IBM MANUAL FOR APPRIASAL OF MINING PLAN

Transcription

1 IBM MANUAL FOR APPRIASAL OF MINING PLAN

2 0. INTRODUCTION 01. The recent amendments in Mines and Minerals (Development & Regulation) (MMD&R) Act 1957 and Mineral Concession Rules (MCR), 1960 have been brought into focus the dynamic component of the Indian mineral legislation with special regard to the much needed impetus required for scientific development of mines, proper planning, conservation, environment preservation etc. 02. Under the MM(D&R) Amendment Act, 1986, a new thrust to the mineral development activity in the country has been given as per the provisions of section 5(2)(b) which requires that the application for grant of renewal of mining lease should be accompanied by a duly approved mining plan. Indian Bureau of Mines (IBM) has been authorized by the central govt. to approve mining plans. 03. The amended MCR, 1960 under rule 22(3)(e) specify the contents of mining plan which is required to include details such as extent of mineral body, geology, lithology, mineral reserves, extent of mechanization, plan of area indicating water course, water pollution etc. The mining plan thus indeed becomes an extremely vital document for scientific development of mineral deposits particularly since the applicant is required to carry out mining operations strictly according to the approved mining plan as per rule 22A of amended MCR and MCDR, 88. Rule 22B stipulates that mining plan should be prepared only by recognized persons who are duly qualified and experienced. The Controller General and Regional Controllers of Mines of IBM have been delegated powers to recognize experts for preparing mining plans. 04. In order to facilitate the officers of IBM in dealing with new responsibilities of approval of mining plan and recognition of qualified persons for preparing mining plans, this manual has been specially designed which gives necessary background information, procedure, details, outlines and guidelines. 05. In the first chapter on Amendments made in MM(D&R) Act and MCR, the relevant amendments are briefly outlines and are excerpted. 06. Chapter 2 on Recognition of persons to prepare mining plans sets out details of procedures followed in granting recognition/refusal to qualified persons for preparing mining plans under the amended MCR provisions. Explanation is given of the methodology of numerical notation of the registration number. 07. Exhaustive details governing the processing and examination of mining plans are given in Chapter 3 with regard to geology, opencast mine, underground mine, environment, mineral beneficiation. 08. Chapter 4 on Guidelines for scrutiny of mining plan gives useful guidelines for scrutiny of mining plans and lists but the aspects to be checked and examined. 09. Chapter 5 on guidelines for preparation of mine closure plan and final mine closure plan gives useful details for preparing the PMCP and FMCP with a basic objective of sustainable development both for the mines and for community living in that area.

3 1. AMENDMENTS MADE IN MM(R&D) ACT AND MCR 1.0 The MM(D&R) Act, 1957 was amended and notified on in Gazette of India Extra Ordinary Part II Section I,No.37 and is now called MM(R&D) Amendment Act, The Central govt. fixed as the date on which MM(R&D) Amendment Act, 1986 shall come into force. A number of amendments have been made in the (R&D) Act and consequently MCR have also been amended and notified on The different amendments relating to mining plans are discussed below: 1.1. AMENDMENTS IN MM(R&D) ACT Under MM(R&D) Amendment Act, 1986, section 5(2) of the Principal Act has been amended as below : Section 5(2) : No mining lease shall be granted by State govt. unless it is satisfied that; i) There is evidence to show that the area for which the lease is applied for has been prospected earlier and existence of mineral contents therein has been established. Provided that nothing in the clause shall apply to any area if such area has already been prospected by a Department or agency of the govt. and existence of mineral contents therein has been established. ii) There is a mining plan duly approved by central govt. for development of mineral deposits in the area concerned Now it is obligatory on the part of applicant to submit a mining plan duly approved by central govt The powers under section 5(2)(b) of MM(R&D) Act shall be exercised by Controller General, Chief Controller of Mines, Controller of Mines and Regional Controllers of Mines of IBM. The notification in this regard were issued by central govt. in Gazette of India, Part II, Section3, sub section (ii) on AMENDMENT IN MCR Consequent to amendment in Section 5 of MM(R&D) Act, the MCR has also been amended. Now under the amended MCR every application for grant or renewal of mining lease shall be accompanied by a mining plan duly approved by central govt. The amended rule 22 of MCR in this respect is given below : Rule 22(3)(i)(e) : A mining plan duly approved by central govt. the mining plan shall incorporate i) the plan of area showing extent of mineral body; spot or spots where excavation is tobe done in the first year and its extent; a detailed cross section and detailed plan of spots of excavation based on the prospecting data gathered by applicant or any other person, a tentative scheme of mining for the first five years of the lease; ii) details of geology and lithology of the area including mineral reserves of the area iii) the extent of manual mining or mining by use of machinery and mechanical devises

4 iv) the plan of area showing natural water courses, limits of reserved and other forest areas and density of trees, if any, assessment of impact of mining activity on forest, land surface and environment including air and water pollution, details of scheme of restoration of the area by afforestation, land reclamation, use of pollution control devices and such other measures as may be directed by the central or state govt. from time to time. iv a) Annual programme and plan for excavation from year to year for five years. iv b) Any other matter which the central govt may require the applicant to provide in the mining plan. Rule 22A : Mining operations to be in accordance with the mining plan 1) Mining operations shall be undertaken in accordance with mining plan duly approved by central govt. 2) A mining plan may be modified with prior approval of central govt. during operation of mining lease. Rule 22B : Mining plan to be prepared by recognized persons : 1) No mining plan shall be approved by Central govt. unless it is prepared by a qualified person recognized in this behalf by central govt. 2) No person shall be recognized by the central govt. for the purpose of sub rule (1) unless he holds a) a degree in mining engineering or a post graduate degree in geology granted by a university established or incorporated by or under a Central Act, a provincial Act or a state Act including any institution recognized by the University Grants Commission established under section 4 of UGC Act 1956 or any equivalent qualification granted by any university or institution outside India b) Profession experience of five years of working in a supervisory capacity in the field of mining after obtaining the degree. 3) A person recognized to prepare a mining plan may carry out modification of an existing mining plan. Rule 22BB(1A) : Vide this rule, every mining plan submitted for approval under sub-rule 1. Rule 22C : Grant of recognition by Central govt. 1) Any person possession the qualification and experiences\ referred to in sub rule (2) of Rule 22B may apply for being recognized as qualified person to the competent authority appointed for the purpose by the central govt. 2) The competent authority after making such inquiry as it deems fit, may grant or refuse to grant recognition and where recognition is refused, the competent authority shall record reasons in writing and communicate the same to the applicant. 3) A recognition shall be granted for an initial period of two years and shall be renewable for the like period; provided that the competent authority may refuse to renew recognition for the reasons to be recorded in writing after giving an opportunity of hearing to the person concerned.

5 4) An appeal shall lie to the central govt. against the order of competent authority refusing to grant or renew application for recognition. The Joint Secretary, Deptt of Mines has been authorized as an appealing authority under this sub rule. Explanation : For the purpose of this rule, CG and RCOM, IBM shall be deemed to be the competent authority Consequent to amendment in main text of MCR, the model Form I&J for grant and renewal of mining lease respectively have also been modified. The relevant information required in filling up Form I&J which have a bearing on preparation of mining plans are given below : Form I item 3 (xvi) Broad parameters of the mineral/orebody/bodies a) Strike length, average width and dip b) Wall rocks on hanging and foot wall sides. c) Whether area is considerably disturbed, geologically or is comparatively free of geological disturbances (copy of geological map of the area is to be attached) d) Reserves assessed with their grade(s) (chemical analysis reports of representative samples are to be attached) e) Whether the area is virgin. If not, the extent to which it has already been worked. In case there are old workings, their locations are to be shown on the geological map of the area. (xvii) Broad parameters of the mine a) Proposed date of commencement of mining operations b) Proposed rate of mineral production during first five years year wise c) Proposed rate of production when mine is fully developed d) Anticipated life of the mine e) Proposed method of mining (underground or opencast) i) If underground, method of approach to the deposit/mineral/ore whether through inclines or shafts ii) If opencast, the overburden to ore ratio and overall pit slope. f) Nature of land chosen for dumping overburden/waste and tailings (that is type of land, whether agriculture, grazing land, barren saline land etc) and whether proposed site has been shown on the mine working plan. Give also the extent of area in hect. set apart for dumping of waste and tailings. (xviii) A mining plan whether duly approved by Central govt. (to be attached with this application) Form J Item xc : A mining plan which shall include a) the plan of area showing nature and extent of mineral body, spot or spots where excavation is to be done in the first year and its extent, a detailed cross section and detailed plan of spot(s) of excavation based on prospecting data gathered by applicant, a tentative scheme of mining for first five years of the lease. b) The details of geology and lithology of the area and extent of manual mining and through machines

6 c) Annual programme and plan for excavation for five years and d) The plan of area showing natural water courses, limits of reserved and other forest areas and density of trees, if any, assessment of impact of mining activity on forest, land surface and environment including air and water pollution, details of scheme of restoration of the area by afforestation, land reclamation, use of pollution control devices. Vide GSR 743(E) dated 25/09/2004 amendment was made in the Mineral Concession Rules, 1960 by which State Government was empowered to approve the mining plan of open cast mines in respect of 29 non-metallic or industrial minerals in their respective territorial jurisdiction Now under MCDR 1988 also, the mining operations in any area has to be commenced in accordance with approved mining plan. The relevant rules in this respect are given below : 9. Mining plan : (1) No person shall commence mining operations in any area except in accordance with a mining plan approved under clause (b) sub section (2) Section 5 of the Act. (2) The Controller General or authorized officer may require the holder of mining lease to make such modifications in the mining plan referred in sub rule 1 or impose such conditions as he may consider necessary by an order in writing if such modifications or imposition of conditions are considered necessary a) In light of the experience of operation of mining plan; b) In view of change in the technological development. 10. Modification of Mining plan (1) A holder of mining lease desirous of seeking modifications in approved mining plan as are considered expedient, in the interest of safe and scientific mining, conservation of minerals, or for the protection of environment, shall apply to the CG setting for the intended modifications and explaining reasons for such modifications. (2) The CG or authorized officer may approve the modifications under sub rule 1 or approved with such alterations as he may consider expedient. Vide CCOM Circular No.10/2006 dated , RCOM/OIC were empowered to dispose off applications seeking modifications and approval of modified MP/SOM. 11. Mining plan to be submitted by Existing lessee (1) Where mining operations have been undertaken before commencement of these rules without an approved mining plan, the holder of such mining lease shall submit a mining plan within one year from the date of commencement of these rules to RCOM for approval. (2) If a mining lease holder has not been able to submit mining plan within the specified period for the reasons beyond his control, he may apply for extension of time giving reasons to the following authorities; (a) to the RCOM for extension of time upto six months;

7 (b) (c) To COM for extension of time exceeding six months but not exceeding one year; To CCOM for extension of time beyond one year. (3) The RCOM, COM and CCOM as the case may be, on receiving the application made under sub rule 2 may on being satisfied, extend the period for submission of mining plan for the period mentioned in clauses (a) (b) or (c) of the said sub rule. (4) The RCOM may approve plan submitted by the lessee under sub rule 1 or may require modifications to be carried out in the plan and lessee shall carry out such modifications and resubmit the modified plan for approval. (5) The RCOM shall, within a period of 90 days from the date of receipt of mining plan or modified mining plan, convey his approval or disapproval to the applicant and in case of disapproval, he shall also convey reasons for disapproving the said mining plan or modified mining plan. (6) If no decision is conveyed within stipulated period under sub rule 5, the mining plan or modified mining plan, as the case may be, shall be deemed to have been provisionally approved and such approval shall be subject to final decision whenever communicated. (7) The mining plan submitted under sub rule 1 shall be prepared by a recognized person. 12. Review of mining plan. (1) Omitted. (2) The owner, agent, mining engineer or manager of every mine shall review the mining plan as prescribed under sub rule 1 and submit a scheme of mining for next five years of the lease to RCOM for approval. (3) The scheme of mining shall be submitted to RCOM at least 120 days before expiry of five years period for which it is approved on the last occasion. (4) The RCOM or authorized officer shall convey his approval or refusal to scheme of mining within 90 days of the date of its receipt. (5) If approval or refusal of scheme of mining is not conveyed to mining leaseholder within stipulated period, the scheme of mining shall be deemed to have been provisionally approved subject to final decision whenever communicated. (6) The provisions of rule 9,10 and 13 shall apply to the scheme of mining in the same way as applicable to the mining plan. (7) Every scheme of mining submitted under sub rule 2 shall be prepared by a recognized person or a person employed under clause (b) of sub rule 1 of rule Mining operations to be in accordance with mining plans (0) Every mining lease holder shall carry out mining operations in accordance with approved mining plan with such conditions as may have been prescribed under sub rule 2 of rule 9 or with such modifications, if any, as permitted under rule 10 or mining plan or scheme approved under rule 11 or 12 as the case may be. (1) If mining operations are not carried out in accordance with mining plan as referred under sub rule 1, RCOM or authorized officer may order suspension of all or any of the mining operations as may be necessary to restore the conditions in the mine as envisaged under said mining plan.

8 1 [23A. Mine closure plan : Every mine shall have mine closure plan which shall be of two types; (i) A progressive mine closure plan; and (ii) A final mine closure plan. 23B. Submission of progressive mine closure plan : (1) The owner, agent, manager or mining engineer shall in case of fresh grant or renewal of mining lease, submit a progressive mine closure plan as a component of mining plan to RCOM or officer authorized by state govt. in this behalf as the case may be. (2) The owner, agent, manager or mining engineer shall in case of existing mining lease, submit a progressive mine closure plan as a component of mining plan to RCOM or officer authorized by state govt. in this behalf as the case may be for approval on or before (3) The owner, agent, manager or mining engineer shall review progressive mine closure plan every five years from the date of its approval in case of existing mine or from date of opening of mine in case of fresh grant or from the date of renewal of lease, as the case may be, and shall submit to RCOM or officer authorized by state govt as the case may be, for its approval. (4) The RCOM or officer authorized by state govt as the case may be, shall convey his approval or refusal of progressive mine closure plan within 90 days of its receipt. (5) If approval or refusal of progressive mine closure plan is not conveyed to the owner, agent, manager or mining engineer of the lease within stipulated period, the progressive mine closure plan shall be deemed to have been provisionally approved subject to final decision whenever communicated. 23C. Submission of final mine closure plan : (1) The owner, agent, manager or mining engineer shall submit a final mine closure plan to RCOM or officer authorized by state govt. in this behalf as the case may be, for approval one year prior to proposed closure of the mine. (2) The RCOM or officer authorized by state govt as the case may be, shall convey his approval or refusal of final mine closure plan within 90 days of its receipt to the owner, agent, manager or mining engineer. (3) If approval or refusal of final mine closure plan is not conveyed to the owner, agent, manager or mining engineer of the lease within the period specified in sub rule 2, the final mine closure plan shall be deemed to have been provisionally approved subject to final decision whenever communicated. 23D. The modification of mine closure plan : (1) The mining lease holder desirous of seeking modifications in approved mine closure plan shall submit to the CG or officer authorized by state govt. in this behalf as the case may be, for approval setting forth intended modifications and explaining reasons for such modifications. (2) The CG or officer authorized by state govt as the case may be, may approve the modifications submitted under clause 1 or approve with such alterations as he may consider expedient. 23E. Responsibility of mining lease holder : (1) The owner, agent, manager or mining engineer shall have responsibility to ensure that protective measures contained in mine closure plan referred

9 to in this rule including reclamation and rehabilitation work have been carried out in accordance with approved mine closure plan or with such modifications as approved by RCOM or officer authorized by state govt as the case may be, in that behalf under this rule. (2) The owner, agent, manager or mining engineer shall submit to RCOM or officer authorized by state govt. in this behalf as the case may be, a yearly report before 1 st July every year setting forth extent of protective and rehabilitative works carried out as envisaged in approved mine closure plan and if there is any deviation, reasons thereof. 23F. Financial Assurance : (1) Financial assurance has to be furnished by every leaseholder. The amount of financial assurance shall be Rs.25000/- for A category mines and Rs.15000/- for B category mine per hect of mining lease area put to use for mining and allied activities. However, minimum amount of financial assurance to be furnished in any of the forms referred to in clause 2 shall be Rs.2 lakhs for A category mines and Rs.1 lakh for B category mines. Provided that a leaseholder shall be required to enhance the amount of financial assurance with increase in area of mining and allied activities; Provided further that where a leaseholder undertakes reclamation and rehabilitation measures as part of progressive closure of mine, the amount so spent shall be reckoned as sum of financial assurance already spent by leaseholder and total amount of financial assurance to be furnished by the lessee shall be reduced to that extent; (2) The financial assurance shall be submitted in one of the following forms to RCOM or officer authorized by the state govt in that behalf as the case may be or any amendment to it a) letter of credit from any scheduled bank b) Performance or surety bond c) Trust fund build up through annual contribution from revenue generated by mine and based on expected amount sum required for abandonment of mine; or d) Any other form of security or any other guarantees acceptable to the authority. (3) The lessee shall submit financial assurance to RCOM or officer authorized by the state govt in that behalf as the case may be before executing mining lease deeds. In case of existing lease, the lessee shall submit financial assurance along with progressive mine closure plan. (4) Release of financial assurance shall be effective upon notice given by the lessee for satisfactory compliance of provisions contained in the mine closure plan and certified by RCOM or officer authorized by the state govt in that behalf as the case may be. (5) If the RCOM or officer authorized by the state govt in that behalf as the case may be has reasonable grounds for believing that protective reclamation and rehabilitation measures as envisaged in the approved mine closure plan in respect of which financial assurance was given has not been or will not be carried out in accordance with mine closure plan either fully or partially, the RCOM or officer authorized by the state govt in that behalf as the case may be shall give the lessee a written notice of his intention to issue orders for forfeiting the sum assured at least 30 days prior to date of order to be issued. (6) Within 30 days of receipt of notice referred in sub clause 5, if no satisfactory reply has been received in writing from the lessee, the RCOM or officer authorized by the state govt in that

10 behalf as the case may be shall pass an order for forfeiting surety amount and a copy of such order shall be endorsed to concerned state govt. (7) Upon issuance of order by RCOM or officer authorized by the state govt in that behalf as the case may be, concerned state govt. may realize any letter of credit or bond or any other surety, guarantee provided or obtained as financial assurance for the purpose of performance of protective, reclamation, rehabilitation measures and shall carry out those measures or appoint an agent to do so. The guidelines for preparation of PMCP/FMCP are annexed as Annexure : to be inserted here 2.0 RECOGNITION TO PERSONS TO PREPARE MINING PLANS 2.0 RELEVANT AMENDMENTS As per amended rule 22B(1) of MCR, a mining plan is to be prepared by a recognized person who satisfies the qualification and experience stipulated in rule 22B(2) of MCR. Under rule 22C, the CG and RCOM have been declared as competent authority to grant/refuse recognition. 2.1 Prescribed forms for applying for recognition : For seeking recognition as qualified person under rule 22C, prescribed application forms are Form A and Form B. Form A is for individual applicant and priced at Rs.10/- (annexure I). Form B is for organization applicant and priced at Rs.50/- (Annexure II). There are six copies of enclosures to Form B for the bio data of upto six key persons. 2.2 PROCUREMENT AND SUBMISSION OF FORMS : An applicant may obtain on payment his application form from the regional office under whose jurisdiction the place he normally resides, falls The completed application may be submitted to the RCOM concerned from where application form was obtained. 2.3 PROCESSING OF FORMS : The RCOM may examine the application in accordance with Rule 22(C) of MCR and amendments made from time to time The RCOM after complete satisfaction if necessary by personal interview may accord recognition to applicant or refuse recognition as the case may be. The reasons of refusal are to be recorded in writing. In case of renewal of registration, an opportunity of hearing may be given to the person concerned and reasons of refusal may be also recorded in writing. Decision regarding recognition should be recorded in the space provided for office use only at the end of Form A&B. If necessary, separate sheets may be attached for reporting reasons for refusing grant of recognition The refusal may be communicated to the party in form of letter given in Annexure III. The reasons for refusal shall also be recorded in the letter The recognition may be granted in the certificate given at Annexure IV A and IV B for individual and organization respectively. The recognition granted is valid only for two years.

11 2.4 PROCEDURE FOR GIVING REGISTRATION NUMBERS Registration number should be given containing the following segment of information in the order a) A notation RQP indicating that it is for recognition for the qualified persons followed by. b) The regional office code of Regional office which has granted recognition (Annexure V) followed by c) The running serial number of recognized person in three digits running from 001 to 999 followed by d) Year of registration and validity (10 years) e) Whether the applicant is individual or an organization Thus in respect of first qualified person recognized the number would be as follows : RQP/Regional office code/001/year of registration/a. The serial number mentioned in item (c) above shall be common for individual and organization both. 2.5 An application shall be disposed off by the RCOM concerned within 30 days from the date of receipt of complete application. All clarifications must be sought at one time. 2.6 A copy of the order granting recognition or refusal should simultaneously be endorsed to CG, CCOM and COM concerned for information. 2.7 While forwarding letter of recognition to an applicant, a proforma of annual return (Annexure VI) should be endorsed which he will be required to submit giving information and particulars of the mining plan prepared by him during the year under review. This annual report is to be submitted by 31 st July for the year ending 31 st March. A copy of outline of mining plan (Annexure VII) will also be forwarded to him specifically mentioning that it is merely for his general guidelines and is merely indicative and not exhaustive. The recognized person may also be advised to submit a certificate in regard to correctness of data and compliance of Mines Act and Rules (Annexure VIII) alongwith the mining plan. 2.8 A monthly report shall be submitted to the CG every calander month in the proforma given in Annexure IX.A copy of the same may also be sent to CCOM and concerned COM. The monthly report must reach to th CG by 5 th of the following month. Any clarification of advice in this aspect may be sought from COM, CCOM or CG as the case may be. Additionally the following aspects are to be observed by the RCOM i) A key person in Form B must be a whole time employee of the company ii) A company should submit names of at least two key persons with requisite qualification and experience in Form B. iii) The authorized signatory of Form B should also submit a declaration given in Annexure X iv) It is possible that a key person in the employment of applicant firm, association, company etc may leave the firm and another person(s) holding requisite qualification and

12 experience who could be regarded as suitable key person may join. Therefore while issuing the certificate of recognition to the firm, association or company, forwarding letter should convey instructions that the company shall inform the RCOM by a letter in duplicate within one week of the change, the name of key person dropped and proposed to be added. It may be made clear to the company that in case of default, certificate of recognition would be deemed as invalid. The RCOM should convey his decision regarding approval of proposed key person(s) in his reply to company s letter. The duplicate copy of company s letter and reply of RCOM should be sent forthwith to the CG for information. v) It shall also be the duty of key person(s) to inform the RCOM about their leaving employment of the company who had mentioned their names as key persons in the application for grant of certificate of recognition as qualified persons to prepare mining plans. vi) While granting certificate of recognition, forwarding letter should also mention that any mining plan prepared by the company and submitted by authorized persons should also bear the signatures of key persons who have contributed to preparation of mining plan. vii) The names of key persons and their qualifications should also be mentioned on the reverse side of the certificate of recognition. 2.9 All regional offices should maintain a central register of registration of qualified persons as per Annexure XI All instructions issued by the CG or CCOM from time to time shall be complied by the RCOM. Processing and Examination of Mining plans 3.1 General It is now obligatory on the part of applicant to submit an approved mining plan along with a mining lease application submitted for grant or renewal in Form I or J under Section 5(2) of Mines and Minerals (Regulation and Development) (MMRD) Act and rule 22 and 24(a) of MCR However as per rule 26 of MCR, application for grant of renewal of mining lease made under Rule 22 or 24(a) shall not be refused by the state govt. only on the ground that Forms I and J is not complete The mining plans are submitted to IBM for approval as Central Govt. has vested this power to CG/CCOM/COM/RCOM of IBM vide Notification No.445(E) dated (Annexure XII) The mining plan pertaining to all minerals excluding sand used for stowing purpose in coal mines and minerals mentioned in rule 2 of MCDR, 1988 shall be considered by IBM for approval The mining shall be prepared by the recognized qualified person by following outlines and guidelines (Annexure VII and XIII) as far as possible. The mining plans should be scrutinized strictly with regard to their adequacy in respect of mineral conservation and environment management plan as the essential purpose of mining plan is to ensure scientific and systematic mining and prevention of degradation of environment to the maximum extent practically possible The contents of mining plan of small mines which constitute majority may be far less than content of mining plans of large mines, even though the outline followed may almost be the same.

13 The distinction between small and large mines should be kept in view while scrutinizing the mining plans. Small mines may have nothing to mention against some of the items of outline like air, quality analysis, noise/vibration control studies, geo-technical/slope stability studies etc The mining shall be initially submitted in draft form and in two copies by the party to concerned regional office along with processing fee of Rs.1,000/- per sq.km The regional office shall issue a receipt of draft mining plan to the party in the proforma given in Annexure XIV One copy of mining plan will be retained in the regional office and one copy will be returned totheparty along with suggested modifications/alterations within 30 days from the date of its receipt. All clarifications from the party shall be sought in one lot A specific period should be givento the party for submission of modified mining plan failing which the mining plan should be rejected. However, one or two grace periods can be given for submission depending on merit After modification, the party will submit five copies of mining to be dealt with as follows: i) One copy to be sent to the concerned Regional Director of Mines Safety. ii) One copy to be sent to the concerned COM iii) One copy for use of regional office. iv) One copy to the concerned DGM of the state; and v) One copy to be returned to the party duly approved and authenticated by the COM/RCOM/State authorities as the case may be. Scrutiny of Mining plans All the draft mining plans shall be initially scrutinized by the regional office. For public sector and mechanized mines, following further procedure should be adopted. Mining plan of fully mechanized (Cat A) mines: The RCOM will send draft scrutiny letter to the COM concerned. The COM will issue scrutiny letter after modification, if any, to the party within 10days. Efforts should be made to communicate scrutiny of the draft mining plan to the party within 30 days For convenience of scrutinizing officer, general guidelines in respect of geology, opencast working, underground working, environmental management plan and beneficiation are given in Chapter The approval of mining plan of all mines except fully mechanized Cat A mines as discussed above will be done by the RCOM In the regional office where RCOM is not in position (either the incumbent is on long leave or posting is not made), the case will be duly examined by the officer in charge and referred to the COM concerned for disposal.

14 3.3 Site Inspection The mining plan of virgin areas should be approved only after site inspection is made along with the representative of applicant. The adequacy of data and correctness of mining plan should be checked at site. Site inspections should be made by RCOM/DCOM as the case may be. However in case of complex geological structure of the area, the RCOM/DCOM may associate SMG In case of mining plans submitted for renewal of lease, earlier office records should also be consulted, specially to check compliance of suggestions regarding exploration, environment protection measures etc The site inspection report should be submitted to zonal office in duplicate along with final conclusion of the inspecting officer. 3.5 Approval of Mining plan : Only 90 days will be allowed for approval/rejection of the mining plan from the date of receipt of fresh mining plan The approval/rejection of mining plan should preferably be on the prescribed format (Annexure XV and XVI) 3.6.Endorsement of Correspondence : A copy each of all the correspondence with the party and reply of the party to RCOM/COM should be endorsed to the COM for information. 3.7.Submission of periodic returns : A monthly report of mining plans should be submitted to the CG for every calendar month in the format Annexure XVII A and XVII B and it should reach his office by 5thof the following month. The CG,IBM will send monthly report of mining plan and grant of recognition under rule 22 C of MCR, 60 the Ministry in the format Annexure XVIII A and XVIII B respectively. 3.8.Maintenance of register/control chart: All regional/zonal offices should maintain a control chart/register of status of approval of mining as per Annexure XIX. Any clarifications/advices in regard to mining plan may be sought from COM/CCOM/CG as the case may be. And all instructions issued by them from time to time should be complied with by regional/zonal office Miscellaneous : All endeavor should be made by IBM to dispose off the mining plan within 90 days excluding the time taken by the party for modification, preparation of supplementary note etc. A model activity chart for processing of mining plan is enclosed at Annexure XX. 4.0 Guidelines for scrutiny of Mining plans 4.1 Geology and Reserves Physiography: The aspects to be looked into are the relief of terrain, drainage pattern, vegetation, climatic features, rainfall data and status of the area with regard to accessibility along with toposheet number and latitude disclosed by the area applied for Geology: Contoured surface geological map on a scale of 1:2000 minimum should be examined for all features detailed below :

15 i) Disposition of lithological units with clear nomenclature and their descriptions. ii) Contracts traced or inferred iii) Attitudes like dip and strike, joints should be available in adequate numbers. iv) Structural features such as folds, faults and their attitudes v) Delineation of mineralized/ore zones Details of Exploration already carried out i) Information on exploration already carried out in the area with regard to location of pits, trenches, boreholes, exploratory mine workings like edits, shafts, inclines, old workings, etc should be shown on geological plan mentioned above. These should accompany suitable longitudinal and transverse geological sections, on a minimum scale of 1:2000 for opencast mines depending upon the complexity of deposit and variation of grade. Sections are to be prepared using borehole/pit/trench/ lithologs. ii) Lithologs of pits, benches, boreholes and other exploratory workings along with sampling data should be given showing locations of samples and their chemical analysis results. Recovery and tonnage factor may be calculated from ore actually produced from pits and trenches. iii) Geological plans of all underground exploratory workings with assay data should be available on a suitable scale, minimum scale being 1:1000 iv) Geological longitudinal sections and transverse sections at 30m interval and above depending upon extent, complexity of deposit and variation of grade on scale 1:1000 are also to be enclosed for underground mines. v) Details of geophysical and geochemical exploration carried out if any (a) Exploration proposed to be carried out (in case adequate total reserves is not established for the tenure of lease) i) The scheme of exploration should be consistent with the production programme indicated by applicant and should include the quantum of work with anticipated results. ii) The exploration details should including pitting, trenching, drilling and exploratory mining wherever necessary. All such proposed exploratory workings should be shown distinctly on the geological plan. iii) The proposed quantum of exploration should be thoroughly examined taking into account exploration work already carried out, if any to ensure the degree of confidence of reserves for entire lease period Method of Estimation of reserves : The parameters considered for reserve estimation : i) Critical dimension of orebody/ies based on exploration data ii) Critical examination of grade characterstics iii) Cut off grade and delineation of ore shoots or mineralized zones iv) Adequate determinations of bulk density. v) Basis of categorization of reserves into proved, probable and possible reserves based on the degree of insurance vi) Method/s adopted for making ore reserve estimation should be decided on the merits of deposits at lest two standard method should be adopted as a check to achieve near accurate estimates.

16 Geological reserves and grades : Taking into account all data obtained from exploration of surface, sub surface geological features etc and irrespective of cut off that may be considered for estimation of mineable reserves purely on the basis of geological consideration total insitu reserves available in the deposit with approximate grade will form the geological reserves from which mineable reserves should be given. Further, reserves should be classified as per United Nations Framework Classification (UNFC). The mineable reserves of proved and probable category should sustain atleast for five years. 4.2 Guidelines for Scrutiny of opencast scheme/mines : Justification for opencast mining vis-à-vis configuration of deposit and nature of ore body and wall rocks Check mineable reserves considering various barriers, roads, canals, buildings, human settlements etc Check production level vis-à-vis reserves allowing a maximum period of 50 years for exploitation Verify yearly pit plans with proposed year wise development and production for first five years for correctness and feasibility, keeping proposed mining system, machinery and man power in view. The following points have to be looked into in particular; i) Appropriate bench heights and widths ii) Number of pits and their necessity in relation to concentration of workings iii) Accessibility for transport from various working benches. iv) Grade control considering quality of production and blending possibility v) Provision of sump vi) Distinct benching in ore and overburden Check norms of performance for drilling, blasting, loading, etc both for mean and machinery. For this purpose thumb rules may be used (see 4.2.9). If there is human settlement or buildings nearby, ask for ground vibration and noise level study Check for standby provisions Check roughly ultimate pit limit keeping an ultimate slope of 35o to 65o depending upon nature of wall rocks. Based on either the data submitted by party or site visit, check up if geo technical investigations are considered necessary for slope design. If so, advice the party to carry out such investigations. This will not be necessary in simple cases where stability problems are not anticipated Check location of waste/subgrade dumps/stacks, buildings etc in relation to ultimate pit limit and mineralisation of the area. The dump should preferably be on non mineralized area and out of ultimate pit limit Thumb rules of performance of common mining machinery and power factor in different rock Mining Machinery

17 Drills Type Size Performance/shift Jack Hammers 33mm 30 to 45 mtr Wagon drill 100mm 25 to 36 mtr Drill master I.R. 150mm 20 to 30 mtr Drill master I.R. 225mm 20 to 30 mtr Norms of air consumption Jack hammers 3m3 Wagon drills 6m3 Large dia blast hole drill 150mm 10m3 -do- 225mm 15m3 Loaders Dumpers Rope shovel 1.9m3 750 to 1000 tonnes -do- 4.6m to 3000 tonnes Hydraulic shovel 2.3m to 1500 tonnes -do- 3.0m to 1800 tonnes 1.5 km haul distance 25 tonnes 400 tonnes 0.5 km -do- 35 tonnes 2000 tonnes 2.5 km -do- 35 tonnes 500 tonnes Power Factor (tones of rock/kg of explosive) Type of drill used Mineral Jack hammers Deep hole blast Iron ore 4 to 6 5 to 8 Limestone 6 to 8 9 to 10 Note : The above figures may be treated as only rough guides. These should be modified on gaining experience. 4.3 Guidelines for Scrutiny of underground mines Specific reasons and factors for adopting underground mining a) Examine details furnished for jurisdiction or underground mining so as to come to definite conclusion. b) Whether production envisaged is commensurate with mineable reserves. c) Examine whether mining lease area covers sufficient dip side of deposit so that mines can be extended reasonably upto maximum possible workable limit in future.

18 4.3.2 Mineral reserves and anticipated life of mine : While checking exploration data, examine whether demonstrated reserves are adequate for at least 5 years and whether total reserves for the whole lease period have been submitted. 4.3 Plans and sections : i) Surface Geological Plan : All plans and sections submitted should be as per MMR and MCDR. Examine for the scale of plan. Examine whether all important geological features, contours, HFL, borehole location and all old workings have been shown. ii) Longitudinal and Transverse Section : Longitudinal section should cover proposed mine area and areas beyond. Transverse sections submitted should be at 30 to 100m intervals and should be prepared along the future of deposit. Explanatory Note : These plans and sections will also help in checking location of mine entries, e.g. distance between two outlets and locations above HFL and position with respect to any disturbed. As per MMR, surface cover above first level should be at 16m. This should be checked. Both longitudinal and transverse sections shall indicate level intervals, winze intervals. Level and intervals should not be too close Size of development, size of pillars should be such that working remain stable during development and stoping stages Size of level/winzes/raises/pillars : They should be commensurate with MMR and MCDR and should also take into account size of equipment to be used; pillars should be regular in size and shape in general and should be stable Leval and Winzes intervals : They should not be too close which virtually amounts to partical stoping and should not be allowed. We may ask for justification in cases of doubt Examination of proposed mining method : Here examine the workability of deposit and technical viability of the proposal submitted Year wise development in ore and waste for first five years : Proposed developments should be shown in plans and sections for every year in different colours preferably Year wise production for five years, proposed rate of production when fully developed : This may include stoping production also, if any Proposal for assay plan : If there is no proposal, insist for it whenever required e.g. base metals, gold, mica etc Whether any data on geo-mechanical properties of ore and adjoining rocks have been furnished and whether the same have been utilized in designing method of development and stoping : Examination of geo mechanical properties may be required for determination of size of drives and pillars in case of various minerals e.g. rock salt, soapstone, chromite etc Stoping proposals : Proposal for stoping and outline of proposal of mining beyond five years: The following may be examined

19 a) Area covered under proposed stoping b) Justification for the method suggested c) Whether broad limit of stoping has been shown on plans and sections. d) Whether any cut off grade has been adopted. It needs examination whether minimum has been considered e) Proposed recovery (% extraction) from stoping suggested whether it is optimum? f) Dilution factors and grade control problems g) Any proposal for extraction of remanant pillars e.g. crown, sill etc. h) Minimum rate of development should be ensured in the mine while proposing for stoping. i) In case of cut and fill stoping, source of fill material and nature of fill material (e.g. toxic etc) j) Whether any surface subsidence has been visualized and if so, whether precautionary measures have been suggested. Explanatory Note : We may not, however, go into much details for examining of stoping while submitting mining plan as in any case, each stoping proposal has to be submitted statutorily under MCDR and cleared. As and when the mine has actually been developed for stoping, the proposal will be thoroughly examined. Therefore for the purpose of mining plan, we may be satisfied with reasonable stoping proposal outline submitted System of Winding : I depth of shaft is more than 60m, check if provision of man winding is provided Mine Ventilation : Adequacy of ventilation arrangement may be examined Extent of Mechanization : Whether different items of equipment provided are adequate including standby, if any to handle the tonnage to be mined Blasting : a) Whether drilling and blasting practices have been indicated separately for development and stoping b) Examine adequacy and efficiency of drilling blasting programme. c) Whether provisions for underground stoppage of explosives made, if any are according to explosive rules. d) Whether latest technology of drilling and blasting has been proposed Mine Drainage : Adequacy of pumping capacity may be provided Disposal of waste : Examine whether the rate of waste/subgrade mine generation is furnished and proposed to be taken out of mine regularly and separately stacked. Whether holding capacity of dumping site is adequate Reclamation of old working : Proposals for reclamation of old workings and sealing abandoned mines need be examined Safety Aspects : The following special points on safety aspects may be examined a) RL of collar of entry points in relation to higher flood level in the area.

20 b) Whether 7.5m safety barrier along mine lease boundary has been considered c) Whether minimum of 13.5m distance between 2 shafts/inclines has been provided. d) Whether adequate size of shaft/pillars has been provided for stability during whole lease period e) Whether at least 16m surface cover is provided before opening 1 st level. f) Whether there is any presence of old working/water logged areas within the area or within 60m distance from boundary. g) Precautions to be taken for approaching old workings, if any. 4.4 Guidelines for scrutiny with respect to environment : Check whether the key plan in toposheet contains information as; Boundary of mining lease and adjoining area within 5 km. and also if there are any important features beyond 5km but in the vicinity preferably within 10km. If the information furnished in the key plan is not adequate, check it from other source and by reference to toposheet from the number furnished by applicant. Important features will include; a) human settlement with population b) rivers, dams, estuary, sea c) Sanctuary, national parks, tourist spots and religious places d) Railway line, national/state/district highway Check whether any court order/govt order/statutory restrictions have been imposed prohibiting mining operations in the area. In that event, mining plan will be considered subject to these stipulations. In case of any doubt, collect additional information, clarification from the concerned authorities Baseline Information Existing Land use pattern : Check existing land use pattern and ownership etc from the details furnished against item 2.6 of the outline of mining plan. Check up whether different categories of existing land use pattern shown or stated such as agricultural land, forest land, grazing land, waste land etc. In case of agricultural land, cropping pattern may be ascertained Water regime : Check whether information on surface drainage system has been furnished on key plan as well as on surface plan/geological plan and fluctuations in the approximate discharge during monsoon and dry season. Check availability of information on water table and its seasonable variation. Examine information on water quality. For keeping hydrological balance, measures proposed should be examined and watercourse should be retained in relation to their specific use in the area for human and other consumption. Special check should be made so that excavation due to mining should not affect adversely the quality quantity and water resources in the area. Check whether abatement by chemical addition and by dilution and by suitable treatment including monitoring measures have been proposed or not. Effluents from beneficiation plants should be proposed to be treated and given in detail in beneficiation plant proposals.