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Pre Feasibility Report

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Pre Feasibility Report PRE FEASIBILITY REPORT CHAPTER 1: EXECUTIVE SUMMARY Malabar Cements Ltd., a fully owned Govt. of Kerala Undertaking, is synonymous with superior quality cements, vouched by customers spread across the state of Kerala. The Company was incorporated in April 1978 and commenced production in April 1984 at its cement plant located at Walayar. Malabar cement limited has more than 30 years of experience in cement industry and limestone Mining. The project involves production of limestone from the existing mine over a lease area of 234.9407 ha, located at S.F. Nos. 1580/2 and 1580/3 of Pudussery East Village, 866/1, 867/12, 867/13, 867/14, 868/2, 869/1, 874/33 of Malampuzha I Village, Palakkad Taluk & District, Kerala. Limestone requirement of the Walayar cement plant is being sourced from subject captive mine of 234.9407 ha located about 5.0 km aerial distance from the cement plant area. Limestone Mine with about 10 Million Tons of mineable reserves will last for about 16 years with annual production capacity of 6,00,000 Tons. The life of the mine is expected to revise after completing exploration of the current scheme of mining and reassessment of reserves. Open Cast Mechanized Method of Mining is adopted. The Limestone produced is crushed within the mine and transported through ropeway to the cement plant. The anticipated waste generation during the entire life of mining is about 9.587 Million Tons. During the scheme period of 2016-2021, waste generation is expected as 6,72,280 m3 (4,76,200 m3 Overburden + 1,96,080 m3 Intercalated) which is being dumped in the existing dump area of 27.47 ha. Water requirement for the operation of mine is about 25 m3/day for dust suppression, plantation and domestic purposes. This requirement is being met from mine pit water. The topography of the area is highly rugged with steep slopes towards south. The lease area in general consists of rugged hill ranges with steeply rising ridges and narrow valleys forming a part of the Western Ghats. The area falls on the slope of hillock tending east west in the eastern part, highest point of 635m RL and the lowest point of 285m RL have been recorded. The deposit, situated at an altitude of over 520m RL, lies to the North of the famous “Palakkad Gap”. The limestone deposit occurs along an east-west trending ridge, designated as 475.8m in the toposheet. The cost for the production of Limestone is Rs. 521.23 per Ton. All infrastructural facilities are already available in the Mining lease area. 1 December 2017 PRE FEASIBILITY REPORT Table - 1.1 : SALIENT FEATURE OF THE PROJECT SITE Description Details Project Name Pandarathu Limestone Mine Mining Lease Area 234.9407 ha Location of Mine Pudussery East and Malampuzha I Village, Palakkad Taluk and District, Kerala Topo sheet number 58 B/13 Nearest city/town Palakkad - 12.6 km, SW (Aerial) Production capacity 6,00,000 Tons/Annum Total Waste generation 6,72,280 m3/annum (5 years) Method of mining Open Cast mechanized method Drilling/Blasting Controlled Blasting and drilling No. of working days 300 days Water demand 25 KLD Sources of water Mining Pit. Man power 222 Nos. Nearest railway station • Walayar Railway Station - 5.8 km, ESE • Palakkad Junction - 15.25 km, SW Nearest airport Coimbatore International Airport - 32 km (NE) Infrastructure The mine is having a dedicated road from the plant, which is well maintained by company. The Office complex contains all facilities like canteen, first aid room, Store, Generator room etc. which is well maintained. The mining labour are deployed locally and there is no need for housing or shelters. Temperature Max temp - 37.30 0c; Min Temp - 21.80 0c Rainfall - 2,135 mm/annum Project Cost Rs. 30.0 Crores 2 December 2017 PRE FEASIBILITY REPORT CHAPTER 2: INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION 2.1 Identification of the project and project proponent Malabar Cement Limited (MCL) is a Govt. of Kerala Undertaking Company incorporated in April 1978 and commenced production in April 1984 at its cement plant located at Walayar. Malabar cement limited has more than 30 years of experience in cement industry and limestone Mining. MCL has a mine lease for the production of Limestone in an area of 234.9407 ha at S.F. Nos. 1580/2 and 1580/3 of Pudussery East Village, 866/1, 867/12, 867/13, 867/14, 868/2, 869/1, 874/33 of Malampuzha I Villages, Palakkad Taluk, Palakkad District, Kerala. Malabar Cement Limited, has already obtained grant of Mining lease to produce Limestone over an extent of 234.9407 ha at S.F. Nos. 1580/2 and 1580/3 of Pudussery East Village, 866/1, 867/12, 867/13, 867/14, 868/2, 869/1, 874/33 of Malampuzha I Villages, Palakkad Taluk, Palakkad District, Kerala for 20 years. The mining lease was granted in G.O (MS) No.44/2000 Industries Department dated 25.09.1979 for 20 years up to 24.09.1999. The lease deed was executed on 04.08.1980. The lease has been renewed on 26.08.2003 for the period of 20 years up to 2023. Copy of mine lease and renewed lease deed is enclosed as Annexure – I & II. The Mining Plan was approved by Indian Bureau of Mines (IBM) vide Letter No.MP/PAL/Lst-29/SZ, dated 14.05.2002 under Rule 24(A) of MCR, 1960. The 1st Scheme of Mining was approved vide Letter No.MP/PAL/Lst-65/SZ dated 21.04.2006 under Rule 12 of MCDR, 1998. The 2nd scheme of mining was approved vide Letter No.MS/PAL/LST-173/SZ, dated 28.11.2011 for the period 2011-12 to 2015-16. The 3rd scheme of mining plan for the period 2016-17 to 2020-21 was approved vide Letter No. 279/464/95/BNG/336 dated 11.03.2016. Copies of above said approvals are enclosed as Annexure – III. Malabar Cement Limited is mining limestone of 6,00,000 Tons per Annum from August 1983 onwards from its existing mine lease area by open cast mechanized mining technique. This feasibility report is prepared towards obtaining the Environmental Clearance for the existing mine lease. For obtaining Environmental Clearance, as per MoEF&CC Notification of September 2006 and its subsequent amendment, TOR application consists of Form - 1 & Pre-Feasibility Report has to be submitted along with proposed Terms of Reference (ToR) for appraisal of the project by EAC and grant of ToR. 3 December 2017 PRE FEASIBILITY REPORT Accordingly the lessee has to evaluate the possible environmental aspects and their associated impacts that will be raised due to the production of Limestone and to delineate the management plan to prevent, control, mitigate or minimize the adverse environmental impacts envisaged. In this regard, the applicant has appointed M/s. ABC Techno Labs India Private Limited, Chennai, who is accredited by National Accreditation Board for Education and Training (NABET) to prepare Environmental Impact Assessment (EIA) report including Environmental Management Plan to mitigate any adverse impacts to the Environment. 2.2 Brief description of nature the project Pandarathu Limestone Mine lease area is a Vested Forest Land (234.9407 Ha), situated at S.F. Nos. 1580/2 and 1580/3 of Pudussery East Village, 866/1, 867/12, 867/13, 867/14, 868/2, 869/1, 874/33 of Malampuzha I Village, Palakkad Taluk & District, Kerala and adopts the open cast Mechanized method (drilling & blasting) of mining. The Limestone is extracted with the help of machineries for digging, excavation. All operations of mining, including drilling, blasting, excavation, loading & transportation on three shift basis shall form the complete mining operation. 2.3 Need for the project and its importance to the country and region The Limestone produced from these mines is captive consummations of Malabar Cements Limited. The mine is in operation from the year 1980 onwards in an interior backward rural area with very little social and infrastructural facilities. It is a Government of Kerala undertaking company and it is the only cement manufacturing company in Kerala which is controlling the price of cement in Kerala. The mining operations by Malabar Cements in this area have brought improvement in social, infrastructural and employment sectors in the area. Besides above benefits, financial accruals will be derived by Central, State governments and local Panchayat on account of royalty, cess, duties, etc., from project output. Cement being a core infrastructural sector component, limestone supplies for cement manufacture also assumes great importance. In view of above aspects, it can be seen that the project is a prime need for growth of backward area of the region and for GDP growth in state/central areas. The project will also improve the Human Development Index (HDI) of the area. 2.4 Demand Supply Gap Limestone is the main raw material for cement production; the demand is always there with that of cement. The mine produces good grade limestone leading to conservation of 4 December 2017 PRE FEASIBILITY REPORT mineral resources. The cement market has growth due to the central government liberalization policies and new schemes for housing, road projects. The cement demand growth is anticipated to increase on infrastructure development and the higher demand from the housing sector & industrial projects. 2.5 Import Vs Indigenous Production There is no import of Limestone at present in India. India especially the southern India has good resource of Limestone and has a great demand in the international super market. Indigenous Limestone almost shares more than 50% requirement in the world. 2.6 Export Possibility Export is not envisaged as the entire quantity of limestone is being consumed by the captive cement plant located in Walayar.
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