PRE-FEASIBILITY REPORT of M/S SRI SHIRIDI SAI MINERALS, QUARTZITE MINES, (ML Area 60.704 Ha.) Sy

PRE-FEASIBILITY REPORT OF M/S SRI SHIRIDI SAI MINERALS, QUARTZITE MINES, (ML area 60.704 Ha.) Sy. 137 V.R. GUDEM (VILL), PONDURU (TEHSL), SRIKAKULAM (DIST),

ANDHRA PRADESH.

Submitted to, Ministry of Environment, Forest & Climate Change

(MoEFCC), Government of India, New Delhi, India.

Client: SHRI SHIRDI SAI MINERALS PRIVATE LIMITED, S.P.R Puram (V), G.Sigadam (M), Srikakulam District , Andhra Pradesh PIN 532148

Consultant: RAMKY ENVIRO ENGINEERS LIMITED, Ramky Grandiose, 2nd Floor Ramky Towers Complex, Gachibowli Hyderabad - 500032 Telangana

March, 2016

Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

1. Executive Summary

S.No. Description Details 1. Name of the Project M/S SRI SHIRIDI SAI MINERALS, QUARTZITE MINES. 2. Location of the Mine The mine lease area is located near

The Mine lease area is 60.704 Ha

Coordinates of the Mine Lease area are Sl. No. Latitude Longitude 1 18 19 06.3 83 46 34.2 2 83 46 34.2 83 46 45.1 3 18 19 14.2 83 46 51.8 4 18 19 14.5 83 47 02.3 5 18 19 18.9 83 47 10.4 6 18 19 22.3 83 46 58.7 7 18 19 24.2 83 46 46.6 8 18 19 29.1 83 46 40.9 9 18 19 28.7 83 46 36.1 10 18 19 19.6 83 46 34.9 11 18 19 14.3 83 46 30.3

Survey of India Toposheet No. OLD NEW 65N15 E44L15 65N11 E44L11 65N12 E44L12 65N16 E44L16

3. Production /Estimated Proposed capacity Reserves 36547.20 MT per year.

4. To tal area reserved for ML 60.704 Ha. to Shirdi Sai Minerals. 5. Total Water requirement Water requirement for the project is 53 KLD approx. which & Source will be met through ground water, wells nearby villages. 6. Working hours Three shift operations with 8 hour shift has been planned. 7. Manpower [Operation] S.No Designation Total 1 Officers 1 2 Supervisors 1 3 Engineers 1 4 Ministerial staff 6 5 Skilled workers 3 6 Semi-Skilled worker 48 7 Unskilled worker 8 Source: Approved Mine Plan by DoMG, A.P

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

S.No. Description Details 8. Estimated Cost of the Total Project Cost is 6.5 cr. Project

2. Introduction of the Project / Background Information

I. Identification of Project and Project Proponent. (In case of mining project, a copy of mining lease/letter of intent should be given)

The lesser M/s Sri Shiridi Sai Minerals is a private ownership firm. They have started mining operations in 2005. They have dug 6 pits for exploration of minerals. The lesser was proposed to produce about 30941 MT of quartzite per annum, totaling to 154704 MT in first 5 years plan period.

Table 1. Year wise production and development achieved vs proposed production in AMP. Sl. Production (MT) Years No. Proposed in AMP Achievements 1 2005-2006 30720 810 2 2006-2007 31488 480 3 2007-2008 31488 780 4 2008-2009 29520 990 5 2009-2010 31488 1510 Total 154704 4570

II. Brief Description of Nature of the Project

The proposed project is Open cast manual mining of Quartzite minerals. The mine lease area is 60.704 ha hence the project falls in schedule 1(a) of category ‘A’.

Quartzite is a hard, non-foliated metamorphic rock which was originally pure quartz sandstone.

Quartz is the most abundant and widely distributed mineral found at Earth's surface. It is present and plentiful in all parts of the world. It forms at all temperatures. It is abundant in igneous, metamorphic and sedimentary rocks. It is highly resistant to both mechanical and chemical weathering. This durability makes it the dominant mineral of mountaintops and the primary constituent of beach, river and desert sand. Quartz is ubiquitous, plentiful and durable. Minable deposits are found throughout the world.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

In this area the geological reserves are re-established by geological mapping of the area. The reserves are re-established for G1 & G2 category of UNFC system based on degree of exploration and exploitation of mineral carried out in the mining lease area.

III. Need for the Project and its Importance to the Country and or Region

The technical definition of quartzite is that it is a metamorphosis rock with high silica content (determined to be at least 70 %).

Because of its hardness and angular shape, crushed quartzite is often used as railway ballast. Quartzite is a decorative stone and may be used to cover walls, as roofing tiles, as flooring, and stair steps. Its use for countertops in kitchens is expanding rapidly. It is harder and more resistant to stains than granite. Crushed quartzite is sometimes used in road construction. High purity quartzite is used to produce ferrosilicon, industrial silica sand, silicon and silicon carbide. During the Stone Age quartzite was used, in addition to flint, quartz, and other lithic raw materials, for making stone tools.

IV. Demand- Supply Gap

The production of quartz at 1041 thousand tonnes in 2012-13 increased by thirty three percent as compared to the preceding year.

Andhra Pradesh continued to be the major producing state of quartz in the year 2012-13 also accounting for 59% of the total production followed by Rajasthan (16%), Gujarat (13%), Jharkhand (4%), WestBengal (3%), Tamil Nadu & Chhattishgarh (1% each) and the remaining three percent production was contributed by Bihar, Odisha, Karnataka and Madhya Pradesh. About 54% of the production during the year 2012-13 was reported by 26 mines including 4 associated mines having production above ten thousand tonnes. 27 mines including 4 associated mine having annual production between five thousand to ten thousand tonnes contributed about 19% of the total production. The remaining 27% was the contribution of 366 mines including 128 associated mines having annual production below five thousand tonnes.

However Production of quartzite at 365 thousand tonnes in 2012-13 increased by 34% as compared to that in the previous year mainly due to increase in mines reporting production in Andhra Pradesh and Chhattisgarh. In order to meet the domestic and international demand of minerals all over the world.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

V. Imports vs. Indigenous Production

India is self sufficient to meet the demands of the market with the GDP projected at 10 % in the coming decades in view of the infrastructure. Facilities going across the region the growth rate of demand will increase to meet the expansion of new proposal are muted.

VI. Export Possibility

The Quartzite is useful for metallurgical industry, ceramics industries, abrasive industries and glass and molding industry. The quartzite is mainly used for ceramic and isolators manufacturing units.

M/s. Sri Shiridi Sai Minerals proposed to supply to oil drilling units.

VII. Employment Generation (Direct and Indirect) Due to the Project

The mining activity is proposed as open cast manual mining for Quartzite mineral. The following are personnel have been developed for undertaking mining operation in the proposed area to work 300 days.

Table 2. Man power requirements S.No Designation No. of Employee 1 Officers 1 2 Supervisors 1 3 Engineers 1 4 Ministerial staff 6 5 Skilled workers 3 6 Semi-Skilled worker 48 7 Unskilled worker 8 TOTAL 68 Source: Approved Mine Plan by DoMG, A.P

Since the equipment will be hired to work in the mine, the same will be operated and maintained by the contractor’s personnel.

3 Project Descriptions I. Types of Project Including Interlinked and Interdependent Project, if any

The proposed project is mining of Quartzite mineral and no interlinked is proposed.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

II. Location (Maps Showing General Location, Specific Location and Project Boundary & Project Site Layout with Coordinates)

V.r.gudem is a Village in Ponduru Mandal in Srikakulam District of Andhra Pradesh State. It is located 16 KM towards west from District headquarters Srikakulam 667 KM from State capital Hyderabad.

Public Road: Srikakulam is the Nearest Town to V.r.gudem. Srikakulam is 25 km from V.r.gudem. Road connectivity is there from Srikakulam to V.r.gudem.

Railway Line: Ponduru Rail Way Station (5Km appx), Dusi Rail Way Station are the very nearby railway stations to V.r.gudem. However Vishakapatnam Rail Way Station is major railway station 97 KM near to V.r.gudem

Airways: The nearest airport is at Vishakhapatnam Airport- 102 KM and Rajahmundry Airport- 279 KM.

The index map of the site is given in Figure 1. The location map is shown with the 10 Km radius from the periphery of the plant boundary in Figure-2.

The entire MLA including 10km buffer area falls in Survey of India (SOI).

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

FIGURE-1: INDEX MAP SHOWING THE SHRIKAKULAM DISTRICT

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

FIGURE-2: GOOGLE MAP OF THE PROJECT SITE

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

FIGURE-2: TOPO-MAP OF THE PROJECT SITE

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

III. Details of alternate sites (The basis of selecting the proposed site in-terms of environmental considerations should be highlighted)

The mining project is site specific project as it is related to occurrence of Quartzite Minerals in the mother earth. Hence no alternative sites were studied for the purpose.

IV. Size or Magnitude of Operation

The mine lease area is 60.704 Ha. The totals proved geological reserve are considered as mineable reserves which is 4937794 MT. At the rate of 36547.20 MT Quartzite minerals production with 90% recovery, these reserves can be exploited for about 135 years.

Table 3. Geological reserve details Mineral Waste Waste Sl. Code Geological Reserve Recovery Production Production No. Category UNFC (MT) 90% (MT) (MT) (M3) 1 Proved G1 111 5486438.4 4937794.56 548643.8 274321.9 2 Proved G2 122 1395840 1256256 139584 69792 3 Proved G3 222 816768 735091.2 81676.8 40838 Source: Approved Mining Plan by DoMG, A.P

V. Project Description with Process Details (A schematic diagram/flow chart showing the project layout, components of the project etc. should be given)

The proposed project is open cast manual mining by cutting multiple benches of 1.5 to 2 m height. Mining operation is proposed by utilizing crow-bars, pick-axe, pavdas and gammelas and blasting if required. Ocationally pay loaders will be used for excavation of minerals and loading in case man power is less.

The quartzite is hard in structure, therefore it is proposed to undertake blasting by using air compressors and drilling jack hammers, with drilling rods.

Mined out Quartzite will be sized to 2 inch to 6 inch and stacked at the pit head. Later, the minerals will be loaded manually by contract labourers and dispatched to the respective market destination and the waste will be handled by tractors trawlers from working pit to dumping yards. Trucks will be used for transportation of mined quartzite minerals to distance destination.

For fragmentation of insitu Quartzite, the blasting is conducted in this area. The blast hole of 1.5-2 m is drilled with the help of 34mm drill jack hammer and air compressor of 250 cfm capacity. It is proposed to drill 1.5 m deep shot hole with

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

1 m spacing and 0.75 m burden. It is proposed to use class II slurry explosive in their mine.

Process Flow Diagram is given in Figure-3 while surface plan and conceptual plans are given in Figure-4 and Figure-5 respectively.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

Figure-4: Surface Plan

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

Figure-5: Conceptual Plan

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

VI. Topography and Drainage

Srikakulam District, formerly known as Chicacole, is the extreme northeastern District of Andhra Pradesh, situated within the geographic co-ordinates of 18°- 20’ and 19°-10’ N and 83°-50’ and 84°-50’ E. The District is skirted to a distance by Kandivalasagedda, Vamsadhara and Bahuda at certain stretches of their courses white a line of heights of the great Eastern Ghats run from North East. Vizianagaram District flanks in the south and west while Orissa bounds it on the north and Bay of Bengal on the East.

There are nine rivers present in the Srikakulam Dist. The Nagavali, Vamsadara, Suvarnamukhi,Vegavathim, Mahendratanaya, Gomukhi, Champavathi, Bahuda and Kumbikotagedda are the important rivers of the dist. The Vamsadara river rises in the Eastern Ghats of Orissa state and enters Srikakulam dist in Bhamini mandal and finally falls in to the Bay of Bengal near Kalingapatnam. The Nagavali and Suvarnamukhi rivers also originated in the Eastern Ghats while Nagavali enters in Vangara mandal. Suvarnamukhi joins Nagavali at Sangam Village in Vangara mandal and confluences in the Bay of Bengal at Kallepalli near Srikakulam. The vegavathi river rises in Pachipenta Village and flow from West to East, ultimately joining the river Suvarnamukhi. Gomukhi joins Suvarnamukhi at Sirlam Village of Vizianagaram dist. Mahendratanaya which is a tributary of Vamsadara, joins the latter at Komanapalli Village in Hiramandalam mandal. The Bahuda river also rises in the eastern ghats enter Srikakulam dist at Boddabada Village of Ichapuram mandal and flow through Ichapuram and Kaviti, Mandasa and reaches into the Bay of Bengal at Donkuru Village.

VII. Blasting

Per day 15.04kg of Explosives, 75.2m fuse wire, and 50 detonators are proposed to use to produce 135.36MT of Quartzite ROM at the rate of 300 working day per year.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

VIII. Mining Equipment

Total machinery requirement for the proposed mining operation is given below:

Table 4. List of Equipments for Proposed Mine Type of Equipment Number Motive Power Wagon drills with compressors 3 Diesel Compressor with Jack hammer 2 Diesel Excavators 2 Diesel 10T – Tripper trucks 2 Diesel Water sprinkler 2 Diesel Explosive van 1 Diesel Jeeps 1 Diesel Portable magazine

X. Raw Materials Required along with Estimated Quantity (Source, Marketing Area of Final Product, Mode of Transport of Raw Material and Finished Product)

The quartzite is hard in structure, therefore it is proposed to undertake blasting by using air compressors and drilling jack hammers, with drilling rods.

XI. Resources Optimization / Recycling and Reuse (Envisaged in the Project, if any, should be briefly outlined)

Storm water management, wastewater management and land reclamation are the major concerns within the project site.

 During mine operations, it is planned to have garland drains to divert the surface runoff into the nearby surface streams.  The water accumulated in the mining pits will be collected and diverted into the settling ponds which in-turn can be used for other purposes.  The wastewater generated by the users will be collected and diverted into the soak pits.  Oil traps and Grease traps will be used to prevent contamination land contamination.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

 After completion of each sub phase of mining the land reclamation will be done.

XII. Availability of Water Sources, Energy /Power Requirement and Sources should be given a. Water

The requirement of water for industrial use and domestic use at various site services will be met through ground water sources. It will be treated if required so as to make it suitable for drinking purposes. Untreated water will be used for industrial and domestic use.

There are several hand pumps in nearby village. However, these hand pumps, most of the time in a year except in rainy season, remain dry and it is learnt that villagers face acute water problem. Therefore, if possible, the water can also be brought from the neighboring surface water sources by water tankers and will be used for road sprinkling and other industrial/ domestic use, as and when need arise.

Spraying of water at the faces, haul roads will not generate any waste water due to would evaporation/percolation to lower levels through the strata below (normally porous). There shall be no recycling of water on this account.

Table 5. Water Requirement

Water Requirement for the Project Waste Water Water Sl. Type of water Unit Quantity Requirement Requirement No Service generation (LPD) (KLD) (KLD) 8 hours shift (2 45 L per 1 Manpower (3.06) ≈ 3 2.7 shifts/day) 68 nos. person 25,000 L per 2 Green Belt * 18 Ha 45 - Ha 3 Dust Suppression & for Firefighting 5 - Total Water Requirement 53 2.7 * Water for greenbelt not required during rainy days (around 40 to 50 days) and on following days (around 40 to 50 days) of the rainy days as the rain water collected from garland drains after necessary treatment will be used for greenbelt development.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

b. Power

The power line will be drawn from nearest sub-station to the local sub-station from where the power will be supplied to the mine and other functional buildings. For meeting emergency requirement during power failure DG set (50KVA) are proposed.

XIII. Quantity of Wastes Generated (Liquid and Solid) and Scheme for their Management /Disposal

Top soil with stony material will be stacked in waste dumping yard situated at southwestern side of mine lease area.

While selecting the non – mineralized sites for dumps as aforesaid, the following factors will be kept in view:

 Configuration of the ground and its proximity to the working pit/pits.  Non-interface with any waste water source.  Reclamation of low lying grounds.  Ease in building roads to the dumps.  Terminating dump toe at a suitable distance from the nearby water source, if any.  Maintaining safe distance from permanent features like public road, power line, villages etc. The waste such as soil mixed with stony material will be generated by development work and production. At the end of the year total quantity of 2030.4 m3 waste will be generated.

As per the Mining plan the waste quantity will be dumped at southwestern side of the mining lease area. Necklace trench will be formed surrounding the waste dumping yard to avoid run off of waste material. The year wise waste generation & handling are given below.

Table 6. Waste generation details Waste from Total RL at dump Waste by 30% swelling Height Year development waste yard m production m3 m3 m m3 m3 I - 2030.4 2030.4 2639.52 0.54 96.54 Source :Approved mine plan by DoGM, A.P

XIV. Schematic Representations of the Feasibility 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.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

4. Site Analysis

I. Connectivity

Public Road: Srikakulam is the Nearest Town to V.r.gudem. Srikakulam is 25 km from V.r.gudem. Road connectivity is there from Srikakulam to V.r.gudem.

Airways: The nearest airport is at Vishakhapatnam Airport- 102 KM and Rajahmundry Airport- 279 KM.

II. Land form, land use and land ownership

The proposed mine lease area is 60.704 ha in V.R Gudem village, ponduru, Srikakulam & A.P. The lease area is surrounded by government land at north & east, agriculture land at south and stone quarry at west side.

Table 7. Details of proposed project Land

District & Mandal Village S.No. Area in Ownership/occupancy State Ha. Srikakulam Ponduru V.R Gudem 137 60.73 Gov. waste land & A.P

III. Regional & Local Geology

Regional geology of the area is a part of eastern ghat mobile belt formations falling in central khondalite zone of eastern ghat mobile belt. The rock formation belongs to scattered eastern ghat mobile belt of archaean age. The mobile is divided into three zones viz. western charnockites zone (WCZ), Central khondalite zone (CKZ) and Eastern Migmatite zone (EMZ). The broad distribution of Rocks types of rock in srikakulam district are granite gneiss, kondalites, charnokites, leptynites, Rajamundry sand stone, Quartzite at some places.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

Table 9. Regional Geology Geological Era Geological Units Phenerozoic Teriary Sedimentary Rocks, Quaternary deposits. Proterozoic Granitic gneiss, Epidote gneiss Late Archaean to proterozoic Unclassified granites and migmatites Archean Peninsular gneiss with older granites and migmtites. Migmatite complex. Charnokite group Khondalite group- quartzites. Source :Approved mine plan by DoGM, A.P

The local Geology of the area comprises of quartzite through-out the applied area overlapped by thin soil cover at south –eastern side.

Table 10. Local Geology status Soil cover Weathered & disintegrated quartzite etc. 0 to 0.1 to 0.5 thick at sides of mineralization area. Quartzite Mineralization to a large extent in total applied 0 to 10 m at surface (0 to area. 74m from ground level) Source :Approved mine plan by DoGM, A.P

IV. Climatic Conditions

The climate of the area is semitropical with rainfall mainly during months of June to September. However, there is some rainfall during other months of the year with occasional dry months between December and March.

V. Temperature and Humidity

The district is near to the coast due to which it experience hot and humid.

VI. Rainfall

In the proposed region rain fall is very less. Due to gentle slope nature of the land, the rain water will flow down towards the lower levels easily

VII. Social Infrastructure Available

All infrastructure facilities such as education, health facilities and other social facilities are adequate at district headquarter.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

5. PLANNING

I. Planning Concept (Type of industries, facilities and transportation etc.) Town and Country planning/Development authority Classification

The existing road will be strengthened in and around the mine for transportation of products from the mine. This will also enhance the transportation facilities of the area.

The mining establishment presents vast opportunities of employment to various posts and under various cadres such as:

 Officers  Supervisors  Ministerial staff  Technical workers  Skilled workers

The estimated direct employment in the mines shall be around 150. This strength is considered to be adequate for operating the mines on the proposed scale. The persons proposed hereunder shall be inducted in a phased gradual manner depending on stage(s) of mine development and requirements assessed from time to time.

II. Population Projection

Due to proposed project around 68 persons will be in the mining activity, they will be mostly from nearby villages, only few people will be accommodated at the nearby villages.

III. Assessment of Infrastructure Demand (Physical & Social)

It is obvious to have some of the essential infrastructures to facilitate the employees. For this purpose it is planned to have canteen, medical facility, etc. Other physical and social facilities are available in this area.

IV. Amenities/ Facilities

All infrastructure facilities such as education, health facilities and other social facilities are available at district headquarter due to which the proposed site is facilitated with adequacy in amenities. As most of the workers are employed from the surrounding villages, they would be using available medical facilities in the nearest primary health center. However, medical facilities available in

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

Government Hospitals, primary health centers at nearby villages and district hospital will also be made available to the supervisory personnel at company’s cost. A medical ambulance will be provided at the mine for use in emergency.

6. Proposed Infrastructure

I. Industrial Area (Processing Area)

Company proposes to set up a few essential site services in the barren zone of the plateau area, which will be nearer to the working pit, existing road, as well as nearer to electric power transmission. The various temporary site services proposed to be constructed will be are as follows:

 Mine Managers Office  Small Store  Small workshop for minor and routine maintenance  Drinking and industrial water supply from a deep bore well  Canteen  First aid station  Rest shelter

II. Residential Area (Non-Processing Area)

No residential area is proposed for the mines. Residential arrangement for senior field officers and senior supervisory personnel will also be arranged preferably at nearby villages.

III. Green belt

The management proposes to develop green belt by carrying out avenue plantation on both sides of existing roads used for mining operations, neighborhood of mine camp and office premises. Since the mining area should be given back to the concerns after completion of mining activity, development of greenbelt is confined to the existing road sides only.

IV. Social Infrastructure

M/s Sri Shiridi Sai Minerals proposed to contribute to meet the statutory requirements; a first-aid station and rest shelters will be provided at the mine site. It is proposed to contribute in improving social infrastructure in near by villages.

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

V. Drinking Water Management

The requirement of water for industrial use and domestic use at various site services will be met through ground water sources.

VI. Sewerage System

No wastewater shall be generated as a result of mining activities.

In order to prevent rain runoff entering the working mine pit, peripheral garland drains and catch drains will be developed beyond the periphery of mining area and diverting the same into natural seasonal streams on hill slopes. The sludge from the sump will be cleared off after every rainy season.

The domestic wastewater will be sent to septic tank followed by soak pit.

7. Rehabilitation and Resettlement (R & R) Plan

There are no historical monuments in the ML area; hence no impact of mining on any such place is anticipated.

The mining operations are going to displace tribal communities engaged in agriculture. It is proposed to employ local people for manual ore sorting, stacking and loading operation. This will give employment to about 68 people. Secondary and Tertiary employment will be created for similar numbers.

The proposed land is a government waste land. No private lands are incorporated in the proposed lease area.

8. Project Schedule & Cost Estimates

I. Likely Date of Start and Date of Completion (Time schedule for the project to be given)

The mining operations will be started after obtaining all necessary statutory clearances from the required departments.

II. Estimated Project Cost along with Analysis in-terms of Economic Viability of the Project.

Total Capital cost of the project: Rs. 6.5 Crores

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

9. Analysis of Proposal (Final Recommendations)

I. Financial and social benefits (With Special Emphasis on the Benefit to the Local People Including Tribal Population)

Based on the growing demand in the state of Andhra Pradesh over the next 10 years, the proximity of the project location is an advantage with respect to reduction in freight of Quartzite to the markets. The financial viability also shows a good rate of return from the project. Considering the above, M/s. Sri Shiridi Sai Minerals is planning to go ahead with the project, once it gets all the statutory approvals.

Table 11. Activities proposed by M/s Sri Shiridi Sai Minerals. Employment: Preference will be given to locals for employment based on qualifications & requirement Medical facilities: Contribute in Medical facilities like Medical aid & organizing regular medical camps for employees & people of nearby villages. Educational facilities: Will contribute for Basic educational facilities for children of employees as well as nearby village. Infrastructure Approach roads will be maintained. facilities:

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Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

Annexure ‘A’ –Approval for Mine Lease Area

Prepared by Ramky Enviro Engineers Limited, Hyderabad Page 23

Pre-feasibility Report of M/s Sri Shiridi Sai Minerals, Quartzite Mines, V.R. Gudem (village) Ponduru (Mandal), Srikakulam (district), Andhra Pradesh.

Prepared by Ramky Enviro Engineers Limited, Hyderabad Page 24