Pre Feasibility Report

PRE FEASIBILITY REPORT

OF BAINIBASA GRAPHITE MINING AND BENEFICIATION PROJECT OVER AN AREA OF 58.704 HECTS IN VILLAGE: BAINIBASA, PO: BHAIRABAGADA, TAHASIL: MUNIGUDA, DIST: RAYAGADA IN THE STATE OF ODISHA OF M/S. PRADHAN INDUSTRIES.

BAINIBASA GRAPHITE MINING LEASE OF 58.704 HA. IN VILLAGE: BAINIBASA, PO: BHAIRABGUDA, PS / TAHASIL: MUNIGUDA, OF DISTRICT: RAYAGADA, ODISHA-765020

M/S. PRADHAN INDUSTRIES TELENGA BAZAR, CUTTACK TABLE OF CONTENTS

Sl. Page CONTENTS No. No. 1 CHAPTER 1 - EXECUTIVE SUMMARY 3 2 EXECUTIVE SUMMARY 3 3 CHAPTER 2 - INTRODUCTION OF THE PROJECT 5 4 2.1 IDENTIFICATION OF PROJECT & PROJECT PROPONENT 5 5 2.2 BRIEF DESCRIPTION OF NATURE OF THE PROJECT 6 2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY 6 6 AND/OR REGION. 7 2.4 DEMAND – SUPPLY GAP 7 8 2.5 IMPORTS VS. INDIGENOUS PRODUCTION. 7 9 2.6 EXPORT POSSIBILITY 8 10 2.7 DOMESTIC / EXPORT MARKETS 8 2.8 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE 11 8 PROJECT. 12 2.9 FINANCIAL WELLBEING :- 10 13 CHAPTER 3 - PROJECT DESCRIPTION 11 3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT 14 11 PROJECTS, IF ANY. 3.2 LOCATION (MAP SHOWING GENERAL LOCATION, SPECIFIC 15 LOCATION, AND PROJECT BOUNDARY & PROJECT SITE LAYOUT) 11 WITH COORDINATES. 3.3 DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED SITE, PARTICULARLY THE 16 12 ENVIRONMENTAL CONSIDERATIONS GONE INTO SHOULD BE HIGHLIGHTED. 17 3.4 SIZE OR MAGNITUDE OF OPERATION. 12 3.5 PROJECT DESCRIPTION WITH PROCESS DETAILS (A SCHEMATIC 18 DIAGRAM/ FLOW CHART SHOWING THE PROJECT LAYOUT, 13 COMPONENTS OF THE PROJECT ETC. SHOULD BE GIVEN) 3.6 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY, 19 LIKELY SOURCE, MARKETING AREA OF FINAL PRODUCTS, MODE OF 19 TRANSPORT OF RAW MATERIAL AND FINISHED PRODUCT. 3.7 RESOURCE OPTIMIZATION / RECYCLING AND REUSE ENVISAGED IN 20 21 THE PROJECT, IF ANY, SHOULD BE BRIEFLY OUTLINED. 3.8 AVAILABILITY OF WATER ITS SOURCE, ENERGY /POWER 21 25 REQUIREMENT AND SOURCE SHOULD BE GIVEN. 3.9 QUANTITY OF WASTES TO BE GENERATED (LIQUID AND SOLID) AND 22 26 SCHEME FOR THEIR MANAGEMENT / DISPOSAL. 23 3.10 SCHEMATIC REPRESENTATIONS OF THE FEASIBILITY DRAWING 27

WHICH GIVE INFORMATION OF EIA PURPOSE. 24 CHAPTER 4 - SITE ANALYSIS 28 25 4.1 CONNECTIVITY 28 26 4.2 LAND FORM, LAND USE AND LAND OWNERSHIP 28 27 4.3 TOPOGRAPHY 29 28 4.4 EXISTING LAND USE PATTERN 29 29 4.5 EXISTING INFRASTRUCTURE 30 30 4.6 SOIL CLASSIFICATION 30 31 4.7 CLIMATIC DATA FROM SECONDARY SOURCE 30 31 4.8 SOCIAL INFRASTRUCTURE AVAILABLE 30 32 CHAPTER 5 - PLANNING BRIEF 32 5.1 PLANNING CONCEPT (TYPE OF INDUSTRIES, FACILITIES, 33 TRANSPORTATION ETC) TOWN AND COUNTRY PLANNING / 32 DEVELOPMENT AUTHORITY CLASSIFICATION 34 5.2 POPULATION PROJECTION 32 35 5.3 LAND USE PLANNING (BREAKUP ALONG WITH GREEN BELT ETC). 33 36 5.4 ASSESSMENT OF INFRASTRUCTURE DEMAND (PHYSICAL & SOCIAL) 34 37 5.5 AMENITIES / FACILITIES 34 38 CHAPTER 6 - PROPOSED INFRASTRUCTURE 35 39 6.1 INDUSTRIAL AREA (PROCESSING AREA) 35 40 6.2 RESIDENTIAL AREA (NON-PROCESSING AREA) 35 41 6.3 GREEN BELT 35 42 6.4 SOCIAL INFRASTRUCTURE 36 6.5 CONNECTIVITY (TRAFFIC AND TRANSPORTATION ROAD/ RAIL/ 43 36 METRO/ WATER WAYS ETC.) 44 6.6 DRINKING WATER MANAGEMENT (SOURCE & SUPPLY OF WATER) 37 45 6.7 SEWERAGE SYSTEM 37 46 6.8 INDUSTRIAL WASTE MANAGEMENT 37 47 6.9 SOLID WASTE MANAGEMENT 37 48 6.10 POWER REQUIREMENT & SUPPLY / SOURCE 38 49 CHAPTER 7 - REHABILITATION & RESETTLEMENT 40 50 CHAPTER 8 - PROJECT SCHEDULE AND COST ESTIMATES 41 8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF 51 41 COMPLETION (TIME SCHEDULE FOR THE PROJECT TO BE GIVEN) 8.2 ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF 52 42 ECONOMIC VIABILITY OF THE PROJECT 53 CHAPTER 9 - ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS) 53

PRE – FEASIBILITY REPORT

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CHAPTER 1

EXECUTIVE SUMMARY

1. EXECUTIVE SUMMARY

Bainibasa Graphite Ore Mining Lease is located over an area of 58.704 hectares in Village: Bainibasa, PS/Tahasil: Muniguda, District: Rayagada, Odisha and can be located in the Survey of India Toposheet Nos. E44F6 (65 M/6) and E44F10 (65 M/10) which are in the 1:50,000 scale. As per the authenticated DGPS survey (Geo referenced survey), the mining lease area is bounded within the latitudes 19°38'47.05944"N to 19°38'08.76103"N and longitude 83°30'14.78115"E to 83°29'38.19861"E.

The mining lease has been granted & executed by the Govt. of Odisha, Department of Steel & Mines, Bhubaneswar vide proceeding no. 379/SM dated 10.01.2017 for a period of 50 (Fifty) years in favour of M/s. Pradhan Industries. The lease deed has been subsequently signed and registered for 50 years by the Collector, Rayagada and the lessee, M/s. Pradhan Industries on 11.01.2017.

The mining lease has been accorded Forest Clearance u/s 2(iii) of the FC Act, 1980 whereby the entire forest area coming within the lease area has been granted as a lease to the lessee. The applicant is in the process of receiving approval for Forest Diversion of a part of the forest area coming within the lease premises u/s 2(ii) of the FC Act, 1980. The applicant is also in the process of acquiring surface right and surface permission over the non-forest Government land and tenanted land. Once approval of the MoEF has been received by the lessee for Environment Clearance and Forest Clearance of the project area, the lessee intends to apply for Consent to Establish and Consent to Operate under the Air & Water Act for establishment of the beneficiation plant and to complete preliminary mining development activities. Water and Electricity permissions will be taken from competent authority in the due course and any safety approvals if needed will be taken for operationalization of the mining cum beneficiation project.

Various mining operations such as excavation, loading and transportation will be practiced in proposed Bainibasa opencast graphite ore mine. Mineable resource of graphite ore is of the order of 134,736 T as per the mining plan. As per the mining plan during first five years, 61,824t ore will be extracted while the remaining resource of 134,736 t – 61,824 t = 72,912 t will be extracted within a period of 5.49, say 6 years on the basis of 13,272 t / annum. This figure is however likely to change with in-depth prospecting of the mineralized zone to reassess the mineable ore reserves of the lease.

ROM graphite ore can’t be used directly in the industry and hence, it will be beneficiated inside the lease area at the mine pithead beneficiation plant by way of froth flotation to (a) produce graphite concentrate and to (b) generate value less sand at the tail end of the process called tailings. These tailings can however be sold after getting due permissions from the necessary authorities as this is an excellent substitute for clay less river sand used in construction purposes. Since the surrounding area doesn’t have any assured source of clay less sand, hence the tailings can also be a saleable product from the mining lease.

As per the analysis report, grade of graphite ore varies from 0.64% to 13.43% F.C. Threshold value of flaky graphite declared by IBM is of 2% Fixed Carbon (abbreviated as F.C) content and cut-off grade of the mine is 3% F.C. content. Hence, graphite ore containing +3% F.C is considered as beneficiable ore and remaining graphite ore containing +2-3% F.C is considered as sub-grade ore. Average F.C. content is calculated to be 6.23% F.C. after considering the six samples out of eight from which the grade of the ROM has been determined. Beneficiable ROM graphite ore will be beneficiated in the M.L area. Sub-grade / mineral rejects will be stacked temporarily and beneficiated subsequently along with beneficiable ore in lean period. A Beneficiation plant of capacity 30 TPH is proposed with three stage operation, such as Rougher Section, a Cleaner Section and Scavenger Section, each consisting of Ball Mill, Agitator and Floatation Chambers. The throughput of 13272TPA will be processed to get final beneficiated output of 841 TPA of graphite with 85% FC and 65% FC respectively. The total make-up water requirement in the mine as well as in beneficiation plant will be about 60 m3 / day. This water will be sourced from bore well, water harvesting pond & nala within the mining lease area equipped with pumping arrangement. The mine shall get dedicated power supply from SOUTH CO through 11KVA distribution line to obtain 400 KVA of power supply.

Overburden shall be used for construction purposes such as retaining wall, etc and the rest shall be dumped at the earmarked dumping site inside lease premises. Topsoil shall be preserved for a period of one year at earmarked dumping site and shall be used for plantation in safety zone and in and around plant premises to create wind barrier around the beneficiation plant.

The project is expected to provide direct employment to 58 people inside the lease premises. Moreover the project is expected to provide indirect employment to a large number of people in and around the project area. Since the project is located in a scheduled area, the project is expected to provide majority of the employment to Tribal population of the area. Moreover since the project includes a beneficiation plant and high end open cast mining via use of sophisticated mining equipment. Thus this will lead to skill development of the Tribal population.

CHAPTER 2

INTRODUCTION OF THE PROJECT

2.1 IDENTIFICATION OF PROJECT & PROJECT PROPONENT. Proposed project is a green field project intended for production of graphite ore (13,272 TPA) and processed graphite (841 TPA). The graphite beneficiation plant is proposed to be located inside the mine lease at Village – Bainibasa, Tahasil- Muniguda, District- Rayagada, Odisha. Thus the project involves captive consumption of graphite ore from the mine. Mining Lease has been executed over an area of 58.704 ha. by the Government of Odisha on 11.1.2017 for a period of 50 years. Mining plan has been approved by IBM Bhubaneswar; vide their Letter No MP/OTFM/20-ORI/BHU/2016-17/7097, dated 17.11.2016.

PRADHAN INDUSTRIES

Name of the applicant: M/s. PRADHAN INDUSTRIES Registered Address: M/s. Pradhan Industries, At/Po: Telenga Bazar, P.S - Purighat, Dist. - Cuttack, Pin - 753009. (Odisha) Pan No. : AAHFP6289R Telephone No: +91-9937197435, +91-7381848286 Landline: 0671-2412299 Email-Id: [email protected] About: M/s. Pradhan Industries is a partnership firm registered with the Registrar of Firms, Odisha as Serial No. 514 of 1976 with date of registration as 14.10.1976, whose registered office is At/Po Telenga Bazar, P.S. Purighat, Town/District- Cuttack, Pin-753009, Odisha, India.

The firm has two existing mining leases of Bandhamandi and Sanamatru both in the District of Rayagada, Odisha. It has an existing mine pithead primary graphite beneficiation plant at its Bandhamandi Graphite Mining Lease. It has a secondary graphite beneficiation plant at Lakshimpur of Koraput district. The semi processed graphite from the primary graphite processing plant at Bandhamandi is transferred to the secondary processing plant at Lakshimpur for further up gradation.

M/s. Pradhan Industries is a bell weather firm in natural graphite mining & processing in India. It has received many awards from Indian Bureau of Mines in numerous years for exemplary performance in mining, beneficiation & allied activities. In the present scenario M/s. Pradhan Industries, one of the leading Graphite producer of Odisha intends to do more value addition to natural graphite products by setting up “Graphite Micronization” and Colloidal Graphite Plant in the near future.

2.2 BRIEF DESCRIPTION OF NATURE OF THE PROJECT

The current project is a mining cum beneficiation project in the district Rayagada of Odisha, India. Bainibasa Graphite Ore Mining Lease is located over an area of 58.704 hectares in Village: Bainibasa, PS/Tahasil: Muniguda, District: Rayagada, Odisha. The firm M/s. Pradhan Industries has been granted the aforesaid mining lease by the Govt. of Odisha, Department of Steel & Mines, Bhubaneswar vide proceeding no. 379/SM dated 10.01.2017 for a period of 50 (Fifty) years in favour of M/s. Pradhan Industries. The lease deed has been subsequently signed and registered for 50 years by the Collector, Rayagada and the lessee, M/s. Pradhan Industries on 11.01.2017. Along with the lease deed a Mine Development and Production Agreement (MDPA) has been signed between the Collector, Rayagada and the lessee on 11.01.2017. The mining plan of the said mining lease has been approved by Indian Bureau of Mines vide their letter dated 17.11.2016.

2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND/OR REGION.

Crude graphite seldom finds direct application in industry. It is invariably beneficiated to produce the required quality. The principal industrial uses of washed graphite are crucible and foundry facings, lubricants, in brake linings, pencils, electrical and motor brushes, paints, polish, rubber, explosives, batteries etc. Graphite is used to raise the carbon content and thereby hardening of steel. An important use of graphite in steel making is as carbon magnesite bricks. About 80% of the total industrial uses of graphite constitute crucibles, refractory and foundry facings.

COMPETITION FROM SUBTITUTES

Synthetic graphite which is produced from petroleum products is a natural substitute of natural graphite. However the cost of synthetic graphite of same fixed carbon content is two to three times more as compared to natural graphite. Hence even though synthetic graphite is substitutable but the cost difference between synthetic and natural graphite is too huge for synthetic graphite to be considered an exact substitute of natural graphite.

2.4 DEMAND – SUPPLY GAP

Data has been collected from the Ex-Im bank and from the ministry of commerce, Government of India. Data regarding production of crude graphite ore has been obtained from Indian Bureau of Mines (IBM). The data thus obtained has been analyzed to conclude convincingly the stark demand and supply mismatch of finished natural graphite in India. More-over this situation is likely to aggravate considering China, which is the world’s major producer of natural graphite has been closing many of its less productive graphite mines.

Many of the graphite beneficiation plants which were operational during 2015-16, have been closed as of 2017 due to need of necessary statutory clearances and owing to paucity of unprocessed graphite ore. It is to be noted that the finished product of the proposed beneficiation plant is processed natural graphite. Thus it is imperative to understand the total demand of processed natural graphite in India. Thus from the import, export and the unprocessed graphite ore production data, it has been ascertained that there is huge demand supply mismatch for natural graphite.

2.5 IMPORTS VS. INDIGENOUS PRODUCTION.

EXPORTS AND IMPORTS OF PROCESSED NATURAL GRAPHITE (IN TONS) 2012-13 2012-13 2013-14 2014-15 2015-16 Import Quantity 7309 12780 14348 19287 19871

Exports Quantity 1909 1048 1205 1683 2304 Demand-Supply 5400 11732 13143 17604 17567 Mismatch Considering a beneficiation factor of 12 9814 10385 9641 12778 11013 for ROM graphite produced in India Total requirement of Processed natural 15214 22117 22784 30382 28580 graphite in India

The Graphite ore produced from BGM is meant for the buyers within the country as per the specifications laid down by the various buyers. The Graphite ore is mainly used in:  Steel Plant  Ferro-manganese plant

 Battery,  Crucible, Paint,  Pencil,  Refractory bricks

2.6 EXPORT POSSIBILITY

At this point of time there is no possibility of export due to restriction on export. If in future the Government policies are favorable and the export prospects are remunerative export possibility will be considered.

2.7 DOMESTIC / EXPORT MARKETS

Graphite ore will be supplied to various plants i.e. Steel and Ferro-manganese as one of the major raw material. Proposed installation of Beneficiation plant at site, shall cater to the market demand within the State as well as peripheral States of Indian sub-Continent.

2.8 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT.

Place of Designation Qualification Numbers Working Mine Mine Manager Degree in mining engineering with mine 1 manager’s certificated of competency Mining Degree in mining engineering 1 Engineer Geologist M.Sc in Geology/Applied Geology 1 Foreman Foreman’s Certificate of competency 1 Mining Mate Mate’s certificate of competency 2 Sub-total --- 6

Wet Plant manager Degree / Diploma in mechanical 1 beneficiation engineering plant Supervisor Diploma / ITI in mechanical engineering 1 Asst. ITI in mechanical engineering 2 Supervisor Sub-total --- 4 Total ------10

LABOURER (Skilled / Semi Skilled / Un-Skilled): A total of 40 persons are proposed to be employed in the mine for excavation of 170m3 / day as per the following calculation:

Details (ref : 4th year) Quantitative Aspects Excavation of topsoil 7,788m3 Removal of Overburden 26,900m3 Excavation of Ore Zone 7,900m3 Total excavation 42,588m3 No of working days 250 Daily excavation required in one shift working 170 m3 OMS (with the deployment of small excavator) 5m3 Labours Required 170 / 5 = 34 Absents (assuming 10% of total persons) 34 x 15% = 5.1, say 6 Total Requirement 34 + 6 = 40

A total of 8 persons are proposed to be employed in the beneficiation plant for beneficiation of 53T / day as per the following calculation :

Details (ref : 5th year) Quantitative Aspects Production of ROM 13,272 t No of working days 250 Daily excavation required in one shift working 53 t OMS (assumed) 7.5 t Laborers required 53 / 7.5 = 7 Absents (assuming 10% of total persons) 7 x 5% = 1 Total Requirement 7 + 1 = 8

Total employment for mining and beneficiation will be 10 (management & supervisory) + 40 (workers at the mine) + 8 (workers at beneficiation plant) = 58 Nos.

2.9 FINANCIAL WELLBEING:-

M/s. Pradhan Industries is in operation since 1976 and is a leader in graphite mining and beneficiation in the State of Odisha with a sound financial background. The Partners of the Firm are capable of doing mining and beneficiation of graphite to any scale as appropriate under the law of the land. For the current project, the partners intend to completely finance the project from internal accruals.

CHAPTER 3

PROJECT DESCRIPTION

3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECTS, IF ANY.

M/s PRADHAN INDUSTRIES has proposed to produce Graphite ore of 13272 TPA from BAINIBASA GRAPHITE MINING LEASE (here in after called BGM) which is over an area of 58.704 ha and comes in Village Bainibasa, PO: Bhairabgada, PS / Tahasil: Muniguda of Rayagada District, Odisha- 765020. The Mineable resource of graphite ore in the M.L area is estimated to be 134736 T, which will be mined out @13272 TPA. The ROM produced will be processed in beneficiation plant to be installed & operated within mining lease area. The project is not interlinked and neither is dependent on any other projects, whatsoever. As per S.O. 1533(E)-EIA Notification, 2006, the Bainibasa Graphite Mine comes under Category – A (Area >50ha) and Beneficiation Plant under Category B (< 0.1million Tons per Annum) and as an integrated project, it requires Environment Clearance from MoEF & CC, New Delhi.

3.2 LOCATION (MAP SHOWING GENERAL LOCATION, SPECIFIC LOCATION, AND PROJECT BOUNDARY & PROJECT SITE LAYOUT) WITH COORDINATES.

The Mining Lease Area is a part of the Survey of India Topo sheet No. E44F6 (65 M/6) and E44F10 (65 M/10). The Mining Lease area comes within

Latitude- 19°38’47.059” N to 19°38’08.761” N. and Longitude- 83°30’14.78” to 83°29’38.198” E.

The topography is mainly plain with moderate slope. The highest and lowest altitude is 361m and 334 m above MSL respectively.

The Bainibasa Graphite Mining Lease area is 58.704 ha and its location is as follows.

Village: Bainibasa. PO: Bhairabagada, PS/ Tahasil: Muniguda, District: Rayagada, State: Odisha, 765020 Location Map-

3.3 DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED SITE, PARTICULARLY THE ENVIRONMENTAL CONSIDERATIONS GONE INTO SHOULD BE HIGHLIGHTED.

The area has been explored by the Director of Geology, Bhubaneswar. Based upon the report of the Director of Geology, Bhubaneswar the project proponent had applied for Graphite ore mining in the said area. Subsequently the Deputy Director of Mines, Koraput Circle has certified the presence of Ore deposits vide his certificate dated 21.11.2016. Upon completion of all conditions set forth by the State Govt. the said mining lease has been Granted/executed in favour of the project proponent. Since Graphite ore mining is a very site specific activity, hence no alternate site is suitable in this particular case. Moreover the grade of Graphite ore being very low, it requires beneficiation at mine pit head to maximise the project viability in terms of cost of transportation, cost of backfilling the mining pit, etc. There is no industry within 5 km radius of the M.L area. Therefore, air pollution in the area is negligible. The source of the noise in the core (M.L area) and buffer (5km radius) zone to be due to the movement of vehicles and the noise level is felt to be below 75 dB (A). Surface run-off water in the M.L area during rain follows the natural slopes and seasonal nala. There is possibility of flow of wash-offs towards the low lying area, seasonal Nala and Sakata Nala which needs management for prevention & control of water pollution. Barrier will be created on both the sides of nala course for arresting wash-offs in to the nala and nala course will be cleaned periodically for free flowing of the water. The extent of M.L area is 58.704 hectares. Out of these, 14.585 hectares is privately owned non-forest land, 0.081 hectare Govt. non-forest waste land and 44.038 hectares forest land as per the land schedule. Forest land does not have any valuable trees except shrubs & bushes which are mainly seen on either side of nala course. Mining lease area (Core Zone) and the area within 5km radius of the M.L area (Buffer Zone) do not have the important public buildings and places of worship and archeological monuments having historical, cultural, and aesthetic importance except school and tiny temples. There is no national park/wild life sanctuary/biosphere reserve/ tiger reserve/ elephant reserve in the core (M.L area) and buffer zone (5 km radius of the M.L area). Thus the site is exceptionally suitable for the current project.

3.4 SIZE OR MAGNITUDE OF OPERATION.

M/s. Pradhan Industries proposes to produce 13,272 TPA of graphite ROM from Bainibasa Graphite Mine at present. The entire lease area has been proposed to be covered under exploration by way of core / DTH drilling to quantify reserves /resources of graphite ore up to the end of graphite mineralization under UNFC code 111 & 122 with cut off grade corresponding to threshold value suggested by IBM as per the directive of Ministry of Mines vide letter No.10/75/2008-MV dated 23rd December, 2010.

In addition to the mining section, M/s. Pradhan Industries proposes to set up a Beneficiation plant of capacity 30 TPH having three stage beneficiation operation, such as Rougher Section, a Cleaner Section and Scavenger Section, each consisting of Ball Mill, Agitator and Floatation Chambers. The throughput of 13,272TPA of Graphite ROM from the mines will be processed to get final beneficiated output of 841 TPA of graphite with 85% FC and 65% FC respectively. The total make up water requirement in the mine as well as in beneficiation plant will be about 60 m3 / day. This water will be sourced from bore well, water harvesting pond & nala within the mining lease area equipped with pumping arrangement. The mine shall get dedicated power supply from SOUTH CO through 11KVA distribution line to obtain 400 KVA of power supply. Based on the outcome of the exploration, the magnitude of the operation may be enhanced in future.

3.5 PROJECT DESCRIPTION WITH PROCESS DETAILS (A SCHEMATIC DIAGRAM/ FLOW CHART SHOWING THE PROJECT LAYOUT, COMPONENTS OF THE PROJECT ETC. SHOULD BE GIVEN)

The current project consists of two activities i.e. mining and beneficiation of the mined out ore.

3.5.1 MINING OPERATIONS:-

Mining inside the lease area is going to be via opencast fully mechanized method. The deployment of machines & manpower matching with the annual production target are projected as follows:

Excavation and Loading: Run-off-mine ore and overburden will be excavated & loaded in the tipper by 0.9m3 capacity excavator. The detailed calculation is as follows:

Bucket Capacity = 0.9 m3 Bucket fill factor = 0.9 Swelling volume assumed = 35% Swell factor = 100/ (100+35) = 0.74 Availability = 70% Utilization = 80% Shovel cycle time = 30 sec. Seconds in an hour = 3600 sec Hours / shift = 8 No. of shifts / day = 1 Annual working days = 250 Swing factor = 1

Volume to be handled / = (0.9 x 0.9 x 0.74 x 70% x 80% x 3600) x 8 x 1 x excavation / year 250 / (30 x 1) = 80,560m3 Volume required to be handled / = 7,900 (ore zone) + 26,900 (OB) + 7,788 (topsoil) annum (4th year) = 42,588 m3 (ref : Para-5.1.2) Number of shovels required = 42,588 / 80,560 = 0.53, say 1 number

JCB / front-end loader will be used for loading of crushed ore in the tipper for transportation from crushing unit to the beneficiation plant site.

Haulage & transport equipment for ore & waste: Overburden will be dumped and beneficiable as well as sub-grade ore will be stacked separately in the earmarked area. Beneficiable R.O.M. ore will be transported from quarry to the stacking site for beneficiation. Average distance / lead is assumed to be 0.5 km between the quarry & stacking / dumping site. However, excavator and tipper matching calculation is given as follows:

Parameters Dimension Bucket capacity 0.9 m3 Bucket fill factor 0.9 Swell factor 0.74 Tonnage factor 2.1 t/m3 Tonnes per pass 0.9 X 0.9 X 0.74 X 2.1 = 1.26 t Truck / tipper Capacity 10 t No. of passes tipper capacity/ tones per pass = 10/1.26 = 7.9, say 8 passes Loading time = 8 x 30= 240 sec Lead = 0.5 km Load travel speed = 10 kmph Load travel time = (3600 x 0.5 )/10 = 180 sec. Dumping time = 60 sec. Empty travel speed = 15 kmph Empty travel time = (3600 x 0.5 )/15 = 120 sec. Spotting time = 60 Sec Tipper cycle time = 240 + 180 + 60 + 120 + 60 = 660 sec. Number of rear dump trucks required / = Cycle time /(loading + spotting time) excavator = 660/(120 + 60) = 660 / 180 = 2.2, say 3 Number of excavator = 1 Number of tippers required in all total = 1 x 3 = 3 nos.

List of machinery / equipment: The mine will be operated as Category-A (OTFM) mine. Keeping in view the production of ROM ore @13,272 t / annum, machine population is required to be arranged in the following manner:

Unit operation Name Dia / Capacity Numbers Excavation & loading Hydraulic excavator 0.9m3 bucket capacity 1 at the mine Loading at the stack JCB / Front-end loader --- 1 yard Tipper Transporting 10T 3

Drainage of the Water pump quarry, pumping to 5 HP 5 overhead tank etc. Lighting Generator --- 1 Environmental 10 kl Protection & industrial Water Tanker 1

use

3.5.2 BENEFICIATION PLANT OPERATIONS:-

Graphite ore is normally associated with gangue minerals like quartz, clay, limonite and feldspar. As far as grade is concerned, ROM graphite ore can’t be used directly in the industry and hence, it will be beneficiated in the lease area by way of froth flotation to (a) produce graphite concentrate and (b) generate value less sand at the tail end of the process called tailings.

3.5.2.1 NATURE OF PROCESSING / BENEFICIATION:

BENEFICIATION PROCESS:-

Flotation is a physico-chemical separation process that utilizes the difference in surface properties of the valuable minerals and the unwanted gangue minerals. A series of flotation cells will be installed where the pulp will continuously travel from one cell to the next cell for repeated treatments. The floats in successive treatment become purer and are returned as a middling for further treatments. The air admitted forms many bubbles which rises above on the cell to collect the graphite particles. The mineralized graphite bubbles collect as froth on the top, leaving the gangue particle which get discharged from last cell and which is subsequently discarded.

ROUGHER CIRCUIT

The graphite ore will be fed into the primary ball mill with the addition of requisite amount of sodium silicate as dispersing agent for silica bearing minerals. The discharge from ball mill will be conditioned with reagents like LDO (Light diesel oil) as collector and pine oil as frother and subjected to a bank of flotation cells. The pine oil and diesel oil required per ton of processing is around 50-70 ml and 200-250 ml respectively. The froth from the flotation cells will be subjected to hydro-cyclone for removal of excess water in concentrate. The tailings generated at this stage cannot be further beneficiated and are pumped to the tailing pond.

CLEANER CIRCUIT

The hydro-cyclone underflow will be subjected to cleaner circuit ball milling. The overflow from the earlier hydro-cyclone will be introduced at the output of the cleaner circuit ball mill and the flow will be introduced into a agitator tank where it will be conditioned with reagents like LDO (Light diesel oil) as collector and pine oil. The overflow from the agitator tank will be introduced into a bank of flotation cells for further up-gradation. The concentrate of this first cleaner circuit beneficiation and the subsequent tailings are stored separately.

After completion of the normal ROM processing, the Rougher circuit is disconnected and only this cleaner circuit is operated. The stored concentrate of the previous wash is reintroduced into this cleaner circuit whereby the same process is flowed with introduction at the Hydrocyclone followed by the ball mill, then the agitator tank and finally the floatation cells. The concentrate of this second cleaner circuit beneficiation is the final product. However the tailings thus generated is stored along with the tailings of the first cleaner stage beneficiation.

CLEANER TAILING REPROCESSING CIRCUIT

The tailings from the first and second stage cleaner circuits are introduced to the hydrcyclone of this section. The overflow from the hydro-cyclone will be introduced at the output of the tailing reprocessing ball mill and the flow will be introduced into a agitator tank where it will be conditioned with reagents like LDO (Light diesel oil) as collector and pine oil. The overflow from the agitator tank will be introduced into a bank of flotation cells for further up-gradation. The concentrate of this cleaner tailing reprocessing unit is of medium grade and can be sold only post blending with the final product. The tailings of this section however cannot be further reprocessed and are pumped to the tailing pond.

PRODUCT SEGREGATION

Vibrating Screen: The de-sliming hydro-cyclone underflow will be subjected to vibrating wet screen. The screen oversize will be one of the coarse flake products. The screen undersize will be subjected to vacuum filter.

Vacuum filter: The concentrates obtained from cleaner circuit bank of flotation cell will be subjected to vacuum filter for removal of water. The concentrate obtained from filtered cake will be conveyed to drying section.

DRYING AND PULVERIZING SECTION

Drying section: The concentrate filter cake will be dried by sun / fluidized dryers / Coal ovens.

Pulverizing section: The dry product will be subjected to pulverizer for further grinding. The pulverizer has been envisaged for generation of the desired particle size so as to meet the market demand.

WEIGHING AND PACKAGING SECTION

Packaging section: The sized finished product will be packaged and simultaneously weighed in water proof bags of customer specification.

3.6 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY, LIKELY SOURCE, MARKETING AREA OF FINAL PRODUCTS, MODE OF TRANSPORT OF RAW MATERIAL AND FINISHED PRODUCT.

The Raw material required for the project are:-

1. Graphite ROM from the mining lease 2. Water 3. Electricity 4. Pine Oil 5. Diesel Oil 6. Turpentine oil 7. Coal 8. Sodium Silicate, etc.

Sl. No. Description Quantity

1 Graphite Ore 13,272TPA

2 Turpentine Oil/Pine oil 1000 LTR/Year

3 Diesel oil 3500 LTR/Year

4 Coal (Only meant for rainy season) 50 TPA

5 Sodium Silicate 30 kg/year

The major raw material is the Graphite ROM generated within the Mining Lease estimated to be produced @ 13,272TPA. The Graphite ROM having +2% FC will be fed into the primary ball mill with the addition of requisite amount of sodium silicate as dispersing agent for silica bearing minerals. The discharge from ball mill will be conditioned with reagents like LDO (Light diesel oil/ Kerosene) as collector and pine oil as frother and subjected to a bank of flotation cells. The pine oil and diesel oil / Kerosene required per ton of processing is around 50-70 ml and 200-250 ml respectively. The froth from the flotation cells will be subjected to hydro-cyclone for removal of excess water in concentrate. The hydro- cyclone underflow will be subjected to leaner circuit ball milling followed by agitator tank and bank of flotation cells for further up-gradation. The hydro-cyclone overflow will be connected to discharge of the cleaner ball mill. The upgraded concentrate will be subjected to dewatering hydro-cyclone or will be reprocessed in same circuit up to required grade. The

19 tailings from rougher flotation cell will be the final reject. The tailings from cleaner washing cell will be sent to another ball mill followed by agitator and flotation cell for further carbon recovery. The cleaner concentrate will be subjected to wet vibrating screen in an attempt to recover of coarse flake product. The wet vibrating screen undersize will be subjected to vacuum filter for reducing moisture content in concentrate. The filter cake will be dried through either sun drying with an overhead canopy or fluidized bed dryer or coal ovens. Part of dried product will be subjected to pulverizing for further size reduction. The different grades and sizes of product will be sold depending upon market demand. The flow Chart is furnished at Fig-3.

PROCESSS FLOW CHART

MINING PIT

ROM STACK YARD O/B DUMP

BENEFICIATION PROCESS

ROUGHER CLEANER CIRCUIT CIRCUIT

SCAVENGER CIRCUIT

TAILING POND GRAPHITE CONCENTRATE (BENEFICIATED PRODUCT)

Marketing of the Beneficiated Products:

Low Grade Crude graphite does not find direct application in industry. It is invariably beneficiated to produce the required quality. The principal industrial uses of washed natural graphite are crucible and foundry facings, lubricants, in brake linings, pencils, electrical and motor brushes, paints, polish, rubber, explosives, batteries etc. Natural Graphite is used to raise the carbon content and thereby hardening and carbonization of steel. An important use of natural graphite in steel making is as carbon magnesite bricks. About 80% of the total industrial uses of natural graphite constitute crucibles, refractory and foundry facings.

Mode of Transportation:

The ROM produced will be transported by tipper (10T capacity) within the ML area i.e. from mine pit head to Ore Stack and then to Beneficiation plant site. The Finished product bagged in polyethylene HDPE bags of 40 to 50 Kg and will be sold at Ex- Plant. The purchaser will transport the product mainly by Road / lorry of 10T capacity. The annual production is projected at 841 T and taking 300 working days / Year the average transportation rate is one truck load in 3 - 4 days. i. e. 7-8 truck load in a month.

3.7 RESOURCE OPTIMIZATION / RECYCLING AND REUSE ENVISAGED IN THE PROJECT, IF ANY, SHOULD BE BRIEFLY OUTLINED.

Resource optimization is expected to be implemented at each stage of the project i.e

1. Raw Material utilization segment 2. Water utilization segment

1. RAW MATERIAL UTILIZATION SEGMENT

EFFECTIVE ROM UTILIZATION:-

The mineral resource is required to be conserved & judiciously excavated. The ore / sub grade and over burden production projected during the plan is as follows:-

Year Pit no. Total Top OB/SB/IB ROM (m3) ROM / Excavation Soil / waste Ore Sub Grade Waste (m3) (m3) (m3) having FC having FC Ratio > 3% (m3) 2-3% (m3) I Quarry-1 31,440 5,940 20,300 4,680 520 1 : 3.9 II -do- 33,000 5,400 22,000 5,040 560 1 : 3.9

III -do- 32,200 5,400 20,800 5,400 600 1 : 3.5 IV Quarry-1 & 42,588 7,788 28,480 5,688 632 1 : 4.5 2 V -do- 39,572 7,922 25,330 5,688 632 1 : 4.0 Total --- 178,800 32,450 116,910 26,496 2,944 1 : 4.0

Likely generated sub-grade ore generated during the plan period is 2944m3 or 6182 T. This Sub-grade graphite ore / mineral rejects will be stacked temporarily. These sub-grade ores will be processed in the beneficiation plant along with beneficiable ROM ore (+3% F.C) in lean period mostly in rainy season depending on the economic viability related to market dynamics and demand. Moreover M/s. Pradhan Industries with more than 35 years of experience in graphite beneficiation process has vastly improved the beneficiation process utilized by it resulting in greater process recovery of graphite from low grade Graphite ROM.

EFFECTIVE TAILING DISPOSAL AND UTILIZATION:-

Total generation of tailings during the first five years of operation of the project will be 25,503 m3. However, year wise generation of tailings is estimated to be as follows:

ROM graphite ore (in Tailings of 0.9% F.C. Volume of Tailings Year T) (in T) (@2.2 T/m3) (in m3) I 10920 9910 4505 II 11760 10672 4851 III 12600 11434 5197 IV 13272 12044 5475 V 13272 12044 5475 Total 61,824 56,106 25,503

The tailings thus generated are valueless sand which have very less FC content of nearly 0.9%. These tailings are proposed to be sold off for local construction requirement as this is an excellent substitute of river sand. Moreover the region suffers from acute shortage of river sand. Thus the tailings can also be an alternate product from the project, subject to clearances from the concerned statutory authorities.

2. WATER UTILIZATION SEGMENT

Water is necessary for mining and beneficiation plant operations. It will also be used for domestic use such as drinking, bathing, washing, cooking etc. The mining operations usage of water includes water for dust suppression, green belt development, etc. In the

beneficiation plant, water will be used as the medium of separation and an important input for the washing of the low-grade graphite ores.

The total per day requirement of water for the mining lease operations and beneficiation plant operations are mentioned as follows:-

Peak demand Class of Use Purpose Source of water (liters / day) Proposed bore Drinking (58 nos. x 15 liters) 870 well Domestic Bathing, washing, cooking etc. (at least 3,750 -do- for 15 persons @ 250 liters / head)

Water sprinkling for dust suppression 20,000 Proposed bore well, water Mining Watering the plantation site 5,000 harvesting pond and nala Proposed bore Beneficiation well, water Beneficiation of Graphite ROM 134,880 Plant harvesting pond and nala Total --- 164,500 ---

Water for the above operations will be sourced from the proposed bore well, water harvesting pond and nala. Water used in domestic and mining operations is not recoverable and hence the make-up water for these operations will be 29.62 KLD or nearly 30 KLD. Being a pioneer in graphite beneficiation technology, M/s. Pradhan Industries has devised a series of methods to conserve and reutilize water used in the beneficiation plant process. The tailings from the beneficiation plant contain nearly 93.75% of the water fed to the beneficiation process and the finished product contains nearly 5.27% of the total water fed to the beneficiation process. This constitutes nearly 99% of all the water fed to the beneficiation process. Out of this nearly 78.29% of the water is recycled and treated to be fed back to the beneficiation plant. The make-up water for the beneficiation plant is thus 30KLD.

The detailed water balance of the plant is as shown below:-

3.8 AVAILABILITY OF WATER ITS SOURCE, ENERGY /POWER REQUIREMENT AND SOURCE SHOULD BE GIVEN.

WATER:

Make-up water requirement for mining and beneficiation plant operations will be 60 m3/day.

a. To reduce the use of ground water, rain water will be canalized & stored in the rainwater harvesting pond. This will be utilized for beneficiation process as and when required. b. The process water accumulated around the tailings in the tailing pond will be piped out / canalized in to the settling tank and reused in the process. Excess process water will channelized to water reservoir tank. c. Mine accumulation water shall be pumped out and stored in water reservoir Pond for future use. d. Moreover water will be sourced from the adjacent nala flowing along side the mining lease boundary.

POWER:

The mine will get dedicated power supply from SOUTHCO through 11KV/33KV line. Power will be mainly consumed for water supply, yard lighting, peripheral lighting and plant lighting, Beneficiation (Ore separation) Plant and Mining purposes and the power requirement will be 400 KVA. approximately.

STANDBY POWER:

M/s. Pradhan Industries proposes to set up a back-up captive power in the form of a 350 KVA Diesel Generator set to ensure uninterrupted power supply for the running of the beneficiation plant.

3.9 QUANTITY OF WASTES TO BE GENERATED (LIQUID AND SOLID) AND SCHEME FOR THEIR MANAGEMENT / DISPOSAL.

Solid Waste:

The average thickness of the topsoil is 1m which will be scrapped off, gathered and stored temporarily in the M.L area and will be subsequently used for spreading in the safety zone and back-filled mined out area for plantation. The overburden mainly consists of sub-soil and weathered Khondalite. Threshold value for utilization of Graphite ROM is 2% F.C. Therefore, graphite ore above +2 % FC will be utilized by the plant for processing. However economical grade for processing of Graphite ROM is +3% FC. Thus the subgrade +2%-3% F.C which is considered as sub-grade ore will be used by blending with high grade ore during lean season. Yearly generation of these materials will be as follows:

Year Pit no. Top Soil (m3) Over Burden / Subgrade ore (m3) waste (m3) I Quarry-1 5,940 20,300 520 II -do- 5,400 22,000 560 III -do- 5,400 20,800 600 IV Quarry-1 & 2 7,788 28,480 632 V -do- 7,922 25,330 632 Total --- 32,450 1,16,910 2,944

It is estimated that about 1,16,910 m3 Over Burden and 2944 m3 of subgrade will be generated during the next 5 years. The solid rocks from the overburden will be utilized to build the retaining walls, haulage roads inside the mining lease area and other embankments as and when required. The remaining over burden waste material generated during the mining operations will be dumped over an area of 2.338 Ha. The dump will be compacted and leveled and plantation will be done to control erosion due to rain and wind (After the dump becomes ineffective and dead). The dumping ground has been selected on non-mineralized zone within the mine lease area. The generated waste during mining activity is used to stack in Dump. The maximum height shall be maintained as statutory limits.

Solid waste from Tailing:

Total generation of tailings during the plan period will be 25,503 m3. However, year wise generation of tailings is estimated to be as follows:

Volume of Tailings Year ROM graphite ore (in T) Tailings of 0.9% F.C. (in T) (@2.2 T/m3) (in m3) I 10920 9910 4505

II 11760 10672 4851 III 12600 11434 5197 IV 13272 12044 5475 V 13272 12044 5475 Total 61,824 56,106 25,503

Liquid Waste:

1. Surface water :- No liquid effluent will be generated because mining operation does not involve any wet process. Beneficiation Process is based on Zero discharge basis. Check dam is proposed to be built to prevent rain wash off. Garland drains around waste dump, retaining wall and settling tank are proposed to be built to divert the rain water to settling pits. Once the solid particles settle, water will be pumped to the rainwater harvesting pond for staorage.

2. Monsoon water:- The surface run off during monsoon shall be channelized to Rainwater Harvesting Pond through settling pits/Siltation tanks which will be subjected to de-siltation at regular interval before it falls to “natural drain”.

3. Plant area:- At the end of the Beneficiation processing operation, tailings in slurry form will be piped in to a tailing pond. Surplus/overflow Water will be allowed to be stored in a pond& from there recycling will be done for further use and sand will remain as dry solid within the tailing pond supported by a wide earthen tailing dam.

3.10 SCHEMATIC REPRESENTATIONS OF THE FEASIBILITY DRAWING WHICH GIVE INFORMATION OF EIA PURPOSE.

Detailed schematic representations of the feasibility covering the purpose of EIA will be given in the Environmental Impact Assessment report.

CHAPTER 4

SITE ANALYSIS

4.1 CONNECTIVITY

Proposed Mining cum beneficiation project is accessible from the District center, Rayagada covering a distance of 70 kms (Rayagada to Muniguda via Rayagada - Bhawanipatna State Highway (SH- 44) distance is 65 kms and distance from Muniguda to M.L. Area is 5 kms via village road). The nearest Airport is situated at Vishakhapatnam in Andhra Pradesh at a distance of 265 kms. There also exists an airport at Bhubaneswar at a distance of 386 kms from the M.L. Area. The nearest Seaport is also situated at Vishakhapatnam in Andhra Pradesh at a distance of 260 kms. The Seaport at Paradeep is at 491 kms from the M.L. Area.

4.1.1. ACCESSIBILITY:-

The nearest Railway Station is at Muniguda at about 5.0 Km from the M.L. area. This railway line is coming under East Coast Railway Division. Muniguda is the nearest town situated at about 5 Km from the mine area. Rayagada town situated at 70 kms from the M.L. Area is the District Head Quarter for Rayagada District.

4.2 LAND FORM

Mining lease area over 58.704 hectares is located in forest as well as non-forest land and class / land use pattern of the land as per the land schedule is as follows:

Type of Kissam / Class of land Area Land (as per land schedule) Acres Hectares Patra jungle 106.89 43.257 Forest land Bada jungle 1.93 0.781 Sub-total 108.82 44.038 Waste land (Pahad) 0.20 0.081 Non-forest Waste land (Dangar-2 & 36.04 14.585 land Dangar-3) Sub-total 36.24 14.666 Total --- 145.06 58.704

Patra jungle 0.081, 0% 14.585, 25% Bada jungle

43.257, 74% 0.781, 1% Waste land (Pahad)

Waste land (Dangar-2 & Dangar-3)

LAND OWNERSHIP

The extent of M.L area is 58.704 hectares. Out of these, 14.585 hectares of non-forest land is privately owned which is restricted land and the remaining 44.119 hectares consists of 0.081 hectare of Govt. non-forest waste land and 44.038 hectares of forest land.

4.3 TOPOGRAPHY The Mining Lease area comes within Latitude- 19°38’47.059”N to 19°38’08.761” N. and Longitude- 83°30’14.78” to 83°29’38.198” E. The topography is mainly plain with moderate slope towards the eastern side. The highest and lowest altitudes are 361m and 334 m above MSL.

4.4 EXISTING LAND USE PATTERN

Total 44.119 ha of land will be utilized for the proposed project. Out of the total land 0.081 ha is Govt. and Non-forest waste land, and 44.038 ha is of forest land (Patra jungle – 43.257 ha & Bada jungle – 0.781 ha). Forest land does not have any valuable trees except shrubs & bushes which are mainly seen on either side of nala course. Mining lease area (Core Zone) and the area within 5km radius of the M.L area (Buffer Zone) do not have the important public buildings and places of worship and archeological monuments having historical, cultural, and aesthetic importance except school and tiny temples.

There is no national park/wild life sanctuary/biosphere reserve/ tiger reserve/ elephant reserve in the core (M.L area) and buffer zone (5 km radius of the M.L area). The total land will be degraded/ utilized at the end of the plan period due to mining and other ancillary activities.

4.5 EXISTING INFRASTRUCTURE

Within ML area:

There is no infrastructure within the ML area.

Outside ML area: There is a Road very near to the ML area which now serves as a connecting road from State High way to the village Bainibasa and also the M.L. area. There is a primary school in the Bainibasa Village. The Nearest Dispensary is at Jambragurha Village which is about 1Km West of the Lease area. The nearest LT (Electric) line passes at distance of 0.75Km and the 11KV HT line is accessible at a distance of around 2 Km. The nearest PHC, Fire Station, College, High school are at Muniguda. Muniguda is the Block Headquarters and an important Town of the area. There are marketing facilities for agricultural, Horticultural & non timber Forest produce.

4.6 SOIL CLASSIFICATION

The soil is mostly alluvial and contains organic matter and macro & micro nutrients with moderate Water holding capacity.

4.7 CLIMATIC DATA FROM SECONDARY SOURCE

Secondary information on meteorological conditions has been collected from the nearest IMD station at Koraput and IMD Book (1970-2000). The seasons in Rayagada are generally distributed as hot summer (April-May), monsoon (June-September) and 'Cold season' (November-February). The humidity is usually medium to high throughout the year and the rainfall, though not heavy, is usually well distributed. The average annual rainfall received by the district is around 1,300 mm-1400 mm.

4.8 SOCIAL INFRASTRUCTURE AVAILABLE

There is a Post Office at Bhairabagada (Gram Panchayat Headquarters). There is a Public Health Centre at Muniguda, which is at a distance of 5 Kms. The area is linked with the rail line and communication with towns, Rayagada, Koraput, Sambalpur, and Bhawanipatna

30 is possible by road and rail. At Muniguda hotels, community Center facilities are available. Bissam Cuttack is also an important township and is about 15kms from Muniguda. There is a 250 bedded Missionary Hospital at Bissam Cuttack. There are also various nearby good markets to cater the need of the local people. There are many national Banks in the town of Muniguda and Bissam Cuttack.

CHAPTER 5

PLANNING BRIEF

5.1 PLANNING CONCEPT (TYPE OF INDUSTRIES, FACILITIES, TRANSPORTATION ETC) TOWN AND COUNTRY PLANNING / DEVELOPMENT AUTHORITY CLASSIFICATION.

The current project is a mining cum beneficiation project in the district of Rayagada of Odisha, India. Mining to the tune of 13,272 TPA of Graphite ROM is proposed to be done inside the mining lease area. This graphite ROM will be processed in the mines pit-head beneficiation plant of 30 TPH capacity proposed to be installed within the mining lease area for production of Graphite Concentrate. Proposed Mining cum beneficiation project is accessible from the District center, Rayagada covering a distance of 70 kms (Rayagada to Muniguda via Rayagada - Bhawanipatna State Highway (SH- 44) distance is 65 kms and distance from Muniguda to M.L. Area is 5 kms via village road). The nearest Railway Station is at Muniguda at about 5.0 Km from the M.L. area. This railway line is coming under the East Coast Railway Division. Muniguda is the nearest town situated at about 5 Km from the mine area. Rayagada town is situated at 70 kms from the M.L. Area is the District Head Quarter for Rayagada District. The nearest Airport is situated at Vizag in Andhra Pradesh at a distance of 265 kms. There also exists an airport at Bhubaneswar at a distance of 386 kms from the M.L. Area. The nearest Seaport is also situated at Vishakhapatnam in Andhra Pradesh at a distance of 260 kms. The Seaport at Paradeep is at 491 kms from the M.L. Area.

5.2 POPULATION PROJECTION

The total population within 5 km of the M.L. area is about 12,247 (as per census of 2011). The total population of the nearby village Bainibasa is 106 where there are 29 families (as per 2011 census). They depend for their livelihood mainly on forest produce, contract labor, few on agriculture and other allied activities.

The project would bring following benefits to the people of the surrounding villages:  Improved standard of living;  Direct and indirect employment;  Establishment of micro and small scale engineering projects, with cascading employment opportunities;  Increased revenue to the state by way of royalty, taxes and duties;  Improved green cover;  Improved communication and transport facilities etc.;

 Improved and better medical facility;  Improved cultural & educational environment;

5.3 LAND USE PLANNING (BREAKUP ALONG WITH GREEN BELT ETC).

The extent of M.L area is 58.704 Ha. Out of these, 14.585 Ha. of non-forest land is privately owned which is restricted land and will not be utilized for the project. Therefore, remaining 44.119 hectares consisting of 0.081 Ha. of Govt. non-forest waste land and 44.038 hectares of forest land as per the land schedule will be utilized for the project. The land use breakup for the project is as follows:

As at the end of Sl. As at the end of plan Type of land use Conceptual period No. period (ha) (life of mine) (ha) 1. Area under excavation 3.245 3.885 2. Storage for Topsoil 0.927 0.927 3. Overburden dump 2.338 2.338 4. Mineral Storage 2.945 2.945 Infrastructure (office, rest 5. 2.000 2.000 shelter, workshop etc.) 6. Road 2.500 2.500 7. Railways ------8. Tailing Pond 2.848 2.848 9. Effluent Treatment Plant 0.064 0.064 10. Mineral Separation Plant 2.136 2.136 11. Township area ------Water storage 0.650 0.650 / reservoir Rain water 12. Others harvesting 0.900 0.900 pond Settling pond 0.950 0.950 (4 nos.) --- Sub-total 21.503 22.143 7.5m wide safety zone 13. 0.737 0.737 along M.L boundary 50m wide barrier along 14. 8.549 8.549 perennial nala bank 15. Nala 1.073 1.073 Barren area to be 16. --- 11.617 rehabilitated / planted 16. Remaining area 12.257 ---

--- Sub-total 22.616 21.976 Total --- 44.119 44.119

Safety zone is calculated to be 11.453 hectares consisting of 9.286 hectares forest land and 2.167 hectares non-forest land as detailed below:

Forest land Non-forest land Safety zone Total (ha) (ha) (ha) 50m wide safety zone along nala course (excluding safety zone 8.549 0.651 9.200 along M.L boundary) 7.5m wide safety zone along M.L 0.737 1.516 2.253 boundary Total 9.286 2.167 11.453

5.4 ASSESSMENT OF INFRASTRUCTURE DEMAND (PHYSICAL & SOCIAL)

Adequate physical and social facilities are available in this area

5.5 AMENITIES / FACILITIES

All infrastructure facilities such as education, health and other social facilities are available in nearby villages within 3KM.

CHAPTER 6

PROPOSED INFRASTRUCTURE

6.1 INDUSTRIAL AREA (PROCESSING AREA)

A Beneficiation plant of 30 TPH is proposed to be installed on modular basis within the mining lease area. Low grade graphite ore will be processed through Rougher Circuit and Cleaner Circuit in stages in this green field project to begin with. The processing area will consist of different civil structures like plant sheds, re-feeding tanks, settling tanks, drying areas etc. and plant & machineries. Outside of the processing plant area there will be a tailing area to manage the tailings. A site office will be constructed in the plant area for day-to-day administration and management.

6.2 RESIDENTIAL AREA (NON-PROCESSING AREA)

Manpower will be employed from nearby villages and no separate residential facilities will be necessary inside the M.L. Area. However, statutory facilities, i.e., rest shelter will be provided in the non-processing area to take food & water and rest during lunch time. A canteen will also be provided to take Tiffin & meals as per need of the mine people. Toilets will be made available in the mine, plant and canteen area for human convenience.

6.3 GREEN BELT

Well planned greenbelt with trees having leaves with large surface area have proved to be an effective way of controlling dispersion of dust after the emissions. The development of the greenbelt will be carried out in a systematic manner by adopting plantation along waste dump, safety zone, surrounding the office area, other non-mineralized area and avenue plantation etc.

PLANTATION SCHEDULE Year Location No. of Spacing Area Name of saplings of Saplings (m) Earmarked suggested Plan proposed (m2) 1st Safety Zone of 3000 2 12,000 Mango, Jack-fruit, Sakata Nala Neem, Chakunda, Gambhari, etc. Gambhari, Sunari, Sisu, Around office area 2nd 3000 2 12,000 Arjun, Asana, Bada & Haulage Roads Chakunda, Radha

Chuda etc.

Around

Beneficiation 3rd 3000 2 12,000 -Do- Plant area and

Haulage Roads Around

Beneficiation 4th 3000 2 12,000 -Do- Plant area and

Haulage Roads Sunari, Sisu, Asana, Peripheral and 5th 3000 2 12,000 Bada Chakunda, Jack- avenue plantation Fruit, Neem Total 15,000 - 60,000 -

6.4 SOCIAL INFRASTRUCTURE

Village Bainibasa where the mining and processing activities shall take place is surrounded by villages, viz., Bhairabgarh, Burjugurha, Jambragurha , Tikarparha and Muniguda etc. The mining activity carried out in the present project will generate employment potential for skilled and unskilled work force creating healthy socio economic infrastructure. There are social infrastructure like School, College, Hospital and Dispensary, Places of worship and other recreational facilities available within 10Km radius of the M. L. Area. In addition, social infrastructures shall be developed around the M.L. Area through Corporate Social Activities during the operational years.

6.5 CONNECTIVITY (TRAFFIC AND TRANSPORTATION ROAD/ RAIL/ METRO/ WATER WAYS ETC.)

Proposed Mining cum beneficiation project is accessible from Rayagada covering a distance of 70 kms, i.e., Rayagada to Muniguda covering 65 kms on Rayagada- Bhawanipatna State Highway (SH- 44) and Muniguda to M. L. Area covering 5 kms on jeepable village road. The nearest Railway Station is at Muniguda at about 5.0 Km from the M.L. area. This railway line is coming under East Coast Railway Division. Muniguda is the nearest town situated at about 5 Km from the mine area. Rayagada town situated at 70 kms from the M.L. Area is the District Head Quarter for Rayagada District. The nearest Airport is situated at Vizag in Andhra Pradesh at a distance of 265 kms. There also exists an airport at Bhubaneswar at a distance of 386 kms from the M.L. Area. The nearest Seaport is also situated at Vishakhapatnam in Andhra Pradesh at a distance of 260 kms. The Seaport at Paradeep is at 491 kms from the M.L. Area.

6.6 DRINKING WATER MANAGEMENT (SOURCE & SUPPLY OF WATER)

Presently M/s. Pradhan Industries will require about 59,620 liters/ day, i.e., 60 m3/day of water as make-up water requirement for the entire mine and plant operations. 0.87 m3/day of water will be used for drinking purpose. The water for domestic drinking purpose will be sourced from Bore well (Ground Water) within the mining lease area equipped with pumping arrangement.

6.7 SEWERAGE SYSTEM

Domestic/Office waste water from mines shall be diverted for plantation and the sewage water shall be fed to soak pit.

6.8 INDUSTRIAL WASTE MANAGEMENT

Hence, the tailings during the entire life-span as per present exploration can easily be dumped in the Tailing Pond area up to a height of 2 meters as against the proposed height 5 m of the tailing pond. There will be tailing dam around the tailing pond. Base of the dam will be 6m thick and it will be gradually tapered off to 3m at the top. There will be adequate arrangements provided in the dam to take out water from the tailings. This water will be taken to settling tanks and then would be circulated back to the beneficiation plant and no process water will be discharged to outside of M.L. Area and the project would operate on Zero-discharge system. During the process of beneficiation, Light Diesel Oil as collecting agent and Pine Oil as frothing agent shall be used @ 200 – 250 gm/ton of ROM and 50 – 70 gm/ton of ROM respectively. At the total ROM production of 13272 TPA, 2.65 TPA of LDO and 0.66 TPA of Pine oil will be used, which being of negligible quantity will not cause any harm.

6.9 SOLID WASTE MANAGEMENT

Mining waste

The over burden waste material generated during the mining operations will be dumped over an area of 2.338 ha at 5m average height in one terrace of 7.5 m height. Slope of terrace will be maintained equivalent with the angle of repose of the waste materials, i.e., around 37°30´ with the horizontal. The dump will be compacted and leveled and plantation will be done to control erosion due to rain and wind. Retaining wall will be constructed around the lower slopes of the waste dump to arrest the rain wash off waste materials. It will be made up of waste rock/ boulders. Garland drain will be developed around the waste dump

37 beyond the retaining wall to receive run-off water coming out of the retaining wall and settling tank will be made to receive the run-off water from the garland drain to settle the sediments and release clean water. Check dam is proposed to prevent rain wash off. The dumping ground has been selected on non-mineralized zone in an area of 2.338 ha within the mine lease area. The generated waste during mining activity is used to stack in Dump. The maximum height shall be maintained within statutory limits. The dump will be stabilized by plantation, growing grass and shrub over it. The sapling chosen for plantation may be avenue, forestry and other available local species.

Beneficiation waste:

Total generation of tailings during the plan period will be 25,503 m3. However, year wise generation of tailings is estimated to be as follows:

Volume of Tailings Year ROM graphite ore (in T) Tailings of 0.9% F.C. (in T) (@2.2 T/m3) (in m3) I 10920 9910 4505 II 11760 10672 4851 III 12600 11434 5197 IV 13272 12044 5475 V 13272 12044 5475 Total 61,824 56,106 25,503

The tailings during the entire life-span as per present exploration can easily be dumped in the Tailing Pond area up to a height of 2 meters as against the proposed height 5 m of the tailing pond. There will be tailing dam around the tailing pond. Base of the dam will be 6m thick and it will be gradually tapered off to 3m at the top. The tailings thus generated are valueless sand which have very less FC content of nearly 0.9%. These tailings are proposed to be sold off for local construction requirement as this is an excellent substitute of river sand. Moreover the region suffers from acute shortage of river sand. Thus the tailings can also be an alternate product from the project, subject to clearances from the concerned statutory authorities.

6.10 POWER REQUIREMENT & SUPPLY / SOURCE

The mining cum beneficiation project will draw its power supply via tapping onto 11KV/33KV line from SOUTHCO. Power will be mainly consumed for processing plant, water supply, lighting purposes and the energy consumption will be around 400 KVA.

Standby Power: M/s. Pradhan Industries proposes to set up a back-up captive power in the form of a 350KVA Diesel Generator set to ensure uninterrupted power supply for the running of the mine.

CHAPTER 7

REHABILITATION & RESETTLEMENT

As no settlement is going to be affected so, no R&R facility will be anticipated.

CHAPTER 8

PROJECT SCHEDULE AND COST ESTIMATES

8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION (TIME SCHEDULE FOR THE PROJECT TO BE GIVEN)

Prior to commencement of plant construction activities or mining activities the following statutory clearances/permissions will be availed by the project proponent. They are:-

1. Environment Clearance 2. Forest Clearance 3. Surface Right permission

Considering the above mentioned approvals are obtained and the approval date as start of (First Year -1)th Year. The following activities will be completed in the (First Year -1) period i.e. within a period of 1 year.

(First Year -1)

1. Installation of all the beneficiation plant equipment. 2. Construction of the plant setup. 3. Approval of Consent to Operate from the State Pollution Control Board. 4. Electricity connection from the nearby LT line to the mining lease area. 5. Water permission from the CGWA and the State Govt. authorities and laying of the entire water pipelines. 6. Construction of garland drain and settling pits for overburden, topsoil and tailing dumps. 7. Mines opening notice to the State Govt. and safety certification from Director General Mines Safety for the beneficiation plant and mine.

First Year

1. Construction of mine safety structure installation such as Retaining wall, etc. 2. Further embankment of tailing pond bund.

Second Year

1. Construction of additional mine safety structure such as Retaining wall, etc. if needed. 2. Further embankment of tailing pond bund.

Thus the entire project is expected to be completed within a period of 3 years. However the project is expected to start production post the first year i.e. First Year -1.

8.2 ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF THE PROJECT

The project is a mining cum beneficiation project. The mining equipment are all proposed to be used in hiring basis. Thus the associated cost w.r.t. mining would be working capital expenditure. The only capital cost involved in the project are w.r.t. the plant equipment, plant construction costs, electrical installation costs, mine safety structure installation cost, water pipeline costs, etc. The list of equipment proposed to be installed inside the plant premises are as follows:-

Beneficiation Plant Equipment Average Maximum Spare Sl Dry Solid Dry Solid Quantity Capacit No Equipment Handling Handling Required y on . Capacity(in Capacity(in Standby TPH) TPH) Material Handling Circuit 1 Hopper 10 10 1 2 Belt Feeder 4 5 1 3 Conveyor Belt 4 5 1 Rougher Stage 4 Ball mill 4 5 1 1 5 Agitator Tank 4 5 1 1 6 Pump box and slurry pump 4 5 1 1 7 Blunger 4 5 1 1 8 Rougher Floatation cell banks 4 5 1 1 Blunger for storing concentrate 9 4 5 4 from rougher floatation cell banks Pump box and slurry pump to 10 pump concentrate to 4 5 1 1 Hydrocyclone of cleaner stage Cleaner stage 11 Hydrocyclone 4 5 2 2 12 Ball mill 4 5 1 1 13 Agitator Tank 4 5 1 1 14 Pump box and slurry pump 4 5 1 1 15 Blunger 4 5 1 1

16 Cleaner Floatation Cell Banks 4 5 1 1 Blunger for storing concentrate 17 from 1st cleaner floatation cell 4 2 1 banks Pump box and slurry pump to pump 1st cleaner beneficiation 18 4 5 1 1 concentrate to Hydrocyclone of 1st cleaner stage Blunger for storing concentrate 19 from 2nd cleaner floatation cell 4 2 1 banks Pump box and slurry pump to pump 2nd cleaner beneficiation 20 4 5 1 1 concentrate to wet screening section 1st and 2nd cleaner stage intermediate structures Blunger for storing 1st and 2nd 21 4 4 1 stage tailings Pump box and slurry pump to 22 pump tailings of 1st and 2nd stage 4 5 1 1 cleaning to scavenger stage Scavenger Stage 23 Hydrocyclone 4 5 2 2 24 Ball mill 4 5 1 1 25 Agitator Tank 4 5 1 1 26 Pump box and slurry pump 4 5 1 1 27 Blunger 4 5 1 1 28 Scavenger Floatation Cell Banks 4 5 1 1 Blunger for storing concentrate 29 4 2 1 from Scavenger unit Pump box and slurry pump to 30 pump Scavenger unit concentrate 4 5 1 1 onto wet screening section Blunger for storing tailings from 31 4 5 2 1 Scavenger unit Pump box and slurry pump to 32 pump Scavenger unit's tailings to 4 5 1 1 rougher section's tailing blunger Tailing Disposal Stage Blunger for collection of tailings 33 from rougher and scavenger 5 2 sections

Tailing pump box and slurry pump 34 to pump the tailings to the tailing 4 5 2 1 pond Final concentrate processing Set of Wet screening beds of As 35 2 2.5 various mesh openings required Blunger for collection of 36 concentrate before introduction 4 5 1 into vacuum filter Pump box and slurry pump to 37 pump concentrate onto vacuum 4 5 filter 38 Vacuum Filter 2 2.5 1 39 Mechanical Drier 2 2.5 1 As 40 Dry Sieving 2 2.5 required 41 Pulverizer 2 2.5 1 42 Blender 2 2.5 2 43 Weighbridge 1 44 Transformer 500KVA 1 45 DG set 500KVA 1 Ancillary Equipment Pump box and slurry pump to 46 pump concentrate onto vacuum 4 5 8 2 filter

The plant equipment and infrastructure cost would be around Rs. 3.67 Crore.

The total mining lease infrastructure cost will include Retaining walls, garland drains, settling tanks, tailing pond dam, water distribution pipelines, etc. The total cost of Mine Lease infrastructure will be around Rs. 1.33 Crore. Out of this only 0.4 Crore of investment will be made prior to operationalization of the project. The balance Rs. 0.93 Crore will be spent over the next two years post operationalization of the mining lease and will be completely funded from the free cash flow generated by the project.

The year wise investment proposed to be made in the project is as follows:-

Year wise infrastructure construction cost (in Rs.) Second Third Fourth Fifth First Year -1 First Year Year Year Year Year Main plant 13284241 0 0 0 0 0 infrastructure

Cost of retaining wall, garland drain 3987120 3987120 5316160 0 0 0 and settling tank Total cost of 40665361 3987120 5316160 0 0 0 infrastructure

Thus total cost of the project is Rs. 4.07 Crore. The initial investment is expected to be done by the project proponent with the subsequent year’s investment to be taken care by free cash flows of the project.

COSTING

The project includes mining operations as well as beneficiation operations. The cost of the finished product is calculated by including the mining costs as well as the beneficiation plant cost.

MINING COSTS:-

Heavy Earth Moving equipment will be hired on rental to operate the mine. The mine will be operated as Category-A (OTFM) mine. Keeping in view the production of ROM ore @13,272 t / annum, machine population is required to be arranged in the following manner:

Unit operation Name Dia / Capacity Numbers Excavation & loading at 0.9m3 bucket Hydraulic excavator 1 the mine capacity Loading at the stack JCB / Front-end loader --- 1 yard Tipper Transporting 10T 3

Drainage of the quarry, Water pump pumping to overhead tank 5 HP 5 etc. Lighting Generator --- 1 Environmental 10 kl Protection & industrial Water Tanker 1

use

Management & Supervisory Personnel’s: Administrative & supervisory personnel will be 6 numbers as per the following table:

Place of Designation Qualification Numbers Working Mine Mine Manager Degree in mining engineering 1 with mine manager’s certificated of competency Mining Degree in mining engineering 1 Engineer Geologist M.Sc in Geology/Applied 1 Geology Foreman Foreman’s Certificate of 1 competency Mining Mate Mate’s certificate of competency 2 Total ------6

LABOURER (Skilled / Semi Skilled / Un-Skilled): A total of 40 persons are proposed to be employed in the mine for excavation of 170m3 / day as per the following calculation:

The peak total electricity consumption for the mining and its allied activities would be nearly 70 KVA. Surface water to the tune of 30 KLD will be used for dust suppression, green belt watering, drinking and sanitary purposes.

Thus the total costs related to mining are as follows:-

Total mining cost (in Rs/p.a.) First Year Second Third Year Fourth Fifth Year Year Year

Heavy earth 3394444 4021111 4739167 5491114 6040226 moving equipment hiring charges Mining Electricity 852735 938009 1090482 1199530 1319484 Cost Salary Cost 3422778 3765056 4141561 4555717 5011289 Surface water cost 39987 41986 44086 46290 48604 Total Cost 7709944 8766162 10015296 11292652 12419603

Cost of ROM (in Rs/T) First Year Second Year Third Year Fourth Year Fifth Year Annual ROM 10920 11760 12600 13272 13272 production Total Mining 7709944 8766162 10015296 11292652 12419603 Cost Total cost of ore 7709944 8766162 10015296 11292652 12419603 at mine pithead Cost of production of 706 745 795 851 936 ROM/ton

BENEFICIATION PLANT PROCESSING COSTS:-

Total maximum Graphite ROM processed by the plant is 13,272 TPA. It will produce 730 TPA of 85% FC Graphite Concentrate and 111 TPA of 65% FC Graphite concentrate. However this figure may change depending on the grade of Graphite concentrate demanded by the customers. However on an average 82.35% FC grade concentrate of 841 T will be produced annually from the beneficiation plant. The plant will be utilizing other raw materials in the beneficiation process. They are:-

Sl. No. Description Quantity 1 Graphite Ore 13,272TPA

2 Turpentine Oil/Pine oil 1000 LTR/Year 3 Diesel oil 3500 LTR/Year 4 Coal (Only meant for rainy season) 50 TPA 5 Sodium Silicate 30 kg/year

Moreover the plant requires other consumables such as:-

Particulars Average consumption for 600 hours C.I.Ball - 75 MM 4.00 MT C.I Ball - 50 MM 1.00 MT C.I liner 1.60 MT C.I Impler 0.06 MT Disk Impler 0.04 MT Washing Ring 0.21 MT WashingUnion 0.07 MT Washing Drum 0.31 MT Pine Oil 400.00 LT Pinion Oil 10.00 LT HSD 1550.00 LT Sodium Silicate 6.00 KG Coal 6.25

Management & Supervisory Personnel’s: Administrative & supervisory personnel will be 4 numbers as per the following table:

Place of Designation Qualification Numbers Working Wet Plant manager Degree / Diploma in mechanical 1 beneficiation engineering plant Supervisor Diploma / ITI in mechanical 1 engineering Asst. ITI in mechanical engineering 2 Supervisor Total ------4

LABOURER (Skilled / Semi Skilled / Un-Skilled): A total of 8 persons are proposed to be employed in the beneficiation plant for as per the following calculation:

Details (ref : 5th year) Quantitative Aspects Production of ROM 13,272 t

No of working days 250 Daily excavation required in one shift working 53 t OMS (assumed) 7.5 t Laborers required 53 / 7.5 = 7 Absents (assuming 10% of total persons) 7 x 5% = 1 Total Requirement 7 + 1 = 8

The peak total electricity consumption by the beneficiation plant is expected to be nearly 321 KVA. The plant will require make-up water of 30 KLD to be drawn from the water harvesting pond, bore hole and the nala.

Cost of processing of ROM (In Rs. /p.a.) First Year Second Third Year Fourth Fifth Year Year Year Cost of plant officials 1260000 1260000 1260000 1260000 1260000 and labour Cost of electricity 2046812 2314472 2603781 2879782 3023771 Cost of surface water 33686 38091 42853 47395 49765 Cost of plant 3196240 3442105 3687969 3884661 3884661 consumables Total cost 6536738 7054668 7594603 8071838 8218197

Total Cost of processing ROM inclusive of Royalty (In Rs. /p.a.) First Year Second Third Year Fourth Fifth Year Year Year Cost of processing ore 6536738 7054668 7594603 8071838 8218197 at plant Royalty and other 706580 837025 986495 1143018 1257320 taxes Total cost of 7243318 7891693 8581098 9214856 9475517 processing

Cost of processing per First Year Second Third Year Fourth Fifth Year ton of finished product Year Year (in Rs/ Ton) 10467 10589 10747 10956 11266

Cost of production (in Rs./ Ton) Second Fourth First Year Third Year Fifth Year Year Year Cost of ore 7709944 8766162 10015296 11292652 12419603 Conversion ratio 15.8 15.8 15.8 15.8 15.8 Cost of ore to produce per ton of finished 11141 11763 12543 13426 14766 product Cost of processing to produce per ton of 10467 10589 10747 10956 11266 finished product Total cost to produce per ton of finished 21608 22352 23289 24382 26032 product

Sale Value:-

Roughly two products will be manufactured from the processing plant. They are:-

1. 730 T of Processed Graphite having 85% FC content and 2. 111 T of Processed Graphite having 65% FC content.

The price of 85% FC content processed graphite is roughly Rs. 40,000 and the price of 65% FC content processed graphite is roughly Rs. 30,000 at current market prices. Thus

Revenue of the project (in Rs/p.a) Second Third Fourth First Year Fifth Year Year Year Year Quantity of 85% FC concentrate 600 647 693 730 730 produced(in T) Quantity of 65% FC concentrate 92 99 106 111 111 produced(in T) Total finished product 692 745 798 841 841 Price of 85% FC 40000 44000 48400 53240 58564 concentrate Price of 65% FC 30000 33000 36300 39930 43923 concentrate Price /ton of finished 38676 42543 46797 51477 56625 product

Total revenue on selling 24014670 28448148 33528174 38847978 42732776 85% FC concentrate Total revenue on selling 2749729 3257372 3839045 4448174 4892991 65% FC concentrate Total Revenue 26764400 31705520 37367220 43296152 47625767

Profit and Loss Statement:-

Profit and Loss Statement for the Project (in Rs./p.a) Second Fourth Particulars First Year Third Year Fifth Year Year Year Revenue from 2676440 31705520 37367220 43296152 47625767 Operations 0

Expenses Cost of processing 1495326 ROM into finished 16657855 18596393 20507508 21895120 3 product 1181113 PBDT 15047664 18770826 22788643 25730647 7 Depreciation and Amortization 4066536 4058594 4184351 3765916 3389324 Expenses Profit before Tax 7744601 10989070 14586475 19022727 22341323 Current Tax 2323380 3296721 4375943 5706818 6702397 Profit after tax 5421221 7692349 10210533 13315909 15638926 Mandatory CSR contribution to 108424 153847 204211 266318 312779 Collector's fund

Cash Flow Statement Second Fourth First Year Third Year Fifth Year Year Year Cash flows from

Operating Activities PAT 5421221 7692349 10210533 13315909 15638926 Depreciation 4066536 4058594 4184351 3765916 3389324 Net cash flows from 9487757 11750943 14394884 17081825 19028250 Operating Activities

Cash Flows from

Investing Activities

Purchase of New 3987120 5316160 0 0 0 Equipment

Net Cash Used for 3987120 5316160 0 0 0 Investing Activities

NET INCREASE/(DECREAS 5500637 6434783 14394884 17081825 19028250 E) IN CASH CASH, BEGINNING 0 5500637 11935420 26330304 43412129 OF YEAR CASH, END OF YEAR 5500637 11935420 26330304 43412129 62440379

The cost of Environment Site Assessment (ESA) would be 2.5% of the total project cost and would be Rs. 10.5 lakhs. This amount is proposed to be spent on developing access roads in nearby villages and in development of drinking water facilities in nearby villages.

Thus we can see from the above calculations that the project is viable since it is able to generate positive cash flows from the first year of operations and is able to take care of further investment requirements from the first year itself.

Moreover the Internal Rate of Return (I.R.R.) of the project comes out to be 12.2% and the Net Present Value (NPV) for the project comes out to be Rs. 29.34 Lakhs after considering the expectation on investment by the project proponent to be as 10%.

It is to be noted that these values are expected to rise substantially once the complete exploration of the mining lease area is completed post which the returns are expected to rise significantly.

CHAPTER 9

ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

FINANCIAL AND SOCIAL BENEFITS WITH SPECIAL EMPHASIS ON THE BENEFIT TO THE LOCAL PEOPLE INCLUDING TRIBAL POPULATION, IF ANY, IN THE AREA.

The partners of M/s. Pradhan Industries have nearly 35 years of experience in graphite mining and processing of low grade graphite rom. They are the largest producer of processed graphite in the State of Odisha as well as eastern region of India. They are also associated in mining of Iron ore and its marketing. Their processed graphite products have very high market acceptance due to its quality, high grade and timely delivery. The project will contribute to socio-economic development of the area including direct employment scope for persons viz., skilled, semi-skilled and unskilled mine workers, supervisory staff, mining engineers, geologists and surveyors. It would bring following benefits to the people of the surrounding villages:  Generation of employment and improved standard of living;  Establishment of micro and small scale projects, agro based industries with cascading employment opportunities;  Increased revenue to the state by way of royalty, taxes and duties;  Improved green cover;  Superior communication and transport facilities etc.  Health, hygiene, drinking water supply and education facility for the local population.  Various awareness programmes like family planning, different health issues viz., T.B., Malnutrition, AIDS etc, safety and environment aspects.

The mining and industrial activities carried out in the area will give a positive socio- economic impact upon the nearby human settlement and will bring an overall and inclusive growth of the area.