Pre-Feasibility Report of

Magnasite and Dunite MinesLOCATION OF THE MINESS.F.NO.527/B1Pungandurai village,Dharapuram taluk,Tirupur District,Extent: 3.63.5 Hec ( less than 5 Hec )Category: B2 PROJECTLESSEEA.S.Shankar GanesanS/O R.Swaminathan22-A,Kumar nagar south, 3rd street,Tiruppur District-641603

1. EXECUTIVE SUMMARY

Sankaran Minerals and Mines, owned by Mr. A.S. Shankar Ganesan of Tiruppur, has got amining lease for twenty years ( 20 Years ) to mine magnesite and dunite over an area of 3.63.5Hectares in SF No. 527/B1 of Patta land of Pungandurai village, Dharapuram Taluk, of Tiruppurdistrict. ( Previously Erode District ). The lease-hold area of 3.63.5 Ha is owned by Mr. A.S.Sankar Ganesan and therefore he has surface rights. The project site, located at a distance of 23Km south-south-east of Kangeyam, 20 Km north of Dharapuram and 10 Km southeast of Udiyurfalls in A2 quadrant of Survey of India Toposheet No. 58 F/9.

The area around the mine site for a considerable distance is part of a vast pediplain with aboutone to two metres soil cover of oxysol type, underlain by hard to very hard rocks of Proterozoicage. Entire area is a dry, vacant land. The area receives meagre annual rainfall of about 600 -700 mm only and rain dependent, single crop, dry land agriculture is practiced by the localpopulation. Mine site is a small mound ( 252 ) of about 10 m height in relation to the adjascentland. Depth to ground water varies between 10 m in rainy season to about 20 - 25 m in summer.Irrigation tanks are almost totally absent in the entire area.

The small mound mentioned above is made up of ultramafic rocks like peridotite, dunite andpyroxenite which had intruded the older hornblende biotite gneiss . The ultramafic rocks weredeformed and magnesite occurs as thin impersistent veins, stringers, patches and disseminationswithin those rocks. Magnesite had formed as a result of alteration of ultramafic rocks. All therocks and magnesite veins were later intruded by quartz and pegmatite veins. All rock types areof Proterozoic age.

As Mr. A.S. Sankar Ganesan owns the 3.63.5 Hectares in SF No. 527/B1 of Patta land ofPungandurai village and thus has surface rights, magnesite, dunite, peridotite and pyroxenitewere observed to be present in his land, he had applied to The Commisioner of Geology andMining, Government of Tamilnadu on 19.02.2008 requesting for grant of mining lease in hisfavour for mining magnesite and dunite. He also had applied to the Controller of Mines ( SouthZone ), Indian Bureau of Mines ( IBM ), Bangalore - 560 022 for approval of Mining Plan.

The Mining Plan was approved by IBM vide its Letter No.TN/ERD/ MP/Mg - 1719. MDSdated 01.04,2009. Mining Lease was granted for a period of 20 years by the Government OfTamilnadu vide Pro.Rc.No.16127/MM3/2008 dated 09/06/2009 of the Commissioner of Geologyand Mining, Chennai - 600 032. Lease Deed was executred on 22nd September, 2009 and themine was opened on 23.01.2010 an d is functioning since then. Magnesite recovery is about 4% and dunite recovery is about 40 %. Remaining 56 % is mineral waste and is stored in thedump site .

SALIENT FEATURES OF THE PROJECTS

SL.NO PARTICULAR DETAILS1 Name of the company Sankaran Minerals and Mines2 Type of Project Magnasite And Dunite3 Location of the Mines S.F.No : 527/B1 Pungandurai village, Dharapuram (TK),Tiruppur District, Tamilnadu State.4 Mining lease Area 3.63.5Hec5 Latitude 11º51'30"N6 Longitude 77º34'45"E7 Topo sheet No 58 F/98 Type of landPatta/Forest/PWD It is a patta land, vide Patta No: 9259 Production Capacity Proved reserves of Magnesite and dunite upto a depth of 10

metres ( 1 m to 11 M ) --- 260006 tonnesLocked up in safety zones , benches (Resources ) --- 162688tonnesAlready removed upto March, 2014 --- 4157 tonnes10 Life of Mines Mining Lease period is 20 Years11 Method of Mining Mining operation is proposed to be carried out bymanual opencast method & proposed benches are 2.5mheight and 5m width with 60º slope.12 Ultimate depth ofmining The Mining operation is proposed up to depth for 11m(max)

13 Top Soil overburden(Quantity in m³)

The generation of over burden is about 4157Ts.14 Ground Water Level The depth of water table is around 60mts (80m duringsummer and 60m during rainy season)15 Nearest habitation Udhiyur 10kms16 Nearest Town Kangayam 25kms

17 Nearest Railway station Erode 70kms18 Nearest Airport Coimbatore 110kms19 Nearest NationalHighways & StateHighwaysKarur-Coimbatore bye pass 25kmCoimbatore- salem bye pass 45km

20 Nearest Hospital Kambiliyampatti 5kms21 Aerial distance to thenearest Eco sensitiveareas, CRZ, Forest, Wildlife, Sanctuary,Interstate boundary,critically polluted areaif the mine site is within500m of these areas.

More than 500m from Eco sensitive areas, CRZ, forest,wild life sanctuary, Interstate boundary, criticallypolluted area.

22 Details of other minesfor a radius of 500maround the mine site Adjoined south 3.63.5hec magnasite and Dunite minelease Mrs. Baladevi23 Man Power 20 nos24 Water Requirement &source Total water requirement for 1OKLD from watervendors & existing bore well25 Cost of the Project The project costA. Fixed Asset cost = Rs 3,25,000B. Operational cost = Rs 6,50,000C. EMP cost = Rs 85,000Total Project Cost = Rs 10,60,000

2.0 INTRODUCTION OF THE PROJECT OR BACK GROUND INFORMATION

( I ) Identification of project and project proponent, in case of mining project, a copy ofmining lease/letter of intent should be given

Identification of project

Name of the project pungandurai magnasite & Dunite

Lease area 3.63.5 Hec ( patta land ) – non forest

Sf.no. 527/B1 pungandurai village, Dharapuram Taluk.

Location Tiruppur District and Tamilnadu state.

Topo sheet no. 58F/9

Project Proponent Name with Address

A.S.Shankar Ganesan,

22-A kumar nagar south, 3rd street,

Tiruppur-641603

Mobile no. 9842831533

Email id. Shankarmagnasite @yahoo.coo.in

In case of mining project a copy of mining lease/ letter of intent should be give

1 The mining lease was granted under proceedings No.RC.NO.16127/MM3/2008 dt09.06.2009

2 The scheme of mining plan was approved by the Regional Controller of Mines, IndianBureau of Mines, Chennai vide Letter no.TN/ERD/MP/MG-1719-MDS,Dated 01.04.2009

ii) Brief description of Nature of the Project: It is a semi mechanised , open castmining project to win magnesite and dunite. The produce is sold after manual sorting. Noother beneficiation and product mix is carried out. Water requirement for drinking purposesis met through ground water by means of hand pumps. Transport of material is throughtrucks .

Proved reserves of Magnesite and dunite upto a depth of 10 metres ( 1 m to 11 M ) ---260006 tonnesLocked up in safety zones , benches (Resources ) --- 162688 tonnes

Already removed upto March, 2014 --- 4157 tonnes

iii) Need for the Project and its importance to the country and or region :

Demand for magnesite in India is increasing year after year. magnesite is used inbasic refractories making , defence, aero space, pharmaceuticals, ceramics, rubber, textiles,sorol cement, glass industries and in animal feed. As per IBM Mineral year Book, 2015published in 2017, Thrust for development of infra structure projects and housing projectsneed more magnesite and dunite is needed in iron and steel mills as a flux. Almost theentire production in India comes from mainly three states viz; Tamilnadu (78 % ),Uttarakhand ( 19 %) and Karnataka ( 3 % ). Demand - Supply gap is increasing.Therefore more mines for these minerals / rock are needed. Production from new mines andcapacity addition in existing mines will reduce the demand - supply gap and also saveforeign exchange. Also, more mines will provide direct and indirect employment to thepeople in the area. Thus , the present project will be of use in augmenting the indigenoussupply of magnesite and provide employment to people.

iv ) Demand - Supply Gap

Production of magnesite in India cannot meet the full demand. Indigenous productionvaries between 45 % and 75 % of total consumption for the three years period from 2012 -13 to 2014 - 15 as reported by IBM in its Mineral Year Book 2015. Thus demand - supplygap ranges from 25 % to 55 %. Increased production from existing and new mines in Indiacan reduce this gap and benefit the nation.

v) Imports vs. Indigenous Production

Import and Indigenous production of magnesite for two years 2013 - 14 and 2014 - 15as per IBM Year book for 2015are as below.

YEAR 2013 - 2014 2014 - 2015------------------------------ ------------------------------ ------------------------------ -------------

IMPORT 66,000 102,077

INDIGENOUS PRODUCTION 196,940 275,678 ALLFIGURES ,in TONNES

TOTAL CONSUMPTION 342,600 364,600------------------------------ ------------------------------ ------------------------------ --------

vi ) Export Possibility

At present, demand exceeds supply and scope for export is nil or very limited. IBM reportsays that " The consumption of magnesite in the organised sector has increased because ofhigher consumption reported by ferro alloys industry. The apparent domestic demand ofmagnesite is estimated at 6,22,000 tonnes by 2016-17 at 9% growth rate as per the report ofthe Sub Group, Planning Commission of India". A comparision of the projected domesticdemand of 622,000 tonnes by 2016 - 17 against likely indigenous production of about300,000 - 350,000 tonnes reveals that export possibility will be difficult.

Presently India exported 6,118 tonnes in 2013 -14 and and 6,612 tonnes 2014 - 15 toMalaysia, UAE, Thailand and Saudi Arabia mainly and to a few other countries.

vii ) Domestic / Export markets

Magnesite is required by various industries in India as tabulated below for three years from2012 - 13 to 2014 - 15

Consumption* of Magnesite 2012-13 to 2014-15 (By Industries) (Intonnes)

Industry 2012-13 2013-14(P) 2014-15(E)

All Industries 490100 342600 364600Calcination 367300 (9) 251600 (9) 270900 (9)Chemicals ++(2) --- 2300 (2) 2300 (2)Ferro-alloys 8600 (11) 7200 (11) 9900 (11)Foundry 1000 (5) 1000 (5) 1000 (5)Iron & Steel 20200 (7) 20200 (7) 20200 (7)Paper 1800 (1) 1800 (1) 1800 (1)Refractories 2 90800 (9) 58100 (9) 58100 (9)Others 400 (8) 400 (8) 400 (9)

Imports are mainly from China, Australia, Turkey, Ireland and Japan,Figures in parentheses denote the number of units in organised sector.

India exports very limited tonnage of magnesite mainly to Malaysia, Thailand, UAE andNetherland. It is exported in limited quantity of few hundred to few tens tonnes to a numberof other countries.

viii ) Employment Generation (Direct and Indirect ) due to the project

A maximum of twenty (20) labourers are employed in the project each day and the numbermay vary as per the demand for magnesite and dunite . They are engaged to sort outmagnesite and dunite grade-wise and size-wise. The labourers are from villages nearby andare engaged during day time only. Indirect employment include tractor and JCB drivers*****. ( Pl. Fill Up )

3. Project Description

(I) Type of project including interlinked and interdependent projects, if any.

The project is a Stand - Alone, open cast mine type carrying out only mining ofmagnesite and dunite which are manually sorted out grade-wise and size-wise and then soldout to customers. Project does not carry out calcination and other beneficiation methods formagnesite . Therefore this mine, functioning since February, 2010 is neither interlinked norinterdependent with any other project, anywhere..

(ii) Location ( Map showing general location, specific location and project boundary& project site layout ) with coordinates.

The mine site, falls in A 2 quadrant of Survey of India Toposheet No 58 F/9. Itslatitude is 11* 51' 30" N and Longitude is 77* 34' 45" N. Map showing the details isenclosed.The mine project extends over an area of 3.63.5 hectare Patta land under SF.No527/B1of Pungandurai village, Dharapuram taluk, Tiruppur district, Tamilnadu. It is about23 km south-south-east (SSE) of Kangeyam, 20 km northeast (NE) of dharapuram, and 8km km east-south-east (ESE) of Udiyur on the Kangeyam - Dharapuram road. Nearestrailway station is at Tirupur, the district Headquarters at a distance of about 55 km andnearest airport is at Coimbatore.

LOCATION MAP OF THE PROJECT AREA WITH CO ORDINATES

(iii) Details of alternate sites considered and the basis of selecting the proposed site,particularly the environmental considerations gone into should be highlighted.

NO alternate sites were considered The Chosen site falling in the general location andspecific location mentioned above is owned by the present lessee since ****.. It was found outthat the site was containing magnesite veins, floats, stringers and disseminations in the ultramaficrocks such as peridotite, dunite, pyroxenite etc. It was learnt that demand for magnese anddunite is always there, the present lessee had applied to the Government of Tamilnadu on19.02.2008. for grant of mining lease for mining magnesite and dunite. He had also applied tothe Indian Bureau of Mines ( IBM ), South Zone, Bangalore on 01.04.2009 for Approval ofMining Plan.

IBM had approved the mining plan vide their mining plan approval letter No.TN/ERP/MP/MG-- 1719 -- MDS dated 01.04.2009..The Commissioner of Geology and MIning ,Government of Tamilnadu, had granted Mining Lease for a period of twenty (20 ) years vide Pro.Rc.No. 16127/MM3/2008/dated 09.06.2009. Mine was opened on 23.01.2010. The mine isfunctioning since then and mines magnesite and dunite for the past 6 - 7years.'Various environmental considerations that favoured the present site for mining magnesite anddunite are given below..

1. It was decided from the beginning to operate the mine as a " Stand Alone " open castmine with the objective of mining magnesite and dunite and the mined material were to bemanually sorted out, grade - wise and size -wise. and sell them as such. There was, therefore, noscope for any polluting and contaminating agents to degrade the environment.

2. The mine site and the surrounding area for tens of kilometres is a vast pediplain with poorsoil development of about 1 - 2 m thick and underlain by impervious hard rocks of Proterozoicage. . In view of these, water percolation to deeper level is minimal and consequently,contamination of ground water is ruled out.

3. The present mine site , surrounding areas and the entire district receives an average annualrainfall of about 600 mm ( 60 Cm ), received mainly during monsoons. Number of rainy daysin a year are very low. As a result, surface drainage development is very poor .Even firstorder streams are rare. Low rainfall, poor development of surface drainage, presence of hard rockat shallow depth ensure that soil and water contamination will be very minimal. water

4. The mine site is not situated in the vicinity of any village. It is located at about 8 km ( 10-11 km by road ) ESE of Udiyur, about 2 km south of Pungandurai and 0.6 km north ofMantittupalayam. Mining is carried out by deploying one JCB and tractors for hauling theminerals and rock to the surface from mine. As a result, the villages are free from noisepollution.

5. Low rainfall, poor soil development and hard rocks just below the surface have resultedin rainfed, dry land cultivation of a single crop. almost over the entire area. Therefore,agricultural productivity is low.

6. The mine site is a small mound of about 10 m height above the surrounding ground, dryvacant land with barren rock surfaces over the entire length and width of 500m and 300 mrespectively. Hence the mound was never used for agriculture or house sites in the past. In

view of those constraints, the site would fall under Class VII or Class VIII of Land capabilityClasses developed by the USDA.

7. Although the site is located deep within, accessibility is quite easy as a number all -weather metalled roads are present. and one such road passes near the mine. Therefore,transporting the produce from the mine to the industries does not face any problem .

(iv) Size or magnitude of operation

It is a small mine of 3.63.5 hectares extent and recovery percent of magnesite is 4%,of saleable dunite 40% and waste constitutes 56%. Being a semi- mechanised , open castmine and sorting is carried out manually, production is limited as shown below.

Years Annual Production ofmagnesite 4% Dunite Waste

--------------------------------------------------------------------------------------------------------------------

2009 - 10 7102010 - 11 19382011 - 12 12072012 - 13

9 All figures intonnes.

2013 - 14 2932014 - 152015 - 162016 - 17

---------------------------------------------------------------------------------------------------------------------Please furnish the data for dunite and waste for 2009 -10 to 2016 - 17 , For magnesite from2014 - 15 to 2016 - 2017.delete this line.afterwards.

A maximum of 20 labourers are engaged daily . It may vary as per demand formagnesite / dunite ferom clients. One Office Assistant, one JCB operator and ** *** tractordriver are engaged. (Give the numbers as desired by you).

Recalculated Proved Reserves for 10 m depth ( 1 - 11m ) ------ 260006 tonnes

Resource (Lock up in safety zone &m Benches ) ------ 162688tonnes

Presuming the demand for magnesite and dunite will continue as at present, theresource will last for very many years. Demand for magnesite is expected to increase manyfold as per Planning Commission estimates, In such a situation the mine can produce morequantity.

(v) Project description with process detailss ( a Schematic diagram / flow chart showing theproject layout, components of the projects etc should be given)

Objective of the mine is to produce magnesite and dunite . Various process involved inrealising the objective included are

1) Site Preparation - Cleaning the mine area, levelling the land , construction of road frommine to public road for transportation of material and men

2) Removal of over burden and development of mine

3) Breaking the rock by JCB

4) Manual sorting of magnesite and dunite and hauling it up by tractors and stocking as perbuyers' requirement

5) Despatching material to the client by trucks.

Necessary flow chart is enclosed.

vi) Raw material required along with estimated quantity, likely source, marketing areaof final product/s, mode of transport of raw material and finished product.

Present project does not require any raw materal. It mines magnesite which is used asraw material in refractoy, rceramic, glass, paper, defence, pharmaceuticals and some otherindustries. and dunite is used in steel mills as a flux. Mined products are sold to any of the listedindustries / organization. The sold material is sent by trucks to the place as indicated by thebuyer.

(vii) Resource optimization / recycling and reuse envisaged in the project, if any ,shouldbe briefly outlined.

Resource optimization is envisaged in the project by a) blending high grade materialwith low grade to arrive at preferred average grade, b ) collection and storing of even under sizematerials and c} soil enriched with magnesite powder is proposed to be used in sandy soil toimprove their mg and fe concentration and also in the reclamation of acidic soil.

(viii) Availability of water, its source, energy / power requirement and source should begiven

Water is needed for drinking purposes and dust suppression. As the mine functionsonly during day time and a maximum of 20 labourers are engaged per day, 200 - 250 litresof water is required for drinking purposes. No one lives in the mine after closure of day's work .Water is drawn from a Panchayat board hand pump, tapping ground water, available by roadside for use by the people. Since water is required in limited quantity and is easily available nearthe mine site , power / energy is not required , For suppression of mine dust, about 750 - 1000litres of water is required/ day, whenever mining is carried out. This quantum of water is drawnfrom a borehole in the mine area by installing a 10 HP diesel engine pump.

(ix) Quantity of wastes to be generated (liquid and solid )and scheme for their management/ disposal

Magnesite and saleable dunite are the two produce the mine sells after manual sorting bygrade and size. No other beneficiation is carried out. So no liquid waste is generated . Solidwaste includes unmarketable ultramafic and other rocks mined out. They are stored in the dumpsite as per the mining plan approved by IBM. As the mine was started only about seven yearsback, back filling of mined areas are not carried out at present, but will be done so within the timeframe.

( x ) Schematic representations of the feasibility drawing which give information of EIApurpose.

The Schematic representations of the feasibility drawing is enclosed .

4.Site Analysis

(1) Connectivity

The project site is easily accessible from Kangeyam and Dharapuram through Udiyur bymeans of all weather metal road SH- ****. Tiruppur is the nearest Railway junction / stationlocated about 100 km away. Nearest air port is in Coimbatore, about 100 km northwest of thesite..

(ii) Land Form, Land Use and Land Ownership

The site is a small mound of 10 m height above the surrounding area and is 252 m abovemean sea level. It is about 500 m long and 300 m wide. Barren rock exposures and rubbles arecharacteristic of the site. The site was neither used for agriculture nor for habitation at anypoint of time in the past. Present land use is open cast mining site. Land ownership is held byMr. A.S. Shankar Ganesan of Tiruppur, the Lessee, who had been granted Mining Lease for 20years beginning from 23rd January, 2010.

(III) Topography ( along with map )

Topographically, the site is a positive relief feature of about 10 m higher than thesurrounding area, defining a small mound. Drainage is absent within the site area. Three slopeelements are present, steeper one at the top part and gentler one in the lower part where it mergeswith the pediplain. The mound occurs within a vast pediplain of gently rolling topography,extending for tens of kilometres all around. The pediplain generally slopes towards southeast.

(iv) Existing land use pattern ( agriculture, non-agriculture , forest, water bodies,( includingarea under CRZ ), shortest distances from the periphery of the project to pheriphery of theforests, national park, wild life sanctuary, eco sensitive areas, water bodies ( distance from theHFL of the river), CRZ. In case of notified industrial area , a copy of the notification should begiven.

Existing land use pattern is open cast mining. Shortest distance from the project siteto forest periphery, national park, wild life sanctuary, eco sensitive areas and CRZ is about 100km and more. No water bodies such as lakes, irrigation tanks, ponds, are present in the area.However, river Amaravathi flows east and south of the site. Shortest distance to RiverAmaravathi is 2.5 km east of the mine site. Two minor ephemeral streams, namely VarattuKarai in the south and Nelali Karai in the north, are present.. Varattu Karai stream is only 8 kmlong and located 0.75 km towards south. Nelali karai originates from south east of Palladam andis at a distance of 8.00 km to the north.of the site. these streams remain dry for a larger part ofthe year and channel is calcreted at places due to semi aridity.

(V) Existing Infra structure

. One office shed only

(vi) Soil Classification

Oxisol(vii) Climatic data from Secondary source Hot and dry, tropical climate

Average Annual rainfall ---- 600 mm ; Wind direction - Sw, NE and E;Wind Speed - 8.0 km to a maximum of about 30 km;

Relative Humidity ----- 50% to 62%

(viii) Social Infrastructure available - Small mine. Not Applicable

Periodical Medical checkup program for all the workers and first aid box with necessary equipmentwill be provided.

Training for workers regarding occupational hazards.

Safety equipment like dust mask, shoes, gloves, helmet etc.,

(ix) Proposed Infrastructure

(i). Industrial Area ( Processing area)

There is no industrial or processing area proposed within the lease area.

(ii). Residential area (non processing area)

Local person will be given priority for employment. Few houses are situated within theradius of 500m.

(iii). Green Belt

Eastern side boundary 10 neem plants covering approximate 200m.

Estimated project cost along with, analysis in terms of economic viability of the project

A. Fixed Asset Cost

Land cost = Rs. 2,25,000

Labour shed = Rs. 50,000

Sanitary Facilities = Rs. 50,000

Total cost = Rs. 3,25,000

B. Operational cost

Machineries cost - Rent

Mineral Stock cost = Rs. 5,50,000

Drinking water facility for the labours = Rs. 50,000

Safty kits = Rs. 50,000

Total cost = Rs. 6,50,000

C.EMP cost

Afforestation cost = Rs. 10,000

Water Sprinkling cost = Rs. 25,000

Cost towards Charity = Rs. 50,000

Total cost = Rs. 85,000

The Project cost

A. Fixed Asset Cost = Rs. 3,25,000

B. Operational cost = Rs. 6,50,000

C.EMP cost = Rs. 85,000

Total Project cost = Rs. 10,60,000

§ The total project cost including EMP cost ( A+B+C ) is about Rs 10,60,000/ ( Rupees TenLakhs Sixty Thousand only )

The total EMP cost is about Rs 85000/ ( Rupees Eighty Five Thousand only )