PRE FEASIBILITY REPORT ____________________________________________________________ FOR Proposed Silica sand and Quartzite Mine over an Extent of 174.83 Hectares, In Sy. No.894 of Uppaluru Village, Muddanur Mandal, Kadapa District, Andhra Pradesh ____________________________________________________________ Submitted To Ministry Of Environment And Forest, GoI, New Delhi. Submitted By ________________________________________________________________________________ SHAIK JAMAL VALI Farm House,RTP Road, Near D.N.Palli Village, Muddanu , Kadapa (A.P). PRE-FEASIBILITY REPORT 1.0 INTRODUCTION SHAIK JAMAL VALLI , has applied for grant of mining lease for Silica Sand and Quartzite over an extent of 174.83 Hectares in Survey Nos. 894 of Uppaluru Village, Muddanuru Mandal, Kadapa District of Andhra Pradesh. Based on the recommendation of the Director of Mines and Geology, the Government of Andhra Pradesh has proposed to grant Mining lease for quartzite/ Silica sand with a request to submit the approved mining plan vide GOVT. Memo No 19367 / MIII(1)/2007-1, dated: 16.12.2008. For this purpose a mining plan has been prepared and obtained approval from Joint Director of Mines & Geology, Cuddapah Zone vide their approval letter no. 918/MP – YGL/2009 Dated 09/02/2009. Lessee proposes to produce Silica Sand and Quartzite @ 31151 tonnes per annum and the mining activity will be opencast manual mining without using drilling & blasting. The total cost of the project is 51.50 Lakhs only 1.1 OBJECTIVE OF THE STUDY To know the feasibility of the project, study is being worked out for which lessee applied for the grant of lease to mine 31151 TPA of Silica Sand and Quartzite. 1.2 SCOPE OF THE STUDY • Cost of Project Total investment in this project by the applicant will be around Rs. 51.50 Lakhs • Availability of land The mining operations will be within the proposed ML area of 174.83 Ha, for which the lessee has obtained necessary approvals from the consented depts. 1.3 MINING PROCEDURE Mining is being worked by manual opencast method by using drilling & blasting. The Mining operations are proposed by forming of 3.0m height bench by forming 2slices of 1.5m height each from 260 MRL. 1.3.1 Reserves & Life of Mine • Estimated Mineable Reserves : 42,63,894 tons • Expected average rate of production/year : 31151 TPA 1.3.2 Extent of Mechanization Elaborate mechanization need not be required, because all the mining operations would be manual, mechanization is thus limited to drilling of shot holes of blasting by using jack hammer drills powered by portable air compressor. The mine will be operated by manual opencast method by using jack hammer drilling and blasting will be done by using slurry explosives & detonators. 1.3.3 Waste Generation Here the waste will be in the form of removal of top skin on the mineral and fine sand with silty soil which is around 10% that generates during the recovery of Mineral i.e. 3115 TPA of mineral waste is expected 1.3.4 Use of Minerals The Silica Sand and Quartzite produced from this mine will be sold to local & non local buyers. There is no proposal for mineral beneficiation. 1.3.5 Transportation Trucks will be hired for transporting ore to the buyers point. 1.3.6 Site Services Office Canteen, Rest shelters, Drinking water & medical facilities, transport and other are proposed to be constructed in the designated area of 10m2. 1.3.7 Employment Potential The strength of employees would be around 24 1.4 PROJECT DEVELOPMENT AND EXECUTION 1.4.1 Resources Required • Man Power Mostly the labors will be recruited from weaker section of the local surrounding area. • Land Requirement & Land use pattern The land use pattern for the mine lease is given in Table-1. Table – 1 Land use pattern of ML Area Sr. No. Type of Land Use Area of Land use (Ha) As at the end of planned period of 5 years 1 Area Occupied by the proposed working 1.456 2 Area Occupied by waste dump 0.34 3 Area Occupied by afforestaion 0.15 4. Area Occupied by site services 0.003 5. Area Occupied by magazine building 0.001 6. Area Occupied by stack yard 0.09 7. Remaining area Total 172.79 174.83 The remaining area of 172.79 Ha. is used for future purpose • Water Requirement Water consumption is around 10.0 m3/day. The ground water will be drawn from bore well for water requirement • Permits Required 1. Consent for Establishment form the State Pollution Control Board 2. Environmental clearance needs to be obtained. 1.5 FINANCIAL FEASIBILITY Capital investment for Mining and Environmental Management (Environmental Control, Social Development, etc.) : Rs. 51,48,750 Say 51.5 Lakhs Consideration of per ton working cost is given below: Recurring Cost (Rs./MT) Expenditure on cost of mining Expenditure for socioeconomic development Expenditure for Occupational Health and Safety Expenditure for Environmental Management Total : Rs. 744 : Rs. 25.8 : Rs. 18.0 : Rs. 48.0 : Rs. 835.8/- Value of Mineral at Pit head : Rs 1000/MT Gross profit before interest Interest on investment of assets @ 14% per annum Depreciation of assets @ 10% Operating profit Provision for taxation @ 30% Surcharge @5% of tax Net profit after Tax : Rs. 164.2 : Rs. 22.4 : Rs. 16.0 : Rs. 125.8 : Rs. 37.7 : Rs. 1.8 : Rs. 86.3/MT Net profit/annum for 31151 Tonnes : Rs.26.9 lakhs The details of capital and recurring expenditure are given in following Table: Activities Area of Investment Capital Investment i land a. Land cost expenditure Budget for proposed mining Method of calculation Entire area is a govt. waste land and no amount is required to pay b. Cost on relief and rehabilitation action plan c. Compensation to the land ouseets ii. iii. iv. Basics Area : 174.83 ha Govt. waste land Rehabilitation not required No land oustees d. Cost of acquiring Surface Rights Mining a. Cost for infrastructure & equipments Environmental Protection a. Pollution Control (check dam, gully plug, retaintion wall, settling tank, water tanker, etc.) Check Dams 2 Nos. (15 m x 2.5m x 1.5 m) @ Rs. 2000/- per cum Gully Plugs 6 Nos. (5 m x 1.5 m x 1.5 m) @ Rs. 500/- per cum Retention Wall 140 m x 3 m x 2 m @ Rs. 500/- per cum Water Tanker 2 No. (Hire) @ Rs. 10000/- deposit per tank Socio-economic Development a. Infrastructure development (Edu., Medical, etc) i. Educational facilities Rs. 2 lakh per village x nearby 2 villages from project site ii. Medical facilities Rs. 2 lakh per village x nearby 2 villages from project site Expenses (in Rs.) 0 0 0 0 0 25,00,000 25,00,000 6,98,750 6,98,750 225,000 33,750 420,000 20,000 14,50,000 12,00,000 4,00,000 4,00,000 iii. Others b. Income Generation Activities v. Occupation Health & Safety Infrastructure & PPEs Total Capital Investment Rs. 2 lakh per village x nearby 2 villages from project site 4,00,000 Nearby 2 villages 2,50,000 500,000 500,000 51,48,750 Say Rs. 51.5 lakhs Activities Area of investment Budget for proposed mining Method of Basics calculation Recurring Expenditure i. Mining a. Expenditure for infrastructure and equipment maintenance b. Salaries & Wages of 24 staff No. of workers x Wages c. Royalty on Mineral & Miscellaneous Exp d. Ore transportation cost Rs. Per Ton ii. Socioeconomic Development a. Crop Damage Compensation b. Corporate Social 5% on capital Responsibility investment c. Income Generation Activities Nearby 2 villages d. Community Health checkup iii Occupational Health and Safety a. For routine checkup 24 Persons x budget per annum b. Medical aid as under ESI 1.7% of basic salary scheme / employee c. Budget for training d. Compensation for accident Rs 50000 x and injuries Anticipated rate of injuries (No. of 20 % of direct investment for infrastructure & maintenance Rs. 12000 per month Expenses (in Rs.) Cost per ton (in Rs.) 10,30,000 744 33.0 34,56,000 111.0 Rs. 100 per ton 100.00 Rs. 500 per ton 500.00 25.8 6.4 8.2 2,00,000 2,57,500 Nearby 2 villages Budget Rs. 10000/- per annum Basic salary Rs. 6000/PM Anticipated rate of injury : 5% 2,50,000 100,000 2,40,000 8.0 3.2 18.0 7.7 29,376 0.9 2,00,000 100,000 6.2 3.2 workers) iv. Environment Management a. Maintenance of Pollution Control Facilities b. Dust Suppression & Pollution Control c. Environmental Monitoring d. Environmental division Total Recurring Expenditure 5,00,000 48.0 16.0 5,00,000 16.0 4,00,000 1,00,000 12.8 3.2 835.8 Say Rs. 836/- 2. ANALYSIS OF PROPOSAL SHAIK JAMAL VALI, is proposed for annual production of 31151 Tonnes of Silica sand and quartzite. The financial estimates reveal the rate of returns. The project is economically viable. The estimates have also taken into consideration the occupational health expenses, environmental protective measures, social welfare activities etc., The Form-I and Mining Plan are submitted with this document. SHAIK JAMAL VALI , S/o S.Ibrahim Saheb, Farm House,RTP Road, Near D.N.Palli Village Muddanur Mandal, Kadapa (A.P).