Jsw Steel Limited

Pre –Feasibility Report

PRE FEASIBILITY REPORT

RAMA IRON ORE MINE (ML-2621) 1.28 MTPA IRON ORE PRODUCTION MINING LEASE AREA: 33.80 Ha (FOREST LAND)

RAMGAD RESERVED FOREST, RAMGAD VILLAGE, SANDUR MANDAL, BALLARI DISTRICT, KARNATAKA STATE.

Of JSW STEEL LIMITED

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Table of Contents

1. Executive summary 2. Introduction of the project/ Background information 3 Project Description 4 Site Analysis 5. Planning Brief 6 Proposed Infrastructure 7. Rehabilitation and Resettlement (R & R) Plan 8. Project Schedule & Cost Estimates 9. Analysis of Proposal (Final Recommendations)

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CHAPTER – 1 EXECUTIVE SUMMARY

1. Executive Summary

JSW Steel Limited (JSW) proposes to produce 1.28 MTPA Iron Ore production from its new mine i.e., RAMA IRON ORE MINE ML No. 2621 spreading over an area of 33.80 Ha located at Ramgad Reserved Forest, Ramgad Village, Sandur Mandal, Ballari District, Karnataka State. Rama Iron Ore Mine; Mining Lease was granted to JSW through Letter of Intent by Govt. of Karnataka through e-auction process

The mine has about 25.60 Million Tonnes of mineable reserves (approx.) which will last for about 20 years with proposed production capacity of 1.28 Million Tonnes Per Annum (MTPA). About 29.82 Ha will be mined for production of Iron ore

The mine operation will be by Fully mechanized open cast method of mining by drilling and blasting and by deploying HEMM equipments like hydraulic drills and excavators, wheel loaders and dumpers.

The waste mainly consists of shale/Phylite. The waste generated will be dumped in the proposed temporary dump, located towards the north-western side of the lease as per R & R plan. The area demarcated for the temporary waste dump in this plan period is 3.7 Ha, which can hold 0.755 Million Cum. The quantity of generation of waste will be 4.06 MTPA during conceptual period.

Backfilling of the mined out area of 11.16 Ha will be carried out, to dispose the waste generated during the conceptual period. There is no mineral reject generation during plan period as all the +45% Fe material produced will be sent to JSW Steel plant.

Approximately 205 m3/day water is required for dust suppression, afforestation purpose, canteen and other general requirements for this mine. Water will be drawn from company bore wells dug in nearby mining areas.

Crushing & Screening process does not have any water requirement as C&S units will be fitted with dust suction system.

Mine working is expected to reach 875m above MSL, which is 315 m above water table at the end of the life of the mine.

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Daroji Bear Sanctuary is at 16.1 km from the ML area

JSW will employ102 manpower in the mine

All infrastructure facilities such as education, health facilities and other social facilities are adequate at nearest populated area.

The estimated project cost for the iron ore production will be approximately Rs. 37.89 crores

JSW will implement R & R Plan prepared by ICFRE which is duly concurred by Central Empowered Committee. The indicative cost estimate for the implementation of engineering and biological measures for reclamation and rehabilitation plan is 116.72 Lakh Rs. (Approx.).

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CHAPTER – 2

INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION

2.0 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.

Rama Iron Ore Mine, ML No. 2621, located in Ramgad village, Sandur Taluka, Ballari District, over an extent of 33.80 Ha area of Forest Land of Ramgad range is an iron ore mining lease area proposed to be granted to JSW Steel Limited as per the Letter of Intent of Govt. of Karnataka after e-auction (Annexure-I).

Pursuant to the Hon’ble Supreme Court(SC) order dated 29th July 2011 and 26th August 2011, the mining operations and transportation of the iron ore from mining leases in the districts of Ballari, Tumkur and Chitradurga had been suspended except, in the case of two mining leases M/s NMDC namely, ML no. 1111 and ML no. 2396. Central Empowered Committee (CEC) was constituted by SC, in order to unravel the violations carried out by mining companies in Karnataka. As per the CEC’s joint team survey, ML No. 2621, previously held by M/s Rama Rao Paol has a total encroachment area of 28.12 Ha (entirely under others category). Based on their findings, the lease has been categorized under “C” category.

Further, the Hon’ble Supreme Court by its orders dated 5th August 2011 and 26th August 2011 had directed the Government of Karnataka to submit the Reclamation and Rehabilitation Plan(s) for the districts of Ballari, Tumkur and Chitradurga within three months. Subsequently, the Government of Karnataka vide letter dated 29th September, 2011 has assigned the work of preparation of R & R Plan to the Indian Council for Forest Research and Education (ICFRE).

As per letter No.1-26/CEC/SC/2013-Pt XXXXXIV dated 24-10-2014; the CEC of the view that before finalizing the R & R plans of any of the Category ‘C’ mining leases, it may be appropriate that the details of mineral reserves to be available based on the exploration data undertaken by the State Govt. Accordingly the Govt. of Karnataka has provided the exploration work to M/s. Mineral Exploration Corporation Limited (MECL), a Government of India Enterprise, Nagpur, to assess the mineral reserves in all “C” category mines in Ballari, Chitradurga and Tumkur Districts of Karnataka State.

M/s. MECL has conducted Exploration in the Mining Lease area of Rama Iron Ore Mine, ML No. 2621, by Geological mapping, core drilling and RC drilling etc. The reserves have been estimated by MECL. Total mineable reserves of 25.67 Million tonnes have been estimated based on the exploration data.

Hon’ble Supreme Court had directed Government of Karnataka to commence the auction of and / or Pig Iron and/or Steel and/or Pellets will be eligible to take part in the auction. The end users will include Public Sector Undertakings. 5 | P a g e

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The Department of Mines & Geology, in its LOI dated 26.10.2016, had directed M/s JSW Steel Limited to obtain all consents, approvals, permits, no objections and the like as may be required under applicable law before signing the MDPA. The Hon’ble Supreme court vide its judgment dated 30.07.2015 ordered to transfer the existing statutory clearances of previous lessees in favor of new lessees, who have obtained the blocks in the auction. Accordingly, the Environmental clearance (Annexure II) of previous lessee (0.5 MTPA) has been transferred. The R & R Plan prepared by ICFRE and also duly concurred by Central Empowered Committee. Monitoring committee has also issued a letter vide letter No.MC/R&R/CCA/2017-18/103/376 (Annexure III) dated 18th April 2017, prescribing the annual production limit of 0.5 MT of iron ore, however, the mining plan is being prepared for 1.28 MTPA and would be seeking the fresh environment clearance in this behalf.

Project proponent

The JSW Group’s foray into steel manufacturing began in 1982, when it set up the Jindal Iron and Steel Company with its first steel plant at Vasind near Mumbai. The next two decades saw significant expansion and several acquisitions, following the merger of Jindal Iron and Steel Co (JISCO) and Jindal Vijayanagar Steel Ltd (JVSL) in 2005. Today JSW Steel has plants in six locations in India — Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra.

Our global operations include a plate and pipe mill in the US. In order to securitise resources, the company has acquired mining assets in Chile, USA and Mozambique. ii. Brief description of nature of the project

Rama Iron Ore Mine is spread over an extent of 33.80 Ha area of Forest Land of Ramgad range, in Ramgad village, Sandur Taluka, Ballari District. LOI was granted on 26/10/2016 and expiry is 50 years as per MMDR (Amendment) Act- 2015

It is proposed to produce 1.28 MTPA of iron ore from subject mine

Fully mechanized open cast method of mining by drilling and blasting and by deploying HEMM equipments like hydraulic drills and excavators, wheel loaders, dumpers, will be undertaken. To make optimum exploitation of the mineral deposit, the mine will be developed by making benches with a height of 8m and width of 15m will be maintained with keeping the necessary berm width. The bench slope angle will be maintained at 700-800 with an overall pit slope angle of 450. The working of benches will be commenced from top and extended to bottom benches while the direction of advancement will be towards western as well as eastern side of the proposed working area. The ROM excavated is proposed

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to be processed in the crushing and screening plants to obtain the lump and fine ore as product mix iii. Need for the project and its importance to the country and or region.

To ensure raw material self-sufficiency, JSW Steel Limited, having its integrated steel plant with an installed capacity of 18 Million Tons (i,e 12 Million Tons at Vijayanagar, Karnataka, 5 Million Tons at Dolvi, Maharashtra & 1 Million Ton at Salem, Tamilnadu), has participated in aforesaid auction. JSW Steel Limited had been awarded this mining block vide LOI no. DMG/MLS/CCA/12/2621/2016-17 (Annexure-I). So far JSW steel does not possess any mining lease or prospecting licenses neither in the state of Karnataka nor in the other part of the country.

Importance to the country

Steel is traditionally considered the backbone of national economic development. It is a major input into sectors which support economic growth such as infrastructure, machinery, power and railways, as well as being important for fast growing sectors, in particular automobiles and consumer durables.

India is the fourth (4th) largest steel producer in the world, presently producing about 90 Million Tonnes of saleable finished steel products in the ratio of about 40-60% in the category of Flat Products and Long Products.

Per capita consumption of steel in India is only about 60 Kg as compared to a world average of 217 Kg and China’s 510 Kg. Being a developing country, the consumption in the country shall increase every year creating a good demand over the coming years.

The country’s steel production and consumption is likely to remain higher in 2017-18 from 89.79 MT of crude steel during 2015-16 backed by an increase in infrastructure allocation in the budget.

In 2017-18, steel production is expected to remain higher. This will be backed by an expected revival in consumption. An increase in infrastructure allocation by the government in the Union Budget 2017-18 is expected to drive the pace of construction and infrastructure in the country.

Steel production in the world is dominated by China followed by Japan. During 2015-16, crude steel output of China stood at 789.04 MT and for Japan it stood at 104.23 MT. In 2016-17, production of these steel producing countries (excluding India) remained subdued even during April-December 2016 on a y-o-y basis. While crude steel output in China, Japan and Russia grew by mere 0.5-3%, output in US remained flat and that in South Korea declined by 1.3%.

In contrast, crude steel production in India rose by 8.8% to 72.35 MT during this period. This was on account of higher output by the major Indian steel

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companies. The imposition of Minimum Import Price (MIP) encouraged the producers to increase their output.

Post-demonetisation, steel consumption is expected to remain under pressure in the coming few months to a certain extent. This is because it is likely that the demand for steel from the user industries like construction, real estate will take some time to strengthen. However, government push towards infrastructure will compensate for this reduction in demand, it added. Source : Live Mint E paper

iv. Demand– supply Gap

The National Steel Policy 2017, released by the government, also aims to increase steel production. Thus, both production and consumption of steel is expected to remain buoyant in future. The country has gained the position of third largest crude steel producer in the world and is largely focusing on increasing production. However, focus at the same time should be on increasing consumption of steel and reducing the dependence on cheap imports.

v. Imports Vs Indigenous production.

Since this is a captive mine to JSW Steel Limited, entire production will be utilized for the JSW Steel Plant.

vi. Export possibility

At present, the material produced is proposed to be transported to M/s JSW Steel Plant for its own captive use. Hence no export possibility exists. vii. Domestic / export markets

The Iron Ore produced from the subject mine will be used for captive consumption in the steel plants of JSW. viii. Employment generation (direct and indirect) due to the project.

Vice president, Mines (JSW Steel Limited) heads the central mine organization followed by senior mining professionals (GM, DGM) and Mines Manager holding 1st class Certificate of competency. This mine will provide employment to 102 people and proposes to generate indirect employment to around 100 people. Most of the work force employed by the lessee are for mine supervision.

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CHAPTER – 3 PROJECT DESCRIPTION

3.0 Project Description i. Type of project including interlinked and interdependent projects, if any.

The mine is spread over 33.8 Ha of Forest Land of Ramgad range located in Ramgad village, Sandur Taluka, Ballari District, Karnataka State. Mineable iron ore reserves are about 25.60 Million Tonnes of mineable iron ore reserves. It is proposed to produce 1.28 MTPA of iron ore from subject mine located at Ramgad village, Sandur Taluka, Ballari District, Karnataka State

It is categorized as Category B Project. Since, the State Committee (SEAC & SEIAA) at Karnataka is being reconstituted, it has necessitated obtaining Environment Clearance from Ministry of Environment, Forest & Climate Change (MoEF&CC). ii. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates.

RAMA IRON ORE MINE is located in Ramgad village, Sandur Taluka, Ballari District, Karnataka. The Mining lease areaarea is a part of the Survey of India Toposheet No.57/A/8 The site falls A) 15° 7'3.11"N- 15° 7'37.12"N B) 76°27'55.94"E- 76°28'21.40"E with an average altitude of 962 m above MSL.

The location map of the Mining lease area is shown in Fig – 1.

Nearest railway line connecting Hospet – Swamihalli of South Western Railway line is at a distance of 1.8 km in WSW direction to the Mining lease area. Nearest railway line connecting Hospet – Ballari of South Western Railway line is at a distance of 11.7 km in Northern direction to the Mining lease area. Key map showing the location of various features around the Mining lease area is shown in Fig – 2.

The National Highway (NH- 13 Change NH-50) connecting Hospet – Kudligi is at a distance of 11.7 km in WSW direction to the Mining lease area.

The National Highway (NH- 63 Change NH-67) connecting Hospet – Ballari is at a distance of 12.1 km in N direction to the Mining lease area. The nearest railway station is Ramgad RS which is 2.0 km in Western direction. The nearest city from the Mining lease area is Bengaluru which is about 275.0 km in SSE direction.

Nearest Settlements from the Mining lease area  Ramgad – 0.3 km – W  , Bhavihalli – 2.3 km – E Nearest Forests from the Mining lease area  Sandur RF – 2.9 km – ENE  Bandri RF – 1.3 km – SE  Mine in Ramgad RF

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Salient features of Mining lease area are given in Table – 1 and Fig - 3 shows the study area of 10 km radius around the Mining lease area. iii. Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted.

No alternate sites were considered as the project is mineral specific. iv. Size or magnitude of operation.

Mine lease area is 33.80 Ha. The proposed rate of production of Iron ore is 1.28 MTPA.

v. Project description with process details (a schematic diagram/ flow chart showing the project layout, components of the project etc. should be given)

In order to achieve the targeted production, the different mining activities in this mine will be done in daylight hours.

The operation involves excavation of the ore and waste by drilling and blasting. Ore excavated from the mine will be taken to the crushing and screening plant in the ML area for screening and sizing. Further ancillary machinery like Water sprinklers, Road Graders, Dozers, weighing machines etc., will also be deployed.The finished products, i.e. lump ore (10-40 mm) and fine ore (0-10 mm) will be loaded in to dumpers and will be stocked at the stockyard. As this mine will be used for captive purpose only, entire quantity of finished product from stockyards will be dispatched to JSW Steel Plant by rail and/or road. In future pipe conveyor may also be used after carrying out necessary feasibility studies. The total Mining lease area will be covered by single major pit having the dimension given below:

Pit Dimension Top RL Bottom RL No. of benches Number LXWX D 1 840 X 180 X 47 995 956 4

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Manufacturing process Flowchart

Excavation & Blasting to Drilling loading to loosen the soil Tippers

Tippers carry the Overburden dumped Overburden to the as waste dump waste dump within the mine lease

Tippers carry the ROM to the Crushing & screening plant

ROM is crushed and separated into stacks of different sizes (0-10),(10-40) & (40-100)

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TABLE – 1.1 SALIENT FEATURES OF THE MINE SITE Feature Details Altitude 962 m above msl Longitude & A) 15° 7'3.11"N- 15° 7'37.12"N Latitude B) 76°27'55.94"E- 76°28'21.40"E Village, Tehsil, Ramgad village, Sandur Taluka, Ballari District, Karnataka. District, State District head Ballari - 48.0 km – E quarters IMD STATION Bengaluru - 275.0 km – SSE Max. Temp. 0C 38.3 Min. Temp. 0C 9.2 Relative Humidity % 29 – 87 Annual rainfall 868.0 mm Topography Plain

Nearest Water Dhanayakana Kere – 8.0 km – WSW Bodies Nari Halla – 8.9 km – SE Tungabhadra Reservoir – 11.5 km - NW Nearest Highway National Highway (NH- 13 Change NH-50) - f 11.7 km -WSW National Highway (NH- 63 Change NH-67) - 12.1 km - N Nearest City Ballary - 48.0 km – E Nearest Railway Ramgad RS – 2.0 km - W station Nearest Industries Other WORKING mines in the vicinity are A ZTC (ML -2239,ML-2488,ML- 2309) B VESCO (ML -2160,ML-2296) C SRI VNK MENON( ML -2543) Inter State Karnataka – Andhra Pradesh – 32.0 km - ESE Boundary Nearest National Daroji Sloth Bear Sanctuary – 16.1 km - NE Park Nearest Villages Ramgad – 0.3 km – W Bhavihalli – 2.3 km – E Nearest Air port Bengaluru International Airport – 250 km - NNW Koppal Airport – 37.0 km – NW Jindal Vidyanagar Airport – 18.5 km - ENE Nearest Forest Sandur RF – 2.9 km – ENE Bandri RF – 1.3 km – SE Hospet RF – 9.2 km – NNE Mine in Ramgad RF Historical places None within 10km Radius

*All distances mentioned in the above table are aerial distances

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a) 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.

b) Resource optimization / recycling and reuse envisaged in the Project, if any, should be briefly outlined.

c) Availability of water its source, energy /power requirement

The requirement of water supply, both for drinking and mine will be drawn from the company bore wells dug in the vicinity of the mining area. There are 6 nalas existing in and around the ML area. Out of which, one is from western side and emptying into a tank near Byalakundi and another one originates from northern side is flowing towards NW direction and emptying into Raya Channel. The remaining 4 nalals are originating from eastern side of ML area and flowing towards eastern direction and emptying into Narihalla Reservoir.

Total water requirement is 205 KLD. This includes domestic requirement of 5 KLD, 150 KLD towards dust suppression and 50 KLD towards Plantations and green belt development.

The power required for illumination & crusher will be taken from grid.

vi. Quantity of wastes to be generated (liquid and solid) and scheme for their management / disposal.

Backfilling of the mined out area of 11.16 Ha will be carried out, to dispose the waste generated during the conceptual period.

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vii. Schematic representations of the feasibility drawing which give information of EIA purpose.

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CHAPTER – 4 SITE ANALYSIS 4.0 Site Analysis

i. Connectivity.

Ballari is major city town at a distance of 48 km

The National Highway (NH-7 name change) NH-44 connecting Hyderabad – Armoor at a distance of about 10.1 km in NE direction, The nearest railway station is Kamareddy at 13.8 km in Eastern direction. National Highway (NH- 13 Changed to NH-50) is at 11.7 km and National Highway (NH- 63 Changed to NH-67) is at 12.1 km

The nearest airports are Bengaluru International Airport at 250 km, Koppal Airport at 37.0 km and Jindal Vidyanagar Airport at 18.5 km.

ii. Land form, land use and land ownership.

Land use:

The total Mining lease area is 33.8 Ha is a Forest Land Falling in Ramgad Reserved Forest range.

Topography (along with map)

The lease area of Rama Iron Ore Mine, ML No. 2621 is covered in Survey of India Topo-sheet No. 57 A/8 and bound by Longitudes 76º27’56” to 76º28’21” and Latitudes 15º07’03” to 15º07’41.2”.

Buffer zone- the buffer zone area characteristically comprises of valleys and altitude varying between 600 to 1023 m above MSL, surrounded by rugged hills, marked by discrete, NW-SE trending ridges, separated by flat or gently sloping land. The area has got sub-dendritic pattern of drainage. The terrain is hilly with alternate valleys. The hill contain erosion resistant rocks like banded hematite quartzite (BHQ), banded hematite jasper (BHJ), granite, argillites etc. some steep escarpments are encountered in these hill ranges.

Core zone- the mining lease area forms part of fairly high range of hill trending NNW to SSE, occurs between village Deogiri and Hospet town. The lease area occupies the crest and slopes of this range for about 1170m. the crest of lease hold comprises a narrow plateau of about 40 to 60 m. wide, with steep slopes

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towards East. The slopes are traversed by a few seasonal nallahs draining into the valley. These nallahs are small and narrow and act only as flood channels during rainy season and none of them are perennial. The lease area termed as core zone, is steeply sloping revenue land having thick iron ore float and iron ore reef. The maximum and minimum elevation is 988 m. & 956m above MSL respectively

Fig - 4 shows the surface plan of mining lease area. iii. Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ), shortest distances from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river), CRZ, in case of notified industrial area, a copy of the Gazette notification should be given.

Rama Iron Ore Mine of 33.80 Ha area is Forest Land falling in Ramgad range, Ramgad village, Sandur Taluka, Ballari District, Karnataka State

Existing land use pattern Land use pattern at Sl. Particulars the beginning of Plan No. Period (Area in Ha) 1. Area for mining 10.85 2. Area for waste dump 3. Roads 1.32 Green Belt/ 7.5m safety 4. 2.20 zone 5. ROM Stock 0.95 6. Virgin/ Unbroken area 18.48 Total 33.80

There are no rivers or perennial water courses in the mine lease area. However, the area is traversed by numerous seasonal water courses which are usually active during monsoon season and draining into the nearby water bodies (Narihalla Reservoir). Normally, no rain water accumulates in the lease area. The rain water flows from hill slopes and it does not accumulate till it reaches the lower valleys. Hence, the drainage pattern is sub-dendritic in nature and is typical of the hilly area.

There are 6 nalas existing in and around the ML area. Out of which, one is from western side and emptying into a tank near Byalakundi and another one originates from northern side is flowing towards NW direction and emptying into Raya Channel. The remaining 4 nalals are originating from eastern side of ML area and flowing towards eastern direction and emptying into Narihalla Reservoir.

There are no wild life sanctuaries, national parks, elephant/tiger reserves within 10km radius of the study area..

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Nearest Settlements from the Mining Lease Area

 Ramgad – 0.3 km – W  Bhavihalli – 2.3 km – E

Nearest Reserved Forests from the Mining Lease Area

o Sandur RF – 2.9 km – ENE o Bandri RF – 1.3 km – SE o Mine in Ramgad RF

iv. Existing infrastructure

None within the mining lease.

v. Soil classification

Since the mine has been in operation for several decades before falling into ‘C’ category, area is already considered as broken up. There is no likelihood of generation of topsoil. However, if, some quantity is generated during the mining operations from lease area, at the same time it will be used for afforestation purpose.

vi. Climatic data from secondary sources

The Sandur Schist Belt area of Ballari district experience dry semi-arid climate with mean annual rainfall varying from 40cm to 80cm. The monsoon begins in June first week and continues up to September and winter from the month of October to January. Summer continues from the month of February to May is extreme.

The annual rainfall in Sandur varies from 40cm to 80cm. The rainfall is mostly (60.22%) confined to the period from June to September. During south west monsoon (October to November) 22.21% of the annual rainfall is received, and another 17.57% of rainfall occurs as sporadic in other months of the year. vii. Social infrastructure available

Sandur is one of the important taluks in the district where industrialization is taking place rapidly. This is because of the establishment of Jindal Steel Factory at Toranagallu. In this taluk there are 857 industrial units with an investment of Rs. 851.83 lakh. These units provide employment to 3084 persons. Sandur taluk is well developed with education and medical facilities available.

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Fig - 4 surface plan of mining lease area.

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CHAPTER – 5 PLANINIG BRIEF 5.0 Planning Brief

i. Planning concept (type of industries, facilities, transportation etc.) Town and country planning / development authority classification

The Iron Ore mine is spread over 33.80 Ha with 25.60 Million Tonne of Mineable Iron Ore Reserves. It is proposed to produce 1.28 MTPA of Iron Ore from subject mine.

Presently the plan proposed for the transportation of ore from the Rama Iron Ore Mines (ML No. 2621) to JSW Steel Plant is completely by road. This transportation will involve use of trucks/dumpers. The roadways connecting the mines and JSW Steel Ltd., is divided into 3 stretches.

1. Stretch R-1: From Mine head to Mine Stock Yard Length Length- 1.12 km Width – 10.00 m This is Two lane, mud road with low curvature. The terrain is hilly. The road is exclusively used by this mining lease. Condition of road is good.

2. Stretch R-2: Mine Gate to Tri-junction Point Length - 2.5 km Width - 8.50 m It is a wo lane, mud road with low curvature. The terrain is hilly and condition is good. This is common road with VESCO ML No 2296 and ZTC ML No 2547

3. Stretch R-3: Tri-junction Point to Sandur, SH-40 Length 7.00 Km, Width 9.0 m. Metalled/Cement Road with low curvature in Plain Terrain Common road (Shared by ZTC-2547,2309, 2239 & 2488)

At later stages, JSW Steel Ltd. intends to transport the iron ore/ ROM using the pipe conveyor.

ii. Population projection

Total employment potential in the mine is 102 covering the Mining Engineer, Geologist, Skilled, semiskilled and unskilled etc.

iii. Land use planning (breakup along with greenbelt etc.,)

Post Mining Land use pattern:

The post mining land use pattern is furnished in the following table based on the anticipated excavation of total mineable reserves.

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Land use pattern Land use plan at the Sl. conceptual period No. Particulars (Area in Ha)

1. Area for mining 18.66 2. Area for waste dump - 3. Roads 1.32 4. Green Belt/ 7.5m 2.20 safety 5. Infrastructure 0.10 6. Backfilled area 11.16 7. ROM Stock - 8. Virgin/ Unbroken 0.36 area Total 33.80

Mining will be carried out in 29.82 Ha. Greenbelt will be developed in an area of 2.2 Ha and on the backfilled area of 11.16 Ha.

iv. Assessment of infrastructure demand (physical & social)

Infrastructure- Infrastructures like machinery, man power, and statutory buildings will be provided as mentioned in the plan, to meet the production requirements. The mine is well connected to main road.

The mine will give employment to about 102 people in addition there will be indirect employment to many more people, in the form of contractual jobs, business opportunities, service facilities etc. This will enhance the economic status.

Apart from the jobs, the company will provide medical and educational facilities to the employees which can also be availed by the people around the plant. Adequate recreational facilities for the staff of the company will be provided.

v. Amenities / Facilities.

Infrastructural facilities like Telephone and Occupational Health Centre etc. will be provided at mine site. The mine office with first aid room, rest shelters, toilets, tool/store room etc., will be provided at site.

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CHAPTER – 6 PROPOSED INFRASTRUCTURE

6.0 Proposed infrastructure

i. Industrial area (processing area)

In order to achieve the targeted production, the different mining activities in this mine will be done in daylight hours

Extent of Mechanization

As proposed above, fully mechanized method of working will be adopted for this mine. For the plan period, production of Iron ore of 1.28 MTPA has been planned. This envisages handling of 0.21 million tonnes (maximum during the plan period) of waste per year.

In order to achieve the targeted production, the different mining activities will be planned during the daylight hours (from 6 AM to 6 PM). The effective working hours will be nine and that is used to calculate the fleet of mining machineries. The recovery of ore involves removal of over–burden/side burden removal and processing of ROM. By adopting, a combination of Drilling, Excavation, Hauling, Crushing & Screening, Loading and Transporting machinery will be used. Further ancillary machinery like water sprinklers, road graders, dozers, weighing machine etc., will also be deployed.

R&R Measures for Area proposed

(1) Measures for the management of OB dumps (Dump Management Plan)

In order to stabilize waste dumps, toe wall at its toe and catch water drains (garland drains) and silt arresting structures should be constructed as per design. The height of the dumps and their terraces would be strictly maintained as per the design permitted for the purpose in the statutory clearances such as E.C., Mining Plan, Scheme of Mining, etc. Fresh dumping of waste would be carried out by 24 | P a g e

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adopting retreating method starting from bottom and reaching up to the top by creating terraces at every 10 m height with a top width of 6-8 m. Berms would be provided at the toe of each terrace to avoid water flow over the dump slopes. Wherever necessary, garland drains should be provided and connected to the vertical drains and finally to the check dams followed by Silt Settling Tanks (SSTs) to control run-off from the slopes. Haul road and mine approach road would also be provided with stone pitched drains. Inactive dumps would be vegetated with suitable plantation immediately after the terraces are made. All the plantation activities would preferably be taken up during monsoon seasons to enjoy the benefit of rainwater for the same. Geo-textile/coir mat may be opted for the dumps which are having adverse conditions like steep slopes, poor soil fertility and instability and lack of moisture content. This will also enable to achieve good growth of vegetation cover over the dump slopes. Enriched plantation may also be adopted on top flat area and sloping area depending upon the condition.

i) Existing Waste/ Over Burden Dumps

There are three OB dumps i.e. ROM-1, ROM-2 and inactive dump (ID) mixed with waste OB material ROM boulders, located within the ML area. ROM-1 is on eastern side and ROM-2 is on western side of the ML area. The dump height varies from 5 to 10 m and slope angle is 45 to 50 degrees. The dumps are partially covered with natural vegetation of Chromolaena odorata, Lantana camara, Tecoma stans, Calotropis gigantea and other herbs. ID is a very small dump lying within the pit and need to be re-handled during mining operation. The waste dumps should be rehabilitated by adopting suitable measures. However, a toe wall and garland for ROM-1 has been proposed to protect its further erosion to outside the lease area.

ii) Engineering measures for waste dumps (as per R&R plan prepared by ICFRE)

Engineering measures for waste dump management for existing as well as proposed temporary dump are listed in Table - 2.

(2) Surface Water Management Plan

Naturally, no rain water accumulates in the lease area. The rain water flows from hill slopes usually does not accumulate till it reaches the lower valleys. Hence, the drainage pattern is sub- dendritic in nature and is typical of the hilly areas of this region.

There are 6 nalas exists in and around the ML area. Out of which, one is from western side and emptying into a tank near Byalakundi and another one originates from northern side is flowing towards NW direction and emptying into Raya Channel. The remaining 4 nalals are originating from eastern side of ML area and flowing towards eastern direction and emptying into Narihalla Reservoir.

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The proposed engineering measures for the surface water management of the ML area are given in Table – 3. Check Dams: i.) Loose Boulder Check Dam (LBCD): The LBCDs are Random Rubble Dry Stone. Masonry in nature and are usually proposed for gullies having a width of about 5-10 m and bed slope of less than 10%. A total number of 12 LBCDs are proposed for the nalas. ii.) Gabion (Wire crate) Check Dam (GCD): This structure is usually proposed for gullies having a bed slope of more than 10% and a high discharge rate. Gabion check dams are very useful in the areas where sediment load is very high and are very cost effective for the reclamation of mine areas and waste lands. Altogether, 7 GCDs are proposed for the nalas in the ML area. Table 2 Proposed engineering measures for management of waste dumps (ML No. 2621) Location Items Particulars of No Dimension in m works Length Width Height Qty. Unit Top Bottom Temporary TW-1: Toe Foundation in 2.00 Dump TD- wall at the hard soil mixed 1.0 438.00 0.60 525.60 cum 1 toe of waste with boulders dump including hard rock

Plain cement 1.70 concrete (1:4:8) 1.0 438.00 0.15 111.69 cum in foundation

RR Stone 1.0 438.00 1.00 3.00 2.00 1752.00 cum masonry Dry

GD-1 Garland drain 1.0 447.00 2.00 1.00 1.00 670.50 cum below the toe wall

ROM TW-2: Toe Foundation in 2.00 Stock-1 wall at the hard soil mixed 1.0 100.00 0.60 120.00 cum toe of waste with boulders dump including hard rock Plain cement 1.70 concrete (1:4:8) 1.0 100.00 0.15 25.50 cum in foundation RR Stone 1.0 100.00 1.00 3.00 2.00 400.00 cum masonry Dry GD-2 Garland drain 1.0 110.00 2.00 1.00 1.00 165.00 cum below the toe wall Garland Drain along approach GD-3 Drain along 1.0 870.00 1.50 1.00 1.00 1087.50 cum approach road

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Table 3: Proposed bio-engineering measures for surface water management (ML No. 2621) Location Items No Dimension in m Length Width Height Qty Units Top Bottom N-1 LBCD-1 1.0 5.00 1.00 2.00 1.00 7.50 Cum LBCD-2 1.0 8.00 1.00 2.00 1.50 18.00 Cum GCD-1 1.0 12.00 1.00 2.00 2.00 36.00 Cum RWHP-1 1.0 10.00 10.00 5*5 3.00 1.00 No. SMCD-1 1.0 20.00 1.00 2.00 3.00 20.00 m N-2 LBCD-3 1.0 8.00 1.00 2.00 1.00 12.00 Cum LBCD-4 1.0 10.00 1.00 2.00 1.50 22.50 Cum GCD-2 1.0 12.00 1.00 2.00 2.00 36.00 Cum GCD-3 1.0 15.00 1.00 3.00 3.00 90.00 Cum RWHP-2 1.0 10.00 10.00 5*5 3.00 1.00 No. SMCD-2 1.0 30.00 1.00 2.00 3.00 30.00 m N-3 LBCD-5 1.0 8.00 1.00 2.00 1.50 18.00 Cum LBCD-6 1.0 10.00 1.00 2.00 1.50 22.50 Cum GCD-4 1.0 15.00 1.00 3.00 3.00 90.00 Cum RWHP-3 1.0 10.00 10.00 5*5 3.00 1.00 No. SMCD-3 1.0 20.00 1.00 2.00 3.00 20.00 m N-4 LBCD-7 1.0 10.00 1.00 2.00 1.50 22.50 Cum LBCD-8 1.0 12.00 1.00 2.00 1.50 27.00 Cum GCD-5 1.0 15.00 1.00 3.00 3.00 90.00 Cum RWHP-4 1.0 10.00 10.00 5*5 3.00 1.00 No. SMCD-4 1.0 30.00 1.00 2.00 3.00 30.00 m N-5 LBCD-9 1.0 8.00 1.00 2.00 1.50 18.00 Cum LBCD-10 1.0 10.00 1.00 2.00 1.00 15.00 Cum GCD-6 1.0 15.00 1.00 3.00 3.00 90.00 Cum RWHP-5 1.0 10.00 10.00 5*5 3.00 1.00 No. SMCD-5 1.0 30.00 1.00 2.00 3.00 30.00 m N-6 LBCD-11 1.0 6.00 1.00 2.00 1.00 9.00 Cum LBCD-12 1.0 8.00 1.00 2.00 1.50 18.00 Cum GCD-7 1.0 10.00 1.00 2.00 3.00 45.00 Cum RWHP-6 1.0 10.00 10.00 5*5 3.00 1.00 No. SMCD-6 1.0 13.00 1.00 2.00 2.00 13.00 m TD-1 SST-1 1.0 20.00 10.00 - 3.00 1.00 No. For BWCD 50.0 2.00 - 1.50 1.00 100.00 m Proposed BWCD 30.0 3.00 - 1.50 1.00 90.00 m BWCD 20.0 4.00 - 1.50 1.00 80.00 m BWCD 10.0 5.00 - 1.50 1.00 50.00 m Temporary LWCD 60.0 4.00 - 2.00 1.00 240.00 m Dump LWCD 40.0 5.00 - 2.00 1.00 200.00 m LWCD 30.0 6.00 - 2.00 1.00 180.00 m LWCD 20.0 7.00 - 2.00 1.00 140.00 m LBCD 30.0 4.00 1.00 2.00 1.50 270.00 cum LBCD 20.0 5.00 1.00 2.00 1.50 225.00 cum LBCD 10.0 6.00 1.00 3.00 1.50 180.00 cum LBCD 10.0 8.00 1.00 3.00 2.00 320.00 cum

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iii.) Stone Masonry Check Dam (SMCD) - cement sand mortar (1:6): This is usually considered as a key structure constructed at the end of all the gully control structures like LBCD, GCD, etc. A total number of 6 SMCDs are proposed for the nalas in the lease area.

iv.) Brush Wood Check Dam (BWCD): A total number of 110 BWCDs are proposed. These structures are to be implemented at the conceptual stage in the ML area

v.) Log Wood Check Dam (LWCD): A total number of 150 LWCDs are proposed. These structures are to be implemented at the conceptual stage in the ML area.

Water harvesting structures:

i) Rain Water Harvesting Pit (RWHP): The function of the RWHP is to recharge ground water by harvesting runoff along the nalas. A total number of 6 RWHPs are proposed for the nalas in the lease area. ii) Silt Settling Tank (SST): The function of SST is to protect the runoff of the mine from carrying silted water outside the ML area as it enables settling of silt in the runoff water. One SST is proposed in the nala to which connect the runoff from the proposed temporary dump (TD-1) at the plan period.

AFFORESTATION

After excluding the area finally classified under green belt (2.20 ha), the area to be afforested in ML-2621 at the conceptual stage of the mine has been worked out to be 31.60 ha (i.e., 33.80– 2.20). The afforestation covering 1000 trees and 2500 shrubs per ha, inclusive of maintenance for five years has been worked out as per the norms of State Forest Department, Karnataka.

Work of afforestation will be carried out in close coordination with the State Forest Department, Karnataka, utilizing local people and the periodical monitoring will also be carried out, in co-ordination with state agencies.

Afforestation shall be made through:

 Propagules (seeds, tubers, corms, bulbs, rhizomes and roots) stored in the topsoil; and sowing seed;  Planting nursery-raised seedlings  By seed dibbling  Silt accumulated in silt settling tanks/check dams etc. can be removed and could be used after mixing with FYM and sand in the ratio 2:1:1. This mixture could be used for plantation.

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ii. Residential area (non-processing area)

No residential area is proposed at mine. iii. Greenbelt.

7.5 m of mine periphery will be developed under plantation under plantation in an area of 2.2 ha.

Conceptually, 31.60 Ha will be brought under afforestation iv. Social infrastructure

Since the mine working area spread is more, makeshift office in portable cabins have been proposed with necessary amenities.

A dispensary/ cum-clinic is maintained at Toranagallu Office, where from all basic medical needs of workers and staff can be fully met. The company has undertaken various health camps and also strengthened the existing primary health centers located in the surrounding villages. And first aid room/stations will be provided with prescribed appliances.

A small canteen has been proposed near the mine office to cater the needs of persons employed in mine and ancillary activities.

The mining activity will have a positive socio-economic impact upon the nearby human settlement as indirect employment potential is created due to mining and allied activities in the area. Apart from these, the company promotes health and education awareness in the area time to time by organizing health and education camps.

In addition various social welfare programmes in the surrounding villages will be taken up by JSW. The focus areas include:

 Economic development ( Training )  Drinking Water  Sanitation  Health & Hygiene  Relief & Rehabilitation  Temples & Religion Related Assistance  Education

v. Connectivity (traffic and transportation road/ rail/ metro/ water ways etc.,)

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The nearest airports are Bengaluru International Airport at 250 km, Koppal Airport at 37.0 km and Jindal Vidyanagar Airport at 18.5 km.

vi. Drinking water management (source & supply of water)

The requirement of water supply, both for drinking and mine which is about 205 m3/day will be drawn from the company bore wells dug in nearby mining area.

vii. Sewerage system

Domestic waste water from mines office will be treated in septic tank followed by soak pit. viii. Industrial waste management

No industrial waste is produced.

ix. Solid waste management.

x. Power requirement & supply / source.

Electric power will be tapped from the HT line passing near to the lease area by means of a suitable transformer. Till the time power is made available, DG set will be used. HEMM will be fueled by HSD. Most of the HEMM, C&S plants will be operated by HSD till power supply is provided.

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CHAPTER – 7 REHABILITATION AND RESETTLEMENT (R & R) PLAN

7.0 Rehabilitation and resettlement (R & R) Plan

i. Policy to be adopted (central / state) in respect of the project affected persons including home oustees, land oustees and landless labourers (a brief out line to be given).

The mine area does not cover any habitation. Hence the mining activities do not involve any displacement of human settlement. No public buildings, places, monuments etc., exist within the lease area or in the vicinity. The mining operations will not disturb / relocate any village.

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CHAPTER – 8 PROJECT SCHEDULE & COST ESTIMATES

8.0 Project schedule & Cost Estimates i. Likely date of start of construction and likely date of completion (time schedule for the project to be given).

Mine will be started after getting EC, CTE, CTO and all other regulatory clearances. The mine has mineable reserves of about 25.60 Million Tonnes of mineable reserves (approx.) which will last for about 20 years with proposed production capacity of 1.28 Million Tonnes Per Annum (MTPA). ii. Estimated project cost along with analysis in terms of economic viability of the project.

Estimated cost of production, working capital & Marketing Analysis is discussed below:

i) Details of plant and machinery cost:

Rs. Lakhs Description As at the Addition Sold or Depreciatio Net Closing Estimated beginning s during discarded n during balance market of the Year the year during the the year Coll. (2+3) value (Rs. 17-18 17-18 year 17-18 17-18 lacs) 1 2 3 4 5 6 7 1. Land 0 0 0 0 0 0 2. Industrial 0 155 0 3.68 151.32 151.32 Building Residential 0 0 0 0 0 0

3. Plant and Machinery including 0 1595 0 144.35 1450.65 1450.65 Transport Equipment 4 Other Infrastructure Facilities (Road, water supply, bore well, computers, printers, 0 2039.00 0 96.85 1942.15 1942.15 networking, furniture & vehicles)

TOTAL 0 3789 0 244.88 3544.12 3544.12

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ii) Details of capital cost and working capital details are given below

Amount (Rs. in Particulars lakhs) Current Assets Closing Stock 159.12 Stores 40.00 Sundry Debtors and other Debits 0.00 Deposits 0.00 Cash and Bank balance 0.50 Total 199.62 Current Liabilities Sundry Creditors and other 45.00 payable Total 45.00 Working Capital 154.62

iii) Detailed Break-up of operating cost/tones

Sl. No. Particulars Rs./T I. Direct tax Cost - a. Exploration/Overburden Removal 14.41 b. Mining, Drilling, Blasting, Screening, Crushing 105.19

c. Beneficiation II. Overhead cost/ transport to export. 29.11 Stockyard III. Royalty 180.00 NMET (2% of Royalty) 3.6

IV. Taxes FDF (12% of Mineral sale 144 price)DMF (10% of Royalty) 18

V. Surface Rent 0.0

VI. Other (Monthly Payment to State Govt.) 1089.84 Total-operating cost/tones 1584.15

Total cost for 1.28MTPA (Rs. Lakhs) 14891.01

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iv Economic Viability:

Amount Particulars Tones (in lakhs) Rs. (in lakhs) Cash inflow

Lumps@15% 1.92 7192.32 3746 Fines@85% 10.88 40756.48

Total 12.8 47948.8 Cash Outflow

Operating Cost 12.8

Lumps 1.92 286.08 Fines 10.88 149 1621.12 Payment to State Govt. 12.8 1,090 13952 Payment of Royalty & Taxes 12.8 346 4429 Transport- Mines to Plant 12.8 450 5760 TOTAL OUTFLOW 12.8 26048.2 Net Cash outflow 21900.8

Total quantity of iron ore 1.28 MTPA Cost of production Rs./T+ Transportation Cost 2,034.15 Market price (Rs./T) 2,257.50 Profit/(Loss)/tones 223.35

Based upon the net present value and internal rate of return cash flow, this mining project is economically viable.

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CHAPTER – 9 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

9.0 Analysis of proposal (Final Recommendations) i. Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area.

Economic development of the region depends largely upon the nature of activities undertaken in the surrounding region. Corporate development invariably contributes towards acceleration of the process of socio-economic upliftment of the rural society by means of employment, health & study programme, medical camps etc.,

Employment: Preference will be given for locals for employment based on qualifications & requirement.

Medical facilities: Medical facilities will be provided for employees as well as people of nearby villages.

Educational facilities: Basic educational and vocational facilities will be provided for the children of employees as well as nearby villages.

Infrastructure facilities: Approach roads will be developed at par with mine roads.

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