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MMAAHHAANNAADDII CCOOAALLFFIIEELLDDSS LLIIMMIITTEEDD ((MMCCLL))

PRE-FEASIBILITY REPORT OF KAKUDI/KISHORIPAL SAND MINE IN

THE RIVER BED OF BRAHMANI IN VILLAGE KAKUDI AND KISHORIPAL OVER LEASE AREA OF 41.885 HA, IN

ANGUL DISTRICT, ODISHA (RATED CAPACITY: 0.25 MM3/YR)

((VVOOLLUUMMEE:: TTEEXXTT && PPLLAANNSS))

((JJOOBB NNOO.. 770066112233))

MARCH 2014

Environment Department CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED

(A Subsidiary of Coal India Limited) RI-VII, Griha Nirman Bhawan, Sachivalay Marg, Bhubaneswar.

PIN 751001, ODISHA, INDIA

STRICTLY RESTRICTED FOR COMPANY USE ONLY

The information given in this report is not to be communicated either directly or indirectly to the press or to any person not

holding an official position in the CIL/ Government.

Pre-feasibility Report of Kakudi & Kishoripal Sand Mine in the river bed of Brahmani at Talcher over lease area of 41.885 ha

Job No.706123

LIST OF CONTENTS Sl.# Chapters Particulars Page No.

1. Summarised Data………………………………………………………… i -- ii

2. Chapter-I Introduction 1 -- 6

1.1 Background of Coal Mining in MCL……………… 1 -- 2

1.2 Necessity of Sand for Coal Mining………………. 2 -- 3

1.3 Coal Mines as End Use Plants…………………… 3 -- 4

1.4 Sand Mining Leases in Brahmani River Bed…… 4 -- 5

1.5 Renewal of Sand Mining Lease………………….. 5 -- 5

1.6 History of Sand Mining in Kakudi Sand Mine….. 5 -- 6

1.7 Mining Plan for Renewal of Sand Mining Lease.. 6 -- 6

3. Chapter-II Marketability and Justification

2.1 Introduction…………………………………………. 1 -- 1

2.2 Sand Demand at End Use Plants (i.e. Coal Mines)………………………………………………..

1

--

1

2.3 Sand Available at Kakudi Sand Mine…………… 2 -- 2

2.4 Justification of Report……………………………... 2 -- 2

4. Chapter-III Details of Earlier Approval of Mining Scheme

3.1 Earlier Approved Mining Scheme………………... 1 -- 1

3.2 Status of Implementation of Scheme……………. 2 -- 2

5. Chapter-IV Mine Site Information

4.1 Location…………………………………………….. 1 -- 1

4.2 Accessibility………………………………………… 1 -- 1

4.3 Sand Mine Site Information………………………. 1 -- 4

6. Chapter-V Exploration and Geology

5.1 Physiography………………………………………. 1 -- 1

5.2 Geology……………………………………………... 1 -- 1


Job No.706123

Sl.# Chapters Particulars Page No.

5.3 Exploration………………………………………….. 2 -- 5

7. Chapter-VI Mine Boundary, Reserve & Mine Life

6.1 Mine Boundary…………………………………….. 1 -- 1

6.2 Delineation of Mine Boundaries…………………. 1 -- 1

6.3 Geological Reserve……………………………….. 1 -- 2

6.4 Mineable Reserve…………………………………. 2 -- 3

6.5 Anticipated Life of the Sand Mine……………….. 3 -- 3

8. Chapter-VII Mining Strategy and Method of Mining

7.1 Sand Requirement 1 -- 1

7.2 Availability of Sand from Kakudi Sand Mine.. 1 -- 2

7.3 Envisaged Production Capacity………………….. 2 -- 2

7.4 Fulfilment of Sand Requirement from Kakudi Sand Mine…………………………………………..

2

--

2

7.5 Surface Constraints on Mine Development…….. 2 -- 2

7.6 Opening of Sand Deposit…………………………. 3 -- 3

7.7 Sand Mining Methods……………………………... 3 -- 3

7.8 Selection of Sand Mining Technology…………… 4 -- 4

7.9 Mode of Sand Mining Operation…………………. 4 -- 5

7.10 Method of Sand Mining……………………………. 5 -- 10

7.11 Production Schedule………………………………. 10 -- 10

7.12 Blasting System……………………………………. 10 -- 10

7.13 Stacking of Mineral Rejects & Disposal of Waste………………………………………………..

10

--

10

9. Chapter-VIII Mining Schedule and Equipment Phasing

8.1 Mining Schedule…………………………………… 1 -- 1

8.2 Equipment Phasing……………………………….. 1 -- 1

10. Chapter-IX Use of Mineral & Mineral Beneficiation

9.1 Use of Mineral……………………………………… 1 -- 2

9.2 Mineral Beneficiation………………………………. 2 -- 2


Job No.706123


11. Chapter-X Manpower and Training

10.1 Manpower…………………………………………... 1 -- 1

10.2 Training……………………………………………... 1 -- 1

12. Chapter-XI Safety & Supervision

11.1 Introduction…………………………………………. 1 -- 1

11.2 Surface Flooding…………………………………… 1 -- 1

11.3 Air-Borne Respirable Dust………………………... 1 -- 1

11.4 Fire………………………………………………….. 2 -- 2

11.5 Additional Measures………………………………. 2 -- 2

13. Chapter-XII Infrastructure Facilities Proposed

12.1 Site Services……………………………………….. 1 -- 1

12.2 Mine Facilities……………………………………… 1 -- 1

12.3 Power Supply System……………………………. 2 -- 2

12.4 Civil Construction…………………………………. 2 -- 2

14. Chapter-XIII Land Requirement 1 -- 1

15. Chapter-XIV Environment Management Plan

14.1 Baseline Information………………………………. 1 -- 1

14.2 Existing Land Use Plan…………………………… 1 -- 1

14.3 Land Environment…………………………………. 1 -- 1

14.4 Existing Environmental Quality…………………… 1 -- 4

14.5 Environmental Impact Assessment and Mitiga-tion Measures………………………………………

4

--

8

14.6 Environmental Management System……………. 8 -- 8

16. Chapter-XV Mine Closure Plan

15.1 General……………………………………………… 1 -- 1

15.2 Objective of Mine Closure Planning…………….. 1 -- 1

15.3 Reason for Mine Closure…………………………. 1 -- 2


Job No.706123


15.4 General Information about the project…………… 2 -- 2

15.5 Statutory Approvals………………………………... 2 -- 3

15.6 Closure Plan………………………………………... 3 -- 6

15.7 Closure Cost……………………………………….. 6 -- 9

15.8 Care and Maintenance During Temporary Discontinuance……………………………………..

9

--

9

15.9 Time Schedule for Closure………………………. 9 -- 9

17. Chapter-XVI Project Implementation Schedule

16.1 Construction Activities…………………………….. 1 -- 1

16.2 Year of Commencement of Production…….…… 1 -- 2

16.3 Project Implementation Schedule……………….. 2 -- 2

18. Chapter-XVII Financial Evaluation

17.1 Introduction…………………………………………. 1 -- 1

17.2 Options Considered……………………………….. 1 -- 1

17.3 Manpower………………………………………….. 1 -- 1

17.4 Capital Investment…………………………………. 2 -- 4


Job No.706123

LIST OF ANNEXURES Sl# Particulars Annexure

1. Copy of Letter of Approved Mining Plan I

2. Copy of Letter Renewal Application II

LIST OF PLATES Plate No. Ref. No. Description of Drawing

1. HQ/UMD/201129 Location Plan of Kakudi Sand Mine

2. HQ/UMD/201130 Location Plan of Kakudi Sand Mine w.r.t. Existing / Proposed Coal Mines / Blocks of Talcher Coalfield, MCL.

3. HQ/UMD/201131 Part Revenue Plan, Representative Lithologs, Survey Plan & Geological Cross-section along / across Mine Lease Area of Kakudi Sand Mine

4. HQ/UMD/201132 Proposed Method of Sand Mining


Job No.:706123 i

Summarised Data

SN. Parameters Description 1 Name of Project Kakudi and Kishoripal Sand Mine, Talcher Area, 2 Location 1. Village: Kakudi

Plot No. 949,948(P)&947(P),Khata No. 70 2. Village : Kishoripal Plot No.927&928(P), Khata No. 120 Sub-division: Talcher, Thana: Talcher, Distt. Angul, Orissa.

3 Mine Boundary North: Up-stream side of Brahmani River (under mouza of Kakudi) South: Down-stream side of Brahmani River (under mouza of Kishoripal) East: East bank of Brahmani River and Khalpal reserve forest West: West bank of Brahmani River and

Kishoripal Village. 4 Topo-sheet No. with latitude and longitude Topo Sheet No:73H/1 (R.F.1:50,000) of GSI with

Latitude: N 20057’04” to 20058’02” Longitude: E 85014’14” to 85014’08”

5 Accessibility 1.NH-23 at a distance of about 2.50 km & connects to NH-42.

2. Talcher Town 2 km, Angul district HQ 30 km. 3.Talcher railway station 5.50 km.

6 i) Leasehold area ii) Mining block area

i) 41.885 ha ii) 19.07 ha

7 Land use pattern River-bed 8 Geological reserves 0.846 Mm3 9 Mineable Reserves 0.35 Mm3 10 Mode of entry Temporary roads/ causeways from river bank to

the sand mine/ quarry 11 Proposed method of mining Mecahnical winning of sand by hydraulic

excavator (Back-hoe shovel) loading onto tipping truck for sand evacuation & transport

12 Targeted production 0.25 Mm3 per annum 13 Year of achieving target 1st year 14 Life of the mine 20 years proposed lease period 15 No. of villages/houses to be shifted Nil 16 Population to be affected by mining activities Nil 17 Total envisaged manpower 99 heads 18 Total capital 541.36 lakhs 19 Capital on P&M 438.61 lakhs 20 Estimated mine closure cost 3.65 lakhs


Job No.:706123 ii

21 Debt-equity ratio 1 : 1 22 Operating cost (` /m3 of sand)

• Departmental option `267.48 /m3 • Outsourcing option `191.62 /m3


Job No.: 706123 Chapter – 1, Page - 1

Chapter – I

1.0 INTRODUCTION

1.1 BACKGROUND OF COAL MINING IN MCL Talcher Coalfield was first discovered in the year 1837. Later on, Geological

Survey of India (GSI) surveyed and mapped the coalfield in 1855. Handidua Colliery

was opened by M/s Villiers Ltd. in 1921. Deulbera Colliery was started by Bengal

Nagpur Railway in the year 1926. The same came under M/s National Coal

Development Corporation (NCDC) in the year 1956. Subsequently, NCDC opened

mines at South Balanda, Nandira and Jagannath in 1960, 1962 and 1972

respectively. After nationalisation of coal mines and formation of CIL, these mines

were brought under the purview of M/s Central Coalfields Limited (CCL), then in M/s

South Eastern Coalfields Limited (SECL) after sub-division of CCL, and

subsequently in M/s Mahanadi Coalfields Limited (MCL) after sub-division of SECL

in the year 1992.

M/s Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India limited

(CIL) is presently engaged in mining coal in Talcher and Ib-valley Coalfields in the

state of Odisha. Apart from several opencast mines, there are 4 (four) underground

(UG) coal mines operating in Talcher Coalfield and 5 (five) in Ib-valley Coalfield.

Coal Production of MCL has been increased from 23.14 Million Tonnes (Mt) in 1992-

93 to 107.90 Mt in 2012-13.

Due to the strategic location of MCL in eastern India, MCL has to meet the

ever-increasing coal needs. As per 12th plan, MCL has planned to increase the

production to meet the future demand of coal from the present level of 107.9 Mt

(2012-13 - achieved) to 206 Mt (projected) by the end of 2016-17 (XII Plan Period),

with UG production boosting up from a level of 1.68 Mt (2012-13 - achieved) to 2.40

Mt (2016-17 - projected) and more in the forthcoming XII Plan period. MCL is taking

following steps for increasing the coal production:

• Opening of new mines in the adjoining / superjacent areas/ seams for higher

production;



• Adopting opencast working wherever possible for high rate of production;

• Increasing the prospecting for coal in nearby existing mining blocks and other

areas to prove new reserves;

• Re-construction of existing mines for optimum production by introducing

intermediate and high technologies;

• Extension of existing mine workings to greater depth for increasing the life of

mine and augmenting the production; and

• Depillaring in conjunction with sand stowing in case of surface built-up areas

(where rehabilitation is not practicable) and/or multi-seam workings (where

exploitation of seams by caving is not feasible). Due to non-availability of surface land and presence of waterlogged workings,

surface infrastructures like villages, colonies, public roads, water-bodies, power lines

etc., depillaring operation in Talcher Area needs to be carried out in conjunction with

sand stowing. Under such situation, sand emerges out to be an important commodity

to maintain the requisite production level of MCL.

1.2 NECESSITY OF SAND FOR COAL MINING Coal occurs as stratified deposits in various layers (called coal seams). Coal

from the seam is extracted by various underground (UG) mining methods. In UG

coal mines of MCL in Talcher Coalfield, the Bord & Pillar (B&P) method of mining

with Side Discharge Loaders (SDLs) and/or Load Haul Dumpers (LHDs) is being

practised. While extraction of coal (i.e. depillaring), a void is created in the de-coaled

zone (known as goaf). The goaf so created is either allowed to cave in (by collapsing

of overlying strata) or kept stable by filling the void with packing material. The caved

goaf results in lowering of overlying strata and thereby creates subsidence on the

surface. The amount of subsidence generally depends on the thickness and volume

of extraction, strata conditions, depth of the workings, manner of extraction etc.

Generally, Subsidence is inversely proportional to depth of extraction i.e. as the

depth of extraction increases, subsidence decreases and vice-versa. Owing to

subsidence, original surface land profile/ features over the coal extraction area gets

deformed.



In order to avoid deformation of surface land profile/ features due to

subsidence as a result of extraction of coal, the mining void is immediately filled with

packing material. The operation of packing of the goaf is known as stowing. Stowing/

packing materials (such as sand, boiler ash, fly ash etc.) are used for filling the voids

created in UG mines, basically to keep the roof intact, or allow limited subsidence

with a view to protect the surface or sub-surface structures and environment while

aiming at maximum recovery of coal under the existing set of geo-mining constraints.

Sand stowing is also done to protect the overlying seams/sections while working

thick or multiple seams. The Coal Mines Regulations (CMR), 1957 framed under the

Mines Act, 1952 provide adequate safety regulations in respect of protection of

surface structure/ features etc. by means of stowing.

River sand is non-reactive and highly suitable stowing material used for

meeting the requirements of conservation as well as for safety and surface

protection. So far the rivers flowing through the coalfields or close by have been the

only source of sand. Thus, river sand is one of the important raw materials for safe

and systematic mining of coal from the UG coal mines, particularly where the surface

features need to be protected.

1.3 COAL MINES AS END USE PLANTS The Kakudi and Kishoripal Sand Mine is among the existing sand mine and

has been earmarked for partial fulfillment of sand requirement for the underground

coal mines of MCL located in Talcher Coalfield. The UG coal mines of Talcher Area

are Talcher, Nandira, Deulbera , Handidhua colliery , Natraj U/G , Talcher west,

Jagannath U/G. Out of above Talcher, Deulbera, Handidhua, Nandira are old and

extensive. These mines are operative since last 6 to 9 decades in Talcher much

before opening of Opencast mines. In addition to this Talcher U/G presently

produces Grade-A coal in Odisha. Presently, no coal production is being carried out

in Deulbera and Handidhua Collieries; however sand stowing is being done in the old

workings of these mines for their stabilization and protection of surface

infrastructures. Further sand would be required during depillaring of three new UG

mines namely Jagannath UG, Talcher West UG and Natraj UG mines. The workings of these mines are/were by conventional/ semi-mechanised

bord & pillar method. The workable seam (i.e. Seam-I) splits into two or more



workable sections over a large portion of the area. With gradual exhaustion of the

developmental coal reserves in these mines, the coal production has mainly been

focused from depillaring of the developed reserve. For safety and conservation of

higher grade coal, depillaring operations need to be carried out in conjunction with

hydraulic sand stowing. Stowing also conserves the forest land, the agricultural land,

the surface topography, the natural surface drainage system, and other surface

features. Thus, these mines need more and more quantities of sand for maintaining

increasing demand of coal production as well as safety of the mines and their

surroundings. The coal productions from Talcher and Nandira Collieries during 2012-13

were 0.12 and 0.23 Mt respectively. Sand from Brahmani River bed at

Kakudi/Kishoripal sand mine is being/will be used in the aforesaid mines as per

partial fulfillment of their requirements.

1.4 SAND MINING LEASES in Brahmani River bed For MCL, there exist 4 (four) sand mining leases in Brahmani River bed at

Mandapal, Bilinda/ Biksar, Kakudi/ Kishoripal/ Khalpal, and Gurujang/ Sirigida in the

districts of Odisha.

Details of the existing/ proposed sand mining leases in Brahmani River bed

are given in Table-1.1 below:

Table-1.1: Details of existing/ proposed sand mining leases in Brahmani River bed for MCL

Sl. No.

Name of Sand lease

Lease area granted

(ha)

Period of lease (year)

Commencement date

Lease area surrendered (ha)

Lease area retained

(ha)

Remarks

1. Kakudi/ Kishoripal/ Khalpal

75.433 20 14.11.1990 (Deed No. 4565 dtd. 28.09.1991)

33.548 (Granted vide ref. no. 10641 dtd. 12.10.95 of Dy.

Secy., Govt. of Orissa, Steel & Mines, BBSR w.e.f. 31.12.94)

41.885 (w.e.f. dtd. 31.12.94)

Date of expiry of lease was on 14.11.10

(renewal application submitted on 30.11.09)

2. Mandapal (Nizgarh Zami & Gopinathpur)

17.805 20 24.10.1992 (Deed No. 2305 dtd. 13.03.2000)

N.A. 17.805 Date of expiry of lease is on 24.10.2012

3. Bilinda/ Biksar 75.372 20 30.05.2005 (Deed No.2332 dtd.17.08.2005)

N.A. 75.372 Date of expiry of lease is on 30.05.2025

4. Gurujang/ Sirigida

127.757 20 N.A. N.A. Lease granted vide ref. no. 8678 dtd.

27.08.2005 of Jt. Secy., Govt. of Orissa, Steel &

Mines, BBSR



Sand mining area under the present Mining Plan is located at Angul district of

Odisha. The sand will be used for filling the depillared underground workings of

Talcher Area, MCL by hydraulic sand stowing.

1.5 KAKUDI/KISHORIPAL SAND MINE FOR RENEWAL OF ITS SAND MINING LEASE Kakudi/Kishoripal sand mine is an existing sand mine and its operation has

been temporarily suspended for want of Environmental clearance. Out of proposed

75.433 Ha lease area the sand mining lease was granted for 41.885 Ha for a period

of 20 years wef 14th Nov 1990. For renewal of the lease, the application has been

submitted by MCL to Dy Collector Angul vide receipt no 301 dated 30.11.2009.

1.6 HISTORY OF SAND MINING IN KAKUDI/KISHORIPAL SAND MINE A sand mining scheme titled “Scheme for Sand Mining over an area of 75.433

Ha on Brahmani river bed in villages Kakudi, Kishoripal & Khalpal of Dhenkanal

district, Orissa” was prepared by SECL in May 1988 for grant of sand mining lease

for winning of sand at Kakudi, Kishoripal & Khalpal sand mine. Later, as desired by

the company concerned (i.e. SECL), CMPDIL had carried out a detailed techno-

economic analysis for various sand gathering and transportation options from

Brahmani river to different collieries of Talcher Area. After optimising the techno-

financial viability of various alternatives, it was decided that SECL should do away

with the sand gathering plant and loco system of transport. The gathering and

transportation of sand was proposed by means of excavators in combination with the

trucks at various sand mining areas.

The CHP/ Scraper operation at Kakudi sand mine was suspended since July

1995. Since then, the gathering and transportation of sand was carried out

departmentally/ contractually at Kakudi, Kishoripal & Khalpal Sand Mine by means of

excavators (i.e. back-hoe shovels) in combination with the trucks. The sand mined

out was naturally replenished every year during the monsoons. The fact that there

had not been any lowering of the river bed or availability of sand after twenty years of

sand mining in this area indicates that replenishment of sand more or less equals



that mined out. The end use of the sand mine was for hydraulic sand stowing in

depillaring panels of underground coal mines in Talcher Area, MCL.

Out of the proposed 75.433 ha lease area, the sand mining lease was granted

for 41.885 ha land only for a period of 20 years (vide deed no. 4565 of dated

28.09.1991). The applicant had systematically mined sand from Kakudi / Kishoripal

Sand mine during the lease period as and when required.

1.7 MINING PLAN FOR RENEWAL OF SAND MINING LEASE

The Mining Plan of Kakudi/Kishoripal sand mine has been approved by Govt.

Of India , Ministry of Coal vide letter no 34012/ (4)/2011-CPAM dated 21st Aug 2013.



Chapter – II

2.0 MARKETABILITY AND JUSTIFICATION

2.1 INTRODUCTION For maximum exploitation of underground coal reserve and optimum

production from Underground mines, Depillaring is the best method for extraction of

coal from the standing pillars. Depillaring in conjunction with Hydraulic stowing with

sand is the right approach for the above method. There exists sand mining lease in

Brahmani river bed at Kakudi of Angul district for MCL. For renewal of sand mining

lease, a Mining Plan titled “Mining Plan of Kakudi/Kishoripal Sand Mine in the river

bed of Brahmani at Kakudi and Kiksoripal over lease area of 41.885 ha, Angul

district, Odisha (Rated Capacity 0.25 Mm3/yr)” was prepared by CMPDI and this has

been approved by Govt of India Ministry of Coal vide letter no 34012/ (4)/2011-

CPAM dated 21st Aug 2011. In the mean time MCL has already applied for renewal

of mining lease on 30.11.2009 to Govt. of Odisha.

2.2 SAND DEMAND AT END USE PLANTS (i.e. COAL MINES) The sand won from the proposed Kakudi/Kishoripal Sand Mine will be used

for sand stowing (i.e. back filling of sand in the de-coaled area) in different

underground (UG) mines of Talcher Area, MCL for ground stabilization and

prevention of surface subsidence. Mine-wise quantity (m3) of sand demand is given

in Table-2.1 below:

Table-2.1: Mine-wise quantity of sand demand in Talcher Area, MCL

Name of Mine

Year-wise mine-wise quantity (m3) of sand demand

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 on wards

Deulbera 60,000 1,00,000 1,08,000 - - - - Talcher 30,000 90,000 90,000 90,000 90,000 3,93,120 (1,2) 393,120 (1,2) Handidhua 24,000 24,000 24,000 30,000 30,000 25,000 - Nandira 70,000 60,000 60,000 60,000 60,000 1,02,960 (2) 102,960 (2) Total 1,84,000 2,74,000 2,82,000 1,80,000 1,80,000 5,21,080 4,96,080 NOTE:

1. Expected enhancement in production level due to proposed modification in mine transport system; 2. Expected production increase in depillaring districts with sand stowing due to increase in number of

depillaring districts.



2.3 SAND AVAILABILITY AT KAKUDI SAND MINE Sand availability (i.e. geological reserve of sand) has been estimated as 0.85

Mm3 per annum at Kakudi Sand Mine Site (Refer para 6.3 of Chapter- VI). The

minable reserve as estimated is 0.35 mm3.

2.4 JUSTIFICATION OF REPORT Sand demand at end use plants (i.e. coal mines) at the end of 12th Plan period

(2016-17) will be around 0.52 Mm3 per annum for depillaring with hydraulic sand

stowing in different coal mines of Talcher area, MCL. To meet the demand of sand

for depillaring in different coal mines of Talcher Area, MCL, sand availability at

Kakudi sand mine fulfills the partial demand of sand. The gap between sand demand

and sand availability justifies the preparation of this report.



Chapter - III

DETAILS OF EARLIER APPROVAL OF MINING SCHEME

3.1 EARLIER APPROVED MINING SCHEME A sand mining scheme titled “A scheme for Sand Mining over an area of

186.40 acres (75.43Ha) on Brahmani river-bed in villages Kakudi, Kishoripal and

Khalpal of Dhenkanal district, Orissa” was prepared by SECL in May 1988 for

winning of sand from Kakudi, Kishoripal and Khalpal sand mine. Sand stowing was

done in Deulbera, Talcher and Handidhua colliery for filling of voids created in

depillaring panels of underground coal mines. It was proposed to mine 0.12 Mm3 per

annum of sand from kakudi sand mine and additional 0.25 Mm3 per annum of sand

over the area of 365.66 acres on the downstream side of the 186.40 acres area.

However, only 41.885 ha. out of 75.433 ha was granted for winning of sand at

Kakudi/ Kishoripal sand mine. The earlier mining lease was granted for 20 years.

The existing lease period over an area of 41.885 ha (103.50 acres) has

expired in the month of November 2010 and renewal of lease has been submitted to

Govt. Of Odisha on 30.11.2009.

The earlier mining scheme envisaged sand mining during dry season on

exposed sand banks and sand bars by small scrapers and a series of belt

conveyors. The sand was to be gathered from the bed by scraper and fed to the belt

conveyors laid along the river on the sand beds which discharge on the main belt

conveyor installed across the river. The belt conveyor was to be delivered sand on

the elevating conveyor which finally discharges into the bunkers having a total

storage capacity of 1200 m3. The sand was then directly to be unloaded into the

railway wagons and supplied to Talcher and Deulbera collieries departmentally by an

engine hired from railways. Before onset of the monsoon, all the installations in the

sand mine (i.e. in the river bed) were to be dismantled and stored away. These were

to be reinstalled during November/ December.

The sand mined out was naturally replenished every year during the

monsoons. The fact that there had not been any lowering of the river bed or

availability of sand after twenty years of sand mining in this area indicates that

replenishment of sand more or less equals that mined out.



3.2 STATUS OF IMPLEMENTATION OF THE SCHEME After preparation of above said scheme, as desired by the company

concerned (i.e. SECL), CMPDIL had carried out a detailed techno-economic analysis

for various sand gathering and transportation options from Brahmani river to different

collieries of Talcher Area. Accordingly, a report titled “Report on Sand Gathering and

Transportation, Talcher Area, SECL” was prepared by CMPDIL, RI-VII in June,

1990. In the Report, the following alternative(s) were considered for gathering/

transportation of sand from Brahmani River to collieries in Talcher Area:

• Sand gathering by scrapers and belt conveyors, and transportation by

hired loco/ trucks.

• Sand gathering by scrapers and belt conveyors, and transportation by

hired loco and by departmental trucks.

• Sand Gathering by scrapers and a series of belt conveyors and

transportation by purchased loco and by departmental/ contractual trucks.

• Sand Gathering by scrapers and a series of belt conveyors and

transportation by departmental trucks only.

After optimising the techno-financial viability of above alternatives, it was

decided that SECL should do away with the sand gathering plant and loco system of

transport. The gathering and transportation of sand was proposed by means of

excavators in combination with the trucks at various sand mining areas.

As proposed in the scheme, the CHP/ Scraper operation at Kakudi/ Kishoripal

sand mine was operative till July 1995. Thereafter, the gathering and transportation

of sand was carried out departmentally at Kakudi/ Kishoripal Sand Mine by means of

excavators (i.e. back-hoe shovels) in combination with the trucks. Later, the system

was out-sourced and the gathering and transportation of sand was carried out

contractually.

The applicant had systematically mined sand from Kakudi/ Kishoripal Sand

mine during the lease period as and when required. The end use of the sand mined

was used for hydraulic sand stowing in depillaring panels of underground coal mines

in Talcher Area, MCL.



Chapter – IV

4.0 MINE SITE INFORMATION

4.1 LOCATION The proposed sand mine lies in the river bed of Brahmani. It comes under the

Talcher Tahsil, and Village: Kakudi, Plot No. 949,948(P) & 947(P), Khata No. 70 and

Village : Kishoripal Plot No.927 & 928 (P), Khata No. 120, The mine area is

bounded by latitudes N 20057’04” to 20058’02” Longitude: E 85014’14” to 85014’08”

and is covered by Survey of India Topo Sheet No:73H/1 (R.F.1:50,000). The

proposed sand mine lease area has its boundary as follows:

North: Up-stream side of Brahmani River (under mouza of Kakudi)

South: Down-stream side of Brahmani River (under mouza of Kishoripal)

East: East bank of Brahmani River and Khalpal reserve forest

West: West bank of Brahmani River and Kishoripal Village.

Brahmani River enters into Angul District through the Rengali Reservoir. It

meets with its four tributaries nearby (viz. Samakoi, Tikira, Singrajhor & Nandira) in

Angul district. It drains into Bay of Bengal after flowing through Jazpur & Kendrapara

districts of Odisha.

4.2 ACCESSIBILITY • Nearest town: Talcher, about 2 km away.

• National highways: NH-23 passes through Talcher town at a distance of about 2.5 km and connects to NH-42.

• Nearest rail head: Talcher railway station on branch line of East Coast Railway at a distance of about 5.5 km.

4.3 SAND MINE SITE INFORMATION

4.3.1 CLIMATE Long-term meteorological data collected from IMD, Bhubaneswar for Angul

IMD station have been referred for preparation of the following table:



Climatic Data from IMD Station, Angul

Item Parameters Particulars

Rainfall

Range 743 to 1550.18 mm, as recorded over a period of 21 years.

Annual average 1256.56 mm.

More than 77% of the rain occurs during the monsoon season, i.e. June to September.

Temperature range (monthly mean of daily temperature)

Minimum 5.5OC (Nov., 1996)

Maximum 44.1OC (May, 2009)

Relative humidity range (monthly mean of daily RH

Minimum 31%

Maximum 88%

Wind speed range (monthly mean of daily wind speed)

Max at 8:30 hr 6 km/hr

Min at 8:30 hr 2 km/hr

Max at 17:30 hr 8 km/hr

Min at 17:30 hr 1 km/hr

Site specific continuously monitored micro-meteorological data through

autographic weather monitoring instrument during pre-monsoon period have been

summarized in the following tables :

The area lies in the region with wider temperature variations between winter

and summer. The climate of the area is tropical monsoon type with maximum

precipitation occurring in the months of June to September. Maximum and minimum

temperatures recorded at Mandapal are 50°C in May/ June & 9°C in January/

February) respectively. The annual average rainfall in the area and adjacent regions

has been recorded as 1500mm.



4.3.2 HUMAN SETTLEMENT There is no human settlement in the discontinued sand mining operation site

at Kakudi and kishoripal village in the western bank of Brahmani river. The village

Kakudi is situated 500 N-W of sand mining site whereas kishoripal village is situated

1500m N-W of the mining site. The total population in Kakudi and Kishoripal village

is 2155 and 762 respectively. The total number of Household in Kakudi is 502 and in

Kishoripal is 200.(Census data 2011)

4.3.3 LAND USE PATTERN Schedule of proposed land of mining lease area for Kakudi/ Kishoripal sand

mine to fulfil partial requirement of sand in MCL mines is as detailed below:

Plot No. Khata No. Ownership Occupancy

Kissam Area in Acres Remarks

Village: Kakudi 949 70 Govt. of Odisha Brahmani River 22.650 Part

948(P) 70 -do- -do- 17.400 Part 947(P) 70 -do- -do- 1400 Part

Sub-Total 41.450 Village: Kishoripal

927 120 Govt. of Odisha Brahmani River 28.050 Part 928(P) 120 -do- -do- 34.000 Part

Sub-Total 62.050 TOTAL 4.500 res i.e. 41.885 ha

4.3.4 SURFACE INFRASTRUCTURE Talcher Mining Area of MCL is a well-established area with the requisite

infrastructure necessary for mining operation. The proposed sand mining site is also

developed with certain infrastructure. The arrangements for the collection of sand

from the river bed, transportation of the sand to the mines, sand stowing plants at the

mine surface as well as transportation of sand to the underground workings/ voids/

goaves etc. are/ will be provided.

There exists an approach road in the near vicinity which can be used for

transportation of sand from the proposed Kakudi/ Kishoripal sand mine. In the close

proximity to the mining site on the west bank of Brahmani River, there is a pump

house of MCL and East-coast Railway for supply of water. In the down-stream side



of Brahmani River at a distance of around 5.25 km, there exists a RCC bridge)

across the Brahmani river. Power supply in the area is maintained by GRIDCO,

Odisha.

4.3.5 FLORA AND FAUNA The core zone of the proposed sand mining site is the river bed with flowing

water and sand/ pebble/ gravel. In buffer zone (i.e. within 5 km radius), there are

habitations (like dwellings, villages, townships and mining colonies), agricultural land,

irrigated/ un-irrigated land and forests (like Rani park, Gengutia reserve forest,

Petachira reserve forest and Paturia reserve forest). These reserve forest mainly

contains sal and teak.

Prominent wild species include wild boar, jungle cat, civet cat, black napped

hare, squirrel and jackals. Porcupines are also occasionally spotted. Among birds

bulbul, white breasted kingfisher, magpie robin, spotted dove, myna, black ibis, white

ibis, cattle egret, pan kaua and crow are common. Amongst reptiles, several

poisonous snakes (like krait) and non-poisonous snakes (like boa, rat snakes, green

whip, bronze back tree snake, etc) are common in this area. The garden lizard and

monitor lizard are also seen.



Chapter –V

5.0 EXPLORATION AND GEOLOGY

5.1 PHYSIOGRAPHY The lease area for sand mining covers 103.500 acres (i.e. 41.885 ha) at

Kakudi/ Kishoripal village of Angul district, Odisha as shown in Survey of India Topo

sheet No. 73H/1 (refer Plate-1). The lease area is located on the bed of Brahmani

River in the closer proximity to the western bank of the river. The terrain on the

banks of Brahmani River is under alluvial cover, while much of the area is gently

undulating. The river Brahmani enters Angul district through Rengali Reservoir. The

river with its tributaries like Tikra nala, Singda Jor , Bangaru jor and Nandira nala is

mainly draining the coal bearing area situated in the western bank of the river. It is

periodically flooded and drained. It drains into Bay of Bengal after flowing through

Jajpur and Kendrapara districts of Odisha.

The extraction of sand in the proposed lease area will be limited to the

exposed sand banks and sand bars during dry-season i.e. low water condition.

Consequently, there is no relevant surface feature in the mining area.

5.2 GEOLOGY The river bed in the sand mining area passes partly over coal bearing

Karharbari and partly over non-coal bearing Talchir metamorphic rocks. Mining of

coal under the river is not feasible in the foreseeable future.

Brahmani River flows from north southwardly at the proposed Kakudi/

Kishoripal Sand Mine. Maximum and minimum reduced levels (RLs) of western bank

of Brahmani River varies from 67.09m to 60.25m respectively and of eastern bank

varies from 68.01m to 66.04m respectively. The maximum and minimum surface

RLs of the proposed sand area varies from 64.07m to 52.91m respectively. It

indicates the surface profile of Kakudi/Kishoripal Sand mine is almost even.



5.3 EXPLORATION

The average length and breadth of the proposed sand mining lease area at

Kakudi/ Kishoripal is 1420m & 294.9647m respectively. The thickness of entire

proposed sand lease area is assessed by the standard method of estimation in 50m

x 50m grid pattern.

The sand reserve has been estimated as per the Indian Standard Procedures.

The entire sand lease area is divided into 50m x 50m grid pattern (refer Plate-3). The

grid lines at an interval of 50m both across and along the river bed at the proposed

lease area are being named as “ i ” (where, i = 1, 2, ……,15) and “ j “ (where, j = A,

B, ….., H) respectively. The intersection points (i.e. nodes) of these grid lines are

marked as Nij (where i = 1, 2, … 15 and j = A, B, ….,H). Thus, the nodal points are

named as N1A, N1B, …., N1H, N2A, N2B, …., N2H, ….., N15B, N15C, N15D. These nodal

points have been considered for survey and exploration.

At each grid-junction i.e. node or survey point (i.e. the point of intersection of

two grid-lines), depth of sand layer in the river-bed is found out by drilling holes up to

such depths at which excessive percolation of water does not occur. The average

thickness of sand layer/ bed is derived by averaging the depths of sand-layer of all

nodal points (refer Table 5.1). The estimation of average sand layer thickness (tav) is

elaborated as follows:

NodesofNo

tt

i

i

Hj

Ajij

av .

15

1∑∑=

=

=

== ,

where,

tij = Thickness of sand layer (m) at “ ij “ node,

i =1, 2, …., 15, and

j = A, B, …., H.

The thickness of sand layer/bed at each node point has been measured at the

proposed Kakudi/ Kishoripal sand mine, which are given in Table 5.1 below:



Table 5.1: Thickness of sand layer (m) at Kakudi/ Kishoripal measured at nodes or grid-junctions distributed at 50m x 50m grid pattern

Sl. No.

Survey Points/ Nodes(at 50m x 50m grid

pattern) Surface Reduced Levels

of each node (m) Depth of

sand layer (m)

1 N1A 64.07 1.35 2 N1B 62.38 1.77 3 N1C 62.29 1.73 4 N1D 62.16 1.78 5 N1E 62.30 1.75 6 N1F 62.28 1.72 7 N1G 62.17 1.70 8 N1H 62.00 1.69 9 N2A 63.80 1.64 10 N2B 62.43 1.80 11 N2C 62.28 1.84 12 N2D 62.13 1.88 13 N2E 62.18 1.80 14 N2F 62.23 1.75 15 N2G 62.10 1.79 16 N2H 61.93 1.93 17 N3A 62.08 1.78 18 N3B 61.10 1.93 19 N3C 60.97 1.90 20 N3D 60.85 1.87 21 N3E 60.83 1.78 22 N3F 60.80 1.77 23 N3G 60.74 1.78 24 N3H 60.68 1.84 25 N4A 60.98 1.26 26 N4B 59.78 1.89 27 N4C 59.64 1.98 28 N4D 59.58 1.97 29 N4E 59.45 1.94 30 N4F 59.38 2.00 31 N4G 59.43 1.96 32 N4H 59.33 1.98 33 N5A 58.28 1.98 34 N5B 56.45 2.07 35 N5C 56.34 2.02 36 N5D 56.28 2.08 37 N5E 56.21 2.21 38 N5F 56.14 2.28 39 N5G 56.17 2.30 40 N5H 56.18 2.05 41 N6A 55.07 1.99 42 N6B 53.12 2.13 43 N6C 53.05 2.18 44 N6D 52.98 2.03 45 N6E 52.95 2.12 46 N6F 52.91 2.07



Sl. No.




sand layer (m)

47 N6G 52.94 2.41 48 N6H 52.98 2.11 49 N7A 57.08 2.00 50 N7B 56.07 2.08 51 N7C 54.94 2.10 52 N7D 54.83 2.15 53 N7E 54.78 2.14 54 N7F 54.75 2.91 55 N7G 54.72 2.09 56 N7H 54.70 2.10 57 N8A 54.48 1.82 58 N8B 56.99 1.97 59 N8C 56.84 2.08 60 N8D 56.69 2.13 61 N8E 56.62 2.04 62 N8F 56.59 2.02 63 N8G 56.50 1.92 64 N8H 56.43 1.97 65 N9A 59.23 1.92 66 N9B 58.83 2.00 67 N9C 58.74 1.96 68 N9D 58.64 1.97 69 N9E 58.54 1.99 70 N9F 58.49 2.01 71 N9G 58.43 1.94 72 N9H 58.38 1.99 73 N10A 61.89 1.88 74 N10B 60.75 2.03 75 N10C 61.65 2.01 76 N10D 60.55 2.00 77 N10E 60.47 2.04 78 N10F 60.40 1.98 79 N10G 60.36 1.96 80 N10H 60.33 2.02 81 N11A 62.53 1.81 82 N11B 60.47 2.10 83 N11C 60.38 2.15 84 N11D 60.31 2.15 85 N11E 60.21 2.16 86 N11F 60.11 2.19 87 N11G 60.08 2.22 88 N11H 60.05 2.11 89 N12A 61.75 1.88 90 N12B 60.16 2.10 91 N12C 60.09 2.30 92 N12D 60.03 2.28 93 N12E 59.03 2.22 94 N12F 59.83 2.27 95 N12G 59.77 2.18



Sl. No.




sand layer (m)

96 N12H 59.71 2.16 97 N13A 61.89 1.90 98 N13B 60.14 2.08 99 N13C 60.13 2.21 100 N13D 59.97 2.22 101 N13E 59.83 2.31 102 N13F 59.75 2.30 103 N13G 59.63 2.36 104 N13H 59.59 2.08 105 N14A 60.40 1.78 106 N14B 60.09 2.01 107 N14c 59.98 2.00 108 N14D 59.89 2.40 109 N14E 59.79 2.33 110 N14F 59.65 2.28 111 N14G 59.55 2.21 112 N14H 59.46 2.03 113 N15B 60.04 2.07 114 N15C 60.02 2.05 115 N15D 59.57 2.36

Avg. 2.017(say,2.02)

From data generated by survey at node points of proposed sand lease area,

the thickness of sand layer/bed varies from 1.26m to 2.91m and average thickness is

estimated to be 2.02m. The layout of grid pattern marked on the sand lease area has

been shown in Plate-3. In the proposed lease area, stratigraphic analysis is carried out in four

boreholes (viz. N3F, N7D, N13G & N12B) to ascertain mineable depth of sand at Kakudi/

Kishoripal. Details of the litho logs are shown in Plate-3.



Chapter –VI

6.0 MINE BOUNDARY, RESERVES & MINE LIFE

6.1 MINE BOUNDARY The mine boundaries have been considered based on the surface constraints,

geological block boundary, lay & deposition of the sand etc. For safety of the river

banks, 50m sand barrier against the river banks has been left unmined. Certain

portion of the proposed lease area falls within the said 50m barrier against the west

bank of Brahmani River. So, it is proposed to mine maximum area leaving a sand

barrier of 50m against the river bank on western side of Brahmani River.

6.2 DELINEATION OF MINE BOUNDARIES The brief of Ultimate Mine boundaries are as below:

North: Up-stream side of Brahmani River (under mouza of Kakudi) South: Down-stream side of Brahmani River (under mouza of Kishoripal) East: East bank of Brahmani River and Khalpal reserve forest

West: West bank of Brahmani River and Kishoripal Village.

6.3 GEOLOGICAL RESERVE Because the proposed method of mining permits winning of sand only up to a

level at which excessive percolation of water does not take place, geological reserve

of sand up to bed rock of the river has not been determined.

The geological reserve of sand in the proposed lease area has been

estimated as per the Indian Standard Procedures. Since sand is required for internal

use for hydraulic sand stowing, specific grades are not relevant. The geological

section consisting of fine sand, silty sand and course grained sand inclusive pebbles

have been considered in estimation of the geological reserve. The geological reserve

of sand (in terms of Mm3) is estimated by the following formula:



Geological Reserve of sand (Mm3) = 100

t A av

Where,

A = Sand mining lease area (ha);

tav = Average thickness of sand layer (m).

The geological reserve of sand in the proposed lease area is estimated as

follows:

Lease Area = 41.885 ha

Average thickness of sand bed = 2.02 m

Geological Reserve of sand = (41.885 x 2.02)/100 = 0.8460 Mm3

= 0.846 Mm3 (say)

Thus, the geological sand reserve in the proposed lease area at Kakudi/

Kishoripal sand mine is estimated as 0.846 Mm3.

6.4 MINEABLE RESERVE From the mineability view point, the sand reserve for the estimation of the

mineable reserve, the following points have been considered.

• For protection and safety of Kakudi village (which is situated just on the

west/north bank of Brahmani River), a portion of the lease area (14.922 ha)

(as earmarked in Plate-3) has been left unmined.

• For safety of the river banks, 50m sand barrier against the nearby river bank

(i.e. west bank of Brahmani River) has been left unmined. Certain portion of

the proposed lease area falls within the said 50m barrier against the west

bank of Brahmani River.

• As isolated patch (covering 0.815 ha of lease area) has been excluded from

mineable reserve

• Further, the surface profile of the river bed in the proposed leasehold area

shows an area of depression (probable water flow path) almost centrally

located. This area (3.511ha) is also not been considered for mineability of

sand.

Further, the borehole lithologs (refer Plate-3) shows the presence of fine

grained sand, silty sand, course grained sand and course grained sand with pebbles.



Presence of pebble in sand creates problem in hydraulic sand stowing and hence,

depth of sand mining has been proposed to be restricted to the sand layer just above

that of course grained sand with pebbles. The average thickness of the sand layer

with pebbles is estimated to be [(0.20+0.10+0.20+0.15) ÷ 4] = 0.1625 m (say, 0.16

m), which will be excluded for estimation of the mineable reserve of sand in the

proposed lease area. The mineable reserve of sand in the proposed lease area is

estimated as follows:

Proposed Lease Area = 41.885 ha Lease area left for protection and safety of Kakudi village = 14.922 ha Lease area falling within the 50m barrier = 3.567 ha (excluding area left for Kakudi village) Lease area falling in isolated patch = 0.815 ha Lease area of depression (probable water flow path) not been considered for mineability of sand. =3.511 ha Effective mineable area = (41.885-14.922- 3.567-0.815-3.511) = 19.07 ha Total thickness of sand bed = 2.02 m Average thickness of sand layer with pebbles = 0.16 m Effective mineable thickness of sand layer = (2.02 – 0.16) = 1.86 m Mineable Reserve of sand = (19.07 x 1.86)/100 = 0.354 (say, 0.35 Mm3)

Thus, the mineable sand reserve in the proposed lease area at Kakudi/

Kishoripal sand mine is estimated as 0.35 Mm3.

6.5 ANTICIPATED LIFE OF THE SAND MINE Due to steady flow of Brahmani River in the territory, it has been observed

that the sand reserve in Kakudi/ Kishoripal Sand Mine is replenished every year

during monsoon more or less to the extent of the quantity of sand mined out. Thus,

the anticipated life of the mine is considered as more than 20 years i.e. the period for

which the extension of sand mining lease is requested for.



Chapter – VII

7.0 MINING STRATEGY AND METHOD OF MINING

7.1 SAND REQUIREMENT Year-wise requirement of sand for Talcher Area of MCL has been estimated/

forecasted by the mine authorities and is tabulated in Table 2.1 of Chapter-II of this

report, which is summerised below:

Table-7.1: Annual requirement of sand (Mm3) during applied lease period in Talcher Area, MCL

Year Requisite Quantity of Sand (Mm3) Y-1 0.174 Y-2 0.274 Y-3 0.282 Y-4 0.180 Y-5 0.180 Y-6 0.520 Y-7 to Y-20 0.496 (say, 0.500)

Thus, the total future sand requirement of Talcher Area, MCL is projected at

0.5 Mm3/year (i.e. 5,00,000 m3/year or 1667 m3/day) for 300 days of working in a year.

7.2 AVAILABILITY OF SAND FROM KAKUDI SAND MINE The mineable reserve in Kakudi/Kishoripal Sand Mine has been estimated to

be 0.35 Mm3 of sand (refer Para 6.4 of Chapter-VI of this report). Due to systematic

replenishment of sand every year, the mineable reserve of the proposed sand mine

has been considered unchanged throughout the anticipated life of the mine (refer

Para 6.5). From the sand mine, sand will be mined and transported to different end-use

mines of Talcher Area, MCL for its use mainly in hydraulic sand stowing in the

underground depillaring districts. In general, sand mining period has been

considered as 7 months (i.e. dry season), when the river remains dry enough to

allow mining operation at its bed and the mining operation is planned for during

these 7 months only. But, due to unforeseen/ unpredictable situations during this dry

season, it may happen that the river gets flooded and consequently, the mining

operation gets hampered to some extent, and thus reducing the extractability of sand



from the mine site. Further, during transportation and handling of sand at the end-

use plant site, there will be spillage of certain quantity of sand as transportation

losses. Availability of sand for production (Mm3/year) during proposed lease period at

Kakudi/Kishoripal Sand Mine is estimated as below:

• Estimated mineable reserve : 0.35 Mm3

• Probable mining losses due to unforeseen/ unpredictable situations: 20% of Mineable reserve (assumed)

• Available reserve at the mine site : 0.35x(1–0.2) = 0.28 Mm3 Availability of sand at end-use plant (i.e. UG coal mine) site (Mm3/year) during

proposed lease period will be less due to probable losses due to spillage during

transportation/ handling of sand.

7.3 ENVISAGED PRODUCTION CAPACITY OF KAKUDI/KISHORIPAL SAND MINE The production capacity of the proposed Kakudi/Kishoripal Sand Mine is

envisaged to be 0.25 Mm3 per annum.

7.4 FULFILMENT OF SAND REQUIREMENT FROM KAKUDI/KISHORIPAL SAND MINE As analysed in Para-7.1 & 7.2, the envisaged requirement of sand in Talcher

Area of MCL will be fulfilled during initial years to some extent. However, during

subsequent years, the sand requirement of Talcher Area needs to be met from other

sand mines in addition to the proposed Kakudi/Kishoripal Sand Mine.

7.5 SURFACE CONSTRAINTS ON MINE DEVELOPMENT The proposed leasehold area of Kakudi/Kishoripal Sand Mine lies entirely in

the river bed of Brahmani. The major constraints such as the flow of river, deposition

of exposed sand banks & sand bars and flow-seasonality of river impede the sand

mine development. As sand is loose and flat deposit, it is difficult to win sand directly

from river bed. To overcome the constraints and for plying of tipping trucks,

temporary road (i.e. causeway) inside the river-bed has been envisaged. Apart from

the above said constraints, there is no major surface constraint regarding mine

development.



7.6 OPENING OF SAND DEPOSIT The proposed leasehold area of Kakudi/ Kishoripal Sand Mine lies entirely in

the river bed of Brahmani. On the western bank of the river near Kakudi village, there

exists an approach road (partly metalled and partly ‘kutchha’ or unmetalled) (running

along the river bank) which is being used for transport of sand from river–bed to the

mine concerned. This approach road will provide an access to the proposed sand

mine. From this approach road, temporary paths/ roadways (i.e. causeways) in the

sand mining site (i.e. in Brahmani river-bed) will be constructed to reach the mining

site (i.e. sand mining benches) during dry season. These temporary roadways/

causeways are generally constructed by pebbles and boulders collected during the

winning of mineral/ sand. The causeway should be wide enough to accommodate at

least two trucks (tipping type) to ply easily on the same.

7.7 SAND MINING METHODS

For suitability of the mining methods in the proposed sand mining area, it is

essential to view the constraints such as the flow of river, deposition of exposed

sand banks & sand bars and flow-seasonality of river. There are various mining

methods for wining of sand from river bed depending upon the aforesaid constraints.

The following are the combinations for sand gathering and transportation popularly

practised in our country:

• Manual winning/ loading of sand onto non-tipping trucks for transportation;

• Mechanised winning/ loading of sand by excavators (shovels/ back-hoes/ pay-loaders) onto tipping trucks for transportation;

• Sand winning by scrapers/ belt conveyors followed by transportation of sand by tipping trucks;

• Sand winning by pontoon slurry pumps followed by mechanised loading and transportation of sand by tipping trucks;

• Sand winning by scrapers/ belt conveyors followed by transportation of sand by ropeways, etc.

Each of the aforesaid methods is site specific and depends on the quantity of

sand required to be mined.



7.8 SELECTION OF SAND MINING TECHNOLOGY The methods of sand mining & transportation (as mentioned in Para 6.6) are

analysed for selection of a suitable mining method for Kakudi/ Kishoripal Sand Mine

depending upon the envisaged sand requirements. In this context, on the request of

the Coal Controller, CMPDI took up a job for deriving a methodology for estimation of

normative cost of sand stowing inclusive of sand gathering and transportation cost.

Accordingly, a report titled “Revised Methodology for Estimation of Normative Cost of

Sand Stowing (Price Base: 2009-10)” was prepared by CMPDI in March 2011 and

was subsequently approved by the CCDA Committee. In this report, various sand

mining/ transportation methods were studied. The study revealed that out of the

aforesaid sand mining methods (as listed in Para 6.6), the most techno-financially

viable option is mechanised winning/ loading of sand by excavators (shovels/ back-

hoes/ pay-loaders) onto tipping trucks for transportation. Hence, this option is

selected for sand mining/ transportation at Kakudi/ Kishoripal Sand Mine.

Further under the aforesaid selected option, two variants were also worked

out in the said methodology, which are as follows:

• Excavators (pay-loaders) loading onto tipping trucks

• Excavators (shovels/ back-hoes) loading onto tipping trucks Even though, pay-loader variant turns out to be cheapest one, but due to the

operational advantages of the back-hoe shovels, the variant with back-hoe

excavators have been chosen in combination with tipping trucks, which is in vogue

also in Kakudi/ Kishoripal Sand Mine.

7.9 MODE OF SAND MINING OPERATION Two options (or mode of operation) have been envisaged for the sand mining/

transportation operation in this report:

I. Departmental Option, and II. Outsourcing Option.

I. Departmental Option: In departmental option, it has been proposed to operate the mine with

departmental resources. Hydraulic excavator / back-hoe with tipping trucks

combination has been envisaged for winning of sand from Brahmani river-bed. It is



also proposed to respond to improvements in technology and equipment, which

would result in, improved profitability and productivity taking into account of safety

and environmental parameters.

II. Outsourcing Option: Proposed mining schedule of the outsourcing option for sand mining is

proposed to be similar to the mining schedule of the departmental option. In

Outsourcing option, similar type & size of equipment as proposed in departmental

option have been considered for deployment by the external agency. Except

supervising officer/manager of the proposed mine, rest will be contractual

manpower. The scope of work to be carried out by the external agency in the

outsourcing option includes:

• Approach road and haul road (i.e. temporary causeway) preparation/ construction;

• Winning/loading/transportation of sand from sand mine up to end use plants (i.e. coal mines);

• Dozing/levelling of sand as required at the proposed sand mine;

• Operation and maintenance of the mining equipments/ HEMMs in use;

• Water spraying on haul roads and approach roads to control dust generation;

• Security arrangement at the mine site, and

• All other activities related to mine operation except supervisory manager.

All statutory rules, regulations and applicable laws have to be followed

including those related to government licenses, workmen compensation, insurance

etc. Rest activities of mine operations, power supply arrangements etc will be carried

out by the project.

7.10 METHOD OF SAND MINING 7.10.1 MINE DEVELOPMENT STRATEGY

Considering the geo-mining characteristics of the river sand deposit being

loose & flatter, sand will be directly mined from the river bed using excavators/ back-

hoe shovels. The excavators will load sand onto tipping trucks at the river-bed itself.

For the trucks to make access upto the excavators, temporary causeways (two

numbers proposed) on the river-bed (using boulders/ pebbles, hume pipes, etc.) will

be constructed within the proposed leasehold area (refer Fig. 6.1). The length of the

causeway will depend upon the extent of exposed sand banks and sand bars in the



leasehold area. A 50m sand barrier against the river bank will be left un-mined for

protection of the bank and the habitation in near vicinity to the river. Further, the

surface profile of the river bed in the proposed leasehold area shows an area of

depression (probable water flow path) almost centrally located. This area is also not

been considered for mineability of sand.

From the river statistics, it has been observed that, on an average, water

flows over the sand layers in Brahmani River during five months in a year during

which (monsoon period) no sand mining operation is practicable. Sand will be mined

out during dry season only on exposed sand banks and sand bars during the

remaining period of seven months in a year. During this period the area of the sand

quarry is free from submersion and the river flows away from the deposit or diverting

the flow of water to one side of the bank. However, in case of emergency (i.e. heavy

rainfall in the upstream side of the river, release of water from upstream dams etc.),

the sand mining will have to be stopped till the emergency situation is over. In

general, during monsoon period, the sand mining operation will be kept suspended.

The requirement of sand for the monsoon period will be mined beforehand and

stacked at the sand stock yards at the end-use plant sites.

7.10.2 LAYOUT OF MINE WORKINGS

Fig. 6.1 shows a schematic layout of the proposed sand mine showing the

method of mining with sequence of strip mining operations. Sand will be won along

the deposit of exposed sand banks in a strip fashion. Strips will be marked up to the

boundary of proposed sand lease area. The excavators/ backhoes will be placed at

one end of the selected strip and will dig sand upto a depth of around 1.85m (i.e.

upto course grained sand layer leaving the sand pebble layer intact) in single bench.

After taking one initial mining cut from the boundary of proposed mining lease area,

the sand winning will be carried out in retreating manner from boundary in regular

strips towards the nearest causeway. It will be done in such a manner that the flow of

river channel is not obstructed. Sand mining will be restricted up to the permissible

limit from the river bank. The proposed mining layout parameters are given in Table

6.2 below:



Table-7.2: Mining layout parameters (Backhoe-Tipper Operation) for the proposed sand mine at Kakudi/ Kishoripal

SN. Parameters Unit Value Remarks

1. Bench height m 1.85 2. Working bench width m 20.00 3. Bench slope Degree 70-80 4. Causeway width m 7.00 For to & fro movement of

tipping trucks

7.10.3 MODE OF WORKING The mechanised mode of working has been proposed at Kakudi/ Kishoripal

sand mine using diesel operated excavator shovels (backhoes) in combination with

diesel operated tipping trucks. Following type of mining equipments/ machinery will

be required at the mine for carrying out the mining operation:

• Hydraulic excavators (Back-hoe shovels) of 1.2m3 bucket capacity – diesel operated

• Tipping trucks of 8.5 m3 carrying capacity – diesel operated, and

• Motor grader (145 HP) / pay loader (of 1.5 m3 bucket capacity) – diesel operated.

• Water tanker/ sprinkler(Capacity 12kl) - diesel operated

• Utility service vehicle – diesel operated.

• Light vehicle 7.10.4 OPERATIONAL PARAMETERS

Since Brahmani River is in spate during the rainy season, sand winning

operation will be limited to a period of seven months from November to May every

year. The working parameters considered are as follows:

• Annual production capacity: 0.25 Mm3

• Working months per year: 7 months

• No. of working days in a month: 25 days

• Working days per year: 7 x 25 = 175 days

• Daily production: 0.25x1000000÷175 = 1428.57 (say, 1430 m3)

• No. of working shifts per day: 2 shifts (6AM to 2 PM & 2PM to 10PM)

• No. of hours per shift: 8 hours

• Effective working hours per shift: 7 hours

• Hourly system capacity: 1430 ÷ (2 x 7)= 102.14 (say, 102.5 m3/hr)



Based on the sand requirement, the population of the proposed mining

equipments are estimated for both excavators & tipping trucks. The estimation

methodology of the same is given below:

• Capacity of backhoe bucket : 1.2 m3

• Backhoe bucket fill factor : 0.9

• Effective backhoe bucket capacity : 1.2×0.9 = 1.08 m3

• Backhoe cycle time (as per the CCDAC approved report of March 2011) : 36 sec

• Effective tipping truck capacity : 8.5 m3

• No. of backhoe swings required to fill a tipping truck : (8.5÷1.08) = 7.87 (say,8 swings)

• Time required to fill a tipping truck : 8 x 36 = 288 sec

• Cycle time for backhoe for loading a tipping truck : 288 sec

• Effective working hours : 14 hours/day

• Effective production per day : 8.5 x (14x60x60÷288) = 1487.5 m3

• Winning months : 7 months

• Working days : 175 days

• Possible production by Back-hoe-Tipper combination : 1487.5x175= 260312.5 (say,0.26 Mm3/yr) Thus, the envisaged production of 0.25 Mm3/annum is achievable by the

proposed system of mining with backhoe excavator and tipping truck combination.

7.10.5 TRANSPORT LEAD DISTANCES As furnished by the mine authorities of MCL, following are the transport lead

distances from Kakudi/ Kishoripal Sand Mine to different mines/ collieries of Talcher

Area, MCL:

• Talcher Colliery: 11-12 km;

• Deulbera Colliery: 6-7 km;

• Nandira Colliery: 19-20 km;

• Handidhua Colliery: 8-9 km.

As per the year-wise mine-wise requirement of sand (furnished by the mine

authorities of MCL) during the proposed lease period, it has been observed that after

initial four years, the sand requirement will be mainly concentrated to two mines of

Talcher Area, MCL (viz. Talcher Colliery and Nandira Colliery) amounting to 0.5

Mm3/year. The requirement will be shared by both the collieries - Talcher and

Nandira Colliery in 4:1 ratio respectively.



7.10.6 EXTENT OF MECHANISATION The proposed system is designed to fully utilise the loading capacity of the

excavator(s) and transport capacity of the tipping trucks. The calculation for number

of mining equipments is as follows:

• Production capacity from Kakudi/ Kishoripal Sand Mine: 0.25 Mm3/year

• Effective days worked per annum : 175 days

• Quantity required per day : 1428.57 (say,1430 m3/day)

• Effective tipping truck capacity : 8.5 m3

• No. of truck trips per day : 1430÷8.5 = 168.23 (say, 170 trips)

• Effective working hours per day (for 2 Shifts working) : 14 hours

• Cycle time for each truck per round trip (as per the CCDAC approved report, March 2011): a. For lead distance of 11-12 km : 71.6 minutes b. For lead distance of 19-20 km : 153.6 minutes

• Quantity of sand required to be supplied: a. For lead distance of 11-12 km : 1430 x 4 ÷ 5 = 1144 m3/day b. For lead distance of 19-20 km : 1430 x 1 ÷ 5 = 286 m3/day

• No. of truck trips required per day: a. For lead distance of 11-12 km : 1144÷8.5=134.6 (say, 135 trips/day) b. For lead distance of 19-20 km : 286÷8.5 = 33.6 (say, 34 trips/day)

• No. of trips possible per truck per day : a. For lead distance of 11-12 km :14x60÷71.6=11.73 (say12 trips/truck/day) b. For lead distance of 19-20 km : 14x60÷153.6=5.46 (say, 6 trips/truck/day)

• No. of trucks required per day : a. For lead distance of 11-12 km : 135 ÷ 12 = 11.25 (say, 11 trucks/day) b. For lead distance of 19-20 km : 34 ÷ 6 = 5.66 (say, 6 trucks/day)

• Total no. of trucks required per day : 11 + 6 = 17 trucks/ day.

• Truck availability at mine site : 85% (assumed)

• Requisite no. of trucks in the fleet : 17÷0.85=20 trucks/day

Thus, the requisite population of the mining equipments in Kakudi/ Kishoripal

Sand Mine is listed in Table-7.3 below:



Table 7.3: List of major mining equipments proposed in Kakudi/ Kishoripal Sand Mine Sl. No. Mining Equipment Type No.

1. Back-hoe hydraulic shovel (diesel operated) 1.2 m3 bucket capacity 1 2. Tipping Trucks (6-wheeled/ diesel operated) 8.5 m3 carrying capacity 20 3. Motor Grader/ Pay loader 145 HP/ 1.5 m3 bucket capacity 1

4. Water tanker/ sprinkler (for supply of drinking water and for dust suppression) 12 kl capacity 1

5 Utility service vehicle - 1 6 Light vehicle 1

7.11 PRODUCTION SCHEDULE Considering the initial time required for approval, clearance, permission, etc.

as about 1(one) year, the sand production is expected to start from 2012-13

onwards. The expected sand production schedule has been shown in the Table 7.4

below.

Table-7.4: Production schedule for the proposed sand mine during the applied lease period

Year Y-1 & Y-2 Y-3 & Y-4 Y-5 to Y-20 Remarks Sand production (Mm3)

0.25 0.25 0.25 Sand production will be limited to the envisaged production capacity of the sand mine or the

projected sand requirement (whichever is less)

7.12 BLASTING SYSTEM Blasting arrangements are not necessary for the collection of sand at the

proposed sand mining site i.e. from Brahmani river-bed.

7.13 STACKING OF MINERAL REJECTS AND DISPOSAL OF WASTE The proposed method of mining specifies the excavation of sand directly from

the river bed in the proposed lease hold area. As indicated in the borehole lithologs

(refer Plate-3), the river bed contains sand of various grain sizes (fine to coarse-

grained) which is mineable. There is no top soil or overburden to be disposed off/

stacked separately.

7.14 MINE DRAINAGE Since the sand winning operations are not undertaken during the rainy

season, arrangements for de-watering are not necessary. The river flow also will be

away from the place of sand collection.

PPre-feasibility Report of Kakudi & Kishoripal Sand Mine in the river bed of Brahmani at Talcher over lease area of 41.885 ha


Chapter – VIII

8.0 MINING SCHEDULE AND EQUIPMENT PHASING

8.1 MINING SCHEDULE Considering the initial time required for approval, clearance, permission, etc.,

the sand production is expected to start from 2014-15 onwards. The expected sand

production schedule has been shown in the Table 8.1 below.

Table-8.1: Mining schedule for the proposed sand mine at Kakudi during the applied lease period

Year Y-1 & Y-2 Y-3 & Y-4 Y-5 to Y-20 Remarks Sand production (Mm3)

0.25 0.25 0.25 Sand production will be limited to the envisaged production capacity of the sand

mine or the projected sand requirement (whichever is less)

8.2 EQUIPMENT PHASING Since sand production from Brahmani river-bed will start from 2014-15 (Year-

1 or Y-1), phasing of equipments in both options (departmental as well as

outsourcing) (Refer Para 7.9 of Chapter-VII) has been envisaged in the Table-8.2 as

follows: Table-8.2: Equipment phasing for proposed Sand Mine at Mandapal for both options.

Sl. No. Mining Equipment Equipment size/

capacity Equipment Phasing (No.)

Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 to Y-20

1 Back-hoe hydraulic shovel (diesel operated)

1.2 m3 bucket capacity 1 - - - - - -

2 Tipping Trucks (6-wheeled/ diesel operated)

8.5 m3 carrying capacity 20 - - - - - -

3 Frontend loader/ Pay loader 1.5 m3 bucket capacity 1 - - - - - -

4 Water tanker/ sprinkler (for supply of drinking water and for dust suppression) (diesel operated)

12 kl capacity 1 - - - - - -

5 Utility service vehicle (diesel operated) - 1 - - - - - -

6 Light vehicle (diesel operated) - 1 - - - - - -



Chapter-IX

USE OF MINERAL AND MINERAL BENEFICIATION

9.1 USE OF MINERAL

The sand mined out from the river bed of the proposed lease area

at Kakudi/Kishoripal will be used for hydraulic stowing purposes in the

end-use coalmines/collieries of Talcher Area, MCL. Sand as stowing

material is required for filling the voids (i.e. de-coaled areas) created in

underground coalmines, basically to keep the roof intact, or allow limited

subsidence with a view to protecting the surface or sub-surface

structures and environment while aiming at maximum recovery of coal

under the existing set of geo-mining constraints, such as.

Thick seam mining,

Extraction of contiguous seams,

Extraction of highly gassy seam,

Extraction of the seams prone to spontaneous combustion

Extraction of workings liable to bumps or premature collapse and

multiple seams,

Final extraction of the seams lying below built-up areas, important

surface structures, water bodies, working below goaves filled with

water, working below fire areas, etc.,

Protect environment,

Filling up of the old workings below townships/villages etc. with a

view to restricting subsidence as well as to replacing water –filled

goaves to overcome the problem of inundation of the existing mine

workings, etc.



The sand won from the river-bed is transported to the end-use

colliery sites by trucks. In the sand stowing bunkers, it is conveyed

through pipe lines to the underground workings/ goaves of the mine in

the form of sand-water slurry mixture.

9.2 MINERAL BENEFICIATION

The sand is directly used for stowing purposes after mechanical

screening to remove pebbles, weeds etc. The sand available in the river

bed of Brahmani at the proposed lease area is considered suitable for

sand stowing purposes and is being used for the same. No beneficiation

of sand as mineral will be required before its use in the said coalmines.



Chapter – X

10.0 MANPOWER AND TRAINING

10.1 MANPOWER In the proposed Kakudi/ Kishoripal sand mine, various manpower have been

envisaged for winning of sand at the mine-site and transporting of the same to the

end-use plants. The manpower required for the proposed sand mine has been

assessed keeping in view the location of mine, work culture and work load norms

prevalent in Talcher Area of MCL. For a target production of 0.25 Mm3/year of sand,

the total manpower requirement of Kakudi/Kishoripal sand mining project has been

estimated as 99. This will include both statutory and non-statutory manpower. A

tentative list of manpower has been proposed in Table 8.1 below:

Table-10.1: Break-up of envisaged manpower (tentative) at Kakudi/Kishoripal Sand

Mine

Sl. No. Classification Manpower % Manpower

1 Unskilled 24 24% 2 Semi-skilled 15 15% 3 Skilled 56 57% 4 Officers/ Supervisors 4 4%

TOTAL 99 100% The above manpower is based on 300 working days per annum and sick and

leave reserves of 16% as per norms for permissible authorized leave. Apart from the

above mentioned direct employment potential, the proposed sand mine will generate

secondary and tertiary employment for the local people.

10.2 TRAINING

Kakudi/ Kishoripal sand mine is located in Brahmani River, which is a

perennial river. Training needs to be imparted to all personnel involved with

management, operation and maintenance of different machines. Supervisory training

will be imparted at the training institute of MCL.



Chapter – XI

11.0 SAFETY AND SUPERVISION

11.1 INTRODUCTION

Elaborate safety measures have been laid down in the statute concerning

safety in sand mines which need to be adhered to. In addition to existing statutory

provisions, a reference has been made here to some special precautionary

measures, which have been considered important and thus require special attention

for the safety of men and machinery engaged in the proposed sand mine at Kakudi/

Kishoripal.

11.2 SURFACE FLOODING / INUNDATION Proper care regarding the surface flooding / inundation from the unforeseen

circumstance (like sudden inrush of water from upstream side, flash flood, or

blockage of water flow in downstream side of Brahmani River) shall be taken so that

the machinery deployed in proposed winning areas in the river bed of Brahmani

would not get drowned. Suitable warning system both upstream and downstream

side will have to be maintained for giving warning signal in advance of impending

danger so that machinery deployed could be withdrawn at a safer distance from the

proposed sand mining site.

A careful assessment of the dangers of surface flooding / inundation/ flash

flood from these unforeseen circumstances shall be made before the onset of every

monsoon season and before start of the mining operation. Adequate precautions

against such dangers shall be clearly laid down & implemented.

11.3 AIR-BORNE RESPIRABLE DUST

At proposed Kakudi/ Kishoripal sand mine, dust will be generated due to

mining activities (winning & loading) and during transportation by tipping trucks to

end-use plants. Exposure to airborne respirable dust beyond permissible limit may

lead to occupational health hazard. Suitable measures need to be taken to prevent

formation of dust and its chances of being airborne.



11.4 FIRE

Fire-fighting equipments are to be provided in adequate numbers at suitable

locations and in movable machinery to meet any eventuality in case of outbreak of

fire. Adequate provision for fire detection and alarm system shall be made and the

mine management will need to remain vigilant. All other statutory provisions with

regard to prevention of dangers due to fire will be strictly adhered to.

11.5 ADDITIONAL MEASURES

To promote safety in the mine, following additional provisions also need to be

made:

• All statutory precautions and guidelines should be strictly followed in case

of diesel operated excavators/ backhoes.

• Necessary arrangements are to be made to keep the noise level

generated by the excavators and tippers within permissible limit by using

silencers, dampeners, etc.

• For occupational health hazards, initial medical examination and periodical

medical examination of all worker engaged in the proposed sand mine are

to be done at time of appointment and at regular interval respectively.

In addition to the above, all safety precautions which are required to be

maintained as per statute should be followed including regular refresher courses for

workers and supervisors.

Safety of men and machine deployed in the mining area should be properly

taken care of irrespective of whether the mining activities are performed by

departmental or by outsourcing option.



Chapter - XII

INFRASTRUCTURE FACILITIES PROPOSED

12.1 SITE SERVICES M/s MCL, as the Applicant Company of the proposed Kakudi/ Kishoripal sand

mine, will provide the necessary infrastructures for its operations and for the well-being of its work force. It is also expected to provide infrastructure improvement for the local community. A list of such infrastructure includes roads, offices and other civic amenities, etc.

12.2 MINE FACILITIES At Kakudi/ Kishoripal sand mining site (i.e. at Brahmani river-bed), sand mining

operation will be carried out by the diesel operated excavators (backhoes) loading directly onto diesel-operated tipping trucks. During non-operation period or shift, the excavators (backhoe shovels) and motor-grader/ pay-loader will be stationed at the sand mine site/ sand bench only, while the tipping trucks will be parked at an earmarked place near Deulbera Colliery Pits of MCL. Apart from the connecting roads/ causeways, no other infrastructure has been proposed at the mine site. Suitable arrangements will be made to light the working places (i.e. sand benches) and the connecting roads/ causeways during night hours.

For maintenance and repair of equipments/ machineries and for parking of tipping

trucks, an area (around 700 m2) has been earmarked in the close proximity to the proposed mine site at Deulbera Colliery of MCL, where a workshop-cum-store unit (having covered space of approximately 50 m2) has been envisaged. In addition to the workshop-cum-stores unit, a small office (having covered space of approximately 35 m2) has been proposed in the premises for day to day workings/ recording /billing etc. Adequate electric power will be supplied to this earmarked site as per its requirement. Other facilities related to work personnel of Kakudi/ Kishoripal sand mine (as per statute) will be provided by MCL.



12.3 POWER SUPPLY SYSTEM The nearest distribution electric substations of GRIDCO are located at Deulbera

Colliery/ Talcher township of MCL. The power will be supplied to the proposed sand mine by the overhead transmission lines from the substations for surface lighting only. The length of this overhead transmission line is around 1.0 km. Further, at the office-cum-workshop/store site (located at Deulbera Colliery pit site), electric power will be supplied from the said substation in the following sections through power cables/ transmission lines:

• Workshop

• Office Buildings

• Store

• Vehicle parking site, etc.

12.4 CIVIL CONSTRUCTION The life of the mine has been estimated to be twenty years (i.e. lease period)

including non-mining period. As the existing infrastructure of the neighbouring Deulbera Colliery of M/s MCL is envisaged to be used for Kakudi/Kishoripal sand mine, no major civil structure is proposed to be erected. The existing residential buildings and civil amenities are to be used for the project. Following is the list of major civil constructions to be built/ reused for the mining project.

• Office Building;

• Workshop-cum-store shed;

• Rest Shelter;

• Security Room, etc.



Chapter – XIII

13.0 LAND REQUIREMENT

Kakudi/ Kishoripal sand mine covers an area of 41.885ha in the river-bed of

Brahmani. There is no forest land at the proposed mine site. Apart from the above-

said land, Kakudi/ Kishoripal sand mine requires additional land (of 0.070 ha) for

development of office-cum-workshop/store complex. Exclusive of the proposed sand

mine lease area of 41.885 ha, the break-up of additional land requirement for the

project is shown in Table-10.1 below.

Table 13.1: Break up of the land requirement for Kakudi/Kishoripal Sand Mine

Particulars Unit Quantity

Govt. acquired land

Private land Total

Office-cum-workshop/store complex

Hectares 0.070 (MCL acquired)

- 0.070

TOTAL Hectares 0.070 - 0.070



Chapter –XIV

14.0 ENVIRONMENT MANAGEMENT PLAN

14.1 BASE LINE INFORMATION Based on the base line data/ information in the neighbouring coal mines of

MCL, the Environment Management Plan has been prepared.

14.2 EXISTING LAND USE PLAN The proposed sand mining lease area falls within two mouzas namely, Kakudi

(41.450 acres) and Kishoripal (62.050 acres). Details of the land use pattern are

given below:

• Forest Land : Nil

• Govt. vested land (River) : 41.450+62.050 = 103.500 acres (i.e. 41.885 ha)

• Residential Area : Nil

• Company Land : Nil

• Private Land : Nil

The land use pattern of the proposed sand mining lease area (i.e. Kakudi/

Kishoripal Sand Mine) is shown in Plate No. 3. The land is the govt. land and the

state government has granted lease to M/s MCL for sand mining.

14.3 LAND ENVIRONMENT Kakudi/ Kishoripal Sand Mine (i.e. the core zone) does not include any forest

land. The sand mining area/ block is bounded in north, south & east by Brahmani

River and west by Kishoripal village. The land is covered by sand and in past the

sand mining was done by MCL on this area.

14.4 EXISTING EMVIRONMENTAL QUALITY The environmental quality of 5.0km radius from the proposed project has

been recorded by part base line data of Lingaraj opencast project. The study covers

the core zone area (mine lease area) and buffer zone area.



14.4.1 AMBIENT AIR QUALITY The monitored ambient air quality data/ baseline data of the existing proposed

mine shows the following status: The range of PM10 in core zone varies from 54 to

136 μg/m3 in the study area. The PM2.5 concentration range from 12 to 38 μg/m3. The

SO2 (oxides of sulphur) and NOx (oxides of nitrogen) concentration is also varying

from 4.2 to 20 μg/m3 and 6.8 to 26 μg/m3 respectively. The value of the above data

shows that the ambient air quality is well within the CPCB limit of Coal Mines

Standards.

14.4.2 WATER QUALITY

Core zone is situated in Brahmani River. The water quality of the area was

sampled and analysed for determining the existing quality status of various water

quality source i.e. Ground Water, Surface Water and Brahmani river water quality.

The analysed water samples were compared with permissible limit and shows that

water quality conforms to the permissible limit.

14.4.3 HYDRO-GEOLOGY AND AQUIFER CHARACTERISTICS

In the Talcher Coalfield (where the proposed sand mine is located), ground

water occurs in the porous colluvial material and weathered mantle as well as in the

joints, fissures and fractures. These are met with at shallow depths in the partly

weathered rocks and deep-seated fresh rocks. Though shale, coal, mud stones etc.

act as confining horizons when sand-witched with water bearing strata, but the very

nature of these confining horizons permit considerable vertical flow of water. As

these confining horizons have very poor hydraulic conductivity in horizontal

directions, these horizons also act as barrier boundaries when they get juxtaposed

with water bearing horizon because of geological disturbances.

The large pore spaces in the fine grained sedimentary rocks provide storage

for huge quantities of water. The porosity of fine grained sediments decreases with

depth of deeper depositional environment. Cemented sandstones and

conglomerates made sedimentary formation hard and compact which offer very

limited scope to be considered as aquifers in themselves. When these formations

are geologically disturbed by faulting, jointing and fracturing produces secondary

porosity. This secondary porosity when it is saturated with ground water forms good

aquifer. The sand mining involves excavation of sand near the Brahmani river bed up



to 2.02m depth. No pumping discharge is involved, therefore it is assumed that

hydrogeological condition will not be affected.

14.4.4 NOISE LEVEL Noise level was measured in study area. The noise level ranges between 40.2

dBA(residential) to 58.7 dBA (industrial) in day time and 36.6 dBA (residential) to

56.5 dBA (industrial) in night time. The noise level was compared with CPCB

Standards and found within the permissible limits.

14.4.5 FLORA & FAUNA

The project area is situated in non-forest land. There is no endangered

species of flora and fauna in the sand mining site.

As the proposed sand mining lease area (i.e.Kakudi/ Kishoripal) lies entirely in

the bed of Brahmani River (which is of perennial nature), the core zone is devoid of

any flora. The 5km buffer zone area contains large portion of agricultural land, waste

land, mining pit/ colonies and dumping areas.

Brahmani River, being a perennial river hosts several species of fish and

water animals and insects. The fishes, amphibians and water snakes are the major

aquatic fauna of the Brahmani river. The entire sand mining is confined to sand

patch of Brahmani river and no flora-fauna will be affected by the mining activities.

14.4.6 SOCIO ECONOMIC STATUS There is no habitation in the core zone. Hence, socio-economic profile of the

study area will not be affected. Further, there is no requirement of resettlement and

rehabilitation for this mining plan as the land is devoid of habitation. The sand mining

will further improve the employment opportunities of the local people.

Yield of the cultivated land is poor. Knowledge of improved techniques of agriculture is lacking in the area. Land development and adoption of dry farming techniques require high priority for increasing

productivity of land and income of the families depending on agriculture.



The occupational structure of the study area is given below which has been

taken from block-wise census report.

• Main worker - 26.0%,

• Marginal worker - 8.5%,

• Non workers - 65.5%.

14.4.7 PLACES OF RELIGIOUS, HISTORICAL AND ARCHAEOLOGICAL IMPORTANCE

There are no places of religious historical and archaeological importance in

the core and buffer zones except small village temples and Paschimeswar temple.

14.5 ENVIRONMENTAL IMPACT ASSESSMENT AND MITIGATION MEASURES

The section summarizes the pollution potential of the proposed mining plan

and its possible impact on the surrounding environment during pre-operational and

operational phases and the necessary management actions proposed for control and

abatement of pollution.

14.5.1 IMPACT DUE TO AIR POLLUTION AND ITS MANAGEMENT

The sand mining will be from river bed. The sand will be in wet condition as

the excavation involves sand mining upto 2.02m depth of surface area. The sand

transportation will be through tipping trucks to the mine site. The excavation will be

through hydraulic excavator. The excavation will not generate fugitive dust as the

sand will be partly in wet condition. The emission from the vehicular movement will

be negligible due to low volume of sand off-take.

Air pollution control measures The following control measures will be taken to prevent air pollution due to

loading and transportation of sand:

(a) Surfacing of all service roads/ permanent roads with asphalt and concrete to prevent dust generation;

(b) Reduction of the length of sand transportation road to minimum possible.



(c) Proper maintenance of tyre quality of all tyre-mounted vehicles to minimize formation air-borne dust;

(d) Frequent water spraying on sand transportation roads, truck loading points, etc; (e) Dust suspension will be done on transportation roads through mobile sprinkler . (f) Transportation of sand through covered dumpers to prevent spillage and generation of

fugitive dust due to wind erosion.

14.5.2 IMPACT DUE TO WATER POLLUTION AND ITS MANAGEMENT There will be no pumping of water from mine site. No effluent will be

generated by sand mining process. No impact on water quality is envisaged due to

mining.

14.5.3 IMPACT DUE TO NOISE POLLUTION AND ITS MANAGEMENT

There will be no major source of noise pollution in the proposed sand mine

except intermittent operation of HEMMs (i.e. excavators/ backhoe shovels, and

motor grader/payloader) and movement of vehicle in and out of sand quarry/ mine.

Impact of noise The workmen associated with the operation of HEMMs, etc. will not

experience a noise level above stipulated 90 dB (A) [DGMS Circular, No.18 (Tech.)

of 1975] for more than 5.5 – 6.0 hours per shift.

Noise pollution control measures However, the following measures will be taken to minimize the possible

adverse impact of noise in and around the mining area:

(a) HEMMs with sound proof cabins,

(b) Routine maintenance of equipment,

(c) Roads should be smooth, so that noise pollution will be less due to

vehicular movement,

(d) Routine monitoring of noise levels at various points, etc.



14.5.4 MANAGEMENT OF SOCIO-ECONOMIC IMPACTS Social impact

Population growth: Only small manpower will be deployed for the mining operation . Out of 99

manpower 24% manpower will be of unskilled category and mostly will be from

local population.

Educational facilities A number of educational institutes are already there in the buffer zone and its

neighbourhood. The facilities already provided in the neighbouring projects will

cater to the need of this project. So there will be no migration of

population.Further, the educational institutes owned by MCL are also accessible

to local population.

Healthcare facilities The coal company has a number of healthcare centres including a well equipped

Regional Hospital and a specialised “referral” hospital in the coalfield area.

Healthcare facilities have been provided in the neighbouring projects. The above

facilities will cater to the need of employees of this project. The local people can

also avail these healthcare facilities.

Economic impact General improvement of economy of the area

Increase in revenue of the state exchequer

Impact on village habitation The core zone of the project comprising of sand excavation zone only, covers

partly the land from two (2) villages namely,Kakudi and Kishoripal. However, no

families will be displaced due to mining and other associated activities of this

project. Rehabilitation and resettlement of the project affected families and

project affected persons will not be required.

14.5.5 IMPACT ON BIO-DIVERSITY AND ITS CONTROL MEASURES The area is devoid of vegetation and wild life. The mine site is confined to

sand deposit land which is only 19.075 ha. No flora – fauna activities will

be affected by the sand mining process. The Khalpal RF is an open jungle

and lies within 3 km of buffer zone area. No activity is envisaged within 3

km of Reserve Forest. No wild life corridor is existed in the buffer zone

area.



14.5.6 IMPACT ON LAND USE AND LANDSCAPE Impact on land use pattern

The mining of sand will be carried out directly in the river-bed (of Brahmani

River) and sand excavated will be replenished every year as the mining operation

will be suspended during monsoon for natural replenishment. Sand will be

transported to the end-use coal mine sites without creation of sand dumps at the

mining site. Thus, there will be shallow excavation of the area and impact on land

use will be reversible. There exist environment impacts due to temporary landscape

disruption particularly shallow pit. As surface mining has been envisaged at the sand

bed, there will be no impact on land use pattern.

Control measures to restore land use & landscape There will be no external dump. The external sand dump at the end-use

coal mine sites will be of temporary nature and the dump area naturally

reclaimed as soon as sand winning operation is suspended.

Sand will be mined in strips. The strip cutting sequence will be so

designed that the mining operation will not block the normal course of

water flow in Brahmani River. The face slopes will be maintained at the

natural angle of repose of sand.

The nearby river bank of the mine area (i.e.western bank of Brahmani

River) shall be stone pitched with plantations on the top of the bank for

necessary protection of the river side.

The mined out areas of the river bed shall be leveled in due course (if

required).

14.5.7 IMPACT ON TRAFFIC MOVEMENT & CONTROL MEASURES

Sand transportation will take place from the sand mine to the end-use plant/

coal mine sites by tipping trucks. The transportation road route extends beyond the

mine lease area. However, the transportation route will be through the coal mining

areas of MCL avoiding the residential areas as much as practicable, so that there will

be minimal impact of traffic movement on residential areas. Additionally, the

following control measures will be adopted:

Approach road of the mine on the river bed will be different from the used pathways of the villagers and the mining activities and will not cause any interference of existing traffic to the villagers for their use.



Plantation on both sides of the roads on the surface. Proper maintenance of road to remove ruts and potholes. Proper illumination of roads including transportation road.

14.6 ENVIRONMENTAL MANAGEMENT SYSTEM

To carry out various pollution control measures and comply with statutory

regulations, an environmental organization will be created at the mine level. The

environmental monitoring will be carried out on regular basis as per stipulation of

MoEF / SPCB Guidelines. The capital expenditure for environmental pollution control

measures is envisaged under the following heads:

(1) Procurement of 12 Kilo Litre Mobile Sprinkler. (2) Strengthening of river embankment along mine site. (3) Tree plantation.



Chapter –XV

15.0 MINE CLOSURE PLAN

15.1 GENERAL Sand as a mineral in river bed is of unique nature. The amount of sand mined

out in the dry season every year is replenished during flooded condition of the river

particularly in the monsoon period. As the reserve of sand in the proposed sand

mine continues to be available in future, the mine closure planning will be of

progressive in nature. However, the progressive mine closure cost is in built in the

PR cost.

15.2 OBJECTIVE OF MINE CLOSURE PLANNING

Mine closure planning is required to be done prior to the commencement of

mine operations. It is also to be periodically reviewed and modified, if needed, during

the life cycle of the mine to ensure safety and to cope up with social & environmental

challenges. Various objectives of this progressive mine closure planning are as

follows:

a) To allow productive and sustainable after-use of the site, which is acceptable to the mine owner and the regulatory authorities;

b) To assess risk and safety; c) To eliminate environmental damage & thereby encourage environmental sustainability; d) To address socio-economic issues; e) To protect the flora and fauna of the area; and f) For eco-restoration of mining project.

15.3 REASON FOR MINE CLOSURE

The life of Kakudi/ Kishoripal sand mine as per the present proposal is about

20 years i.e. the applied lease period for exploitation of sand from Brahmani

Riverbed. On the presumption that the quantity of sand mined out in the dry season

every year gets replenished during monsoon period every year, the sand mine in the

proposed lease area will continue to exist even after 20 years period (i.e. applied



lease period). As formation of sand is a slow long drawn process, the rate of sand

replenishment will reduce in course of time which may result into closure of the sand

mine in future on account of exhaustion of economically recoverable sand reserves

in the lease hold area. The sand mine may be closed on account of other reasons

like closure of underground coal mines (requiring sand stowing) or substitution of

stowing materials.

15.4 GENERAL INFORMATION ABOUT THE PROJECT Following are the general information about the proposed Kakudi/ Kishoripal

Sand Mine of M/s MCL:

1. Name of the mine owner/company: M/s MCL 2. Address of Communication: General Manager, Talcher Area, MCL,

P.O. Dera Colliery, Dist. Angul – 759103, Odisha 3. Location of the Mine: Refer Para 4.1 of the present report 4. Capacity of the mine: 0.25 Mm3 of sand per annum 5. Method of mining including equipment-deployed: Refer Chapter-VI of the present report 6. Processing/ beneficiation: Not Applicable 7. Total lease area involved: 41.885 ha 8. Type of Area: Govt. land (River kissam) 9. Mine Description: Sand from river bed to be owned by OC method.

15.5 STATUTORY APPROVALS There is need to define the liabilities, responsibilities and authorities of the

different agencies like the mine management, other statutory bodies, Central and

State Governments after mine closure. Some obligations pertaining to the Mine

Management are as follows:

1. Health & Safety – DGMS regulations and circulars 2. Environment -

a. Water (Prevention and Control of Pollution) Act, 1974 b. Air (Prevention and Control of Pollution) Act, 1981



c. Environment (Protection) Act, 1986 and Environment Protection Rules. d. DGMS directives on noise and ground vibration

3. Forest – Forest Conservation Act, 1980

15.6 CLOSURE PLAN Mine closure planning is a progressive exercise that begins with the

commencement of mining operations and continues till post closure. The dynamic

nature of mine closure planning requires regular and critical review to reflect

changing circumstances as a result of any operational changes, new regulations,

and new technology, and remains flexible enough to cope with unexpected events.

The mine closure plan has been prepared accordingly. Various aspects in relation to

Mine Closure Planning are highlighted in the following paragraphs:

15.5.1 TECHNICAL ASPECTS

In all probabilities, sand from the proposed mine will be gathered and

transported contractually. The requisite land for building temporary infrastructures for

contractor’s use will be provided by the applicant company (refer Plate-1). In such

condition, following technical aspects need to be dealt with:

i) Safety & security: In the mine closure plan, action will be taken to cover all the safety aspects including management of mine inundation/ flooding.

ii) Management of pit slopes and waste dump:Kakudi/ Kishoripal sand mine being a sand quarry/ open pit mine with bench height restricted to 1.85m only, management of pit slope will be needed to some extent, but failure of slope is not envisaged. However, no waste dump will be created as sand from the river-bed will be fully utilized in the end-use plants/ collieries of MCL.

iii) Management of hydrology and hydro-geology: After closure of mining activities, the river-bed will be left as it was for maintaining the land form and will continue to become a source of water supply to the neighboring areas.

iv) Closure of Mine Entries: After closure of the mining activities, all the approach roads/ temporary causeways to the mine site (i.e. river-bed) will be effectively closed/ fenced to prevent unauthorized access. However, the guidelines/ instructions from DGMS, if any, will be followed.



v) Disposal of mining machinery: All the mining machineries including HEMMs, which will have residual lives, will be shifted to the other mining sites of the Applicant Company or contractors (if any). The salvaging and shifting operation of mining machinery and other equipment will be done considering the ground realities.

vi) Details of surface structure proposed to be dismantled: As far as practicable industrial structures will be utilized by the adjacent coal mines of MCL. However, if these structures are not found fit at the end of mine life, the same will be dismantled and salvaged. The equipments will be removed and used somewhere else. Every effort will be made to restore the area to economic utilization value in line with mine closure plan. a. Service Buildings: The service buildings/ structures, viz. workshop, stores, office building,

etc. will not be constructed within the mine lease area. However, it has to be ensured that as and when a structure is abandoned, the same would be demolished and the area will be reclaimed.

b. Other Infrastructures: All other infrastructures like sub-stations, transformers, community services, waterlines, power lines, roads etc. will be utilized by the neighbouring coal mines and/or the local community.

However, possibility shall be explored for handing over the buildings and

other infrastructures including the reclaimed land to the State Government for the

benefit of local villagers and strengthening the area infrastructures. The end use of

these facilities shall be decided by the State Government with the help of District

Authorities and Village Panchayat. The peripheral village community facilities

developed by the Mine Authorities will be left to the Local Body/ State Government

for their management and public use if not utilized my MCL.

15.5.2 ENVIRONMENT ASPECTS

i) Mined-out land and proposed final land use: Sand will be mined from the river-bed which will be replenished by sand naturally by the flow of the river, and hence will not be degraded. The area used for installation of temporary surface infrastructures will be provided by MCL. These infrastructures will be dismantled and the land will be handed over to the State authorities. The change in land-use pattern is temporary and reversible.



ii) Air & Water quality management: Appropriate air and water pollution control measures will be taken to contain the air and water pollution for maintaining the ambient air and water qualities within the stipulated standards besides making the mining operation eco-friendly in the project. These measures (both preventive and suppressive) are enumerated in Chapter XI of the present report.

iii) Management of waste: Generally no solid waste will be generated during sand production. iv) Management of final voids: The voids will get filled with sand in the process of replenishment

every year naturally through surface run-off and river flow movement. v) Land reclamation and rehabilitation: No reclamation of land and rehabilitation will be required

for the project as it will be made through natural process. vi) Reclamation of forest/vegetation and plantation: No forest land is required for the project.

However, plantation will be taken up during the life of the mine to create green barrier along the river banks on the vacant land. The plant species will be selected in consultation with the state forest department.

After cessation of mining and its related activities, there will be no effect on

ambient air and water quality due to this mine as proper mitigation measures for air

and water pollution control will be taken by the mine authorities. If required, the air

and water quality parameters in the mined out area will be monitored by some

external agency for next three year after closure of the mine.

15.5.3 SOCIO-POLITICAL ASPECTS

i) Re-deployment of work force: Due to closure of mining operations, the persons directly employed in the mine will be surplus. Suitable manpower re-deployment plan may be formulated by the mining company and/or the contractors engaged sufficiently before closure of mine for re-deployment of the work force in other units.

ii) Civic facilities: It is proposed that the civic facilities developed during the mining phase will be transferred to the local government/ municipality so that the region transforms smoothly into post mining phase.

iii) Emancipation for project affected population: This is not applicable, as neither any of the villages/ basties is to be resettled nor any additional land is required for the project.



15.5.4 ECONOMIC REPERCUSSIONS OF CLOSURE OF MINE The proposed Kakudi/ Kshoripal project is a sand mining project involving

restorable surface excavation on the river-bed. Moreover, the basic mining

infrastructures i.e. workshop, stores, office buildings, etc. have been proposed to be

constructed on the company (MCL) acquired land, where there is no human

settlement. So there will no displacement of local people for this project. Later, after

closure of the mine the work force will be rehabilitated. The existence of mine is not

likely to create negative impact on socio-economic condition of the region.

15.5.5 POST-CLOSURE MANPOWER

It has been proposed to monitor and implement the post-closure activities

through outer agencies. However, a skeleton departmental manpower will be

needed after closure of the mine for monitoring and implementation of the port

closure activities. Manpower required for the same is given in Table-15.1 below:

Table 15.1: Manpower required for monitoring and implementation of Mine Closure Activities

Sl Category of Manpower Requisite head 1 Officer Incharge/manager (Mininjg) 1 2 Supervisor In-Charge 1 Total 2

15.7 CLOSURE COST 15.7.1 GENERAL

Mine closure process is undertaken concurrently with mine development/

production activities. The cost of implementing the closure plan to eliminate or

reduce the impact identified above has to be estimated. This involves the following

cost elements:

• Cost of remediation/ mitigation measures;

• Cost of decommissioning/ demolition/ removal cost of infra-structure;

• Cost of removal of equipment/ mining machinery;

• Cost of safety and security of the site;



• Cost of reclamation and rehabilitation of workings;

• Cost of maintenance/monitoring during and after closure operation;

• Cost of compensation for loss of sustenance income;

• Cost of administration/ management, etc. The estimated annual closure cost is proposed to be deposited in an Escrow

Account with any Scheduled Bank.

15.7.2 MINE CLOSURE COST FOR THE MINE As per the guidelines of the IBM, the cost of the mine closure (for minerals

other than coal) is to be computed based on the size of the mining leasehold area

involved in the project. The requisite financial assurance for the proposed sand mine

is estimated as follows:

Table 15.2: Break-up of areas in the mining lease of Kakudi/Kishoripal Sand Mine for calculation of

Financial Assurance

Sl. No. Head

Area put on use at start of plan (ha)

Additional requirement of

area during plan period (ha)

Total Area (ha)

Area considered as fully reclaimed and rehabilitated

(ha)

Net area considered

for calculation

(ha) A B C=(A+B) D E=(C-D)

1 Area under mining (refer Para 5.5 of the report) 19.07 -- 19.07 -- 19.07

2 Storage for top soil -- -- -- -- -- 3 Overburden/ dump -- -- -- -- -- 4 Mineral storage -- -- -- -- -- 5 Infrastructure (workshop,

administrative building etc) -- -- -- -- --

6 Road 1.00 -- 1.00 -- 1.00 7 Railway -- -- -- -- -- 8 Green belt -- -- -- -- -- 9 Tailing pond -- -- -- -- -- 10 Effluent treatment plant -- -- -- -- -- 11 Mineral separation plant -- -- -- -- -- 12 Township area -- -- -- -- -- 13 Others to specify (Sand

barrier and water channel for drainage.

21.815 -- 21.815 -- 21.815

Grand Total 41.885 0.000 41.885 0.000 41.885



o Admissible financial assurance for Category B mine (as on 2006): minimum `15000 per ha to `1 lakh per ha.

o The present closure cost is calculated as per WPI of December 2013 (WPI in December 2013 was 179.20) and during the year 2006 (WPI in April 2006 was 107.80). The cost per ha is `15,000 x 179.20 / 107.80 = 24935.00

o Net area considered for calculation: 41.885 ha

o Estimated financial assurance: 41.885 x `24935.00 = `10.44 lakh

o Life of the proposed mine: 20 years

o First year installment of escrow amount: (`10.44 lakh ÷ 20) = `0.52 lakh

Installment of escrow amount for subsequent year will be increased

5% annually on account of escalation.

The break-up of mine closure cost for some of the major activities is given in

Table-15.3.

Table 15.3: Major Activity-wise Break-up of Mine Closure Cost

Mine Closure Activities Quantity Amount (` Lakh)

Remarks

1. Dismantling of service building Workshop, field substation etc.

LS - Most of the service buildings and infrastructure will be utilized by the neighbouring mine of MCL

2. Fencing/ closing of entry to the mine site S 0.50 -- 3. Plantation at river banks LS 1.00 -- 4. Routine monitoring of ambient air quality,

water quality and noise LS 4.00

5. Vocational training LS 1.00 6. Miscellaneous /other mitigative measures LS 0.65 10% of above (Sl. No. 1 to 5) 7. Supervision for closure activities LS 3.29 Manpower required for implementation of

the closure plan. Part of the manpower cost will be charged on the coal mine head.

TOTAL 10.44 NOTE:

1. In case the lease of the proposed sand mine is further renewed, the further contribution

towards mine closure (in escrow account) may not be required as the necessary provision has

already been made as per the prevailing norms for mine closure. However, in case of any

change in the mine closure norms or in the mine lease area, the same will be dealt with



accordingly considering the fund generated in the said escrow account due to present sand

mining operation.

15.8 CARE AND MAINTENANCE DURING TEMPORARY DISCONTINUANCE The guidelines/ instructions of DGMS will be followed in case of

discontinuance of the mining operations, if any.

15.9 TIME SCHEDULE FOR CLOSURE

The life of the mine has been taken as 20 years (i.e. the applied lease

period) for the targeted production of 0.25 million cubic meters per annum

(Mm3/annum). Due to replenishment of sand the life of the sand mine will be more

than 20 years irrespective of rate of production. As the reserve of sand in the

proposed sand mine continues to be available in future, the mine closure planning

will be of progressive nature only. The closure of mine involving technical aspects,

environmental aspects, socio-political aspects and financial assurances for

implementing post-closure activities will run for three year only due to the nature of

the sand deposition in the proposed sand mine at Kakudi / Kishoripal. The time

schedule envisaged for completion of all closure activities is presented in Table-15.4

in the form of bar chart.

Table 15.4: Implementation Schedule for closure activities for

Kakudi/Kishoripal sand mine

Sl. Major Activities Time

Period

Year-wise Phasing

1 2 3 Remarks, if any

1 Technical aspects 1½ years 2 Environmental aspects 3 year 3 Socio-political aspects 3 year



Chapter – XVI

16.0 PROJECT IMPLEMENTATION SCHEDULE

16.1 CONSTRUCTION ACTIVITIES

The zero date for this project is considered to be the date of approval of the

Mining Plan and the requisite clearances obtained from State/Central Government

agencies. It is expected that processing/ tendering for required activities related to

sand mining operation and maintenance (if required) would be started immediately

after the zero date and will take about 4 (four) months.

The mine preparatory/ construction activities (such as construction of

approach roads/ causeways etc.) will also be completed partially before start of sand

production (during non-mining period) and will be continued as and when required

during the production period. After finalization of tendering/ processing of requisite

activities (if required) related to mining and the mine construction activities (i.e.

construction of temporary approach roads/ causeways on the river-bed of Brahmani),

sand production from the river bed of Brahmani will start systematically.

The preparatory activities for sand mining at the river-bed are of repetitive

nature on annual basis. During monsoon period, the river gets flooded with water

and in the process sand gets replenished every year in the proposed sand mine.

Thus, every year mine construction activities are to be carried out afresh.

16.2 YEAR OF COMMENCEMENT OF PRODUCTION No gestation period for Kakudi/ Kishoripal sand mine has been considered as

it is expected that the processing/ tendering period (i.e. 4 months) for the requisite

sand mining activities (if required) would be completed during non-mining period (i.e.

between June to October). The mine preparatory/ construction activities (such as

construction of approach roads/ causeways etc.) will be carried out as and when

required during the production period. The mine will achieve its production capacity

from the 1st year onwards. Year-wise phasing of production and manpower of the

Kakudi/ Kishoripal sand mine are given in Table-16.1 below.



Table 16.1: Year-wise Phasing of Production and Manpower for Kakudi/ Kishoripal Sand Mine

Sl. Particulars Unit

Year of phasing

1 2 3 4 Y5 to Y20

1 Sand Production Mm3 0.25 0.25 0.25 0.25 0.25 2 Manpower No. 99 99 99 99 99

16.3 PROJECT IMPLEMENTATION SCHEDULE As, every year mine construction activities are to be carried out afresh, the

project implementation schedule for the activities during a year (i.e. 12 months) of

mine development and sand production from the Brahmani River is presented on

annual basis in Table-16.2 below.

Table 16.2: Project Implementation Schedule for Kakudi/ Kishoripal sand mine

Sl. Activities

Months of phasing June-

October (non-mining period)

November – May (Sand mining period) Remarks

1 Tendering and

finalization of tenders for activities related to sand mining at Kakudi/ Kishoripal (if required)

2 Construction &

maintenance of approach roads and/or causeways

Ongoing activity

3 Production and

transportation of sand

-do-



Chapter - XVII

17.0 FINANCIAL EVALUATION

17.1 INTRODUCTION The production of the proposed Sand Mine at Kakudi/Kishoripal has been assessed as 0.25

Mm3 per annum. It is proposed to mine sand from the River-bed of Brahmani and transport the same to the end-use plants (i.e. coal mines) for sand stowing in depillaring districts/panels. In this report, financial parameters of the project have been worked out for both departmental and outsourcing options.

17.2 OPTIONS CONSIDERED Two options - departmental and outsourcing options (or mode of operation) have been

considered for operating this sand mining project. (Refer Para 7.9 of Chapter-VII).

17.2.1 DEPARTMENTAL OPTION In departmental option, it has been proposed to operate the mine with departmental resources.

17.2.2 OUTSOURCING OPTION In outsourcing option, a number of activities have been proposed to be outsourced. However,

the company (M/s MCL) will be providing the following manpower and facilities/ infrastructures to the outsourced agency:

• Statutory manpower for supervision and management of the project;

• Statutory and community buildings like rest shelter etc. in the MCL leasehold area;

• Requisite service buildings in the MCL leasehold area;

• Roads & culverts for approaching the sand mine site (except temporary causeways/ roadways developed in the sand mining site),

• Electric power for lighting of benches/ sites/ roadways at night will be supplied to the outsourced agency on chargeable basis; and

• Scientific studies for mine development, if required.

17.3 MANPOWER The manpower requirement for the proposed Sand Mine at Kakudi has been estimated as 99

heads for both departmental and outsourcing options for a production capacity of 0.25 Mm3 per annum (refer Para 10.1 of Chapter X of this report).



17.4 CAPITAL INVESTMENT The proposed Kakudi Sand Mine will require capital investment for its operation. The head-wise provision of total capital investment is shown in Table 17.5. Method of estimation of capital investment under different heads is as follows:

a) Land

As the proposed lease area over 41.885 ha of sand mine lies entirely in river-bed of Brahmani, there is no requirement of additional land for the sand mine at Kajudi/Kishoripal. Some infrastructure exist for office-cum-workshop/store complex. Hence no capital for land has been envisaged in the report.

b) Civil Construction No coal production is presently carried out in Deulbera Colliery of MCL and only mine protective work is being carried out. The usable civil structures and/or other infrastructures have been proposed to be provided by the mine authority to be used by the sand mining project. Hence, capital cost required for infrastructure development for the sand mine has been considered accordingly. Details of capital provision for civil constructions and/or other infrastructures are given in Table-17.1 below: Table-17.1: Statement of Capital Investment on Civil Works for Kakudi Sand Mine

Sl. No. Particulars Capital Cost

(` Lakhs) Remarks

1 Office Building 0.00 Use of available infrastructure 2 Workshop cum stores 0.00 -Do- 3 Boundary wall 4.00 4 Security room 0.00 Use of available infrastructure 5 Toilets 1.00 Modification of old infrastructure 6 Rest Shelters 1.50 -Do- 7 Land development 1.00 TOTAL 7.50

c) Plants and Machinery (P & M) P&M cost has been estimated from the latest Standard Price List prepared by CMPDIL. The details have been shown in Table-17.2 below.



Table-17.2: Statement of Capital Investment on P & M for Kakudi Sand Mine

Sl. No. Particulars Quantity Unit price

(` Lakhs) Total Capital Cost

(` Lakhs) Equipment & Machinery:

1 Backhoe/ Shovel (1.2m3 bucket capacity) 1 72.37 72.37 2 Tipping Truck (8.5m3 capacity) 20 14.89 297.8 3 Front-end Loader/Pay-loader (1.5m3 capacity) 1 30.18 30.18 4 Water sprinkler (9 kl capacity) 1 15.00 15.00

Electricals, Power supply and Telecommunication 5 O.H. transmission line with fittings 1 km LS 6.00 6 Lighting & transformer 1 6.30 6.30 7 Switch board and cables 1 3.7 3.7 8 Fittings for Office & Street illumination LS 2.00

Workshop 8 Welding machine 1 4.00 4.00 9 Oxy-acetylene gas cutter 1 0.27 0.27

10 Greasing & lubricating machine 1 0.25 0.25 11 Mechanical/ Electrical / Automobile tools &

tackles LS 1.50

TOTAL 438.61 NOTE: The proposed workshop will cater only to the day-to-day maintenance and minor breakdowns. For major breakdown maintenance, provision has been kept in revenue expenditure.

d) Furniture & fittings

Total capital provision on account of furniture and fittings has been considered in Table-17.3 below. Table-17.3: Statement of Capital Investment on Furniture & Fittings for Kakudi Sand Mine


(Lakhs) Total Capital Cost

(Lakhs) 1 General Furniture & Office equipment LS 0.50

a Computer, printer, tele-fax, almirah etc. LS 0.50 b Furniture, Fittings and Accessories LS 0.50

2 Rest shelter furniture LS 0.50 3 Fire fighting equipment LS 0.50

TOTAL 2.50

e) Vehicles The vehicle details have been shown in Table-17.4 below with its capital requirement.



Table-17.4: Statement of Capital Investment on Vehicles for Kakudi Sand Mine


(` Lakhs) Total Capital Cost

(` Lakhs) 1 Light vehicle 1 5.00 5.00 2 Light utility vehicle 1 10.00 10.00

TOTAL 15.00

f) Development capital cost Capital investment required for preparation of various project reports and other preparatory arrangements has been estimated to be around ` 77.75 lakhs only, which includes:

• Project report preparation: ` 73.50 lakhs • Water supply & sewerage management: : ` 2.50 lakhs • Scientific studies/ environment management: ` 1.75 lakhs

17.4.1 HEAD-WISE CAPITAL INVESTMENT

The following table (Table-17.5) shows the share of total investment under major heads as a percentage of the total capital investment for Kakudi Sand Mine.

Table-17.5: Option-wise Total Capital Investment for Kakudi Sand Mine

A/C head Particulars

Departmental Option Outsourcing Option Total Capital Investment (` Lakhs)

% of Total Capital

Investment

Total Capital Investment (` Lakhs)

% of Total Capital

Investment 1 Land 0.00 0.0 0.00 0.0 2 Buildings

I) Service II) Residential

7.50 0.00

1.39

0.0

7.50 0.00

1.39

0.0 3 Plant & machinery 438.61 81.02 438.61 81.02 4 Furniture & fittings 2.50 0.46 2.50 0.46 5 Railway Siding 0.00 0.0 0.00 0.0 6 Vehicle 15.00 2.77 15.00 2.77 7 Prospecting & boring 0.00 0.00 0.00 0.00 8 Development

8.1 Capital outlay in mines 8.2 Roads & culverts 8.3 Water supply & sewerage 8.4 PR & other report prepn. Cost 8.5 Env. mgt. & scientific studies

0.00 0.00 2.50

73.50 1.75

0.0 0.0

0.46 13.58 0.32

0.00 0.00 2.50

73.50 1.75

0.0 0.0

0.46 13.58 0.32

Sub-Total (1 to 8) Total Capital Investment 541.36 100 541.36 100



17.5 SOURCES OF FINANCE Initial capital has been estimated as `541.36 lakhs for both options. Except replacement capital

no other capital will be required beyond 2nd year to 20th year. The debt equity mix considered is 1:1.

17.6 COST OF PRODUCTION The average cost of production for 20 years of the proposed lease period (i.e. mine life) is

estimated at 100% of capacity utilization under following cost heads:

17.6.1 SALARIES AND WAGES COST

The category-wise manpower requirement and year-wise salaries & wages cost is estimated separately for both options. In case of Departmental Option (Table-17.6), the annual wages & benefits per manpower considered for each category/grade are based on NCWA-IX updated to Feb. 2012.

Table-17.6: Annual salaries & wages (inclusive of benefits) of envisaged manpower (tentative) at Kakudi Sand Mine (Departmental Option)

Sl. No. Classification

Rate including benefit (Rs. Lakh /

annum/head)

No

1 Officer (E4- grade) 16.86 4

2 Supervisory Manpower (Grade-B) 7.36 3

3 HEMM Operators (Excav. Grade D) 6.43 6

4 Clerical Manpower (Grade D) 6.32 3

5 Security Manpower (Grade F) 6.00 3

6 Skilled Manpower (Cat-VI) 6.98 28

7 Skilled Manpower (Cat-IV) 6.32 28

8 Unskilled Manpower (Cat-II) 5.79 24

Total 99 In case of outsourcing option (excluding the departmental manpower envisaged) (refer Table-

17.7), the salary and wages cost per employee of different grade (inclusive of VDA rates) (for working in mines above ground) is taken as per office order of GM (MP&IR), CIL, Kolkata vide reference no CIL/C-5B/JBCCI/HPC/644 Dated 18.11.2013.



Table-17.7: Minimum salaries & wages (inclusive of applicable VDA) of envisaged manpower (tentative) at Kakudi Sand Mine (Contractual Option)

Sl. No Classification

Minimum Wages (wef 1.10.13 per

head

VDA Rate including VDA wef 1.10.2013

1 Unskilled Manpower 464.00 14.00 478.00 2 Semi-skilled/ Unskilled Supervisory 494.00 17.00 511.00 3 Skilled 524.00 20.00 544.00 4 Highly skilled 554.00 23.00 577.00

NOTE: 1. Officers will be departmental manpower for the proposed sand mine. 2. In addition to above minimum wages additional benefits like PF, Bonus, etc. of also been

accounted. 17.6.2 STORES COST

Stores cost has been estimated taking into account provision for repair and maintenance, POL, tyre and battery cost, miscellaneous stores cost. The cost parameters have been escalated according to price index.

17.6.3 POWER COST

For surface lighting and workshop, certain units of electric power will be needed (refer Table-

17.8). This cost (power tariff considered `5.61 per kWh) has been considered for both departmental

and outsourcing option. The power cost is arrived by multiplying power load, working hour and tariff.

Table-17.8: Envisaged power demand for Kakudi Sand Mine

SN. Item Power load (kW) Effective operation hours

1 Surface lighting (at Office-cum-workshop/store premises, vehicle parking site and mining site) 5 12

2 Workshop 10 2 3 Office/ workshop/ store lighting 5 8 Tariff Rs. 5.61/kWH Power cost Rs. Lakh/yr 4.32 Power cost Rs./ m3 1.73

17.6.4 CESS & ROYALTY CHARGES

`5.00 per m3 of sand has been provided as Cess & Royalty charges to be levied by the State Government (i.e. Govt. of Odisha). This cost has been considered for both departmental and outsourcing option.

17.6.5 MISCELLANEOUS CHARGES

As per the norm, miscellaneous charges have been considered for both departmental and outsourcing option.



17.6.6 ENVIRONMENT RELATED COST `1.00 per m3 of sand has been provided to absorb environment related cost in the project. This

cost has been considered for both departmental and outsourcing option.

17.6.7 MINE CLOSURE COST ` 10.44 lakhs has been provided in the project against Mine Closure Cost. This cost has been

considered for departmental option as well as outsourcing option.

As per the guidelines of the MoC/IBM, the annual closure cost has been computed

considering the total leasehold area (41.885 ha) and dividing the same by the life of the mine i.e. 20 years. An amount equal to the annual cost is to be deposited each year through out the mine life compounded at the rate of 5% annually. Yearly phasing of closure cost to be deposited is given in Table-17.9 below.

• Total mine closure cost : ` 10.44 lakhs

• Life of the mine : 20 years

• Annual mine closure amount to be deposited: ` 0.52 lakh

Table 17.9: Yearly Phasing of Mine Closure Cost for the proposed Kakudi sand Mine

Year Amount (`) in lakh Year Amount (`) in lakh Y1 0.52 Y11 0.85 Y2 0.55 Y12 0.89 Y3 0.58 Y13 0.94 Y4 0.60 Y14 0.98 Y5 0.63 Y15 1.03 Y6 0.67 Y16 1.09 Y7 0.70 Y17 1.14 Y8 0.73 Y18 1.20 Y9 0.77 Y19 1.26 Y10 0.81 Y20 1.32

17.6.8 ADMINISTRATIVE CHARGES

Administrative cost has been considered as per norm, which has been considered for departmental option only.

17.6.9 INTEREST ON WORKING CAPITAL

Interest on working capital has been calculated on the basis of 1 (one) month operating expenditure. Rate of interest is taken as 14.5% per annum as per norm, which has been considered for both departmental and outsourcing options.



17.6.10 DEPRECIATION Straight line method of depreciation has been provided to arrive at depreciation cost per m3 of

sand production.

17.6.11 INTEREST ON LOAN CAPITAL Interest @ 11.5% per annum on loan capital has been considered based on the assumed debt

equity mix of 1:1 ratio. The loan amount will be repayable within initial 5-years period.

17.7 UNIT COST OF PRODUCTION Option-wise average unit cost of production at 100% capacity utilization has been worked out,

which are summarized in Table-17.10 below.

Table-17.10: Option-wise Average Cost of Production of Kakudi Sand Mine

Sl. No. Cost heads

Cost of Production Departmental option Outsourcing Option (at 100% capacity) (at 100% capacity)

` lakh/ year `/ m3 of sand ` lakh/ year `/ m3 of sand 1 Salaries & wages cost 324.89 129.96 145.13 58.05 2 Stores cost 231.85 92.74 231.85 92.74 3 Power cost 4.32 1.73 4.32 1.73 4 Miscellaneous charges 16.82 6.73 12.33 4.93 5 Administrative cost 5.38 2.15 0 0.00 6 Mine closure cost 0.35 0.14 0.35 0.14 7 Cess & Royalty charges 12.50 5.00 12.50 5.00 8 Environmental cost 2.50 1.00 2.50 1.00 9 Interest on working capital 7.18 2.87 7.18 2.87 10 Depreciation 47.45 18.98 47.45 18.98 11 Interest on loan capital 15.45 6.18 15.45 6.18 TOTAL COST 668.69 267.48 479.06 191.62

17.8 CONCLUSION The above financial analysis reflects the tentative average cost of production of sand from the

proposed Kakudi Sand Mine for both departmental (Option-I) and outsourcing (Option-II) options at 100% capacity utilization. The outsourcing option (Option-II) in comparison to the departmental option (Option-I) shows better economics (i.e. lesser unit cost of production) mainly due to impact of salary & wage cost in terms of NCWA-IX. As such, the estimated unit cost of production is indicative one which may vary on detailed financial analysis.

***


Job No.: 706123 Annexure-1, Page - 1

Annexure-I



Annexure-II



Annexure-II (Contd.)







Documents

PRE-FEASIBILITY REPORT OF KAKUDI/KISHORIPAL SAND MINE …environmentclearance.nic.in/writereaddata/Online/... · Pre-feasibility Report of Kakudi & Kishoripal Sand Mine in the river