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Pre Feasibility Report of Copper Mining Project of Ingaldal Copper Mines Ltd

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Pre Feasibility Report of Copper Mining Project of Ingaldal Copper Mines Ltd Pre Feasibility Report of Copper Mining project of Ingaldal Copper Mines Ltd. Pre Feasibility Report 1) Executive Summary Project Ingaldhal Copper Mine (North Block) Underground Mining Name of Company / Mine Owner M/s Hutti Gold Mines Ltd. Location Village Kunchiganahalu Taluk Chitradurga District Chitradurga State Karnataka 1 Mining Lease Area & Type of land Total ML area 157.83 Ha. Agricultural Land as per RTC’s : 59.960 Ha Private Land : 100.630 Ha (Agricultural land) HGML Land : 0.240 Ha The proposal is for production of Copper to a tune of 250 TPD. 2 Geographical co-ordinates Corner Latitude Longitude 1 140 12’ 20.78” 760 26’ 06.75” 2 140 11’ 57.14” 760 26’ 36.81” 3 140 11’ 12.06” 760 26’ 37.08” 4 140 11’ 10.69” 760 26’ 06.47” 3 Name of Rivers/ Nallahs/ Tanks/ Siddanahalli lake 7.0 km Spring/ Lakes etc Gonur lake 7.5 km Mallapur lake 7.5 km 4 Name of Reserve Forest(s), Wild life Jogimatti State Forest 6.0 km Sanctuary/ National parks etc. 5 Topography of ML area 750m AMSL 6 Project Proposal Copper Ore Mining 7 Name of Mineral mined Copper 8 Rate of Production (in TPD) 250 TPD 9 Mineral Reserve in Million Tons 10 Life of mine 100 Years (Based on proposed production and reserves available) 11 Drilling/ Blasting Jack hammers and air legs are used for drilling holes in shaft 12 Mining method Underground mining (shrinkage stoping method) 13 GWT intersection Yes. 14 Drainage pattern/ water courses There is no perennial surface water body within the mine lease area. 15 Break-up of Land Utilization Pattern Provided in pfr 16 Water requirement & Source Total water requirement is 378.5 m3/day. Water will be sourced from seepage water and bore wells 17 Solid waste/Tailings Solid waste generated will be used for stope filling Page 1 Pre Feasibility Report of Copper Mining project of Ingaldal Copper Mines Ltd. 18 IBM approval : Date The Mining plan including progressive mine closure plan is approved by IBM vide lr no KNT/CTD/MP/Cu-269-SZ/192 dated 24.02.2014 19 Public hearing : Date Completed in February 2017 20 Cost of project (Rs. Lakhs) Rs 4282 Lakhs 21 Any Other (specify) -- Name and address of the company Hutti Gold Mines Limited. Registered Office 3rd floor, KHB Shopping complex National games village, koramangala Banglore-560047 Ph: 080-25710501,25705724/25/26 Fax: 080-25705723, e-mail:[email protected] Mine office Post Box No.4, Chitradurga - 577 501; State – Karnataka Phone - 08194-246190, 246283 Fax - 08194 - 246470 Email [email protected] Prospecting Agency The Director Dept. of Mines and Geology, Geological Survey of India Type of Activity Underground Mining Utilities (Power, water Requirement) Power Requirement 400 KVA (Domestic purpose-25KVA, Mining & Milling-375KVA) Source: Karnataka Electricity Board 1 No DG Sets of 180 KVA for stand by purpose Water Requirement 50 m3 Source: Bore wells and underground seepage water Manpower Requirement Mining Engineer-1 Underground Manager-3 Labours- Skilled-6 Semi-skilled-9 Un-skilled-20 Page 2 Pre Feasibility Report of Copper Mining project of Ingaldal Copper Mines Ltd. 2) Introduction of the Project / Background Information (i) Identification of Project and Project Proponent. Name of the Project: Ingaldhal (Underground) Copper Mines Project (North Block) ML No 1125, village: Kunchiganahalu, Post Box No.4, Chitradurga-577501, State-Karnataka, of Hutti Gold Mines Ltd. Project Proponent M/s Hutti Gold Mines Limited, having its registered office at 3rd floor, KHB Shopping complex National games village, koramangala, Banglore-560047, & Mine office at Post Box No.4, Chitradurga-577501, State-Karnataka, is a Government of Karnataka Undertaking (Established in 1947 as Hyderabad Gold Mines), has the unique distinction of being the only producer of primary gold in the country. HGML has been active in the exploration, development and exploitation of gold deposits occurring in Karnataka. The Company's Corporate Office is situated in Bangalore and it operates two units- The Hutti Gold unit (HGU), in Raichur district and the Chitradurga Gold Unit (CGU) in Chitradurga district with an operating mine at Ajjanahalli (Tumkur District). HGU is a fully integrated unit with a capacity to produce 5, 50,000 tons per annum. The HGML currently processes ore from Hutti Gold Mine and two satellite mines at Uti (opencast) and Hira-Buddinni (Exploratory underground mine). Major expansion including the extended capacity of the metallurgical plan in phased manner is also under consideration. However, CGU's operations for gold mining and processing ore temporarily suspended and the company has diversified into wind form project and as established 9.3 MW in its leased premises. Ingaldhal Copper Mines (North Block) The North Block Mine (kunchiganahalu) is about 2.8 km north of the present Ingaldhal copper mine (Central Block). As a result of the drilling exploration carried out by the geological survey of India. A reserve of 2.5 lakhs tonnes of ore on an average grade of 1.46% Cu. Over a strike of 750 mts. Worked to a depth of 110 mts. has been indicated. Page 3 Pre Feasibility Report of Copper Mining project of Ingaldal Copper Mines Ltd. In view of the promising nature of this find and availability at comparatively shallow depth, the chitradurga copper company has taken up a mining lease during the year 1973 and has started developing the new block under the name North Block Project. The mine is not far away from the Central Block Mine. The development of this block can be carried out without any difficulty with the existing experienced staff, officers and additional machineries. The reserve of copper ore available in the north block will act as an additional reserve to the existing mine at Ingaldhal, in view of the short distance and help in stopping up production, the development of this property may establish a connection with northerly extension of copper bearing lodes exposed in the Ingaldhal mine working. Government of Karnataka sanctioned Mining Lease (No: 1125). Under the vide: Govt. of Karnataka notification No.CI.70:MM.2005, dt: 17-04-2007 subject to the condition that necessary clearance from the environment under the Environmental protection Act 1986 to be obtained. In pursuance of the above mentioned, now the proponent seeks Environmental Clearance for an area of 157.83 ha. (ii) Brief Description of Nature of the Project. Ingaldhal copper mine is situated near Bangalore-Bombay National Highway at about 6 Kms from Chitradurga town (Karnataka State). The Ingaldhal Mine is an underground mine which will be worked using the existing old openings. The copper bearing ore will be treated in a beneficiation plant with gravity separation, floatation and recovering copper. The plant is located near the mine site (Central Block) and is an integral part of the mines. The method of mining will be - overhand stoping by cut and fill method. Since back filling of the stopes will be continuously done, the location of the beneficiation plant is at Central Block. (iii) Need for the Project and its importance to the country. Hutti Gold Mines Ltd intends to mine 250 TPD of Copper. Hence, it is mandatory to obtain Environmental Clearance from MoEF, New Delhi. Currently the mine is not working. It is planned to carry out detailed exploration by exploratory mining. Page 4 Pre Feasibility Report of Copper Mining project of Ingaldal Copper Mines Ltd. (iv) Demand Supply Gap India's Copper demand will likely grow at least 8% to 10% as corporate build power units to meet their electricity demands. The slower growth rate is attributed to the sharp decline in the demand for jelly filled telecom cables, the largest user industry of copper in India. However, the demand from power cables, winding, industrial applications and construction industry has increased. Moreover, deficit in the other Asian countries helped the domestic producers to increase exports. The size of Indian Copper Industry is around 4 lakh tons, which as percentage of world copper market is 3 %. The major copper producing companies in India are as follows S.No. Name of the Company Cumulative Production 2007-08 2008-09 2009-10 2010-11 1. Hindustan Copper Ltd 44,734 30,036 17,516 2061 2. Hindalco Industries Ltd 3,23,900 2,97,800 3,33,300 45,725 3. Sterlite Industries 3,39,294 3,12,833 3,34,202 54,013 (India) Ltd 4. Jhagadia Copper Ltd 10,000 11,100 3,300 Nil Total 717928 651769 688318 101799 Unit: tons Demand Supply Analysis The future demand of copper is envisaged at 2.3 million tons in 2024-25. This is considered keeping in view the sectoral break up of future demand which is more realistic as compared to CAGR and projected GDP growth. To fulfill the demand the production of copper is also projected with due justification. The projected production of copper in 2024-25 comes to 2.8 million tons. This includes the production contributed by secondary source in addition to primary. The primary production will contribute 2.0 million tons whereas secondary production will be 0.85 million tons. This is justifiable production which will meet the future demand. (v) Imports vs. Indigenous Production. The domestic demand of copper and its alloys is met through domestic production as well as imports. Page 5 Pre Feasibility Report of Copper Mining project of Ingaldal Copper Mines Ltd. (vi) Export Possibility & Domestic Markets After Beneficiation, The final product will be sold in the local market and Hindustan copper limited (vii) Employment Generation (Direct and Indirect) Due to the Project. The List of manpower to be deployed at mines is as follows: Sl.
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