PRE FEASIBILITY REPORT. PROJECT Maharkund Manganese Ore Mine (10.62 ha) Village Maharkund; Tehsil Ramtek; District-Nagpur (MS) Project Proponent

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1 PRE FEASIBILITY REPORT PROJECT Maharkund Manganese Ore Mine (10.62 ha) Village Maharkund; Tehsil Ramtek; District-Nagpur (MS) Project Proponent M/s Veet Rag Homes Pvt. Ltd. 267, Ganesh Phadnavis Bhavan, Near Trikoni Park Dharampeth, Nagpur (M.S.) Consultant Enviro Techno Consult Private Limited 68, Mahakali Nagar-2, Near Manewada Square Nagpur Accreditation : NABET/QCI Listed at Sl. No. 16, July 11, 2016 JULY 2016

2 Pre-Feasibility Report 1. Executive summary: Project proponent M/s Veet Rag Homes Pvt. Ltd., (VRHPL), Nagpur holds a manganese ore lease of ha near village Maharkund in Saoner tehsil of Nagpur district. M/s VRHPL has been engaged in mining of manganese and bauxite ore besides other commercial business. This lease was held by others prior to M/s VRHPL. M/s VRHPL have been in possession of the lease since 2002, but have not worked on the same till today. Validity of lease has been extended up to 50 years. This is a private revenue land surrounded by forest. Lease details o Latitude -21º º N; o Longitude -78º º E. o Topo sheet no. 55K/14 o Area ha; gentle slope to NW; highest point 369 m RL and lowest 351m RL at NW; o Local geology- Folded & metamorphosed rocks of Sausar series. Manganese ore belongs to Mansarstage litho sequence is soil followed by Mansar & lohangi formations. o Ore is composed of psilomilane, wad & of pyrolusite occasionally. Ore is soft and friable. o Reserves =1,93,915 T. o Quality of ore- Mn: %; Fe: %; SiO2 : % o Ore body is soft and 1-2 m wide

3 Proposal : M/s VRHPL proposes to work this lease as per approved mining plan. Mining plan has been approved by IBM Nagpur vide letter no. NGP/MP/MPLN-782/NGP dated 23/12/15. Mining method: o Mining plan proposes A category mechanized method without drilling & blasting because ore body is soft. o Bench height in O.B. will be 6 m & width will exceed height. o Orientation of benches will be along the strike of ore body. o Pit at the end of M.P. period will occupy 9199 m 2 & 39 m deep. o O.B. being soft will be removed by back hoe or loader and loaded into tipper trucks. o O.B. soil and reject generation in two years will be respectively 178,551 m 3, nil and m 3 o It is proposed to provide office, rest shelter, stores, first- aid facility etc. o R & R is not involved in this project since land is owned by the proponent. o Cost of production per tonne of ore is likely to be Rs 4000/-. Selling price is dependent on market at a point of time and can be between Rs /- per tonne. o Review of the mining scheme indicates that mining is possible without jeopardizing social status of Maharkund village. This project will be carried out with respect to the present environmental setting.

4 2. Introduction of the project/background information: i) Identification of the project & proponent Present project is for manganese mining at village Maharkund in Saoner Tehsil of Nagpur district. Deposits at the Maharkund were worked by some earlier lease holder on a very small scale and then abandoned. Project proponent: M/s VRHPL, Nagpur has been engaged in manganese mining operations and sale of ores like bauxite and manganese. VRHPL hold manganese leases at Kirnapur (23.67 ha), Saoner tehsil and at Kachurwahi-Wadegon (78.5 ha) ) villages in Ramtek tehsil. They own a bauxite lease (95.57 ha) in Kumbhwade in Rajapur taluka of Ratnagiri district. Maharkund lease period is 50 years. Lease letter is at Annexure 1. Project: Location: Lease measuring ha is non- forest revenue land. It can be reached from Nagpur via Khapa and village Badegaon. Site can be reached from Badegaon by a seasonal road. Site is 46 km from Nagpur. Nearest railway station is Khapa.

5 Latitude of the lease -21º º N; longitude - 78º º E. Topo sheet no. 55 K/14. Area is ha.; gentle slope to NW; highest point 369 m RL and lowest 351m RL at NW; Local geology- Folded & metamorphosed rocks of Sausar series. Manganese ore belongs to Mansar stage litho sequence is soil followed by Mansar & lohangi formations. Ore is composed of psilomilane, wad & of pyrolusite occasionally. Ore is soft and friable. Reserves =1,93,915 T. Quality of ore - Mn : %; Fe : %; SiO2 : %. Mining plan/scheme has been approved by I.B.M vide letter no. NGP/MP/MPLN-782/NGP dated 23/12/15 I.BM. Approvals of mining plan and scheme for the period are in Annexure 2. Location of lease is shown in Figure 1.

6 LOCATION OF LEASE FIGURE 1

7 ii. Brief description of nature of the project: This project proposal is for manganese mining by mechanized open cast method at village Maharkund in Saoner tehsil. Mechanized mining without drilling and blasting has been proposed because the ore is friable and soft. Geological reserves are 193,000 tonnes. Manganese contents vary from to percent; iron 8.67 to per cent and silica from to per cent. This lease has been previously worked but not in the recent past i.e. not after Width of manganese ore body is 1-2 m. Open cast excavation will be in the existing pits. First bench of 6 m height in first year will be 72 m along the strike. Second bench will follow as per mining plan. O.B., ore, rejects generation in two years O.B. = m 3 Ore = T Mineral rejects = T Soil = Nil Ultimate depth of the pit will be 39 m below ground level (bgl). Ground water table varies between 10 and 20 m bgl. Water from the working pit will be pumped out to a seasonal nalla to the west. This drain which ultimately meets the Khera seasonal drain and Khera drain meets the Kanhan river.

8 Equipment like back hoe, loaders (0.9 m 3 bucket capacity), rock breakers will be procured. iii. Need for the project/importance to country Manganese is required in steel and ferro alloys industry. There are a number of units around Nagpur. Quality of ore at Maharkund deposits is acceptable to these and will meet the requirements of regional manufacturers. This part of Maharashtra is known for manganese deposits and which have been worked since long. iv. Demand & supply gap: As in iii above and marketability has been confirmed by project proponent. v. Import vs. indigenous production: Import of this ore will reduce and hence the cost of production will also reduce proportionately. vi. Export possibility: Proposed production tonnes in two years will be adequate for domestic consumption and export is not envisaged at this stage. vii. Domestic markets: Bhilai steel plant, ferro alloys unit in Kanhan and Chandrapur area are assured markets.

9 viii. Employment generation: Revival of mining at this site will generate direct and indirect employment to about 40 persons including 12 technical persons. 3. Project description: i) This is an independent project and is not linked with any other project ii) Location: Location of lease at Maharkund is shown in Figure 1. Project boundary with coordinates is shown in Figure 2.

10 PROJECT BOUNDARY WITH COORDINATES FIGURE 2

11 iii) Alternate sites : Alternate sites were not looked for since deposits are site specific and the lease is in possession. This lease has been worked earlier. Lease has been officially granted to the proponent. iv) Size and magnitude of operation: Approved mining scheme period is There has been no working since It is proposed to extract tonnes in 2016 & 2017 after E.C. is received. o Excavation: In-situ excavation = m 3 OB/SB/IB = m 3 Ore Grade or size Rejects = T = T v) Project description: o Mining will be by category A mechanized method. o Ore and associated rocks are soft. Therefore drilling and blasting will not be required. o Waste material will be transported by 16 T tipper to a stack yard were sorting also proposed. o A recovery of ROM will be 100%, saleable being 90%. o Waste will be stored over 0.61 ha area. o Reclamation is not proposed because ore body continues down below.

12 o Land use Use Present, m , m 2 Conceptual, m 2 Under pit Waste dump Reject stack Infrastructure Road Plantation ROM stack Total o It is proposed to provide office, rest shelter, stores, first aid facility. o About 40 persons including a mine manager will be required. o Year wise development plan is included in Figure 3. vi) Resource optimization: It is not proposed to use OB/SB/IB for backfilling the pit as per mining plan because ore body continues down under beyond 39 m. viii) Availability- water & energy Existing well will be used meet water 3 m 3 /day. State electricity grid will be the energy source. ix) Wastes generation effluent per se is not anticipated, but mine pit water will have to be m 3 /hr during monsoon

13 presuming 1000mm rainfall per year. Solid waste will be stored in a separate dump ore 3 ha. FIGURE 3

14 YEAR WISE DEVELOPMENT & PRODUCTION PLAN

15 4. Site analysis i) Connectivity: This lease can be reached by road from Nagpur via Khapa. All weather road continues up to village Badegaon, from where there is a seasonal road (3 km) up to Maharkund. Nagpur to Maharkund distance is 48 km. It is about 42 km from Nagpur and the Tehsil place is Saoner. Nearest railway station is Khapa and Sonegaon/ Nagpur airport is about 50 km. ii) Land form, use and ownership: Land is owned by project proponent and has been traditionally used for manganese mining by previous leases. There are pits due to previous working. A copy of lease is at Annexure 1. This area has been officially designated for manganese mining. ii)topography: Area is flat with a gentle slope to NW. Highest and lowest points are respectively 369 and 351 RL in the NW corner. Survey of India topographical map No. is 55 K/14. It is included in Figure 4.

16 TOPOGRAPHICAL MAP NO. 55 K/14 FIGURE 4

17 There is a seasonal nalla to the west of this lease. This drain ultimately meets the Khera seasonal drain. Khera drain meets the Kanhan river. iii) Land use pattern Lease is a part of waste land. There are no water bodies in the lease. There is no forest. Present land use is shown in v) Infrastructure There is no infrastructure over the lease except a road. vi) Soil classification Lithological sequence Soil Soil covers Mansar & lohangi formations It is blackish brown. Thickness is 0-2m generally Mansar formation quartz-mica-shist ± garnet. Quartz-mica-shist is exposed in pits. Soft & powdery ore is found Lohangi formation The oldest formation, it is pink, coarse grained marble. Calcite is with subordinate quartz is the main mineral. There is no soil cover over the proposed work area since existing pit will be deepened. vii) Climatic data for the area (IMD) is included in Annexure 3.

18 viii) Social infrastructure Maharkund is a small village in the tehsil / Taluka of Savner / Saoner, in the Nagpur district of Maharashtra. Village Maharkund has 50 households. Total Population of 228 and male population is 112 and female Population is 116. Nearby cities are Nagpur, Kalmeshwar and Ramtek. People in this area are used to mining activities since mining has been practiced over the lease in the past. 5. Planning brief: i) Planning concept: It is proposed to carry out mining in Khasra no 53 (3.16 ha), 54 (3.33 ha) & 55 (4.13 ha) near Maharkund village which is a private waste land. There is no habitation. There is no probability and planning of habitation. ii) Use of land during plan after mining for two years will be Pit area : 0.92 ha Haul road : 0.27 ha Green belt : 0.11 ha Infrastructure : 0.15ha ROM stack : 0.041ha Waste dump : 3.00 ha 6. Proposed infrastructure: i) There will be one office shed, rest room and roads during the operational phase.

19 ii) Residential area is not planned; hence social infrastructure like sewerage, garbage management, power supply to colony etc. will not be necessary. v) Drinking water, rest room will be part of office premises. 7. R & R R & R is not involved in this project since land is owned by the proponent. 8. Project schedule & cost estimates Project proponent is acquainted with requirements of mining. It is proposed to start mining after EC is granted. Mining will be carried out as per the approved mining scheme during the years Cost estimates Item Asset Rs. In lakhs (Office, rest shelter, store guard room, plant & machinery etc) Working capital margin Pre operative 2.50 MSEDCL charges 2.50 Fixtures 1.00

20 Cost of production per tonne of ore is likely to be Rs 4000/-. Selling price is dependent on market at a point of time and can be between Rs /- per tonne. 9. Analysis of proposal: Review of the mining scheme, study of prevailing demand for manganese ore shows that it will be possible to mine manganese without disturbing any of the prevailing constituents of environment. Drilling and blasting will not be required because ore is soft. The only activity will be of transportation of mined ore from site to the user industry. There are no sensitive receptors or eco systems. Discharge of mine pit water will ensure perennial flow in the local drain which can be used for agriculture.

21 A N N E X U R E S

22 ANNEXURE 1

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31 ANNEXURE 2

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35 ANNEXURE 3 IMD Summarized data for five years Year Temperature C Humidity % Rainfall, mm Minimum Maximum Minimum Maximum