PRE-FEASIBILITY REPORT - environmentclearance.nic.inenvironmentclearance.nic.in/writereaddata/Online/TOR/0_0_10_Apr... · THE ODISHA MINING CORPORATION LIMITED . PRE-FEASIBILITY REPORT

THE ODISHA MINING CORPORATION LIMITED

PRE-FEASIBILITY REPORT FOR

PROPOSED EXPANSION OF

KURMITAR IRON ORE MINING PROJECT

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

2010)

MECON LIMITED RANCHI – 834002

INDIA

11.S2.2015.EE2192 March, 2015

Pre-Feasibility Report Expansion of Kurmitar Iron Ore Mining Project

CONTENTS

Chapter Nos.

Title Page Nos.

Executive Summary 1

1 Introduction 4

2 Introduction of the Project / Background Information 5

3 Project Description 8

4 Site Analysis 15

5 Planning Brief 16

6 Proposed Infrastructure 18

7 Resettlement and Rehabilitation Plan 18

8 Project Schedule and Cost Estimate 18

9 Analysis of Proposal (Final Recommendation) 19

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.S2.2015.EE 2192) Contents Page i of iii


DRAWINGS

Draw ing No. Title

MEC/Q77B/11/S2/T1 Mine lease area superimposed on toposheet

MEC/Q77B/11/S2/T2 Geological Plan

MEC/Q77B/11/S2/T3 Surface Plan

MEC/Q77B/11/S2/T4 Conceptual Plan

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.S2.2015.EE 2192) Contents Page ii of iii


ABBREVIATIONS

AMSL Above Mean Sea Level

ANFO Ammonium Nitrate Fuel Oil mixture

BHJ Banded Hematite Jasper

BHQ Banded Hematite Quartz

CSR Corporate Social Responsibility

DGMS Directorate General of Mines Safety

EIA Environmental Impact Assessment

EMP Environmental Management Plan

Fe Iron

ha hectare

HEMM Heavy Earth Moving Machinery

HSD High Speed Diesel

IMD India Meteorological Department

l litre

hr hour

m3 Cubic Metres

ML Mining Lease

Mn Manganese

MoEF Ministry of Environment and Forests, Govt. Of India

Mt Million tonnes

t / yr Tonnes per year

OB Overburden

OMDC Orissa Mineral Development Company Limited

PF Protected Forest

R & R Rehabilitation and Resettlement

RF Reserved Forest

RINL Rashtriya Ispat Nigam Limited

t tonnes

ToR Terms of Reference

TPH Tonnes per hour

UNFC United Nations Framework Classification

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.S2.2015.EE 2192) Contents Page iii of iii


EXECUTIVE SUMMARY

Kurmitar iron ore mining lease is owned by Odisha Mining Corporation Limited (OMC) and is located in Barsuan block & Bonai sub-division of Sundargarh district in Odisha. The mine lease is spread over villages: Tilkuda, Uskuda, Sareikala and Kurmitar Reserve Forest. Kurmitar iron ore mine is one of the old operating mines of OMC. The lease deed was executed on 29.04.1965 for a period of 20 years which expired on 28.04.1985. Application for further renewal of the lease for a period of 20 years w.e.f. 29.04.1985 was made on 06.07.1984 for a lease area of 1212.47 ha. Application for 2nd renewal of the lease for a further period of 20 years was made on 26.04.1994 stating that the second renewal application submitted by OMC on 26.04.1994 to be treated as second installment of the first renewal for a period of further 10 years from 29.04.1995 to 24.04.2005. Accordingly the 2nd lease renewal application was for a period of 20 years from 29.04.2005 to 28.04.2025. The lease is under deemed renewal status. The Environment Clearance and the Stage-II Forestry Clearance for an area of 133.112 ha of mine have been accorded by Ministry of Environment, Forests and Climate Change, Govt. of India (MoEFCC) vide letter no. J-11015/1080/2007-IA.II(M) dated 02.09.2008 & vide letter no. 8-113/2000-FC(Vol-I) dated 10.04.2007 respectively. Consent to Operate has also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act, which is valid till 31.3.2016. The mining plan, for deemed renewal period, for a lease area of 1212.47 ha was approved on 10.03.2006, vide letter No.BBS/SG/Fe&Mn/MP-272 dated 10.03.2006 which was valid till 31.3.2010. But due to non-availability of Forest Clearance, the production as proposed in mining plan could not be met. So to comply the violation, a modification to the approved mining plan was prepared incorporating the achievements from 2005-06 to 2007-08 and modified proposals for the rest two years i.e. from 2008-09 to 2009-10. The said modified mining plan was approved by the Controller of Mines, IBM, Nagpur dated 25.09.2008. The scheme inside the mining plan was valid up to 31.3.2010. The scheme of mining for the period from 2010-11 to 2014-15 was approved on 06.04.2010. The modification to scheme of mining for the period from 2011-12 to 2014-15 was approved on 29th November 2010. The validity of the scheme of mining is till 31.03.2015. Earlier the lease area of Kurmitar Iron Ore lease was 1212.47 ha, out of which 561.47 ha area has been surrendered by OMC on 09.10.2013 and Final Mine Closure Plan (FMCP) for surrendered area of 561.47 ha has been approved by IBM on 22.08.2013. Thus presently the lease area of Kurmitar Iron Ore Mine is 651.0 ha. The mine is an open cast mine and comes under Category-A as per EIA notification – 2006, Amendment Nov.-2009 & April -2011 of the MoEFCC. It has three existing quarries (viz. Quarries 1, 2 & 6). The deposit is being worked by opencast mining with formation of benches by drilling and blasting. The present proposal envisages capacity expansion of existing opencast cast mine from present rated capacity of 2.4 Mt/yr to 6.0 Mt/yr with decrease in ML area from 1212.47 ha to 651.0 ha. The existing quarries will be expanded and the number of benches shall increase. Drilling and blasting is being used for hard laminated & massive ore, whereas, soft ore is directly excavated by 0.9 – 4.0 m3 capacity hydraulic excavators. The proposed height of bench is 6 m with 15 m minimum working width. Width of bench has been planned to be reduced to 6 m at the ultimate stage near lease boundary. Bank slope has been considered as 70o. Envisaged ultimate pit slope of the Kurmitar iron ore mines is 32o. Haul road has been planned at a gradient of 1 in 16. Inter bench ramp width has been considered as 8 m. The ROM will be transported to crushing and screening plants for production of calibrated lump ore (+10 to -40mm) and fines (-10mm). The waste & subgrade material generated will be transported to respective Waste Dump and Subgrade Dump. The lumps and fines generated from the processing plants will be loaded by loader of 1.5-2.0 m3 capacity & transported through 20 t tippers/ 35 t dumpers to the respective stockyards.

©, 2015 MECON LIMITED, All rights reserved Page 1 of 19


A 800 tph capacity stationary crushing and screening plant has been proposed. In addition to this, one existing 225 tph crushing and screening plant will also be maintained to meet the incidental break down and achieve the target. Moreover, a new mechanical evacuation system for fines has been planned to be commissioned. It has been decided to lay a two-line conveyor belt system each having 1000 tph capacity. The said conveying system shall be housed inside fully covered (by G.I sheet) structural steel galleries supported by steel trestles at suitable intervals. These trestles shall be supported by reinforced concrete (RCC) pedestals and foundation. The expected life of the mine is 25 years and a total of 32.10 Mm3 of wastes will be generated from entire Kurmitar iron ore mine upto conceptual stage. Present waste dump will be used for dumping the waste for initial 5 years. From year 2020 onwards waste generated from Kurmitar iron ore lease will be dumped partly in existing dump and balance waste will be backfilled in the proposed backfill areas viz. backfill 1, backfill 2, backfill 3 & backfill 4. The mine’s rated capacity shall be 6.0 Mt/yr of iron ore at an anticipated stripping ratio of 6.75 t/m3 with external dumping for the year 2015-2020 of production in the existing dump area. The ore from Kurmitar mine will increase the supply of iron to India’s domestic steel manufacturers. The project will also generate much needed employment. Majority of the people employed at the mine will be local residents. Economy of the area will get a boost and there will be overall growth of the region in terms of education, health, training and transport etc. The local people’s standard of living is also expected to improve.



The salient features of the project include:

Proposal To enhance the rated capacity of Kurmitar Iron Ore Mine from 2.4 Mt/yr. to 6.0 Mt/yr., having total ML area of 651.0 ha.

Location of Mine Villages: Sareikala, Tilkuda, Uskuda & Khandadhar Reserve Forest Taluka – Barsuan, Dist – Sundergarh, Odisha

Latitude 210 45’ 08’’ N – 21046’50’’N Longitude 850 07’56’’ E – 850 09’08’'E Land Use Reserve Forest 52.901 ha (8.13%) and Protected Reserve Forest 598.099

(91.87% ) Total Mineable Reserves 145.35 Million tonnes as on 01.10.2014 Life of Mine 25 years (@ 6.0 mtpa) Method of Mining Fully Mechanized open cast mining by conventional shovel dumper combination Quarries 3 existing working quarries in iron ore section. Quarry benches 2-16 m high & 5-53

m wide. Stripping Ratio (t:m3) 6.75 Waste disposal During 2015-2020, waste generated will be dumped into existing waste dumps.

2020 onwards, OB will be partly dumped in external dumps and partly backfilled. Sub-grade ores will be stacked externally for future use.

Mineral Processing Crushing and screening by two 800 tph crushers has been proposed for iron ore. Mineral Transport CLO and fines is transported by dumper to the stockyard which is further

transported to respective buyers. Two- line conveyor belt system (each 1000 tph line) has been planned to lay to transport the fines(-10mm) to the prospective buyers site

Number of working days 300 days, 3 shift per day Fuel Consumption Existing – 3193 kl/yr; Proposed: 5267 kl/yr Explosive Consumption Existing: 576082.44 kg/yr

Proposed: 1108758.00 kg/yr Water Demand Peak water requirement: Domestic = 25m3/day and industrial use = 175m3/day. Source of water Borewell: 25m3/day, Surface stream: 141m3/day and Recycled water: 34 m3/day. Man Power Existing: 110

Proposed: 412 (additional) Electricity Demand Proposed: 5 MW for illumination, operation of electric shovels, operation of

weighbridge, surveillance system & water pumps. Infrastructure All necessary infrastructure already exists. Also, after 2017 another line of 800 tph

stationary crushing and screening unit has been envisaged to deal with increased production. A new mechanical evacuation system for fines i.e. two-line conveyor belt system (1000 tph each line) has been planned to be commissioned by the end of year 2015-16.

Proposed Investment Rs. 14346.40 lakhs Production Cost ~ Rs.823.17 per tonne at rated capacity (iron ore) CSR Budget Total Rs. 5 lakhs for year 2014 – 15 for Financial Assistance to the District Red

Cross Society , Sundargarh



1.0 INTRODUCTION

This is Pre-Feasibility Report has been prepared as Part of the Application for Terms of Reference Environmental Impact Assessment and Environmental Management Plan (EIA/EMP) studies for the proposed capacity expansion of Kurmitar Iron Ore Mine of The Odisha Mining Corporation Limited (OMC) from 2.4 Mt/yr. to 6.0 Mt/yr. of the existing opencast mine having present lease area of 651.0 ha. (the original mine lease area was 1212.47 ha out of which 561.47 ha area has been surrendered by OMC on 09.10.2013). The lease area is located in Barsuan block & Bonai sub-division of Sundargarh district of Odisha. This report has been prepared as specified in Ministry of Environment, Forest and Climate Change (MoEFCC) Guideline No. J–11013/41/2006–IA.II(I) dated 30th Dec, 2010.

MoEFCC had accorded Environment Clearance to the mine for production of 2.4 Mt/yr of iron ore vide letter no. J-11015/1080/2007-IA.II(M) dated 02.09.2008. The stage-II Forestry Clearance of the mine has been accorded for an area of 133.112 ha by MoEFCC (FC Division) vide letter no. 8-113/2000-FC(Vol-I) dated 10.04.2007. But, as per the recent guidelines of Hon’ble Supreme Court, the mine has initiated actions for diversion of the entire forest land within the lease. Consent to operate has also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act, which is valid upto 31.03.2016.

OMC has decided to seek environmental clearance for increasing the production from Kurmitar Mine and has engaged the services of MECON Limited a Public Sector Undertaking under the Ministry of Steel, Govt. of India for necessary technical assistance. MECON’s scope of services also includes preparation of a Pre-Feasibility Report as the first step for seeking Environmental Clearance for the Kurmitar Iron Ore Mine.

The report including this introduction 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 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)

ACKNOWLEDGEMENT

MECON wishes to place on record its deep appreciation for the trust reposed in MECON by OMC and for the active interest and help extended by OMC officials.

2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION : 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT:

Odisha Mining Corporation Limited (OMC) was jointly established by the Union and State Governments in 1956 as the first state Public Sector Unit (PSU) in mining sector in the country for exploration, exploitation and marketing of minerals. In the year 1962, OMC became wholly owned by the State Government. Odisha Mining Corporation Ltd. has been classified as a “Gold” Category State PSU. OMC holds / operates 35 mining leases consisting of 11 iron ore leases, 3 manganese ore leases, 5 iron & manganese ore leases, 11 chromite leases, 1 limestone lease and 4 gemstone (semi-precious ruby / corundum) leases only in Odisha state. At present, OMC is producing about 10 % of total iron ore production of the State and about 30 % of the total chrome ore production of the State.

Kurmitar Iron Ore Mine is spread over 651.0 ha, in Barsuan block & Bonai sub-division of Sundergarh District Odisha. The lease area comprises of 52.90 ha of Reserve Forest and 598.1 ha of Protected Reserve Forest. The mine is operational under deemed renewal status. The Environment Clearance of the mine has been accorded by MoEFCC vide letter no. J-11015/1080/2007-IA.II(M) dated 02.09.2008 for a production capacity of 2.40 Mt/yr of iron ore.

Earlier the lease area of Kurmitar Iron Ore lease was 1212.47 ha, out of which 561.47 ha area has been surrendered by OMC vide letter no 9762/SM dated 09.10.2013 and Final Mine Closure Plan (FMCP) for surrendered area of 561.47 ha has been approved by IBM letter vide no. T-45010/MCP/CGBM/08, dated 22.08.2013.

The proposed rate of production is 6.0 Mt/yr of iron ore. The estimated project cost is Rs.14346.40 Lakhs. The expected life of the mine is 25 years.



2.2 BRIEF INFORMATION OF THE PROJECT

Kurmitar Mine is an open cast iron ore mine located in the Barsuan block of Bonai sub-division of Sundargarh district of Odisha. The lease area is spread over 651.0 ha, which comprises of Reserve forest and Protected Reserve forest. The lease deed has been executed on 29.04.1965 for a period of 20 years, which expired on 28.04.1985. Application for further renewal of the lease for a period of 20 years w.e.f. 29.04.1985 was made on 06.07.1984 for a lease area of 1212.47 ha. Application for 2nd renewal of the lease for a further period of 20 years was made on 26.04.1994 stating that the second renewal application submitted by OMC on 26.04.1994 to be treated as second installment of the first renewal for a period of further 10 years from 29.04.1995 to 24.04.2005. Accordingly the 2nd lease renewal application was for a period of 20 years from 29.04.2005 to 28.04.2025. The lease is under deemed renewal status.

The Environment Clearance of the mine has been accorded by MoEFCC in 2008 for production of 2.40 Mt/yr of iron ore. The Stage-II Forestry Clearance of the mine has been accorded for an area of 133.112 ha by MoEFCC (FC Division) vide letter no. 8-113/2000-FC(Vol-I) dated 10.04.2007. But, as per the recent guidelines of Hon’ble Supreme Court, the mine has initiated actions for diversion of the entire forest land within the lease. Consent to operate have also been granted by the State Pollution Control Board, Odisha under the Air & Water (Prevent & Control of Pollution) Act, which is valid upto 31.3.2016.

The mining plan for deemed renewal period for a lease area of 1212.47 ha was approved vide approval letter No.BBS/SG/Fe&Mn/MP-272 dated 10.03.2006, which was valid up to 31.3.2010. Proposals were made in the mining plan for development of the quarries to fulfill the production target expecting forest clearance in the near future. But due to non-availability of Forest Clearance the production has been confined only to three quarries. To cater to the demand of steel industries and due to high market demand of iron ore the production in these three quarries have gone beyond the proposed target of approved mining plan. (However the total production from the mine had not exceeded 2.4 Mt/yr at any stage). So, a modification to the approved mining plan was prepared incorporating the achievements from 2005-06 to 2007-08 and modified proposals for the rest two years i.e. from 2008-09 to 2009-10.The said modified mining plan was approved by the Controller of Mines, IBM, Nagpur vide letter No. 314(30/2008-MCCM (CZ)/MP-14/1050 dated 25.09.2008. The scheme inside the mining plan was valid up to 31.3.2010.

The scheme of mining for the period from 2010-11 to 2014-15 was approved vide approval letter No.314 (3/2009-MCCM (CZ)/MS-42 dated 06.04.2010. The modification to scheme of mining for the period from 2011-12 to 2014-15 was approved vide approval letter No.314 (3/2010-MCCM(CZ)/MS-30/16 dated 29th November 2010. The validity of the scheme of mining is up to 31.03.2015.

Presently the lease area of Kurmitar ore lease is 651.0 ha. Modification to the approved mining plan due to change in the lease area from 1212.47 ha to present lease area of 651 ha has been approved by IBM, Bhubaneswar vide letter no. MMP/FM/02-ORI/BHU/2014-15 dated 24.11.2014.

It is proposed to enhance the rated capacity of mine from 2.4 Mt/yr to 6.0 Mt/yr of iron ore with reduction in lease area (to 651.0 ha from 1212.47 ha). The expanded mine will produce calibrated lump ore (+10 to -40mm) and fines (-10mm) for its dispatch to various sponge iron/steel plants. The ore’s Fe content is expected to be 63 - 64%.

Peak water requirement at Kurmitar Iron Ore Mine for domestic and industrial use are 25 m3/day and 175 m3/day, respectively. Average water requirement at Kurmitar Iron Ore Mine for domestic and industrial use are 20m3/day and 114m3/day respectively. The water is drawn from surface stream (141m3/day), borewell (25m3/day) and by recycling effluents (32m3/day).



A Safety Zone has been maintained all along the lease boundary as the Green Belt.

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 major centres for manufacture of iron and steel. Several industries have come up in the state for 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 the State.

Proposed capacity expansion of Kurmitar Mine will have the following benefits: Increase the supply of iron for India’s domestic steel producers, especially those in Odisha. In addition it will add to revenue generation of the District / State. The mine will generate additional employment, both direct and indirect which will lead to economic

growth. OMC shall provide, school buildings, bus shelters, medical facilities and other amenities to local

villages under the company’s community development programme. The 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 steel production capacity is ~83 Mt/yr of which 41 Mt/yr is produced by integrated steel plants and ~18 Mt/yr is produced through the DRI-EAF route. Since it takes ~1.6 t of iron ore to produce 1 t of steel, India’s demand for iron ore is ~94.4 Mt/yr. India is one of the major producers and exporters of high grade iron ore. In 2013 - 14, India’s iron ore production was 152.06 Mt. The major iron ore producing states are Odisha, Jharkhand, Chhattisgarh, Karnataka and Goa. India is world’s 3rd largest iron ore exporter after Australia and Brazil. India’s iron ore exports were 15.13 Mt (~9.95%) in 2013 – 14.

All major steel producers in India are implementing their growth plans to enhance hot metal production capacity. The iron ore requirement is expected to increase to about 206 Mt/yr by 2016 – 17 and 500 Mt/yr by 2025. In order to meet enhanced requirement of iron ore, all iron ore producers are taking necessary action to expand their existing mines. Iron ore production capacity will be enhanced to meet the expanded requirement in the next 3-4 years time.

2.5 IMPORT VS INDIGENOUS PRODUCTION :

India produces a surplus of iron ore. In 2013 - 14, India’s iron ore production was 152.06 Mt of which 15.13 Mt (i.e. about 9.95%) was exported.

2.6 EXPORT POSSIBILITIES :

Iron ore produced from this project will be exclusively consumed in the domestic steel industry. There is no proposal for export of iron ore from this project.

2.7 DOMESTIC / EXPORT MARKET:

The iron ore are used in the iron & steel industry. They are basic raw materials required for manufacturing of iron and steel. India is one of the major producers of iron ore, most of which is consumed domestically. A minor proportion (~13.5% in 2012 – 13) is exported.



2.8 EMPLOYMENT GENERATION:

Presently Kurmitar mine employ 110 persons. The expanded mine shall employ a total of 412 persons comprising of 27 executives and 385 supervisors, office staff and workers. Most of the unskilled and semiskilled workers will be local persons. The officers, supervisors and rest of the workers will be housed in OMC’s townships, located outside the lease in the Khandadhar village.

3.0 PROJECT DESCRIPTION

It has been planned to enhance the production from 2.4 Mt/yr to 6.0 Mt/yr of the existing iron ore mining project with reduction in mine lease area. The project also envisages setting up another 800 t/hr stationary crushing and screening plant commensurate with the increased ROM production and installation of new mechanical evacuation system for fines. It has been decided to install a two- line conveyor belt system of 1000tph capacity (each line). The length of the conveyor belt will be approximately 17 Km.

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 and Climate Change, New Delhi.

3.2 LOCATION:

Kurmitar Mining Lease area is located in villages Tilkuda, Uskuda, Sareikala & Kurmitar Reserve forest in Barsuan block & Bonai sub-division of Sundargarh district of Odisha. The mining lease area falls under Toposheet No. 73 G/1 & G/2 between latitude 21045’08’’– 21046’50’’N & longitude 85007’56’’ -85009’08’'E. The location of project is shown in Drg. No. MEC/Q77B/11/S2/T1

3.3 DETAILS OF ALTERNATE SITE:

Since the proposed project envisages capacity expansion of an existing mine, possibility of alternate site is out of question.

3.4 SIZE AND MAGNITUDE OF OPERATION:

The mine is under operation with the rated capacity of 2.4 Mt/yr. The lease area is 651.0 ha. It is proposed to increase the ROM production to 6.0 Mt/yr. The rated capacity will be attained in the --th year of operation.

As mentioned above additional crushing and screening facilities and material handling facilities will be installed commensurate with the increased ROM production.

3.5 MINE DESCRIPTION 3.5.1 Geology:

Regional Geology:

OMC Ltd.’s Kurmitar Iron ore deposit forms a part of the huge iron ore deposits of Jharkhand–Odisha region. Eastern India is part of the volcano-sedimentary basins containing iron and to some extent manganese deposits of Precambrian age. Most of these banded iron-formation horizons belong to the oxide facies banded iron-formations but silicate facies banded iron-formations are also locally developed.



The Precambrian iron ore of Singhbhum–North Odisha region of eastern India occurs as part of the horse-shoe shaped broad synclinorium known as Iron Ore Group (IOG) of rocks that host most important iron ore deposits of India. The horse-shoe shaped iron ore deposits form a northerly plunging synclinorium. The iron ore deposits of economic importance occur in close association with BIF in Kumritar mining areas.

The chemical and mineralogical variations between banded iron formations and high-grade massive including blue dust varieties from this region and the implications for their origin from BIF to iron ore still remain unresolved. Controversies about the origin of banded hematite and high-grade ores appear largely due to the mono-mineralic composition of the ores.

The succession of rocks in the region is as follows. Upper Shale Banded Iron Formation (BIF) Lower Shale Volcanics

Lithology

The rock types encountered in the leasehold area are as follows:-

Soil/ (Shaly)Laterite/ Ferrugenous Shale Ferrugenous Shale / LIO/ BHJ/BHQ/ Iron Ore Floats HLO/ HMO in undigested BHJ/BHQ SLO/ Blue Dust in undigested BHJ/BHQ BHJ/BHQ Tuffaceous Shale/ BHS/ Variegated Shale Basaltic Volcanics

Soil & Shaly laterite : A part of the lease on western side close to the boundary & Northern part of the lease is covered by soil whereas, the hill ridges extending from the central part of the ML to eastern and southern parts are capped with shaly laterite. It forms the upper horizon of the succession. Laterite in this zone mostly bauxitized with enriched alumina forms the underlying shale and termed as shaly laterite. Top soil and laterite/ shaly laterite seem to be derived from underlying ferruginous shale and iron ore bearing rocks.

Ferruginous shale : The upper shale in this zone is enriched with iron content. It is cherry brown in colour. Ferruginous shale may be considered as an indication of subsurface mineralization. It is mostly found in the vicinity of lease pillar No-48, near the southern boundary and in the central of the ML in the neighbourhood of Tanki Pit.

Iron ore bearing rocks : Iron ore is associated with the following litho units and covers about 65-70% area. The rocks bearing iron ore are of various types are as follows: • Iron ore floats: Iron ore float zone is found in the foot of the mineralized hillock of Quarry-2.

The surface outcrops of such litho unit is very meager. • Lateritic Iron Ore: Lateritic iron ore in the ML is the lateritised product of hard/ soft laminated

iron ore. Thus, the same structures as found in the parent rocks could also be seen in this rock types. It is mostly in the NW quadrant of the ML area having a moderate dip towards north to NW direction. The thickness of LIO varies from 1m to 22.55 m with an average thickness of 8.40 m.

• Soft Laminated Ore (SLO): It is found in most of the quarries. It is overlain by ferruginous shale, laterite/soil and iron ore float. Considerable thickness of SLO has been encountered in the boreholes drilled in the area. The thickness of such iron ore varies from 2 m to 78.40 m.



SLO is frequently associated with blue dust. SLO is of platy & biscuity in nature and can be classified in to 10-40 mm size range invariably.

• Hard Massive Ore (HMO)/Hard Laminated Ore (HLO): Hard Massive Ore (HMO) and Hard Laminated ore (HLO) is hardly exposed in the ML area except in Qry-2 and are very meager when compared to the total ML area and to other types of ore. The exposure of this kind of ore is gradually diminishing day by day as the mining activity of such ore continues. HMO in the ML area is highly jointed and has moderate dip towards north-west direction. Two smaller in-situ HLO patches are found within the Laterised HLO exposures in the NW quadrant of the ML. the HLO blocks have moderate dip towards the directions of north. Thickness of HLO/HMO varies from 3.80 m to 43.60.

• BHJ/ BHQ: Though there is a continuous basement of BHJ/BHQ in BIF as ascertained from borehole inputs, their occurrence on the surface is not continuous and localized in several undigested smaller patches. A major portion of the mineralized block mostly in the western half (within the SLO exposures in Tanki Pit and Qry-2) is exposed with BHJ. Here, BHJ is highly jointed and traversed by secondary silica vein. Exposed BHJ patches show NW to Northerly dipping to a moderate magnitude.

• Banded Shale: This kind of shale is mapped in the southern faces of the Qry-2 and is mostly light green or brown in colour and hard in nature. Otherwise such litho unit is explored under the iron ore strata during borehole drilling and is a clear indication to devoid of mineralization in further depths. The light brown or light pinkish banded shale are sometimes found tuffaceous and named accordingly. The underlying basaltic volcanic might have generated metamorphic aureole on the overlying banded shale in its thermal zone to make it happen. It is softer and felt soapy in nature.

• Variegated shale: Variegated shale is a form the lower shale of variety in colour. It is the major exposure of the ML.

• Talkish Banded shale: This is white coloured lower shale with distinct lamina, mostly explored after BIF in depth. This shows similar character as of BHS. But, it is softer and felt soapy in comparison.

• Basaltic Volcanics: It is only exposed in the nala cuttings as mapped in the Sareikela and in the Uskuda villages. It is intersected after the banded shale in some boreholes. It is fine grained, greenish, siliceous and fracture rock without amygdoils. Fracture planes are conchoidal to subconchoidal. Though, the physical characteristics of this litho unit resemble to that of BHS (Banded Hard Shale) but its distinguished fracture and hardness makes it identified undoubtedly. Some of the core samples & exposures showed laths of feldspars indicating porphyroblastic texture.

Local Geology

Kumritar area belongs to Singhbhum– Odisha Iron Ore Craton (SOIOC) contains vast deposits of iron ore known as iron ore group (IOG) (Saha 1994). The Precambrian IOG largely contains BIF in addition to the other volcano-sedimentary rocks (~3.1–3.3Ga, Sarkar et al 1969), forming a significant portion of the Singhbhum–North Odisha Craton of eastern Indian shield (Saha et al 1984). The IOG in addition to BIF also contains other rock units like two generations of shale, tuffs that underlie or are inter-layered with BIF. High-grade hematite ore is concentrated in tabular strata-bound bodies hosted by the BIF. Several economically significant ore bodies are located in the Kumritar deposits. Since multiple generations of shale occur rhythmically as markers within the IOG, the possibility of iron ore below the BHJ cannot be ruled out.

The area forms a major part of the synclinal closure. The various structural imprints observed and recorded are in the BHJ and laminated ore. Very tight folding is very common in BHJ always



plunging N 100 E at angle varying from 100 to 700. The Nala sections clearly indicate the reversal of plunge and at places tilting towards east. ‘M’ type of folds at the trough portion is clearly marked. The above facts clearly indicate an interference pattern of multiphase deformational episode.

The primary structures such as bedding, pinch and swell are clearly seen in BHJ. The pent structures are very common in the area. Joints of three sets facilitated the BHJ to break in to blocks. The fractures are numerous and filled by secondary silica.

The structural features are also very clear in SLO. Mostly tight folding plunging towards North is clear in Qry-2. The contact of HMO/HLO with underlying shale indicates a synformal structure. The formation in the southern part of the Quarry-2 dips at 200 – 220 towards North, eastern part plunges towards NW at 100 and Northern part dipping at 200 – 280 towards south as the three sides of the Quarry-2 is exposed. The hard massive ore is highly jointed and breaks into blocks of rhombohedra shape. Three sets of joints are clearly observed. The fractures are devoid of any fillings. SLO exposed in the Tanki Pit and other places exhibit east-west strike with moderate dip of 450 to 500 towards north. A major fault runs in east west direction. The occurrence of brecciated conga along the fault is a clear evidence of such a fault.

3.5.2 Mineral Reserves:

The mineable reserves as on 01-10-2014 are as follows:

Mineable Reserves Category Reserve (Mt) Fe% Proved (111) 107.74 62.70% Probable (121) 32.74 62.35% Probable (122) 4.87 60.00% Total 145.35 62.53%

Reserve & Grade as per United Nations Framework Classification, Geological Reserve (in Mt as on 01.10.2014) is Coded as follows:

Sl. No

Reserve Category Reserves (Mt)

Grade (Fe%) (UNFC Classification)

(A) Mineral reserve 1 Proved Mineral Reserves (111) 107.74 62.70% 2 Probable Mineral Reserves (121) 32.74 62.35% 3 Probable Mineral Reserves (122) 4.87 60.00%

(B) Remaining Resource 4 Feasibility Mineral Resource (211) 27.49 +45% 5 Pre-Feasibility Mineral Resource (221) 7.32 +45% 6 Pre-Feasibility Mineral Resource (222) 6.48 +45% 7 Remaining measured resource (331) NIL NA 8 Indicated Resource (332) NIL NA 9 Inferred Resource (333) NIL NA

10 Reconnaissance Resource (334) 1.56 +45%

Surface Geological Plan of the lease are enclosed as Drg. Nos. MEC/Q77B/11/S2/T2.



3.5.3 Mining:

Kurmitar Iron Ore Mine is an open cast mine, comes under Category-A (Fully Mechanized category) as per the IBM guidelines, where mining is carried out by drilling, blasting followed excavation of loosened material by hydraulic excavators and loading them onto tipper trucks and dumpers.

The machines to be deployed are Wagon Drills (115mm dia.), hydraulic excavators (0.9 m3 - 4 m3 bucket capacity), tippers / capacity dumpers etc. for the various mining unit operations such as drilling & blasting, excavation & loading, transportation etc.

Kurmitar Iron Ore Mine has been operating since the mid 1960s. Presently 3 quarries i.e. Quarry 1, 2 & 6 are under production. Quarries 2 and 6 will be extended in the south western, northern side & western sides so that all these quarries will merge together eventually. Existing benches at Quarry 1 will be further pushed in the north western side. The proposed height of bench is 6 m with 15 m minimum working width. Width of bench has been planned to be reduced to 6 m at the ultimate stage near lease boundary. Bank slope has been considered as 70o. Envisaged ultimate pit slope of the Kurmitar Iron Ore Mines is 32o. Haul road has been planned at a gradient of 1 in 16. Inter bench ramp width has been considered as 8 m.

The following equipment will be deployed in the mine:

Sl. No. Description Nos. 1. Hydraulic Excavator, 3.2 m3 5 2. Hydraulic Excavator, 1.5 - 2.0 m3 7 3. Front-end Loader, 1.5 – 2.0 m3 4 4. Front-end Loader, 2.0 – 5.0 m3 6 5. Dumper, 35t 28 6. Dumper, 20t 16 7. Drill, 115mm 6 8. Dozer,360 HP 2 9. Dozer,190 HP 2 10. Grader,200 HP 1 11. Explosive van 1 12. Service van 1 13. Pick up van 1 14. Water tanker 5 15. Diesel tanker 2 16. Portable lights for face lighting 6 17. Tower lights 20 18. Tractor 1 19. Crushing & Screening plant(800 tph) 2 20. Crushing & Screening plant(225 tph) 1 21. Screening plant mobile (200 tph) 4

The existing surface plan of the lease is enclosed as Drg. No. MEC/Q77B/11/S2/T3. The surface plan at the end of work is shown as Drg. No. MEC/Q77B/11/S2/T4.

The mine will work 300 days per year with three daily shifts. The expected life of the mine is 25 years.

Mine development & production planning has been carried out to achieve the full production capacity of 6.0 Mt in the FY 2018-19 in a phased manner with 2.4 Mt, 3.97 Mt, 4.47 Mt production in the year 2015-16, 2016-17 & 2017-18, respectively to systematically develop the mine with an



anticipated stripping ratio of 6.75 t/m3. The wastes generated from the mine will be partly dumped in external dumps & partly backfilled in the voids created during mining.

Material containing 45-55% Fe has been considered as sub-grade. A total of 22.53 Mt of sub-grade will be generated up to conceptual stage. Silica & alumina content in the sub-grade generated during mining will be too high making it unsuitable for steel making. However, around 5% of subgrade generated during the scheme period can be blended with high grade ore which will produce a blend containing 62% Fe, 2.91% SiO2 & 3.71% Al2O3. It is proposed to beneficiate and utilize the subgrade ore depending upon the results of testing from a reputed testing agency. However, it has been planned to stack sub-grade material in separate dumps. The height & width of individual terraces has been considered as 10 m with a bank slope angle of 370.

A part of the mined out pit will be backfilled in the ultimate stage with the mine wastes where non-persistence of ore has been proved. The quarry area will be fenced to prevent any inadvertent movement of persons into the area. Remaining mined-out benches will be afforested. When mineral reserves are exhausted, the mine shall be closed down in accordance with the approved mine closure plan. All waste dumps will be stabilized and biologically reclaimed. Some of the other infrastructure will be dismantled. Others, especially buildings will be handed over to local Panchayats or the State Government.

3.5.4 Mineral Processing:

Two crushing and screening plant each of 800 t/hr will be installed in phases.

The process flow sheet of 2-stage crushing and screening of Iron ore has been out lined as follows:

Rom + Over Size

D1

Grizzly feeder

G1

Screen

S110-40mmScreen

S2

+100mm Jow Crusher

C1

Surge Hopper

SH1 -100mm

Secondary Crusher

C2

Screen

S3

Fines -10mmFines -10mm10-40mm CLOLB1

+40

-10

0mm

Grizzly feeder

G2

Screen

S4

10-40mm CLO

+40

LB2Fines -10mm

+100mm to -800mm

+40mm to -100mm

Rom

D2

-100m

10-40mm CLO

Screen

S5-100mm

Calibrated lump ore (+10 to -40mm) and fines (-10mm) generated after crushing and will be loaded by front end loaders of 0.9-4.5 m3 capacity and transported by 20 t t/ 35t dumpers to the respective stockyard. In addition to this, one existing 225 tph crushing and screening plant will also be maintained to meet the incidental break down and achieve the target. ROM Iron Ore raised from the mine will be marketed to the consumers through two line belt conveyor of 17 km length after crushing and screening.

3.5.5 Mineral Transport

The integrated mining project shall have mechanical evacuation system for fines. A fully mechanized crushing & screening facility coupled with downhill conveying by belt conveyor will be installed. It has been finalized to lay a two- line conveyor belt system of 1000 tph capacity each. The length of the conveyor belt will be approximately 17 Km. The termination point of the conveyor belt at Mahulidiha village site is about 2.0 Km from road (SH-10A) and 1.0 Km from the proposed Talcher- Bimlagarh railway line. Iron ore of Kurmitar Iron Ore mines shall be transported downhill to the Termination Point by the conveyor belt from where it will be sold to different buyers who will transport the sold iron ore to their destinations either by road or rail. In addition to the above, one ore



stockyard near Barsuan will be developed for intermittent storage & supply of Iron ore to the consuming industries.

OMC is also in the verge of completing the work of making the ghat road to double lane. To mitigate the ore evacuation constraints through ghat road the development of railway siding ore stock yards has also been planned.

3.6 RAW MATERIALS

The only raw materials consumed in the project are fuel (HSD) and explosives.

The fuel consumption in the mine operating at full capacity is estimated to be 5267 Kl/yr. The explosives consumption is expected to be 1108.758 t/yr (powder factor of 5.06t of iron ore per kg of explosives). Explosive will be either stored in the existing magazine or supply of explosive will be outsourced to external agency.

3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE

Some of the effluents from the mine’s canteens and rest-rooms will be utilised for irrigation of green belt. A total of 32 m3/day water will be recycled and utilized for green-belt development, drilling & dust suppression using existing facilities before being distributed.

OMC has developed centralized work-shop, stores, medical unit at its Kurmitar lease for its mines in the region also. A common housing colony spread over 11.912 ha has been developed having all the amenities. These infrastructures will serve the requirements of Kurmitar also.

3.8 SITE SERVICES 3.8.1 Water Requirement:

The peak water demand for the mine is expected to be as follows:

Purpose Peak demand (m3/day) Drilling & Dust suppression 30 (source:18 & recycled:12) Equipment/Vehicle Washing 15 Pithead bath 30 Green Belt Development 100 (source:78 & recycled: 22) Drinking & Domestic 25

TOTAL 200

The water will be drawn from Borewell 25m3/day and surface stream 141m3/day and recycled water 32 m3/day treated using existing facilities before being distributed.

3.8.2 Power Requirement

An estimated 5 MW for illumination, operation of operation of weighbridge, surveillance system & water pumps. This power shall be drawn from the grid.

3.8.3 Amenities

The mine has a site office. All the statutory facilities such as crèche, canteen, first-aid centre, vocational training centre etc have been provided. To take care of the drinking water needs at different working areas, water tankers have been envisaged for the mine. The rest shed-cum-Lunch rooms have been provided near quarry site as per Mines Rules-56. First–aid facilities and toilet are attached to the rest shed. Portable blasting sheds of one end open type have been provided at the mine site for giving protection to the blasters during blasting. Township and guest house is located outside the lease in the Khandadhar village where mine’s personnel are accommodated.



3.9.2. WASTES

The mine’s rated capacity shall be 6.0 Mt/yr of iron at an anticipated stripping ratio of 6.75 t/m3. A total of 32.10 Mm3 of wastes will be generated from entire Kurmitar iron ore lease upto conceptual stage. Year wise waste generation up to Conceptual period is given in the table as follows:

Year Waste Generation, Mcu.m 2015-16 0.53 2016-17 0.61 2017-18 0.58 2018-19 1.03 2019-20 0.27 Total 3.02 2020-conceptual 29.08 Total 32.10

Out of which, 0.53 Mm3 waste generated during year 2015-16 will be dumped in existing waste dump WD. Balance 2.49 Mm3 of waste generated from year 2016-17 to 2019-20 has been proposed to be dumped in waste dump WD1 towards the eastern side of existing waste dump WD. From 2020 onwards 29.08 Mm3 waste will be generated, out of which 4.0 Mm3 & 1.72 Mm3 waste will be dumped in waste dump WD1a & WD1b proposed in the eastern side of the existing waste dump WD. Balance 10.43 Mm3, 3.52 Mm3, 2.87 Mm3 and 6.54 Mm3 waste generated from Kurmitar iron ore lease will be backfilled in the backfill 1, backfill 2, backfill 3 & backfill 4, respectively.

4.0 SITE ANALYSIS

4.1 CONNECTIVITY

Kurmitar Iron Ore Lease is well connected by a network of mining roads. Koira-Lahunipara road connecting NH no – 215 is distance around 5 Km from the lease area. The camp area & lease of the Kurmitar is connected by PWD metalled all weather road with Barsuan town which is located at distances of 13 km and 18 km, respectively. The nearest rail head is also Barsuan in the Rourkela – Barsuan sector of south-eastern railway.

4.2 LAND FORM, LAND USE, OWNERSHIP

The mine lease area comprises of Reserve Forest and Protected Reserve Forest in Sundergarh District, Odisha The land ownership is as follows: Reserve Forest : 52.90 ha Protected Reserve Forest : 598.1 ha

4.3 TOPOGRAPHY

The lease area is in the center of a ridge like escarpment, which runs in the East - West direction. The top of the ridge at the lease has a peak at 1065 mRL. The bottom of the escarpment is at the lease is at about 550 mRL.

The area has dendritic pattern of drainage because of its hilly topography. The ridge of the Kurmitar Pahar roughly divides the mine lease area into northern and southern half. Since the Kurmitar Pahar forms the highest elevation in the region, a number of seasonal drainage channels originate and flow down from the lease area. Seasonal drainage channels emerging from western side flow down to join the Khandadhar Nala which drains into Amsari Nala flowing towards west. Drainage channels from eastern side flow down to form Paikuncha Nala which drains into Malda Nala flowing towards east. Another prominent drainage channel from southwest side joins Burhghur Nala which drains into Korapani Nadi flowing towards west.



4.4 LAND USE

The lease area is located in partly in Reserve Forest Land (8.13%) and mostly in Protected Reserve Forest (91.87%). The existing land use pattern in the lease is as follows:

Sl. No. Type of land use Existing land use (Ha) 1 Mining Area 52.328 2 OB/Waste dumping 15.780 3 Subgrade Dumping 9.860 4 Mineral Storage 0.000 5 Infrastructure (Office, Rest Shelter, Fines evacuation,

Feeding area & Long Distance Conveyor) 0.335

6 Statutory Barrier (7.5 m safety zone) 9.392 7 Roads 1.977

Total 80.280* * excluding Safety Barrier area

4.5 EXISTING INFRASTRUCTURE

The infrastructure and ancilliary facilities for Kurmitar are spread over an area of about 11.912 ha outside Kurmitar ML area in Khandadhar village. This common area also hosts the infrastructure of adjaoining Rantha mine of OMC. The services includes mine office, township, guest house, All the statutory facilities such as crèche, canteen, first-aid centre, vocational training centre etc have been provided. To take care of the drinking water needs at different working areas, water tankers have been envisaged for the mine. The rest shed-cum-Lunch rooms have been provided near quarry site. The servicing & repairing shop facilities have been provided at Kurmitar lease.

4.6 SOIL CLASSIFICATION

A part of the lease on western side close to the boundary & Northern part of the lease is covered by soil whereas, the hill ridges extending from the central part of the ML to eastern and southern parts are capped with shaly laterite. The soil is lateritic, typical of the area. The thickness of the top soil varies from nil to maximum of 60 cm. The average thickness is 20 cm.

4.7 CLIMATE

The study area lies in tropical region where climate is characterised by very hot summers and cool winters. Summer is typically from March to June when monthly temperature ranges from a maximum of 42°C during daytime to a minimum of 15°C at night. Winter is from November to February when the maximum temperature during day goes up to 37°C and minimum temperature at night becomes as low as 8°C. Average annual rainfall in the area is of the order of 1231 mm. The Southwest monsoon lasts from mid June to mid September and the area gets more than 80% of the annual rainfall during this period. Relative humidity varies from 20%-89%. Predominant wind direction is due SW.

4.8 SOCIAL INFRASTRUCTURE AVAILABLE

OMC’s township located outside the lease in the Khandadhar village has all necessary amenities.

5.0 PLANNING BRIEF

5.1 PLANNING CONCEPT

The proposed project envisages expanding an existing open cast mine having lease area of 651.0 ha. Presently the lease is under deemed renewal status. The environment clearance and the Stage-



II Forestry Clearance for an area of 133.112 ha of mine have been accorded by MoEFCC (FC Division) on dated 10.04.2007. Earlier the lease area of Kurmitar Iron Ore lease was 1212.47 ha, out of which 561.47 ha area has been surrendered by OMC dated 09.10.2013 and Final Mine Closure Plan (FMCP) for surrendered area of 561.47 ha has been approved by IBM, dated 22.08.2013. Presently the lease area of Kurmitar Ore Lease is 651.00 ha.

The basic infrastructure required for resuming operations are already in place. Once the necessary clearances are obtained the rated capacity of the mine will be increased. The rated capacity of the mine is 2.4 Mt/yr and proposed to be increased upto 6.0 Mt/yr in the year 2018-19. Mechanical evacuation system for fines with crushing & screening coupled with downhill belt conveyor by the end of FY 2015-16 with development of railway siding ore stock yards to mitigate the ore evacuation constraints through ghat road has been planned. From the year 2016 onwards another line of 800 tph stationary crushing and screening has also been envisaged.

5.2 LAND USE PLANNING:

The existing land use and the land use at the end of the mine’s life are as follows:

Sl. No.

Particulars

Land-use Area, Ha As on 30.09.2014 5th Year i.e. upto 31.03.2020 Conceptual Stage

1 Mining Area 52.328 84.027 496.948 2 OB/Waste dumping 15.780 27.92 61.300 3 Subgrade Dumping 9.860 23.074 41.670 4 Mineral Storage 0.000 12.8 33.060 5 Feeding area & Long Distance

Conveyor for new projects 0.335 12.346 8.630

6 Statutory Barrier (7.5 m safety zone) 9.392 9.392 9.392 7 Roads 1.977 4.788 0.000 Total Area 80.280* 164.951* 651.000

* Excl. Safety Barrier area

When the reserves are exhausted, the mine will be shut down as per the Approved Mine Closure Plan.

5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND

Most of the basic infrastructure required for increased production is already in place. However, to cope up with the increase capacity expansion of 6.0 Mt/yr another line of 800 tph crushing unit and installation of Mechanical evacuation system for fines with crushing & screening coupled with downhill belt conveyor having capacity 1000 tph of each conveyor has been planned. Development of railway siding ore stock yards to mitigate the ore evacuation constraints through ghat road has been planned. Ghat road double lane construction is on the verge of completion.

Kurmitar mine will employ 412 persons, many of whom, especially most of the unskilled and semiskilled workers, will be local villagers. The rest comprising of the officers, supervisors, some of the office staff, skilled and semiskilled workers may come from outside. These people will be provided accommodation in the existing Khandadhar village townships, which have all amenities. If required the necessary additional accommodations will be suitably expanded.



5.4 AMENITIES / FACILITIES

During the process of capacity expansion of Kurmitar mine, OMC will construct or expand the required requisite facilities like canteen, rest shelters and blasting sheds which already exist with the area to meet the additional requirement.

6.0 PROPOSED INFRASTRUCTURE

To realize the embarked proposal OMC has taken up project of highly mechanized production cum evacuation system. The integrated mining project shall a mechanical evacuation system for fines with crushing & screening coupled with downhill belt conveyor by the end of FY 2015-16 with development of railway siding ore stock yards to mitigate the ore evacuation constraints through ghat road. From the year 2016 onwards another line of 800 tph stationary crushing and screening has been envisaged. OMC is also in the verge of completing the work of making the ghat road to double lane. OMDC has townships with all basic requisite amenities. Electric power required for the mining operation and the conveyor belt operation may be made available by laying power cable trays attached to the conveyor belt structure.

Green Belt & Plantations: At present plantations are present over 6.85 ha within the lease area. Additional 54.45 ha of plantations will be developed over external waste dumps and 24.56 ha over backfill areas. Before the lease is abandoned, plantations will be created over additional exhausted quarry benches and floors, external over-burden dumps and backfill areas. Saplings of species like Neem, Karanj, Jamun, Mahua, Amla, and other fruit bearing trees etc. will be planted as part of the re-vegetation programme.

CSR Activities: Activities already taken up by OMC under its CSR Programme are as follows:

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 to Rantha Primary

School, OMC Camp, Khandadhar. Setting up of solar powered street lights in villages Construction of roads & Financial Assistance for improvement of infrastructure in Bonai Bus Stand,

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

Annual expenditure towards CSR activities during the year 13-14 and 14-15 are Rs.23.15 lakhs and Rs. 5 lakhs respectively. :

7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN :

The project does not envisage any leasing or acquisition of private land. Hence there will not be any land oustees who have to be resettled our rehabilitated.

8.0 PROJECT SCHEDULE & COST ESTIMATE

8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION:

It has been envisaged Kurmitar mine of OMC shall attain its rated capacity to 6.0 Mt/yr in FY 2018-19 i.e. 4th year of the present scheme of mining. However the expansion schedule is subject to receipt of all statutory clearances required for the expansion.



8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT

The estimated project cost will be Rs. 14346.40 lakhs

The estimated production cost (including depreciation & interest) at 100% capacity utilization after proposed expansion will be ~ Rs 823.17per tonne at rated capacity (iron ore).

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

The project will have the following benefits:

The project will increase the supply of iron for the domestic steel industry. In addition it will 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 : It aims to provide additional direct or indirect employment to the local population of the area. The proposed project 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 with financial

resources instead of going for heavy interest debts.

Considering the above mentioned points capacity expansion of Kurmitar Mine will fetch additional benefits and uplift the socio-economic condition of local villagers apart from generating additional revenue for state. Thus capacity expansion of Kurmitar Mine project has become necessary.


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