PRE-FEASIBILITY REPORT for DUBNA SAKRADIHI IRON &...

THE ODISHA MINING CORPORATION LIMITED

PRE-FEASIBILITY REPORTfor

DUBNA SAKRADIHIIRON & MANGANESE MINE

(Prepared as Part of Application for Terms of Reference for EIAStudies as per Notification No. J-11013/41/2006-IA.II(I) dated 30th Dec.,

2010)

MECON LIMITEDRANCHI – 834002

INDIA

11/16/Q7FJ/EIA-EMP/2453/R-0 JAN., 2018

Pre-Feasibility ReportDubna Sakradihi Iron & Manganese Mine in Barbil and Jhumpura

tehsil, Keonjhar district, Odisha of M/s. OMC

©, 2018 MECON LIMITED,All rights reserved

ContentsPage i of i

CONTENTS

ChapterNos.

Title Page Nos.

1.0 Executive Summary 1

2.0 Introduction of the Project / Background Information 2

3.0 Project Description 6

4.0 Site Analysis 18

5.0 Planning Brief 20

6.0 Proposed Infrastructure 21

7.0 Resettlement and Rehabilitation Plan 21

8.0 Project Schedule and Cost Estimate 22

9.0 Analysis of Proposal (Final Recommendation) 22

DRAWINGSDrawing No. Title

MEC/Q7FJ/11/16/PFR/1.0 Location Plan

MEC/Q7FJ/11/16/PFR/2.0 Geological Plan

MEC/Q7FJ/11/16/PFR/3.0 Surface Plan

MEC/Q7FJ/11/16/PFR/4.0 Conceptual Plan




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1.0 EXECUTIVE SUMMARY

This Pre-Feasibility Report (PFR) has been prepared as specified in MoEF&CC’s OM no. J–11013/41/2006 – IA.II(I) dated 30th Dec., 2010; as part of the application for grant ofTerms of Reference (ToR) for carrying out Environmental Impact Assessment andEnvironmental Management (EIA/EMP) studies for Dubna-Sakradihi Iron and Manganesemine of Odisha Mining Corporation Limited (OMC).

The project envisages re-opening of Dubna-Sakradihi Iron and Manganese mine with Ironore production of 3 MTPA & Manganese ore production to 0.05 MTPA. The project area isspread over approximately 1332.079 hectare (ha).

In pursuance of Government of India policy vide Environment (Protection) Act, 1986 newprojects or expansion of any existing project necessitates statutory prior EnvironmentalClearance in accordance with the objectives of National Environmental Policy as approvedby the Union Cabinet on 18th May, 2006 and MoEFCC’s EIA Notification dated 14.09.2006by preparing a EIA/EMP report. As part of the process of scoping for the EnvironmentalImpact Assessment and Environmental Management Plan (EIA/EMP) studies, the projectproponent has to submit an application to MoEF&CC through online submission in theprescribed format (Form I) along with a Pre-Feasibility Report (PFR).

This report contains information on the proposed project. The report including thisexecutive summary 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 Land use Existing infrastructure




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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)

2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION

The salient features of the project include:

Proposal Iron ore production to 3 MTPA & Mn ore production to 0.05 MTPA.Location of Mine Barbil and Jhumpura Tehsil in Keonjhar district of Odisha state.Latitude 21048’37.35634” to 21051’52.01868” NLongitude 85022’17.8389” to 85024’26.47792” ELand Use The mine lease area of Dubna Sakradihi Iron & Manganese lease is

1332.019 ha, comprising of 1243.270 ha of forest land and 88.279ha of non-forest land.

Total MineableReserves(Mt)

Iron: 20.022 million tonnesMn: 0.837 million tonnes

Life of Mine Iron : 5 years & Mn: 14 years (approx.)Method ofMining

Fully mechanized opencast mining method with formation ofbenches by drilling and blasting

Deposits Iron Ore: Deposit-1,2,3,4,5,6,7,8 and Patch-IIMn Ore: Deposit-1C_1E, 4,5,6B,8

Stripping Ratio,(Waste:Ore)(m3 : t)

Iron ore: 0.40; Mn Ore: 3.17

Waste disposal 16.67 Mm3 waste will be generated from iron ore quarries uptoconceptual stage. Entire waste (14.67 Mm3) after 2020 shall bebackfilled into quarries. 18.68 Mm3 waste will be generated frommanganese ore quarries upto conceptual stage. Entire waste(17.96 Mm3) after 2020 shall be backfilled in quarry void.

MineralProcessing

Iron Ore: Crushing Unit (1 nos.) of 100 TPH & screening Unit (2+1nos.) of 300 & 100 TPH respectively (10% of ROM);Mn Ore: only manual sizing and shorting

MineralTransport

90% ROM (iron ore) produced from the quarry will be transportedby 35t dumpers. Mn ore from stackyard will be transported




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outbound from the ML by long term buyers.Number ofworking days

300 days/ year

FuelConsumption

HSD: 750 kl/year; Oil/Lubes: 75 kl/year

ExplosiveConsumption(t/year)

IRON ORE QUARRIES MANGANESE QUARRIESROM WASTE ROM WASTE283.28 151.11 14.43 61.99

Water Demand Average water requirement at Dubna Sakradihi Iron & Mn lease fordomestic and industrial use are to the tune of 148 m3/day and 69m3/day respectively. Peak water requirement at Dubna SakradihiIron & Mn lease for domestic and industrial use are to the tune of159 m3/day and 148 m3/day, respectively.

Source of water Potable water through bore well: Avg. 148 m3/day (peak 159m3/day)Industrial water : Avg. 69 m3/day (peak 148 m3/day) Jalpa Nala

Man Power The mine shall employ 599 persons. All the unskilled workers, mostof the semiskilled workers and a significant number of skilledworkers will be local villagers or from nearby towns. Out of totalmanpower, about 401 shall be through contracting.

ElectricityDemand

At present 1100 KW power is drawn from 33 kV line from Jodasubstation of Grid Corporation of India. Additional power shall bedrawn from the same source, if required.

Infrastructure Since the mine was operational till April 2006 most of theinfrastructure required for the project are already available in themine such as office, magazine, roads, canteen, roads, townshipetc. In case need arises, construction will be done as perrequirement.

ProposedInvestment

Rs. 91452 lakhs

Production Cost Rs. 1238 / tonne (avg. cost of production over a period of 14 years)

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

Odisha Mining Corporation Limited (OMC) was jointly established by the Union and StateGovernments in 1956 as the first state Public Sector Unit (PSU) in mining sector in thecountry for exploration, exploitation and marketing of minerals. In the year 1962, OMCbecame wholly owned by the State Government. Odisha Mining Corporation Ltd. has beenclassified as a “Gold” Category State PSU.

OMC holds / operates 35 mining leases consisting of 11 iron ore leases, 3 manganese oreleases, 5 iron & manganese ore leases, 11 chromite leases, 1 limestone lease and 4gemstone (semi-precious ruby / corundum) leases only in Odisha state. The majorminerals mined by OMC are chrome, iron and manganese ore which cater to therequirement of mineral based industries such as steel, sponge iron, pig iron, ferro-




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manganese, ferro-chrome etc. At the present rate, OMC is producing about 10% of totaliron ore production and about 30% of the total chrome ore production of the state.

The project envisages re-opening of Dubna-Sakradihi Iron and Manganese mine with Ironore production of 3 MTPA & Manganese ore production to 0.05 MTPA. The project area isspread over approximately 1332.079 hectare (ha). The estimated project cost is Rs.91452 lakhs. Life of the mine under the present proposal is 5 years (Iron ore) and 14years (Manganese ore) approx.

2.2 BRIEF INFORMATION OF THE PROJECT

Dubna Sakradihi Iron & Manganese Ore Lease of M/s OMC Ltd. is located in Barbil andJhumpura tehsil of Keonjhar Dist., Odisha. Lease deed for Dubna lease was executed on08.09.1971 for a lease area of 1135.419 ha for a period of 20 years. Deed for Sakradihilease was executed on 28.12.1959 over a lease area of 564.55 ha 30 years. Out of thetotal 564.55 ha lease area of Sakradihi iron lease, 367.95 ha area was overlapping withDubna lease, therefore it was included in the Dubna manganese lease area of 1135.419ha. After above inclusion, revised lease area of Dubna lease was 1135.419 ha andSakradihi lease was 196.60 ha.

Since the revised lease of Sakradihi leasehold and the Dubna leasehold are adjoiningleases and form a compact block, the lessee M/s OMC Ltd filed an application foramalgamation of both the leases under Rule 38 of MCR 1960. Govt. of Orissa vide theirletter No IV (A) SM - 62/05 dt. 18.02.2006 has issued the permission for amalgamation oftwo mining leases over 196.60 ha in village Sakradihi and over 1135.419 ha in villageDubna for the terminus period with the lease which will expire first as per the provisionsunder rule-38 of MCR 1960. Total lease area of Dubna Sakradihi Iron & Manganese orelease after amalgamation is 1332.019 ha. The period of 1st RML for amalgamated leasewas w.e.f 28.12.1989. Application for renewal of amalgamated lease w.e.f 28.12.2009 foranother 20 years has been made by OMC Ltd. As per Rule 3 (2) of Mineral (Mining byGovernment Company) Rules, 2015 the lease is deemed to be valid till 28.12.2029.

Mining operation at Dubna Sakradihi Lease was stopped since April 2006 due to want ofstatutory clearances i.e. forest and environment clearances. Lessee has already submittedforest diversion proposal covering entire forest land. Application for renewal of consent tooperate upto 2015-16 has been made to the state pollution control board, Odisha underthe Air & Water (Prevent & Control of Pollution) Act.

Earlier surface right over an area of 1135.419 ha was granted for Dubna Lease vide orderno. 1015/M dated 11.10.1972. Surface right over an area of 499.7868 ha was granted forSakradihi Lease vide order no. IX (4)60(M)/204/Keonjhargarh dated 22.01.1960. Out ofabove, part of the sakradihi lease was overlapping with Dubna Lease accordinglyoverlapping area of lease was included in Dubna lease. Thus at present, leasee hassurface right over an area of 1332.019 Ha.

The MoEFCC has granted Temporary Working Permission over already broken up forestarea of 253.229 ha vide letter no. F.No.8-135/2006-FC dated 16th July 2008 after a jointsurvey by the State Authorities.




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Modified Mining Plan submitted under Rule 17(3) of Minerals (Other than Atomic andHydro Carbons Energy Minerals) Concession Rules, 2016 along with Progressive MineClosure Plan (PMCP) prepared under rule 23 of MCDR 2017 for a period from 01.04.2015to 31.03.2020 has been approved by IBM vide letter No. MPM/FM/18-ORI-BHU/2017-18dated 15/11/2017. The project comes under Category-A as per EIA notification – 2006,Amendment Nov.-2009 & April -2011 of the Ministry of Environment, Forest and ClimateChange (MoEF&CC), New Delhi.

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 majorcentres for manufacture of iron and steel. Several industries have come up in the statefor 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 theState.

Opening of closed Dubna Sikradihi Mine will have the following benefits:

shall increase the supply of iron for India’s domestic steel producers, especiallythose in Odisha.

shall add to revenue generation of the District / State. shall generate additional employment, both direct and indirect which will lead to

economic growth. shall provide, school buildings, bus shelters, medical facilities and other amenities

to local villages under the company’s community development programme. 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 crude steel production is ~97.44 Mt/yr in 2016-17. Since it takes~1.6 t of iron ore to produce 1t of steel, India’s demand for iron ore is ~155.90Mt/yr. India is one of the major producers and exporters of high grade iron ore.Consumption of finished steel grew by 2.6% in 2016-17 whereas production grewby 8.5% over previous financial year.

In 2016-17, India’s iron ore production was 155.90 Mt whereas export was 5.44Mt. The major iron ore producing states are Odisha, Jharkhand, Chhattisgarh,Karnataka and Goa. India is world’s 3rd largest iron ore exporter after Australiaand Brazil. All major steel producers in India are implementing their growth plansto enhance hot metal production capacity. The iron ore requirement is expectedto increase to about 500 Mt/yr by 2025. In order to meet enhanced requirementof iron ore, all iron ore producers are taking necessary action to expand theirexisting mines. Iron ore production capacity will be enhanced to meet theexpanded requirement in the next 3-4 years time.

The major application of manganese ore in India is for manufacture of silico-manganese (66%) and ferro-manganese (26%), which are used for manufactureof steel. Manganese ore is also used as direct feed to blast-furnaces of integrated




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steel plants (5%) and kilns of sponge iron plants (2%). The balance isconsumed by the non-ferrous metallurgical industries, chemical industries, glassindustries etc.

Manganese ore production in FY16 was assessed at 2 Mt against 2.24 Mt in FY15,registering a fall of over 10%. The export of manganese ore in FY 16 was 0.44Mt.

The Mining Industry has witnessed continuous modernization and adoption ofneed of technology in recent years for the excavation of mineral like manganeseand iron ores. Manganese and iron ores raw materials demand has been on anupsurge in India due to high demand in Steel Industry.

2.5 IMPORT VS INDIGENOUS PRODUCTION

India produces a surplus of iron ore. In 2016-17, India’s iron ore production was155.90 Mt of which 8.245 Mt (i.e. about 9.95%) was exported. With China’sslowdown, much of manganese ore export was diverted towards India andoffered at very attractive prices. This led to imports becoming cheaper amidample supply of the material.

2.6 EXPORT POSSIBILITIES

Iron and manganese ore produced from this project will be sold directly to thelong term buyers.

2.7 DOMESTIC / EXPORT MARKET

The iron ore are used in the iron & steel industry. They are basic raw materialsrequired for manufacturing of iron and steel. India is one of the major producersof iron ore, most of which is consumed domestically.

Manganese ore is used mostly in the iron & steel industry. It is a basic rawmaterial required for manufacturing of various grades of steel. India is a netimporter of manganese ore. The ore produced from this project, will contributetowards reducing imports.

2.8 EMPLOYMENT GENERATION

Re-opening of the mine shall provide an opportunity of continuing directemployment for 599 persons (Mining plan report) and indirect employment of2000 persons.

3.0 PROJECT DESCRIPTION

It has been planned to enhance the production capacity of iron ore to 3.0 MTPAand Manganese to 0.05 MTPA.

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.-2009 & April-2011 of the Ministry of Environment, Forest andClimate Change, New Delhi.




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3.2 LOCATION

Dubna Sakradihi Iron & Manganese Lease of M/s Odisha Mining Corporation Limited(OMC Ltd.) is located between latitude 21048'37.35634"N to 21051'52.01868"N &longitude 85022'17.83890"E to 85024'26.47792"E and is covered by survey of Indiatoposheet no. 73 G/5. The lease is spread over the villages viz. Handibhanga, Jampani,Badakalimati, Dubna, Purunadihi, Naibaga, Basantapur, Pedipokhari & Naibaga R.F inBarbil and Jhumpura Tehsils of keonjhar, Odisha. The location of the project is shown inDrg. No. MEC/Q7FJ/11/16/PFR/1.0.

3.3 DETAILS OF ALTERNATE SITE

Since the proposed project envisages re-opening of an existing (closed) mine,possibility of alternate site is not relevant.

3.4 SIZE AND MAGNITUDE OF OPERATION

It is planned to re-open the closed mine with production capacity of iron ore to 3MTPA and Manganese to 0.05 MTPA.

Crushing and screening facilities and material handling facilities will be installedcommensurate with the ROM production of iron ore.

No crushing & screening facility has been envisaged for Manganese ore. Onlymanual sizing and shorting of Manganese ore will be carried out.

3.5 MINE DESCRIPTION

3.5.1 GeologyRegional Geology:

The region comprising Keonjhar and Sundergarh districts of Odisha and the adjoiningSinghbhum district of Jharkhand has attracted the attention of several geologists, sinceJones (1934) mapped the area and included the rocks of volcanic sedimentary belt known asBonai-Keonjhar-Singhbhum belt in the Iron Ore series. The Precambrian rocks of this regionis comprising of Basic Lava, Tuff, Banded Iron Formation, Shale, Conglomerates andSandstone etc. were mapped for the first time by Jones (1934). This has subsequently beenmodified by several other workers like Dunn (1940), Murthy and Acharya (1975) and Saha &Sarkar (1978). However, the stratigraphic succession proposed by Murthy & Acharya is themost acceptable succession till date, which has been amply substantiated by GeologicalMapping over a large area followed by core and DTH drilling. The following broadstratigraphic succession has been worked out for this belt.

Kolhan Group Sandstone, Conglomerate and Shale

------------------------------------------------Unconformity------------------------------------------

Iron Ore Group

Mixed Facies FormationUpper Shale FormationBanded Iron FormationLower Shale (Variegated)Volcanic Formation




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Basal Sandstone

------------------------------------------------Unconformity------------------------------------------

Singhbhum Granite and Gneiss with EnclavesAnd rafts of metasedimentary and metabasicrocks

Recent studies by S. Acharya and his co-workers have indicated manganese mineralization inlower shales below BIF, possibly of syngenetic origin. They have indicated the followingstratigraphic sequence.

Upper Shale (White and Buff Coloured, Pink, Ferruginous)BIF with all its varients

Lower shale (Variegated, Banded manganiferous, Ferruginous, tuffaceous)

However, the genesis of most of the manganese ore occurrence in this belt is attributed tosecondary enrichment. The host rock of iron ore deposits are Banded Iron Formation mainlycomprising of BHJ, BHQ and shale.

Regional Structure

The volcanic sedimentary pilc occurring to the west of Singhbhum granite is folded in to amajor-low-north –plunging synclinorium (slightly overturned to the east) which is manifestedin the spectacular U – shaped closure facing south in Bonai. The complementaryanticlinorium’s lies to the cast of major synclinorium in which the lavas are exposed.

Superposed on the N-S trending first fold are cross folds having E-W axial planes. Theresultant interference pattern of the folds led to the development of irregular ‘basin’ and‘dome’ structure on all scales in the Bonai-Keonjhar belt west.

Local Geology

Based on the extensive detailed geological mapping over the terrain on surface exposures,quarry cutting observation and a closly spaced core drilling, the following stratigraphicsequence is inferred for the manganese and iron ore deposits of the leasehold area.

Recent Deposit AlluviumLaterite

Banded Iron Formation (BIF) BHJ, BHQ with iron ore deposits

Mixed facies formation Ferruginous shale and variegatedshale with Mn ore and Black Wad

Banded Shale Formation Pink-White, Grey-White Bandedshale

The surface geological plan of the ML area is shown in Drg. No.MEC/Q7FJ/11/16/PFR/2.0.




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Lithology

The dominant litho-units perceptible in the field outcrops, quarry cuttings and DTH/core drillinputs in the Dubna Sakradihi area are Laterite, Lateritic Iron Ore, Conga, Hematite IronOre, BHJ, BHQ, BHC, Chert, variegated shale and Banded Shale.

Iron ore depositsIron ore deposit of Dubna Sakradihi lease is a stratified bedded type deposit of regularnature. The Southernmost part of the ML area is dominated by iron ore deposit. Most of thedeposit exhibits good quality ore, considered to be highly potential. The details of thedeposit are given below.

Deposit-1This deposit occupies the top of the hill (702 mRL) lying in the central part of the lease. Theore body shows a variation of strike from NNW to NNE with a gentle dip of 25º to 40ºtowards east. The DTH drilling undertaken in the deposit, exhibits occurrence of ore up to adepth of 40.00 m. The range of Fe in this deposit varies from 62.41 to 67.99%. Few floatworkings exist in this deposit, which are abandoned since long.

Deposit-2 (Quarry-3)It is highly potential deposit situated in the South-West of Deposit-I in a spur on the Easternslope of Rangapahar. The deposit stretches over a strike length of about 650 m and a widthof 350 m. The ore body is represented by a folded body which is evident from the attitudeshowing NNW to NNS and again to NNW observed from North to South. The dip is easterlyvarying from 22º to 35º at places. The exploration by way of core drilling at regular spacedinterval covering the entire deposit indicates a substantial quantity of Hard Massive Ore(HMO) with a significant quantity of Soft Laminated Ore (SLO), followed by Powdery Ore(Blue Dust) and Lateritic Ore.

Deposit-3The deposit is located towards the South of Deposit-II along the eastern slope ofRangapahar. The deposit stretches in North-South direction over a strike length of 500 mwith an average width of 350 m. Topographically, it occupies the lower elevation withrespect to the Deposit 2. DTH drilling followed by core drilling has been undertaken in thedeposit to assess the quality and quantity of ore. Soft Laminated ore, blue dust and hardsponge grade ore are predominantly contained in the deposit.

Deposit-4The deposit 4 is located in the east of the Deposit-3 at an altitude of 632 mRL and stretchesover an area of 250 m x 40 m. The ore body strikes in NW-SE direction with an easterly dipof 25° to 35°.

Deposit-5 & 6Both the deposits are located in the South-Central part of the leasehold on the top of hillockbetween Deposit-1& 4. The ore body strikes N20ºE - S20ºW and shows a synclinal structurewith the dip being westerly in the eastern part and easterly in western part of the deposit.Soft laminated and powdery ore are predominant in Deposit-5 whereas, lateritic and sub-grade ore are observed in deposit -6.




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Deposit-7 (Jogibana)This deposit is situated adjacent to the eastern boundary of the lease hold area near Dubnacamp. Sub-grade ore with soft friable powdery ore (SLO) are available in this area.

Deposit-8 (Quarry-8)This is an incredibly potential deposit situated adjacent to the southern boundary of theleasehold area consisting of quarry 8. Hard Massive ore is exposed in the surface and thickfloat ore occurrence is also observed in this potential area towards north of the quarry-8manganese quarry. The area was developed based on surface exposures. DTH drillingfollowed by core drilling carried out in this deposit indicates availability of abundant hard andsoft nature of ore in the deposit.

Patch-II (Quarry-4)This deposit seems to be a potential one situated in the North-East of Quarry-4 manganesedeposit. Observing vast stretches of iron ore floats in the deposit, exploration by means ofDTH has been undertaken in the area and the results obtained are encouraging.

Manganese DepositsMn deposit of Dubna Sakradihi lease is a stratified bedded lense type deposit of irregularnature. Six different deposits have been delineated earlier based on the surface findings anda sporadically placed drill holes over the lease hold area. All these deposits are mainlyoccupying the Northern part of the lease. The Central and Southern part of the lease areaare dominated by iron ore formation which was earlier under Sakradihi lease beforeamalgamation of Dubna-Sakradihi ML. Apart from the six deposits, another two manganeseore patches have been identified in the South-Western flank of Deposit 2 and Eastern flankof Deposit-8 of Iron Ore deposits, which are named as Gopalsanda and Quarry-8 manganesequarries.

Deposit-1The deposit is located due west of Dubna village in which float manganese ore occurs in theNorth-Eastern hill slopes of Dubna main hill. Several abandoned quarries like 1-C, 1-D and 1-E are mined out in this deposit. It is a lean zone authenticated by few numbers of drillholes and banded shale is exposed in the foot wall of 1-C quarry. The deposit has beenworked earlier and the float ore has also been mined out. The deposit has been leftabandoned due to exposure of banded shale at the bottom.

Deposit-2This deposit is located at a distance of about 1.5Km due South-West of Dubna village anddue South of Dubna main hill. Manganese ore occurs in the spur of the hill outcropping onboth sides of the stream for about 650 Mtrs and is locally known as Champa-Sondha deposit.The Quarry-2 located in the deposit, has also been mined out and left abandoned due toexposure of banded shale at the bottom of the quarry.

Deposit-3This deposit is located in the northern side of the Deposit-1 on a gently sloping hill, wherethe part of the area is covered by the waste materials after proving the deposit as barren.The Quarries located in the deposit are 3A, 3B and 3C have been mined out and leftabandoned due to exposed of banded shale at the bottom.




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Deposit-4The deposit is located in the NNW of Churisahi village and occupies the valley of the dry nalawhich flows South-Easterly. Manganese ore occurs in association with chert, Ferruginousshale and Manganiferous shale. Banded shale is exposed in the footwall near the nala inQuarry No. 4B. The other quarries in the deposit are 4A, 4C and 4D.

Deposit-5This deposit is located to the South-East of Jampani village and occupies the hill top andNorthern slope of the hill. Geologically, this is a potential block and has been divided in to 4blocks namely A, B, C & D. The Block-A containing Quarry A1 & A2 has already been minedout for manganese ore and left abandoned. The north-west side of the quarry wall is wellexposed to wad formation whereas, at the bottom of the quarry pink-white banded shale,which is considered as a marker horizon for devoid of manganese ore is explosed. TheBlock-B consists of Quarry-5B having Mn ore prominently exposed in the deposit. The Block–C encompasses the 5C quarry, which is also having remarkable quantity of mixed grade ofMn ore. The Block D is considered to be very lean zone of Mn ore occurrences. The strikeextension of Deposit-5 is about 750 m and having a width of 250 m.

Deposit-6This is an inconspicuous cluster of shallow manganese ore bodies occurring along thewestern hill slope located at about 600 m west of Deposit-4. The isolated lenticels ofmanganese ore occurs over a strike length of approximately 170 m along the westernboundary of the leasehold. The 6A & 6B quarries are located in this area as small lenticularpockets. Wad is also noticed in the drill holes at the bottom all along the deposit.

Deposit-8The Quarry 8 comes under this deposit, which is situated at extreme southern boundary ofthe lease. The quarry has been abandoned due to exposure of pink-white and yellow shaleat the bottom.

GopalsandaThis deposit has been located in the South-West of iron ore Deposit-II (Quarry-3). It is apocket deposit with a low to medium grade of manganese ore. The deposit has been provendevoid of manganese due to presence of multi colored banded shale exposed in the valleyportion of the deposit.

3.5.2 Mineral Reserves:

Summary of the category wise reserves /resources for iron ore as per approved ModifiedScheme of Mining is given below:

(as on 30.06.2017)Reserves Resources

UNFCCategory

Reserve,Milliontonne

Fe% UNFCCategory

Reserve,Milliontonne

Fe%

111 0.000 0.00 211 0.000 +45%121 20.022 62.17 221 2.769 +45%

334 4.338 +45%Total 20.022 62.17 Total 7.107 +45%




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Grand Total 27.129 Million Tonnes

A summary of updated reserves/resource for manganese ore as per UNFC Category is givenbelow:

(as on 30.06.2017)

Reserves Resources

UNFC CategoryReserve,Milliontonne

Mn% UNFCCategory

Resource,Milliontonne

Mn%

111 0.000 0.00% 211 0.0000 0%121 0.837 28.81 221 0.309 +10%

Total 0.837 28.81 Total 0.309 +10%Grand Total 1.146 Million Tonnes

3.5.3 Mining:

Mining Method

The deposit was being worked by opencast mining method prior to discontinuance ofoperation in April 2006.

Bench Configuration

Presently height of bench is varying from 3-6 m whereas, width of bench has beenmaintained at 6-12 m. Bench slope angle varies from 300 – 680. Approach road to differentdeposits of the lease has been maintained at 1 in 16 gradient.

Drilling & Blasting

As stated above in clause 2.2 that the mine is not operational since April 2006. Prior todiscontinuance, deep hole drilling & blasting was used to break the Ore & waste. Manualshorting of Mn ore was carried out for segregation. Drilling was being carried out using 115mm dia. Drill machines with 2.5-3.0 m burden & 3 - 3.5 m spacing. Holes were chargedwith ANFO/slurry explosives and initiated using electric detonator/detonating fuse.

The following equipment will be deployed in the mine:

Parameters HEMM Fleet

Excavator, 2.5 – 3 cu.m 7Excavator, 0.9-2.0 cu.m 8Loader, 1.5 – 2.0 cu.m 2Dumper , 35 t 9Tippers. 25 t 15Wagon Drill, 115 mm 2Drill, 150 mm 4




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Parameters HEMM Fleet

Dozer,410HP 3Grader,125KW 2Explosive van 1Service van 1Pick up van 2Water sprinkler (28 kl) 3Water tanker (12 kl) 1Diesel browser 2Tyre Handler 2Portable lights for face lighting 15Tractor with compressor 3Cranes,5t 2Cranes, 15 t 2Rock breaker 1

Considering 20.022 Million tonnes of probable category (UNFC Code 121) reserves of ironore, the expected life of the iron ore mine with rated capacity of 3 MTPA after proposed planperiod will be about 5 years. However, considering 0.837 Million tonnes of probable category(UNFC Code 121) reserves of Mn ore, the expected life of Mn ore mine with rated capacity of0.05 MTPA after proposed plan period will be about 14 years.

Material containing 45-58% Fe has been considered as subgrade for iron ore whereas, Mnore containing 10-25% Mn has been considered as Mn subgrade. A total of 0.917 millionones of subgrade of iron and 0.051 Mt subgrade of Mn will be generated upto conceptualstage.

A part of the mined out pit will be backfilled in the ultimate stage with the mine waste wherenon persistence of ore has been proved. However, prior permission will be taken from IBMbefore commencement of the backfilling operations. Keeping into consideration the drainagepattern of the area and the prior knowledge of the areas which are supposed to be backfilledat a later stage, adequate length of parapet walls/ garland drains & settling tanks will bedesigned.

On the basis of available exploration data, the resource model of the deposit has beencreated in a mine planning software - Surpac. A safety barrier of 7.5 m & 10 m width allalong inside the lease area and village roads has been kept as per the provisions of thestatutes respectively.

The ultimate pit configuration may change depending upon the outcome of exploration infuture. The ROM ore produced will be screened & sized to produce the lumps & finesfractions within the lease. Entire wastes generated from the Dubna Sakradihi Iron & Mnlease will be dumped partly in waste dumps & will also be backfilled in the voids createdduring mining. The existing surface plan is shown in Drg. No.




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MEC/Q7FJ/11/16/PFR/3.0 and conceptual plan at the end of work (under presentproposal) is shown in Drg. No. MEC/Q7FJ/11/16/PFR/4.0.

3.5.4 Mineral Processing:

Existing Facilities

Presently no crushing & screening facility is available at the mines.

Proposed Crushing & Screening Plant for Iron Ore

2 nos. of screens at deposit 2, 3 and deposit 8 has been proposed in the FY 2017-18along with a centralised crushing plant. +200mm size material i.e. approx. 10% ofROM will be fed to crusher directly from the mines. Balance 90% ROM from mine willbe transported by 35t dumpers to the dump hopper of respective screening unit.Oversize of screens (+40 mm) will be fed to a centralized crushing plant. Product ofcrusher will be fed to a screen. -40+10 mm size of screens will be carried to the CLOstockpile. -10mm size materials from screens will be conveyed to fines stockpiles and+40 mm size of screens will be re-circulated to the crusher. The CLO & fines generatedafter screening the crushed product will be loaded by loader and transported throughtippers to the respective stockyard. Ore from stackyard will be loaded to tippers of longterm buyers and will be despatched outbound from the lease by long term buyers.

A tentative flow sheet of the proposed crushing and screening plant is given below:

Proposed Crushing and Screening Facilities for Iron Ore

Crushing & Screening Facilities for Manganese Ore

No crushing & screening facility has been envisaged for Manganese ore quarries. Mn ROMproduced from mines will be transported to nearby stackyard where manual sizing andsorting of Mn Ore will be carried out. Stacks of different grades of Mn ore will be maintained




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at the stackyard and ore from different stacks will be blended as per the quality requirementof long term buyers. Ore from stackyard will be loaded to tippers of long term buyers andwill be despatched outbound from the lease by long term buyers.

3.5.5 Mineral Transport

Prior to closure, during operation of the mine; blasted material were loaded into 10t capacitytippers using 0.9 m3 which in turn was transported to mobile crushing & screening unit forfurther size reduction & screening. Manual labours are also being deployed for sorting &sizing of Mn ore and iron ore lump to +5-18 mm, +10-40 mm CLO apart from other ancillarypurposes. Waste excavated was hauled from working benches to waste dump located closeto respective pits by 10t tippers. The same arrangement shall be followed after re-openingof the mine.

3.6 Raw Materials

The only raw materials consumed in the project are fuel (HSD) and explosives. The fuelconsumption in the mine operating at full capacity is estimated to be 750 kl/yr (approx.).The expected explosive consumption (in t/year) for iron and manganese ore is given below.

IRON ORE QUARRIES MANGANESE QUARRIESROM WASTE ROM WASTE

283.28 151.11 14.43 61.99

The supply of explosive will be outsourced to external agency.

3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE

About 100 m3/day of waste water from the mine’s canteen and rest-room will bereused for irrigating the green belt after necessary treatment. In addition to thatabout 18 m3/day of water required for drilling & dust suppression shall be metthrough reused water from workshop vehicle washing and service area.

OMC has developed centralized work-shop, stores, medical unit at its DubnaSakradihi lease for its mines in the region also. Township has already beendeveloped having all the amenities.

3.8 SITE SERVICES

3.8.1Water Requirement

Average water requirement at Dubna Sakradihi Iron & Mn lease for domestic andindustrial use are to the tune of 148m3/day and 69m3/day respectively. Peak waterrequirement at Dubna Sakradihi Iron & Mn lease for domestic and industrial use areto the tune of 159m3/day and 148m3/day, respectively. Water balance chartindicating source, consumption & extent of recycling is given below:




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Figure within [ ] corresponds to daily demand in peak season. [ ] values are indicated onlywhen peak demand is different than average demand; Otherwise daily demand in peakseason and average daily demand should be taken as equal.

3.8.2Power Requirement

At present 1100 kw power is drawn from 33 kV line from Joda substation of GridCorporation of India. The same source shall be used after re-opening of the mineeven if additional power shall be required.

3.8.3Amenities

The mine has a site office. All the statutory facilities such as crèche, canteen, first-aid centre, vocational training centre etc. will be provided. To take care of thedrinking water needs at different working areas, water tankers have been envisagedfor the mine. The rest shed-cum-lunch room have been provided near quarry site asper Mines Rules-56. First–aid facilities and toilet are attached to the rest shed.Portable blasting shed of one end open type have been provided at the mine site forgiving protection to the blasters during blasting.

3.9 SUBGRADE

Material containing 45-58% Fe has been considered as subgrade for iron orewhereas, Mn ore containing 10-25% Mn has been considered as Mn subgrade. A

Source Consumption

Borewell148 [159]

Drinking & domesticSource: 148 [159]

Drilling & spraying

Source: 45 [74]

discharge

Equipment/vehicleWashing

Recycled: 18

Source: 24 [24]

DevelopmentGreen Belt

Source: 0 [50]

dischargeRecycled: 100

RecycledQuantity

Consumption: 335 [425] +Fire fighting = 60

Recycled quantity:118

Discharge: 0Source:148 +69 [307]

Discharge

Discharge:18

Jalpa Nala:69 [148]

Discharge:100

Discharge:100




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total of 0.917 million tonnes of subgrade of iron and 0.051 million tonnes subgradeof Mn will be generated till conceptual stage.

Sub grade generation from iron ore quarries

Year Deposit/Quarry SubgradeGeneration, Mt Average Fe%

2017-18to

2019-20

Deposit 2 0.05 50.51Deposit 3 0.12 50.80Deposit 8 0.12 51.49Total 0.29 51.03

2020to

Conceptual

Deposit 1 0.07 50.14Deposit 2 0.03 50.46Deposit 3 0.32 50.69Deposit 4 0.11 51.02Deposit 5 0.02 51.99Deposit 6 0.03 51.53Deposit 6N 0.44 49.82Deposit 7 0.00 0.00Deposit 8 0.39 51.39Patch- II 0.30 50.29Total 1.71 50.58Grand Total 2.01 50.65

Year-wise generation of subgrade from Manganese ore quarries is given below.

Sub grade generation from Mn ore quarries

Year Deposit/Quarry SubgradeGeneration, Mt Average Mn%

2017-18to

2019-20

Deposit 5 Top 0.05 17.77Deposit 6B 0.06 18.33Total 0.11 18.09

2020to

Conceptual

Deposit IC_IE 0.03 17.80Deposit 5 Top 0.19 17.25Deposit 6B 0.06 18.17Deposit 8 0.0011 20.05Total 0.28 17.53Grand Total 0.39 17.69

Entire subgrade generated during the life of mine will be blended with high grade ore andtherefore, separate stacking of subgrade is not envisaged under present proposal.

3.10 WASTES

Disposal of Waste from Iron Ore Quarries

A total of 16.67 Mm3 waste will be generated from iron ore quarries of Dubna Sakradihi Iron& Mn Lease upto conceptual stage. Out of which, 2.0 Mm3 waste will be generated duringthe ensuing plan period upto 2020. Entire generated waste has been planned to be dumped




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in waste dumps WD1, WD2 and WD3. Entire balance waste of iron ore quarries i.e. 14.67Mm3 generated from year 2020 to conceptual stage has been proposed to be backfilled inthe earmarked areas viz. backfill-1 to backfill-5. Year-wise waste generation from iron orequarries upto end of mine life is given below.

Year Deposit/Quarry Waste Generation,Mcu. m

2017-18 to 2019-20Deposit 2 0.50Deposit 3 0.63Deposit 8 0.87

Total upto FY 2019-20 2.00

2020 to Conceptual

Deposit 1 0.40Deposit 2 2.05Deposit 3 3.03Deposit 4 0.62Deposit 5 0.96Deposit 6 0.42

Deposit 6N 0.28Deposit 7 0.12Deposit 8 5.16Patch- II 1.63

Total from FY 2020 toConceptual 14.67Grand Total 16.67

4.0 SITE ANALYSIS

4.1 CONNECTIVITY

The lease area is connected with Joda town at a distance of 25 km through a Stateroad which runs via Banspani. The State road meets NH-215 linking Rourkela andPanikoili from where district Headquarter Keonjhar is at a distance of 80 km.Nearest railway station is at Nayagarh (on Padapahar-Barajamda-Gua branch line ofSouth Eastern railway) which is at a distance of 5 km towards North. The nearestrailway station serviced by passenger train is Barbil (on Southeastern railway’sBarajamda-Bolani branch line) which is at 30 km distance towards North.

4.2 LAND FORM, LAND USE, OWNERSHIP

The mine lease area comprises of Reserve Forest and Protected Reserve Forest inKeonjhar District, Odisha. The land ownership is as follows:

Forest Area, ha Non Forest Area, haReserve Forest 773.336 Waste Land 26.667Protected Forest Nil Grazing Land 0.001Village Forest 28.992 Agriculture Land 50.567Others (HAL/SABIK) 38.199 Others i.e. Hutments, Community,

Water way etc. (Specify) 11.044Other (DLC Forest) 402.743Sub Total 1243.270 Sub Total 88.279




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Source: DGPS survey report; Note: As per DGPS survey report, total ML area comes to1331.549 ha, whereas as the ML area as per lease deed is 1332.079 ha;

4.3 TOPOGRAPHY

The ML area displays an undulated topography with hillocks and valleys. Themaximum elevation of the area is 900.3 m AMSL located towards south-west of thearea whereas minimum elevation is 510 m AMSL on the north-east of the lease holdarea. The ML area is drained by several seasonal drainage channels which drain intoa perennial stream Jalpa Nadi. The Jalpa Nadi flows from west to east and at southeast it joins the Baitarani River, which flows from south to north, 4.5 km east of thelease area. Besides Jalpa Nadi there are 2 more perennial streams viz. Dalaki Nalaand Ghagra Nala which are flowing from west to east, south of the lease area tojoin the Baitarani River.

4.4 LAND USE

The lease area is located partly in Reserve Forest Land (773.336 ha) and partly invillage forest, others (HAL/SABIK), & other (DLC forest) total 469.934 ha. Theexisting land use pattern in the lease is as follows:

Sl. No. Particulars ExistingLand-use

Land use atthe end of2019-20

ConceptualLand use

1 Excavated Area 242.5577 260.6765 1045.45802 Subgrade dump 0.0000 0.0000 0.00003 Waste dump 14.8060 35.3141 78.59634 Mineral Storage 4.2724 4.2453 108.0274

5Infrastructure (Township,Workshop, administrative Building,first aid room, substations, WB. etc)

3.3891 3.3891 3.3305

6 Roads & Railways 9.2687 9.2074 3.77017 Mineral Processing 0.0000 5.0000 5.0000

Total 274.2939 317.8324 1244.18238 Statutory barrier 33.7227 33.7227 33.72279 Green Belt 0.0000 1.1827 1.182710 Others 1024.0024 979.2812 52.9313

Grand Total 1332.0190 1332.0190 1332.0190

4.5 EXISTING INFRASTRUCTURE

Since the mine was operational upto April 2006, infrastructure facilities such asoffice, magazine, roads, canteen, roads etc. are available in the mine. The servicing& repairing shop facilities have also been provided at the lease. Township and guesthouse is located inside the lease where mine’s personnel will be accommodated. Allthe statutory facilities such as crèche, canteen, first-aid centre, vocational trainingcentre etc have been provided. To take care of the drinking water needs at different




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working areas, water tankers have been envisaged for the mine. The rest shed-cum-Lunch rooms have been provided near quarry site.

4.6 SOIL CLASSIFICATION

The soil is lateritic, typical of the area. Thickness of the top soil varies from nil tomaximum of 60 cm. The average thickness is 20 cm. No top soil will be generatedduring the year 2017-18 to 2019-20.

4.7 CLIMATE

The study area lies in tropical region where climate is characterized by very hotsummers and cool winters. Summer is typically from March to June when monthlytemperature ranges from a maximum of 42°C during daytime to a minimum of 15°Cat night. Winter is from November to February when the maximum temperatureduring day goes up to 37° C and minimum temperature at night becomes as low as8°C. Average annual rainfall in the area is of the order of 1269.1 mm. TheSouthwest monsoon lasts from mid June to mid September and the area gets morethan 80% of the annual rainfall during this period. Relative humidity varies from20%-89%.

4.8 SOCIAL INFRASTRUCTURE AVAILABLE

OMC’s township located inside the lease has all necessary amenities.

5.0 PLANNING BRIEF

5.1 PLANNING CONCEPT

The proposed project envisages re-opening of an existing open cast mine having MLarea of 1332.019 ha. Mining operation at Dubna Sakradihi Lease was stopped sinceApril 2006 due to want of statutory clearances viz. environmental and forestryclearances. Modified Mining Plan submitted under Rule 17(3) of Minerals (Otherthan Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 alongwith progressive mine closure plan for a period from 01.04.2015 to 31.03.2020 hasalready been approved by IBM. The basic infrastructure required for resumingoperations are already in place. Once the necessary clearances are obtained therated capacity of the mine will be 3.0 MTPA for iron ore and 0.05 MTPA forManganese ore. Crushing and screening facilities and material handling facilities willbe installed commensurate with the increased ROM production for iron ore quarries.No crushing & screening facility has been envisaged for Manganese ore quarries. MnROM produced from mines will be transported to nearby stackyard where manualsizing and shorting of Mn Ore will be carried out.

5.2 ASSESSMENT OF INFRASTRUCTURE DEMAND

Most of the basic infrastructure required for re-opening of the mine is already inplace. However, to cope up with the proposed capacity of 3.0 MTPA for Iron ore and0.05 MTPA for Manganese ore adequate infrastructure shall be envisaged, ifrequired. Under the present proposal, crushing and screening for iron ore has beenproposed. No crushing and screening facilities has been envisaged for manganeseore and same will be manually sorted and stacked.




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Out of the total manpower of about 599 persons, most of the unskilled andsemiskilled workers will be local villagers. The rest comprising of the officers,supervisors, some of the office staff, skilled and semiskilled workers may come fromoutside. These people will be provided accommodation in the existing townshipinside the lease which have all amenities. If required, necessary augmentation ofexisting infrastructure shall be done.

5.3 AMENITIES / FACILITIES

OMC will construct or augment the required requisite facilities like canteen, restshelters and blasting sheds which already exist with the area to meet the additionalrequirement.

6.0 PROPOSED INFRASTRUCTURE

Since the mine was operational upto April 2006, infrastructure facilities such asoffice, magazine, roads, canteen, roads etc. are already available in the mine. Inaddition crushing & screening facilities has been proposed for iron ore and requisiteinfrastructure will be constructed to commensurate enhanced production.

Green Belt & Plantations: The backfilled area will be rehabilitated upto theconceptual period by adequate plantation at the rate of 2500 trees per hectare so asto avoid any wash off. Total area covered under waste dumps and mineral stacking& processing will be afforestated by plantation. Mine roads will be afforested andother roads within the lease will be used for public transport facilities. Plantation willalso be carried out in 7.5 m statutory barrier. A total of 1.1827 ha area has beenproposed for green belt plantation.

Thus, at the post mining stage the area will have partly backfilled mined out voidssurrounded from all the sides by plantation and dense avenue plantation.

CSR Activities: Activities will be taken up by OMC under its CSR Programme are asfollows: 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 Setting up of solar powered street lights in villages Construction of roads & Financial Assistance for improvement of

infrastructure Setting up of community toilets Material assistance for village festivals, cultural events and sports activities




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7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN :

The project does not envisage any leasing or acquisition of private land. Hence R&Rplan is not applicable under the present proposal.

8.0 PROJECT SCHEDULE & COST ESTIMATE

8.1 Likely Date of Start of Construction and likely date of completion

It has been envisaged that Dubna Sakradihi mine of OMC shall attain its ratedcapacity to 3.0 MTPA of iron ore from FY 2020-21 and 0.05 MTPA of manganese orein FY 2018-19. However the proposed schedule is subject to receipt of all statutoryclearances required for the proposed capacity.

8.2 Estimated Project Cost Along and Economic Viability of the Project

The estimated project cost will be Rs. 91452 lakhs. The estimated average cost ofproduction of OMC including will be ~ ₹ 1238 per tonne.

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

The project will have the following benefits: increase the supply of iron for the domestic steel industry. 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: aims to fulfill additional direct or indirect employment to the local population of

the area. 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 withfinancial resources instead of going for heavy interest debts.

Considering the above mentioned points the envisaged project will fetch additionalbenefits and uplift the socio-economic condition of local villagers apart fromgenerating additional revenue for state.

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