PRE- FEASIBILITY REPORT

Transcription

1 PRE- FEASIBILITY REPORT (In terms of provision of EIA Notification 2006) For Expansion of Maton Rock Phosphate mines from 0.18 MTPA to.5 MTPA AT MATON MINES, DISTRICT UDAIPUR, RAJASTHAN By Hindustan Zinc Limited Rajasthan Submitted to Ministry of Environment & Forest (MoEF) New Delhi May 2012

2 1.0 EXECUTIVE SUMMARY industan Zinc is India s only integrated producer of Zinc and Lead and is among the world s leading zinc and lead producers with ore production capacity of 9.75 million tonnes per annum. Its metal production capacity is currently 1,064,000 tonnes per annum (879,000 tonnes per annum for Zinc metal and 185,000 tonnes per annum for Lead metal) and associated byproducts i.e. Cadmium, Silver, Sulphuric acid etc. Hindustan Zinc Limited (HZL) is Asia s largest non-ferrous metal producer of Zinc and Lead and is Head quartered at Udaipur, Rajasthan. HZL is world's second largest integrated producer with a global share of approximately 6.0% in Zinc. H ZL has its operations in exploration, mining, ore processing, smelting and refining of Zinc, Lead, Cadmium and Silver. It is also a major producer of sulphuric acid as a by-product of Lead-Zinc metal processing. HZL also has large investment in wind energy having capacity of 273 MW and thermal power generation of 474 MW. H HZL also has Rockphosphate mining with an annual capacity of 0.18 million tonnes. he Maton mine is an operating mechanized opencast mine located at Village Maton, Tehsil Girwa, District Udaipur, Rajasthan. It is located at about 12 km southeast of Udaipur at a latitude and longitude and falls in the Survey of India toposheet No. 45H/14. The Phosphate deposit of Maton is located in a hill, which trends NE-SW. Site is well connected from two sides by asphalt road from Udaipur. The nearest airport is at Dabok about 12 Km NW of the project site. The nearest railway station is Rana Pratapnagar which is 8 km to the NW of Maton. T

3 he instant proposal is for expansion from 0.18 million TPA to 0.5 million TPA of ore production from its Maton mine of Rock Phosphate. T nvironment Clearance was granted by MoEF for 0.18 million TPA ore production from Maton mechanized Opencast mine vide letter no.j /169/2009-IA.II (M) dated Consent to operate was granted by Rajasthan SPCB for establishment of mine and associated structure vide letter no. F(Mines)/Udaipur(Girwa)/13(1)/ / dated and F(Mines)/Udaipur(Girwa)/13(1)/ / dated The mining operations are being carried out as per the above permissions. E 2.0 INTRODUCTION OF PROJECT 2.1 Identification of Project and Project Proponent Identification of Project The deposit was discovered by the Geological Survey of India (GSI) in 1966/67. There after an exploration program for the assessment of the deposit was under taken. Based on the finding of GSI, HZL took over the lease on for a period of 20 years with a view to develop the deposit as a captive mine for meeting the in-house requirement of Rock Phosphate for the zinc smelter Debari Udaipur. Maton Rockphosphate mine have been engaged in the mining of Phosphorite ore since inception. The initial lease area of ha. was granted on Subsequently the lease was renewed after the first approval period for ten years w.e.f and thereafter was granted an extension as second approval over a reduced area of ha (due to surrendering of Forest land) for a further period of ten years w.e.f The application for further renewal has been applied for and is under process of renewal with state Govt.

4 The mine was non-operational during However, there has been an upsurge in the demand of rockphosphate since 2007 which encouraged the company to review the economics of reopening of the mine in The consent to operate under Air and Water Act is granted by Rajasthan SPCB. Clearance was granted by MoEF for 0.18 million TPA ore production from Maton mechanized Opencast mine vide letter no.j-11015/169/2009-ia.ii (M) dated Consent to operate was granted by Rajasthan SPCB for establishment of mine and associated structure vide letter no. F(Mines)/Udaipur(Girwa)/13(1)/ / dated Ever since, the mine is in operation and operating to its rated capacity. The instant proposal is for expansion from 0.18 million TPA to 0.5 million TPA of ore production from Maton mine. In India the economy being predominantly based on agriculture, the fertilizer application to the cultivable lands plays a pivotal role in getting desired crop production. To meet, the food requirements of ever increasing population, as per the Planning Commission, the utilization of NPK fertilizers is expected to increase at the rate of 4% till India is net importer of its Phosphate requirements to the extent of 90%. Indigenous sources are able to cater upto the extent of 10%. The imports inter alia includes Rock Phosphate, Phosphoric acid which is an inter-mediatory for production of DAP and NPK fertilizers, Mono Ammonium Phosphate and Triple super phosphates. Out of the above, India is importing about 7.5 MT of Rock Phosphate balance is met by indigenous resources to the extent of about 1.5 MT (of the different grades). Of the 1.5 MT, HZL is contributing 0.18 MT from Maton Mines. Considering the huge gap between Demand and Supply, HZL is proposing to increase / expand its capacity from 0.18 to 0.5 MT Project Proponent Hindustan Zinc Limited (HZL) is the only integrated Lead & Zinc manufacturer in India and owns captive Lead and Zinc mines that supply complete requirement of Lead and Zinc concentrate for its smelters. HZL operates mechanized open cast

5 mine at Rampura Agucha as well as underground Mines at Rajpura Dariba, Sindesar Khurd, and Zawar Mines in the state of Rajasthan with state of the art technology to meet the ore requirement of its smelting operation. The smelting capacity stands Mt of metal (0.879 Mt of Zinc and Mt of Lead) and associated by-products i.e. cadmium, silver, sulphuric acid etc. are located at its smelters at Debari, Vizag, Chanderiya and Dariba in Rajasthan and a Melting and Casting plant each at Pantanagar and Haridwar in Uttarakhand. The fiscal and financial performance of the company for the past five year has shown remarkable upsurge. The company has come a long way with technology upgradation, research and development activities, up keeping of environment, safety and ecological balance besides exploring new business opportunities. HZL is also having a Rock Phosphate Mine viz. Maton Mines operating at 0.18 MtPA capacity. HZL is also having Captive Power Plants and Wind Farms Growth The growth of HZL is shown below. TABLE-2.1 GROWTH PROFILE OF HINDUSTAN ZINC LIMITED Sr. No Description Installed Capacity, MTPA Zinc Lead Ore Mining and Beneficiation Zinc Metal Production Lead Metal Production Sulphuric Acid Production Captive Power Plant (MW) Nil Wind Power (MW) Nil Rock Phosphate NIL 0.18

6 TABLE-2.2 EXISTING MINING & SMELTING UNITS OF HZL A. Mining Units Name of the Unit State Main Products Zawar Group of Mines Rajasthan Lead Zinc Ore MtPA Rajpura Dariba Mine Rajasthan Lead Zinc Ore MtPA RampuraAgucha Mine Rajasthan Lead Zinc Ore MtPA Sindesar Khurd Mines Rajasthan Lead zinc Ore MtPA Maton Mines Rajasthan Rock Phosphate B. Smelting Units Debari Zinc Smelter VizagLead-Zinc Smelter Chanderiya Smelter Complex Dariba Smelter Complex Rajasthan Andhra Pradesh Rajasthan Rajasthan Unit Annual Capacity MtPA Zinc MT 59,000 88,000 Sulphuric Acid MT 104, ,000 Cadmium MT Zinc MT 40,000 56,000 Sulphuric Acid MT 72,000 72,000 Cadmium MT Zinc MT ,000 Lead MT 35,000 85,000 Sulphuric Acid MT 1,76, ,000 Silver MT Cadmium MT Zinc MT Nil 210,000 Lead MT Nil 100,000 Sulphuric Acid MT Nil 400,000 Pantnagar Melting and Uttrakahand Zinc MT NIL 400,000 Casting Plant Lead MT NIL 100,000 Silver MT NIL 350 Haridwar Zinc Plant Uttrakahand Zinc MT NIL 250,000

7 2.2 Brief Description of Nature of Project Nature of the Project The present proposal is for expansion of the existing mechanised open cast rock phosphate mine at Maton, Udaipur District, Rajasthan from the present capacity of 0.18 MTPA to 0.5 MTPA of ore. The project is a mechanised opencast rockphosphate mine and is classified as Category-A by Ministry of Environment & Forests, New Delhi as per the EIA notification dated on 14th September 2006 and further Amendments Size of the Project The proposed rockphosphate deposit lies within the lease area of ha with an estimated ore reserves and resource of approx. 5.2 million tons. The grades varying from % of P The target production capacity of mine proposed is 0.5 million TPA. The ore produced will have an average grade of 23-26% of P Location of the Project Maton Mine is located at about 12 km southeast of Udaipur, at a latitude and longitude , and falls in the Survey of India toposheet No. 45H/14. The nearest railway station is Rana Pratapnagar on Udaipur - Chittorgarh broad gauge line of North - Western Railway at about 8 km away. The area is connected by airways with the airport being at Dabok which is at about 12 km. NW on Udaipur-Chittorgarh National Highway No. 76. The Mine is well connected on two sides by metalled road from Udaipur Mining Method The deposit is being mined by mechanised open cast mining method with benches of 10 m width and 10 m height. The bench height and width parameters have been optimized after studies on geo-technical slope stability were carried out by CIMFR. Dhanbad. The study recommended a slope of 45 in footwall orthoquartzite upto a depth of 100 m from highest point. Beyond 100 m the overall pit angle along footwall is suggested to be revised according to local conditions. The mining of the deposit shall continue with the same method. The present working

8 is confined in E1-W1& E2 lens only. The heavy earth moving machineries deployed for mining are diesel operated. A crusher is installed for crushing the ore to a size of <12 mm prior to dispatch. The mine will continue to be operated as mechanized open cast mines with increase in the size of the machinery being used to cope up the proposed expanded mining / excavation requirements. The capacity of the existing crusher will be increased to match the production. A geotechnical study would also be carried out for optimum and safe bench parameters with depth Importance to the Country & Region Indian Fertilizer industry is one of the vital industries for Indian economy, since it manufactures a very critical raw material for agriculture.the main objective of the fertilizer industry is to ensure the supply of primary and secondary nutrients in the required quantities. The fertilizer industry in India has performed a vital role in enabling the necessary increase in the use of plant nutrients for achieving the objectives of self sufficiency in food grains production and accelerated and continuous agricultural growth. Rock phosphate constituets as a basic feed stock for manufacture of phosphatic fertiliser. 2.3 Need for the Project and its Importance to the Country The basis for success in the phosphate business is access to lower-cost phosphate rock, a resource that is geographically concentrated. China, the US and Morocco together account for approximately two-thirds of world rock production and Morocco alone typically supplies more than one-third of global exports. Approximately 30 percent of global phosphate producers are non-integrated, relying on imports or domestic purchases for their rock supply. India has limited indigenous supply of phosphate rock and is the world s largest importer, accounting for about 30 percent of global trade.

9 ('000 tonnes) The following graph shows the Projection of fertilizer nutrients for 12 th Five year Plan Year k P N Source: FAI, New Delhi 2.4 Import Vs Indigenous Production The present production of Rockphosphate in India is estimated at 1.5 MT whereas the imports are estimated as 7.4 MT. If we consider the likely increase in per year, the gap between Demand and supply is likely to increase further. Whereas, on accounts of limited resources available with RSMML (which is the main producer) and MP Mining Corp, the overall domestic production is likely to remain stagnant. The following graph clearly suggests the Demand of Rock Phosphate.

10 In Million Tonnes Demand Year Import Indegeneous Source: 1. Mineral and Metal Trading Corporation of India Ltd. 2. International Fertilizer Industry Association, Paris 2.5 Export Possibility As India is already having scarcity of rockphosphate for its domestic consumption, the chances of export do not exists in near future. 2.6 Domestic and Export Market India has very limited resources of Rock Phosphate as against the Demand. The major use of Rock Phosphate in India is for manufacture of SSP, DAP, MAP, TSP, Phosphoric acid, Di-calcium Phosphate and elemental phosphorus. The Rock Phosphate from proposed expansion is proposed to be supplied as a feed stock to SSP, Phosphoric Acid manufacturing either for standalone use or for blending purpose. There is no export market for rock Phosphate in India as per the reasons given above. 2.7 Employment Generation. The proposed expansion would provide direct employment opportunity for about 180 persons (30 Executives and supervisors and 150 skilled and unskilled manpower) besides indirect employment.

11 3.0 PROJECT DESCRIPTION 3.1 Type of Project The proposed project is a mechanized Open Cast mining project of Rock phosphate of Hindustan Zinc limited situated at Village Maton; Tehsil Girwa; Dist. Udaipur. 3.2 Location Maton Mine is located at about 12 km southeast of Udaipur, at a latitude and longitude and falls in the Survey of India toposheet No. 45H/14. The phosphate deposit of Maton is located in a hill, which trends NE- SW, rising nearly 100 m above valley level. The climate is semi-arid with an average annual rainfall of 600 mm. The temperature varies from 45C in summer to as low as 1C in winter. The area is drained by a nallah, which is a tributary of seasonal Ahar river draining to UdaiSagar Lake. Maton mine receives power at 33 KV from Aklingpura substation of AVVNL. The nearest railway station is Rana Pratapnagar on Udaipur - Chittorgarh broad gauge line of North - Western Railway at about 8 km away. Water requirement is met through rainwater stored in old mine workings and purchase from 3 rd party sources.. The area is connected by airways with the airport being at Dabok which is at a distance of 12km. The Mine is well connected on two sides by metalled road from Udaipur. The revenue map is attached for reference The general location map is as shown below.

12 Maton Mines

13 The details of environmental setting are given in Table-3.1. TABLE-3.1 ENVIRONMENTAL SETTING OF THE SITE Sr. No. Particulars Details 1 Latitude Longitude Elevation above MSL 568m 4 Climatic conditions (Based on IMD Ajmer) Annual Maximum Temp: 45 0 C Annual Minimum Temp: 1 0 C Annual Average Rainfall: 600 mm 5 Present land use of mine site Agriculture, grazing, and barren land 6 Nearest Highway NH-76 (6 km, NW) 7 Nearest Railway Station Rana Pratapnagar (8 Km,NW.) 8 Nearest Airport Dabok (12 km) 9 Nearest Village Maton, Khardadia 10 Nearest Town/City Udaipur (12 km NW) City and District 11 Hills/Valleys Aravalli Hills 12 Reserved/Protected forest Bara Mandra RF, Kantla RF, Panwari RF, Hinlashla RF, Segara RF, Hora RF, Umara RF, Bagdara RF, Amarbir RF, Sant RF. 13 List of Industries Major Industry RSMML at distance of 5 km and HZL s Debari Zinc Smelter at 8 Kms 14 Socio-economic factors No fresh land acquisition. 15 Seismicity Seismic Zone-II. 3.3 Alternate Sites Considered No alternate site is applicable since ore deposit is present at Maton. 3.4 Size of Operation

14 The project has been planned to produce 0.5 MTPA Rock phosphate Ore from the mechanized opencast mine by expanding from the present 0.18 MTPA. The salient features of the proposed project are given in Table 3.2 TABLE-3.2 SALIENT FEATURES OF THE PROJECT Sr. No. Description Details 1 Name of Mine Maton Rockphosphate Mine 2 Mine lease area ha 3 Mine Lease No ML-6/89 4 Ore mineral Rock Phosphate 5 Proved Reserves Probable and Possible reserves million Tonnes Approx million Tonnes 6 Average Grade 24-26% P Ore body Width 3 m to 15 m. 8 Overall Strike length & Direction 3.2 kms, N40ºE- S40ºW 1.2 Kms with in Surface Rights 9 Ore body Dip 50º - 80º towards N50ºW 10 Mineable Reserves 2.5 million Tonnes 11 Established Depth Upto 520 mrl (190 mtrs) 12 Mode of Entry Haul Road 13 Method of Mining Open Cast Mechanized Mine 14 Rated Ore Production 0.5 Million Tpa. 15 Transportation of Ore By Truck/ Dumpers 16 Waste Rock Generation Approx. 11.5MT/Year (Avg) 17 Power requirement 1.0 MW 18 Water requirement 500 KLD 19 Manpower requirement About 180 (30 executives & supervisors, 150 unskilled, semiskilled & skilled personnel) * The Reserves & Resources are estimated as detailed below in section 3.5.2

15 3.5 Project description with Process details Geology The rocks of Maton area belonging to Aravalli Super group of Proterozoic age, strikes N 40E-S40W and dips at degree s towards N50 W and display a synformal structure plunging moderately due NE. Dolomite and argillaceous dolomite is the oldest formation. Next in the stratigraphic column is orthoquartzite and jaspery-quartzite, which hosts stromatolitic rock phosphate. The rocks overlying rock phosphate are phyllite, which grid into mica-schist at places. Rock Phosphate in general is unconsolidated, soft to medium hard in nature, except in few patches where it is compact and cherty. The ore forming mineral is mainly Fluor-apatite (Ca 5 (P0 4 ) 3 F). The phosphorite horizon in the Maton area extends over a strike length of 1.2 km. Thickening and thinning of the horizon is quite common. The thickness of the horizon varies from 3.0 m to as high as 15.0 m Ore Reserves The reserve estimates are based on 1120 m strike length between S-14 to N-65 sections, width of the intersected ore zones and maximum depth up to 520mRL. The reserve has been estimated by Datamine Software using geo-statistical method and statistical analysis. Depletion of reserves: During the plan period of to , MT of ore reserves depleted up to the end of FY Additional reserves estimates: During the plan period no exploration drilling has been done due to access problem on hill slope. However Rock Phosphate has been exposed, during mine development, along the strike of E2 lens towards north, confirming its continuity along the strike up to B block. It can be thus assumed that the ore body exists along the strike, both at surface and subsurface which may add to the present reserves and resource. Resource estimation The resource estimation has been done by volume of each block * in situ density and krigged grades. Total estimated reserves and resource upto -520mRL are

16 3.327 MT of rockphosphate. Additional ore if considered will increase the Qty to 5.2 MT. The categorisation of the ore reserves is as under. The ore reserves at Maton Rockphosphate mine is as under - CATEGORY Mt %P 2 O 5 Proved A) RESERVES Probable Total Measured (M) - - B) RESOURCE Indicated (I) Total M & I Inferred - The in-situ geological reserves/resource as on is shown in the table below

17 Proved Probable Reserve Possible Reserves Av. Depth of Lens Qty Grade Qty Grade Qty Grade Qty Grade Total Res. Grade Estimation W S.Total Top to top E S.Total Top to top E S.Total Top to 520 B- Block Top to 520 W1, E1, E2 S.Total B- Block TOTAL Top to 520 Top to 520 Top to 520 As per United Nation framework of Classification (U.N.F.C), Reserve and Resources position as on is as follows: (in million T) BLOCK LENS Mineral reserve (111) Mineral reserve (121 & 122) Mineral resource (211) Mineral resource (221 & 222) Mineral resource (331) Mineral resource (332) Mineral resource (333) Location W1, E1, E2 A- BLOCK S.Total B- BLOCK B- Block Top to 520 Top to 520 TOTAL Top to 520

18 RESERVES AND ANTICIPATED LIFE OF MINE A total of million T of ore reserve and resources, 1.293MT Proved & MT probable reserves) and million T of resources have been estimated upto 520 mrl with average grade of % in A & B Blocks. At a production rate of 0.18 million TPAin the first year and million tonnes in the subsequent years, the present life of the mine upto 520 mrl will be about 8 years considering limits of practical mining open pit of reserves and resources. As explained previously, exploratory drilling done will further augment the reserves and resources which would increase the life of the mine beyond 10 years Mining Method of Mining: The deposit is being worked by mechanised open cast mining method with benches of 10 m minimum width and 10 m height. The bench height and width parameters have been optimized after studies on geo-technical slope stability were carried out by CIMFR. Dhanbad. They had recommended a slope of 45 in footwall ortho-quartzite upto a depth of 100 m from highest point. Beyond 100 m the overall pit angle along footwall has to be revised according to local conditions. The mining of the deposit is intended to continue with the same method. The present working is confined in E1-W1& E2 lens only. The entry to the benches below 600 mrl is by a ramp driven from south side. Hangwall overburden is removed first, then ore is mined out and then waste of Foot Wall is removed on the bench to reduce the dilution to the maximum possible extent and bench is formed. The heavy earth moving machineries deployed for mining are diesel operated. With expansion, there would be increase in the size of the machines viz. excavators and trucks to cope up the excavation requirements. The crusher capacity would also be increased to meet out the crushing requirements of expanded ore production. Drilling and Blasting: At Maton Mine the bench height in waste (Over Burden) and ore is 10 mtrs. The hole dia. for both ore and waste benches is 115/165 mm. The drilling is carried out with the help of track mounted diesel engine powered DTH (Down the Hole) drill machines of 115/165mm button bit. Drill machine

19 with dust extractor system is being used for controlling Air Borne Dust. ANFO (Ammonium Nitrate Fuel Oil) is used as the column charge along with Primary charge in the form of PETN cast booster or cartridge slurry explosive. The initiation of the explosive is being done by down the hole delay Non Electric shock tubes (NONEL). For interhole delay the trunk line delay detonators are used on surface tie up for improved blast performance, reduced ground vibration and noise level. The max. charge is kept within limit to minimize environmental impact of blasting. The no. of blasts required in ore and waste clubbed together are approx per month. However by increasing the size of the blast, number of blasts would be reduced to 14 to 15 per month. Depending upon the strata condition, bench height and rock type, spacing and burden is being varied. Typical Drill & Blast design parameters are as under. Spacing : 4 to 5 m Burden : 3 to 4 m Depth of holes : 10.5 to 11m Sub grade drilling : 0.5 to 1.0 m Primary charge/booster charge : 250 gm PETN Booster / Cap sensitive slurry cartridge of 83/125 mm dia (12.5 to 25 Kgs) Column charge : Non cap sensitive (ANFO/Slurry Cartridge) Charge Length : 50-60% of hole depth Powder factor : 4 to 5 T/Kg of explosive Pattern of holes : Staggered or Square Pattern Detonators : Millisecond delay detonators. Av. No. of holes in a blast : 60 to 70 nos. Av.Quantity of explosive/hole : 100 Kg. (Approx.) Quantity of explosive/blast. : 6-7 T (Approx) Safe storage of explosive : Explosive is being sourced from licensed magazines.

20 Secondary breaking: Oversize boulder s (Boulder of size more than 1 mtr.) size reduction is done by Hydraulic Rock Breaker. Secondary Blasting i.e. Pop Shooting or Plaster shooting is avoided. With proposed expansion, additional rock breaker would be put in to use to cope up the breaking of boulder. Efforts would be made with improved blasting techniques as described above to keep generation of boulders below 1% of total blasted volume. Presplitting: To achieve stable slopes and control the blast damage to walls, presplitting techniques would be adopted at final pit limits.. The technique would involve, drilling small dia holes ( mm) at a close spacing of 1.0 to 1.2 mtrs. along the final bench profile line at an angle of 70 to 80 degrees as per the recommended slopes. These holes would be then charged lightly with mm cartridges which are suspended in to holes axially tied with a detonating fuse. A charge factor of 0.40 to 0.60 Kg / sq meter would be maintained depending upon the strata conditions. The holes are then fired instantaneously and are normally fired prior to the production blast in front of limit line. The final production blast is called Trim Blast. In Trim blast in front of Pre-Split, one or two small dia production hole line is drilled at a standoff of 1.0 to 1.5 mtrs to reduce the charge concentration near final wall. The trim blast is fired with inter hole delay of 42 ms or 65 ms with inter row delays of 100 ms so as to have proper burden relief for holes and reduced vibrations on wall. The excavation is then done maintaining the slope. However exact parameters of pre-splitting can only be established after a number of trial blasts with varying spacing and/or explosive charge and the most appropriate pattern would be adopted. The machinery to be deployed for expanded capacity would be as tabulated below. TABLE 3.6 DETAILS OF MACHINERIES

21 Equipment Capacity Existing (Nos.) Proposed (Nos.) 2.0 cum 4 2 Excavator 6.7 cum - 2 Rock Breaker MT 25 3 Dumper 50 MT mm 1 2 Drill 115 mm KL 2 - Water Sprinkler 20 KL - 2 D65 E 2 - Track Dozer D275 A 2 Motor Grader - 1 The expanded production (ore and overburden) requirement is to T of rock per day. The capacity of machinery has been arrived at after considering the availability and utilization of the equipments. Four excavators (2 of 6.7 m3 & 2 of 2.0 m3 for ore) and twenty dumpers of 50 T are planned Conceptual Mine Plan The present working is confined to E1-W1& E2 lens only. The present entry is through a ramp along the hill on FW side. Hangwall overburden is being removed first, then ore is mined and then FW is excavated thereby forming the bench and reduced dilution. The ore body is proven up to 520 mrl and the pit will be economical up to this depth of approx 190 meters from the top. It is proposed to keep a pit slope of 45 in footwall ortho-quartzite upto a depth of 100 m from highest point and beyond 100 m the overall pit angle along footwall has to be made flatter according to local conditions. A detailed Geotechnical study would also be conducted to arrive at optimal bench slopes and overall angles and depth of pit. The mine operation is planned on three shifts per day of 8 hours duration basis. The mine is scheduled to work for 300 days/ year after keeping margin for weekly day of rest, public holidays and days lost due to weather conditions like rain, fog & storm. Ore Production Schedule for Mining Plan period five years after grant of EC would be as follows

22 Plan period Ore Production ,80, ,00, ,00, ,00, ,00,000 Production in Year 1 has been considered as per existing plan considering the time required for development of the ore for 0.5 MTPA capacity Selection of Dumping Site The overburden generated from mines will be stacked at earmarked Dump locations which are at north east of strike direction and East of the strike direction. These sites have been selected as the area doesn t bear any mineralisation and is within the acquired land. 3.6 Raw material required along with estimated quantity likely source, marketing area of final product/s, Mode of transport of Raw material and finished. Maton being a purely mining Project and there wouldn t be any other process involved like beneficiation. So no significant raw material requirement is there except consumable like fuel for equipments and explosive / Ammonium Nitrate for blasting purpose. The final product would be ROM and/or crushed Rockphosphate. The mode of transport of material would be through trucks. 3.7 Resource optimization / recycling and reuse envisaged in the project, if any Not envisaged 3.8 Water & Power Availability & Source Water Availability

23 An additional 300 KLD of water will be required, as compared to the present 200 KLD for the present capacity of 0.18 MTPA. The additional requirement is proposed to be extracted from ground from within or outside the mine lease through bore wells after obtaining requisite approvals and also from the rain water collection in the pit area, water collection pond is also proposed to be constructed Power Availability Energy requirement will be 1.0 MW after expansion. Power will be wheeled from captive power plant at Hindustan Zinc s Zawar mines located 45 kms away through AVVNL grid. 3.9 Waste Generation and its Management Solid Waste The waste rock generated from the mining will be systematically dumped at earmarked overburden dumps with proper stabilization and plantation. The physico-chemical analysis of the waste rock indicates that the waste is nonhazardous in nature and not likely to cause any adverse impacts. Waste generated by mining will be dumped at pre decided sites in ultimate dump configuration of 10 x 10 meters or 5 x 20 m lifts after obtaining necessary approval. Each lift would have slope angle of 40 0 and overall final slope of There is no sub grade mineral available as such there would not be need for stacking of sub grade mineral separately. The proposed excavation of overburden for five year is as follows. Year Qty(T) Total Liquid Waste, effluents

24 No Liquid effluents / waste generation would be there as beneficiation plant is not proposed. 4.0 Site Analysis 4.1 Connectivity Maton Mine is located at about 12 km southeast of Udaipur, at a latitude and longitude and falls in the Survey of India toposheet No. 45H/14. The nearest railway station is Rana Pratapnagar on Udaipur - Chittorgarh Broad gauge line of North - Western Railway at about 8 km away. The area is connected by airways with the airport being at Dabok which is at about 12 km. (NW) on Udaipur Chittorgarh NH 76. The Mine is well connected from two sides by asphalt road from Udaipur. The revenue map is attached for reference. 4.2 Land Form, Land use and land ownership Land Form The general topography of the Mining Lease area is flat to undulated. The mineralization is within a hillock. HZL has the surface rights over the land where mining and related activities are being carried out Land Use Total Mine lease area is of ha, out of which ha is acquired within mining lease area for carrying out mining and related support activities. Additionally Ha has been acquired outside the ML area for OB storage, crusher, offices etc. The pre operational land use pattern of mining lease is as follows: The present land use detail of acquired land is as per following table.

25 Land Use Area(ha.) Built up 4.42 Mine pit Waste Dump Green Belt Others Total No additional acquisition of land is proposed for expansion from 0.18 million TPA to 0.5 million TPA of ore production at Maton Rockphosphate Mine Land Ownership Village wise details of total land acquired from within the mine lease and outside the mine lease area for the mining project is as below. Village Govt Land Private Land Total Maton Umra Lakadwas NIL Karbadia NIL Total Topography Topography of the area is shown in attached map. TOPOGRAPHICAL FEATURES OF THE AREA

26 4.4 Land Use Pattern of Mining Lease Details of the land is as given in sec and above 4.5 Existing Infrastructure and Amenities Existing Infrastructure viz. Office building, Crusher, and quarters for the security personnel are available at site. As Udaipur, a major city is nearby from the project site; all basic amenities like school, hospital, recreational facilities, electrical lines are available. 4.6 Soil Classification The texture of soil is mostly sand and silty sand in the study area. The PH of the soil in the study area ranged from The soil is neutral to slightly alkaline. Details of soil sampling locations:

27 Station Code Location Distance wrt. Boundary of Direction wrt Centre of ML Present Land Use ML Area (km) Area S1 Umra Village 2.2 S Agri. Land S2 Lakadwas 2.4 E Barren Land Village S3 Nr UdaiSagar 3.0 NE Barren S4 Maton Village 0.5 N Barren Land S5 Kharbadia 0.6 NW Barren Land Village S6 ML area Core Zone - Industrial area The soil analysis parameters as per recent monitoring report Dec 2011 are as shown below: PARAMETER UNIT RESULTS S 1 S 2 S 3 S 4 S 5 S 6 ph Ca 2+ % Mg 2+ % SODIUM as Na % POTASSIUM as K % AVAILABLE N % CHLORIDE as Cl % SULPHATE as So 4 % IRON as Fe % MANGNESE as Mn % ZINC as Zn % ALUMINUM as Al % LEAD as Pb % PHASPHATE as Po 4 % PHOSPHOURS as P % ORGANIC MATTER % ORGANIC CARBON % WATER SOLUBLE CHLORIDE %

28 4.7 Climatic data and secondary sources The meteorological data recorded during the monitoring period is very useful for proper interpretation of the baseline information as well as for input prediction models for air quality dispersion. Historical data on meteorological parameters will also play an important role in identifying the general meteorological regime of the region. The year may broadly be divided into four seasons: Winter season : December to February Pre-monsoon season : March to May Monsoon season : June to September Post-monsoon season : October to November Onsite monitoring was undertaken for various meteorological variables in order to generate the site specific the data was collected at site every hour continuously from 1 st march 2009 to 31 st March 2009 covering pre-monsoon season. The generated data then compared with the meteorological data generated by nearest Indian meteorological Department (IMD) station located at Udaipur at a distance of (12 km NW) 4.8 Social Infrastructure available The location is very near to the city of Udaipur and all the basic social infrastructure as listed below are available. Hospitals Banks Post Office Railway Station Bus Station Schools Police Station Shopping Complexes Sports Infrastructure

29 Cinema Hall 5.0 PLANNING BRIEF 5.1 Planning Concept The industry is mining. It is proposed for expansion of mine from 0.18 MTPA to 0.5 MTPA of ore production. The mining will be through open cast method by conventional Shovel Dumper combination and Drilling and Blasting. The operations will be fully mechanised. The ore excavated will be stacked at ore yard from where will be loaded in dumpers and will be crushed to <12 mm size. Separate stock yards of crushed ore will be maintained as per the grade. The ore will be sold to the parties which shall be transported through trucks by road. All required infrastructure is already available. 5.2 Population Projection As per 2001 census, persons inhabited in 10 villages around Maton Mine. The distribution of population in the study area is as per the table below. TABLE 5.1 DISTRIBUTION OF POPULATION IN STUDY AREA Sl. No. Village Total Family Population 1 Maton Kharbadia Lakadwas Kaladwas Eklingpura Umra DhuniMata Boiki Pancholi Kanpur Kamlod Grand Total

30 . 5.3 Land use planning The land use pattern of the total acquired land is as given in Sec above. 5.4 Amenities and Facilities i) Education: There exists Primary, Secondary and Senior Secondary Schools and colleges ii) Social Infrastructure like Hospitals, Post Office, Bank, Police Station, Bus Station, Facility Exists iii) Telecommunication, LPG services, Marketing stalls, Sports infrastructure exists iv) Recreation- Existing Recreation facilities such as cinema hall, Sports infrastructure 6.0 PROPOSED INFRASTRUCTURE 6.1 Industrial Area Infrastructure is already available for 0.18 MTPA capacity. The same infrastructure will be shifted within the mine premises / acquired land on expanding to 0.5 MTPA if needed. Road Network two way road along the mine. Power transmission 4 kms of 33 KV transmission line installed through AVVNL. Internal roads within mine boundary Office buildings The following would be developed as part of the proposed expansion Truck parking facility Residential Area: No residential Area shall be developed as HZL is already having the residential colony at Udaipur. 6.2 Green Belt HZL has planted 5500 plants saplings from to in an area of ha. Thick vegetation will be developed along acquired land boundary to

31 attenuate the dust and noise. The plantation will be carried out along the roads within the boundary to arrest dust. The plantation will also be carried out on the waste dumps slopes as and when they mature i.e. reach to final limits after their stabilization. Plantation will also be done on the top of waste dump benches. Around 33% acquired area shall be developed with plantation. 6.3 Social Infrastructure The Maton Mines is very near to the city of Udaipur and its suburbs and all the social infrastructures as listed below are available. Education: There exists Primary, Secondary and Senior Secondary Schools and colleges Social Infrastructure like Hospitals, Post Office, Bank, Police Station, Bus Station facility exists Telecommunication, LPG services, Marketing place exists Recreation- Cinema hall, Sports infrastructure exists Looking to above, company doesn t propose for creation / construction of any Social Infrastructure. However the company would continue its CSR activities in surrounding villages of Maton. 6.4 Connectivity The project site is located 12 Km South East of Udaipur city and is well connected by Jhamarkotra road from Udaipur. The nearest Airport is Dabok about 12 Km NW of the Maton Mine. The nearest railway station Rana Pratapnagar is 8 Km NW of Maton Mine. NH 76 is at 6 km NW from the ML area. As site is well connected, there is no requirement for any additional infrastructure except strengthening of internal roads. 6.5 Drinking water management 15 cum/day of drinking water would be required during the operations. Same shall be purchased from external sources in the same way as being done at present.

32 6.6 Sewerage System As there will be no township facility developed within the boundary so no sewerage waste would be there and need for Sewerage System would not be there. 6.7 Industrial Waste Water management Since the Ore beneficiation Plant is not proposed, there would not be generation of any industrial waste water and effluents. The rain water collected in mine pit area, will be used in wet drilling and water sprinkling for dust suppression on haul roads. Zero discharge of water shall be maintained from mining premises. Storm water generated shall be allowed to flow naturally ensuring no contamination to it. Garland drains and de-silt pit will be constructed around the OB dump to ensure de- silting of rain water. The rainwater will be collected in suitable sump pits and will also be used in mining operations and dust suppression. 6.8 Solid Waste Management About 521,80,000 T waste rock (Over Burden) would be generated from the mine proposed Mining Plan period of five year. Waste rock from the development heading would consist of quartzite, phyllite, Jaspery quartzite, etc. Mine waste from development areas shall be transported and dumped in a specifically assigned area i.e. waste dump area. The waste is non-hazardous in nature and not likely to cause any adverse impacts. The dumps will be stabilized by plantation of trees. The following mitigation measures for solid waste management shall be adopted: Adequate slope will be maintained to give proper stability to the dump. Waste will be stacked & leveled systematically in layers. After reaching the benches to their ultimate height and location, plantation shall be done on slopes and top. Construction of garland drains around the Waste dump so that surface run off from the dump is collected in a sump. Regular maintenance of the garland drains constructed around the solid waste dump to collect the surface run off. 6.9 Energy requirement

33 Presently Maton mine receives Power at 33 KV from Aklingpura substation of AVVNL. Energy requirement will be approx 1.0 MW after expansion. Power will be wheeled from captive power plant at Hindustan Zinc s Zawar mines located 45 kms away through AVVNL grid. 7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN There will not be any additional acquisition of land due to proposed expansion from 0.18 million TPA to 0.5 million TPA. All the mining operation will continue within the and acquired land within and outside ML. 8.0 PROJECT SCHEDULE AND COST ESTIMATES 8.1 Project Schedule The current production of rockphosphate ore of Maton mine is 0.18 MTPA.It is proposed to increase its production of ore from 0.18 to 0.5 MTPA. The mine will reach to the expanded capacity of 0.5 MT in Year 2 / year Capital Cost Estimates As the project is going to be completely outsourced so there will be no capital cost on machineries. The only cost comprise of crusher, office infrastructure, shifting of power line, small warehouse etc. The total Capital cost has been estimated at INR 120 million (12 crores) The calculation below indicates that the project is robust and is economically viable at a high stripping ratio of 24 considering average sale price of the product at Rs 2500 per Tonne. TABLE 8.1

34 ECONOMICAL VIABILITY Description Ore prod (Lac tons) Tentative Total Excavation (in Lac Tons) Capex (Crusher and Offices) (Av price) Operating Profit Depreciation Tax (30%) Net Cash Flow All Amounts are in Lacs. 9.0 ANALYSIS OF PROPOSAL (Final Recommendations) 9.1 Financial Benefit The proposed project will reduce import of rockphosphate and phosphoric acid thus saving of foreign exchange. It will boon for the fertilizer industry and agriculture. This will also generate revenue to the state Government as well as central government. The people around the region will get direct and indirect employment thus improves the financial status. HZL will also get benefited. 9.2 Social Benefits The proposed project shall proactively participate in the upliftment of socio economic index of the communities around the project site by way of financial and administrative support. The project will open up employment opportunities, directly and indirectly. There shall be opportunities for entrepreneurs to engage in many service sectors directly or indirectly associated with the project. The CSR approach of the company continues to be towards sustainable livelihood management of the community around. on the present focus areas shall be continued in education, health, sanitation, drinking water, agriculture, water shed management, culture identity preservation, tribal welfare, welfare of socially weaker sections and marginalized people.

35