PRE FEASIBILITY REPORT PROJECT: VIBHUTI GUDDA IRON ORE MINE (Extent : 79.37 Ha.) BELAGAL VILLAGE, BELLARY TALUK, BELLARY DIST., KARNATAKA. PROPONENT M/s. VIBHUTIGUDDA MINES Pvt. Ltd., BELLARY, KARNATAKA. Consultant MINERAL ENGINEERING SERVICES Mining & Environmental Engineers 25/XXV, Club Road, Bellary – 583 103. Karnataka
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PRE FEASIBILITY REPORT
PROJECT: VIBHUTI GUDDA IRON ORE MINE (Extent : 79.37 Ha.)
BELAGAL VILLAGE, BELLARY TALUK, BELLARY DIST., KARNATAKA.
PRE-FEASIBILITY REPORT FOR VIBHUTI GUDDA IRON ORE MINE (VGIOM) (ML No. 2469) OF M/s. VIBHUTI GUDDA MINERALS PVT., LTD., SITUATED IN BELAGAL VILLAGE OF BELLARY TALUK & DISTRICT,KARNATAKA STATE.
(AS PER LETTER NO: J-11013/41/2006-IA.II(1) DATED : 30.12.2010) 1. Executive Summary:
Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of M/s. Vibhuti Gudda Mines Pvt.
As per the National Steel Policy, 2005 the total demand of iron ore is placed at 290
million tonnes including 190 million tonnes for domestic consumption & 100 million
tonnes for export by 2019-20. The current mining capacity of iron ore in the country is
around 160 million tonnes. This capacity can be enhanced, through consolidation of
leases, mechanised mining operations in Karnataka area and improvement in the
operating capacity of existing mines in other states
At present about 20 mines are being operated in Bellary-Hospet sector including 2
mines of NMDC and the cumulative production is about 15 MTPA. The demand for
iron ore for steel making and other metallurgical industries in this sector requires about
50 million tonnes of iron ore which requires proper planning keeping in mind the
environmental safeguards.
(v) Imports vs. Indigenous production,
India has emerged as the fourth largest miner and the third largest exporter of iron ore.
India has currently estimated iron ore resource of 25 billion tonnes. The Iron Ore & Steel
Derivatives Association IOSDA expects India to definitely strengthen its position as a
major ore producer. However, it foresees moderation in iron ore exports from India
going forward. With a number of steel projects coming on stream in the next one year,
IOSDA anticipates a steep increase in internal demand for iron ore. It also opines that
India needs to invest in infrastructure in order to develop the industry from a long term
perspective.
(vi) Export Possibility.
While Ministry of Steel is very much vocal against the export of iron ore in order to
support the domestic steel industry, exporters have a strong case in defense. According
to them, steel majors like Tata Steel and Sail have their own captive resources. Others
are getting ore from domestic miners. Indian iron ore production has always been
higher than the steel mill’s capacity to consume. Besides, surplus remains even after
exports. However, presently the Honorable Supreme Court of India so far not permitted
the export of iron ore from Karnataka. From Bellary-Hospet sector there will be
shortage.
(vii) Domestic / export Markets
Following the ban on mining in Karnataka, recent closure in Goa and very high export
duty of 30% coupled with higher freight rates on iron ore meant for exports by the
Railways, iron ore exports have come down sharply during the current year
According to Federation of Indian Mineral Industries (FIMI), India’s iron ore exporters
have declined 62.33% to 15.05 million tonnes during the first eight months of the current
fiscal (April-November 2012) as against 39.95 million tonnes exported in the same
period last fiscal. Since November, there have been no exports from the country.
However, the steel industry expects the availability of iron ore to further come down in
the next financial year (2013-14) due to several constraints in many iron ore producing
states.
In Karnataka, while the Supreme Court has permitted resumption of mining by
Category A & B mines, only twenty mines have restarted mining in the last few days.
These mines have so far produced @ 11 mtpa including two mines of NMDC. Whereas
the Monitoring Committee has not put on auction this ore due to certain reasons.
The FIMI expects the production of iron ore in Karnataka at about 15 million tonnes
during 2013-14 assuming some more mines in Category A and B resume mining. This
would include about 8 million tonnes from NMDC. This means that the steel industry
would end up getting only half of its present requirements and all the steel mills
operating in India might have to import iron ore or else shut down their operations.
According to Barclays Research, India’s iron ore production is likely to fall at a
Compound Annual Growth Rate CAGR of 3.8% over FY12-15 even as the demand is set
to grow at 8% during the same period, positioning India as a net importer (ex-Goa) of
iron ore from being the third-largest player in the global seaborne market as recently as
2011.
(viii) Employment Generation (Direct and Indirect) due to the project.
This mine shall provide employment for about 50 people by both direct employment
which include mine officials, skilled, semi skilled and unskilled labour and indirect
employment, in contractual works for the local villagers.
3.Project Description
(i) Type of project including interlinked and interdependent projects, if any.
Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of lease area of 55 ha and Belagal
Iron Ore Mine (BIOM) (ML 80) of 5.67 ha both in forest land are situated at Survey No.
90(P) of Belagal village in Bellary Reserved Forest adjoining each other are being
worked by the same mine owner. Both the leases are having a single common pit with
common boundary working permission. The mine was closed along with all other iron
ore mines of Bellary District in July 2011 as per the orders of Honorable Supreme Court
of India. Central Empowered Committee, in its report dated 28th March, 2012 submitted
to Hon’ble Supreme Court, had listed ML 2469 and ML 80 at entry no. 3 & 4 in R-10
(category ‘B’). As per the Central Empowered Committee (CEC) appointed by the
Honorable Supreme court of India directives, joint survey of lease boundary
demarcation was carried out in the presence of officials from Dept. of Mines & Geology
and Forest Department. Subsequently, the boundary pillars are demarcated,
constructed, painted and also Lease Name, Number and GPS Reading have been
marked on the Boundary Pillar as per the Dept. of Mines & Geology Mahazar Report.
These three leases (ML 2469, ML 80 & ML 1082). were listed under one row together
and the amalgamated lease has been shown as 79.37 ha (total of the individual lease
areas, i.e. 55.00 ha (ML 2469) + 5.67 ha (ML 80+18.7 Ha (ML 1082) = 79.37 Ha.
(ii) Location (map showing general location, specific location, and project boundary
& project site layout) with coordinates.
ML is located towards South West from Bellary town and is at a distance of about 12 km
and 2.50 km from the Bellary–Tumati Road. The nearest Railway station is Bellary
Cantonment Station at a distance of 18 km Bellary district, Karnataka. The Vibhuti
Gudda Iron Ore Mine (VGIOM) ML 2469 is bounded by (WGS 84). Toposheet No. 57
A/16.
Longitude: E76°48' 33.7" - 76° 49' 57.7";
Latitude: N 15° 05’29.2" - 15° 05'57.8" (WGS 84)
Joint survey of boundary demarcation of ML 2469 of Vibhuti Gudda Iron Ore Mine is as
per the Honorable Supreme Court approved sketch. The Vibhudigidda mine lease area
is surrounded by the ML of M/s. Gavisiddeswara Enterprises ML No 80 along the West
belonging to the same owner with common boundary workings, ML No 1082 of M/s
Karnataka Minerals along the North and forest areas along the East & south.
The DGPS values of boundary pillars for the amalgamated mining lease and GCPs are
given as under:
Location of the lease M.L. No. 2469 of Vibhuti gudda Minerals Pvt. Ltd. from the point
of accessibility, Taluk and District Head Quarter, and other infrastructure is shown on
Location Plan enclosed as Plate No. 1. The surface plan of the area demarcating the ML
boundary is furnished under Plate No. 2.
(iii) Details of alternate sites considered and the basis of selecting the proposed site,
particularly the environmental considerations gone into should be highlighted.
Iron ore mining is site specific. This lease is under active mining operation since 1954.
The same lease renewed upto 06.04.2014 and has reserve of 11.021 m.tonnes as on 2006.
The lease is located on the hill top where the reef runs along with run of the hill range.
(iv) Size or magnitude of operation.
The mine shall work with single day shift. The single pit is located in the middle of the
mine lease area running from NNW-SSE direction along the strike direction of the ore
body. There is a single reef deposit with an average width of 20m. The benches have
been formed with an average height of 9m and width of ~10m with an inclination of 80°.
An annual production of only 0.064 mtpa has been approved by CEC and the waste
generation will be of the order of 0.228 mtpa with ore to waste ratio of 1 : 3.57. This
mine had E.C. quantity of 0.275 mtpa.
(v) Project description with process details (a schematic diagram/ flow chart showing
the project layout, components of the project etc. should be given)
The area is in the southernmost part of Belagal Range in the Copper Mountain region of
famous Sandur Schist Belt. The Sandur Schist belt is one of the Dharwar type
Precambrian belts in the Karnataka. This is the smallest of the three basins and covers an
area of just 960 sq. km. It is structurally highly disturbed and squeezed out of shape by
the intrusion of younger granites. Shale faces as in the other basins is confine to the
western margin. Well-developed mafic magmatism and strong development of
manganiferous greywacke, Phyllite and numerous bands of banded hematite quartzite
(BHQ) characterize the basin. The basin is known for its rich accumulation of both iron
and manganese ores. Basement cover relations are obscured because of intense
deformation and intrusion by younger granites. The Sandur Schist Belt has a lens-
shaped geometry of about 60-km long, with a maximum width of 28 km in the central
part. Four formations have been distinguished in this basin: Amongst Yeshwantnagar,
Deogiri, Donimalai and Nandihalli Formations, the Yeshwantnagar formation is largely
composed of Volcanic flows; Green Schist, Metabasalt, etc.
The general sequence of rock formations found in the area is as given below:
• Soil
• Iron ore reef
• Shale / Phyllite
• BHQ
The general strike of the ore body is NW-SE while the dips vary from 85°-87° towards
NE. The quality of iron ore is 63-67 % Fe and is massive in nature and is bounded by
ferruginous shale and phyllite in hangwall and footwall. The strike of the reef is 850 m
in NW and SE with average width of 25 m which diverts into two prongs in the SE part
of the lease. Geological plan is enclosed under Plate No 3.
One core drilling bore hole was drilled from an RL of 770 to a depth of 64m and also
three down the hole (DTH) to a depth of 30m from the present RL of 756m were drilled.
It is proposed to drill six more bore holes during the next plan period and additional
five core bore holes during the subsequent years to comply with the UNFC guidelines
totaling to 11 core holes at approximately 100m interval, all along strike length of the
ore body.
The reserves estimated by the lessee under the latest scheme of mining submitted to
IBM are as follows;
Category Total Tonnage
Proved 22,344,658
Probable --
Possible 30,377,167
Total 52,721,825
Further, In 2012-13 & 2013-14, 13 core bore holes Proposed in ML. No. 2469 & 80 have
already been drilled and as per core drilling data the enhanced mineable iron ore
reserves are estimated as 22 million tonnes of mineable iron ore reserves.
The Vibuthi Gudda Iron Ore Mine is being worked with mechanized opencast mining
method with a combination of hydraulic excavator and dumper truck. Deep-hole
drilling and controlled blasting is being carried out only on hard formation. The mining
method is by conventional open pit system, the single pit is extended by stages in all
directions with increase in depth of the working pit. Pit layout has been planned in such
a way that it provides maximum recovery of ore without dilution. There is a maximum
of 12 benches that have been developed in the mine area which includes one production
bench. The strike direction of ore body is NNW-SSE with a steep dip 88° to 89° towards
NE. The benching has started from the top of the hill and carried downwards. The
direction of the bench is along the strike. The height of 9m and width of ~10m with haul
road width being more than 10 m with gradient maintained at 1in16. Pit slope angle is
maintained at 45° and bench slopes are 80°. It is also ensured that, there is clear view of
the road ahead for longer distance and sharp curves obstructing sight for less than 30 m
distance are totally avoided. The mine faces are kept sufficiently long so as to expose
different grades of ore and create an access for easy blending to ensure uniform grade
desired for buyers. Pit floors are designed wide enough for required maneuverability of
heavy duty mining machinery deployed for the purpose. Before onset of monsoon,
drains are made along toe of the mine faces to divert the surface run off and prevent the
erosion of benches. The method of mining so practiced over the period of years is found
to be most appropriate and till date no premature failures have occurred at this mine.
The movement of ore and waste is through 10/17 tonnes capacity tippers. Ore is being
transported by road upto to the own railway siding situated at Obalapuram village
which is ~12kms from the mine.
Further, Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of lease area of 55 ha and
adjoining Belagal Iron Ore Mine (BIOM) (ML 80) of 5.67 ha leases are having a single
common pit with common boundary working permission. The single pit is located in
the middle of the mine lease area running from NNW-SSE direction along the strike
direction of the ore body. There is a single reef deposit with an average width of 20m.
The benches have been formed with an average height of 9m and width of ~10m with
an inclination of 80°. Details of this combined mining pit covering both the leases are
Maximum pit dimension (m)= 900x300, Number of benches = 18 (Towards South- 12)
(Towards North- 6), Top RL (m) is 870, Bottom RL (m) is 756, maximum depth is 114m
along the hill slope.
The annual production limit of 0.064 million tonnes is fixed by CEC for the combined
leases. Since the ML area ML 80 is very small 5.67 ha, the entire production of 0.064
MTPA of iron ore fixed by CEC, is taken as the annual production targets for Vibhuti
Gudda Iron Ore Mine (VGIOM) (ML 2469) and all the present proposals of production
for Vibhuti Gudda Iron Ore Mine is made based on the above said rated capacity of
0.064 million tonnes per annum.
The blasting in the mine is done with deep hole blasting and is restricted to hard
formations only, constituting about 30% of the material excavated. Semi hard
formations grading into softer ones are excavated by the hydraulic excavators. For
handling of ore stocks at mine-sites, wheel loaders are provided to keep in tune with
quantum of handling. For maintaining waste disposal sites dozers are in use. The wastes
generated are transported by 10/16 tonnes capacity dumpers. The Iron ore is fed to the
crushing & screening plant and crushed material will be supplied to the local steel
plants. 10/16 tonner hired tipper trucks were utilized for transportation to the own
railway siding of Obulapuram located about 12 km. Iron ore produced is sold locally.
Presently entire generated ore will be lifted from the mine by buyers through e-auction
and it will be sold local steel plants and sponge iron plants.. Iron ore produced is sold
locally. Presently entire generated ore will be lifted from the mine by buyers through e-
auction and it will be sold locally.
Blasting in the ore zone is done by using high explosives such as cast booster slurry
explosive in combination with ANFO. Normally the slurry cast boosters form 0.30% of
the required charge. Since ANFO mixture is low density explosive, it will have a
heaving effect than explosion, thus reducing the noise level, fly rock ejection. This shall
be blasted using detonating fuse or with nonels in conjunction with MS delay
detonators. This will reduce ground vibrations and fly rock ejection. The pattern of drill
holes shall be arranged in maximum of two rows in a staged manner using a spacing of
3 m and a burden of 2.5 m. The material to be handled is 960 tonnes per day and out of
this only 30% i.e. about 300 tonnes of material is required to be blasted per day or 1800
tonnes per week. The spacing and burden of blast holes shall be 3 m X 2.5m and with
9m depth of holes and average bulk density as 2.5, yield per hole is about 168.5 tonnes.
Number of holes blasted per week =1800/168.5 = 11. With charge per hole as 40 kg,
explosive requirement for week is 440 kg. Vibhuti Gudda Iron Ores Mines which is
having the licensed magazine of following capacity.
Category of explosives Name & Description
Class 2 Nitrate Mixture – 438 Kgs
Class 6 div 1 Safety Fuse – 100000 Mts
Class 6 div 2 Detonating Fuse - 1200 Mts
Class 6 div 3 Detonators - 10000 Nos
Mining Pit is designed maintaining an average pit slope of 32°. Slopes are designed
based on conditions of the strata and structural attitudes of both hanging wall and
footwall formations. The pit slope and the dip direction are in same direction along the
footwall, and are opposite along hanging wall side. Final pit limit is accordingly
defined.
The overburden waste mainly consists of shale, phyllite, gabbro and BHQ. The waste
generated is presently along the Eastern slope of the mining lease of Vibhuti Gudda
Iron Ore Mine (VGIOM) (ML 2469). As this dumping area is exhausted, ICFRE in their
approved R&R plan has suggested future waste dumping in adjoining Belagal Iron Ore
Mine (BIOM) (ML 80) of 5.67 ha, being worked by same owner, having common
workings. The overall stripping ratio considered based on the latest scheme of mining
prepared by the lessee is 1:3.57.
Existing land use pattern is that it is occupied by Pits & quarries -25.00 ha, Area for
active & Inactive dump -17.85 ha, Area for roads - 1.48 ha, Area for infrastructures - 0.40
ha, Others including retaining wall -1.77 ha, Untouched area for future exploration &
mining - 8.50 ha, Total 55.00 ha.
Final pit limit is, so drawn on the basis of exhaustive exploration carried out till date,
will more or less remain as ultimate pit limit for mineable reserve of Vibhuti gudda iron
ore mine (VGIOM) (ML 2469). It is demarcated on the Geological plan and enclosed as
Plate No. 3 Tentative Final Pit Layout with bench RLs marked on the Conceptual
Mining plan is enclosed as Plate No. 4.
Deep hole drilling is done for 9m depth with Wagon drill of 110mm dia, for which air
compressor of 450 CFM is provided.. Semi hard over burden formations grading into
softer ones are handled with hydraulic excavators of capacity 1.1 cum, with 5 numbers.
Requisite numbers of hydraulic excavators are separately deployed for ore production
to serve dual purpose of excavation and loading. For leveling and maintenance of waste
dumps. wheel loaders are used of 1.7 cum capacity, 3 numbers. The total handling
capacity of the loading units is more than adequate. For hauling, proposed quantities of
ore and waste, the requirement is met with a fleet of 12 nos. of heavy duty dumpers
with each 17 tones Capacity. List of mining machinery deployed in the mine along with
their respective capacities, efficiencies, availability, rate of handling and the total
quantity which individual units can handle and other details are given below. Please
note that the list of machineries mentioned below is already procured for the rated
production of 0.275 million tonnes of iron ore. With the present reduced production of
0.064 million tonnes of iron ore only they are of more capacity than the requirement.
Environmental Protection
The expected air pollution (Mainly dust release), water pollution (only sediments), noise
pollution including the ground vibrations due to this proposed mining activity are
minimal as mitigation measures such as regular water spray along the transport roads,
development of wide green belts surrounding mining area and along the safety barriers,
proper maintenance of roads and the mining machinery & equipment as per
manufacture’ norms, erection of check dams, retaining walls, are erected. Seasonal
monitoring on environmental quality parameters on air, noise, water & soil qualities
shall be done by engaging M/s. Mineral Engineering Services, Bellary, the Lab
recognized by MoEF.
The maximum dust generated during, drilling, blasting, excavation, crusher &,
screening equipment, loading & transport of ore & waste shall be about 9.44 kg/hr The
Suspended Particulate Matter (SPM) within the ML area is lowest (249 µg/cum) at mine
working area and maximum at dumping point (320µg/cum). Small quantity of dust
generated will settle on the nearby land out side ML area. This protected by developing
wide green belt surrounding the ML area. 5.0 KLD of diesel shall be used for running of
mining machineries such as Excavators, dozers, dumpers, DG sets. Emissions are SO2 &
NOx. Maximum quantities of SO2 & NOx observed were 20 & 22 µgm/cum
respectively.
The noise is produced from operation of drilling, blasting operation of loaders, dozers,
excavators, crusher &, screening equipment and movement of dumpers/tippers. The
noise level varied from 42 to 82 dB(A) within the mine area. The nearest place of
religious importance is a Gavisiddeswara temple along with a natural spring is
located about 1.6 km southern direction. The distance being large there shall be no
impact of the mine in terms of fly rock ejection, noise and ground vibration.
The annual rainfall varies from 350 mm to 650 mm with an average rainfall of 574.9 mm.
The pit is not likely to be filled in case of cloud bursts. Land slides could not occur if
systematic bench system is followed. No record of earth quakes is existing in the area.
The zone falls in category II.
Entire lease area is under forestland. The vegetation occurring in the area belongs to
Southern Tropical throny/scrub forests consisting of Deciduous, low thorny trees and
xerophytes. In this type of forests canopy is more or less broken. According to the
classification the area falls under Deciduous climax forests and degradation group
Under this group the area can be grouped under Dry deciduous – Scrub forests.
Therefore the timber source is practically nil in this area. Since the ML area is almost
broken up after getting the approval from Forest Dept., there shall be no further
clearance of vegetation from the ML. The 7.5 m barrier surrounding the two mining
leases are well protected.
The drainage in this area is sub-dendritic. The drainage from this area is flowing both
towards NE and SW. There are 2 drains in NE and one drain in SW. The slopes of the
hill range are traversed by a few nalas which drain into the valley on both the flanks of
the hill range. These nalas are small and narrow and act only as flood channel during
rainy season and none of them are perennial.
The lessee along with adjoining mine owners has constructed Retaining wall (within
lease area) size in m 415 x 2 x 1 , Retaining wall (outside lease area) size in m 82 x 1.5 x 1,
Check dam (outside) size in m 20 x 2 x 2, Gully plug - 4 (outside) size in m 60 x 1 x 1 and
Earthen bund (outside) size in m 380 x 20 x 15.
Allipura water reservoir which is the major drinking water source to Bellary is located
7km towards north direction from the lease area. On the Southern side of the mine lease
area, there is a natural spring that is found at Gavi Siddeshwara temple which is
approximately at 1.6 km distance from the mine lease area. Avinamodugu kere Tank is
located 7.5 km SW. Since these water resources are far off from the ML, there shall be no
adverse effect on them due to mining. Rain water collected & stored in the pit and
drawn from nearby bore well in the patta land of lessee of about 80 KLD is used for the
mines requirement.
As proposed in the Approved R&R Plan for the first 5 years, as furnished under Plate
No 5 Surface water management plan toe wall at base of the waste dump, Garland
drain, over the waste dump will be taken up as per the schedule. Dump terraces are
provided with concentric drain to regulate monsoon run-offs to the check dams and
settling ponds as given below
(vi) Raw material required along with estimated quantity, likely source, marketing
area of final product/s, Mode of transport of raw Material and Finished Product
The only raw material required is diesel oil @ 3KLD, which shall be transported by oil
tankers and stored within the ML.With the existing infrastructure facility, before the e-
auction in force, ore was transported by 10 tonner tipper trucks to the Stack yard
adjacent to the own railway siding at Obulapuram which covers a total distance of
about 12 km.
But presently no export of ore is permitted. Presently as the ore is lifted through e-
auction, buyers make their own arrangement for transporting the ore from the pit head
to their respective destination. Presently screened fines and ROM are lifted from the
mine through the e-auction and sold locally to the Steel/sponge iron Plants.
(vii) Resource optimization/ recycling and reuse envisaged in the project, if any,
should be briefly outlined.
Presently entire generated ore will be lifted from the mine by buyers through e-auction
hence, it will be sold locally. Depending up on the requirement, the buyers bid for the
produced ore in e-auction. As such specific grade is not mentioned by the buyers..
As the average grade of ore available are acceptable to the local buyers or buyers
abroad, it is not necessary to have provision of wet Beneficiation facility at the mine .
ROM is dry crushed and screened at mines site using mobile plant.
Mineral balance sheet :
R.O.M feed 200 tonnes
Out put.
+ 40 mm. 40 tonnes
+ 10 mm. -40mm 60 tonnes
-10 mm fines 100 tonnes
(viii) Availability of water its source, Energy/ power requirement and source should
be given
Rain water collected & stored in the pit and drawn from nearby bore well located in
patta land of the lessee of about 80 KLD is used for the mines requirement. Break-up of
quantity of water used for mining and allied activities are mentioned as below;
S.No Particulars Water consumption
LPD
1 For wet drilling 500
2 For dust suppression in mining area &
roads
60,000
3 For dust suppression in crusher 15,000
4 For human consumption 500
5 For afforestation 4000
Total 80000
No electric power is used for working the mine except for night lighting, which is
supplied by KSEB. The diesel oil requirement with the present production programme
is only 3 KLD. The diesel oil is available in the nearby town and supplied through
tanker.
(ix) Quantity of wastes to be generated (liquid and solid) and scheme for their
Management/disposal.
No liquid wastes are generated. The overburden waste mainly consists of shale, phyllite,
gabbro and BHQ. The waste generated is presently along the Eastern slope of the
mining lease of Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469). As this dumping
area is exhausted, ICFRE in their approved R&R plan has suggested future waste
dumping in adjoining Belagal Iron Ore Mine (BIOM) (ML 80) of 5.67 ha, being worked
by same owner, having common workings. The overall stripping ratio considered based
on the latest Mining Plan prepared by the lessee is 1:6.13.
Following are the range of chemical analysis of the waste as tabulated below;
There are two inactive dumps within the Vibhuti gudda mine lease area one lying on
south eastern portion of ML with dump top RL 835 m and bottom RL 785m. The height
is 50m with a quantity of 254214 cum covering 2.39 ha, within the ML area, with some
plantation. This has extended outside the ML with a quantity of 52294 cum, covering
0.43 ha. The second dump is located South Western side of the lease area, with top RL is
878m and bottom RL 815m. The height is 63m with a quantity of 22800 cum, covering
2.26 ha. There is one active dump within the mine lease area located on the North
Eastern side with a top and bottom RL of 780m and 598m, respectively. The dump
height and width is 181m and 1228m, with a quantity of 2333700 cum covering 12.2 ha,
within the Ml area. This dump is also extended outside the lease area with a quantity of
2394720 cum, covering 9.26 ha.
Additional solid waste dumping capacity available in the adjoining ML of Belagal Iron
Ore Mine (BIOM) (ML 80) of 5.67 ha of the same owner, being jointly worked is about
3.06 million tonnes. with a stripping ratio of about 3.57 and annual production of 0.064
million tonnes, the expected waste generation is 0.228 million tones and the above
capacity of waste dump can cater to about 13 years of production. The dumps shall be
raised in terraces each terrace is maintained at 8-12m with 12-15m berm. I t is
proposed to construct retaining walls at the foot of dumps to avoid wash off the
material due to rains After this the waste generated shall be backfilled into the worked
out portions of the pit, covering an area of 3.64 ha. Both the waste dumping area and
the backfilled area are concurrently afforested. In the lease area and near plant area
about 1.5 million Tonnes of sub grade mineral stack is available which shall also be lifted
and marketed.
Waste generated at the mine is transported to surface dump located under ML 80 by
10/17 tonnes capacity dumpers. Dozer is continuously provided to level waste material
unloaded by dumpers and spread laterally in area earmarked. Continuous movement of
dumpers while unloading will consolidate the ground. Water is regularly sprinkled
over the surface dump and backfilling area to control the generation of airborne dust.
Thus with dozing and tipping, dump will get consolidated and get built up in stages.
While building up, dumps are properly graded and terraced with the height of each
terrace is maintained at 8-12m with 12-15m berm width, and provision of contour
drainage. Terracing is always accompanied with plantation for stabilization of terraced
slopes. Dump slopes are suitably protected from any environmental damages,
providing all the protective measures in stages as per the schedule in the approved R&R
Plan Plate No 5 Surface plan and same is mentioned in below. While preparing the
lease sketch by CEC, it was observed that the existing waste dumps have occupied
outside the ML area demarcated and for which the ICFRE has also proposed protective
measures under the R&R plan.
During the course of dumping, slope and flat top portion of the dump will be
rehabilitated by plantation as proposed in the R&R Plan. Various species of grasses,
leguminous species, and plant species recommended for OB dump and mine pit
stabilization will be taken up accordingly. Due care will be taken to protect the
plantation area from fire and pest. For healthy growth of the saplings, proper dosage of
organic fertilizer /manuring and water will be provided as and when required.
The inactive part of dumps and already reclaimed areas are annually covered with
plantation. An area of 5 hectare is proposed to be covered with plantation during plan
period. Afforestation covering 1000 trees and 2500 shrubs per hectare, inclusive of
maintenance for five year has been worked out as per the norms of State Forest
Department, Karnataka. The waste dump reclamation measures to be followed as per
the approved R&R plan is as follows:
(x) Schematic representations of the feasibility drawing which give information of
EIA purpose.
Location Plan is given in Plate 1, Lease Sketch is given in Plate No. 2, Geological plan is
given in Plate 3, Conceptual Plan is given in Plate 4 Surface Plan Plate 5.
4.Site Analysis
(i) Connectivity.
The mining lease is located under Village BELAGAL of BELLARY Taluk of BELLARY
District, Karnataka State. ML is located towards South West from Bellary town and is at
a distance of about 12 km and 2.50 km from the Bellary–Tumati Road. The nearest
Railway station is Bellary Cantonment Station at a distance of 18 km Bellary district,
Karnataka.
Location of the lease M.L. No. 2469 of Vibhuti gudda Minerals Pvt. Ltd. from the point
of accessibility, Taluk and District Head Quarter, and other infrastructure is shown on
Location Plan enclosed as Plate No. 1. The surface plan of the area demarcating the ML
boundary is furnished under Plate No 2.
(ii) Land Form, Land use and Land ownership.
Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of M/s Vibhuti Gudda Mines Pvt.
Ltd. has a lease area of 55.00 ha in forest land situated at Survey No. 90(P) of Belagal
village in Bellary Reserved Forest. The mine is being worked for the past 59 years w.e.f.
07.04.1954 and therefore is almost being utilized
The present mining lease area of 79.37 Ha
Area for Mining 25.25 Ha
Area for dumping 5.27 Ha
Area for inactive dump 21.95 Ha
Area for roads 1.48 Ha
Area for infrastructures 0.40 Ha
Safety zone/plantation 3.08 Ha
Others 21.94 Ha
Total 79.37 Ha
(iii) Topography (along with map).
The area of 10 km radius around the lease area (buffer zone) comprises of valleys
surrounded by rugged hills, marked by discrete, NW-SE trending ridges, separated by
flat or gently sloping land. The mine is about 12km from Bellary Town. A major part of
the hilly tract is under the reserved forest category. At present, the maximum and
minimum elevation in the lease area is 870 mRL and 732 mRL respectively.
The drainage in this area is sub-dendritic. The drainage from this area is flowing both
towards NE and SW. There are 2 drains in NE and one drain in SW. The slopes of the
hill range are traversed by a few nalas which drain into the valley on both the flanks of
the hill range. These nalas are small and narrow and act only as flood channel during
rainy season and none of them are perennial.
(iv) Existing land use pattern (agriculture, non-agriculture, forest, water bodies
(including area under CRZ)), shortest distances from the periphery of the project to
periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water
bodies (distance from the HFL of the river), CRZ. In case of notified industrial area, a
copy of the Gazette notification should be given.
M/s. Vibuthi Gudda Iron Ore Mine with an area of 55 ha is situated at Survey No. 90 (P)
of Belagal Village in Bellary Reserved Forest.
The vegetation occurring in the area belongs to Southern tropical Tropical throny/scrub
forests consisting of Deciduous, low thorny trees and xerophytes. In this type of forests
canopy is more or less broken and the tree species are less than 10 m high.
The present mining lease area of 79.37 Ha
Area for Mining 25.25 Ha
Area for dumping 5.27 Ha
Area for inactive dump 21.95 Ha
Area for roads 1.48 Ha
Area for infrastructures 0.40 Ha
Safety zone/plantation 3.08 Ha
Others 21.94 Ha
Total 79.37 Ha
There are no national park, wild life sanctuary, eco sensitive areas, perennial water
bodies or CRZ atleast within 10 km radius of the ML. Allipura water reservoir which is
the major drinking water source to Bellary is located 7km towards north direction from
the lease area. On the Southern side of the mine lease area, there is a natural spring that
is found at Gavi Siddeshwara temple which is approximately at 1.6 km distance from
the mine lease area.
(v)Existing Infrastructure,
The mine is being worked for the past 59 years i.e. 07.04.1954, therefore it has all
infrastructural feasibilities like proper approach road to the mine, power & telephone
connections, office & other statutory buildings as per Mine Act, workshop and
availability of proper skilled mine labour in the nearby villages The mine is situated
near the PWD road connecting Bellary to Tumati located 2.50 km from the ML. No
dwelling houses, public roads, important structures exist within 500 m of the lease
hold area. Bellary town which is at a distance of 12 Kms and has very well
developed infrastructure for communications, and is linked to major towns and
cities in the country by road and rail. Drinking water facility & all general safety
amenities are provided at mines. All the workers & supervisory staff are coming
from nearby villages & vehicles are provided for them to attend the regular duties
at Mines. The lessee has provided wireless, Canteen, Work shop, First aid station,
Vocational training center & Rest shelters near mine. Drinking water to the mine
and for dust suppression & plantation is supplied by tanker f r o m f o o t o f t h e
h i l l o u t side the lease area) where the lessee has made bore well in their own patta
land. The mine is being worked by fully mechanised open cast method.
(vi) Soil classification
The soil pH ranged from 6.9 to 7.5 indicating that the soil is generally neutral. The soil in
the study area is predominantly sandy clay type. The electrical conductivity of the soil
ranges from 410 to 660 micro MS/CM. The nitrogen content varied from 8.5 to
100mg/kg, potassium 2.5 to 19 mg/kg and phosphorous values ranged from 5.5 to 28.
(vii) Climatic data from secondary sources,
The area exhibits temperate climate. Bellary district is known for hot summer and very
dry weather for a major part of the year, and the temperature varies between 18°C and
44°C. Average daily maximum relative humidity is around 77% and Average daily
minimum relative humidity is around 27%. The annual rainfall varies from 350 mm to
650 mm with an average rainfall of 574.9 mm. The rainfall is mostly (60%) confined to
the period from June to September during southwest monsoon. October to November is
the months of retreating monsoon (24%), and another 16% of rainfall occurs as sporadic
in other months of the year. On an average, the district has 39 rainy days in a year. The
rainfall decreases from southwest to northeast monsoons. The predominant wind
direction is NE. Predominant wind speeds range 1.7 to 5.0 m/sec.
(viii) Social Infrastructure available
In the buffer zone of 10kms radius there exist 26 villages with a cumulative
population of 36318 as per 2001 census.
Further, due to the proposed mining activity, no significant adverse changes are
visualized in the traditional way of life of the people residing in the villages in the
buffer zone.
Further people residing in the nearby villages are to be benefited by the direct and
indirect employment opportunities created by the mining activities.
Facilities like construction of roads, medical facility; vocational training provided by the
lessee will augment the socio-economic status of the villagers residing nearby.
Harmony among the people will improve as they come closer by arranging cultural
activities, safety weeks, environmental protection weeks etc. by the company.
Mining activity has contributed towards economic upliftment by creating job
opportunities in the region also by this production of iron ore , the country achieves the
revenue in terms of taxes on iron ore and exchequer revenue for the State in terms of
royalty etc. In FY11, Karnataka earned Rs 520 crore as royalty on 33 million tonnes of
ore produced while in FY12 it rose to Rs 730 crore on an output of 22 million tonnes.
The Karnataka government expects Rs 15,000 crore revenues from the state’s iron ore
sector from multiple sources like levy of fines on illegal mines, a portion set aside from
e-auction proceeds and also from the proposed auction of certain mines. The revenue
generated from these sources will be placed under a special purpose vehicle and will be
used for developing infrastructure in three iron ore mining districts – Bellary,
Chitradurga and Tumkur.
5. Planning Brief
(i) Planning Concept (type of industries, facilities. transportation etc) Town and
Country Planning/Development authority Classification
This mine forms one of the active leases producing good quality iron ore suitable for
steel making. All the infrastructural facilities are in place for mining and transportation
of ore. Necessary permission to mine the area is there under F(C) Act, 1980 and MCDR,
1988 regulated by IBM. The area is part of the Reserved Forest.
(ii) Population Projection There are no résidentiel houses within the ML area Important Buffer zone village
population as per 2001 censes –
Buffer zone details such as villages and population etc.,
Sl. No Name of the village Distance in KM Population Direction
1. Haraganadona 5.75 2028 N W
2. Janikunte 5.60 1200 N
3. Lambadi Tanda 4.20 150 N W
4. Allipur 9.25 4015 N E
5. Bandehatti 9.50 1010 N E
6. Aladahalli 8.25 450 N E
7. Belagallu 5.00 3975 N E
8. Belagallu Tanda 3.50 629 N E
9. Honnehalli 7.25 2465 N E
10. Honnehalli Tanda 4.80 293 E
11. Halakundi 8.50 3069 S E
12. Obulapuram 8.75 1525 S E
13. Dondinahirehalu Pete 10.00 4476 S E
14. Hirehal Siddapuram 5.25 1375 S E
15. Hirehal Siddapuram Tanda 4.50 280 S W
16. Malapanagudi 6.00 317 S W
17. Basapur 9.50 250 S W
18. Ramasagar 10.00 320 S W
19. Gundlahalli 8.50 250 S W
20. Metriki 9.00 3215 S W
21. Gangalapur 7.25 550 S W
22. Rampur 9.50 600 S W
23. Vittalapur 7.25 2250 S W
24. Avinamodugu 8.25 350 S W
25. Tumati 3.50 1145 W
26. Tumati Lambadi Tanda 2.75 131 N W
TOTAL 36318
Since the mine is under active mining operation since 1954 and presently the production
level is also reduced, there shall be no further inrush of population from out side area
into the above villages.
(iii) Land use planning (breakup along with green belt etc).
The approximate land use at conceptual stage is as given below:
Area for Mining (Under Plantation) -- 47.87Ha
Area for dump (under plantation) -- 27.22 Ha
Area for roads (under avenue plantation) -- 01.00 Ha
Area for infrastructures (statutory buildings) -- 00.20 Ha
Safety zone (7.5m) green barrier -- 03.08 Ha
Total -- 79.37 Ha.
The conceptual plan is enclosed under Plate No 4
(iv) Assessment of Infrastructure Demand (Physical & Social),
Environmental Clearance (EC) for the Vibhuti Gudda Iron Ore Mine (VGIOM) (ML
2469) involving a lease area of 55.00 Ha for production of iron ore of 0.275 MTPA under
the provisions of Environmental Impact Assessment Notification, 1994 was already
obtained. But CEC Under the approved R&R plan has fixed the capacity of the mine as
0.064 million tonnes per annum. Thus there shall be no further infrastructural demand
either physical or social for working this mine.
(v) Amenities/Facilities.
This being a working mine all amenities and facilities are available.
6. Proposed Infrastructure
(i) Industrial Area (Processing Area).
The total mining lease area granted by Govt. of Karnataka of 55 hectare is processing
area.
(ii) Residential Area (Non Processing Area).
There shall be no residential area.
(iii) Green Belt.
It is proposed to develop wide green belts surrounding the two ML areas in the 7.5 m
buffer zone covering 2.25 ha in three rows with a spacing of 2.5mx 2.5 m. In between the
tree species bush and shrub, verities shall be planted.
(iv) Social Infrastructure
People residing in the nearby villages are to be benefited by the direct and indirect
employment opportunities created by the mining activities.
Facilities like construction of roads, medical facility; vocational training provided by the
lessee will augment the socio-economic status of the villagers residing nearby.
Harmony among the people will improve as they come closer by arranging cultural
activities, safety weeks, environmental protection weeks etc. by the company.
Mining activity has contributed towards economic upliftment by creating job
opportunities in the region.
(v) Connectivity (Traffic and Transportation Road/ Rail/Metro/Water ways etc)
With the existing infrastructure facility, before the e-auction in force ore was
transported by 10/16 tonner tipper trucks to the Stack yard adjacent to the own
Obulapuram railway siding which covers a total distance of about 12 km. Presently
export of ore is not permitted.
Presently as the ore is lifted through e-auction, buyers make their own arrangement for
transporting the ore from the pit head to their respective destination. Before e-auction,
as mentioned above 10/16 hired tipper trucks were utilized for transportation to the
railway siding.
Presently screened fines and ROM are lifted from the mine through the e-auction and
sold locally to the Steel/Sponge Iron Plants by road. Also low grade material mainly
ROM was sold to the local cement plants.
(vi) Drinking Water Management (Source & Supply of water)
Drinking water requirement of 5KLD to the mine is supplied by tanker f r o m f o o t
o f t h e h i l l ( o u t side the lease area) where the lessee has made bore well in their
own patta land
(vii) Sewerage System.
No sewage is generated from the mine.
(viii) Industrial Waste Management.
No industrial waste is generated from the mine
(ix) Solid Waste Management.
The overburden waste mainly consists of shale, phyllite, gabbro and BHQ. The waste
generated is presently along the Eastern slope of the mining lease of Vibhuti Gudda Iron
Ore Mine (VGIOM) (ML 2469). As this dumping area is exhausted, ICFRE in their
approved R&R plan has suggested future waste dumping in adjoining Belagal Iron Ore
Mine (BIOM) (ML 80) of 5.67 ha, being worked by same owner, having common
workings. The overall stripping ratio considered based on the latest mining plan
prepared by the lessee is 1:6.44.
There are two inactive dumps within the Vibhuti Gudda mine lease area one lying on
south eastern portion of ML with dump top RL 835 m and bottom RL 785m. The height
is 50m with a quantity of 254214 cum covering 2.39 ha, within the ML area, with some
plantation. This has extended outside the ML with a quantity of 52294 cum, covering
0.43 ha. The second dump is located South Western side of the lease area, with top RL is
878m and bottom RL 815m. The height is 63m with a quantity of 22800 cum, covering
2.26 ha. There is one active dump within the mine lease area located on the North
Eastern side with a top and bottom RL of 780m and 598m, respectively. The dump
height and width is 181m and 1228m, with a quantity of 2333700 cum covering 12.2 ha,
within the Ml area. This dump is also extended outside the lease area with a quantity of
2394720 cum, covering 9.26 ha.
Additional solid waste dumping capacity available in the adjoining ML of Belagal Iron
Ore Mine (BIOM) (ML 80) of 5.67 ha of the same owner, being jointly worked is
additional solid waste dumping capacity available in the adjoining ML of the same
owner, being jointly worked is about 22.34 million tonnes. with a stripping ratio of
about 1:6.13 and annual production of 0.064 million tonnes, the expected waste
generation is 1.96 million tones and the above capacity of waste dump can cater to about
10 years of production. The dumps shall be raised in terraces each terrace is
maintained at 9m with 10m berm width. I t is proposed to construct retaining walls at
the foot of dumps to avoid wash off the material due to rains After this the waste
generated shall be backfilled into the worked out portions of the pit, covering an area of
8.00 ha, after getting the permission from IBM. Both the waste dumping area and the
backfilled area are concurrently afforested. In the lease area and near plant area
about1.5 million Tonnes of sub grade mineral stack is available which shall also be lifted
and marketed.
The dumps shall be raised in terraces, each terrace is maintained at 9m with 10m berm
width. I t is proposed to construct retaining walls at the foot of dumps to avoid wash
off the material due to rains After this the waste generated shall be backfilled into the
worked out portions of the pit, covering an area of 8.00 ha. Both the waste dumping
area and the backfilled area are concurrently afforested. In the lease area and near
plant area about 1.5 million Tonnes of sub grade mineral stack is available which shall
also be lifted and marketed.
Waste generated at the mine is transported to surface dump located under ML 80 by
10/16 tonnes capacity dumpers. Dozer is continuously provided to level waste material
unloaded by dumpers and spread laterally in area earmarked. Continuous movement of
dumpers while unloading will consolidate the ground. Water is regularly sprinkled
over the surface dump and backfilling area to control the generation of airborne dust.
Thus with dozing and tipping, dump will get consolidated and get built up in stages.
While building up, dumps are properly graded and terraced with the height of each
terrace is maintained at 9m with 10m berm width, and provision of contour drainage.
Terracing is always accompanied with plantation for stabilization of terraced slopes.
Dump slopes are suitably protected from any environmental damages, providing all the
protective measures in stages as per the schedule in the approved R&R Plan Plate No 5
Surface water management plan and same is mentioned in below. While preparing the
lease sketch by CEC, it was observed that the existing waste dumps have occupied
outside the ML area demarcated and for which the ICFRE has also proposed protective
measures under the R&R plan.
During the course of dumping, slope and flat top portion of the dump will be
rehabilitated by plantation as proposed in the R&R Plan. Various species of grasses,
leguminous species, and plant species recommended for OB dump and mine pit
stabilization will be taken up accordingly. Due care will be taken to protect the
plantation area from fire and pest. For healthy growth of the saplings, proper dosage of
organic fertilizer /manuring and water will be provided as and when required.
The inactive part of dumps and already reclaimed areas are annually covered with
plantation. An area of 5 hectare is proposed to be covered with plantation during plan
period. Afforestation covering 1000 trees and 2500 shrubs per hectare, inclusive of
maintenance for five year has been worked out as per the norms of State Forest
Department, Karnataka. The waste dump reclamation measures to be followed as per
the approved R&R plan is as follows:
(x) Power Requirement & Supply / source.
No electric power is required for working of the mine as all the machinery are diesel
operated and DG sets are available.
7. Rehabilitation and Resettlement (R&R Plan).
(i) Policy to be adopted (Central/State) in respect of the project affected persons
including home oustees, land oustees and landless labour ( A brief outline to be
given)
No Rehabilitation or Resettlement is involved as it is a Govt. non-forest revenue land
and there are no human settlements or PAPs within the ML area which require
Rehabilitation and Resettlement
8. Project Schedule and cost Estimates
(i) Likely date of start of construction and likely date of completion ( Time schedule
for the project to be given).
The mine work starts as soon as EC for the mining lease is accorded and the FC is
extended. The total insitu ore reserves presently estimated is about 22 million tonnes
and with the present proposed rate of production fixed by CEC of 0.064 million tonnes,
the life of the mine shall be 574 years.
(ii) Estimated project cost and along with analysis in terms of economic viability of
the project
Estimated Cost Summary of Vibhuti Gudda Iron Ore Mine as per Approved R&R plan
ECONOMIC VIABILITY FOR MINING Parameters:
1) Expected Mineable reserves : 22.34 Million tonnes of iron ore 2) Nature of ore : Haematite (45 to 66 % Fe) 3) Production : maximum 0.064 MTPA/ annum 4) Average Ore to waste ratio 1 : 6.4
A. Direct costs of Mining:
Sl. No
Particulars Expenditure Cost / Tonne Rs.
1 Exploration Future exploration Rs.200 lakhs
For 22.34 million tonnes of ore
0.90
2 Development
at 1: 6.4 ratio
Excavation Rs 25.00/t
Loading Rs 10.00/t
Transportation Rs. 10.00/t
Total 45/t X 6.4=
288.00
3 Production Excavation Rs. 25.00/ tonne
Loading Rs 10.00/ tonne
Transportation Rs 10.00/ tonne
Screening Rs. 10.00/tonne
55.00 Sub Total Rs. 55.00/tone
4 Infrastructure 15.00
5 Overheads including salaries & wages 40.00
6 Royalty, Area development fund & forest development
fund @ 26% sale value
572.00
7 Head office expenses 30.00
Sub Total 1000.90
B. Environmental Cost: Sl. No
Particulars Expenditure Cost / tonne Rs
1 Environmental Monitoring Rs. 10.6 Lakhs 2 Air & water pollution
Rs. 8.00 Lakhs 3 Green belt / Afforestation 4 Engineering construction
like retention walls Water garlands
5 Reclamation works Sub Total Rs. 18.6 lakhs for 0.64 lakhs tpa 29.06
C. Health & Safety : Sl.
No
Particulars Expenditure Cost / tonne
Rs.
1 Ambulance Rs.3.00 Lakhs
2 Doctor & staff Rs.2.00 ,,
3 Health Check up Rs.1.00 ,,
4 Medicines Rs.1.00 ,,
Rs.7.0 lakhs for 0.64 lakhs tpa 10.94
D. CSR Activities : Sl. No
Particulars Expenditure Cost / tonne Rs.
1 Education Rs.3.00 Lakhs 2 Water supply Rs.2.00 ,, 3 Sanitation Rs.1.00 ,, 4 Village
Plantaion Rs.1.00 ,,
5 Skill development & Self help groups
Rs.1.00 ,, 6
Rs.8.0 lakhs for 0.64 lakhs tpa
12.50
E Capital cost Rs. 548.20 lakhs for 22.34 million tonnes Rs. 2.45 F R & D Cost Rs. 50 lakhs for 22.34 million tonnes Rs. 0.22 Total pit head cost per tonne Rs. 1056.07
Pit head realization for iron ore Rs. 2400.00 Profit / tonne Rs. 1343.93 Gross profit / annum for 0.64 lakh tonnes Rs. 86 million Net profit after taxation @ 35% Rs. 55.90 million The above shows that the proposed mining activity with production of 0.064 mtpa of
iron ore for this mine is remunerative after meeting direct mining costs, environmental
costs, cost on health & safety, socio economics, compensation for land, capital & R&D
costs.
9. Analysis of proposals (Final recommendations) (i) Financial & social benefits with special emphasis on the benefits to the local
people including tribal population if any in the area.
India possesses haematite resources of 14,630 million tonnes of which 7,004 million
tonnes are reserves and 7,626 million tonnes are remaining resources, with Karnataka
state having 1676 million tones (11%) of reserves. It is an undeniable fact that steel plays
a pivotal role particularly in reference to the infrastructural sector. In India, the per
capita steel consumption of 55.00 kgs remains very low, compared to the international
average of 190 kgs and China’s average of 400 kgs. In this context, the production of 500
MT of steel is an imperative by 2050 and for this 640 MT of iron ore per annum is
required . India atlest will need 200 MT of Steel by 2020. This calls for wise use of our
limited resources and to strategically plan for the future to meet the demand when it
finally arrives. It is expected that the additional demand will be met through capacity
augmentation from mines in Karnataka and in other places and by opening of new
mines. The expected production target of the Mild/Carbon Steel for the year 2011-12 was projected as 69.89 million tones of steel. To meet the above projected tonnage of steel, the requirements of various grades/ specifications of iron ore are estimated to be156 million tones. But this could not be achieved mainly because of the closure of mines in in Karnataka & Goa. In Karnataka, while the Supreme Court has permitted resumption of mining by Category A mines and few B class mines only 20 mines have restarted mining in the last few days. Whereas the Monitoring Committee has not put on auction this ore due to certain reasons. Secondly, the state-owned NMDC, which has been allowed to produce one million tonnes per month in its Karnataka mines, is able to produce only about 700,000 tonnes due to logistic bottlenecks. The FIMI expects the production of iron ore in Karnataka at about 15 million tonnes during 2013-14 assuming some more mines in Category A and B resume mining. This would include about 8 million tonnes from NMDC. This means that the steel industry would end up getting only half of its requirements. With the result, all the steel mills operating in India might have to import iron ore or else shut down their operations.
The SC has capped iron ore production from Karnataka at 30 mtpa. After the SC
intervention and recommendation that all ore be sold through e-auctions, steel plants in
Karnataka have complained of shortage in the raw material. JSW Steel company is
running its 10 mtpa plant in Karnataka at 80% capacity due to ore shortage.
Thus it is essential that iron ore mines in Karnataka has to renew working to meet the
domestic demand for which the working of this mine is fully justified.
This mine shall provide employment for about 50 people by both direct employment