1. ML area is a disjointed lease and is mot continuous in shape

Transcription

1 1. ML area is a disjointed lease and is mot continuous in shape Lease area has been given by the State Govt after considering various issues related to Topography and Environment. Once lease is granted to anybody he is entitled to certain rights which may interfere with the various local laws and issues. This also may be one of the reasons (for allowing lease area in disjointed fashion). Similarly acquiring of land of the lease may also pose problems if there are public utilities in the lease area. It is to be noted here that disjointing is mainly because the public utilities like road, water course etc. There is no major gap between any of the disjointed blocks. Considering all these views the State Govt must have issued an LOI with land with disjointed feature. The mine is going to be operated by Underground method of mining (unlike opencast; where surface features are disturbed and continuity of land is required to carry out scientific mining). Major developmental activities of the neighboring mine will be utilized for operating this mine except Ventilation shaft. Thus hardly any of the surface features will be disturbed. Nevertheless the lease has been given by the State Govt and we will have to abide by it keeping in view the scientific and environment friendly mining. (Whenever such disjointed lease is given it is presumed that underground working will be continuous in nature in spite of lease area being in disjointed manner).. 2. There is gap between the adjacent mining lease owned by the PP There is no gap between the two leases (present lease of Ha and adjoining working lease of Ha). They are having common boundary at BP 34, BP 35, BP36 BP 54 and BP1, BP2 ETC. The common workings of both these leases, including the entry to the mine from the main shaft, will be through this portion. Plan showing

2 both these lease is enclosed. Red boundary line shows the instant lease while green boundary line shows the neighboring lease. 3. Residential area of Ha is covered under the current mining lease of PP is which 200 families are residing. R and R of this aspect is to be dealt. It has been explained in the paragraph 1 that all the infrastructural facilities of the neighboring mine (owned by the PP) will be used for opening and operating this mine, except for Ventilation shaft. Thus hardly any surface area will be utilized for this feature. In no case any of the residents of the area will be either asked the leave the place or will they be disturbed in any manner from the point of view of the mining activities or environment. The other features also, existing in the area, will remain undisturbed. Due attention will be given to the residents (for their problems, improvement of their lifestyle etc) under various CSR schemes. 4. Cost- Benefit analysis Cost of Mining is found out by breaking up it into major activities like infrastructure development (land acquisition, ventilation shaft, etc), underground developmental work (like galleries, cross cuts, stope preparation etc,) production from stopes. transport from face to the pit top and further, ventilation and safety, administration, royalty, CSR etc. All these activities are further broken down into micro activities like drilling and blasting, clearing the face etc. The cost involved includes the interest, depreciation and maintenance of various machines used for respective operations. Processing of ore at the plant is also included in this. It has been experienced that overall cost of all these activities for the production in the instant project will be about Rs 3000/- per ton of finished ore. Various elements involved

3 in the neighboring mine (which gives day to day figure of costs) have been taken into account to arrive at this figure. It is to be noted that cost of working shaft (of about Rs 400 crores) has not been taken into account. Inflation rate and latest prices of all the elements have been considered. With this background the price of the finished product for an average grade from the mine (range 25-35%) is about Rs 15,000/-/. Thus, there clear margin of Rs 12,000/- per ton of finished ore sold in the market. It is to be noted here that above cost is relatively low as there will common infrastructural facilities and no additional working shaft. One can come to the conclusion that the cost- benefit analysis is very much in favor of the Project Proponent. 5. Capital cost relating to setting up of the working shaft also need to be included in the project cost (if same is to be put up under the instant project) As mentioned earlier, there will not be or need not be any working shaft in this lease. The existing infrastructure of the neighboring mine (owned by PP) is technically, economically and from the point of view of the safety is very well sufficient to cater the need of the mine to be opened on the instant lease. Developing additional working shaft will involve huge cost and will take reasonably long time. This will rather disturb the cost benefit analysis of the instant lease. The reserves of total lease are yet to be established. The cost may go to the extent of more than Rs. 400 crores. The object of applying and opening this lease is mainly based on the existing infrastructure of the neighboring mine. Technically and legally they will be separate mine but cost- benefit aspect, at least on the long run, will be judged or planned as if they are single mine. Considering various geological features (dip, strike, reserves/ resources, physic- mechanical properties etc) they deserve to be a single mine (at lease for surface area and total reserves). That is the reason why capital cost of the

4 working shaft (which is not to be adopted) has been part of the overall cost structure. 6. Overlap of the conceptual plan vis-à-vis working plan for understanding proposed mine operation. (Including the accessing the mine lease from underground being disjointed and discontinuous in shape) Enclosed herewith the two longitudinal sections passing through the common boundary. The first section (plate XI) shows the geological features of both the leases, various openings of the neighboring working mine, the way the existing layout/network will be used for accessing the instant lease etc. The second section (plate XV) also various entries of the neighboring working mine and other features of the mine, the way network will be extended in the instant mine and the location and other features (depth, collar level etc) of the ventilation shaft.

5 PLATE XI

6 PLATE XV

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