accordance with the approved mine closure plan. All waste dumps will be stabilized and biologically reclaimed. Some of the other infrastructure will be dismantled. Others, especially buildings will be handed over to local Panchayats or the State Government Mineral Processing: Two crushing and screening plant each of 800 t/hr will be installed in phases. The process flow sheet of 2-stage crushing and screening of Iron ore has been out lined as follows: D1 Rom + Over Size D2 Rom G1 Grizzly feeder +100mm C1 Jow Crusher G2 +100mm to -800mm Grizzly feeder S2 Screen S mm Screen -100mm SH1-100mm Surge Hopper +40mm to -100mm S4-100m Screen S5 Screen mm C2 Secondary Crusher S3 Screen +40 LB mm CLO Fines -10mm Fines -10mm LB mm CLO Fines -10mm 10-40mm CLO Calibrated lump ore (+10 to -40mm) and fines (-10mm) generated after crushing and will be loaded by front end loaders of m 3 capacity and transported by 20 t t/ 35t dumpers to the respective stockyard. In addition to this, one existing 225 tph crushing and screening plant will also be maintained to meet the incidental break down and achieve the target. ROM Iron Ore raised from the mine will be marketed to the consumers through two line belt conveyor of 17 km length after crushing and screening Mineral Transport The integrated mining project shall have mechanical evacuation system for fines. A fully mechanized crushing & screening facility coupled with downhill conveying by belt conveyor will be installed. It has been finalized to lay a two- line conveyor belt system of 1000 tph capacity each. The length of the conveyor belt will be approximately 17 Km. The termination point of the conveyor belt at Mahulidiha village site is about 2.0 Km from road (SH-10A) and 1.0 Km from the proposed Talcher- Bimlagarh railway line. Iron ore of Kurmitar Iron Ore mines shall be transported downhill to the Termination Point by the conveyor belt from where it will be sold to different buyers who will transport the sold iron ore to their destinations either by road or rail. In addition to the above, one ore, 2015 MECON LIMITED, All rights reserved Page 13 of 19

18 stockyard near Barsuan will be developed for intermittent storage & supply of Iron ore to the consuming industries. OMC is also in the verge of completing the work of making the ghat road to double lane. To mitigate the ore evacuation constraints through ghat road the development of railway siding ore stock yards has also been planned. 3.6 RAW MATERIALS The only raw materials consumed in the project are fuel (HSD) and explosives. The fuel consumption in the mine operating at full capacity is estimated to be 5267 Kl/yr. The explosives consumption is expected to be t/yr (powder factor of 5.06t of iron ore per kg of explosives). Explosive will be either stored in the existing magazine or supply of explosive will be outsourced to external agency. 3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE Some of the effluents from the mine s canteens and rest-rooms will be utilised for irrigation of green belt. A total of 32 m 3 /day water will be recycled and utilized for green-belt development, drilling & dust suppression using existing facilities before being distributed. OMC has developed centralized work-shop, stores, medical unit at its Kurmitar lease for its mines in the region also. A common housing colony spread over ha has been developed having all the amenities. These infrastructures will serve the requirements of Kurmitar also. 3.8 SITE SERVICES Water Requirement: The peak water demand for the mine is expected to be as follows: Purpose Peak demand (m 3 /day) Drilling & Dust suppression 30 (source:18 & recycled:12) Equipment/Vehicle Washing 15 Pithead bath 30 Green Belt Development 100 (source:78 & recycled: 22) Drinking & Domestic 25 TOTAL 200 The water will be drawn from Borewell 25m 3 /day and surface stream 141m 3 /day and recycled water 32 m 3 /day treated using existing facilities before being distributed Power Requirement An estimated 5 MW for illumination, operation of operation of weighbridge, surveillance system & water pumps. This power shall be drawn from the grid Amenities The mine has a site office. All the statutory facilities such as crèche, canteen, first-aid centre, vocational training centre etc have been provided. To take care of the drinking water needs at different working areas, water tankers have been envisaged for the mine. The rest shed-cum-lunch rooms have been provided near quarry site as per Mines Rules-56. First aid facilities and toilet are attached to the rest shed. Portable blasting sheds of one end open type have been provided at the mine site for giving protection to the blasters during blasting. Township and guest house is located outside the lease in the Khandadhar village where mine s personnel are accommodated., 2015 MECON LIMITED, All rights reserved Page 14 of 19

19 WASTES The mine s rated capacity shall be 6.0 Mt/yr of iron at an anticipated stripping ratio of 6.75 t/m 3. A total of Mm 3 of wastes will be generated from entire Kurmitar iron ore lease upto conceptual stage. Year wise waste generation up to Conceptual period is given in the table as follows: Year Waste Generation, Mcu.m Total conceptual Total Out of which, 0.53 Mm 3 waste generated during year will be dumped in existing waste dump WD. Balance 2.49 Mm 3 of waste generated from year to has been proposed to be dumped in waste dump WD1 towards the eastern side of existing waste dump WD. From 2020 onwards Mm 3 waste will be generated, out of which 4.0 Mm 3 & 1.72 Mm 3 waste will be dumped in waste dump WD1a & WD1b proposed in the eastern side of the existing waste dump WD. Balance Mm 3, 3.52 Mm 3, 2.87 Mm 3 and 6.54 Mm 3 waste generated from Kurmitar iron ore lease will be backfilled in the backfill 1, backfill 2, backfill 3 & backfill 4, respectively. 4.0 SITE ANALYSIS 4.1 CONNECTIVITY Kurmitar Iron Ore Lease is well connected by a network of mining roads. Koira-Lahunipara road connecting NH no 215 is distance around 5 Km from the lease area. The camp area & lease of the Kurmitar is connected by PWD metalled all weather road with Barsuan town which is located at distances of 13 km and 18 km, respectively. The nearest rail head is also Barsuan in the Rourkela Barsuan sector of south-eastern railway. 4.2 LAND FORM, LAND USE, OWNERSHIP The mine lease area comprises of Reserve Forest and Protected Reserve Forest in Sundergarh District, Odisha The land ownership is as follows: Reserve Forest : ha Protected Reserve Forest : ha 4.3 TOPOGRAPHY The lease area is in the center of a ridge like escarpment, which runs in the East - West direction. The top of the ridge at the lease has a peak at 1065 mrl. The bottom of the escarpment is at the lease is at about 550 mrl. The area has dendritic pattern of drainage because of its hilly topography. The ridge of the Kurmitar Pahar roughly divides the mine lease area into northern and southern half. Since the Kurmitar Pahar forms the highest elevation in the region, a number of seasonal drainage channels originate and flow down from the lease area. Seasonal drainage channels emerging from western side flow down to join the Khandadhar Nala which drains into Amsari Nala flowing towards west. Drainage channels from eastern side flow down to form Paikuncha Nala which drains into Malda Nala flowing towards east. Another prominent drainage channel from southwest side joins Burhghur Nala which drains into Korapani Nadi flowing towards west., 2015 MECON LIMITED, All rights reserved Page 15 of 19

20 4.4 LAND USE The lease area is located in partly in Reserve Forest Land (8.13%) and mostly in Protected Reserve Forest (91.87%). The existing land use pattern in the lease is as follows: Sl. No. Type of land use Existing land use (Ha) 1 Mining Area OB/Waste dumping Subgrade Dumping Mineral Storage Infrastructure (Office, Rest Shelter, Fines evacuation, Feeding area & Long Distance Conveyor) 6 Statutory Barrier (7.5 m safety zone) Roads Total * * excluding Safety Barrier area 4.5 EXISTING INFRASTRUCTURE The infrastructure and ancilliary facilities for Kurmitar are spread over an area of about ha outside Kurmitar ML area in Khandadhar village. This common area also hosts the infrastructure of adjaoining Rantha mine of OMC. The services includes mine office, township, guest house, All the statutory facilities such as crèche, canteen, first-aid centre, vocational training centre etc have been provided. To take care of the drinking water needs at different working areas, water tankers have been envisaged for the mine. The rest shed-cum-lunch rooms have been provided near quarry site. The servicing & repairing shop facilities have been provided at Kurmitar lease. 4.6 SOIL CLASSIFICATION A part of the lease on western side close to the boundary & Northern part of the lease is covered by soil whereas, the hill ridges extending from the central part of the ML to eastern and southern parts are capped with shaly laterite. The soil is lateritic, typical of the area. The thickness of the top soil varies from nil to maximum of 60 cm. The average thickness is 20 cm. 4.7 CLIMATE The study area lies in tropical region where climate is characterised by very hot summers and cool winters. Summer is typically from March to June when monthly temperature ranges from a maximum of 42 C during daytime to a minimum of 15 C at night. Winter is from November to February when the maximum temperature during day goes up to 37 C and minimum temperature at night becomes as low as 8 C. Average annual rainfall in the area is of the order of 1231 mm. The Southwest monsoon lasts from mid June to mid September and the area gets more than 80% of the annual rainfall during this period. Relative humidity varies from 20%-89%. Predominant wind direction is due SW. 4.8 SOCIAL INFRASTRUCTURE AVAILABLE OMC s township located outside the lease in the Khandadhar village has all necessary amenities. 5.0 PLANNING BRIEF 5.1 PLANNING CONCEPT The proposed project envisages expanding an existing open cast mine having lease area of ha. Presently the lease is under deemed renewal status. The environment clearance and the Stage-, 2015 MECON LIMITED, All rights reserved Page 16 of 19

21 II Forestry Clearance for an area of ha of mine have been accorded by MoEFCC (FC Division) on dated Earlier the lease area of Kurmitar Iron Ore lease was ha, out of which ha area has been surrendered by OMC dated and Final Mine Closure Plan (FMCP) for surrendered area of ha has been approved by IBM, dated Presently the lease area of Kurmitar Ore Lease is ha. The basic infrastructure required for resuming operations are already in place. Once the necessary clearances are obtained the rated capacity of the mine will be increased. The rated capacity of the mine is 2.4 Mt/yr and proposed to be increased upto 6.0 Mt/yr in the year Mechanical evacuation system for fines with crushing & screening coupled with downhill belt conveyor by the end of FY with development of railway siding ore stock yards to mitigate the ore evacuation constraints through ghat road has been planned. From the year 2016 onwards another line of 800 tph stationary crushing and screening has also been envisaged. 5.2 LAND USE PLANNING: The existing land use and the land use at the end of the mine s life are as follows: Sl. No. Land-use Area, Ha As on th Year i.e. upto Conceptual Stage Particulars 1 Mining Area OB/Waste dumping Subgrade Dumping Mineral Storage Feeding area & Long Distance Conveyor for new projects 6 Statutory Barrier (7.5 m safety zone) Roads Total Area * * * Excl. Safety Barrier area When the reserves are exhausted, the mine will be shut down as per the Approved Mine Closure Plan. 5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND Most of the basic infrastructure required for increased production is already in place. However, to cope up with the increase capacity expansion of 6.0 Mt/yr another line of 800 tph crushing unit and installation of Mechanical evacuation system for fines with crushing & screening coupled with downhill belt conveyor having capacity 1000 tph of each conveyor has been planned. Development of railway siding ore stock yards to mitigate the ore evacuation constraints through ghat road has been planned. Ghat road double lane construction is on the verge of completion. Kurmitar mine will employ 412 persons, many of whom, especially most of the unskilled and semiskilled workers, will be local villagers. The rest comprising of the officers, supervisors, some of the office staff, skilled and semiskilled workers may come from outside. These people will be provided accommodation in the existing Khandadhar village townships, which have all amenities. If required the necessary additional accommodations will be suitably expanded., 2015 MECON LIMITED, All rights reserved Page 17 of 19

22 5.4 AMENITIES / FACILITIES During the process of capacity expansion of Kurmitar mine, OMC will construct or expand the required requisite facilities like canteen, rest shelters and blasting sheds which already exist with the area to meet the additional requirement. 6.0 PROPOSED INFRASTRUCTURE To realize the embarked proposal OMC has taken up project of highly mechanized production cum evacuation system. The integrated mining project shall a mechanical evacuation system for fines with crushing & screening coupled with downhill belt conveyor by the end of FY with development of railway siding ore stock yards to mitigate the ore evacuation constraints through ghat road. From the year 2016 onwards another line of 800 tph stationary crushing and screening has been envisaged. OMC is also in the verge of completing the work of making the ghat road to double lane. OMDC has townships with all basic requisite amenities. Electric power required for the mining operation and the conveyor belt operation may be made available by laying power cable trays attached to the conveyor belt structure. Green Belt & Plantations: At present plantations are present over 6.85 ha within the lease area. Additional ha of plantations will be developed over external waste dumps and ha over backfill areas. Before the lease is abandoned, plantations will be created over additional exhausted quarry benches and floors, external over-burden dumps and backfill areas. Saplings of species like Neem, Karanj, Jamun, Mahua, Amla, and other fruit bearing trees etc. will be planted as part of the re-vegetation programme. CSR Activities: Activities already taken up by OMC under its CSR Programme are as follows: Holding of medical camps, supply of medicines to villagers, mosquito eradication programmes Improving drinking water supply systems and infrastructure in peripheral villages Material assistance to needy village women Improvement of education facilities in villages & Supply of Essential Materials to Rantha Primary School, OMC Camp, Khandadhar. Setting up of solar powered street lights in villages Construction of roads & Financial Assistance for improvement of infrastructure in Bonai Bus Stand, Sundargarh Setting up of community toilets Material assistance for village festivals, cultural events and sports activities Annual expenditure towards CSR activities during the year and are Rs lakhs and Rs. 5 lakhs respectively. : 7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN : The project does not envisage any leasing or acquisition of private land. Hence there will not be any land oustees who have to be resettled our rehabilitated. 8.0 PROJECT SCHEDULE & COST ESTIMATE 8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION: It has been envisaged Kurmitar mine of OMC shall attain its rated capacity to 6.0 Mt/yr in FY i.e. 4 th year of the present scheme of mining. However the expansion schedule is subject to receipt of all statutory clearances required for the expansion., 2015 MECON LIMITED, All rights reserved Page 18 of 19

23 8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT The estimated project cost will be Rs lakhs The estimated production cost (including depreciation & interest) at 100% capacity utilization after proposed expansion will be ~ Rs per tonne at rated capacity (iron ore). 9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) The project will have the following benefits: The project will increase the supply of iron for the domestic steel industry. In addition it will add to revenue generation of the District / State. There will be social benefits from the mining operation in the region. The underlying benefits through the proposed project are : It aims to provide additional direct or indirect employment to the local population of the area. The proposed project aims to fulfill its social sustainable responsibility through promoting and maintain permanent structure as follows : Facility for village school including classroom, toilet construction, ceiling fan/coolers or books for school library. Vocational training to be provided to the persons for improving their skills in income generation techniques like stitching, Hatchery. Plumber, carpenter, blacksmith etc. Formation of self help groups to develop the saving and helping each other with financial resources instead of going for heavy interest debts. Considering the above mentioned points capacity expansion of Kurmitar Mine will fetch additional benefits and uplift the socio-economic condition of local villagers apart from generating additional revenue for state. Thus capacity expansion of Kurmitar Mine project has become necessary., 2015 MECON LIMITED, All rights reserved Page 19 of 19

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