PRE FEASIBILITY REPORT

1. Introduction 1. Identification of project and project proponent The Manganese ore deposit lease area is located at village – Pandharwani, Taluka – Khairlanji, District (MP). 4.232 ha lease area with capacity expansion from 2000 TPA to 3600 TPA is being operated by the lessee M/s D. P. Rai, having office at “Nanhaka”, 10, East High Court Road, Ramdeshpeth, Nagpur (M/S) with valid consent to operate. The lease area was sanction for 20 year from 11.05.98 to10.05.2018. 2. Brief description of nature of the project Manganese ore mining has been carried out by opencast manual method and proposed mining will be carried out by opencast as well as underground other than fully mechanized method. 3. Need for the project and its importance to the country and or region Minerals are the chief source of industrialization and play an important role in the present phase of the national economy and overall development of the nation. Manganese ore is of vital importance in industrial economy as manganese is an essential constituent of steel and there is no satisfactory substitute for making of steel in which it is present from 0.5% to 0.75%. Mn ore also use in dry cell batteries, driers for paints and varnishes, as a coloring agent in ceramics and for production of permanganate and other chemicals. Mineral resources of any country are the “TREASURE-TROVE” of its national economy; the State of is richly endowed with mineral wealth. It is the sole producer of diamond in the country. Coal, limestone, manganese ore, bauxite, copper ore, dolomite, fire clay, slate pyrophyllite-diaspore are the main minerals occurring in the State. Besides these minerals, the state is fast emerging as a dimensional stone producer. The State is blessed with favorable geological and geotectonic settings. Rocks ranging from Precambrian to recent era to accommodate every episode of mineralisation are present. In terms of the mineral production the state ranks third next only to Jharkhand and Chhattisgarh. The rich mineral wealth provides ample scope for the development mineral based industry in the State. State is enriched with good deposit of manganese ore mainly spread over in the Balaghat, and Jhabua districts. The total reserves of 23.64 million tonnes of manganese ore are available in the State constituting 14.09% of total national reserve. The "Bharveli manganese mine" in is largest underground mine operating in Asian sub-continent. The manganese ore deposits of the State are being exploited mainly by the Manganese Ore Limited. During the year 2001-02, manganese ore has contributed Rs. 1.51 crores as royalty to the State Exchequer. 4. Demand –Supply gap Currently there is a gap of 0.5 million tonnes between demand and supply of high grade manganese ore. The demand is only going to increase in the coming years as the high grade deposits deplete. 5. Imports vs. Indigenous production Going by planning commission projection, the total domestic production is expected to reach 4.2 million tonnes by the end of five year plan, but then 2.5 million tonnes will still have to be imported to meet steel sector's demand. 6. Export possibility India annually exports about 15 per cent of ill total production of manganese ore. However, there has been gradual decline in the quantity of export since 1971 on ward. In 1960-61 India exported 11.661 lakh tones of manganese ore valued at Rs. 221 million. This reached the record high of 16.36 lakh tones valued at Rs. 140 million but fell down to 2.65 lakh tones and valued at Rs. 595 million in9 2000-01. Table I7.XIII gives some idea about the trends of manganese ore export from India. Bulk of this export goes to Japan (60 per cent), France, Czech, Slovakia, United Kingdom, United States, Belgium, Germany, Canada and South Korea. Kolkata, Vishakhapatnam, Maragos, Chennai and Mumbai are the main ports which handle the export. The declining trend in export is mainly attributed to stiff competition from the South Africa, Mexico, Brazil, Australia etc; lack of demand, low price, increasing domestic consumption and restriction imposed on the export of high grade ores. Emphasis on the export of Ferro-manganese instead of raw ore would fetch higher prices in the international market.

7. Employment generation (direct and indirect) due to the project During mining operation about 25-30laboures i.e. skilled, semi-skilled and un- skilled will be required Indirect employment - Driver, cleaner for loader & dumper, loading and unloading points where labours are required. 2. Project description 1. Types of project: Mining project of Manganese ore 2. Location of the Project District/ Taluka Village Khasara no. Area in Ownership State ha of land Balaghat, Khairlanji Pandharwani 1P, 2P, 4P, 9P, 10P, 4.232 Govt. and MP 11P private land

2 The mining lease area is located in survey of India Toposheet no. 55 O/13 lies between the longitude 79o50’26.5’’-79o50’39.80’’ East & Latitude 21o37’27.6’’- 21o37’36.6’’ North. Use of Minerals Manganese ores are vital importance in industrial economy as manganese is an essential constituent of steel and there is no satisfactory substitute for it in the making of steel in which it is present from 0.5% to 0.75%. Mn ore also use in dry cell batteries, manufacture of driers for paints and varnishes, as a coloring agent in ceramics and for the production of permanganate and other manganese chemicals. 3. Details of alternate site: Mining is site specific project and mineral deposit has been identified by certifying agency; hence alternative site is not applicable. 4. Size or magnitude of operation: The total lease area 4.232 ha area and capacity expansion from 2000TPA to 3600 TPA through opencast as well as underground other than fully mechanized mining method. 5. Project description with process details: Opencast as well as underground other than fully mechanical mining method will be adopted. Loading and unloading on trucks has been done by excavator cum loader. Presently 1.1109ha area has been excavated during past mining activity upto 330mRLm and during conceptual period working is being carried out in same pit in depth wise. No further excavation will be carried out. During the first year working main incline and vertical winze/shaft in the ore zone will be developed for underground working. The main incline is proposed upto excavated till mRL 240 and vertical winze/shaft upto mRL 250. During the conceptual period dump ore working also done. During the conceptual period about 0.9861ha will be backfilled using mine waste and rest of area will be backfilled using water. Reserves and resources estimation during the year Category wise updated reserves and resources with grade Classification Code Quantity Grade Total float Mineral reserve 20482 Ferro Alloy Total Mineral Resources 20482 (A)Mineral Reserves (1)Probable Mineral 122 20482 As above Reserve (B) Remaining Resources (1) Prefeasibility Mineral 222 ------Resource (2) Inferred Mineral 333 ------Resource

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Mineable ore reserve and anticipated life of the mine: The mineable reserves and the life of the mine are calculated on the basis of reserves in Probable Category. (1) Reserves in Probable Category: 20482Tonnes (2) Reserves in proved category: 12602Tonnes (3) Total reserves – 33084Tonnes Next five year production- 12940Tonne Mine life- (33084-12940)/3582 = 5.62 + 5 years = 11.62 say 12years Blasting In case of blasting in underground, two types blasting patterns are followed, one is for blasting in openings having single free face and the other is one having two-three faces. Single free face blasting is called solid Blasting and than one free faces working do not require any pattern but an optimum spacing and burdens are definitely required. A typical drilling and blasting pattern proposed. Type of explosive to be used  32mm dia holes by rock-drill mounted on pusher Leg/air leg  Explosive small dia Slurry or emulsion 80% strength, along with electric delay detonators Whether secondary blasting is needed:- Secondary blasting will not be needed. Storage of explosive:- Lessee having its own licensed explosive magazine and explosive van Precautions to be observed during and blasting:- A qualified blaster having blasters certificate will do blasting. Muffle blasting and wet drilling will be done to control flying rock particles to avoid effect of blasting on nearby fields Reclamation/Backfilling: During the conceptual period about 0.9861ha area will be backfilled using mine waste. 6 Raw Material Requirement: No raw material is required for the mining of Manganese ore 7 Recycling and Reuse During the conceptual period about 700tonne of sub-grade mineral will be generated. Presently two sub-grade dumps have been observed in lease area. During the conceptual period, dump ore working will be done. 8 Water source: There is no surface water course in the lease area. Electric System

4 The power requirement for the project will be met through DG set with capacity of 125 kva & MP State Electricity Board, which is available at near village. 9 Solid waste management: Presently as such 0.2ha area has been covered by 14000 m3 mine waste and overburden. 0.4266ha area has already been covered by sub-grade dump. During the conceptual period dump ore mining will be proposed and about 4100 m3 mineral will be sorting by old dump. During the next five year period about 80338 cum mine waste/ overburden will be generated and same will be used for backfilling purpose. 4 Site analysis i. Connectivity The applied area is approachable by all weather roads from Balaghat on Balaghat- – –Tumsar road, up to Garra chouki which is 66km from Balaghat. From Garra Chouki to lease area is 10.0km via Miragpur. ii. Land form, land use & land ownership: Land use of the area is govt. and private land. District/State Taluka Village Khasra No. Area in Ownership ha of land Balaghat, MP Khairlanji Pandharwani 1P, 2P, 4P, 9P, 4.232 Govt. and 10P, 11P private land iii. Topography :- Lease area is almost flat with soil cover having thickness of 3.5-4.0m. The general height of the area is around 361-358m from MSL. iv. Existing land use pattern: Existing land use pattern of the mining lease area is Govt. and private land. Details of nearest environmental setting of the lease area S. No. Particulars Details 1 Latitude 21o37’27.6’’-21o37’36.6’’ North 2 Longitude 79o50’26.5’’-79o50’39.80’’ East 3 Height above mean sea level 361-358AMSL 4 Nearest Town Katangi - 25 km 5 Nearest Railway Station – 14.50 km 6 Nearest Airport Nagpur - 120km 7 Nearest Highway Katangi-Tumsar PWD road- 5.50km 8 Nearest Village Jaithpura tola - 0.3 km – North east 9 Hills/Valley No 10 Ecological Sensitive Zone No 11 Historical Place No 12 Nearest River/ Nalla Bainganga River – SW – 6.50 km

5 v. Existing infrastructure: No infrastructure was exist within lease area. vi. Soil classification Local geology: The formation of the area belongs to mansard formation of saunsar group of Mesoproterozoic in age. The lease is contiguous to 14.90ha of the same lessee as such the exploration carried out in 14.90ha area is same for 4.232ha. Present pit up to 303mrl and 1600mm of exploratory drilling comprising 15 bore holes. Exploration proved an average 12m wide Mn ore body in central part of the area, running in NE to SW-W direction from 35m to 86m in depth. Depth increasing from west to NE direction from 35m to 86m. OB thickness varies from 3-4m lateritic soil cover followed by mica schist of average thickness 45m. OB thickness is decreasing from 95m to 10m in the same direction i.e. west to NE direction. In 4.232ha the Mn ore band is having an average width of 12m and depth or thickness is 35m. Earlier the ore body was exposed from 335m and due to exploration Mn ore mineralization reached up to mrl 303. The following are geological formation in the area: 1. Soil mixed with murrum 2. Mica schist along with quartzite 3. Manganese ore with gondite vii. Climate data from secondary sources The climatic conditions including temperature variations, wind direction and velocity, rainfall and humidity are governed by regional factors of monsoons. As such the mining and other allied activities will not tend to influence the climate. In the district climate is very pleasant except in summers. Except South West Monsoon rest of the year waves moves slowly. District's usual minimum temperature rests around 12-18 degree Celsius and maximum temperature raises upto 45-46 degree Celsius. May is the hottest month of the year. It is very excessive hot during summer and in the end of this season dustful storms come. When Mansoon reaches mercury goes very down. District's 90% rainfall observed in mansoon months only i.e. June to September. An average rainfall is of 60 days and measuring approximately 1350mm. During December-January it is very cold and average temperature during day time is around 14 degree Celsius. A sometimes cold wave also occurs and heavy fog also observed. viii. Social infrastructure available: The mining lease area is mostly surrounded by pandharwani, Pandharwani tola, Miragpur, Hathora, Hamesha villages in scattered fashion. The nearest village is Jaithpura tola at 0.25km distance.

6 4. Planning brief a. Planning concept: It is a mining project b. Population projection: The project is small in magnitude. No influx of population is expected as labour shall be deployed from the local villages. c. Land use planning (breakup along with green belt etc.) Items Existing At the end of conceptual period Total Mineable area 3.0831ha Ultimate depth of mining 46m bgl 46m bgl Ultimate pit slope 600 600 Area under dumps 0.2ha Nil Area under pits 1.1109ha 3.0831ha Area to be reclaimed Nil 0.9861 up to 18m Infrastructure & Road Nil Nil Mineral storage Nil Nil Plantation Nil 2.0ha Water reservoir 1.0ha 1.75ha

d. Assessment of infrastructure demand (physical and social) Mining Machineries like dumpers, excavator cum loader will be required for the manganese ore mining. e. Amenities/facilities: Rest shelters, Toilets, drinking water facilities, first aid facilities, and regular medical checkup facilities has already been provided for labours and their families. 5 Proposed infrastructure a. Industrial area (processing area): The project is mining project and hence site office shall be required. Processing of Manganese ore is proposed in the lease area by crushing. b. Residential area (non processing area): No residential area is proposed for the subject project. c. Green belt: During the lease period about 2.0 ha will be afforested. d. Connectivity (traffic and transportation road/rail/metro/water ways etc): The applied area is approachable by all weather roads from Balaghat on Balaghat- Waraseoni – Katangi –Tumsar road, up to Garra chouki which is 66km from Balaghat. From Garra Chouki to lease area is 10.0km via Miragpur. e. Drinking water management (source & supply of water): Drinking water is available in hand pump which is located within lease area.

7 f. Sewerage system: No construction or sewage waste is expected from the mining process. However the domestic waste from the toilets will be given treatment through septic tank and soak pit arrangement g. Industrial waste management: No industrial waste will be generated. h. Solid waste management: Presently as such 0.2ha area has been covered by 14000 m3 mine waste and overburden. 0.4266ha area has already been covered by sub-grade dump. During the conceptual period dump ore mining will be proposed and about 4100 m3 mineral will be sorting by old dump. During the next five year period about 80338cum mine waste/ overburden will be generated and same will be used for backfilling purpose. i. Power requirement & supply/source: The power requirement for the project will be met through DG set 6 Rehabilitation and Resettlement (R & R) Plan: No R&R plan is required as no displacement of people is proposed for the mining project. 7 Project Schedule and Cost estimates a. Likely date of start of construction and likely date of completion (time schedule for the project to be given) The subject mining project will be running but presently closed. b. Estimated project cost along with analysis in terms of economic viability of the project Small level mining activity has been carried out. 8 Analysis of proposal (final recommendations) i. Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area. The mining project has already been create local employment to the villagers and they will get employment.

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