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Nlc India Limited Mine-Ii NLC INDIA LIMITED ('Navratna' - A Government of India Enterprise) MINE-II PRE-FEASIBILTY REPORT FOR MINING OF LIGNITE & ASSOCIATED MINERALS (Silica sand & Ball clay) PRE-FEASIBILITY REPORT FOR MINING OF LIGNITE & ASSOCIATED MATERIALS AT MINE-II 1. INTRODUCTION: NLC India Limited, (NLCIL) formerly (Neyveli Lignite Corporation limited) is Navaratna, a Government of India Enterprise registered under Indian Companies Act, 1956, engaged in commercial exploitation of the Lignite deposit available at Neyveli region. NLCIL is engaged in commercial mining of the Lignite deposit available at Neyveli region in Tamil Nadu as well as in Rajasthan. Four lignite mines having a combined production capacity of 30.6 MTPA feeding lignite to thermal power stations having a combined generating capacity of 3240 MW. NLCIL is operating 1000 MW Coal based Thermal Power Station as joint venture project with NLC Tamilnadu Power Limited. The total power generating capacity of NLCIL is 4240 MW. In addition, NLCIL is also supplying lignite (1.9 MT/Y) to an Independent Power Plant (TAQA) of 250 MW generation capacity. A New Neyveli Thermal Power Station (NNTPS) of 1,000 MW generation capacity at Neyveli is under commissioning as a replacement for the existing TPS-I of 600 MW. In the Non-Conventional Energy Sector, 51 MW wind power project and 640 MW Solar Power Project has been commissioned in Tamilnadu while another 709 MW at Neyveli is under implementation stage. NLCIL has signed a JV agreement with UP Government to establish a 1980 MW Power Station (3 x 660MW) at Ghatampur, Uttar Pradesh and the project is at the execution phase. The below tables show the NLCIL existing operating projects. Another 3200 MW (4 x 800 MW) coal based Power Plant is planned in Odisha utilizing the coal from Talabira mine. EXISTING NLCIL OPERATING MINES Lignite Production capacity Sl. No. Existing Mine per annum in MT 1 Mine-I at Neyveli, Tamilnadu 10.5 2 Mine-IA at Neyveli, Tamilnadu 3.0 3 Mine-II at Neyveli, Tamilnadu 15.0 4 Barsingsar, Rajasthan 2.10 Total 30.60 EXISTING NLCIL OPERATING SOLAR & WIND POWER PLANTS Existing NLCIL Renewable Energy Power units Sl. No. Power Units Capacity in MW 1 Solar Power Plant at Neyveli, Tamilnadu 140 MW 2 Solar Power Plant at South Tamilnadu 600 3 Wind power plant at Tirunelveli District, Tamilnadu 51 Total Renewable Energy Power plant capacity 791 1.0 PROJECT DETAILS: The applicant , Mine-II is a existing operating mine with a capacity of 15 MTPA to cater Thermal Power Station - II & Thermal Power Station - II Expansion. of 1970 MW. It is one of the important project at National level. In order to expose lignite, overburden thickness of 45m to 112m has to be removed as waste. The Overburden consisting of lateritic loam or blackish grey alluvial clay with Kanker, Cuddalore group of sedimentaries, Sporadic occurrences of hand ferruginous and siliceous sandstones, unconsolidated sandstone with admixture of clay and silica sand occurring immediately above lignite and alternate layers of sand and clays below lignite. During the process of overburden removal and Lignite excavation, economic bands of clay and silica sand occurring within these formations were found which are segregated towards conserving natural resources. For lignite production capacity of 15 MTPA of Mine-II, Environment Clearance from Ministry of Environment and Forest was obtained during December, 2002. The corresponding Environmental Impact Assessment report prepared by M/S Vimta labs earlier considered lignite as the main product and did not consider the recovery of clay & silica sand which occurs sporadically. Now it is proposed to include the clay & silica sand as an associated product with lignite, for which an amendment in EC is required incorporating the recovery of clay & silica sand. Hence this pre feasibility report is prepared for submission to MOEF & CC. 2. DETAILS ABOUT THE MINE: The salient features of the project are given below: Project name NLCIL, Lignite Mine-II (Open cast) Project proponent NLC India Ltd. Villages in the Mine area Spread of Mining area in part/full of the following villages: Kammapuram, Kottagam, Seplanatham, Siruvarappu, Uyyakondaravi, Sathapadi, U. Adanur, Valaymadevei Keelpadi, Valayamadevi Melpadi, Agaram, Arasakuzhi, Kulapakkam, Kumaramagalam, Gopolapuram, Aziz Nagar, U.Mangalam, Uthangal, Vadakkuvellur, Veppanakurichi, Kathazhai, Managathi, Melpapanapattu, Mummudicholagam, Neyveli, Seplanatham & Maduvanamedu. Longitude / Latitude Mine –II, Area Code Latitude Longitude o o o o 1 11 27” and 11 32” N 79 27”and 79 35” E Total Mine project Area Mine II & Mine II Expn. is 7193.975 Ha. Reserve Lignite: Geological Reserves : 622 MT, Mineable reserve : 595.69 MT, Mined Out : 304.27 MT (as on 31.03.2019) Balance Extractable Reserves : 291.42 MT The occurrence of silica sand and ball clay is sporadic in nature, the reserves in the mine advancing front is estimated as below Silica sand: Mineable reserve : 32.37 LT Ball Clay: Mineable reserve : 26.88 LT Rated capacity (per annum) Lignite : 15.00 MT; Silica Sand : 02.00 LT; Ball clay : 00.50 LT Life of the mine 20 years (considering balance lignite reserve mined at 15 Mt per annum) Stripping ratio (OB/Lignite) 5.20:1 m³/T Overburden & Lignite: SME Technology (BWEs, Conveyors, Spreaders) Method of Mining & Transportation Overburden & Lignite associated materials (ball clay & silica sand): SME/ CME (shovel & dumper combination) as per site conditions. Overburden quantity 1510 Mm3 (to be removed) Working days 365 days/year (3 shifts of 8 hour each) Average number of persons worked during 2018-19 through direct Manpower employment is 2448 and employed through contractor is 1808. Cost of the project for 4.7 MTPA: Rs.278 Crs. Cost of the project Cost of the project for 10.5 MTPA: Rs.1065.4 Crs. Cost of the project for 15.0 MTPA: Rs.2295.93 Crs. Elevation +15 m to +27 m above mean sea level (msl) Topography Flat Mining lease: NLCIL was granted Mining Lease for mining in the region for a period of 20 years with effect from 6.12.1956 . Thereafter upon its expiry, first renewal of the aforesaid lease was granted for a period from 6.12.1976 to 5.12.1996 and second renewal was granted for a period from 6.12.1996 to 5.12.2016. Copy of composite Lease document of Neyveli Lignite Field (259 Sq.km) is enclosed which is valid up to 2016. For third renewal of mining lease, application submitted to the Tamilnadu state Geology and Mining department, Chennai through District collector, Cuddalore on 04.12.2015 before the expiry of lease. As per the Rule 24-A(6) of the Mineral Concession Rules, 1960, if the renewal application of mining lease submitted twelve months before the date of expiry of the lease period, the period of lease shall be deemed to have been extended by a further period till the State Govt. grants the lease. 3. Need for the project and its importance to the country and or region Mine-II is an operating unit and feeding lignite to Thermal Power Station-II & II Expansion. The exploration studies carried out and our past mining operation has showed that in addition to lignite occurrence, sporadic occurrence of silica sand and ball clay was noticed. There is demand in market for silica sand used in glass making and ball clay used in making ceramic materials. In addition to lignite, recovery of silica sand and ball clay also will bring good return to State as well as Central Governments in the form of royalty and taxes. Therefore this proposal is very much essential in the perspective of conservation of these valuable raw materials, which otherwise would go as waste to the dump yard. INDEX MAP OF MINE-II 4. Land use The Project area for Mine-II project is 7193.975 Ha which includes mine area, external dump area and infrastructure. In addition 159.645 Ha land is envisaged for formation of Re-settlement centers for displaced people. The present land use breakup details is given below: LAND USE DETAILS TILL 31.03.2019 BREAK-UP Sl. No. Land use Area in Ha 1 Area mined out 2355.61 2 Area reclaimed 874.50 3 Area afforested 670.50 4 No. of tree plantations 1320650 5 External OB Dump 1242.35 Reclamation and afforestation of overburden dumps is being carried out progressively as per approved Mine Closure Plan. 5. Demand-supply gap: There is a good demand in market for silica sand used in glass making and ball clay used in making ceramic materials. Mining these materials will increase State as well as Central Governments income in the form of royalty and taxes and contributes to nation’s growth by meeting market’s demand. 6. Imports vs. indigenous production Indigenous production benefits the community through direct and indirect employment creation. There is no import of this silica sand and ball clay at present. 7. Export possibility There is no export of this quality of silica sand and ball clay at present as there is demand in the country itself for these products. 8. Employment generation: At present about 4,256 number of persons employed inclusive of both direct employment and employed through contractor. There is no additional manpower requirement for recovery of silica sand and ball clay. 9. PROJECT DESCRIPTION Mine II project area : 7193.975 Ha. Mining area : 4122 Ha. Lignite Mining Capacity : 15.0MTPA Details of alternate sites & Environmental considerations and Basis of selecting the proposed site: Lignite deposition is site specific and mining in this area is inevitable. Hence, no alternate site could be considered. In order to exploit lignite, the overburden removal is carried out as a waste material during the removal of overburden ball clay and silca sand also mined out.
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