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Feasibility Study on Komorrah Limestone Mine District: East Khasi Hills, Meghalaya

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Feasibility Study on Komorrah Limestone Mine District: East Khasi Hills, Meghalaya FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE DISTRICT: EAST KHASI HILLS, MEGHALAYA (Category: ‘A’ Mine, Area 240.55 Ha) KOMORRAH LIMESTONE MINING COMPANY LIMITED 207, Upper Lachumiere, Shillong 793001 Meghalaya, India PREPARED BY Indian Mine Planners & Consultants Kolkata November, 2015(Revised) FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE CHAPTER-1 EXECUTIVE SUMMARY SI. No Particulars Unit Title/Volume 1 Name of project - Komorrah Limestone Mine 2 Location - East Khasi Hills dist, Meghalaya 3 Name of Company - Komorrah Limestone Mining Co.Ltd (KLMC) 4 Address - 207, Upper Lachumiere, Shillong-793001 5 Promoter of Company Joint sector between Govt.of Meghalaya and Development Consultant Pvt Ltd, Kolkata 50% each. 6 (a) Nearest Railway Station & KM Gauhati-200 Distance Gauhati-225 Cherrapunji-45 Shillong-100 (b) Airport KM Umrao Airport-140 7 Area of Minning Lease Ha 240.55 Ha 8 Non Forest Area/Forest Area - Non Forest/Hilly terrain 9 Average rain fall mm 2349 10 Drainage of the area - Maytri Nalla in the south of lease area 11 HFL m 65 12 Strike & dip of deposit East-West - 450 south Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 1 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE 13 (a) Extent along strike m 925 (b) Extent along dip m 220 14 Name of Mineral and its Specific - Limestone, 2.5 Gravity 15 Reserve of Limestone (Band I only) Mt 11.28 16 Quality of Limestone - Chemical grade 17 Type of Mine - Open cost, Semi mechanized Mine 18 Production Capacity of Mine Te/yr. 15,000 19 Projected Production during Production OB Removal 2013-‘14 80617 21152M3 2014-‘15 69015 1668 M3 2015-‘16 tes 125000 3700M3 2016-‘17 150000 3360M3 2017-‘18 150000 3360M3 20 Maximum Bench Height m 6 21 Gradient of Haul Road - 1 in 16 22 Machinery used for production JCB Wheel loading 1.7m3 capacity, 3 in no.Leyland,10 tes, 4 in no. Jack hammers drill-11 - no. Compressor-3, generator-2, jeep-2, aerial ropeway 17km from Bunker to Chattak cement plant at Bangladesh 23 Man power No. 152 24 Residential Houses/Area Ha 1.75 Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 2 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE 25 Water Demand KLD 50 26 Arrangement for spraying at Haul - Mobile tanker 6000litre Road capacity 27 Habitation/Rehabilitation - Nil 28 Afforestation outside of Mine 33 for plantation of Rubber, sal, lease area Ha sagaun, pineapple, cashewnuts, orange etc. 29 Afforestation programme 2013-14 200 2014-15 200 2015-16 No 200 2016-17 200 2017-18 200 30 Sell price (export) US$ 11 31 Profitability 2013-14 -69.30 2014-15 Rs(in Lakhs) -105.23 2015-16 US$ 1=Rs.60 46.20 2016-17 153.47 2017-18 148.21 Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 3 FEASIBILITY STUDY ON LIMESTONE MINE, MEGHALAYA STATE CHAPTER-2 INTRODUCTION 2.1 Background information The limestone deposit of the Komorrah area, near Bholagunj Village (Majai) in the East Khasi Hills District of Meghalaya, were earliar worked right from pre independence days by a private company known as the Assam Bengal Cements Ltd for supply of its cement factory at Chhatak, then under the Sylhet District of undivided Assam. The Komorrah limestone mine was therefore captive to the Chhatak cement Factory. The limestone mine and the cement factory were in the same management at that time. The limestone produced from this mine was transported by a 17 km long aerial ropeway originating from the Komorrah mine and terminating at the cement factory. This arrangement continued even after independence by an agreement between India and Pakistan. After Bangladesh came into being in 1971 and Meghalaya in 1972, fresh initiative were taken by both the Governments of India and Bangladesh with active participation of the Government of Meghalaya, to revive this industry for the betterment of the people living on both side of the international border. The Government of India and Government of Bangladesh constituted “Indo-Bangladesh Joint Study Group” for this purpose. The Indo- Bangladesh joint Study Group, in its report dated July 15th 1972, recommended that a “mining enterprise” will be established to undertake mining operation at the Komorrah mine and that the ropeway will be owned by the Chhatak Cement Company. The recommendation was signed by (1) Saroj Kanta Guha, leader of the Indian Delegation and by (2) H. Rahman of the Bangladesh delegation on 15th July 1972 at Dhaka. 2.1.1 Incorporation of Komorrah Limestone Mining Co. Ltd To establish the recommendation “mining enterprise”, Komorrah Limestone Mining Co. Ltd was incorporated under the Company’s Act 1956 on the 24th January 1973. 2.1.2 Promoters of the Company Komorrah Limestone Mining Co. Ltd. was promoted under the Joint sector between the Government of Meghalaya, holding 50% of the equity capital and M/s Development Consultants Private Limited, Kolkata holding the other 50%. Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 4 FEASIBILITY STUDY ON LIMESTONE MINE, MEGHALAYA STATE 2.1.3 Long Term Agreement With the approval of both Government of India and the Government of Bangladesh a long term agreement between Komorrah Limestone Mining Co. Ltd. and the Bangladesh Mineral Exploration & Development Corporation was executed at Dhaka on 14th August 1974, which, inter-alia provided for the supply up to two lakhs metric tonne of limestone per annum by Komorrah Limestone Mining Co. Ltd. to Chhatak Cement Co. Ltd a subsidiary of Bangladesh Mineral Exploration & Development Corporation (BME&DC) at a price to be agreed upon from time to time for a period of twenty years. The long term agreement was again extended from time to time. The present long term agreement will expire in 2033. BME&DC is now renamed as Bangladesh Chemical Industries Corporation (BCIC). (Annexure- I) 2.1.4 Mining Lease The first mining lease was issued by the Government of Meghalaya in 1973 for a period of twenty years. This mining lease expired on 24th June 1993. The mining lease was again renewed with effect from 25th June 1993 for a period of twenty years. The second mining lease expired on 24th June 2013. The application for renewal of the mining lease for continuation of the mining operation in Komorrah Limestone Mine in East Khasi Hills District was lodged on 3rd May 2012. Renewal of lease is awaited. (Annexure- II) As per Honorable Supreme Court’s directive, mining operation cannot be continued if second renewal of mining lease is not granted by the State Government and in case of first renewal of mining lease; mining operation is extendable for a period of two (2) years w.e.f renewal of mining lease application. In the above context Komorrah Limestone Mine ceased its mining operations w.e.f 1st October 2014 as its 2nd renewal of lease could not be granted by the Meghalaya Government. Under the above circumstances, Govt. of India, Ministry of Law and Justice; promulgated an ordinance dated 12.01.2015 to amend the Mines and Minerals (Development and Regulation) Act, 1957. Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 5 FEASIBILITY STUDY ON LIMESTONE MINE, MEGHALAYA STATE In Section 8A (6) of that ordinance, it was stated that mining of minerals for non-captive use may be extended up to 50 years w.e.f the date of grant of mining lease or deemed to have been extended up to a period ending on 31.03.2020 w.e.f the date of expiry of the period of the renewal last made; whichever is later. As the Komorrah Limestone Mine was granted lease on 25.06.1973, it is now deemed to have been extended up to 24.06.2023 considering 50 years w.e.f the grant of mining lease i.e. 25.06.1973. In the above context, a mining plan from 01.04.2013 to 31.03.2018 is prepared and submitted for approval to IBM, Kolkata. 2.1.5 Area of the mining lease The first mining lease for the period 1973 to 24th June 1993 covers an area of 240.55 hectares. The second mining lease for the period 25th June 1993 to 24th June 2013 also covers the same area of 240.55 hectares. Not all of 240.55 hectares have limestone deposit. Limestone deposit in the area occurs in three almost parallel bands separated by sandstone band. These limestone bands are classified as Band III, Band II and Band I. Band III Band III limestone is of poor quality limestone mixed with quartz. This portion of limestone deposit lying north of Band II falls in the area owned by private individuals who are no longer keen to lease their land for mining. No mining has ever been done in this area. Band II Band II Limestone deposit lying north of Band I is also owned by private individuals who are no longer keen to lease their land for mining. No mining has ever been done in this area also. Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 6 FEASIBILITY STUDY ON LIMESTONE MINE, MEGHALAYA STATE Band I Band I is a good quality limestone. This portion of limestone deposit is under the ownership and control of the Sohbar Sirdarship, East Khasi Hills District. It may be noted that mining of limestone since the Assam Cement Bengal days was on this area. When this lease was given to Komorrah Limestone Mining Co. Ltd.(KLMCL) on 25th June 1973, mining operation continued in this band-1 beginning from the western portion of deposit and gradually moving eastward. Mining operation since 1973 covers mining lease area of 240.55 hectares.
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