PRE FEASIBILITY REPORT

1) Executive Summary
Kuppli- Koyyam Mineral Sands Deposit-I,
Project
Pre-concentration Plant (PCP).
M/s. Andhra Pradesh Mineral Development
Name of Company / Mine Owner
Corporation Limited, Hyderabad.
Location
Kuppilli, Koyyam, Dharmavaram,
Village
Bonthalakoduru villages
Mandal Etcherla
District Srikakulam
State Andhra Pradesh

1 Area & Type of land 1000.00 Ha (10.00 km2)

2 Geographical co-ordinates AML Area
Latitude:
18009’20.91” to 18009’44.14”
18012’33.03’ to 18013’03.26”

Longitude:
83005’64.47’ to 83055’43.03”
83048’33.64” to 83048’07.76”
3 Name of Rivers/ Nallahs/ Tanks/ Nagavali river- Adjacent
Spring/ Lakes etc Kadivalasa River- 15.5 km, SW
4 Name of Reserve Forest(s), Wild life Kotapalem PF (0.5 km, SW)
Sanctuary/ National parks etc. Kuppili PF (within ML area)
Dharmavaram PF (within ML area)
Srikakulam RF (11.6 km, NE)
5 Topography of ML area The mining lease area forms part of a
barren sandy stretch with an elevation of
1-18 m above the mean sea level.
6 Name of the mineral mined Ilmenite, Rutile, Zircon, Garnet,
Sillimanite and Monazite
7 Rate of Production (in MTPA) proposed Heavy Mineral Sands 2.0MTPA
8 Life of Mine Approx. 10-11 years.
9 Mineral Reserve in million tonnes Geological Reserves 76.0 million tonnes
10 Drilling/Blasting No drilling and Blasting is carried out
11 Ultimate depth of mining 8–9m
12 Ground water level 10 m RL
13 Ground water intersection 1.5 – 2.0 m
14 Drainage pattern/water courses Nagavali river- Adjacent
Kadivalasa River- 15.5 km, SW
Drainage Pattern: Northeast to
Southwest
15 Break-up of Land Utilization Pattern Attached as Annexure I
16 Water requirement & Source The requirement 500 m3/hour from
Nagavali River
17 Solid waste Total 1.74 Million Tonnes/annum
18 IBM Approval : Date Mining Plan is under preparation for
rated capacity of raw sand of 2.0 MTPA
19 Public hearing : Date -
20 Cost of project Rs 400 Crores
21 Any Other (specify) None

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2) Introduction of the Project / Background Information

2.1 Identification of Project and Project Proponent

The Andhra Pradesh Mineral Development Corporation Ltd., (APMDC) was incorporated
on 24th Feb., 1961 as a wholly owned undertaking of the Government of Andhra Pradesh
to develop mineral resources in Andhra Pradesh including exploration, exploitation,
conservation, processing, beneficiation, conversion into value added products and
promotion of mineral based industries. APMDC registered under the Companies Act 1956
with an authorised capital of Rs. 50 lakhs with full participation by Government of
Andhra Pradesh. The Authorised capital is increased from time to time, to Rs. 10
Crores. The paid up capital is Rs. 630.62 Lakhs.

The Objectives of the APMDC are:

 Development of mineral resources including exploration, exploitation, and

beneficiation.
 Development of mineral industry with private participation.
 Identification of the Best Technology and Investment for development of Mineral
Resources.

Awards

The Corporation has been awarded with “Coal India Productivity Organizational Award ”
for the year 2006-07 by the Indian Institute of Industrial Engineering on 12 th October,
2007 at Thiruvananthapuram for its exceptional performance in the exploration of the
minerals in the state. Earlier, best documentary film award-2008 at Nandi film fare
awards has been awarded for the documentary pictured on Bauxite deposits by the
corporation.

Name of the Project : Kuppli-Bontalkoduru Mineral Sands Deposit,

Pre-concentration Plant (PCP).
Location
Village : Kuppilli, Koyyam,Dharmavaram, Bonthalakoduru
Mandal : Etcherla
District : Srikakulam
State : Andhra Pradesh
Production : Raw Mineral Sand Mine production 2.0 MTPA
ML Area : 1000.0 Ha (10.00 km2)

(i) Name & Address of the Project Proponent

M/s. Andhra Pradesh Mineral Development Corporation Ltd,
3rd Floor, Rear Block(HMWSSB Premises)
Khairathabad,Hyderabad-500 004, INDIA
Tel No. +91 40 23323153,23393814,
Fax:+91 4023393152

(ii) Background for EC

The Project involved mining of beach sand and separation of heavy minerals (Garnet,
Ilmenite, Leucoxene, Sillimanite and minor amount of Rutile Zircon and Monazite ) and
set-up an export-oriented and value added mining unit.

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2.2 Brief Description of the Nature of the Project.

The Project involves Production of Heavy Mineral Sands Mine 12.0 MTPA.

2.3 Need for the Project and its importance to the country and or region

As per the projections of 12th plan document prepared for beach sand minerals and as
per the IBM report (Mineral year book) India is currently producing annually ilmenite 7.5
LT, Rutile 0.18 LT, Zircon 0.5 LT, Sillimanite 0.6 LT. Garnet 12.0 LT and Monazite from
East-West coast Beach sands. Out of these minerals majority of rutile and Zircon
requirement is being met by import currently. The chloride grade Ilmenite is also
imported to meet the domestic requirement. However, there is demand of Ilmenite
garnet Sillimanite for export to earn foreign exchange.

Since the project is proposed to be taken up in Northern part of Andhra Pradesh, the
surrounding areas in Srikakulam, Vijayanagaram and Vishakapatnam towns will be
benefited by way of employment, infrastructures and other developments.

The proposed value addition like rutile grade pigment, Titanium slag, Titanium metal,
zircon flour and zirconium chemicals will be taken up at later stage. This project assumes
greater significance in the field of beach sand minerals development in the country.

In view of the above the project is a step towards import substitution, value addition and
establishment of other downstream ancillary industries. The project will also contribute
substantially to the Government exchequer and offer significant employment
opportunities to the locals.

2.4 Demand-Supply Gap

Sr. No Minerals Production Demand Shortage/Surplus

(TPA) (TPA) (TPA)
1 Ilmenite 7,50,000 3,19,000 +4,31,000
2 Rutile 18,000 40,000 -22,000
3 Zircon 50,000 1,30,000 -80,000
4 Garnet 12,00,000 7,00,000 +5,00,000
5 Sillimanite 60,000 40,000 +20,000

2.5 Import V/s Indigenious Production

Sr. No
Minerals Production (TPA) Import (TPA)
1 Ilmenite 7,50,000 65,876
2 Rutile 18,000 9,826
3 Zircon 50,000 34,651
4 Garnet 12,00,000 1,115
5 Sillimanite 60,000 74

2.6 Export Possibility

Sr. No Minerals Export (TPA)

1 Ilmenite 7,91,735
2 Rutile 2,322
3 Zircon 31,600
4 Garnet 5,05,281

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 5 Sillimanite 11,151

2.7 Domestic / Export Markets

Sr. No
Minerals Demand (TPA) Export (TPA)
1 Ilmenite 3,19,000 7,91,735
2 Rutile 40,000 2,322
3 Zircon 1,30,000 31,600
4 Garnet 7,00,000 5,05,281
5 Sillimanite 40,000 11,151

2.8 Employment Generation (Direct and Indirect) Due to Project.

About 100 departmental and 300 contract employees will be engaged for the project.

3.0 Project Description

3.1 Type of Project (including interlinked and interdependent project, if any)

Mining of heavy mineral sand @ 2.0 MTPA with Pre-Concentration Plant @ 333 TPH and
to be produce Ilmenite, Rutile, Zircon, Sillimanite and Garnet minerals.

There are no interlinked projects involved at this stage

3.2 Location (map showing general location, specific location and project
boundary & project site specific layout) with coordinates.

The Applied Mining Lease area is located in the jurisdiction of villages Kuppilli, Koyyam,
Dharmavaram, Bonthalakoduru, Etcherla Mandal of Srikakulam district, Andhra Pradesh
Latitude: 18009’20.91” to 18009’44.14” & 18012’33.03’ to 18013’03.26” and 83005’64.47’
to 83055’43.03” &83048’33.64” to 83048’07.76”. The lease area is approachable from
Srikakulam and at a distance of 20 Km. Village wise survey numbers and land details are
enclosed in Annexure-II.

Survey Nos.
Name of the Proposed Geo-Co-ordinates
Plant
Pre Concentration Within the lease area Mining Area
Plant (PCP)
Temporary/Floati Within the lease area Mining Area
ng PCP

Study area map of the AML area is shown in Figure-1

(iii) Details of alternate sites considered and the basis of selecting the
proposed site, particularly the environmental considerations gone into
should be highlighted.

As the proposed project is being the mining of beach sand and separation of heavy
minerals (Garnet, Sillimanite, Ilmenite, Leucoxene, and minor amount of Rutile Zircon
and Monazite). Hence, No alternative sites are considered.

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3.4 Size or Magnitude of operation.

Proposed Production

Mining: 2.0 MTPA of raw sand ROM with 333 TPH Pre-Concentration Plant.

Note:

a) The concentrate output and mineral output from the Pre Concentration Plant and and
value addition plants may vary depending upon the mineral content in the above
mentioned ROM excavated from a particular mining area.

3.5 Project Description with Process details (a schematic diagram/ Flow chart
showing the project layout, components of the project etc. should be given.

Mining of heavy mineral sand @ 2.0Million tonnes per annum with Pre-Concentration
Plant @ 333 TPH and to be produce Ilmenite, Rutile, Zircon, Sillimanite and Garnet
minerals.

Mining & Pre-Concentration Plant

The method of mining will be carried out open cast mechanized mining method &
refilling will be done concurrently, wherein Run-of-Mine is mined and advanced
environmental friendly technology, the tailings generated from pre-concentration plant
will be backfilled and afforestation on reclaimed land takes place simultaneously thus
limiting the gap between mining and rehabilitation to pre-mining state to only a few
months. Another unique feature of the above method is that water used as a medium of
transportation and concentrations re-circulated and there is no water consumption
except for the evaporation losses and leakages. The external water to make up this
water loss also goes to recharge the area thus improving the water regime and
vegetation of the area and nearby villages.

In the proposed plant a relocatable/floating pre-concentration plant (PCP) moves/floats

along with the advancing mining face. The ore is fed to the (PCP) plant with the help of
dredgers and excavators/dumpers taking care that the water table of the area is not
disturbed and water level is maintained above the MSL. The water gradient always
towards the sea. Established norms being followed world wide for such type of mining
along with recommendations of Central Ground Water Board of India for mining similar
deposits in Tamil Nadu, Kerala and Orissa will be adopted. In the above mining method
the ROM sand mined by dredging will be pumped to a Bunker/trommel screen module
having 2 mm opening to remove all roots, pebbles and other debris. The clean sand will
then mixed with water will be pumped to the pre-concentration plant with the state- of-
art equipment’s viz spirals, classifiers, screens would be used to concentrate minerals in
the ROM into three to four mineral rich concentrates viz., Concentrate-1 containing
Ilmenite, Rutile and Zircon. Concentrate-2 containing predominately Sillimanite and
Concentrate-3 and 4 containing mainly Garnet. The pre-concentrates will be further
pumped to a Mineral Separation Plant located at a distance from the PCP and the sand
devoid of minerals called plant tailings will be simultaneously pumped back to the mined
out areas. Slime separated in the plant with the help of thickeners will be used to cover
the back filled tailings to support vigorous plantation in the currently barren sandy
coastal deposit.

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 FIGURE-1
STUDY AREA MAP

6
 PCP [PROPOSED FLOW CHART]

Kuppli- Koyyam Mineral

Sands Deposit-I,

ROM Sand

Over size
TROMMEL SCREEN Waste

Unders

Primary Secondary Clearner Tailings

Spirals Spirals Spirals

Tailings

Middlings Middlings
Conc Conc

Tailings

Conc Conc

MINE BACK
MSP FILLING
Concentrate

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(vi) Availability of water, its source,

Water Requirement: -
Water requirement for the project is estimated at 800 m3/hour
Source: - Nagavalli River

WATER BALANCE DIAGRAM (EXISTING)

Pedda Gadda river/bore wells

500 m³/hr (Makeup water)

Pulping Area Pulping Area Pulping Area

100 m3/hr (250 m³/hr) 150 m3/hr

Dewatering Pre Concentration

Cyclone Plant
(O/F)

Dewatering
Cyclone
Deslimed Ore Dewatering Cyclone

Tailings Tailings 50
200 m3/h m3/h

Settling Tank
Thickener-II Thickener-I 50m3/h (U/F)
100m3/h (U/F) 100m3/h (U/F)

Rejects to Mine

Note: There is no consumption of water and make up water goes to re-charge the
surrounding areas & nearby villages thus improving the water regime and vegetation.

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(vii) Quantity of wastes to be generated (liquid and solid) and scheme for
their management / disposal.

Solid waste to be generated is free silica sand tailings from the pre concentration plant
and mineral separation plant. These waste materials will be used for refilling and
reclaiming the mined out lands. No liquid waste will be generated from the mining
operations.

Five year Block Period Total waste generation in MTPA

First 5 Year Block 8.7
Second 5 Year Block 8.7
Third 5 Year Block 8.7
Total 26.1

4) SITE ANALYSIS

(i) Connectivity

Nearest Town Srikurmam (8.55 Km)

Nearest City Srikakulam (8.55 Km)
Nearest District Head quarters Srikakulam (8.55 Km)
Nearest Railway Station Srikakulam Road Railway Station (25 Km)
Nearest Airport Visakhapatnam (75 Km)

(ii) Land Form, Land use and Land Ownership

Forest Land : 742.12 ha

Non-forest Land : 257.88 ha.
TOTAL : 1000.00 ha.
Details of change in land use of the Mining Lease Area (Area in Ha.)

Present During
S. Conceptual
Particulars Land scheme
No. period
use period
1 Area of excavation/refill/afforestation 0.00 80.0 800.0
2 Storage for topsoil 0.00 0.00 0.00
3 Overburden dump 0.00 0.00 0.00
4 Mineral storage 0.00 0.00 0.00
Infrastructure (workshop, 0.00
5 2.00 2.00
administrative building etc.)
6 Roads 1.50 3.00 3.00
7 Railways 0.00 0.00 0.00
8 Green belt 0.00 11.00 11.0
9 Area under Aqua Culture 3.00 3.00 3.00
10 Effluent treatment plant 0.00 0.00 0.00
11 Nallah/ River 0.00 00.00 20.00
12 Township area/Settlement area 30.00 30.00 30.00
13 Others check dam & retention walls 0.00 1.00 3.00
14 Area un-utilized 965.50 870.00 161.0
Total 1000.00 1000.00 1000.00

Surface plan is shown in Figure-2.

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 FIGURE-2
SURFACE PLAN

10
(iii) Topography along with maps

The mining lease area forms part of a barren sandy stretch with an elevation of 1-20 m
above the mean sea level.

(iv) Existing Land Use pattern and distances from forests, CRZ, etc

The proposed AML area involves forest land of 742.12ha and 4 villages are existing in
the ML area. However, Mining operations shall exclude the human habitation in the
village area by providing safe zone around the villages and roads.

Rivers

Nagavali river- Adjacent

Kadivalasa River- 15.5 km, SW

Forests

Kotapalem PF (0.5 km, SW)

Kuppili PF (within ML area)
Dharmavaram PF (within ML area)
Srikakulam RF (11.6 km, NE)

(v) Existing Infrastructure

Road: The AML area is connected by a tar road connecting Srikakulam with places like
Srikurmam temple, Kuppili Village over a stretch of 15 km.

Railway: Srikakulam Road Railway Station (20.7 Km, NNE)

(vi) Climatic data from Secondary Sources

Secondary information on meteorological conditions has been collected from nearest IMD
station at Kalingapatnam which is at a distance of 12.0 Km, SE from the plant site. IMD
data for ambient temperature, relative humidity, wind speed and rainfall is given in the
Table-2 below.
TABLE-2
CLIMATE DATA KALINGA PATNAM

Annual mean ambient temperature Max: 38.40c

Min: 14.00c
Highest temperature in a day 46.90C
Lowest temperature in a day 31.70c
Relative humidity Max: 86%
Min: 68%
Annual mean wind speed 11.2 kmph
Rainfall Avg: 1068 mm

(vii) Social Development & Infrastructure Availability

Primary schools, village temples and primary health centres are existing in the nearby
villages.

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 EXISTING POPULATION DATA

2.0 MTPA, 1000.Ha mine

Sr.No Name of the Name of Households Population Male Female
Village the
Mandal
1 Kuppili Etcherla 1285 6180 3110 3070

2 Koyyam Etcherla 1400 5538 2758 2780

3 Dharmavaram Etcherla 1944 7906 3958 3948

4 Bontalakoduru Etcherla 669 2451 1254 1197

Total Population 5298 22075 11080 10995
Source-Census data-2011

5) Proposed Infrastructure

(i) Social Infrastructure

S.No Activity Village

1 Construction of Compound wall Srikurmam Temple
2 Construction of Shed at Annadana Satram Arsavalli temple
3 Construction of Hospital At Company Premises
4 Construction of Eye Hospital At Company Premises
5 Construction of Super Bazar on No Profit At Company Premises
Basis
6 Construction of School for Bith English & At Company Premises
Telugu Media
7 Supply of Tri Cycles to Physically Challenged In the Mining area
Persons
8 Financial Assistance to the Poor Families In the Mining area
who Underwent Family Planning Operations
9 Supply of Sports Kits in the villages In the Mining area

(ii) Proposed Infrastructure Available

Rest shelters, Drinking water & First Aid facilities will be provided within the lease area
whereas Office Canteen, transport and others will be constructed out side the mining
lease area in the close proximity.
(6) Power requirement

About 6 MW of power is required for the proposed sand mining operations, Pre-
Concentration Plant and Mineral Separation Plan

(7) Green belt development

APMDC shall under take plantation activities in and around the ML area and on the
backfilled reclamation land. Green belt will be developed 7.5 m wide along the periphery
of the AML area.

8 Rehabilitation & Resettlement (R&R) Plan

ML area is falling in the 4 villages. However, Mining operations shall exclude the human
habitation in the village area by providing safe zone around the villages and roads.
Hence, No R&R is involved.

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9 Project Schedule & Cost Estimates

(i) Likely date of Start of Construction and likely date of Completion

The unit of the project is proposed to go into commercial operation (COD) in 24

months from the zero date.

(ii) Estimated project cost along with analysis in terms of economic viability of the
project.

The proposed project cost is Rs. 200 Crores

Sr.
Description Cost in Crores
No
1 Land cost expenditure 23.0
Cost of infrastructure, Equipment, vehicles, Manpower,
2 175.0
machineries, etc.
3 Environmental protection 1.25
4 Socio-economic development 0.75
TOTAL 200.00

10. Analysis of Proposal (Final Recommendations)

Financial and Social Benefits

The project will improve the socio-economic status of the society in the region by
generating direct and indirect employment opportunities. The project will contribute
additional revenue to the State & Central exchequers in the form of taxes, cess, etc.

The anticipated positive impacts of the project are explained below:

Human settlement is expected to increase after this project gets operational. In the long
term, the project will have impact on the population growth due to migration of people
from outside area. Indirect employment opportunities will also add to this.

The literacy level of the project area is likely to increase as there will be influx of many
educated people taking up jobs in the project, which is likely to result in establishment of
better educational facilities.

The impact of the project on the civic amenities will be minimal. Health care facilities will
be developed for the employees of the proposed project. These medical facilities will be
extended to surrounding villages.

The project related construction activities will benefit the local populace in a number of
ways such as supply of construction labourers – skilled, semi-skilled and un-skilled,
tertiary sector employment and provision of goods and services for daily needs including
transport. The proposed project will provide employment to the skilled as well as un-
skilled persons. The local population will be given preference depending upon their
suitability to the job requirement. Besides direct employment, indirect employment
opportunities will also open up. The project will have positive impact in the region.
Quality of life of the people will improve, which in-turn will improve the socio-economic
conditions of the area.

***********

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 ANNEXURE I

Details of change in land use of the Mining Lease Area

In Ha.
S Present During
Conceptual
. Particulars Land scheme
period
No. use period
1 Area of excavation/refill/afforestation 0.00 80.0 800.0
2 Storage for topsoil 0.00 0.00 0.00
3 Overburden dump 0.00 0.00 0.00
4 Mineral storage 0.00 0.00 0.00
Infrastructure (workshop, 0.00
5 2.00 2.00
administrative building etc.)
6 Roads 1.50 3.00 3.00
7 Railways 0.00 0.00 0.00
8 Green belt 0.00 11.00 11.0
9 Area under Aqua Culture 3.00 3.00 3.00
10 Effluent treatment plant 0.00 0.00 0.00
11 Nallah/ River 0.00 00.00 20.00
12 Township area/Settlement area 30.00 30.00 30.00
13 Others check dam & retention walls 0.00 1.00 3.00
14 Area un-utilized 965.50 870.00 161.0
Total 1000.00 1000.00 1000.00

ANNEXURE 2

KUPPILLI VILLAGE BLOCK AML DETAILS

Sr. Survey Status Of Extent Extent

Remark
No Number the Land in Acres in Hecters

1 500 Forest 999.50 404.49

TOTAL
999.50 404.49

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 KOYYAM VILLAGE BLOCK AML DETAILS
Sr. Survey Status Of Extent Extent
Remark
No Number the Land in Acres in Hecters
1 349 Pvt. Land 7.29 2.95
2 350 Pvt. Land 11.59 4.69
3 351 Govt. land 17.35 7.02
4 352 Pvt. Land 10.17 4.12
5 409 Pvt. Land 4.13 1.67
6 410 Pvt. Land 2.63 1.06
7 411 Pvt. Land 17.91 7.25
8 412 Pvt. Land 11.24 4.55
9 413 Pvt. Land 1.69 0.68
10 414 Pvt. Land 55.04 22.27
11 415 Pvt. Land 10.03 4.06
12 416 Pvt. Land 4.74 1.92
13 421 Govt. land 13.87 5.61
14 422 Govt. land 14.14 5.72
15 423 Pvt. Land 5.20 2.10
16 424 Govt. land 8.12 3.29
17 425 Govt. land 15.05 6.09
18 426 Govt. land 65.52 26.52
19 427 Govt. land 62.37 25.24
20 428 Pvt. Land 24.02 9.72
21 429 Pvt. Land 20.00 8.09
TOTAL 382.10 154.62

KOYYAM VILLAGE BLOCK AML DETAILS

Sr. Survey Status Of Extent Extent
Remark
No Number the Land in Acres in Hecters
22 430 Govt. land 54.46 22.04
23 431 Govt. land 29.32 11.87
24 432 D.patta land 8.19 3.31
25 433 Pvt. Land 6.72 2.72
26 434 Pvt. Land 8.56 3.46
27 435 Pvt. Land 17.35 7.02
28 436 Pvt. Land 6.79 2.75
29 437 Govt. land 6.68 2.70
30 438 Pvt. Land 7.13 2.89
31 439 Pvt. Land 10.34 4.18
32 440 Pvt. Land 7.33 2.97
33 441 Pvt. Land 12.39 5.01
34 442 Pvt. Land 50.98 20.63
35 443 Pvt. Land 5.24 2.12
36 444 Pvt. Land 9.54 3.86
37 445 Pvt. Land 6.80 2.75
38 459 Pvt. Land 24.22 9.80
39 460 Pvt. Land 47.65 19.28
TOTAL 319.69 129.36

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 BONTHALAKODURU VILLAGE BLOCK AML DETAILS
Sr. Survey Status Of Extent Extent
Remark
No Number the Land in Acres in Hecters
pvt. land
150
1 482.2 195.14
TOTAL 482.2 195.14

DHARMAVARAM VILLAGE BLOCK AML DETAILS

Sr. Survey Status Of Extent Extent
Remark
No Number the Land in Acres in Hecters
1 530 Pvt. Land 11.58 4.69
2 532 Govt. land 5.33 2.16
3 533 Pvt. Land 1.80 0.73
4 536 Govt. land 0.72 0.29 Road
5 540 Govt. land 28.50 11.53
6 547 Pvt. Land 14.36 5.81
7 548 Pvt. Land 87.35 35.35
8 549 Govt. land 110.28 47.06
9 550 Pvt. Land 113.15 45.79
10 551 Govt. land 88.00 35.61
11 552 Pvt. Land 77.10 31.20
12 553 Govt. land 125.82 50.92
13 554 Pvt. Land 19.70 7.97
14 555 Pvt. Land 4.30 1.74
15 556 Pvt. Land 81.30 32.90
16 557 Pvt. Land 45.64 18.47
TOTAL 814.93 332.22

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