Pre-Feasibility Report Excellent Granites

Pre – Feasibility Report M/s. Excellent Granites Sri R. Rajasekharan D. No. 7-17-17/1, Flat No. 302, Vrudavan Apartments, Kirlampudi Layout, Visakhapatnam Mobile No. +91 73826 02243

1. Executive Summary M/s. Excellent Granites proposes to conduct semi mechanized opencast method quarrying for colour granite extraction in an area of 2.825ha in Survey No. 388, Binnala Village, Kanchili Mandal, , . In Principle of quarry lease called for by Department of Mines and Geology, Government of Andhra Pradesh vide Notice No. 10168/R1-1/2011 dated 04.07.2011. It is proposes to conduct semi mechanized open cast method quarrying for multi color granite production of 1200 m3/annum from the lease area. Mining plan is approved by the Zonal Joint Director of Mines and Geology, Visakhapatnam, Government of Andhra Pradesh vide Letter No. 2662/MP/11 dated 30.07.2011. Capital proposed for the quarrying is Rs. 13 Lakhs. 2. Introduction of the Project / Background Information: i) Identification of Project and project Proponent In Principle of quarry lease called for by Department of Mines and Geology, Government of Andhra Pradesh vide Notice No. 10168/R1-1/2011 dated 04.07.2011. Mining plan is approved by the Zonal Joint Director of Mines and Geology, Visakhapatnam, Government of Andhra Pradesh vide Letter No. 2662/MP/11 dated 30.07.2011. ii) Brief description of nature of the project The mining operations are in the view of shallow nature of the deposit; open cast mining method shall be adopted in a semi mechanized manner by forming benches of 6m height. Hydraulic excavator and compressor jack hammers were used for cutting the rock. Therefore the machines selected and the operational pattern and timings form important details for arriving at the impact on environment. Need for the project and its importance to the country and or region The demand for granite increased due to rapid industrialization and growth in infrastructure. So the number of granite producing quarries is increasing in . Granite is the chief material for the export industries like monuments, flooring slabs, Kitchen articles,

1 | P a g e Pre-Feasibility Report Excellent Granites sculptures & export. Based on the demand of Granite, the lessee intends to produce the required quantity of Colour Granite for domestic market. iii) Demand - Supply Gap The project is envisaged to meet the demand supply gap in both domestic market and export market, as Granite demand is increasing day by day. iv) Imports Vs. Indigenous Production The unit is being set up to meet the increasing demand of the Granite in the national and international market. This is not for import substitution. v) Export possibility The finished products shall be exported to the domestic and international market based on quality. vi) Domestic/export Markets: The project is expected to have domestic and export sales based on the quality of mineral, demand and costing etc. vii) Employment Generation (Direct and Indirect) due to the project: The following employees are required for the proposed mining project/activity. S. No Description Quantity 1 Mine Supervisor 1 2 Compressor operator 2 3 Drillers 18 4 Excavator operator 2 5 Excavator helper 2 6 Tipper drivers 2 7 Cutters 12 8 Helpers 3 9 Watchman 2 10 Water carriers 2 11 Accountant 1 12 Storekeeper 1 13 Supervisor 2 Total 50 Drinking water and first aid facilities are provided in this area. 3. Project Description i) Type of Project including interlinked and interdependent projects, if any: The mining operations are in the view of shallow nature of the deposit; open cast mining method shall be adopted in a semi mechanized manner by forming benches of 6m height. Hydraulic excavator and compressor jack hammers were used for cutting the rock. 2 | P a g e Pre-Feasibility Report Excellent Granites ii) Location (maps showing general location, specific location, and project boundary & project site layout with coordinates). M/s. Excellent Granites proposes to conduct semi mechanized open cast quarrying for colour granite average production of 1200 m3/Annum. The proposed Quarry lease area of 2.825ha in Survey No. 388, Binnala Village, Kanchili Mandal, Srikakulam District, Andhra Pradesh. The quarry lease area falls in the Survey of India topo sheet no. 74A/12 on Latitude 19° 1'35.55"N and Longitude 84°35'6.27"E with an elevation of 35m. The nearest village is Binnala at a distance of 0.5km from the QL area in SW direction. Nearest Railway station is Jhadupudi at a distance of 3.0km in NE direction. Nearest town is Palasa at a distance of 33km in SW direction. NH-5 Road Srikakulam to Bhubaneswar is passing at a distance of 2.9km from the QL area in SE direction. Arjunapuram- Yekkala village road is passing at a distance of 0.7km in West direction. The lease area can be accessible through a cart track. Bahuda River is flowing at a distance of 8.7km from the QL area in NE direction. Jalantrakota reserve forest is at a distance of 2.9km in SW direction. Shandhabhuja reserve forest is at a distance of 5.3km in NW direction. Andhra Pradesh and Orissa interstate boundary is at a distance of 0.3km in NE direction. There are no national parks, wildlife sanctuaries and critically polluted areas observed in 10km radius from the quarry lease area. Location map of the mine lease area is presented in figure 1. iii) Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. No alternative sites considered, the proposal is existing mining project and it is site specific. iv) Details of Reserves and Life of the mine The information obtained from the boulders and exploratory openings in the adjacent area, the ‘proved’ category reserves are estimated to a depth of 5m from the surface. The average length of the deposit is taken as 205m and the average width is taken as 75m depending on the granite exposed in the area. Further a 5m depth from the base of the proved one, is considered for the estimation of the reserves under the ‘probable’ category and 5m zone below the probable zone is considered for estimation of reserve under the ‘possible’ category. The reserves available in the lease are complied as stated below table. Total Geological Reserves Category Area in m2 Depth Volume Recovery Wastage@ in m in m3 @30% in m3 70% in m3 Proved 15375 5 76875 23062 53813

3 | P a g e Pre-Feasibility Report Excellent Granites

Probable 15375 5 76875 23062 53813 Possible 15375 5 76875 23062 53813 Total 230625 69187 161438 Mineable are calculated taking the proved reserves only into consideration which are 76875m3. The reserves blocked in the mine safety benches and buffer zone is deducted from the proved reserves. The mineable reserves thus arrived are presented below table. S. No. Description Quantity in m3 1 In situ reserves under proved category 76875 2 Reserves blocked in the 7.5m buffer zone 6000 3 Blocked in mine benches 7687 4 Total Blocked (6000+7687) 13687 5 Balance reserves (76875-13687) 63188 6 Recovery @30% 18956 Life of the mine: Mineable reserves/annual production =18956/1200 = 15.79 (Say 16 years) v) Size or magnitude of operation: During five years operations a total rock mass of 20000m3 will be excavated and 6000 m3 of granite blocks will be recoverable from this rock mass and remaining material of about 14000 m3 will go as waste mineral. Year wise Granite production and Waste Year Volume (A x H) Production m3 m3 Granite@30% Waste@70% 2011-12 4000 1200 2800 2012-13 4000 1200 2800 2013-14 4000 1200 2800 2014-15 4000 1200 2800 2015-16 4000 1200 2800 Total 20000 6000 14000 vi) Project description with process details (a schematic diagram/flow chart showing the project layout, components of the project etc. should be given) The mining operations are in the view of shallow nature of the deposit; open cast mining method shall be adopted in a semi mechanized manner by forming benches of 6m height. Hydraulic excavator, compressor jack hammers and wire saw cutting will be deployed for cutting rock. The separation of blocks from the mother rock will be carried out by drilling, wedge cutting, blasting, excavation will be done by the machinery. vii) Raw material required along with estimated quantity likely source, marketing area of final product/s, mode of transport of raw material and finished product No raw material is required, project is for mining granite. The extracted granite is mainly sold for export (contingent on the quality) and or in domestic market. 4 | P a g e Pre-Feasibility Report Excellent Granites

Figure 1. Quarry lease location map viii) Resource optimization/recycling and reuse envisaged in the project, if any, should be briefly outlined. During the plan period waste material will be dumped in the dump area in SW side of the quarry lease area. The waste generated will be used for backfilling in the worked out pits after completion of mine workings. The reclaimed land will be cover with top soil and green belt will be developed to get rehabilitation. Some of the material from the waste may be sorted out and used for making small blocks known as ‘Khandas’ to be used by the local unit for making tiles. The market for tiles is good at the moment and they will offer better substitute for marble in terms of price and quality. Some rejected and unsorted material may be used in the civil engineering projects in the vicinity of the area. The waste material can also be crushed into smaller sizes and can be used as road metal. ix) Availability of water its source, energy/power requirement and source should be given Water Requirement Water requirement is mainly for drinking purpose, domestic purpose, green belt maintaining and for sprinkling on Mine haulage roads the water shall be drawn from nearby village. The domestic wastewater shall be sent to septic tank followed by soak pit. Rainwater 5 | P a g e Pre-Feasibility Report Excellent Granites

Catch Pond of 20 KL capacity will be provided to collect the storm water for reuse. This will ensure that the rainwater is effectively used and minimizes the drawn of ground water resources. The required water shall be drawn from the local villages through tankers. Total Water requirement S. No. Water Usage Quantity KLD 1 Wet drilling operation (On production basis @ 100 Ltr/1 m3) 0.4 2 Water sprinkling on haul roads @ 1Ltr/Sq. Mt (150m2)+1/4th for waste dump 0.2 3 Domestic @ 45 Ltr/Head (50 No’s) 2.3 4 Green Belt @ 0.15KL for 0.0585 ha – 2 times a day 0.3 Total 3.2 Electricity: The operations in the mine lease need electricity for their operations and also used generators for operations. Public power facility is there in nearest village Binnala located at a distance of 1.0 km from the ML area. x) Quantity of wastes to be generated (liquid and solid) and scheme for their Management/disposal The quantity handled during the plan period will be 14000 m3 of waste. About 0.5 ha of area is selected for dump yard with an height of 30m in Northeast of the mine lease area. A Toe- wall will be constructed around the dump to preventing the slanting of boulders and also garland drainage will provide. 4. Site Analysis 4.1 Quarry Location M/s. Excellent Granites proposes to conduct semi mechanized open cast quarrying for colour granite average production of 1200 m3/Annum. The proposed Quarry lease area of 2.825ha in Survey No. 388, Binnala Village, Kanchili Mandal, Srikakulam District, Andhra Pradesh. The quarry lease area falls in the Survey of India topo sheet no. 74A/12 on Latitude 19° 1'35.55"N and Longitude 84°35'6.27"E with an elevation of 35m. The nearest village is Binnala at a distance of 0.5km from the QL area in SW direction. Nearest Railway station is Jhadupudi at a distance of 3.0km in NE direction. Nearest town is Palasa at a distance of 33km in SW direction. NH-5 Road Srikakulam to Bhubaneswar is passing at a distance of 2.9km from the QL area in SE direction. Arujunapuram- Yekkala village road is passing at a distance of 0.7km in West direction. The lease area can be accessible through a cart track. Bahuda River is flowing at a distance of 8.7km from the QL area in NE direction. Jalantrakota reserve forest is at a distance of 2.9km in SW direction. Shandhabhuja reserve forest is at a distance of 5.3km in NW direction. Andhra Pradesh and Orissa interstate 6 | P a g e Pre-Feasibility Report Excellent Granites boundary is at a distance of 0.3km in NE direction. There are no national parks, wildlife sanctuaries and critically polluted areas observed in 10km radius from the quarry lease area. 5. Planning Brief The project is envisaged to be put in production/mining by this year, and the production shall be initiated thereon. Geologists and Mining engineer are identified for preparing the detailed project report. 6. Proposed Infrastructure The nearest village is Binnala at a distance of 0.5km from the QL area in SW direction. Nearest Railway station is Jhadupudi at a distance of 3.0km in NE direction. Nearest town is Palasa at a distance of 33km in SW direction. The lease area can be accessible through a cart track. 6.1 Utilities List of Machinery Machinery Quantity Nature of work Excavator 1 no. The excavator to be employed for the removal of the over burden, Small boulders, cut boulders and waste rock Tipper 2 no. For transportation of the overburden and blocks Compressors 2 no. For drilling holes for splitting Jack hammers 6 no For drilling holes Crane 20 ton For loading the blocks in to the trucks Wire saw 1 For sawing Slotter 1 For drilling machine holes Generator 1 Jeep 1 6.2 Waste management Liquid Effluents There is no effluent generated from the mine operations. The effluent generated from the domestic is sent to septic tank followed by soak pit. The water draining the dump will be send through a single point to siltation tank. Silt carried from the quarry face will be deposited in the siltation tank and silt free water will be passed into the surrounding environment. Air Pollution The Colour granite mining does not involve dust formations. The dust anticipated at drilling place will be suppressed by putting cloth around the hole and the dust would be generated during blasting, drilling and mining and also during handling and transportation of the material. The suggested control measures are Dust suppression systems (water spraying) to 7 | P a g e Pre-Feasibility Report Excellent Granites be adopted at Faces/sites before and after blasting, Faces/sites while loading; and Use of sharp drill bits for drilling holes and drills with water flushing systems (wet drilling) to reduce dust generation. Regular water spraying on haulage roads during transportation of granite. Dusk masks will be provided to the workers in the dressing section and dust collector in the drilling section. Solid waste The quantity handled during the plan period will be 14000m3 of waste. About 0.5 ha of area is selected for dump yard with a height of 30m in SW of the mine lease area. A Toe-wall will be constructed around the dump to preventing the slanting of boulders and also garland drainage will provide. 7. Rehabilitation and Resettlement (R&R) Plan NA. 8. Project Schedule & Cost Estimates i) Likely date of start of construction and likely date of completion (Time schedule for the project to be given) Construction activity involves mine office cum rest shelter and toilets with temporary structures. The roof will be of asbestos sheets covered by hay to keep it cool in summer. A first aid certificate holder will be the in-charge of the first aid room. Protected drinking water will be provided and stored in earthen pots. It will start after obtaining all statutory clearances, estimated date of construction and completion by this year. ii) Estimated project cost along with analysis in terms of economic viability of the project The estimated cost of the project is approximately Rs. 13 Lakhs.

S. No. Purpose Cost Rs. in Lakhs 1 Civil and Infrastructure 1.0 2 Machinery 10 3 Occupational Health and Safety 0.5 4 Contingencies & pre-operative expenses 1.5 Total Project cost 13

8 | P a g e