PRE FEASIBILITY REPORT. Kuppilli, Koyyam, Dharmavaram, Village Bonthalakoduru villages Mandal Etcherla District Srikakulam State Andhra Pradesh

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1 1) Executive Summary Project Name of Company / Mine Owner Location PRE FEASIBILITY REPORT Kuppli- Koyyam Mineral Sands Deposit-I, Pre-concentration Plant (PCP). M/s. Andhra Pradesh Mineral Development Corporation Limited, Hyderabad. Kuppilli, Koyyam, Dharmavaram, Village Bonthalakoduru villages Mandal Etcherla District Srikakulam State Andhra Pradesh 1 Area & Type of land Ha (10.00 km 2 ) 2 Geographical co-ordinates AML Area Latitude: to to Name of Rivers/ Nallahs/ Tanks/ Spring/ Lakes etc 4 Name of Reserve Forest(s), Wild life Sanctuary/ National parks etc. Longitude: to to Nagavali river- Adjacent Kadivalasa River km, SW Kotapalem PF (0.5 km, SW) Kuppili PF (within ML area) Dharmavaram PF (within ML area) Srikakulam RF (11.6 km, NE) 5 Topography of ML area The mining lease area forms part of a barren sandy stretch with an elevation of 1-18 m above the mean sea level. 6 Name of the mineral mined Ilmenite, Rutile, Zircon, Garnet, Sillimanite and Monazite 7 Rate of Production (in MTPA) proposed Heavy Mineral Sands 2.0MTPA 8 Life of Mine Approx years. 9 Mineral Reserve in million tonnes Geological Reserves 76.0 million tonnes 10 Drilling/Blasting No drilling and Blasting is carried out 11 Ultimate depth of mining 8 9 m 12 Ground water level 10 m RL 13 Ground water intersection m 14 Drainage pattern/water courses Nagavali river- Adjacent Kadivalasa River km, SW Drainage Pattern: Northeast to Southwest 15 Break-up of Land Utilization Pattern Attached as Annexure I 16 Water requirement & Source The requirement 500 m 3 /hour from Nagavali River 17 Solid waste Total 1.74 Million Tonnes/annum 18 IBM Approval : Date Mining Plan is under preparation for rated capacity of raw sand of 2.0 MTPA 19 Public hearing : Date - 20 Cost of project Rs 400 Crores 21 Any Other (specify) None 1

2 2) Introduction of the Project / Background Information 2.1 Identification of Project and Project Proponent The Andhra Pradesh Mineral Development Corporation Ltd., (APMDC) was incorporated on 24 th Feb., 1961 as a wholly owned undertaking of the Government of Andhra Pradesh to develop mineral resources in Andhra Pradesh including exploration, exploitation, conservation, processing, beneficiation, conversion into value added products and promotion of mineral based industries. APMDC registered under the Companies Act 1956 with an authorised capital of Rs. 50 lakhs with full participation by Government of Andhra Pradesh. The Authorised capital is increased from time to time, to Rs. 10 Crores. The paid up capital is Rs Lakhs. The Objectives of the APMDC are: Development of mineral resources including exploration, exploitation, and beneficiation. Development of mineral industry with private participation. Identification of the Best Technology and Investment for development of Mineral Resources. Awards The Corporation has been awarded with Coal India Productivity Organizational Award for the year by the Indian Institute of Industrial Engineering on 12 th October, 2007 at Thiruvananthapuram for its exceptional performance in the exploration of the minerals in the state. Earlier, best documentary film award-2008 at Nandi film fare awards has been awarded for the documentary pictured on Bauxite deposits by the corporation. Name of the Project : Kuppli-Bontalkoduru Mineral Sands Deposit, Pre-concentration Plant (PCP). Location Village : Kuppilli, Koyyam,Dharmavaram, Bonthalakoduru Mandal : Etcherla District : Srikakulam State : Andhra Pradesh Production : Raw Mineral Sand Mine production 2.0 MTPA ML Area : Ha (10.00 km 2 ) (i) Name & Address of the Project Proponent M/s. Andhra Pradesh Mineral Development Corporation Ltd, 3 rd Floor, Rear Block(HMWSSB Premises) Khairathabad,Hyderabad , INDIA Tel No , , Fax: (ii) Background for EC The Project involved mining of beach sand and separation of heavy minerals (Garnet, Ilmenite, Leucoxene, Sillimanite and minor amount of Rutile Zircon and Monazite ) and set-up an export-oriented and value added mining unit. 2

3 2.2 Brief Description of the Nature of the Project. The Project involves Production of Heavy Mineral Sands Mine 12.0 MTPA. 2.3 Need for the Project and its importance to the country and or region As per the projections of 12 th plan document prepared for beach sand minerals and as per the IBM report (Mineral year book) India is currently producing annually ilmenite 7.5 LT, Rutile 0.18 LT, Zircon 0.5 LT, Sillimanite 0.6 LT. Garnet 12.0 LT and Monazite from East-West coast Beach sands. Out of these minerals majority of rutile and Zircon requirement is being met by import currently. The chloride grade Ilmenite is also imported to meet the domestic requirement. However, there is demand of Ilmenite garnet Sillimanite for export to earn foreign exchange. Since the project is proposed to be taken up in Northern part of Andhra Pradesh, the surrounding areas in Srikakulam, Vijayanagaram and Vishakapatnam towns will be benefited by way of employment, infrastructures and other developments. The proposed value addition like rutile grade pigment, Titanium slag, Titanium metal, zircon flour and zirconium chemicals will be taken up at later stage. This project assumes greater significance in the field of beach sand minerals development in the country. In view of the above the project is a step towards import substitution, value addition and establishment of other downstream ancillary industries. The project will also contribute substantially to the Government exchequer and offer significant employment opportunities to the locals. 2.4 Demand-Supply Gap Sr. No Minerals Production (TPA) Demand (TPA) Shortage/Surplus (TPA) 1 Ilmenite 7,50,000 3,19,000 +4,31,000 2 Rutile 18,000 40,000-22,000 3 Zircon 50,000 1,30,000-80,000 4 Garnet 12,00,000 7,00,000 +5,00,000 5 Sillimanite 60,000 40, , Import V/s Indigenious Production Sr. No Minerals Production (TPA) Import (TPA) 1 Ilmenite 7,50,000 65,876 2 Rutile 18,000 9,826 3 Zircon 50,000 34,651 4 Garnet 12,00,000 1,115 5 Sillimanite 60, Export Possibility Sr. No Minerals Export (TPA) 1 Ilmenite 7,91,735 2 Rutile 2,322 3 Zircon 31,600 4 Garnet 5,05,281 3

4 5 Sillimanite 11, Domestic / Export Markets Sr. No Minerals Demand (TPA) Export (TPA) 1 Ilmenite 3,19,000 7,91,735 2 Rutile 40,000 2,322 3 Zircon 1,30,000 31,600 4 Garnet 7,00,000 5,05,281 5 Sillimanite 40,000 11, Employment Generation (Direct and Indirect) Due to Project. About 100 departmental and 300 contract employees will be engaged for the project. 3.0 Project Description 3.1 Type of Project (including interlinked and interdependent project, if any) Mining of heavy mineral 2.0 MTPA with Pre-Concentration 333 TPH and to be produce Ilmenite, Rutile, Zircon, Sillimanite and Garnet minerals. There are no interlinked projects involved at this stage 3.2 Location (map showing general location, specific location and project boundary & project site specific layout) with coordinates. The Applied Mining Lease area is located in the jurisdiction of villages Kuppilli, Koyyam, Dharmavaram, Bonthalakoduru, Etcherla Mandal of Srikakulam district, Andhra Pradesh Latitude: to & to and to & to The lease area is approachable from Srikakulam and at a distance of 20 Km. Village wise survey numbers and land details are enclosed in Annexure-II. Survey Nos. Name of the Plant Pre Concentration Plant (PCP) Temporary/Floati ng PCP Proposed Within the lease area Within the lease area Geo-Co-ordinates Mining Area Mining Area Study area map of the AML area is shown in Figure-1 (iii) Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. As the proposed project is being the mining of beach sand and separation of heavy minerals (Garnet, Sillimanite, Ilmenite, Leucoxene, and minor amount of Rutile Zircon and Monazite). Hence, No alternative sites are considered. 4

5 3.4 Size or Magnitude of operation. Proposed Production Mining: 2.0 MTPA of raw sand ROM with 333 TPH Pre-Concentration Plant. Note: a) The concentrate output and mineral output from the Pre Concentration Plant and and value addition plants may vary depending upon the mineral content in the above mentioned ROM excavated from a particular mining area. 3.5 Project Description with Process details (a schematic diagram/ Flow chart showing the project layout, components of the project etc. should be given. Mining of heavy mineral 2.0Million tonnes per annum with Pre-Concentration 333 TPH and to be produce Ilmenite, Rutile, Zircon, Sillimanite and Garnet minerals. Mining & Pre-Concentration Plant The method of mining will be carried out open cast mechanized mining method & refilling will be done concurrently, wherein Run-of-Mine is mined and advanced environmental friendly technology, the tailings generated from pre-concentration plant will be backfilled and afforestation on reclaimed land takes place simultaneously thus limiting the gap between mining and rehabilitation to pre-mining state to only a few months. Another unique feature of the above method is that water used as a medium of transportation and concentrations re-circulated and there is no water consumption except for the evaporation losses and leakages. The external water to make up this water loss also goes to recharge the area thus improving the water regime and vegetation of the area and nearby villages. In the proposed plant a relocatable/floating pre-concentration plant (PCP) moves/floats along with the advancing mining face. The ore is fed to the (PCP) plant with the help of dredgers and excavators/dumpers taking care that the water table of the area is not disturbed and water level is maintained above the MSL. The water gradient always towards the sea. Established norms being followed world wide for such type of mining along with recommendations of Central Ground Water Board of India for mining similar deposits in Tamil Nadu, Kerala and Orissa will be adopted. In the above mining method the ROM sand mined by dredging will be pumped to a Bunker/trommel screen module having 2 mm opening to remove all roots, pebbles and other debris. The clean sand will then mixed with water will be pumped to the pre-concentration plant with the state- ofart equipment s viz spirals, classifiers, screens would be used to concentrate minerals in the ROM into three to four mineral rich concentrates viz., Concentrate-1 containing Ilmenite, Rutile and Zircon. Concentrate-2 containing predominately Sillimanite and Concentrate-3 and 4 containing mainly Garnet. The pre-concentrates will be further pumped to a Mineral Separation Plant located at a distance from the PCP and the sand devoid of minerals called plant tailings will be simultaneously pumped back to the mined out areas. Slime separated in the plant with the help of thickeners will be used to cover the back filled tailings to support vigorous plantation in the currently barren sandy coastal deposit. 5

6 FIGURE-1 STUDY AREA MAP 6

7 PCP [PROPOSED FLOW CHART] Kuppli- Koyyam Mineral Sands Deposit-I, ROM Sand TROMMEL SCREEN Over size Waste Unders Primary Spirals Secondary Spirals Clearner Spirals Tailings Tailings Middlings Conc Middlings Conc Tailings Conc Conc MSP Concentrate MINE BACK FILLING 7

8 (vi) Availability of water, its source, Water Requirement: - Water requirement for the project is estimated at 800 m3/hour Source: - Nagavalli River WATER BALANCE DIAGRAM (EXISTING) Pedda Gadda river/bore wells 500 m³/hr (Makeup water) Pulping Area 100 m 3 /hr Pulping Area (250 m³/hr) Pulping Area 150 m 3 /hr Dewatering Cyclone (O/F) Pre Concentration Plant Deslimed Ore Dewatering Cyclone Dewatering Cyclone Tailings 200 m 3 /h Tailings 50 m 3 /h Thickener-II 100m3/h (U/F) Thickener-I 100m3/h (U/F) Settling Tank 50m3/h (U/F) Rejects to Mine Note: There is no consumption of water and make up water goes to re-charge the surrounding areas & nearby villages thus improving the water regime and vegetation. 8

9 (vii) Quantity of wastes to be generated (liquid and solid) and scheme for their management / disposal. Solid waste to be generated is free silica sand tailings from the pre concentration plant and mineral separation plant. These waste materials will be used for refilling and reclaiming the mined out lands. No liquid waste will be generated from the mining operations. Five year Block Period Total waste generation in MTPA First 5 Year Block 8.7 Second 5 Year Block 8.7 Third 5 Year Block 8.7 Total ) SITE ANALYSIS (i) Connectivity Nearest Town Nearest City Nearest District Head quarters Nearest Railway Station Nearest Airport Srikurmam (8.55 Km) Srikakulam (8.55 Km) Srikakulam (8.55 Km) Srikakulam Road Railway Station (25 Km) Visakhapatnam (75 Km) (ii) Land Form, Land use and Land Ownership Forest Land : ha Non-forest Land : ha. TOTAL : ha. Details of change in land use of the Mining Lease Area (Area in Ha.) S. No. Particulars Present Land use During scheme period Conceptual period 1 Area of excavation/refill/afforestation Storage for topsoil Overburden dump Mineral storage Infrastructure (workshop, 0.00 administrative building etc.) Roads Railways Green belt Area under Aqua Culture Effluent treatment plant Nallah/ River Township area/settlement area Others check dam & retention walls Area un-utilized Total Surface plan is shown in Figure-2. 9

10 FIGURE-2 SURFACE PLAN 10

11 (iii) Topography along with maps The mining lease area forms part of a barren sandy stretch with an elevation of 1-20 m above the mean sea level. (iv) Existing Land Use pattern and distances from forests, CRZ, etc The proposed AML area involves forest land of ha and 4 villages are existing in the ML area. However, Mining operations shall exclude the human habitation in the village area by providing safe zone around the villages and roads. Rivers Nagavali river- Adjacent Kadivalasa River km, SW Forests Kotapalem PF (0.5 km, SW) Kuppili PF (within ML area) Dharmavaram PF (within ML area) Srikakulam RF (11.6 km, NE) (v) Existing Infrastructure Road: The AML area is connected by a tar road connecting Srikakulam with places like Srikurmam temple, Kuppili Village over a stretch of 15 km. Railway: Srikakulam Road Railway Station (20.7 Km, NNE) (vi) Climatic data from Secondary Sources Secondary information on meteorological conditions has been collected from nearest IMD station at Kalingapatnam which is at a distance of 12.0 Km, SE from the plant site. IMD data for ambient temperature, relative humidity, wind speed and rainfall is given in the Table-2 below. TABLE-2 CLIMATE DATA KALINGA PATNAM Annual mean ambient temperature Max: c Min: c Highest temperature in a day C Lowest temperature in a day c Relative humidity Max: 86% Min: 68% Annual mean wind speed 11.2 kmph Rainfall Avg: 1068 mm (vii) Social Development & Infrastructure Availability Primary schools, village temples and primary health centres are existing in the nearby villages. 11

12 Sr.No Name of the Village EXISTING POPULATION DATA 2.0 MTPA, 1000.Ha mine Name of Households Population Male Female the Mandal 1 Kuppili Etcherla Koyyam Etcherla Dharmavaram Etcherla Bontalakoduru Etcherla Total Population Source-Census data ) Proposed Infrastructure (i) Social Infrastructure S.No Activity Village 1 Construction of Compound wall Srikurmam Temple 2 Construction of Shed at Annadana Satram Arsavalli temple 3 Construction of Hospital At Company Premises 4 Construction of Eye Hospital At Company Premises 5 Construction of Super Bazar on No Profit At Company Premises Basis 6 Construction of School for Bith English & At Company Premises Telugu Media 7 Supply of Tri Cycles to Physically Challenged In the Mining area Persons 8 Financial Assistance to the Poor Families In the Mining area who Underwent Family Planning Operations 9 Supply of Sports Kits in the villages In the Mining area (ii) Proposed Infrastructure Available Rest shelters, Drinking water & First Aid facilities will be provided within the lease area whereas Office Canteen, transport and others will be constructed out side the mining lease area in the close proximity. (6) Power requirement About 6 MW of power is required for the proposed sand mining operations, Pre- Concentration Plant and Mineral Separation Plan (7) Green belt development APMDC shall under take plantation activities in and around the ML area and on the backfilled reclamation land. Green belt will be developed 7.5 m wide along the periphery of the AML area. 8 Rehabilitation & Resettlement (R&R) Plan ML area is falling in the 4 villages. However, Mining operations shall exclude the human habitation in the village area by providing safe zone around the villages and roads. Hence, No R&R is involved. 12

13 9 Project Schedule & Cost Estimates (i) Likely date of Start of Construction and likely date of Completion The unit of the project is proposed to go into commercial operation (COD) in 24 months from the zero date. (ii) Estimated project cost along with analysis in terms of economic viability of the project. The proposed project cost is Rs. 200 Crores Sr. No Description Cost in Crores 1 Land cost expenditure Cost of infrastructure, Equipment, vehicles, Manpower, machineries, etc Environmental protection Socio-economic development 0.75 TOTAL Analysis of Proposal (Final Recommendations) Financial and Social Benefits The project will improve the socio-economic status of the society in the region by generating direct and indirect employment opportunities. The project will contribute additional revenue to the State & Central exchequers in the form of taxes, cess, etc. The anticipated positive impacts of the project are explained below: Human settlement is expected to increase after this project gets operational. In the long term, the project will have impact on the population growth due to migration of people from outside area. Indirect employment opportunities will also add to this. The literacy level of the project area is likely to increase as there will be influx of many educated people taking up jobs in the project, which is likely to result in establishment of better educational facilities. The impact of the project on the civic amenities will be minimal. Health care facilities will be developed for the employees of the proposed project. These medical facilities will be extended to surrounding villages. The project related construction activities will benefit the local populace in a number of ways such as supply of construction labourers skilled, semi-skilled and un-skilled, tertiary sector employment and provision of goods and services for daily needs including transport. The proposed project will provide employment to the skilled as well as unskilled persons. The local population will be given preference depending upon their suitability to the job requirement. Besides direct employment, indirect employment opportunities will also open up. The project will have positive impact in the region. Quality of life of the people will improve, which in-turn will improve the socio-economic conditions of the area. *********** 13

14 ANNEXURE I Details of change in land use of the Mining Lease Area. No. Particulars Present Land use During scheme period In Ha. Conceptual period 1 Area of excavation/refill/afforestation Storage for topsoil Overburden dump Mineral storage Infrastructure (workshop, 0.00 administrative building etc.) Roads Railways Green belt Area under Aqua Culture Effluent treatment plant Nallah/ River Township area/settlement area Others check dam & retention walls Area un-utilized Total ANNEXURE 2 KUPPILLI VILLAGE BLOCK AML DETAILS Sr. No Survey Number Status Of the Land Extent in Acres Extent in Hecters Remark Forest TOTAL

15 KOYYAM VILLAGE BLOCK AML DETAILS Sr. No Survey Number Status Of the Land Extent in Acres Extent in Hecters Pvt. Land Pvt. Land Govt. land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Govt. land Govt. land Pvt. Land Govt. land Govt. land Govt. land Govt. land Pvt. Land Pvt. Land TOTAL Remark KOYYAM VILLAGE BLOCK AML DETAILS Sr. No Survey Number Status Of the Land Extent in Acres Extent in Hecters Govt. land Govt. land D.patta land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Govt. land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land Pvt. Land TOTAL Remark 15

16 Sr. No 1 BONTHALAKODURU VILLAGE BLOCK AML DETAILS Survey Status Of Extent Extent Number the Land in Acres in Hecters 150 pvt. land TOTAL Remark DHARMAVARAM VILLAGE BLOCK AML DETAILS Sr. Survey Status Of Extent Extent No Number the Land in Acres in Hecters Remark Pvt. Land Govt. land Pvt. Land Govt. land Road Govt. land Pvt. Land Pvt. Land Govt. land Pvt. Land Govt. land Pvt. Land Govt. land Pvt. Land Pvt. Land Pvt. Land Pvt. Land TOTAL