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INDIAN BUREAU OF MINES MINES CONTROL AND CONSERVATION OF MINERAL DIVISION MCDR INSPECTION REPORT Dehradun regional office Mine file No HP/BLS/LST-9 (i) Name of the Inspecting Officer and ID No. (ii) Designation (iii) Accompaning mine Official with Designation Mine code 38HPR01003 G021 ( ) DATA RAM GURJAR Assistant Controller Mine Shri Pankaj Nayan,Chief Manager(Mines) (iv) Date of Inspection 23-FEB-15 (v) Prev.inspection date 09-OCT-14 PART-I GENERAL INFORMATION 1. (a) Mine Name GAGAL (b) Category A Mechanised (c) Type of Working Opencast (d) Postal address State HIMACHAL PRADESH District BILASPUR Village BARMANA Taluka SADAR Post office BARMANA Pin Code FAX No. (01978) - 244067 E-mail www.acclimited.com Phone (01978) -44041/44037/44033/ (e) Police Station BARMANA (f) First opening date 06-JAN-83 2. Address for correspondance M/S A.C.C LTD. GAGAL CEMENT PROJECT P.O. BARMANA, DISTT- BILASPUR ( H.P) 3. (a) Lease Number HPR0001 (b) Lease area 231.25 (c) Period of lease 20 (d) Date of Expiry 18-FEB-19 4. Mineral worked LIMESTONE Main

PAGE 2 5. Name and Address of the Lessee Owner Agent Mining Engineer Name Qualification Appointment/ Termination date Mining Engineer Name Qualification Appointment/ Termination date ASSOCIATED CEMENT COMPANY LTD. Co. GAGAL CEMENT PROJECT BILASPUR HIMACHAL PRADESH Phone FAX SUMIT BANERJEE, MD, ACC LTD. ACC LTD.,CEMENT HOUSE 121 MAHARISHI KARVE ROAD MUMBAI MUMBAI (SUBURBAN) MAHARASHTRA Phone (01978) 244031 FAX (01978) 244067 ATUL KHOSLA ACC LTD, GAGAL CEMENT WORKS PO - BARMANA DISTRICT - BILASPUR (H.P.) BILASPUR HIMACHAL PRADESH Phone (01978) 244031 FAX (01978) 244067 S.K.SINGH,Full Time B.E. MINING, FCC 10-FEB-08 HARSH VATSYAYAN,Full Time B.E. MINING 08-OCT-08 08-OCT-08 Manager Name Qualification Appointment/ Termination date S.K.SINGH B.E. MINING, FCC 10-FEB-08 6. Date of approval of Mining 21-MAY-91 Plan/Scheme of Mining PART - II TECHNICAL DETAILS/COMMENTS 1. Details about Average employment Maximum number of persons employed on any day during the year Employment category No.of employment Av. yearly working days DIRECT Managerial Workers Supervisory 9 63 6 306 306 306

PAGE 3 2. Community Development Plan (in and around the mines) Proposed action and expenditure towords socio-economic development. Action during the year Expenditure in Rs. Lakhs for Remarks previous year current year Proposed Incurred Proposed Incurred General Sanitation Water supply Medical facility 23.88 14.00 19.52 23.00 17.00 20.00 25.00 20.00 25.00 75.69 43.59 99.72 Sub total Infrastructure 57.40 60.00 70.00 219.00 Public transport 44.92 55.00 90.00 298.06 Sub total Environment management Employment Recreation Others Training 44.92 7.00 3.52 30.00 261.38 33.54 55.00 60.00 298.06 15.00 15.00 30.00 315.00 45.00 10.00 10.00 25.00 300.00 40.00 28.32 18.11 102.57 ******* 161.37 Total 437.76 545.00 535.00 ******* 3. Status of compliance of MCDR, 1988, including therewith the rectification of the outstanding violation of rules. Violation of rule 23(E)(2) and 45(1(a) of MCDR'88 has been detected during the inspection and communicated to the lessee for immediate rectification. 4. A note on the justification in case of suspension of mining operation under rule 13(2) or prohibition of deployment of any person under rule 56 of MCDR, 19888, if recommended. It is not recommended for suspension of mining operations under rule 13(2) or prohibition of deployment of any person under rule 56 of MCDR, 1988.

PAGE 4 5. Scientific Mining Items Proposal Actual work done Remarks A. Exploration (Rule 13) a.type of prospecting and exploration i.e. pitting, drilling b.total area covered B. Working (Rule 13) No proposal of exploration for the last year 2013-14. No proposal of exploration for the last year 2013-14. Nil Nil a.number and size of each pit (LxWxH) b.bench size(lxwxh)length can be defined as regular/irregular c.ore to waste ratio pit wise if possible otherwise for mine d.total area covered under excavation/pits C. Waste disposal (Rule 13) One pit having dimension approximately 1000m in length & 700m width was proposed. Mining was proposed by formation of Benches height 10m and width >20m in regular shape. 10 It was proposed that approx. 60 Ha area will be covered under mining. During the inspection the one pit having dimension 1000mX700mX126m was observed Systamatic benches were formned of 10m hieght of each and width is greater than hieght. 10 57.3 Ha area has been covered under current O/C working+area reclaimed a.location of dumps e.yearly generation of waste quantity. b.method of dumping whether advancing/retreat c.total area covered under waste dump. No waste has been proposed to be generated during the year 2013-14 as high magnesia limestone is being simultenously used by blending. No proposals are incorporated as no waste is generated. No proposals are incorporated as no waste is generated. No proposals are incorporated as no waste is No waste has been generated during the year 2013-14 as high magnesia limestone is being simultneously used by blending. Old waste dump covering area of about 05 hectares is lying in the NE part of the ML area. Not applicable Not applicable Not applicable.

PAGE 5 d.no.and size of each waste dump with No of steps/lift/bench D. Production generated. No proposals are incorporated as no waste is generated. Not applicable b.year wise production of last five year. D. Reserve Year wise production in million tonnes of Limestone and shale 2009-10 = 4.5 mt 2010-11 = 4.5 mt 2011-12 = 4.5 mt 2012-13 = 4.5mt 2013-14 = 4.5mt Actual production for the last five years(limestone+shale) 2009-10 = 4.1 mt 2010-11 = 4.2 mt 2011-12 = 4.3 mt 2012-13 = 3.92 mt 2013-14 = 3.81mt a.reserve position as per latest MP/MS and at the time of inspection. limestone and shale (mt) Category (111) Proved = 154.77 Category (122) Probable = 59.94 limestone and shale (mt) as on 01-04-2014 Category (111) Proved = 150.96 Category (122) Probable = 59.94 Category (333) Possible = 279.03 Category (333) Possible = 279.03

PAGE 6 6. Conservation of Mineral - both quantitative and qualitative Beneficiation (Rule 20 and 26) Efforts for improving low grade and sub grade mineral. Efforts for improving percentage of recovery of ore. Minearl Rule 15 No waste is generated during last year 2013-14 as entire RoM produced from the mine is utilised in cement making. The dolomite and high magnessia limestone generated as sub grade which is used for cement manufacturing by blending with high grade limestone. None at present nor it is required since entire quantity of ROM is utilised for cement manufacturing at their cement plant. Percentage of recovery of ore pitwise w.r.t. ROM and total material Number of benches in ore and waste. Sub/grd mineral/fines (Rule16) 08 Benches in Limestone,08 benches of gray shale & 04 benches of High magnesia limestone. Qty of yearly generation and total qty available during inspection with grade Number and size of each stack Location of stacking. Separate stacking from waste Total area covered for stacking Not applicable Not applicable since dolomite and high magnesia limestone is generated as sub grade which is used for cement manufacturing by blending with high grade limestone. No subgrade mineral is being stacked. The dolomite and high magnessia limestone is generated as sub grade which is used for cement manufacturing by blending with high grade limestone. No geneartion of subgrade mineral hence not applicable. Not applicable as regards to area is concerned. The dolomite and high magnessia limestone is generated as sub grade which is used for cement manufacturing by blending with high grade limestone.

PAGE 7 7. Environment Management - both quantitative and qualitativ A. Land environment a. Landscape. b. Aesthetic environment c. Soil and land use pattern d. Agriculture e. Forest(flora and fauna) f. Vegetation h. Public building, places and monuments (protected, historical), placec of worship and places of tourist B Water environment. a. Surface water b. Ground water c. Quality of water C. Air environment a. Noise b. Air c. Climatic condition D. Socio economic environment a. Social and demographic profile. b. Recommending health and safety. c. Human settlement d. Recreational facility. The area is typically Himalayan terrain with undulating topography. The area is located on hillock comprising of Gagal hill which is almost surrounded by low lying area. It is vegetated with scanty shrubs, bushes and plants. Aesthetic environment is good. Soil is being used for plantation. No agriculture activity is going on within the lease area. Part of the area of about 103.02 hectares falls in forest area which is dereserved for mining. Scattered local species are grown in the area. No public buildings or monuments are situated within the vicinity of lease area. It has not been affected. The test indicate that it is potable. The present workings are much above the water table hence ground water has not been touched so far. Quality of water is potable. Noise level is monitored and results are within permissible limit. Air data is monitored and results within permissible limit. Climatic data is monitored and no significant impact on over all climatic condition is envisaged Social and demographic profile have been improved due to mining activities in the area in the form of direct and indirect employment of locals. Mostly from the neighbouting areas have been direct and indirect employed in the their unit or its ancillaries. There may not be any health and safety problem in the area due to mining activities. There is no human settlement within lease area. The company has created recreational facilities as per following 1. Company is conducting kabaddi tournament every year. 2. Company has given donation for conducting various National / State level tournament. 3. Maintainance of a sports stadium. 4. Maintainance of a basket ball sports stadium at Panjgain and an indoor statium at Bilaspur.

PAGE 8 8. Scrutiny of annual returns on cost of production, reserve, production, pit mouth value, stock, land use pattern and fixed assets. Scrutiny of the annual return of the mine for the year 2013-14 has been done mainly relating to questioned items and no major reportable shortcoming found.

PAGE 9 PART - III PERFORMANCE OF MINE OWNER (In case of lease expiring within 2 years - as per guidelines) a. Compliance of terms and conditions of lease deed. b. Compliance of the provisions of MCDR, 88 and advise given. c. Conduct with regard to adoption of safety measures and forest wealth, ecology and environment in the mining lease area. d. Whether the mine owner has carried out exploration and exploitation on the basis on surface mapping, pitting, trenching and core drilling taking in to consideration the mode of occurrences of mineral deposit. e. Whether production from mining area is commensurate with the reserves and the long term progress of utilization of mineral. f. Whether adequate investment has been made by the lessee on the development of mine on mining machinery, operational and administrative building, residential accommodation for the employees. g. Measures taken by the lessee for protection of environment and ecology. h. In case leases where the mineralisation tends to exhaust within the present period, the status of closing operation in phases and the special issues including human issues to be addressed at the time of closing of mine.

PAGE 10 PART - IV PROPOSALS FOR FURTHER ACTION FOR Indian Bureau of Mines (any issue related to CGPB, SGPB, Assistance, Consultancy, Annual Programme and studies, etc.) None at present. State Government (Illegal mining, mining dispute, infrastructure, Mineral based industry, Mineral policy, etc.) None at present. The Central Government (Infrastructure, Development, Mineral policy and Legislation, Mineral based industry, etc.) None at present. Date (DATA RAM GURJAR) Indian Bureau of Mines