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THE ODISHA MINING CORPORATION LIMITED PRE-FEASIBILITY REPORT FOR PROPOSED EXPANSION OF SUKURANGI CHROMITE MINING PROJECT (Prepared as Part of Application for Terms of Reference for EIA Studies as per MoEFCC Notification No. J-11013/41/2006-IA.II(I) dated 30 th Dec., 2010) MECON LIMITED RANCHI 834002 INDIA 11.16.2015.EE2208 August, 2015

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Page 1: DAMODAR VALLEY CORPORATIONenvironmentclearance.nic.in/writereaddata/Online/TOR/0_0_17_Sep_2015... · chromite ore. The lease area is located in Jajpur Dist. of Odisha. This report

THE ODISHA MINING CORPORATION LIMITED

PRE-FEASIBILITY REPORT

FOR

PROPOSED EXPANSION OF

SUKURANGI CHROMITE MINING PROJECT

(Prepared as Part of Application for Terms of Reference for EIA Studies as per MoEFCC Notification No. J-11013/41/2006-IA.II(I) dated 30th Dec., 2010)

MECON LIMITED RANCHI – 834002

INDIA

11.16.2015.EE2208 August, 2015

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Pre-Feasibility Report Expansion of Sukrangi Chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.16.2015.EE 2208) Contents

Page i of iii

CONTENTS

Chapter Nos.

Title Page Nos.

1 Executive Summary 1

2 Introduction of the Project / Background Information 3

3 Project Description 6

4 Site Analysis 16

5 Planning Brief 19

6 Proposed Infrastructure 20

7 Resettlement and Rehabilitation Plan 23

8 Project Schedule and Cost Estimate 23

9 Analysis of Proposal (Final Recommendation) 24

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Pre-Feasibility Report Expansion of Sukrangi Chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.16.2015.EE 2208) Contents

Page ii of iii

DRAWINGS

Drawing No. Title

MEC/Q78Z/11/16/T1 Mine lease area superimposed on toposheet

MEC/Q78Z/11/16/T2 Geological Plan

MEC/Q78Z/11/16/T3 Surface Plan

MEC/Q78Z/11/16/T4 Conceptual Plan

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Pre-Feasibility Report Expansion of Sukrangi Chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved (Report No. 11.16.2015.EE 2208) Contents

Page iii 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

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 1 of 24

1.0 EXECUTIVE SUMMARY

Sukurangi chromite mining lease of Odisha Mining Corporation (OMC) is spread over an area

of 382.709 ha, bounded between 21002’18.85” to 21003’46.98” N & 85047’43.77” to 85049’

21.74” E and is covered under Survey of India toposheet no. 73 G/16. Initially, the lease

deed was executed for an area of 382.709 ha on 20.9.1980 for a period of 20 years which

expired on 19.09.2000. Application for renewal of the lease has been done on 19.9.1999 and

currently the lease is under deemed renewal stage.

The last scheme of mining was approved by IBM for the period from 1.4.2009 to 31.3.2014

vide letter No. MS/OTF.MECH/33-ORI/BHU/2009-10 dated 18.12.2009. The mine has been

accorded Environment Clearance vide letter No. J-11015/409/2008-IA.II(M) dated 18.2.2010

for a production capacity of 0.130 Mt/yr. The Sukurangi chromite ore mines comes under

Category-A as per EIA notification – 2006, Amendment Nov.-2009 & April -2011 of the

Ministry of Environment, Forest and Climate Change, New Delhi.

The Sukurangi Chromite mines comes under Category-A (Fully Mechanized category) as per

the IBM guideline. The deposit is worked by opencast mining method with formation of

benches. Working benches are kept 6 m high and minimum 11 m wide. The conventional

mining method deploys use of 115 mm diameter drills and blasting with low density (LD)

cartridge explosives. 15-25 t capacity dumper/ tipper with matching capacity hydraulic

excavators/ loaders for loading and transportation of ore to sale plots and transportation of

waste/ sub grade materials to their respective dumps/ stock yards have been envisaged in

this scheme of mining.

Chromite containing 10 – 40% Cr2O3 has been considered as sub/marginal grade ore and are

meant for beneficiation. These are dumped separately in a designated area for

transportation to the Chrome Ore Beneficiation (COB) Plant at OMCL’s nearby South

Kaliapani lease. Present consumption of explosives is around 0.03tpd.

The salient features of the project include:

Proposal Enhancement of chromite ore production from 0.130 Mt/yr to 0.30 Mt/yr at Sukurangi chromite mines (Area-382.709 ha) .

Location of Mine Sukinda Tehsil in Jajpur district of Odisha State.

Latitude 210 02’ 18.85”N & 210 03’ 46.98”N

Longitude 850 47’ 43.77”E & 850 49’ 21.74”E

Land Use The mine lease area of Sukurangi chromite lease is 382.709 ha, comprising of 267.21 ha of forest land, 88.995 ha agricultural land, 20.377 ha waste land, Nil ha grazing land, 1.865 ha is road, 0.509 ha under settlements and 3.753 ha under surface water body.

Total Mineable Reserves(Mt)

5.41/(Average grade:46.33% Cr2O3)

Life of Mine 18 years

Method of Mining

Fully mechanized opencast mining method with formation of

benches by drilling and blasting

Quarries Sukurangi chromite mine has two independent quarries-DE and AC.

Stripping Ratio 3.27

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 2 of 24

(m3:t)

Waste disposal During the next plan period, waste generated will be dumped into existing waste dumps. Around 3.43 Mm3 waste generation has been envisaged during the proposed scheme period. During 2020 year onwards OB will be used partly for dump and partly for backfilling. Sub-grade ores will be stacked externally for future use.

Mineral Processing

Metallurgical grade (Ferrochrome & charge Chrome) chrome ore (+42% Cr2O3) is directly sold to the consuming industries after sorting, sizing and blending. Low grade ore (+30% -42% Cr2O3), will be dispatched to the lessee’s chrome ore beneficiation (COB) plant located at South-Kaliapani M.L. area. The ROM chrome ore produced from the quarry is transported to the ore processing stack yard.

Mineral Transport

The ROM chrome ore produced from the quarry is transported to the ore processing stack yard. As soon as the stacks are built, ore is sampled and assayed, based on which the cargo is transported to the end point for sale.

Number of working days

300 days/ year

Fuel Consumption

HSD: Existing – 600LPD; Proposed: 2000LPD

Explosive Consumption

(Low density cartridge explosive) Existing – 1.3 tonnes per month; Proposed: - 3 tonnes per month

Water Demand Average water consumption for domestic and industrial use is 249 m³/day (peak 353 m³/day). Avg. 60 m³/day (peak 80 m³/day) of potable water shall be drawn from borewell. 93 m³/day (peak 147 m3/day) and 47 m³/day of industrial water requirements shall be met by utilizing treated mine discharge water from adjacent South Kaliapani mine and ETP treated Sukurangi mine quarry discharged water respectively.. Further, 49 m³/day (79 m³/day in peak season) of effluents generated in the mine from workshop, pit head bath and drinking water circuit shall be recycled.

Source of water Potable water through bore-well and industrial water by treated recycled water.

Man Power The proposed expansion shall provide an opportunity of continuing direct employment for 308 persons (Mining plan report) and indirect employment of 500 persons.

Electricity Demand

At present, the maximum power demand for the mine has been

estimated to be 0.019 MW and after expansion of the mine, a total

of 0.05 MW power demand is expected.

Infrastructure The leasehold area hosts statutory facilities viz. creche, canteen, first–aid centre, vocational training centre etc. and also Administration block, servicing and repairing shops, fuel pump station and a small medical unit. Residential accommodations for staffs and executives have been provided.

Proposed Investment

Rs. 1533 crores

Production Cost Rs. 3241 / tonne

CSR Budget Total Rs. 13.245 lakhs and Rs. 65.1 lakhs was spent for year 2013–14 & 2014-15 respectively. Further, Rs. 30.6 lakhs is the CSR budget approved by the CSR committee for the year 2015-16.

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 3 of 24

2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION

This is Pre-Feasibility Report, which has been prepared as part of the application for grant of

TOR (Terms of Reference) for Environmental Impact Assessment and Environmental

Management (EIA/EMP) studies w.r.t. the proposed expansion of Sukurangi chromite mine

of Odisha Mining Corporation Limited from rated capacity of 0.130 Mt/yr to 0.3 Mt/yr of

chromite ore. The lease area is located in Jajpur Dist. of Odisha. This report has been

prepared as specified in MoEFCC’s OM no. J–11013/41/2006 – IA.II(I) dated 30th Dec.,

2010.

In pursuance of Government of India policy vide Environment (Protection) Act, 1986 new

projects or expansion of any existing project necessitates prior Environmental Clearance in

accordance with the objectives of National Environmental Policy as approved by the Union

Cabinet on 18th May, 2006 and MoEFCC’s EIA Notification dated 14.09.2006 by preparing an

EIA / EMP report. As part of the process of scoping for the EIA/EMP studies the project

proponent has to submit a formal application to MoEFCC through online submission in the

prescribed format (Form I) along with a Pre-Feasibility Report.

In view of the above, Pre-Feasibility report has been prepared for seeking approval w.r.t the

Terms of Reference for carrying out EIA/EMP studies for the proposed expansion of OMC’s

Sukurangi chromite mine from Ministry of Environment, Forest and Climate Change, Govt. of

India.

This report contains information on the proposed expansion of the mine and other facilities.

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

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 4 of 24

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.

2.1 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. The major minerals

mined by OMC are chrome, iron and manganese ore which cater to the requirement of

mineral based industries such as steel, sponge iron, pig iron, ferro-manganese, ferro-chrome

etc. At the present rate, OMC is producing about 10% of total iron ore production and about

30% of the total chrome ore production of the State.

Sukurangi lease covers 382.709 ha and is located in Sukinda Tehsil Jajpur district of Odisha

State. It is located between 21002’18.85” & 21003’46.98” N and 850 47’ 43.77” & 850 49’

21.74” E. The area is covered under Survey of India toposheet no. 73 G/16.

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 5 of 24

2.2 Brief Description Of The Project

Sukurangi chromite lease of M/s OMC Ltd. is located in Jajpur Dist. of Odisha. The Sukurangi

lease was executed on 20.9.1980 for a period of 20 years. Application for renewal of the

lease has been done on 19.9.1999 and currently the lease is under deemed renewal stage.

The last scheme of mining was approved by IBM for the period from 1.4.2009 to 31.3.2014

vide letter No. MS/OTF.MECH/33-ORI/BHU/2009-10 dated 18.12.2009. The mine has been

accorded Environment Clearance vide letter No. J-11015/409/2008-IA.II(M) dated 18.2.2010

for a production capacity of 0.130 Mt/yr. Consent to operate have also been granted by the

State Pollution Control Board, Odisha under the Air & Water (Prevention & Control of

Pollution) Act, which is valid upto 31.3.2016. The mine has also been accorded permission

for diversion of 104.79 ha of forest land vide letter No F.NO-8-104/2000-FC dated 21.7.2011.

Permission has also been accorded for dumping of waste from the adjoining & contiguous

South Kaliapani lease to Sukurangi lease by the State Government. In the next plan period

(i.e. from 1.4.2014 to 31.3.2019), which also incorporates the provision of dumping of waste

from South Kaliapani lease to Sukurangi lease.

2.3 Need For The Project And Its Importance To The Country Or Region:

Exploration undertaken so far indicates that Sukurangi lease area contains an estimated

mineable reserve of 5.41 Mt of Chromite ore. It is estimated that about 3.221 Mt of mineable

reserve of ore will be available up to 62 mRL, which can be worked by opencast operation.

The mine was in operation since sixties. In view of increased market demand of chromite ore

in charge-chrome and ferrochrome industries, an annual production of 0.130 Mt. per annum

has been envisaged.

The proposed expansion shall provide an opportunity of continuing direct employment for

308 persons (Mining plan report) and indirect employment of 500 persons. Considering the

aspects, namely meeting a bulk of the internal and external demand, need for earning

revenue to State exchequer, continuing direct and indirect employment of 800 persons and

economic development of a predominantly backward region of the country, continuation of

mining operation in enhanced capacity in Sukurangi mining lease, is essential.

2.4 Demand and supply gap:

Projected Demand Supply gap of Chromite ore during the Five year Plan period is given

below: (Figures are in Million tonnes)

Financial Year 2012-13 2013-14 2014-15 2015-16 2016-17

Production 3.75 4.01 4.29 4.59 4.91

Demand 2.90 3.19 3.52 3.93 4.31

Demand Gap (+)0.85 (+)0.82 (+)0.77 (+)0.66 (+)0.60

In FY14, India produced 2.8 million tonnes of Chrome ore and Chrome concentrate. Deposits

of economic significance occur in Odisha, Karnataka, Maharashtra, Jharkhand, Madhya

Pradesh, Tamil Nadu and Manipur.

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 6 of 24

2.5 Import vs indigenous production:

During first nine months of financial year 2015 (April - Dec’14), Indian Chrome ore import was recorded at 190,000 MT against 260,000 MT in FY14.

2.6 Export possibilities:

Chrome ore produced from this project will be exclusively consumed in the domestic steel

industry. There is no proposal for export of chrome ore from this project.

2.7 Domestic/ Export Market

As a major source of the metal chromium, the extracted chromium from chromite is used in

chrome plating and alloying for production of corrosion resistant super alloys, nichrome, and

stainless steel. Indian Chrome ore export in FY14 was 195,000 Mt.

2.8 Employment Generation

The proposed expansion shall provide an opportunity of continuing direct employment for

308 persons (Mining plan report) and indirect employment of 500 persons.

3.0 PROJECT DESCRIPTION

Original lease area of Sukurangi chromite deposit is 382.709 ha. The year wise chromite ore

production details from 2009-10 to onwards are given in Table 1.

Table 1: Year-wise production of last plan period:

Year Production (in t/y)

2009-10 4579.600

2010-11 9215.000

2011-12 9959.360

2012-13 52452.316

2013-14 78921.365

Total 155128.641

The mine has been accorded Environment Clearance by MoEFCC vide letter No. J-

11015/409/2008-IA.II(M) dated 18.2.2010 for a production capacity of 0.130 Mt/yr. Consent

to operate have also been granted by the State Pollution Control Board, Odisha under the Air

& Water (Prevention & Control of Pollution) Act, which is valid upto 31.3.2016. The mines

have also been accorded permission for diversion of 104.79 ha of forest land vide letter

dated 21.7.2011.

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

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Page 7 of 24

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

Sukurangi lease covers 382.709 ha and is located in Sukinda Tehsil Jajpur district of Odisha

State. It is located between 210 02’ 18.85056” & 210 03’ 46.98288” North Latitude and

between 850 47’ 43.7708” & 850 49’ 21.74412” East Longitude. The area is covered under

Survey of India toposheet no. 73 G/16.

3.3 Details of alternate site

Since the proposed project envisages expansion of an existing mine, possibility of alternate

site is out of question.

3.4 Size and magnitude of operation

Presently the retained ML area of Sukurangi chromite lease is 382.709 ha with rated

capacity of 0.130 Mt/yr. It is proposed to increase ROM production to 0.3 Mt/yr. Necessary

infrastructure for handling the additional ore shall also be created.

3.5 Mine description

3.5.1. Geology

Regional Geology

The chromite bearing ultramafics of Sukinda area have intruded in the Precambrian

metamorphites in the form of a lopolith. The intrusive has a width of 2-5 km and extends

for about 20 km in a ENE-WNW direction from Kansa in the east to Maruabil and beyond in

the west. The ultramafic body consists essentially of magnesite-rich dunite devoid of

chromite bands and subordinate amount of pyroxenite devoid of chromite mineralization.

The pyroxenite is relatively fresh but the dunite –peridotite members are highly

serpentinied and intensely lateritised. The granite is exposed at several places.

However, a generalized Stratigraphy of Sukinda ultramafic complex (Sahoo, 1974) is as

follows:

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

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Recent to Pleistocene Soil, Alluvium,

Laterities

_________________________Unconformity_________________________

Dolerite

Granite

Gabbro-diorite

Precambrian Ultramafics Pyroxenite

Dunite-peridotite

with chrome ore

Meta-sediments and

meta-volcanics

Gritty quartzite

Meta-Volcanics

________________________Base not seen_________________________

Small exposures of diorite rocks are found in Kathpal and Bhimtanagar. Besides, several

dolerite dykes have intruded into the ultramafics, quartzites as well as the granites. This

happens to be the last stage of igneous activity in this Precambrian terrain. Soil, alluvium

and laterite of recent origin are overlying the ultramafics unconformably.

Local Geology

The local stratigraphic sequence of different litho units is established from the

exposures of virgin as well as working area and bore holes data. The total lease hold is

covered with laterite and alluvium.The stratigraphic sequence of different litho-units as

established from observation and drill hole data is given below:

Alluvium and laterite

Pyroxenite

Yellow limonite with goethite

Limonite with Chromite dissemination

Friable chromite

Chert limonite

The placement of Pyroxenite – Dunite suite (now altered as limonite) is still a debatable

topic. The stratigraphic levels at which the ore within lease hold area is as follows:

Band-V (Regionally band – VI)

Band-IV

Band-III

Band-II

Band-I

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

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From the six bands of chromite encountered in the Sukinda Valley the Sukurangi area

consists of three sub parallel lodes. They are Band No. III, IV and V occupying different

stratigraphic level. They are dipping sub – vertically towards N – W with pinch and swell

structure.

(i) Band No – III

Chromite band No. III of Sukurangi lease is the northern-most band. The average

width of this band as exposed in the quarry section is around 1m and at places the

maximum width observed is around 2.5m. The in-situ ore body exposed in the quarries

within this band is brown, friable and medium grained.

(ii) Band – IV

The south flank of Chromite band No. IV is centrally located in the Sukurangi lease.

This band consists of two lodes, out of which the southern lode of this band contains

high Cr2O3 with high silica and maintains uniformity in grade at depth. The northern

lode of this band contains low to medium Cr2O3 with low silica and fluctuates in grade

towards depth. Both the lodes are friable in nature. In width, it ranges from 5m to 12m

at surface and in depth it becomes thicker and ranges to around 21m wide. The strike

direction of the ore body is N 55° dipping at 50° to 70°. towards North-West and

becomes almost vertical at depth. Besides that, the ore bodies show pinch and swell

structure both laterally and vertically. The ore body comprises of medium-grained

friable ore with abundant inter-granular limonite, chlorite to massive colored talc and

white crypto-crystalline silica, but at depth they become more homogenous and free

from talcose material.

(iii) Band – V

Chromite band No. V consists of a single thick ore band running at the strike direction

of N 55°W for around 300 m. The dip is not clear in the exposed outcrop. Few trenches

were driven across the trend of the ore body and the maximum exposed width of this

ore body is recorded to be 11 m.

Regional Stratigraphy:

The following lithological units occur in the Sukurangi lease area:

o Mahagiri quartzite - These occur as numerous boulders scattered in the area. The fine-

grained cherty quartzite with elongated quartz and mica show a distinct foliation in NE-

SW trend. The grains are bounded together with a very thin cementing material, which

have been tarnished by later infilling of ferruginous material. Three distinct sets of

joints have been clearly marked. The quartz grains are equi - granular giving rise to a

mosaic structure.

o Pyroxenite - These are coarse grained and green in colour. Mostly large and tabular

crystals of enstatites are found in the west of the closure of Band - III (i.e. Band. I of

this leasehold) and the exposed surface in the leasehold is covered by soil and thick

laterites.

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

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o Altered serpentinite and Dunite - The sepentinites are green and fibre in nature,

altered to fibrous asbestos along the cracks. In dunite the olivine grains are weathered

along their outer margins and occasionally altered to magnesites. Along their cracks

the olivines are altered to serpentines. Euhedral chrome grains are also abundant in

this olivine. The accessory chrome grains and the altered olivines show a mosaic

pattern. The rock shows crisscross veinlets of magnesite. These rocks are mostly

limonitised and silicified.

o Limonite - The ultramafics with peridotite - dunite has comlpletely altered to limonite.

They are soft, yellow to brownish in colour, with very low specific gravity i.e. 1.2 to

1.4. The limonites are nickeliferous and exposed in the working quarries. Serpentinites

and limonite are also seen to occur in quary openings.

o Laterite – Laterites are seen to occur at the top of the leasehold. Chromiferrous

laterites are occurring as capping on the ore body in extension part of working

quarries.

o Chrome ore bodies - From the six bands of chromite encountered in the Sukinda Valley

the Sukurangi area consists of three subparallel lodes. These are Band No.III, IV

and V which occupy different stratigraphic levels. The ore bands dip sub - vertically

towards N - W with pinch and swell structure. They have suffered with drag folds and

minor faults frequently.

Table 2: Chemical constituents of ore and sub-grade mineral

Consituents Sub-grade ore ROM ore

Cr2O3 28.17 48.47

FeO 5.03 10.06

Total Fe 19.60 6.32

SiO2 17.85 3.48

Figures are in %

3.5.2. Mineral Reserves:

Reserve & Grade as per United Nations Framework Classification, Geological Reserve is

Coded as follows (in tonnes and as on 01.08.2014):

On the basis of the above analysis, UNFC categorization of reserves for Sukurangi lease of

M/s OMC Limited is given in Table 3.

Table: 3: Reserves as per UNFC classification (in tonnes and as on 1.3.2014)

Sl.

No

Reserve Category

(UNFC Classification)

Qty.

(in Million Tons)

Grade

(Cr2O3,%)

1 Proved Mineral Reserves (111) 5.41 46.33%

2 Probable Mineral Reserves (112) NIL NA

3 Feasibility Mineral Resource (211) 9.50 30.00%

Feasibility Mineral Resource (212) NIL NA

4 Remaining measured resource (331) NIL NA

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Sl.

No

Reserve Category

(UNFC Classification)

Qty.

(in Million Tons)

Grade

(Cr2O3,%)

5 Indicated Resource (332) NIL NA

6 Inferred Resource (333) NIL NA

7 Reconnaissance Resource (334) NIL NA

Total mineable reserve is 5.41 Mt. Surface Geological Plan of the lease area is enclosed as

Drg. Nos. MEC/Q78Z/11/16/T2.

3.5.3. Mining:

The Sukurangi Chromite mines comes under Category-A (Fully Mechanized category) as

per the IBM guideline. The deposit is worked by opencast mining method with formation of

benches. Working benches are kept 6 m high and minimum 11 m wide. The conventional

mining method deploys use of 115 mm diameter drills and blasting with low density (LD)

cartridge explosives. 15-25 t capacity dumper/ tipper with matching capacity hydraulic

excavators/ loaders for loading and transportation of ore to sale plots and transportation of

waste/ sub grade materials to their respective dumps/ stock yards have been envisaged in

this scheme of mining.

Around 2.5-4 cubic meters bucket capacity hydraulic excavators (diesel powered) is being

used in conjunction with 15-25t dumpers. The ROM is being segregated at the mining face

itself as ore/ beneficiable ore/ sub-grade ore depending into the content of Cr2O3 in it. If

the Cr2O3 content in the ore is more than 40% it is being considered into direct ore, if the

Cr2O3 content in the ore is between 30-40% it has been considered into beneficiable ore

and if the Cr2O3 content in the ore is in between 10-30% it is being considered as sub

grade ore. Accordingly the ore is being stacked into their respective stacking plots. Waste

& sub grade materials generated is being transported to their respective dumping/ stacking

locations. Front end loader of around 1.5-3.0 cubic meters bucket capacity is being

deployed to load the ore/ beneficiable grade ore from the respective stacking plots.

Regular sampling of the ore at mine face itself is being carried out for on-face segregation

of ore/ beneficiable grade ore & sub grade ore. As per the permission granted by DGMS

under regulation 106(2)(b), the bench configurations adopted at Sukurangi chromite mine

is given below:-

Height : 6 meters

Min. working width : 11 meters

Bank slope angle : 60 deg.

Ultimate pit slope angle : Below 25 deg.

The dimension of the existing quarry is approx. 750m x 350m.

The present quarry limit extends from -400E to 400E & -106N to 290N and pit floor is at

158 m RL.

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The ultimate size of the different quarries/ blocks with their ultimate co-ordinates, bottom

RLs with bank slope are tabulated as below:

Mining Blocks/ Quarry

Ultimate

size of Pits

(m)

Bottom

RL (m)

Bank

Slope

Angle

Max. Ultimate

Pit Slope

Sukurangi chromite mine 2012 x 850 158 600 250

List of proposed fleet of mining machineries i.e. Major HEMM & Auxiliary Mining Equipment

for Sukurangi chromite mines is given below:

Parameters HEMM Fleet

Hydraulic Excavator, 2.5-4.0 cu.m 3

Loader, 1.5 – 3.0 cu.m 1

Dumper, 15-25t 11

Drill, 115 mm 2

Dozer, D-155 Equivalent (for mine) 1

Road grader 1

Explosive van 1

Water tanker, 10 kl 1

Diesel tanker 1

Tractor 2

Jackhammer 5

Truck (1210 SE) 1

Ambulance jeep 1

Electric pump (Electric) 2

Tulu pump (Electric) 1

Diesel pump (Non - Electric) 4

The existing surface plan of the lease is enclosed as Drawing No. MEC/Q78Z/11/16/T3.

The surface plan at the end of work is shown as Drawing No. MEC/Q78Z/11/16/T4.

The mine will work 300 days per year with three daily shifts. 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.

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3.5.4. Mineral Processing:

Metallurgical (Ferrochrome & charge Chrome) grade chrome Ore (+42% Cr2O3) is directly

sold to the consuming industries after sorting, sizing and blending. Low grade ore (+30% -

42% Cr2O3), will be dispatched to the lessee’s chrome ore beneficiation (COB) plant

located at South-Kaliapani M.L area.

The ROM chrome ore produced from the quarry is transported to the ore processing stack

yard. The ROM ore is subjected to breaking/sizing of oversize ore, screening and sorting.

After sorting, chromite ore are stacked in different marketable graded stacks for sampling

and analysis. As soon as the stacks are built, ore is sampled and assayed, based on which

the cargo is transported to the end point for sale.

3.5.5. Mineral Transport

The ROM chrome ore produced from the quarry is transported to the ore processing stack

yard. The ROM ore is subjected to breaking/sizing of oversize ore, screening and sorting.

After sorting, chromite ore are stacked in different marketable graded stacks for sampling

and analysis. As soon as the stacks are built, ore is sampled and assayed, based on which

the cargo is transported to the end point for sale.

3.6 RAW MATERIALS

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

(LD) cartridge explosives.

The existing fuel consumption in the mine operating at full capacity is 600lpd and the

proposed fuel consumption is estimated to be 2000lpd. The explosives consumption is

expected to be 0.02 TPD.

Storage of explosives (like capacity and type of explosive magazine)

The magazine is located within Kalarangi lease and is valid upto 31.3.2016 and is licensed

to store the following quantities:-

(i) Explosives : 3 t

(ii) Detonating fuse : 10000 m

(iii) Safety fuse : 40000 m

(iv) Detonator : 44000 Nos.

The use of explosive is from this magazine by a tripartite agreement.

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3.7 RESOURCE OPTIMIZATION / RECYCLING AND RESOURCE

Treated water from adjoining South Kaliapani lease shall be utilized for meeting industrial

water demand of Sukurangi mine. Also, treated water from equipment washing and pit head

bath shall be used for drilling, spraying and green belt development. Effluents from the

mine’s workshop area and pit head bath shall be collected in sumps and utilized for

industrial purposes (green belt irrigation and dust suppression etc.).

3.8 SITE SERVICES

3.8.1. Water Requirement:

Table 4.0: Water requirement during expansion stage

Activities Avg. demand (m3/d)

Peak demand (m3/d)

Drilling & spraying 70 124

Equipment / vehicle washing 59 59

Pit head bath 20 20

Green belt 40 70

Drinking water requirement at mine site and Colony

60 80

Total 249 353

At present there is no ground water seepage from Sukurangi quarry AC and DE. No ground

water seepage is expected in coming five years also given the planned extraction depth. As

such, industrial water requirement of Sukurangi mine will be met from treated mine

discharge of adjacent South Kaliapani lease. When quarry AC and DE of Sukurangi lease

deepens in expansion phase after seven/eight years, ground water seepage is anticipated.

Ground water discharge when available from Sukurangi quarry will be treated and utilized

to meet industrial water requirement.

Water balance has been shown in Fig.1.1.

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Fig:1.1: Water Balance

Source Consumption

Borewell60 [80]

Drinking & domestic

Source: 60 [80]

Drilling & spraying

Source: 61 [115]

discharge

Equipment/vehicleWashing

Source :20

Pit Head Bath

Recycled: 9

Source: 59

DevelopmentGreen Belt

dischargeRecycled: 16 + 24 [54]

Recycled

Quantity

Consumption: 249 [353] +Fire fighting = 60

Recycled quantity:

49 [79]

Discharge: 969 [0]Source:

47+93 [147] + 60

[80]

Discharge

Discharge:

9

Discharge:

16

Treated water from

South Kaliapani

93 [147]

47

Discharge:

40 [54] Discharge

16 [0]

Discharge:

24 [54]

QUARRY DISCHARGE

FROM SUKURANGI

MINE 1000

ETP #

TOWNSHIP

50 [65]

MINE SITE

10 [15]

Discharge

953 [0]

93 [

147]

Figures are in m3/d

Figures outside [ ] corresponds to average daily water demand.

Figures within [ ] corresponds to daily demand in peak season. [ ] values are indicated only when peak

demand is different than average demand; Otherwise daily demand in peak season and average daily

demand should be taken as equal.

3.8.2. Power Requirement

Source of power is Kalarangi substation belonging to GRIDCO. At mine site,

electrical power is drawn through one 11 KV power line from this substation. The

same system of power supply will continue for five years period. At present, the

maximum power demand for the mine has been estimated to be 0.019 MW and

due to expansion of the mine, 0.05 MW power demand is expected.

3.8.3. Amenities

The leasehold area hosts statutory facilities viz. creche, canteen, first – aid centre,

vocational training centre etc. and also Administration block, servicing and repairing

shops, fuel pump station and a small medical unit. Residential accommodations for

staffs and executives have been provided.

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3.9 SUBGRADE

Table 5.0: Sub-grade generation and storage during expansion stage

Year Sub-grade

generated, in

tones

Lease Location & quantity to

be disposed in m3 Generation Disposal

2014-15 68740 Sukurangi Sukurangi SGD1-68740t

2015-16 82904 Sukurangi Sukurangi SGD1-82904t

2016-17 21958 Sukurangi Sukurangi SGD1-21958t

2017-18 75686 Sukurangi Sukurangi SGD1-75686t

2018-19 79781 Sukurangi Sukurangi SGD1-79781t

3.10 WASTES

Table 6.0: Waste generation and disposal during expansion stage

Year Waste generated,

in m3

Lease Location & quantity to

be disposed in m3 Generation Disposal

2014-15

721954 Sukurangi Sukurangi WD1 – 721954

2731963 South

Kaliapani Sukurangi WD1’ -2731963

2015-16 561784 Sukurangi Sukurangi WD1-561784

2016-17 733888 Sukurangi Sukurangi WD2-733888

2017-18 670526 Sukurangi Sukurangi WD2-670526

2018-19 747714 Sukurangi Sukurangi WD2-453955

WD3-293759

4.0 SITE ANALYSIS

4.1 CONNECTIVITY

Sukurangi mine lease area is connected with the nearest railhead at Jajpur – Keonjhar Road

on Howrah – Bhubaneswar – Chennai line of SE railway by an all weather road of 53 km via

Duburi and Tomka. The leasehold area is linked with Daitari - Paradeep Express Highway.

State Capital at Bhubaneswar and district head quarter at Jajpur Road are located at road

distances of 150 km and 53 km respectively from Sukurangi leasehold area.

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4.2 LAND FORM, LAND USE, OWNERSHIP

The mine lease area of Sukurangi chromite lease is 382.709 ha, comprising of 267.21 ha of

forest land, 88.995 ha agricultural land, 20.377 ha waste land, Nil ha grazing land, 1.865 ha

is road, 0.509 ha under settlements and 3.753 ha under surface water body.

4.3 TOPOGRAPHY

The mine lease is located in funnel shaped Sukinda Valley which extends from east to west

with the open end facing west. The northern part of the Sukinda Valley is marked by the

Daitari hill Range which rises very sharply from about 140 mRL to more than 600 mRL. The

southern part of the valley is bounded by the Mahagiri hill range, which alsois very steep and

rises to more than 600 mRL. The hills are densely forested.

The mine lease is located at the foot of the Mahagiri hill range and slopes from south-east to

north-west. In general, the lease area has more or less flat topography between 140 m and

160 mRL and slopes from north to south. There is no national park, biosphere reserve,

sanctuary, habitat for migratory birds, archeological site, defense installation and airports

within 10 km of the periphery of the lease area. The area does not fall in seismically active

or landslide prone zone.

The area has sub-dendritic pattern of drainage. The principal drainage channel of the

Sukinda valley - the Damsal Nala flows from east to west along the length of the valley.

Several seasonal and perennial channels flow down from the Daitari and Mahagiri Hill ranges

to join Damsal Nala. Damsal Nala gradually bends towards south-west and on emerging from

Sukinda valley turns south to join the Brahmani River. Damsal Nala flows through the

northern part of the lease. There are also a few small seasonal drainage channels in the

lease which drain into Damsal Nala.

4.4 LAND USE

The mine lease is spread over 382.709 ha which comprises of 267.21 ha forest land

[including Mahagiri PF], 88.995 ha agricultural land, 20.377 ha waste land, Nil

grazing land, 3.753 ha is surface water bodies, 1.865 ha is Road and 0.509 ha is

others (settlements).

Table 7.0: Existing landuse Area, (ha)

Sr.No. Heads land use

1 Excavated area (Ultimate Pit) 21.25

2 Waste Dump 12.57

3 Mineral storage/ Sub grade 126.68

4 Infrastructure 41.80

5 Roads 4.56

6 Safety Zone *26.25

7 Undisturbed land & Nala -

Total 206.86

Note: Excluding * as shown in the above table.

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Studies will be conducted for underground development of the ore deposit. All necessary

studies required for developing an underground mine in soft strata will be carried out

followed with acquisition of permissions from the concerned statutory agencies for opening

the mine by underground method. The post mining land use thereafter is given below:

Table 8.0: Post mining landuse

Landuse Area, ha

Partly backfilled and afforestated mined out voids 142.81

Other afforestated area 123.26

Roads 1.54

Remaining untouched areas 115.099

Total 382.709

4.5 EXISTING INFRASTRUCTURE

Basic infrastructure is available in the mine to facilitate the workings. They are mine offices,

workshop, garage, rest shelter, first aid station, site store, , Time office, Canteen, laboratory,

etc. The Explosives magazine & V.T. centre of Kalarangi chromite mines are in common

use.

4.6 SOIL CLASSIFICATION & VEGETATION

A total of 3,48,106 m3 of topsoil will be generated from the freshly broken area which will be

utilized for concurrent afforestation over the dumps & also for avenue plantation due to very

low shelf life of the lateritic soils. The phase-wise generation of topsoil is given in table 4.4.

Table 9.0: Top soil generation

Year Top Soil

Generation, (m3)

2014-15 2591

2015-16 nil

2016-17 nil

2017-18 2564

2018-19 nil

2019- End of work 342951

Total 348106

4.7 CLIMATE

The study area lies in tropical region where climate is characterised by very hot summers

and mild winters. Summer is typically from March to June when daily average maximum

temperature ranges from a maximum of 39°C during daytime to a minimum of 22°C at

night. Winter is from November to February when daily average maximum temperature

during day time goes up to 32°C and minimum temperature at night becomes as low as

15°C. The average annual rainfall as recorded at IMD observatory at Cuttack is 1475.3 mm.

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4.8 SOCIAL INFRASTRUCTURE AVAILABLE

Certain social infrastructures (viz. Township, School etc.) are already in place at

Kaliapani (adjoining lease of OMC). Additionally schools, market complex, play

ground, water reservoir, Guest house, temple and public utility area already exists in

near buffer of Sukurangi ML.

5.0 PLANNING BRIEF

5.1 PLANNING CONCEPT

The proposed project envisages expanding an existing open cast mine. The basic

infrastructure required for the expansion is already in place. The proposed rated capacity of

the mine (0.3 Mt/yr of chromite ore) will be attained in 2015-16.

5.2 LAND USE PLANNING

Mine out land:

The land use pattern at the end of conceptual period for the total lease area of 382.709 ha

is given below in Table 10.

Table 10: Stage-wise land use Area, (ha)

S.No Particulars Existing

land use

Land use at the

end of 5 year

Conceptual

land use

1 Excavated area (Ultimate Pit) 21.25 26.82 142.81

2 Waste Dump 12.57 65.08 95.29

3 Mineral storage/ Sub grade 126.68 124.425 19.61

4 Infrastructure 41.80 6.99 8.36

5 Roads 4.56 5.52 1.54

6 Safety Zone *26.25 *26.25 26.25

7 Untouched land & Nala - - 88.849

Total 206.86 228.835 382.709

Note: Excluding * as shown in the above table.

Studies will be conducted for underground development of the ore deposit. All necessary

studies required for developing an underground mine in soft strata will be carried out

followed with acquisition of permissions from the concerned statutory agencies for opening

the mine by underground method. The post mining land use thereafter is given below:

Table 11: Post mining landuse Figures are in (ha)

Post mining land use Area

Partly backfilled and afforestated mined out voids 142.81

Other afforestated area 123.26

Roads 1.54

Remaining untouched areas 115.099

Total 382.709

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The excavated area will be partly backfilled from the existing waste dumps prevailing over

the lease at that time and all proposed underground mine openings will be properly plugged

from the surface. The top area of the pit will be fenced to prevent any inadvertent

movement of persons into the area. The infrastructure built up will be de-commissioned and

the total area covered under refuse dumps, mineral storage and infrastructure will be

afforestated by plantation of a total no. of 29000 saplings. At the post mining stage the area

will have partly backfilled mined out voids surrounded from all the sides by plantation and

dense avenue plantation.

5.3 ASSESSMENT OF INFRASTRUCTURE DEMAND

Most of the infrastructures required for the project are already in existence.

5.4 AMENITIES / FACILITIES

All basic amenities are already in existence.

6.0 PROPOSED INFRASTRUCTURE

The area is well connected by road and rail network. The area is self sufficient to cater the

needs of the proposed project; hence, no additional area is proposed to be acquired.

Green Belt & Plantations:

The achievement position as against the target in respect of Afforestation is given below:.

Table 12:Overall Targets for Afforestation

Year Afforestation,

(in numbers)

Planned Actual, Nos.

2009-10 7500 NIL

2010-11 7500 2500

2011-12 8000 1500

2012-13 8000 4000

2013-14 10250 2000

Total 41250 10000

The afforestation is only 24% of the planned figure. As dumps were formed by progressive

method of dumping simultaneous afforestation could not be carried out.

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CSR Activities:

OMC to provide updated CSR activities in the format given below:

Sl.No Name of the organization Purpose Expenditure (in Rs. Lakhs)

For 2013-14

1 The Tahasildar, Sukinda

Tahasil Office, Jajpur

Financial Assistance for Wire-net

Fencing of the Office Premises of

Sukinda. Tahasil Office.

4.56

2 The President, Jahnnagiri

Samata Mohotsav,

Badaghumuri, Plot No. 212,

Shastri Nagar, Bidyutmarg,

Bhubaneswar-1

Financial Assistance towards release

of an Advertisement in the Souvenir

"Jahnnagiri Samata Mohotsav",

Jajpur

0.1

3 The Regional Manager, OMC

Ltd. J.K Road,

Financial Assistance for Observation

of Car-festival-2O13 al Sukinda

1.0

4 The President, Saraswat

Sahitya Sanskrutika Parishad,

(BARTIKA), Regd, Office:

Sanskruti Bhavan, Saraswat

Vihar,, AT/PO: Dasarathpur,

Dist Jajpur- 755006 (Odisha)

For release of an Advt. in their

Literary Magazine Saraswat Sarinira

Saswat Sanket 'BARTIKA' published

on the occasion of Durga Puja

Special issue, October, 2013

0.1

5 The Editor, GOKARNIl(A,

(Odisha Sahitya Patrika),

Estd. 1978, Regd.

No.41060/82, AT/PO :

Jaraka, Dist: Jaipur-755050

for Release of an Advertisement in

their Magazine .GOKARNIKA'

published on the Occasion of Puja

Special issue on 4th October,20'13

0.05

6 The Editor,the JHADA, R.N.l.

Regd. No.- ORIORI/2005/1

5881, At- Naharapur, Jaipur

Town. Jajpur- 755001

Financial Assistances for Release of

an Advertisement in their Magazine

"The Jhada".

0.1

7 The Editor, GANGASHIULI,

AVPO: - Jaraka, Dist Jajpur,

Pin- 755050

Financial Assistances for Release of

an Advertisement in their Journal

“GANGASHIULI''

0.05

8 The Editor, SARASWATA

SARANSA,(Quarterly Odiya

Literary Magazine),

Narasinghapur, Kodandaour.

Jaipur. Odisha

For release of an advertisement in

their quarterly Magazine

"SARASWATA SARANSA

0.025

9 The Regional Manager, OMC

Ltd. J.K Road, Dist Jajpur

Financial Assistance to District

Environment Society, Jajpur for

Environmental Awareness and other

0.2

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Environmental Activities.

10 The General Secretary,

LAWYERS' FORUM, JAJPUR

ROAD, OffiCC: Court Campus,

Dhabalgiri, Jajpur Road,

Odisha- 755019

Financial Assistance towards release

of Advt. in their Souvenir published

on the occasion of42nd Annual

Conference of the All Odisha

Lawyers' Association, Jajpur

2.0

11 The Regional Manager, OMC

Ltd., Jaiour Road. Jaiour

Financial Assistances for Organizing

“4th Jaipur Zilla Mahotsav-2014".

5.0

12 The Editor, GOKARNTKA,

At/P.O.: Jaraka, District:

Jajpur- 755050 (Odisha)

Financial Assistances for Release of

an Advertisement in their Magazine

0.05

Total 13.235

For 2014-15

1 The AGM(Civil); OMC Ltd.,

HO

Renovation of Pond at Village

Sukurangi inside Kaliapani GP in the

District of Jaipur

4.95

2 The RM, J.K. Road, OMC Ltd.,

Dist: Jaipur

Financial assistance to District Red

Cross Societv. Jajpur

5.0

3 The Regional Manager, OMC

Ltd. J.K Road. Jajpur

Financial Assistance for Observation

of Car-festival - 2014 at Sukinda

1.0

4 The Collector & District

Magistrate, Jajpur

Financial assistance for improvement

of Zill School play ground instead of

Biraia women's College play ground

50.0

5 The President, Saraswat

Sahitya Sanskrutika Parishad,

(BARTIKA), Regd. Office:

Sanskruti Bhavan, Saraswat

Vihar, , AT/PO: Dasarathpur,

Dist Jaipur- 755006

For release of an Advt. in their

Literary Magazine : "BARTIKA"

published on the occasion of Durga

Puja Special lssue, October,2014

0.1

6 The President, Jajpur District

Lekhaka Sammelan, AU PO:

Jaraka, Dist- Jaiour-755050

Financial Assistances for release of

Advertisement in their Souvenir

0.15

7 The RM, J.K. Road., OMC Ltd.

Jajpur

Financial Assistance to NGBM High

School, Saruabil, Kansa GP

3.5

8 The RM, J.K. Road, OMC Ltd.

Jajpur

Financial Assistance to Organize 17"

Jogi Munda Memorial Adivasi Football

Tournament-2014

0.25

9 The President, Jajpur

District Lekhaka Sammelan,

AU PO; Jaraka. Dist- Jaiour-

755050

Financial Assistance for release of

Advertisement in their Souvenir

0.15

Total 65.1

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 23 of 24

For 2015-16

1 The Editor, GOKARNIKA,

(Odia Sahitya Patrika), Estd.

1978, Regd. No. 41060/82,

AT/PO: Jaraka, Dist: Jaipur-

755050

for Release of an Advertisement in

their Odia Journal “GOKARNIKA”

0.1

2 The Secretary, CENTRE FOR

INTEGRATED DEVELOPM

ENT (CISD), At- Upulai, PO:

Naguan, Jajpur

Financial assistance to Orphan Home

"Sai Karnashram, Rasagovindapur

Btock of Mayurbhanj District for

purchasing Acquaguard, Cots etc.

0.25

3 Regional Manager, JK Road,

Dist: Jajpur

Rs.5.00 lakhs for construction of

Hand wash basins at all tribal

residential Schools of Sukinda Block

and Rs.25.00 lakhs for construction

of multipurpose utility hall at

Chingudipal Ashram School (Sub

total Rs.30.00 lakhs

30.0

4 The Regional Manager, OMC

Ltd. J.K Road. Jaipur

Financial Assistance for Observation

of Car-Festlval-2015 at Sukinda

0.25

Total 30.6

7.0 REHABILITATION & RESETTLEMENT (R&R) PLAN

No rehabilitation and resettlement of land oustees are involved in the project since no

private land will be involved for mining activity.

8.0 PROJECT SCHEDULE & COST ESTIMATE

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

The mine is already producing at a rated capacity of 0.13 Mt/yr. The rated capacity of the

mine 0.3 Mt/yr will be attained by the end of the scheme period, after receipt of necessary

statutory clearances.

8.2 ESTIMATED PROJECT COST ALONG AND ECONOMIC VIABILITY OF THE PROJECT

No massive injection of capital cost has been envisaged for expansion of Sukurangi

chromite ore mines. The capital cost envisaged for the next five years is Rs. 20/-

Crore. The estimated production cost (including depreciation & interest) at 100%

capacity utilization after proposed expansion will be ~ Rs 3241 per tonne at rated

capacity (chromite ore). The entire ore produced will be sold to long term buyers for use

in their steel plants.

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Pre-Feasibility Report Expansion of Sukurangi chromite Mining Project

©, 2015 MECON LIMITED, All rights reserved

Page 24 of 24

Table 13: Item-wise break-up of Project Cost

Major Head Amount in crores

Exploration & Development 3.20

Land, Building & Infrastructure 1.50

Plant, Machinery & equipment 3.50

Other facilities 1.20

Cost towards Net present

Value

16.35

Compensatory Afforestation

Cost

0.25

Wildlife Management Cost 0.35

Capital cost towards

environmental monitoring and

recurring cost towards control

measures

0.25

Site specific Wildlife

Conservation Plan

0.95

Land Premium 0.23

Total 27.78

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

The project will have the following benefits:

The project will increase the supply of chrome ore for the domestic steel industry.

Sukuranagi chromite mine is the nearest chrome ore source for the integrated steel

plants in Kalinganagar Industrial Complex.

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 expansion 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 points coming up of the expansion project of Sukurangi chromite

mines has become necessary.

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