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Jhillingburu - I Iron & Manganese Ore Mining Lease 1.0 EXECUTIVE SUMMARY: Jhillingburu-I Mine Lease forms a part of Gua Ore Mines, which was the captive mine of the erstwhile Indian Iron and Steel Company Ltd. (IISCO). Gua Ore Mines has been the captive source of iron ore for IISCO Steel Plant (ISP), Burnpur. Since the takeover of IISCO by SAIL, Gua Ore Mines is operated by the Raw Material Division of SAIL and supplies iron ore mainly to ISP, Burnpur. Initially the mining was carried out by the manual means, which was subsequently mechanized during 1958 by commissioning & erection of Ore Handling Plant. Gua Ore Mine is the first mechanized mine of the country. The mine has been developed under Duarguiburu Iron Ore Lease over an area of 1443.756 ha, the main & largest mining lease of the mine. The other three leases are Jhillingburu-I (210.526 ha), Jhillingburu-II (30.43 ha) and Topailore (14.16 ha). The Jhillingburu-I & Jhilingburu-II are the iron & manganese leases, while the Durgaiburu and Topailore are the iron ore leases. In addition there is also a Surface Right Area spread over 242.8 ha, where most of the infrastructure for the mines (township, railway siding etc.) is located. The Mining Lease for Jhillingburu - I was granted in favor of Indian Iron & Steel Company Ltd (IISCO) with effect from 12.5.1950 for 30 years. The renewal application was filed on 7.5.1979 for another 30 years period as per existing clauses of the lease deed. Presently the mine is under the control of the Raw Materials Division (RMD) of Steel Authority of India Limited (SAIL), which took over IISCO in 2006. The lease was thus due to expire by 11.5.2010 before which SAIL has filed the second renewal application on 05.05.2009. The lease is under deemed extension under the provisions of Mineral Concession Rules, 1960. Mining Plan is approved by IBM for a period of 20 years vide letter no. 314(3)/2010- MCCM(C)/MP-14 dated 10.02.2011. The lease is primarily a manganese ore mining lease. The mine had operated during the period 1961 – 1971 with maximum production of 42532 t/yr of manganese ore in 1964. Mining resumed in 2008, but has been suspended for want of environmental clearances. The present proposal envisages resumption of mining @ 61362 t/yr of manganese ore. The expected life of the mines is 16 years. The manganese and iron ores deposit of Gua, form an important part of the Iron Ore series of Bonai Range and is a part of famous “Horse Shoe” shaped manganese and iron ores belt of Jharkhand- Orissa belt. In general area has a rugged hilly topography. The first order drainage pattern in the hill is radial, radiating from the peak and ridges of the area. The area experience heavy rain from July to Sept. During summer the climate is fairly hot. Winter months spread from November to February. The lease area can be approached by all weather metalled roads viz. Jamda - Thalkobad road. The nearest railway station is Gua on SE Railway’s broad gauge branch Rajkharsawan Junction (on Howrah–Mumbai main line) – Barajamda- Gua branch line. Gua railway station is located in the Surface Right Area of Gua Ore Mine about 2.5 km from Jhillingburu – I lease. The leasehold is well connected with Tatanagar (147 km away) by metalled road as well as by rail route via Barajamda, and Noamundi and Chaibasa. Gua Ore Mines can also be approached through Pre-Feasibility Report Page 1 of 14 Jhillingburu - I Iron & Manganese Ore Mining Lease metalled and unmetalled roads from Manoharpur railway station on Howrah–Bombay main line. The salient features of the project include: Proposal Increase manganese ore production from 42,000 t/yr to 61362 t/yr without increase in ML area of 210.526 ha Location of Mine In Ghatkuri Reserve Forest (Gua Range of Saranda Forest Division) At P.O- Gua, Block – Noamundi, Dist – Singhbhum (W), Jharkhand, Pin- 833213. Latitude 22⁰11’11” to 22⁰11’43” N Longitude 85⁰22’06” to 85⁰23’01” E Land Use 100% Forest Land. 32.11 ha Forest Land Diverted (28.52 ha utilised). Proposal submitted for diversion of balance land. 205.826 ha of land to be utilised by end of work including 63.786 ha of plantations Total Mineable Reserves 962892 t of Manganese ore (+10% Mn) Life of Mine 16 Years Method of Mining Fully Mechanized Open cast mining by conventional shovel dumper combination Quarries Presently 2 of which 1 exhausted. 17 new quarries to be developed after 5th year. All existing and ultimate pit bottoms will be above ground water table. Waste disposal Backfilling of exhausted quarry in 1st 5 years. Subsequently external dumping and backfilling Mineral Processing Manual sorting & screening Mineral Transport By 25 t dumpers to Gua railway siding Number of working days 300 days, 1 shift per day Water Demand 100 m3/day Source of water River Karo Man Power 152 Fuel Consumption Existing – 22 kl/yr; Proposed 50 kl/yr Explosive Consumption Existing - 9.23 t/yr; Proposed 25 t/yr Infrastructure Mostly existing. Workshop, stores, railway siding, township & amenities common with Durgaiburu lease. Proposed Investment Rs. 10 Crores Production Cost Rs.1058 per tonne at rated capacity CSR Budget Total Rs. 2.0 crore per year for Gua mines including Gua Durgaiburu, Topailore, Jhillingburu I and Jhillingburu II Jhillingburu – I Mining lease will produce manganese ore and it will be a captive source of for manganese ore for SAIL’s own steel plants. This will bridge the gap between supply and demand of manganese ore. This will also generate much needed employment to the local people. Economy of the area will get a boost and there will be overall growth of the region interim of education, health, training and transport etc. The local people’s standard of living is also expected to improve. Pre-Feasibility Report Page 2 of 14 Jhillingburu - I Iron & Manganese Ore Mining Lease 2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION : 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT : The Mining Lease for Jhillingburu - I was granted in favor of Indian Iron & Steel Company Ltd (IISCO) with effect from 12.5.1950 for 30 years. The renewal application was filed on 7.5.1979 for another 30 years period as per existing clauses of the lease deed. Presently the mine is under the control of the Raw Materials Division (RMD) of Steel Authority of India Limited (SAIL), which took over IISCO in 2006. The lease was thus due to expire by 11.5.2010 before which SAIL has filed the second renewal application on 05.05.2009. The lease is under deemed extension under the provisions of Mineral Concession Rules, 1960. Mining Plan is approved by IBM vide letter no. 314(3)/2010-MCCM(C)/MP-14 dt. 10.02.2011. The proposed rate of production is 61362 t/yr of manganese ore. The estimated project cost is Rs. 10.00 Crores. The expected life of the mines is 16 years. Steel Authority of India Limited (SAIL), a Maharatna public sector undertaking under Ministry of Steel, Government of India, is the leading steel maker in the country and is having integrated steel plants at Bokaro, Durgapur, Rourkela, Bhilai, Burnpur, alloys steel plant at Durgapur and special steel plant at Bhadrawati and Chandrapur. Also, SAIL has the second largest mining outfit in the country after Coal India Limited. SAIL’s mines are spread over the states of Jharkhand, Orissa and Chattisgarh. These mines commenced their operations as captive sources of raw materials for its integrated steel plants. 2.2 BRIEF INFORMATION OF THE PROJECT : The present proposal envisages increasing the production to 61362 t/yr of manganese ore by mechanized opencast mining without increasing the lease area of 210.526 ha. The entire lease area is located in Ghatkuri Reserved Forest (R.F.) under Gua Range of Saranda Forest Division. The forestry clearance for diversion of 32.11 ha under the lease was granted by MoEF vide no.-8-75/98-FC dated 23.11.2000 for 20 years period. The diversion proposal for diversion of total forest land under the lease i.e. 210.526 ha was submitted to State Forest Department vide letter no. Gua/E&L/08-09/032 dated 22.05.2008, which was forwarded to MoEF on 14.07.2010. Presently the proposal is with Eastern Regional Office of MoEF, Bhubaneswar for onward submission to MoEF Delhi with the site inspection report. The total mineable geological reserves available are 962892 t of manganese ore (+10% Mn). The expected life of the expanded mine is 16 years. Generation of waste during the next 5 years is expected to be about 0.53 million tonnes, which will be completely used for backfilling exhausted Quarry 2. Green belt will be generated all along the periphery of lease boundary (safety zone) and afforestation will be made around sub grade ore dump. Water requirement for the proposed project for industrial purposes has been estimated to be 90 m3/day, whereas potable water demand has been estimated to be 10 m3/day. The water will be drawn from Karo River flowing just outside the lease’s eastern boundary. Pre-Feasibility Report Page 3 of 14 Jhillingburu - I Iron & Manganese Ore Mining Lease 2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY OR REGION : The lease area has been prospected by the applicant. The Dept. of Mines and Geology has granted the mining lease on the availability of manganese and iron ores.