Pre-Feasibility Report Lunghar Chromite Mines Village

Revised Pre-Feasibility Report with Appendix -1

Pre-Feasibility Report

Lunghar Chromite Mines Village: Shirohi-Lunghar, Ukhrul District, Manipur Mining Lease Area: 132.781 ha. Production Capacity: 10531 tons per annum

M/s Sarvesh Refractory Private Ltd. (SRPL) Power House Road, Rourkela 769 001, Odisha

SIROHI –LUNGHAR CHROMITE MINES SRPL 1 CONTENTS

1 EXECUTIVE SUMMARY 1

2 INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION 3

2.1 OVERVIEW 3 2.2 LOCATION 3 2.3 Figure 1.1: Mine Location Map Toposheet 5 2.4 GEOLOGY AND RESERVE 6 2.4.1 Geology 6 2.4.2 Geological Reserve 6 2.4.3 Grade 7 2.4.4 Production Capacity & Life of the Mine 7 2.5 EXPLORATION 7 2.6 USE OF MINERALS 7 2.7 EMPLOYMENT POTENTIAL 8 2.8 PROJECT COST 8

3 PROJECT DESCRIPTION 9

3.1 MINING 9 3.1.1 Mining during Plan Period 9 3.1.2 Mining during Conceptual Period 9 3.2 EXTENT OF MECHANISM 10 3.3 MINE WASTE MANAGEMENT 10 3.3.1 Waste Generation 10 3.3.2 Waste Dump & Management 10 3.4 DRILLING & BLASTING 10 3.5 MINE DRAINAGE 10 3.6 LAND USE 11 3.7 MINED OUT LAND AND MINE CLOSURE 11 3.8 WATER REQUIREMENT & SOURCING 11 3.9 GREENBELT & AFFORESTATION 11 3.10 FACILITIES 12

4 EXISTING ENVIRONMENT, POTENTIAL IMPACT & MITIGATION MEASURES 13

4.1 LAND ENVIRONMENT 13 4.1.1 Land Use 13 4.1.2 Soil Quality 13 4.2 AIR ENVIRONMENT 13 4.3 NOISE ENVIRONMENT 13 4.4 WATER ENVIRONMENT 14 4.4.1 Drainage & Surface Water Quality 14 4.4.2 Hydrology & Ground Water Quality 14 4.5 ECOLOGY & BIODIVERSITY 14 4.6 SOCIO-ECONOMIC ENVIRONMENT 15

SIROHI –LUNGHAR CHROMITE MINES SRPL 2 1 EXECUTIVE SUMMARY

The mining lease area over 132.781 ha has granted mining lease in favour of M/s Sarvesh Refractory Pvt. Ltd., is situated in villages Sirohi and Lunghar under Ukhrul district of Manipur. The ML area is featured in the toposheet No. 83 K/8. The granted lease is bounded between

ML Boundary Latitudes Longitudes A 25° 09’ 52.35’’ N 94°28’ 10.67’’ E B 25° 09’ 00.36’’ N 94°28’ 14.67’’ E C 25° 08’ 59.36’’ N 94°27’ 47.67’’ E D 25° 09’ 51.35’’ N 94°27’ 43.67’’ E

The ML area is devoid of any forest land or agricultural land; entire land is categorised as unclassed Govt. land.

The Geological Proved reserve of exposed ore bodies is estimated to be 1134 tonnes. The geological probable reserve of float ore zone is estimated to be 91674 tones. Therefore total demonstrated reserve (Proved and Probable reserve) is 92,808 tones. The total mineable reserves is 92,808 tones.

The production capacity of the mine is 10531 tons per annum. Based on current exploration data, the life of the mine is 9 years.

During plan period, 33552 m3 of mine overburden and inter-burden will be generated. During conceptual period, 37588 m3 of mine overburden and inter- burden will be generated.

The waste dump site is selected on the south-west side of the ML area, which barren and spread over 2.0 ha. The height of the dump during proposed plan period will be 5m and overall slope of 28°.

Total ML area is 132.781 ha and entire area is unclassed Govt. land. During the plan period 10.10 ha and during conceptual period 29.20 ha land will be used for various mining purpose.

It is proposed that at the end of 5 year plan period 5.10 ha and 10.19 ha at the end of conceptual period will be degraded for quarry purpose. The mined out area will be reclaimed, once it is proved no ore will occur below UPL. In case ore occurs below UPL, mining will be continued till it is proved that no ore shall be continued. At the end of life mine, the broken up area will be reclaimed and rehabilitated.

SIROHI –LUNGHAR CHROMITE MINES SRPL 1

The average water requirement is 6.5 KLD and peak demand is 10.25 KLD. Water will be sourced from ground water.

About 48 miners are proposed to appointment. Apart from 19 numbers of personnel is also required for this mine.

The safety zone around the ML area and dead end of the OB dump will be utilised for plantation. It is proposed to plant of 4.005 ha land and 6408 sapling in the Plan period.

Project Cost is estimated to be 20 crores during Plan period.

SIROHI –LUNGHAR CHROMITE MINES SRPL 2 2 INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION

2.1 OVERVIEW

M/s Sarvesh Refractory Private Limited (SRPL) was established in the year 1993. It has set up modern facilities of manufacturing for procurement of powder from mineral, ferrous and non-ferrous metals and its slag, processing, calcining, reducing, amalgamating, dressing, refining, composing all types of minerals and minerals rejects to make them marketable and usable as industrial raw materials. It has present manufacturing capacity of 69,500 tonnes per day.

M/s Sarvesh Refractory Private Limited had applied for grant of Mining Lease for Chromite over 132.781 ha situated in village Shirohi-Lunghar in Ukhrul district of Manipur State. The State Government has issued approval vide letter No. 43/11/2006-Com & Ind dated 30/08/2007 with the prior approval of the Central Government vide letter No. 5/93/2006-MIV dated 10/08/2007, issued its previous approval, in favour of the M/s Sarvesh Refractory Private Limited under sub-section (1) of section 5 of the Mines and Minerals (Development and Regulation) Act, 1957 and rule made thereunder for grant of a mining lease.

M/s Sarvesh Refractory Private Limited has completed the conditions specified under Govt. approval Letter no. 43/11/2006-Com & Ind dated 30/08/2007 and Ministry of Mines, Govt. of India order No. S.O 27 (E ) dated 4/1/2017 without submission of Environmental Clearance (EC).

Thereafter, the Director of Trade, Commerce & Industries has issued a letter No. D(5)-65/IND/2005 (Pt) dated 4/8/2018 to M/s Sarvesh Refractory Private Limited for grant of Mining Lease. M/s Rourkela Minerals Company Private Limited has submitted the a Performance Security as specified in the letter no. No. D(5)-65/IND/2005 (Pt) dated 4/8/2018.

M/s Sarvesh Refractory Private Limited has signed the Deed for Grant of Mining Lease from Director of Trade, Commerce & Industries, Government of Manipur on 23.02.2019. (Refer Annex-1 Deed for Grant of Mining Lease).

2.2 LOCATION

The 132.781 ha mining lease is located in Shirohi-Lunghar village, in Ukhrul district of Manipur State and is featured in Topo-sheet No. 83 K/8. The coordinates of the ML is as follows (Refer Map Figure-1):

SIROHI –LUNGHAR CHROMITE MINES SRPL 3

The ML area is approximately 103 km by road from Imphal. The nearest town is Ukhrul about 23 km from the ML area. The nearest railway station is Dimapur, is about 280 km the ML area.

SIROHI –LUNGHAR CHROMITE MINES SRPL 4 2.3 Figure 1.1: Mine Location Map Toposheet

SIROHI –LUNGHAR CHROMITE MINES SRPL 5 2.4 GEOLOGY AND RESERVE

2.4.1 Geology

The major part of the area is covered with ultramafics of ophiolites suite comprising dunite, harzburgite, serpentinised harzburgite, pyroxinites and chromite. The litho units runs in north-south to north north-est- south-south west direction. Sporadic pots and pockets of massive nodular spotted and disseminated chromite ore present within the ultramafics. All the varieties of chromite ore occur together in the host rock of serpentinised harzburgites.

The chromite occurrence in the area is in the form of pods and lenses being found in the horzburgites and dunites which have undergone various degree of serpentinisation. The podiform deposits within ultramafics area erratic in distribution pattern and their depth persistence is irregular but with sharp contact with host rocks.

The chromite mineralization in the form of pods, pockets and lenses is confined to an area measuring 1000m long and 600 m wide in the phangari hill as exposed on the surface. Broadly, three different modes of occurances of ore found, as follows:  Massive ore associated with harzburgite in shape of pods and angular blocks;  Nodular ore; and  Friable and disseminated ore.

Massive ore are found in the mid slope and on the ridge of Phangrai in association with minor nodular and disseminated ore. Nodular and friable ore occurs on the top of the hill ridge as well as the mid slopes.

The initial geological exploration study reveals that Hard Lumpy and Massive Ore (HLMO) trending NNE-SSW over a strike length of 100m close with an average width of 5-7 m. HLMO of different sizes with perfect orientation, indicates that the ore may continue for few meters in depth ward direction and similar patches can be traced out elsewhere within or outside the area. Recovery of refractory grade (HLMO) is almost 90%. The thickness of HLMO will be about 10m. The float chromite ore with a thickness of 0.5 to 1.5m having recovery of 30% has also been encountered during course of geological mapping of the area.

2.4.2 Geological Reserve

The Geological Proved reserve of exposed ore bodies is estimated to be 1134 tones. The geological probable reserve of float ore zone is estimated to be 91674 tones. Therefore total demonstrated reserve (Proved and Probable reserve) is 92,808 tones.

SIROHI –LUNGHAR CHROMITE MINES SRPL 6 Mineable Reserve

Proved and probable reserves of chromite ore both are considered as mineable reserve, because:  The safety zone (7.5 m along the ML boundary) does not affect the mine working;  Sufficient place towards all sides of the probable zone limit is vacant to find place at outer limit of the pit/quarry that shall be worked to raise ore;  Bench slope can be maintained safety.

2.4.3 Grade

The grade of Hard Lumpy Massive Ore (HLMO) varies from 42% to 58%

Cr2O3, whereas, lower grade ore also be available and varies from 30% to 42%

Cr2O3.

2.4.4 Production Capacity & Life of the Mine

The targeted production capacity of the mine is 10531 tons per annum. Based on current exploration data, the life of the mine is 10 years.

2.5 EXPLORATION

From mineralization point of view, it is observed that the chromite pods are approximately emplaced along the north-south direction coinciding the general trend of host rock as well as the lineaments, passing through the area. Keeping these features in view, the further exploration has been proposed:  Cross trenches: 16 no. of cross trenches- (10 m length x 6 m width x 6 m depth)  Bore holes: Planned at 200m x 200m grid interval and bore holes to be drilled up to 50 m depth. 12 bore holes planned during plan period.

2.6 USE OF MINERALS

Refractory is a product which is hard to work with, and are especially resistance to heat and pressure. The products are used for high temperature insulation and erosion/ corrosion and made mainly from non-metallic minerals. The principal application of Refractories are steel industries, cement, glass, non-ferrous metals, petro-chemicals and fertiliser industry, chemical, ceramics and even thermal power station and incinerators.

Various types of Refractories presently manufactured in India for application in different industries. Those main items are Basic Refractories, High Alumina and Allied Refractories, Insulation Bricks, Monolithics, Gunning Mixes, ramming Masses, Refractory Plastics, etc.

Chrome Magnesite is a basic refractory product. The range of general purpose varieties is suitable for back up application, reheating furnace and other non- ferrous industries.

SIROHI –LUNGHAR CHROMITE MINES SRPL 7

The chromium ore will be utilised in the refractory industries. The wide spectrum of sophisticated Refractories is being produced in the Sarvesh Plant (a sister concern of ROMOCO) at Kuarmunda of Sundergarh District of Odisha. Major consumers in India are the following to whom Sarvesh supplies Refractories manufactured for which chrome ore is raw material.  Magchrome Dunite for Ladle Safety lining- Alloy Steel Plant Durgapur, Essar Steel, Surat and Usha Martin Industries, Jamshedpur;  Direct Bonded Magchrome Bricks for LD Permanent Lining- Bhilai Steel Plant, Bhilai  Chrome-Magnesite (Sc) Bricks for EAF- GontermannPeipers (I) Ltd., Field Gun factory, Kanpur, Haryana Steel & Alloys, Murthal.

2.7 EMPLOYMENT POTENTIAL

Considering highest excavation including HLMO from the mines is in the 4th year, i.e. 11550 m3, 300 working days in year, 38.5 m3 materials will be handled daily. Keeping output per man shift at 0.8 m3 per day, about 48 miners are proposed to appointment. Apart from 19 numbers of personnel is also required for this mine.

2.8 PROJECT COST

Project Cost is estimated to be 20crores during Plan period.

SIROHI –LUNGHAR CHROMITE MINES SRPL 8 3 PROJECT DESCRIPTION

3.1 MINING

The operation of mine will be fully manual by opencast method of mining with an objective to produce 10531 (maximum) tones per annum. Dumper/ trippers will be utilized for shifting ore and overburden to respective sites. Drilling and blasting will be conducted to dislodge the OB and ore body. The sizing of ore will be done through manually or by secondary blasting. Shorting and loading will be manually. Ore will be dispatched through trucks. On the exposure

3.1.1 Mining during Plan Period

There are eight exposures of chromite ore, towards east and central zone of the Ml area, numbered as 1 to 8. It has been proposed to mine on the exposure number 1 to 8 and 8 during the 5 year Plan period. It is also proposed to go down 3m below the surface, up to which chromite ore is expected to continue.

The targeted annul production is 10531 tons. The total ore will be produced during plan period is 44044 tons and production varies from 7309 tons (1st year) to 10531 tons (4th year). The average striping ration is 1: 0.76. The year wise production details are as follows:

Table-2.1: Year wise production details during Plan period

Year No. of Length & Width Volume of Quantity of Volume of Benches of Quarry ROM (m3) Ore (tons) waste (m3) 1st 1 100 m x 80 m 2441 7309 5593 2nd 1 100 m x 80 m 2468 7381 5590 3rd 1 100 m x 100 m 3054 9144 6992 4th 1 115 m x 100 m 3518 10531 8039 5th 1 105 m x 100 m 3236 9679 7338

3.1.2 Mining during Conceptual Period

Presently with geological mapping of the area, 8 nos. of lensoid pocket deposits of chrome ore with float ore surrounding these have been established with proved depth of 3m from surface level for the float ore zone. Based on these information conceptual mining has been prepared. Further exploration has been proposed during plan period, all probability, further knowledge about deposit and accordingly conceptual mining plan will undergo changes as required, which will be submitted in the subsequent mining scheme. The conceptual mining information is provided in following table.

SIROHI –LUNGHAR CHROMITE MINES SRPL 9 Table-2.2: Conceptual Mining Details

Year No. of Length & Width Volume of Quantity of Volume of Benches of Quarry ROM (m3) Ore (tons) waste (m3) Conceptual 1 350 m x 290 m 16178 50581 37588 period

3.2 EXTENT OF MECHANISM

The mine will be totally manual with deployment of 2 numbers dumper/ trippers (10 tons), 2 tractors mounted compressors, 4 jackhammers, one water tanker (10 Kl) and 2 jeeps.

3.3 MINE WASTE MANAGEMENT

3.3.1 Waste Generation

During plan period, 33552 m3 of mine overburden and inter-burden will be generated. During conceptual period, 37588 m3 of mine overburden and inter- burden will be generated.

3.3.2 Waste Dump & Management

The waste dump site is selected on the south-west side of the ML area, which barren and spread over 2.0 ha. The height of the during proposed plan period will be 5m and overall slope of 28°. The dump can accommodate 2.0 lakh m3 waste materials up to 10 m height. During conceptual period, the area of the dump will be 14 ha.

Retaining wall and garland drain around the dump site will be provided to prevent wash off from the dump. Catch drain in individual terraces will be provided to prevent gully formation and each catch drains will be connected to garland drain. A sedimentation tank will be provided to arrest the sediments. In course of time, dead end of the dump will be utilised for plantation.

3.4 DRILLING & BLASTING

Chrome ore body need to be dislodged from the benches by drilling and blasting prior to excavation and loading. The most common types of explosive, i.e. slurry and booster charge and ammonium nitrate, aquadine, superdyne, fuel oil mixture (ANFO) will be used in mines. A portable magazine of 50 kg capacity will be installed in the lease area.

3.5 MINE DRAINAGE

The proposed mine is situated on hilly terrain. There is perennial nala passing in and around the ML area. Three seasonal nala is passing through the ML area. However, the proposed mining activity will not affect as the mine working zone is far away from nala.

SIROHI –LUNGHAR CHROMITE MINES SRPL 10 The proposed mine will not cut the ground water and water level is much below ultimate working table.

To control the rainwater, catch drains are planned around the waste dump and quarry. Rain water will be diverted to sedimentation tank. After treatment, water will be discharged into the local nala.

3.6 LAND USE

Total ML area is 132.781 ha and entire area is unclassed Govt. land. During the plan period 10.10 ha and during conceptual period 29.20 ha land will be used for various mining purpose. The land use break up is provided in table below:

Table 2.3: Proposed Land Use Land use Plan Period (ha) Conceptual Period (ha) Area under mining/quarry 5.10 10.20 Storage of top soil 0.00 0.00 Waste dump 2,00 14,00 Mineral storage 1.00 2.00 Infrastructure with magazine 1.00 1.00 Roads 1.00 2.00 Sub-total 10.10 29.20 Safety zone 3.505 3.505 Undisturbed area 119.176 100.076 Total 132.781 132.781

3.7 MINED OUT LAND AND MINE CLOSURE

3.8 WATER REQUIREMENT & SOURCING

The average water requirement is 6.5 KLD and peak demand is 10.25 KLD. Water will be sourced from ground water.

3.9 GREENBELT & AFFORESTATION

The safety zone around the ML area and dead end of the OB dump will be utilised for plantation. Year wise planation details is provided in the following table. Table 2.4: Year wise Plantation details Year Location Area (ha) No. of trees to be planted 1st Safety zone 0.700 1120 2nd Safety zone 0.700 1120 3rd Safety zone 0.700 1120 4th Safety zone & dump 0.700 1120 5th Safety zone & dump 1.205 1928 Total 4.005 6408

SIROHI –LUNGHAR CHROMITE MINES SRPL 11

3.10 FACILITIES

The ML area is well connected by the road. Market, postal, medical, schooling, etc. are available in the Ukhrul, about 30 km from ML area. Statutory and essential infrastructure like rest shed, blasting shed, first aid centre, crèche , canteen, latrine/urinal for both male and female workers, drinking water facilities, etc will be provided within the ML area

SIROHI –LUNGHAR CHROMITE MINES SRPL 12 4 EXISTING ENVIRONMENT, POTENTIAL IMPACT & MITIGATION MEASURES

4.1 LAND ENVIRONMENT

4.1.1 Land Use

The total mining lease is 132.781 ha; and entire land is unclassed Govt. land. During plan period, approximately, 10.10 ha and during conceptual period, 29.20 ha of land will be utilised for various mining purposes.

The mined out land will be progressive reclaimed and rehabilitated by backfilling and same will be utilised for plantation purposes. OB dump will be stabilised and same will be utilised for plantation.

4.1.2 Soil Quality

The soil in this area ranges from brown to reddish brown in colour; while the texture ranges from clayey loam to loam. The pH ranges from 6.16 to 9.53. The soil is porous with sufficient water holding capacity to support plant growth. The organic matter content is high.

4.2 AIR ENVIRONMENT

There is air polluting industries in the study area. The sources of air emission are fugitive emission from road and emission from traffic, fuel wood burning and jhum-cultivation (burning of vegetation).

During mining activity, fugitive dust is likely to be generated from drilling, blasting, excavation, loading & unloading of ore and mine waste and vehicular movement in the haul road.

The fugitive dust emission will be controlled through periodic water sprinkling in the mine haul road. The greenbelt in the safety zone will be developed.

4.3 NOISE ENVIRONMENT

There is no noise generating industries in the study area. The major source of noise is traffic noise in the main road.

The potential impact on noise quality is due to drilling & blasting, and movement of vehicles in the mine.

The maintenance of vehicle and greenbelt in the ML area will minimise the noise impact.

SIROHI –LUNGHAR CHROMITE MINES SRPL 13 4.4 WATER ENVIRONMENT

4.4.1 Drainage & Surface Water Quality

There is no perennial stream within the ML area, however, three seasonal nalas area passing through the ML area. The proposed mining activity will not affect these nalas.

The surface runoff from waste dump site and mined out area is potential to impact on receiving surface water bodies.

The runoff water from dump will be diverted to sedimentation tanks through catch drains and garland drain. The suspended solid will be settled in the sedimentation tank, after that water will be discharged into the nala. There will be no contamination of hexavalent chromium (Cr+6) on the surface water runoff from the mine and that flowing over the dumps since the ore to be raised is lumpy in nature.

4.4.2 Hydrology & Ground Water Quality

In this area, ground water occurs under unconfined conditions in the mantle. The aquifers area mainly composed of peridotite rocks. The harzburgite and ophiolites are not very much porous in nature. Therefore, water catch within the crack are not enough.

The proposed mine will not intersect the aquifer. The ground water pollution in the mining areas either due to percolation or precipitation is not likely to occur, because possible control measures shall be taken for checking possible water pollution. The contamination of hexavalent chromium (Cr+6) on the ground water regime will not be there due to lumpy nature of the ore to be raised.

4.5 ECOLOGY & BIODIVERSITY

The peak is part of Shirui – Kashong range which is 2570 m in height and has a habitat of rare and endangered species of lily called “Siroy Lily” (Lilium mackliniae) which is locally called Shirui kashung Timrawon or Shirui lily in Manipuri. Siroy Lily habitat is approximately, 4.5 km (aerial distance) from the ML area. There is no ecologically sensitive habitat like National Park, Wildlife Sanctuary within 10km radius of the ML area.

The ML is situated in the unclassed Govt. land, there are few tress within the ML area, mainly bushes and grasses are seen in the ML area.

The clearance of vegetation may have impact on flora of ML area and generation of dust and deposition in the nearby area may have impact on vegetation. Noise and vibration due to mining activity may have impact on local fauna,

SIROHI –LUNGHAR CHROMITE MINES SRPL 14 The development of greenbelt in the safety zone and dead end of OB dump, dust suppression and noise mitigation measures will be taken to minimise the impact on ecology & biodiversity of the area.

4.6 SOCIO-ECONOMIC ENVIRONMENT

There is no settlement within the ML area. There are small villages in the study area. There is no R&R issue due to proposed mining activity.

Due to proposed mining activity, some direct employment and job opportunity will be created. The lessee will do the CSR activity in the nearby villages as per Govt. norms.

SIROHI –LUNGHAR CHROMITE MINES SRPL 15

ANNEXURE 1

MINING LEASE AND MINE DEVELOPMENT & PRODUCTION AGREEMENT

Appendix -1: Letter from Directorate of Commerce and Industries granting lease of Lunghar Mines to Sarvesh Refractory Private Limited