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

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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

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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

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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%.

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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.

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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.

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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.

2.1.6 Area of mining lease for the period 2013-24.06.2023

As mentioned earlier the limestone deposit at Band I falls in the area owned and control by the Sohbar Sirdarship. The Sohbar Sirdarship has given a No Objection Certificate for renewal of mining lease by the Government of Meghalaya to Komorrah Limestone Mining Co. Ltd over an area covering 30 hectares of land for a further period of twenty years. The balance mineable reserves of limestone in Band I on 31.03.2015 are estimated at 15.33 million tonnes. This area of thirty hectares includes the area of 20.633 hectares which is already under mining operation mentioned in the foregoing paragraph.

2.2 Brief Description of the Nature of Project

Komorrah Limestone Mine, East Khasi Hills, Meghlaya is lime stone mine having annual capacity of 1,50,000 tes of chemical quality limestone.

2.3 Need for the project and its importance to the Country or region

Mine is being operated as per agreement between Govt. of India & Govt. of Bangladesh. Long term agreement is annexed (Annexure- I). All limestone produced from this mine is exported to Chattack, Bangladesh. It provides direct & indirect employment to about 2000 persons of this hilly region.

2.4 Demand & Supply gap

As per agreement of Govt. of India & Bangladesh 2,00,000 tes/annum limestone can be exported. But mine is able to produce about 1,00,000 tes/annum due to frequent breakdown of aerial ropeway under the administration control of BCCI, Bangladesh.

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2.5 Import vs. Indigenous production

No import is required for production of limestone mine and it is 100% indigenous production of limestone.

2.6 Export possibility

All limestone produced is exported to Bangladesh at the rate of US$ 11/tone and selling price is fixed at mutually agreed rate after every 3 years as per agreement between two Companies of Bangladesh and Indian Company.

2.7 Domestic/Export market

At present there is no domestic cement plant near the mine which can consume the limestone.

2.8 Employment generation

About 120 employees out of 152 employees of the company are local tribal from this region. About 1700 indirect employment is generated due to this project. Bulk of semi- skilled and unskilled employees are drawn from villages around the mines- Komorrah, Majai (Bholagaj), Tharia, Ichamati, Mawlong, Sohbar, Laitaria, Sohra.

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CHAPTER – 3

PROJECT DESCRIPTION

3.1 Type of Project

Komorrah Limestone project is a mining project for mining of limestone mineral and transportation to ROM mineral to Bangladesh by aerial ropeway.

3.1.1 Inter dependent project

Komorrah Limestone Mining Co Ltd. (KLMC) is a joint venture company between Meghalaya Industrial Development Corporation Ltd (MIDC), a Govt. of Meghalaya Undertaking and Development Consultants Pvt. Ltd (DCPL), Kolkata with a paid-up equity share capital of Rs. 45.00 lakhs with MIDC holding 50% of the shares and the other 50% shares of M/s Development Consultants Pvt. Ltd, Kolkata.

3.1.2 Interlinked Project

With the approval of both Govt. of India and Govt. of Bangladesh a long term agreement between Komorrah Limestone Mine Ltd and Bangladesh Mineral Exploration & Development Corporation was executed at Dhacca on 14th August, 1974 which inter-alia provided for supply of up to 2,00,000 tes of limestone per annum by Komorrah Limestone Mining Co. Ltd to Chattack 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 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).

3.2 Location Komorrah Limestone Mine is located approx 100 km SW of Shilong, near the Indo-Bangladesh Border. It is situated at Village Durbar of Sohbbar Sirdarship, East Khasi Hills Dist., and Meghalaya State. The land in Meghalaya belongs to either individual or clare or syien (Chief) or sardar of area. The entire area of leasehold falls under Sohbar Sirdarship. The location of the area is shown in location plan

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The mine falls within the survey of India Topo-sheet no. 78 O/12 and bounded by coordinates Lat. 250 11’ 15” to 250 10’30” North and longitude 910 43’38” to 910 45’10” East Komorrah is connected Tyllab Bazar which is connected with Cherrapunji by all weather road (Plate- I & II).

The area comprises of east-west trending rugged hills and hillocks dissected by rivers. Southern sides of the Shillong plateau is denoted by sharp escarpment and are covered by flat planes of Bangladesh. The topography is having an elevation deference of 246 m maximum and minimum contours of 315 m and 69 m respectively. (Plate- III)

Komorrah is connected with Bholagang Bazar which is connected with Cherrapunji by an all weather road. The mine site is about 100 km from Shillong, the capital town of Meghalaya State.

3.3 Details of alternate site considered and basis of selecting the proposed site particularly the environmental considerations:

This is already a mining area and hence alternate site is not applicable. Alternate site cannot be thought because of limestone mine/quarry are site specific project based on availability of in-situ limestone occurrence and cannot be shifted.

3.4 Size or magnitude of operation:

Originally mining lease was granted for 240.55 Ha from 25th June, 1973 to 24th June, 1993. The second mining lease for the period 25th June 1993 to 24th June 2013 also covers an area of 240.55 Ha. Application for second mining lease renewal for the period 25th June 2013 to 24th June 2033 has been made for 240.55 Ha vide letter No. KLMC/RML/56/81 dated 3.5.2012 and subsequently application for renewal of mining in continuation of the above letter area of mining lease was modified for 30 (thirty) Ha as Durbar of Sohbar Elaka/Sirdarship vide agreement dated 10th July, 2013 has agreed for renewal of mining lease area of 30(Thirty) Ha of land only for another period of 20 (twenty) years. KLMC is expecting the approval of mining lease shortly. As per MMDR ordinance dated 12.01.2015, mining lease is deemed to have been extended up to 24.06.2023.

The capacity of mine will be 1,50,000 tes/annum.

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3.5 Project description with process detail (a schematic diagram/flow chart showing the project layout, components of project, etc.)

Mining process flow diagram with Pollution Control Measurement

ROM Generation Wet Drilling, controlled Drilling, Blasting and Mechanical blasting Breaking to 12” size

ROM Transportation by Tipper Bunker For Mechanical Sizing

Water Spray on ROM prior For water spray on Roads/ to charging to sizer & water Transportation by Aerial Ropeway Loading and un loading areas/ spray through nozzles/ Green belt. Covered Conveyor Belts/

Water spray at Roads/ Transportation by aerial ropeway to Green Belt Chattak Cement Plant, Bangladesh

3.5.1 Geology and Reserves a) Topography, drainage pattern, vegetation, climate, rainfall data

of the area applied/ mining lease area

Topography

The area comprises of East-West trending rugged hills and hillocks dissected by minor rivulets of the main Doba River. The Southern edge of the Shillong Plateau is dissected by a sharp escarpment. Beyond this hill ranges are the flat plains of Bangladesh to the south. Topographic Plan is attached as Plate-II.

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Drainage pattern, Vegetation, Climate, Rainfall This limestone mine is situated on non-agricultural land, non-forest area. There are no water bodies. There is no national park, wild life sanctuary, eco sensitive areas and there are no notified industrial areas. In the South of the mine (outside of the mining lease area) there is a nala which HFL is 65m Boundary of Bangladesh is within 5 km of the mine.

A short spell of hot summer with cool winter and warm humid climate form the general characteristics of the climate. The rainfall is very heavy during the monsoon. Occasional pre-monsoon showers during the month of March to April are also not uncommon in the area. The mean annual rainfall of this region is about 2440 mm. About 76% of the total rainfall occurs during June to October. The relative humidity remains between 75 to 83%. Wind Speed - Varies from 1.9 to 4 Km per hours Wind direction - West to South b) Brief descriptions of Regional Geology with reference to location of lease/ applied area-

Regional Geology

On a regional basis, the southern flank of the Shillong Plateau shows a good development of Cretaceous and Lower Tertiary Sediments which extend in an east-west trend. The Therriaghat River directly to the east of the area under survey presents a fair section of these sediments. From North to South the stratigraphy of the area is as follows:

Cretaceous : Mahadek & Langpar formations (Stage)

Paleocene : Theria sandstone (Stage)

Lower & Middle Eocene : Sylhet Limestone formation (Stage) (Three

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Limestone and two sandstone members)

Kopili Shale

(Alteration of shales and sandstones)

The Sylhet Limestone stage and the Kopili Stage of Jaintia series are considered as Lithostratigraphic units. The entire sequence forms a monocline. For most of the part the beds show low southerly dip. But towards the southern extremities the beds dip at a high angle. The Sylhet limestone formation forms the higher east-west trending hillocks while the kopili Shales are mostly exposed on the southern flanks and on the valleys. The general trend of the formation is east-west with a high dip ranging from 560 to 650 towards south. The dip of the different units of limestone appears to become gentler towards north. The rocks of the Kopili Stage are mostly disrupted. However, along its contact with Prang limestone the Kopili shales show the same behavior of Prang limestone over which it conformably lies but towards the south the same unit shows a northerly dip. This shows a disturbance within the Kopili stage. This disturbance may be due to a fault within the Kopili shale, which may be an off-shoot of the main Shella-Dawki fault.

The Prang Limestone is well jointed having three sets of joints which are parallel to the bedding plane and two other sets which are perpendicular to the bedding plane. Solution cavities and sink holes are common, depicting the typical rugged limestone. c) Detailed description of geology of the lease area such as shape and size of the mineral/ ore deposit, disposition various litho-units indicating structural features if any etc.

Geology of the deposit

The study area, Komorrah, occurs at the high dipping Southern extremities of the monocline where only the upper part of the Sylhet Limestone and the lower portion of the Kopili shales are encountered.

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The following stratigraphic section is observed in Komorrah area:

Kopili shales

Limestone I

Sandstone A South

Limestone II

Sandstone B

Limestone III North

Limestone I & Sandstone A may be positively correlated with the Prang member and the Narpuh member respectively of the Sylhet Limestone formation of the region; while the two lower limestone bands II & IIII and the interbedded sandstone B probably represent the Umlatdoh Limestone of Sylhet Limestone formation.

Description of the deposits

i) Limestone Band I (Prang)

This band traverses the deposit from east to west and continues beyond the lease hold area in both directions. From North to South it extends for about 170 meters (Average width). The lowest and the highest exposed levels of the limestone band are 65 mt and 150 mt (Average). The sections along A-A’ ,B-B’ , C-C’ , D-D’ , E-E’ , F-F’ , G-G’ , H-H’ , I-I’ & J-J’ , show the N-S disposition of the 1st band limestone of the deposits.

This band of limestone is resting conformably on the Narpuh Sandstone and is correlated with the Prang Limestone. It is the largest single band of limestone in the area. The Prang Limestone is light

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ii) Limestone Band II (Umlatdoh)

The 2nd limestone consists of 2 narrow bands of limestone of same physical and chemical properties dissected by a continuous thin band of sandstone. Because of their same nature the two thin bands of limestone have been considered as a single band and is correlated with the Umlatdoh. This limestone band is buff to light grey in colour. It is very fine grained, hard and highly fossiliferous.

iii) Limestone band III

This band of limestone is also noticed to traverse the lease hold area East to West running parallel to the other litho units. This 3rd band limestone has high MgO content and is correlated with the Lakadong Limestone. The thickness of the band varies from place to place along strike length. Above this limestone band, shale, sandstone and conglomerate bands are encountered. While traversing from South to North all the bands are running parallel to the other litho units of the lease hold area.

iv) Narpuh Sandstone

The band of sandstone occurs between the Prang (Band I) and Umlatdoh (Band II) limestone bands. It is medium to coarse grained and light brown in colour. It is generally very friable. The thickness of this band varies from place to place (average 25 mt) along the strike length.

v) Kopili Shales

Kopili Shale occurs over the Prang Limestone. These are composed of alternating bands of shales and sandstones. The shales are generally dark grey to light grey in colour.

Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 15 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE d) (i) Name of prospecting / exploration agency- Directorate of Mineral Resources, Government of Meghalaya. In the year 1972-73, 1974-75 to 1975-76. (ii) Address – Govt. of Meghalaya, Shillong. (iii) E mail address- Not available iv) Phone Number - Not available e) Details of prospecting/ exploration already carried out: i) Number of pits and trenches indicating dimensions, spacing etc along and across the striker/foliation with reference to geological plan. 4 nos. of exploratory trenches of dimension of 3 m by 5 m, in order to determine the lowest limit of mineralization more accurately, have been done as proposed in the five years plan (2008-‘13) complying with the commitment made. Location of the 4 trenches is shown in Plate No. III, IV and Plate no. V.

ii) Number of bore holes indicating type (Core/RC/DH), diameter, spacing, inclination, Collar level, depth etc with standard boreholes logs duly marking on geological plan/sections. Seven nos. of boreholes were drilled earlier by the Directorate of Geology and Drilling, Govt. of Meghalaya, details lithology are given in Annexure – VII. iii) Details of samples analysis indicating type of sample (surface/sub- surface from pits/trenches/borehole etc.) Complete chemical analysis for entire strata for all radicals may be undertaken for selected samples from a NABL accredited Laboratory or Government check samples (At least for 10% of total samples may be analyzed in accordance to BIS and reports from NABL accredited/other government laboratory).

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Analysis of borehole core samples were made at laboratory of DCPL and laboratory of Inspection Survey & Surveillance (India) Private Limited, and results are given in Annexure – VIII. iv) Expenditure incurred in various prospecting operations. Data Not available. f) The surface plan of the lease area The surface plan prepared on a scale of 1:2000 with contour interval of maximum of 5 m duly marked by grid lines showing all features indicated under Rule 28(1) (a) of MCDR 1988. (Plate - III) g) For preparation of geological plan, surface plan prepared on a scale of 1: 2000 scale has been taken as the base plan. The details of exploration already carried out along with supporting data for existence of mineral, locations proposed explorations, various litho units along with structural features, mineralized/ore zone with grade variation are marked on the geological plan along with other features indicated under rule 28 (1)(b) of MCDR 1988. (Plate – IV) h) Geological sections prepared on 1: 2000 scale of geological plan at suitable interval across the lease area from boundary to boundary. These are shown in Plate – IV A & IV B. i) Future programme of exploration with due justification (duly marking on Geological plan year wise location in different colours) taking into consideration the future tentative excavation programme planned in the next five years Five boreholes for the next plan period are proposed to be drilled with a total Meterage of about 215m j) Reserves and resources as per UNFC with respect to the threshold value notified by IBM As stated earlier, in approved Scheme of Mining dated 15.9.2009, proved (UNFC Code 111), probable (UNFC Code 122) and possible (UNFC Code 331) reserves were estimated; based on detailed mapping, surveying, seven exploratory boreholes and four numbers of trenches made within the leasehold area of 240.55 Ha.

(Refer approved Scheme of Mining dated 15.9.2009, Chapter 3, Reserves, para 3.1, Page 2 & para 3.1.1, page 3,)

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Present reserves have been re established based on the result of drilling & trenching done and the quarry faces exposed so far to review the category of reserves only.

As per UNFC guidelines, the reserves are transformed based on degree of geological confidence and knowledge of geological assessment of resources, feasibility assessment and economic criteria. Thus the geological reserves of Komorrah limestone deposit estimated based on degree of geological proving , have been first categorized into geological resources (Measured & Inferred) and transformed into geological reserves based on their mineability, mine feasibility and economic consideration into proved and probable reserves as per the basis and parameters as under:

Basis and parameters of resources and reserves estimation:

The estimation of reserves has been made by cross section method. i) The geological resources are considered on the basis of earlier exploration data/information during the period 1974 to 1998 and four no of trenches during 2008-09 to 2012-13. ii) Ten geological X-sections drawn on geological plan each 200m apart( Sections AA’,BB’,CC’,DD’,EE’,FF’,GG’,HH’,II’, JJ’ . iii) Thickness limestone band-I & II intersected in seven boreholes drilled considered iv) The bottom horizon of limestone band I has been considered up to 70m level considered as proved category and limestone band II as probable (121) category and below 70m level upto +60 m level have been considered as inferred resources. v) The tonnage factor has been considered as 2.5 t /m3. vi) The resources and reserves as per UNFC guidelines are given below:

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Table 3.1 RESERVES AND RESOURCES AS PER UNFC CODE Category UNFC Band-I Band-II Total Grade Code Limestone Limestone

A. Total Mineral Reserve 11281535.00 21194590.00 32476125.00

Proved Mineral Reserve 111 11281535.00 0 11281535.00 Band-I

CaO 48.2-54.0

Probable Mineral Reserve 121 0 21194590.00 21194590.00 Band-II CaO 47.2-54.4

B. Total remaining 8693110.00 11183907.50 31158552.50 Resources

Measured mineral 331 3543725.00 1831750.00 5375475.00 Do resources

Indicated Mineral 332 649095.00 6168690.00 6817785.00 Do Resources

Inferred Mineral Resources 333 4500290.00 3183467.50 7683757.50 Do

Total Reserves & 19974645.00 32378497.50 52353142.50 Resources

K) Mineral Reserves/Resources: Mineral Resources: Mineral resources have been estimated purely based on level of exploration, with reference to the threshold value of minerals declared by IBM. In the leasehold area of 240.55 Ha, the geological resources (Measured, Indicated and Inferred) established based on previous exploration during the period 1974 to 1998 and four no of trenches made till date are as under: and are given in Table 3.2 below

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Table-3.2: Geological Resources as per UNFC Code Level of Exploration Resources in million tons Total Grade

Band-I Band-II Limestone Limestone

G1 – Detailed 14825260.00 23026320.00 37112150.00 Band- I exploration CaO= 48.2-54.0

Cement Grade

Band-II

CaO=47.2-54.4

Cement Grade

G2 - General 649095.00 6168690.00 6817785.00 Band- I Exploration CaO= 48.2-54.0

Cement Grade

Band-II

CaO=47.2-54.4

Cement Grade

G3 – Prospecting 4500290.00 3183467.50 7683757.50

G4 - Reconnaissance Nil Nil Nil

Methodology and Principle followed for UNFC Classification

1. The geological mapping of the three limestone horizon and their intervening sandstone strata were done in detail by Directorate of Mineral Resources, Govt. of Meghalaya.

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2. Exploration of seven boreholes made up to limestone band-I & band-II and geological resources estimated as per the degree of confidence of exploration. 3. Four number of trenches within the limestone band-I as a part of mine development were also made during the period from 2008-09 to 2012-13 4. As no further exploration for detail proving of limestone band II & III are made, the geological resources as estimated earlier have been considered same. 5. As per UNFC norms , the geological resources of limestone in the ML area are considered as Measured Resources( UNFC code 331) for limestone band-I & II (Area where proved by seven boreholes intersection) and inferred resources (UNFC Code-333) for limestone band-I and band-II. Remaining area below 10m of measured resources as Inferred resources (UNFC Code 333) for limestone band –I and II on the basis of UNFC guidelines and principles as stated below (Fig.1).

Fig.1 Principles of UNFC Code

Exploration Results

Increasing level of geological Mineral Resources Mineral Reserves knowledge and confidence Inferred ( UNFC Code 333)

Indicated Probable(UNFC Code 122)

(UNFC code 332)

Measured Proved(UNFC Code 111)

( UNFC Code 331)

Considering mining, metallurgical, economic, marketing, level, environmental, social and governmental factors

The modifying factor

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In the present context of limestone deposit of Komorrah Limestone Mine of M/s Komorrah Limestone Mining Company Limited (KLMCL), East Khasi Hills district, Meghalaya State, the UNFC code is used on the principles of exploration results where the mineral resources are a concentration or occurrence of mineral of intrinsic economic interest in or on such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quality, grade, geological characteristics and continuity of the limestone mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Limestone resources in this case are subdivided, in order of increasing geological confidence into three categories as under:

Inferred Mineral Resources (UNFC Code 333):

Limestone band-III is a dolomitic limestone of intrinsic value and is mapped wherever exposed in the hill slopes and its occurrences and grade etc are yet to be proved by detailed exploration. The chemical analysis of in-situ samples indicate a high MgO content of 16 to 19% and CaO content ranges from 32 to 34% which is much lower than the cut off grade of 40% of saleable limestone band-I being mined . Mining is thus not feasible at present and marketing, economic viability or intrinsic economic value not made. This horizon of limestone band-III is, therefore, categorized as Inferred mineral resources considering geological, feasibility and economic axis as G3, F3 & E3 respectively. However, the inferred resources of limestone band-III have not been furnished in this Scheme of mining.

Limestone band- II is mostly covered by sandstone band and is identified by mapping of exposed surfaces next to limestone band-I and sandstone parting at its top edge only at the higher contours (Refer para 3.4.2.2, page 7 of approved Scheme of Mining, chapter 3, Reserves) and assessment of lithological characters, and surface mineralization partly proved over a limited area only. Detailed exploration in the major strike length of the area by six boreholes have partly proved upto a limited depth horizon.. Here the tonnage, densities, shape, physical characteristics, grade and CaO & MgO content of limestone mineral content are estimated with reasonable level of confidence

Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 22 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE based on outcome of six boreholes drilled in the ML area and exposed hill slopes and road cutting etc and also by sampling and by chemical analysis through appropriate techniques from locations such as exposed outcrops, The locations are widely spaced to confirm geological and grade continuity but are spaced closely enough for continuity to be assumed. The chemical analysis of samples from borehole intersections reveal good grade with CaO content ranges from 47 to 54% and MgO content varies from 0.86 to 1.97%. However the proposed methodology and development plan for winning limestone mineral and voluminous waste/overburden material, , infrastructure requisite, marketing and overall economic viability are yet to be proved. Though the specific end uses grade satisfies the cut off grade but linkage and demand of limestone from industries are yet to be established. Moreover, the land acquisition appears to be difficult for mining of this limestone band-II

On above consideration, this limestone band-II is also categorized as inferred resources(UNFC 333) below 10m depth of measured resources by sub surface exploration. These mineral resources considering geological, feasibility and economic axis as G3, F3 & E3

Similarly, limestone band-I where the subsurface exploration is yet to be done at depths, the extrapolation of mineral resources is done upto 10m below measured mineral resources and is categorized as inferred resources ( UNFC code 333)

Indicated Mineral Resource (Code 332):

Limestone band- II wherever occurred above +70m horizon is mostly covered by sandstone band and is identified by mapping of exposed surfaces underlying limestone band-I and sandstone parting at its top edge only at the higher contours. Assessment of lithological characters, and surface mineralization partly proved over a limited area only. Detailed exploration in the major strike length of the area by six boreholes have partly proved upto a limited depth horizon. However, in the area in the west along cross section line A-A’ & B-B’, the limestone band though occurring above +70m horizon, the tonnage, densities, shape, physical characteristics, grade and CaO & MgO content of limestone mineral content are estimated with reasonable level of confidence based on mapping only in exposed hill slopes and road cutting etc and also by sampling and by chemical analysis through appropriate techniques from locations such as exposed outcrops, an indicated resources of the band –II have been estimated. The chemical analysis of samples from

Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 23 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE nearby borehole intersections reveal good grade with CaO content ranges from 47 to 54% and MgO content varies from 0.86 to 1.97%. However the proposed methodology and development plan for winning limestone mineral and voluminous waste/overburden material, , infrastructure requisite, marketing and overall economic viability are yet to be proved. Though the specific end uses grade satisfies the cut off grade but linkage and demand of limestone from industries are yet to be established. Moreover, the land acquisition appears to be difficult for mining of this limestone band-II .On above consideration, this limestone band-II is also categorized as indicated resources(UNFC 332) upto +70m depth.. These mineral resources considering geological, feasibility and economic axis as G2, F2 & E2

Similarly, limestone band-I in the west part of area, along cross section line A-A’ & B-B’, where the subsurface exploration is yet to be done at depths, the extrapolation of mineral resources upto +70m horizon is indicated by mapping only , indicated mineral resources is estimated and is categorized as indicated resources ( UNFC code 332) as given in Table 3.1 (Page 19)

Measured Mineral Resource (Code 331):

For the limestone band-I tonnage, densities, shape, physical characteristics, grade and CaO and MgO content are estimated with high level of confidence because of detailed exploration. The limestone band-I is mapped in detail on 1:2000 scale with details of surface geologic features, strike and dip extension of deposit, structure of deposit. The results of detailed exploration carried out through earlier seven boreholes and four trenches made as a part of mine development in the present quarry area. Sampling from quarry faces and testing information gathered through appropriate techniques from locations such as exposed outcrops, workings and earlier drill hole data also add to the level of confidence. The locations are closely spaced to confirm geological and grade continuity. As the knowledge of geology of the deposit has been obtained with high confidence, by means of geological exploration; (seven inclined boreholes and details of sampling and chemical analysis are available), mining is being carried out as per approved scheme of mining/scheme of mining available up to 31.3.2013. Infrastructure is available for production of mineral and dispatch of mineral to Bangladesh by aerial ropeway and mine is earning sustainable revenue. All legal compliance of safety and environment are complied with. Specific end use grade of buyers is higher than the cut off grade of

Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 24 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE mineral being mined, and the mining is economically viable. On above consideration, this limestone band-I is categorized as Measured mineral resources (UNFC code 331).

Also, the limestone band-II which is proved by sub surface exploration and by detailed mapping, are categorized as Measured mineral resources (UNFC code 331). The chemical analysis of borehole core samples of this limestone band also indicates a good quality and good grade with CaO content ranges from 47 to 54% and MgO content varies from 0.86 to 1.97%. Profitable mining may be taken up in future.

Classification of Reserve as per UNFC code

The mineable portions of these resources are categorized as proved mineral reserves considering geological, feasibility and economic axis as G1, F1 & E1 respectively.

In the case of Komorrah Limestone Mine, limestone minerals are strata bound deposit of regular nature. The results of chemical analysis, feasibility study and economic evaluation of deposit based on various factors such as opencast mining methodology, recovery factor, mining losses, processing loss, cut off grade, Ultimate pit depth proposed - are considered for estimation of reserves.

As per UNFC guidelines, the Komorrah lime stone deposit are considered proved (UNFC code 111) and Probable reserves (UNFC Code 121) based on following criteria and consideration:

Detailed mapping and drilling of seven boreholes made up to limestone band-I.and partly up to limestone band-II In addition four nos. of trenches also made during mine development in 2008-09 to 2012-13. For mining in limestone band -I Inclined boreholes proved existence of limestone Band –I & II from 144m up to 52m horizon in boreholes KBH-1 to 7 Chemical analysis of limestone samples from borehole cores has been done. The estimation of reserves has been made by cross-section method

1. Ten cross sections (Plate-IVA & IV B) lines (AA’,BB’,CC’,DD’,EE’FF’,GG’,HH’ ,II’ & JJ’) are drawn on the geological plan (Plate-IV) at intervals of 200m covering entire strike length of limestone deposit of the leasehold area.

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2. The tonnage factor has been considered as 2.5 t/m3 of limestone. 3. The mineable reserves are estimated considering limestone blocked in barrier along the boundary, protection of nallas and the benches of limestone to be left during mining as batter slopes in western and eastern part.

Proved Reserves (UNFC Code 111):

This is economically mineable portion of the measured limestone band –I resources. It includes materials and allowances which occur when the material is mined and complying all legal, mining, metallurgical, economic, marketing, environmental, social and governmental factors land conditions. The limestone band-I which has been proved in detail by geological exploration and are being mined economically and exported to Bangladesh complying all other legal, environmental and statutory compliances since its inception of company in 1973.

Probable Reserves (UNFC Code 121):

The measured resources of Limestone Band –II which are geologically explored partly by six boreholes, the grade is also found to be similar as of Band-I limestone and potentially economic and end–use grade is higher than cut off grade but voluminous overlying sandstone overburden, production plan not and uncertain land acquisition possibility are termed as “Probable Reserves” (UNFC Code 121 ) . This limestone band-II horizon is explored partly but mining is not yet considered feasible as the intervening parting of sandstone appears to be voluminous and considered un-economic at present. Thus this mineral limestone in band-II is considered “Probable Reserves”. The entire resources of limestone band-II are, therefore, converted into reserves based on increasing level of geological knowledge and confidence and considering legal, mining, metallurgical, economic, marketing, level, environmental, social and governmental factors. The inferred resources of limestone band–I & II tonnage, grade and mineral content of which are estimated on poor confidence level and inferred only are not considered into reserves category.

3.6 End use grade and analysis

The end use grade of limestone mineral by buyer is as under:

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Table 3.3

Parameter wise, Acceptable vis-à-vis Actual

Constituent Consumer’s Actual being Acceptable range (%) produced (%)

SiO2 0.40- 2.00 0.94

Al2 O3 0.40- 2.00 0.83

Fe2 O3 0.20-0.68 0.17 CaO 50.40-56.00 53.49 MgO 0.48-0.96 0.95 LOI 40.00-42.50 43.05

The summary of chemical analyses is given as under: TABLE: 3.4 Quality of Limestone (Figures in Percentage) Composition Limestone Band-I Limestone Band-II Limestone Band-III CaO 48.27-54.0 47.23-54.4 32.24-34.16 MgO 0.80-1.57 0.86-1.97 16.10-18.86

Al/Si O2 0.96-2.52 0.36-1.90 0.30-3.14

Fe2 O3 0.10-0.30 0.05-1.53 0.22-0.89

Al2 O3 0.25-0.86 0.28-0.60 0.32-0.84

The updated surface geological plan showing mapped lithological boundary of formation and quarry limit of limestone band-I and location of seven boreholes and four numbers of trenches in the past is given in Plate-IV. Eleven geological X-sections at 200m interval from west to east are shown in Plate IVA & IVB. 3.7 Salient description of the present Mining Method

The present mining method is semi-mechanized open cast method. The ore body (Limestone) extends over east-west direction (strike along east-west is about 925 m within the leasehold area) and dips towards south at an angle of around 450. The deposit is located in the southern slope of a hill range extending east-west. The lowest level at the foot-hill along a nala is around RL 65 m and goes up to a maximum elevation of around RL 300 m. The Limestone deposit is

Prepared by: Indian Mine Planners’ & Consultants, Kolkata. Page 27 FEASIBILITY STUDY ON KOMORRAH LIMESTONE MINE, MEGHALAYA STATE either exposed in some patches or covered with a thin layer of alluvium of about (up to) 2 m thickness in most other places. Though there are three distinct bands of Limestone, namely B1, B2 and B3, the extraction has been confined in B1 only which is about 90m in thickness and mostly confined between RL 70 m and RL 160m. The bands are separated by Sandstone parting. Band-II is again splitted into two parts. Band-III is basically dolomitic in nature with deterioration of quality. Therefore, even in future, it is proposed to restrict the mining in B1 and B2 only. Extraction from B2 is envisaged after complete extraction from B1 up to a level of 70 m (RL).

Last 5 years production: Sl.No. Year Production Despatch OB Removal 1. 2008-‘09 114975 tes. 115313 tes. 11250 M3 2. 2009-‘10 132009 tes. 131806 tes. 16349 M3 3. 2010-‘11 140225 tes. 140259 tes. 20600 M3 4. 2011-‘12 139831 tes. 140021 tes. 19300 M3 5. 2012-‘13 124631 tes. 124207 tes. 17200 M3

Next 5 years projected production:

Sl. No. Year Production OB Removal 1. 2013-‘14 80617 tes. 21152 M3 2. 2014-‘15 69015 tes. 1668 M3 3. 2015-‘16 125000 tes. 3700 M3 4. 2016-‘17 150000 tes. 3360 M3 5. 2017-‘18 150000 tes. 3360 M3 Flow Chart of Komorrah Limestone Mine

Approach Road/Haul Road 1 in 16 gradient to Top Most Bench

Dressing of Face

Drilling for Bench formation

Blasting for Bench formation

Breaking oversize boulders to 12” by rock breaker by hydraulic operated machine

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Loading by excavator into Tipper

Transporting by Tipper to Bunker capacity of 350 tes.

Transport of material from KLMC to CCCL by Aerial Ropeway having design capacity 66 tes/hr. But now 20 tes/hr due to frequent breakdown of Aerial Ropeway maintained by CCCL (in Bangladesh) length 17 Km.

3.8 Raw material required along estimated quantity likely source, marketing area of products, mode of transport of raw materials and Finished Product

Explosive (approx. 22160 Kg,/year), HSD (approx. 1.38 KL/year), POL is required as raw material . Explosive is transported by explosive van supplied by North East Explo-Chemical License No. E/HQ/MG/21/3 (E 32758). HSD is collected from nearest Petrol Pump. Electricity – 3000 KWH/year is consumed.

Chemical quality (size 12”) Limestone is transported to Chatak Cement Plant by Aerial Ropeway having design of 66 tes./hour. But at present capacity is reduced to 20 tes./hour due to frequent breakdown of Aerial Ropeway. It is maintained by CCCL (in Bangladesh) and length of Aerial Ropeway is 17 Km. 3.9 Resource optimization/recycling and re-use envisaged in the Project, if any At present about 80,000 tes Limestone is produced. It is envisaged to optimize production to 1,50,000 tes./year by improving the condition of Aerial Ropeway which is to be overhauled by CCCL in Bangladesh. Production can be optimized by selling limestone outside in case of aerial ropeway breakdown. No processing or recycling and re-use of limestone mineral are being made and only run of mine (ROM) mineral is being transported to Bangladesh cement plant. 3.10 Availability of Water, its source, Energy/Power requirement and source About 1500 KL/month water is required and it is supplied from Maytri Nala. Requirement of power/electricity is about 3000 KWH per year and it is supplied by Meghalaya State Electricity Board, Cherapunji. In case of electricity failure, two diesels operated generator having capacity 65 KVA and 45 KVA are also provided. 3.11 Quantity of waste to be generated (liquid and solid) and scheme for their management disposal Limestone deposit is either exposed in some patches or covered with thin layer of alluvium of about 1 m to 2 m.

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About 3500 M3 /year overburden/waste is generated.

Overburden/waste is utilized as follows

(a) About 30% of OB/waste is utilized for blending with chemical grade/high grade limestone for bringing cement grade as per Raw mixed design. (b) Sizeable part of waste is used for maintenance/making Haul Road. (c) Some part of waste is utilized for filling low land in nearly Bholaganj for construction of dwelling houses, a part of CSR activities by departmental tippers. (d) Water is sprayed for dust suppression at haul road and bunker. (e) Sedimentation tank 6m x 6m x 1.5 has been made near nalla and it is regularly cleaned. 3.12 Schematic representations of the feasibility drawing which give information of EIA purpose.

3.12.1 Top soil storage, preservation and utilization

Mining activities shall be continued on the flat section between 168m RL and 144m RL it is expected that substantial quantity of soil up to 10% of the volume excavated may be generated. All the soil to be generated shall be stacked properly at the soil dump near the Waste Dump Site (WDS) and shall subsequently be utilized for rehabilitation of reclaimed areas.

3.12.2 Land reclamation and rehabilitation i) All the mined out area (period 2013-‘14 to 2017-‘18) is roughly above the 110m Reduced Level and have moving benches. This area will not require reclamation. ii) Above the 90m RL as Band II limestone is largely unexposed and unexploited the sloping upper surface of sandstone exposed by mining out Band I over substantial area cannot be rehabilitated and reclaimed fully but some reclamation and rehabilitation work shall be done at the top surface of sandstone Band and afforested with locally suitable trees like betel nut and citrus trees.

3.12.3 Waste Dump Management

The proposal for the 5 years till the expiry of the Mining Plan period is to shift all the available waste material and use it for backfilling the depression.

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The excess waste material that will arise in the next 5 years shall be kept at the Waste Dump Site. Both the depression area and the waste dump site shall be reclaimed and afforested.

The top soil stored nearby shall be utilized during reclamation.

3.12.4 Afforestation programme with precautions proposed for survival and protection of plantation

It is proposed to rehabilitate the mined out area created by mining activities in the 5 years 2013-18 by planting saplings in the area above the 70m RL. For survival of the saplings during the dry season, adequate manure shall be used and initially for 3 years or so bamboo fencing shall be put around the plantation to protect the samplings.

Afforestation Programme

Year No. of trees be planted

2013-14 200 2014-15 200 2015-16 200 2016-17 200 2017-18 200

The plantation outside the mining lease is mainly Rubber, Sal, Sagan, Pineapple, Cashew Nuts etc. The company has taken 33 Ha of land nearly 15-16 km away outside the mining lease for plantation of the following: i. G-9 Banana ii. Orange iii. Pineapple iv. Asparagus v. Anthurium vi. Lilium viii. Coloured capsicum

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3.12.5 Quality of air

Air quality shall be monitored at five important locations- 2 in the colony, 2 at the work site and 1 near the bunker where rope way buckets are loaded.

Samples for ambient air quality were collected and analyzed by Meghalaya State Pollution Control Board, and analysis usually shows that all parameters were within permissible limit during period 07.05.2013 to 08.05.2013.

3.12.6 Quality and make of water including surface and ground water

It is proposed that water quality in the Myntri stream be monitored twice every year during dry season and rainy season when pit development below 90m RL take place from year 2013-14 up to 2017-18.

Samples for ambient water quality were collected and analyzed by Meghalaya State Pollution Control Board, and analysis usually shows that all parameters were within permissible limit during period 07.05.2013 to 08.05.2013.

3.12.7 Noise Level

Ambient noise quality were collected and analyzed by Meghalaya State Pollution Control Board, and analysis usually shows that all parameters were within permissible limit during period 07.05.2013 to 08.05.2013.

Sources of noise i) drilling operations ii) blasting operations iii) loading by Loader/ Excavator iv) movement of tippers v) ropeway bunker operations The environmental attributes as monitored by Meghalaya State Pollution Control Board are given in Annexure- IV. The mitigation measures against environmental degradation are shown in Plate-VII & Photograph 1, 2, 3 & 4.

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Pattern of blast holes

For reduction in noise following precautions are followed. i) Single row ii) Drilling parameters depth=1.6m, burden=1.00m, spacing=1.20m iii) No. of shots: 10 per round iv) Charge of explosives: 0.35-0.40 kg per hole.

3.12.8 Treatment of mine water and effluent/ toxic substance before discharge

Soakpit has been provided in the quarters of the colony.

The mine water shall first be discharged to a settling tank so that solid particles will settle down and the clear water is allowed to overflow to the nala.

3.12.9 Scientific Mining

No other investigations have been suggested as the mine is following the provisions of MCDR 1988 and Metalliferous Mines Regulations 1961.

Conservation of Minerals

There is no generation of sub-grade minerals. There is no wastage of minerals and practically 100% of the limestone produced is dispatched to the end user i.e. CCCL.

Protection of Environment

No special investigation has been made for protection of the environment but every effort is made to prevent destruction of forests, pollution of surface water and suppression of dust emitted by water spraying.

The nearby nala shall also be protected by a stone pack wall 0.5m high running parallel to the nala at a distance of 1.0m from it.

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CHAPTER- 4

SITE ANALYSIS

4.1 Connectivity

The mine is connected with Cherrapunji/Shillong by an all weather road. Except for a patch of 10-12 km. the rest of the road is metalled and reasonably good. Distances of some of the important places from the mine are as under:

Cherrapunji : 45 km.

Shillong : 100 km

Guwahati Railway Station : 200 km.

Guwahati Airport : 225 km.

Umroi Airport : 140 km.

4.2 Land form, Land use and Land ownership

Land tenure system in Meghalaya is different from rest of the country. Land in Meghalaya belongs to either individual or clan or Syiem (chief) or Sordar of the area. The entire area of the Komorrah lease-hold falls under the Sohbar Sordarship.

District & Taluk & Khasra Area in Hect Ownership/ State Village no./Plot Occupancy no./Block range etc

East Khasi Durbar of Durbar of Hill Dist. Sohbar - 240.55 Sohbar Meghalaya Sirdarship Sirdarship State

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4.3 Topography

The area comprises of East-West trending rugged hills and hillocks dissected by minor rivulets of the main Doba River. The Southern edge of the Shillong Plateau is dissected by a sharp escarpment. Beyond this hill ranges are the flat plains of Bangladesh to the south. Surface Plan (including topographic features) is attached as Plate-III.

4.4 Existing land use pattern

This limestone mine is situated on non-agricultural land, non-forest area. There are no water bodies and does not lie on the CRZ zone. There is no national park, wild life sanctuary, eco sensitive areas and there are no notified industrial areas. In the South of the mine (outside of the mining lease area) there is a nala whose HFL is 65m Reduced Level. Boundary of Bangladesh is within 5 km of the mine.

4.5 Existing infrastructure

Industrial infrastructures in the mine lease area are:  Canteen  Latrine and Urinal  Ambulance  Rest Shelter  ANFO Mixing Shed  Guest House  Staff and Worker Colony  Dispensary  Recreation Club  Power Transmission Line  Telephone Line  Transport fleet  Fire Fighting Station  Water Supply facilities

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4.6 Soil Classification

The North Eastern Hilly Region of India is characterized by heavy soil erosion, loss of soil fertility and deforestation causing acute environmental degradation and severe ecological imbalance. Shifting cultivation or Slash and Burn agriculture, locally known as JHUM Cultivation, is the main form of agriculture in this region. Shifting cultivation in its more traditional and cultural integrated form. Due to shortening of Jhum Cycles, quite often, the secondary forests also do not get adequate time to regenerate. The repeated use of land with short Jhum cycles finally converts the Jhum fallows into degraded wastelands. The prevailing land tenure and ownership partner has been viewed as the most important factors for replacing shifting cultivation in north-east. Jhum has been the way of life and integral component of the cultural ethos of the people in the north-east.

4.7 Climatic data from secondary sources

Maximum and minimum temperatures of this area normally range from 20.9 to 27.4 degree centigrade and 67 to 18.1 degree centigrade respectively. The mean annual rainfall of this region is 2439 mm with coefficient of variation of 15.96%. About 76% of the total rainfall occurs during June to October. The relative humidity remains between 75 to 83%. Wind Speed - Varies from 1.9 to 4 Km per hours Wind direction - West to South

4.8 Social infrastructure available

4.8.1 Power Supply

Electrical power supply of MSEB is available at the mine. There is a substation. Apart from this, company possesses two Diesel Generators having a capacity of 45 KVA and 60 KVA respectively.

4.8.2 Medical facility

There is a dispensary/health centre at the mine attended by qualified doctor/nurse with two (2) emergency beds to take care the medical requirement of the person working in the mine. The nearest hospital, however, is at Cherrapunji (45 km).

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4.8.3 Drinking water

Public Health Engineering Dept. of Govt. of Meghalaya is supplying untreated spring water to the mine colony. In addition, river water is pumped into settling and purification tank from where further pumped into overhead reservoir for distribution.

4.8.4 Educational facility

There is a lower primary school at the mine colony. The nearest primary school and high school is at Bholaganj (2 Km) and Cherrapunji (45 kms) respectively. For college education, one has to move to Shillong, about 100 kms away from the mine.

In addition to the above, the nearest Police Station is located at Bholaganj (2 kms). The Bordar Roads Task Forces’ Camp (GREF) is at Therriaghat. Post Office facilities are available at Bholaganj (2 kms away).

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CHAPTER – 5

MINE PLANNING

5.1 Planning Concept

Limestone mineral is being mined by opencast method by benching/slicing from hill top. The drilling and blasting of limestone are made

5.1.1 Anticipated Life of the Mine While assessing anticipated life of mine, only Band I Limestone up to area considered, since Band III is Dolomitic Limestone and is not in demand at present, the reserves of the same is not taken into consideration.

Net Mineable reserves as on 31.3.2015 11.28 M.Te in Band-I

Target Production 0.15 M.Te per annum

Life of the mine (based on proved reserves of 11.28/0.15 = 75 years Band-I)

5.1.2 Duration of the existing Mining Lease: Period of mining lease of 20 years expired on 24.06.2013. Application for renewal of the mining lease is yet to be renewed. Since the mining lease is yet to be renewed, it puts a responsibility on the management to ensure not only that production is maintained but also that the proposals under the “Progressive Mine Closure Plan” are strictly adhered to; since renewal of the Mining Lease cannot be taken for granted.

Besides, the land dispute over parts of the ML area, now pending in court of law restricts the management to confine its operations only in Band I, that also within a limited area. However, as per MMDR Ordinance dated 12.01.2015; mining lease is deemed to have been extended up to 24.06.2023 considering 50 years from grant of mining lease (25.06.1973).

5.2 Basic and Long Term Features of the Mine:

5.2.1 Exploration: 4 no. exploratory trenches of dimensions 3m x 5m were made on the flat section of the deposit as shown in Plate III, roughly north and south of survey stations S9A and S11 with

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the objective of determining exactly the lowest limit of mineralization. This was basic for proper implementation of mine development plan. Partly this will guide long term planning for the mine. No further exploration was proposed. However, on renewal of Mining Lease, Mining Plan is prepared for next five years (2013-‘18) when some exploratory work is proposed based on the Mining Plan. Five boreholes are to be drilled, and total Meterage will be 215 m.

5.2.2 Mine Development:

Owing to constraints from limited period of lease and land dispute, Band II limestone cannot be developed. There is, therefore, no proposal to remove the sandstone band which stratigraphically lies between limestone Band I and band II. Mine development from 2013-’14 to 2017-’18 will be confined initially to the area near borehole KBH-3 at eastern corner and another corner at about 200m west of this corner. No change in current operation has been envisaged. The working benches between RL 140 m and RL 110 m will continue.

Sufficient barrier shall be left between the pit periphery and the nala.

Before the expiry of the anticipated Mining Lease in 2023(as per MMDR Ordinance dated 12.01.2015) the mined out area (pit) on the flat section shall be rehabilitated by planting with Areca nut saplings and allow the area to rejuvenate.

5.2.3 Loading and Transportation

Loading of sandstone (OB) will be done by excavator and transportation of limestone will be done by tippers.

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TABLE: 5.1

List of Mining Machinery

Model Model Status Factor Sr. No. Year of Year Name ofName Capacity Capacity Remarks Remarks Equipment Availability Availability No. of units Commissioning 1. Leyland ALU Oct, 2 8 Running - tipper 370,95 1994 tonnes HP

2. Leyland -do- Oct, 1 -do- Break tipper 1997 down

3. Leyland -do- March, 1 -do- Running tipper 2000

4. Leyland ALU 1613 April, 2 10 1 1 tipper 2008 tonnes running stand by

5. JCB Wheel 430Z/ALU Oct, 1 1.7 m3 Running loader 402 1994 bucket

6. JCB Wheel -do- April, 1 1.9 m3 Break loader 2003 bucket down

7. JCB 4CK Dec, 1 1.2 m3 Running Stand excavator 1999 bucket by

8. L&T 90-3 CK April, 1 1.0 m3 Running excavator 2008 bucket

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9. Air CP March, 1 325 Running compressor 1996 cfm

10. -do- -do- Oct, 1 325 Running 2000 cfm

11. -do- XA-140 Oct 1 325 Running Stand ATC 1994 cfm by

12. -do- VT-4 ATC Dec, 1 100 Running 1997 cfm

13. Generator Kirloskar Oct, 1 40 Running Stand 1982 kVA by

14. -do- -do- Dec, 1 60 Running 1997 kVA

15. Jack Atlas April, 7 32 mm Running hammer Copes 1982

16. -do- CP June 4 32 mm Running Stand 1979 by

17. Tractor Mahindra July 1 40 HP Running DI 1981

18. -do- Mahindra August 1 40 HP Break FT-60 1987 down

19. Jeeps Mahindra Sept, 1+1 -- Running Armada & 2000 Bolero

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5.2.4 Town and Country Plan

Details of colony and social infrastructure have already been given in paragraph 4.8 of

Chapter 4.

5.2.5 Population Projection

Existing manpower at Komorrah Limestone Mine is as follows:

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Sl No. Designation No. 1 Mines Manager 1 2 Asst. Mines Manager 1 3 Mines Foreman 2 4 Geologist 1 5 Mining Mate 4 6 Mines Supervisor 1 7 Driller 18 8 Hammer Man/ Breakers 12 9 Dresser 14 10 Comp Operator 3 11 Oil carrier 1 12 Carpenter 1 13 Carpenter Helper 1 14 Sweeper 1 15 Cleaner 1 16 Blaster 6 17 Blaster Helper 9 18 Security 12 19 Home Guard 8 20 Electrical Helper 8 21 Mechanic 3 22 Mech Helper 12 23 Welder 1 24 Driver 11 25 Pump Operator 1 26 Store Attdt 2 27 Mid Wife 1 28 Hospital Attdt 1 29 GH Attdt 4 30 Time Keeper 1 31 Ropeway Supervisor 1 32 Typist 1 33 Custom Attdt 1 34 Office Attdt 1

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35 Horti Supervisor 1 36 Mining Trainee 1 37 Mining Mate 2 38 Weighbridge Clerk 2 Total 152

5.2.6 Land use planning (breakup along with green belt, etc.)

The land use pattern at the end of the lease period is projected below in Table- 5.2.

Table 5.2 Land use details (All figures in Ha)

Sr. No. Particulars Land in use Land Land reclaimed Net Broken as on required for & rehabilitated Area as on 31.03.2013 Mining Plan up to 31.03.2018 (01.04.2013- 01.04.2018 31.03.2018)

1 2 3 4 5 6=3+4-5

1. Area already put under mining 14.741 2.93 2.1 15.571

2. Waste dump 2.583 0.000 2.147 0.436

3. Infrastructure 0.923 0.000 0.000 0.923 (workshop, administrative building, etc.)

4. Roads 3.14 - - 3.14

5. Natural vegetation 214.483 - - -

6. Township 1.75 - - 1.75

7. Others 0 0 0 0

8. Total 237.62 2.93 4.247 21.82*

*Excluding natural vegetation

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5.2.6 Completion of reclamation and rehabilitation of the Mined out Pit Area within the term of Mining Plan Period: Production of limestone from the mined out pit area will be continued towards east of the present mining area.

Period of existing mining lease of 20 years has expired on 24.06.2013.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 Mines and Minerals (Development and Regulation) Amendment Act 2015, as per Gazette Notification dated 27th March 2015

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. Mining activity will continue with the approval of the competent authority in accordance with the approval.

Reclamation at the start of the mining plan has been completed for 2.10 Ha. Since the mining operation in this plan period will be confined only up to 110metre level, reclamation in this plan period shall not be required. However, reclamation of land shall be continued in the area where exploitation of mineral up to 70 m. R.L has been completed. Reclamation at the start of the mining plan has been completed for 2.10 Ha. Since the mining operation in this plan period will be confined only up to 110metre level, reclamation in this plan period shall not be required. However, reclamation of land shall be continued in the area where exploitation of mineral up to 70 m. R.L has been completed.

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5.2.7 Assessment of Infrastructure Demand (Physical and Social)

As this is an existing mine, infrastructure is same as given in paragraph 4.8 of Chapter 4.

5.2.8 Amenities/Facilities

Amenities and facilities have already been given in paragraph of 4.5 & 4.8 of chapter 4.

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CHAPTER – 6

PROJECT INFRASTRUCTURE

6.1 Industrial Area (Processing Area)

The following area is put under use for various infrastructure of the project:

Sr. Particulars Land in use as on Proposed land in use as No. 31.03.2013 on 31.03.2018 (Ha) (Ha)

1. Area already put 14.741 under mining 15.571 2. Waste dump 2.583 0.436

3. Infrastructure 0.923 0.923 (workshop, administrative building,ropeway etc.) 4 Roads 3.140 3.14 5. Township 1.75 1.75 6. Total 23.137 21.82 Note: Out of 21.82 ha, 2.93 ha has been worked up to 31.03.2018 i.e. up to expiry of mining plan period and 4.249 ha has been reclaimed. (Refer Table 8.3, Land use details)

6.2 Residential area (Non-processing area)

Existing colony covering area 1.75 Ha is already in use for the executive and staff/employee.

6.3 Green belt Natural vegetation in the hilly area in the remaining parts of the leasehold area of 214.483 Hectare already exists.

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In addition to above, this company has planted around 1000 trees mainly beetle nut and fruits inside the mining lease and around 1500 outside the mining lease covering an area of 5 hectare and the survival rate is 75%. The plantation outside the mining lease is mainly Rubber, Sal, Sagan, Pineapple, Cashew Nuts, etc.

The company has taken 33 Hectare of land outside the mining for plantation of the following: 1. G-9 Banana 2. Orange 3. Pineapple 4. Asparagat 5. Anthurium 6. Lilium 7. Coloured capsicum

6.4 Social infrastructure Social infrastructure already given in paragraph 4.8 of Chapter 4.

6.5 Connectivity This has been described in chapter 4, paragraph 4.1

6.6 Drinking water management (Source & Supply)

Public Health Engineering Dept. of Govt. of Meghlaya is supplying untreated spring water to the mine colony. In addition, river water is pumped into settling and purification tank from where further pumped into overhead reservoir for distribution to houses of colony.

6.7 Sewerage System Sewerage system has been provided in the colony.

6.8 Industrial Waste Management

The quantity of waste material generated in the mine even after more than 33 years of mining operation have accumulated to only about 19318 m3 after some of the waste material was utilized in haul road maintenance. The waste material is collected at the waste dump site and is being pushed from there to the depression area for filling in rest of the waste is used to back fill the pit.

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6.9 Solid Waste Management Garbage from existing colony is collected from the houses and burnt in the pit and covered with soil.

6.10 Power requirement and supply Electrical power supply of MSEB is available at the mine. There is a substation. Apart from this, company possesses two Diesel Generators having a capacity of 45 KVA and 60 KVA respectively.

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CHAPTER – 7

RESETTLEMENT AND REHABILITATION ( R & R) PLAN

7.1 Rehabilitation and Resettlement (R&R) Plan

No village exists in the mining lease area. Hence rehabilitation and resettlement (R&R) Plan is not required.

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CHAPTER-8

PROJECT SCHEDULE AND COST ESTIMATES

8.1 Project Schedule & Cost Estimates:

It is already running limestone mine. The mining activity commenced in the year 1973 and shall be continued as there are large quantities of reserves of limestone mineral proved to exist for mining.

8.2 Financial projections /viability of the lime stone quarry of KLMC Ltd:

Though the mine in 2013-14 was in red and is likely to incur loss in 2014-15 also because of drop in production as compared to previous year, it has got potential of generating sufficient cash surplus as may be seen from the enclosed projections. Presently CCCL of Bangladesh, the sole customer, is unable to lift more than 80/85000 tes of lime stone in a year because of the poor condition of their cement plant and inadequate maintenance of the Ropeway system. However, CCCL is aware of the problems and has already initiated actions to resolve the issues. It is expected by December 2015 off-take will increase to the level of 10000 tes per month and in the Financial year 2015-16 KLMC will be able to achieve export sale of 125000 tes and from 2016-17 it will further increase to 150000 in a year for next 5 years, if not more. The mine will turn from red to green when production will exceed 100000 tonnes in a year.

At current price/expenditure level the B.E.P roughly works out to 99300 tes/yr. The financial projections are based on the following decisions/assumptions:-

1. The mine will be operated on 2 shift working basis from April 2016.

2. The existing manpower will be fully utilised for achieving the target level of productions.

3. Proper training will be imparted to surplus personnel so that they can be gainfully utilised to handle productive machineries.

4. No fresh capital will be required to be infused immediately to achieve higher productions. After a year or so, few machineries may be required to be replaced by new ones but those can be financed by internal cash surplus/external borrowings.

5. The Company can accumulate some fund by surveying –off and selling certain outlived parts, tools, engine parts etc.

6. The profitability can also be improved further by purchasing lime stone from local sources at a lower cost but that option has not been considered in the financial projections.

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The projected profitabilities have inbuilt provision for escalation in input costs but do not take into account any escalation in export price, which has been taken at USD 11 per tes.

The mine has the potential to give reasonable return and remain a viable unit for next 5 years and even after that with proper control and maintaining good business relationship with CCCL of Bangladesh.

SL NO. PARTICULARS 2013-14 2014-15 2015-16 2016-17 2017-18

Projected production(MT) in leasehold 1 area 80749 74400 125000 150000 150000

Purchase from local 2 source(MT) 0 0 0 0 0

Total 3 Production(MT) 80749 74400 125000 150000 150000

Total Dispatch to CCCL of 4 Bangladesh(MT) 80749 74400 125000 150000 150000

Total Man 5 power 152 145 140 140 140

6 No of shifts 1 1 2 2 2

No. of working 7 days in a year 310 310 310 310 310

Cost of production

A Variable cost

Breaking/Sizing 1 cost 64.50 54.5 86.57 103.88 105.96

Drilling & 2 Blasting 46.35 37.5 68.66 70.03 71.43

3 Loading & 34.97 31.00 55.17 66.21 67.53

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Transportation upto Ropeway

Diesel & Lubricants for utility veh. & other 4 consumptions 26.50 24.71 47.7 57.24 57.81

Salary/wages of 6 casual workers 5.50 4.75 1.5 1.55 1.59

Sub-Total(1-7) 177.82 152.46 259.60 298.91 304.33

8 Royalty 50.87 46.872 78.75 94.50 94.50

9 Mineral Cess 16.15 14.88 25.00 30.00 30.00

10 Toll Tax 8.07 7.44 12.50 15.00 15.00

11 Mines Rent 13.39 13.392 22.5 27.00 27.00

Sub-Total(8-11) 88.49 82.584 138.75 166.5 166.5

Total Variable cost-A 266.31 235.04 398.35 465.41 470.83

B Fixed Cost

12 Salary & Wages 259.35 262.00 267.24 272.58 278.04

Other Administrative 13 Expenses 73.50 73.50 75.71 77.22 79.54

Consumption of 14 Electric power 9.00 9.5 10.00 10.2 10.40

15 Depreciation 16.14 16.0 16.00 16.00 16.00

Bank charges(LC, Negotiation, bill cristallization 16 etc) 14.20 12.50 11.5 11.62 11.73

Sub-Total B(12- 14) 372.19 373.50 380.45 387.62 395.71

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Total Cost of C Production(A+B) 638.50 608.54 778.80 853.03 866.54

Earning from Export(Rs Lac) @ USD 11/mt(Rs 60=1 D USD) 569.20 503.32 825.00 1006.50 1014.75

Profit/Loss(Rs E Lac) -69.30 -105.23 46.20 153.47 148.21

% Return on F Export(Sales) -12.17 -20.91 5.60 15.25 14.61

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CHAPTER – 9

ANALYSIS OF PROPOSAL AND RECOMMENDATION

On analysis of financial projection of the year since year 2013-14 to year 2017-18, for the production of 80749 tes in the year 2013-14 & 74400 tes in the year 2014-15. There is profit of Rs. -69.30 lacs in the year 2013-14 and Rs. -105.23 lacs in the year 2014-15 & Rs. 148.21 lacs in the year 2017-18.

In addition to financial profit, the Company plays an important role in improving the social economic standard of local people. Directly or indirectly about 2000 local people (tribals) are benefitted from this Company living on both sides of Meghalaya and international border of Bangladesh.

Moreover Komorrah Limestone Mining Co. Ltd. (KLMC) is a joint venture company between Meghalaya Industrial Development Corporation Ltd (MIDC) a Government of Meghalaya Undertaking and Development Consultants Pvt Ltd. (DCPL), Kolkata. This mine is operated under a long term agreement with Bangladesh Chemical Industries Corporation (BCIC), a Government of Bangladesh for supply of limestone to their Chhatak Cement Co. Ltd. (CCCL) at Chhatak Sunamganj District of Bangladesh.

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