Vibhuti Gudda Iron Ore Mine Pre Feasibility Report

PRE FEASIBILITY REPORT
PROJECT: VIBHUTI GUDDA IRON ORE MINE

(Extent : 79.37 Ha.)
BELAGAL VILLAGE, BELLARY TALUK, BELLARY DIST., KARNATAKA.
PROPONENT
M/s. VIBHUTIGUDDA MINES Pvt. Ltd.,
BELLARY, KARNATAKA.
Consultant
MINERAL ENGINEERING SERVICES
Mining & Environmental Engineers
25/XXV, Club Road, Bellary – 583 103.
Karnataka
PRE-FEASIBILITY REPORT FOR VIBHUTI GUDDA IRON ORE MINE (VGIOM)
(ML No. 2469) OF M/s. VIBHUTI GUDDA MINERALS PVT., LTD., SITUATED IN
BELAGAL VILLAGE OF BELLARY TALUK & DISTRICT,KARNATAKA STATE.
(AS PER LETTER NO: J-11013/41/2006-IA.II(1) DATED : 30.12.2010)
1. Executive Summary:
Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of M/s. Vibhuti Gudda Mines Pvt.
Ltd. Modi Bhavan, No. 60/356-A, Hospet Road, Allipura, BELLARY 583 105.
KARNATAKA, Tel Nos 237666 Std (08392), E mail: ykadadi@gmail.com, sk_vgm @123
india.com, has a lease area of 55.00 ha in forest land situated at Survey No. 90(P) of
Belagal village in Bellary Reserved Forest, Bellary Taluk and district, Karnataka. It is a
private limited concern and Sri. S.K. Modi is the Director. The Original mining lease is
granted for a period of 20 years w.e.f. 7.4.1954 over an extent of 112.56 Ha, Expired on
6.4.1974. Subsequently renewed for another 20 years in 1974 and extended lease period
expired on 6.4.1994. The Second renewal was granted in 2004 for a period of 20 years
with effect from 7.4.1994 to 6.4.2014, during the second renewal out of 112.56 Ha, lessee
retained only 55.00 Ha. After surrendering 57.56 Ha from the original lease area. The
mining plan of Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) for the period 2006-
07 to 2010-11 was approved by Indian Bureau of Mines (IBM) vide letter no
MS/BLR/Fe-72-SZ dated 18.08.2006. The new mining scheme has been submitted to
IBM for the period 2011-12 to 2013-14 vide letter dated 18.12.2010 for approval. The
permission for diversion of Forest Land was granted vide letter No. 8-62/97-FC, dated
22.7.1999 with effect from 1-5-97 for 20 years (valid upto 30.4.2017) co-terminus with the
mining lease of Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469). The Consent for
Establishment (CFE) was granted by Karnataka State Pollution Control Board (KSPCB)
for increasing Iron Ore production from 0.044 MTPA to 0.275 MTPA in ML 2469 vide
letter no. CFE-CELL/VGIOM/EIA-129/2004- 2005/74 dated 08.02.2005. The Consent to
Operate ML 2469 was accorded vide letter No 120/KSPCB/RO(BLY)/2011-12/941
dated 17.07.2011 and was valid up to 30.06.2012. Further renewal of the Consent to
Operate was applied on 21.4.2012 at the Regional office Karnataka State Pollution
Control Board, Bellary. Environmental Clearance (EC) for the Vibhuti Gudda Iron Ore
Mine (VGIOM) (ML 2469) involving a lease area of 55.00 Ha for expansion in production
of iron ore from rated capacity of from 0.044 MTPA to 0.275 MTPA under the provisions
of Environmental Impact Assessment Notification, 1994 and subsequent amendments
thereto was accorded by MoEF for a production capacity of 0.275 MTPA vide letter No.
J- 11015/118/2005-IA.II (M) dated 24.01.2006.
Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) over an extent of 55 ha and Belagal
Iron Ore Mine (BIOM) (ML 80) of 5.67 ha both in forest land are situated at Survey No.
90(P) of Belagal village in Bellary Reserved Forest adjoining each other are being
worked by the same mine owner. Both the leases are having a single common pit with
common boundary working permission.
The mine was closed along with all other iron ore mines of Bellary District in July 2011
as per the orders of Honorable Supreme Court of India. Central Empowered Committee,
in its report dated 28th March, 2012 submitted to Hon’ble Supreme Court, had listed ML
2469 and ML 80 at entry no. 3 & 4 in R-10 (category ‘B’). As per the Central Empowered
Committee (CEC) appointed by the Honorable Supreme court of India directives, joint
survey of lease boundary demarcation was carried out in the presence of officials from
Dept. of Mines & Geology and Forest Department. Subsequently, the boundary pillars
are demarcated, constructed, painted and also Lease Name, Number and GPS Reading
have been marked on the Boundary Pillar as per the Dept. of Mines & Geology
Mahazar Report. These two leases (ML 2469 & ML 80). were listed under one row
together and the lease has been shown as 60.67 ha (total of the individual lease areas, i.e.
55.00 ha (ML 2469) + 5.67 ha (ML 80). Further a common R & R Plan for both the leases
was prepared by ICFRE and approved by CEC and the engineering measures are
suggested under the approved R&R plan for the combined mine leases i.e., ML 2469 and
ML 80 as they are adjoining mines. Under this Plan the combined production capacity
based on reserves, dump and road capacity for ML 2496 and ML 80 has been estimated
0.22, 0.064 and 0.30 million tonnes per annum (MTPA) respectively and based on this,
the annual production limit of 0.064 million tonnes is fixed for the combined leases.
Since the ML area ML 80 is very small 5.67 ha, the entire production of 0.064 MTPA of
iron ore fixed by CEC, is taken as the annual production targets for Vibhuti Gudda Iron
Ore Mine (VGIOM) (ML 2469) and all the present proposals of production for Vibhuti
Gudda Iron Ore Mine is made based on the above said rated capacity of 0.064 million
tonnes per annum. Further, based on the comment given in the R&R Plan, and also CEC
in its report dated: 28.08.2012.
Belagal Iron Ore Mine of M/s Karnataka Minerals, Bellary (Mining Lease No. 1082) granted
for a period of 20 years from 14.03.1952 over an extent of 89.00 Ha expired on 13.03.1972.
Subsequently the renewal of ML No. 1082 was granted for another 20 years w.e.f. 14.03.1972
which expired on 13.03.1992. The Second renewal notification for the period of 20 years
w.e.f. 14.03.1992 is issued vide Notification No.CI.210MMM 2005 dt: 06.10.2007 for a
reduced extent of 18.70 Ha, but not able to execute the lease deed, as the forest clearance
was not received from Forest Department even though the application for the forest
clearance was submitted in 1991.
All the above said three leases are belonging to the same owner in the different names in the
same hillock sharing the common boundaries and also situated in the same Sy. No. and
same village.
As per recommendation of competent authority, State Government has approved the

amalgamation of these three mining leases and issued “In Principle Approval Letter” for
the Amalgamation of these 3 leases and to obtain the statutory clearances for the formal
renewal and amalgamation with the amalgamated combined lease sketch vide letter No.
DIG/MLS/VGML/2014-15 dated 25.06.2014. Enclosed as vide Annexure No. I.
The lease wise details furnished below:

Sl. Name of the lessee ML No. Extent (Ha)
No.
1 M/s. Vibhutigudda Mines (P) Ltd., 2469 55.00
2 M/s. Gavisiddeswara Enterprises 80 5.67
3 M/s. Karnataka Minerals 1082 18.70
TOTAL 79.37
The total area has became 79.37 Ha. However the handling of the ore has been reduced
to 0.064 MTPA from the cumulative production of 0.329 MTPA granted by MoEF as per
the their individual EC.
Presently application for the environmental clearance in respect of Vibhuti Gudda Iron
Ore Mine (VGIOM) (ML 2469) of M/s Vibhuti Gudda Mines Pvt. Ltd. involving a lease
area of 55 ha is being submitted as the earlier Environmental Clearance (EC) for the
same, for the expansion of iron ore production to 0.275 MTPA, was accorded under the
provisions of Environmental Impact Assessment Notification, 1994 vide letter No. J-
11015/118/2005-IA.II (M) dated 24.01.2006, to obtain afresh Environmental Clearance
(EC), under the provisions of Environmental Impact Assessment Notification, S.O.
1533(E) dated 14th September, 2006, with a rated production of 0.064 MTPA of iron
ore as fixed by CEC.
India possesses haematite resources of 14,630 million tonnes of which 7,004 million
tonnes are reserves and 7,626 million tonnes are remaining resources, with Karnataka
state having 1676 million tones (11%) of reserves. It is an undeniable fact that steel plays
a pivotal role particularly in reference to the infrastructural sector. In India, the per
capita steel consumption of 55 kgs remains very low, compared to the international
average of 190 kgs and China’s average of 400 kgs. In this context, the production of 500
MT of steel is an imperative by 2050 and for this 640 MT of iron ore per annum is
required . India atlest will need 200 MT of Steel by 2020. This calls for wise use of our
limited resources and to strategically plan for the future to meet the demand when it
finally arrives. It is expected that the additional demand will be met through capacity
augmentation from mines in Karnataka and in other places and by opening of new
mines.
The expected production target of the Mild/Carbon Steel for the year 2011-12 was
projected as 69.89 million tones of steel. To meet the above projected tonnage of steel,
the requirements of various grades/ specifications of iron ore are estimated to be156
million tones. But this could not be achieved mainly because of the closure of mines in
Karnataka & Odisha.
The SC has capped iron ore production from Karnataka at 30 mtpa. The steel industry in
Karnataka needs about 30 mt of iron ore a year and produces about 16 mt of steel.
About 10 months after the Supreme Court had approved the resumption of mining
operations by 18 category-A mines, six mines have resumed operations in Karnataka.
Together, these mines are allowed to produce 3.3 million tonnes (mt) of ore a year,
about 10 per cent of the iron ore requirement of steel mills in the state
After the SC intervention and recommendation that all ore be sold through e-auctions,
steel plants in Karnataka have complained of shortage in the raw material. JSW Steel
company is running its 10 mtpa plant in Karnataka at 80% capacity due to ore shortage.
The entire industry, including sponge iron units, is operating at a reduced capacity of
about 50 per cent. Some sponge iron and mini steel mills have been shut due to shortage
of iron ore
The FIMI expects the production of iron ore in Karnataka at about 15 million tonnes
during 2013-14 assuming some more mines in Category A and B resume mining. This
would include about 8 million tonnes from NMDC. This means that the steel industry
would end up getting only half of its requirements. This means, all the steel mills
operating in India might have to import iron ore or else shut down their operations.
Thus it is essential that iron ore mines in Karnataka have to be reworked to meet the
domestic demand for which the working of this mine is fully justified
This mine shall provide employment for about 50 people by both direct employment
which include mine officials, skilled, semi skilled and unskilled labour and indirect
employment, in contractual works for the local villagers. The lessee shall extend social
benefits like drinking water health care measure, educational benefits to the
neighboring villagers in addition to his own employees. Further, this project is expected
to yield a positive impact on the socio-economic environment of the region. It helps in
sustainable development of this area including further development of physical
infrastructural facilities.
Also by this increased production of iron ore , the country achieves the revenue in terms
of taxes on iron ore and exchequer revenue for the State in terms of royalty etc. In FY11,
Karnataka earned Rs 520 crore as royalty on 33 million tonnes of ore produced while in
FY12 it rose to Rs 730 crore on an output of 22 million tonnes.
The Karnataka government expects Rs 15,000 crore revenues from the state’s iron ore
sector from multiple sources like levy of fines on illegal mines, a portion set aside from
e-auction proceeds and also from the proposed auction of certain mines. The revenue
generated from these sources will be placed under a special purpose vehicle and will be
used for developing infrastructure in three iron ore mining districts – Bellary,
Chitradurga and Tumkur.
Further, this project is expected to yield a positive impact on the socio-economic

environment of the region. It helps in sustainable development of this area including
further development of physical infrastructural facilities.
ML is located towards South West from Bellary town and is at a distance of about 12 km
and 2.50 km from the Bellary–Tumati Road. The nearest Railway station is Bellary
Cantonment Station at a distance of 18 km in Bellary district, Karnataka. The
amalgamated Vibhuti Gudda Iron Ore Mine (VGIOM) is bounded by Longitude:
E76°48' 33.7" - 76° 49' 57.7"; Latitude: N 15° 05’29.2" - 15° 05'57.8" (WGS 84) under
Toposheet No 57 A/16. Joint survey of boundary demarcation of ML No. 2469 of
Vibhuti Gudda Iron Ore Mine is as per the Honourable Supreme Court approved
sketch. The Vibhudigidda mine lease area is surrounded by the ML of M/s Gavi
sidheswara Enterprises ML No 80 along the West belonging to the same owner with
common boundary workings, ML No. 1082 of M/s. Karnataka Minerals along the
North and forest areas along the East & South. All these three mining leases are
proposed to be amalgamated into one single lease.
The area of 10 km radius around the lease area (buffer zone) comprises of valleys
surrounded by rugged hills, marked by discrete, NW-SE trending ridges, separated by
flat or gently sloping land. The mine is about 12km from Bellary Town. A major part of
the hilly tract is under the reserved forest category. At present, the maximum and
minimum elevation in the lease area is 870 mRL and 564 mRL respectively.
The drainage in this area is sub-dendritic. The drainage from this area is flowing both
towards NE and SW. There are 2 drains in NE and one drain in SW. The slopes of the
hill range are traversed by a few nalas which drain into the valley on both the flanks of
the hill range. These nalas are small and narrow and act only as flood channel during
rainy season and none of them are perennial. The lessee along with adjoining mine
owners has constructed check dams, gully plugs and retaining walls protecting the
drainage along the hill slopes.
It is a forest land under active mining operation since 1954 under Bellary Reserve forest.
The vegetation occurring in the area belongs to Southern Tropical throny/scrub forests
consisting of Deciduous, low thorny trees and xerophytes. In this type of forests canopy
is more or less broken. According to the classification the area falls under Deciduous
climax forests and degradation group. Under this group the area can be grouped under
Dry deciduous – Scrub forests. Therefore the timber source is practically nil in this area.
No Major or sensitive faunal species are found in this area, as it is not a hiding place for
them. This mine area does not form a corridor for any of the major faunal species.
Further, the mine is under active mining operation for the past many years and
therefore is almost being utilized. Therefore there shall be no further clearance of any
vegetative cover, which has already been broken up. There is no public
building/structure in the site. There are no ecologically sensitive areas, wildlife
sanctuaries or habited for any specific wildlife, within 10 km radius nor there are any
archeological monuments, defense installation or major water courses. The nearest
place of religious importance is a Gavisiddeswara temple with natural water spring
located 1.6 km in southern direction. Allipura water reservoir which is the major
drinking water source to Bellary is located 7 km towards north direction. The distance
being large there shall be no impact of the mine in terms of dust or water pollution,
fly rock ejection, noise and ground vibration.
The lease area is a part of residual hills and pediment over Dharwar group with narrow
bands of resistant ridges which has poor ground water potential and good potential of
ground water is observed along structurally controlled zones. The most buffer zone
pediment over peninsular gneiss, residual hills and resistant ridges/ homoclinal ridges
which acts as poor to moderate ground water potential areas, moderate to good along
fractures and homoclinal ridges along dip ward side. The highest level of the lease area
ML 2469 is 870MSL and the working level starts from 860 MSL with lowest being 756.
The ground level is 560 MSL and the ground water table level is 540 MSL Therefore
there shall be no impact on ground water system.
The topography of the ML area is depicted in the Surface Plan given under Plate No 2
and the adjoining areas in Plate No 1.
The area exhibits temperate climate. Bellary district is known for hot summer and very
dry weather for a major part of the year, and the temperature varies between 18°C and
44°C. Average daily maximum relative humidity is around 77% and Average daily
minimum relative humidity is around 27%. The annual rainfall varies from 350 mm to
650 mm with an average rainfall of 574.9 mm. The rainfall is mostly (60%) confined to
the period from June to September during southwest monsoon. October to November
are the months of retreating monsoon (24%), and another 16% of rainfall occurs as
sporadic in other months of the year. On an average, the district has 39 rainy days in a
year. The rainfall decreases from southwest to northeast monsoons. The predominant
wind direction is NE. Predominant wind speeds range 1.7 to 5.0 m/sec. The soil pH
ranged from 6.9 to 7.5 indicating that the soil is generally neutral.
The area is in the southernmost part of Belagal Range in the Copper Mountain region of
famous Sandur Schist Belt. The general sequence of rock formations are Soil, Iron ore
reef, Shale / Phyllite & BHQ. The general strike of the ore body is NW-SE while the dips
vary from 85°-87° towards NE. The quality of iron ore is 63-67 % Fe and is massive in
nature and is bounded by ferruginous shale and phyllite in hangwall and footwall. The
strike of the reef is 850 m in NW and SE with average width of 25 m which diverts into
two prongs in the SE part of the lease. Geological plan is enclosed under Plate No 3. 13
core bore holes Proposed in ML. No. 2469 & 80 and completed, as per core drilling data
the mineable iron ore reserves estimated are enhanced to 22.34 million tonnes. The mine
shall work with single day shift. The proposed annual ore production as fixed under the
R&R plan is 0.064 million tonnes per annum with an average ore to waste ratio of 1:6.13.
The mine shall work with single day shift. The mine was closed along with all other iron
ore mines of Bellary District in July 2011 as per the orders of Honorable Supreme Court
of India. Before that the mine was not working since 2009. Mine was being worked with
mechanized opencast mining method with a combination of hydraulic excavator and
dumper truck. Deep-hole drilling with controlled blasting is being carried out only on
hard formation. Blasting is done with cast booster slurry explosive in combination with
ANFO using detonating fuse or with nonels in conjunction with MS delay detonators.
This will reduce ground vibrations and fly rock ejection. Semi-hard formations grading
into softer ones are handled with the hydraulic excavators. For handling of ore stocks at
mine-sites, wheel loaders are provided to keep in tune with quantum of handling. For
maintaining waste disposal sites wheel loaders are in use. The wastes generated are
transported by 10/16 tonnes capacity dumpers. A crushing & screening plant of
capacity 200 tonnes / hr is provided at the mine site.10/16 tonner hired trucks were
utilized for transportation to their own railway siding at Obulapuram located at about
12 km distance. Iron ore produced is sold locally. Presently entire generated ore will be
lifted from the mine by buyers through e-auction and it will be sold locally.
The mining method is by conventional open pit system, the single pit is extended by
stages in all directions with increase in depth of the working pit. The pit is running from
NNW-SSE direction along the strike. There is a single reef deposit with an average
width of 20m, running along the slope of the hill. The benches have been formed with
an average height of 9m and width of ~10m with an inclination of 80°. There are 18
benches, 12 towards south and 6 towards north. Before onset of monsoon, drains are
made along toe of the mine faces to divert the surface run off and prevent the erosion of
benches. The size of the pit is 900mx300m. The top RL is 870m and the bottom RL is
756m. Pit slope angle is maintained at 45° and bench slopes are 80°. The movement of
ore and waste is through 10/16 tonnes capacity tippers. Ore is being transported by
road upto to the own railway siding situated at Obalapuram village which is ~12kms
from the mine.
Area proposed at Conceptual Stage is:

Area for Mining 47.87 Ha
Area for inactive dump 27.22 Ha
Area for roads 1.00 Ha
Area for infrastructures 0.20 Ha

Safety zone/plantation 3.08 Ha
Total 79.37 Ha
The expected air pollution (Mainly dust release), water pollution (only sediments), noise
pollution including the ground vibrations due to this proposed mining activity are
minimal as mitigation measures such as regular water spray along the transport roads,
development of wide green belts surrounding mining area and along the safety barriers,
proper maintenance of roads and the mining machinery & equipment as per
manufacturers norms, erection of check dams & retaining walls. Seasonal monitoring on
environmental quality parameters on air, noise, water & soil qualities shall be done by
engaging M/s. Mineral Engineering Services, Bellary, the Lab recognized by MoEF. The
Suspended Particulate Matter (SPM) within the ML area is lowest (249 µg/cum) at mine
working area and maximum at dumping point (320µg/cum). Small quantity of dust
generated will settle on the nearby land out side ML area. This is protected by
developing wide green belt surrounding the ML area. 3 KLD of diesel shall be used for
running of mining machineries such as Excavators, dozers, dumpers, DG sets.
Emissions are SO2 & NOx. Maximum quantities of SO2 & NOx observed were 20 & 22
µgm/cum respectively. The noise levels varied from 42 to 82 dB(A) within the mine
area. The nearest place of religious importance is one Gavisiddeswara temple along
with a natural spring located about 1.6 km southern direction. The distance being
large there shall be no impact of the mine in terms of fly rock ejection, noise and
ground vibration. The annual rainfall varies from 350 mm to 650 mm with an average
rainfall of 574.9 mm. The pit is not likely to be filled in case of cloud bursts. Land slides
could not occur if systematic bench system is followed. No record of earth quakes is
existing in the area. The zone falls in category II.
The vegetation occurring in the area belongs to Southern Tropical throny/scrub forests
consisting of Deciduous, low thorny trees and xerophytes. Therefore the timber source
is practically nil in this area. Since the ML area is almost broken up after getting the
approval from Forest Dept., there shall be no further clearance of vegetation from the
ML. The 7.5 m barrier surrounding the two mining leases are well protected.
No liquid wastes are generated. The overburden waste mainly consists of shale, phyllite,
gabbro and BHQ. There are two inactive dumps within the Vibhutigudda mine lease
area one lying on south eastern portion of ML with dump top RL 835 m and bottom RL
785m, extending beyond the ML area. The second dump is located South Western side
of the lease area, with top RL is 878m and bottom RL 815m. There is one active dump
within the mine lease area located on the North Eastern side with a top and bottom RL
of 780m and 598m, respectively. The dump height and width are 181m and 1228m
respectively with a quantity of 2333700 cum covering 12.2 ha, within the Ml area. This
dump is also extended outside the lease area. As this dumping area is exhausted,
ICFRE in their approved R&R plan has suggested future waste dumping in adjoining
Belagal Iron Ore Mine (BIOM) (ML 80) of 5.67 ha, being worked by same owner, having
common workings. The expected future waste generation at the rate of 0.41 million
tones per annum can be accommodated in the waste dump for 10 years. The dumps
shall be raised to a maximum height of about 20m with intermittent bunds at 10m. I t
is proposed to construct retaining walls at the foot of dumps to avoid wash off of the
material due to rains. After this the waste generated shall be backfilled into the
worked out portions of the pit, covering an area of 8.00 ha. Both the waste dumping
area and the backfilled area are concurrently afforested.
During the course of dumping, slope and flat top portion of the dump will be
rehabilitated by plantation as proposed in the R&R Plan. Various species of grasses,
leguminous species, and plant species recommended for OB dump and mine pit
stabilization will be taken up accordingly. Due care will be taken to protect the
plantation area from fire and pest. For healthy growth of the saplings, proper dosage of
organic fertilizer /manuring and water will be provided as and when required.
The inactive part of dumps and already reclaimed areas are annually covered with
plantation. An area of 5 hectare is proposed to be covered with plantation during plan
period. Afforestation covering 1000 trees and 2500 shrubs per hectare, inclusive of
maintenance for five year has been worked out as per the norms of State Forest
Department, Karnataka.
No electric power is required for mining excepting for night lighting which shall be
provided through KSEB. The diesel oil requirement for running the machinery is 3KLD,
which shall be transported by oil tankers and stored within the ML. As the average
grade of ore available are acceptable to the local buyers or buyers abroad, it is not
necessary to have provision of wet Beneficiation facility. ROM is dry crushed &
screened at mines site using mobile unit. presently as no export ore is permitted, the ore
is lifted through e-auction, buyers make their own arrangement for transporting the ore
from the pit head to their respective destination.
No Rehabilitation or Resettlement is involved as it is a forest land and there are no

human settlements or PAPs within the ML area which require Rehabilitation and
Resettlement. There are about 26 villages which fall within the buffer zone with a total
population of 36318. Due to the proposed mining activity, no significant adverse
changes are visualized in the traditional way of life of the people residing in the villages
in the buffer zone. Further people residing in the nearby villages are to be benefited by
the direct and indirect employment opportunities created by the mining activities.
Facilities like construction of roads, medical facility; vocational training provided by the
lessee will augment the socio-economic status of the villagers residing nearby. Harmony
among the people will improve as they come closer by arranging cultural activities,
safety weeks, environmental protection weeks etc. by the company. Mining activity has
contributed towards economic upliftment by creating job opportunities in the region.
There shall be no further infrastructural demand or amenities for working this mine as
CEC has fixed the capacity of the mine based on the Reserves (as mentioned in the
Approved Mining Scheme), Dumping Capacity and Infrastructure (road)facility and the
lowest of the three was considered for the mine production capacity which has been
reduced to 0.064 million tonnes per annum.
The estimated cost of the Reclamation and Rehabilitation plan as per the approved R&R
plan for ML 2469 Rs. Rs 328.53 lakhs. for ML 2469 and Rs. 14.25 lakh for ML 80)
excluding the cost for Biodiversity Management Plan, Monitoring and Evaluation,
Capacity Building, development of common infrastructure, etc.
The mine work starts as soon as this EC is obtained and the FC is renewed . The total
ore reserves presently estimated is about 9.08 million tonnes and with the present
proposed rate of production fixed by CEC of 0.064 million tones, the life of the mine
shall be 140 years. The proposed mining activity with production of 0.64 lakh tonnes per
annum of iron ore for this mine is observed to be remunerative with a net profit after
taxation @ 35% as Rs. 8.71 million after meeting direct mining costs, environmental
costs, cost on health & safety, socio economics, compensation for land, capital & R&D
costs.
2. Introduction of the project/ Background information

(i) Identification of project and project proponent. In case of mining project, a
copy of mining lease/ letter of intent should be given.
ML No.2469:
Vibhuti Gudda Iron Ore Mine of M/s. Vibhuti Gudda Mines Pvt Ltd, Bellary
original mining lease No. 32 granted for a period of 20 years on 07.04.1954, over an
extent of 112.56 Ha., expired on 06.04.1974. Subsequently the ML No. 32 was
renewed for another 20 years in 1974, under ML No.1193 & lease period expired on
06.04.1994. The second renewal was granted in 2004 for a period of 20 years under
ML No. 2469, with effect from 07.04.1994 to 06.04.2014. During the second renewal,
out of 112.56 Ha, lessee retained 55.00 Ha after surrendering 57.56 (46.78+10.78) Ha
of lease area.
The original lease granted in the name of Sri Kalgani Sanna Basappa was transferred
to M/s. Vibhuti Gudda Mines Pvt Ltd vide Notification No. CI. 4722-25/Geo-106-53-
2 dated 30th May 1954. The above said Mining Lease is valid upto 06.04.2014,
however the renewal application for the mining lease is submitted at Department of
Mines & Geology, Bangalore dated 11.04.2012.
ML No.80:
Belagal Iron Ore Mines of M/s. Gavisiddeswara Enterprises, Bellary Original
Mining Lease No. 80 granted for a period of 30 years from 16.04.1958 over an extent
of 5.67 Ha expired on 15.04.1988. Subsequently the renewal of ML No. 80 was
granted for another 20 years in 1988 and the extended lease period expired on
15.04.2008. In between 2 working permissions were granted for a period of 6 months
each from 14.05.2008 to 13.11.2008 & 14.11.2008 to 13.05.2009. However the renewal
application for the mining lease is submitted at Department of Mines & Geology,
Bangalore dated 14.03.2007.
ML No.1082:
Belagal Iron Ore Mines of M/s Karnataka Minerals, Bellary Original Mining Lease
No. 1082 granted for a period of 20 years from 14.03.1952 over an extent of 89.00 Ha
expired on 13.03.1972. Subsequently the renewal of ML No. 1082 was granted for
another 20 years in w.e.f. 14.03.1972 which expired on 13.03.1992. The Second
renewal notification for the period of 20 years w.e.f. 14.03.1992 is issued vide
Notification No.CI.210MMM 2005 dt: 06.10.2007 for an reduced extent of 18.70 Ha,
but not able to execute the lease deed, as the forest clearance not issued by Forest
Department even though the application for the forest clearance was submitted in
1991. Hence the Govt of Karnataka has considered the 3rd renewal as the lessee is at
no fault w.e.f. 14.03.2012 subject to obtaining of Forest Clearance.
As per recommendation of competent authority, State Government has approved

the amalgamation of these three mining leases and issued “ In Principle Approval
Letter” for the Amalgamation of these 3 leases to obtain the statutory clearances for
the formal renewal and amalgamation with the amalgamated single sketch vide
letter No. DIG/MLS/VGML/2014-15 dated 25.06.2014.
The lease wise details furnished below:

Sl. Name of the lessee ML No. Extent (Ha)
No.
1 M/s. Vibhutigudda Mines (P) Ltd., 2469 55.00
2 M/s. Gavisiddeswara Enterprises 80 5.67
3 M/s. Karnataka Minerals 1082 18.70
TOTAL 79.37
This mine was closed along with all other iron ore mines of Bellary District in July 2011
as per the orders of Honorable Supreme Court of India. Central Empowered Committee,
in its report dated 28th March, 2012 submitted to Hon’ble Supreme Court, had listed ML
2469 and ML 80 at entry no. 3 & 4 in R-10 (category ‘B’). As per the Central Empowered
Committee (CEC) appointed by the Honorable Supreme court of India directives, joint
survey of lease boundary was carried out in the presence of officials from Dept. of
Mines & Geology and Forest Department. Subsequently, the boundary pillars are
demarcated, constructed, painted and also Lease Name, Number and GPS Reading have
been marked on the Boundary Pillar as per the Dept. of Mines & Geology Mahazar
Report. Further a common R&R Plan for both the leases was prepared by ICFRE and
approved by CEC and the engineering measures are suggested under the approved
R&R plan for the combined mine leases i.e., ML 2469 and ML 80 as they are adjoining
mines. Under this Plan the combined production capacity based on reserves, dump and
road capacity for ML 2496 and ML 80 has been estimated 0.22, 0.064 and 0.30 million
tonnes per annum (MTPA) respectively and based on this, the annual production limit
of 0.064 million tonnes is fixed for the combined leases. Since the ML area ML 80 is very
small 5.67 ha, the entire production of 0.064 MTPA of iron ore fixed by CEC, is taken as
the annual production targets for Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469)
and all the present proposals of production for Vibhuti Gudda Iron Ore Mine is made
based on the above said rated capacity of 0.064 million tonnes per annum.
Presently application for the environmental clearance in respect of Vibhuti Gudda Iron
Ore Mine with three leases amalgamated involving a lease area of 79.37 ha is being
submitted as the earlier Environmental Clearance (EC) for the same, for the expansion
of iron ore production to 0.275 MTPA, was accorded under the provisions of
Environmental Impact Assessment Notification, 1994 vide letter No. J-
11015/118/2005-IA.II (M) dated 24.01.2006, to obtain afresh Environmental Clearance
(EC), under the provisions of Environmental Impact Assessment Notification, S.O.
1533(E) dated 14th September, 2006, with a rated production of 0.064 MTPA of iron
ore as fixed by CEC.
(II) Brief description of nature of the project.

Vibhuti gudda iron ore mine (VGIOM) (ML 2469) of Vibhuti gudda Minerals Pvt. Ltd. is
situated in Village BELAGAL of BELLARY Taluk of BELLARY District, Karnataka. The
mine is being worked for the past 59 years w.e.f. 07.04.1954. This lease area of 55.00 ha
in Bellary Reserved Forest situated at Survey No. 90(P) of Belagal village, Bellary Taluk
and District of Karnataka State
These two leases (ML 2469 & ML 80) were listed under one row together and the lease
has been shown as 60.67 ha (total of the individual lease areas, i.e. 55.00 Ha (ML 2469) +
5.67 ha (ML 80). Further. a common R&R Plan for both the leases was prepared by
ICFRE and approved by CEC and the engineering measures are suggested under the
approved R&R plan for the combined mine leases i.e., ML 2469 and ML 80 as they are
adjoining mines. Under this Plan the combined production capacity based on reserves,
dump and road capacity for ML 2496 and ML 80 has been estimated 0.22, 0.064 and 0.30
million tonnes per annum (MTPA) respectively and base on this, the annual production
limit of 0.064 million tonnes is fixed for the combined leases. Since the ML area ML 80 is
very small 5.67 ha, the entire production of 0.064 MTPA of iron ore fixed by CEC, is
taken as the annual production targets for Vibhuti Gudda Iron Ore Mine (VGIOM) (ML
2469) and all the present proposals of production for Vibhuti Gudda Iron Ore Mine is
made based on the above said rated capacity of 0.064 million tonnes per annum.
Further, based on the comment given in the R&R Plan, and also CEC in its report dated:
28.08.2012 suggested for Amalgamation of the two leases. Accordingly DMG,
Karnataka has advised the lessee to seek amalgamation of both the leases.
The mine is being developed by conventional mechanized opencast mining with limited
drilling & blasting operations, restricted to hard formations. Semi hard formations
grading into softer ones are excavated by hydraulic excavators for handling of ore
stocks at mine-sites, wheel loaders are provided to keep in tune with quantum of
handling. For maintaining waste disposal sites wheel loaders are in use. The wastes
generated are transported by 10/16 tonnes capacity dumpers. 10 tonner hired tipper
trucks were utilized for transportation to the railway siding. Iron ore produced is sold
locally. Presently entire generated ore will be lifted from the mine by buyers through e-
auction and it will be sold locally.
The present mining lease area of 79.37 Ha

Area for Mining 25.25
Ha
Area for dumping 5.27 Ha
Area for inactive dump 21.95
Ha
Others / including Engineering Measeurs 21.94 Ha
Total 79.37 Ha
(III) Need for the project and its importance to the country and or region.
India possesses hematite resources of 14,630 million tonnes of which 7,004 million
tonnes are reserves and 7,626 million tonnes are remaining resources. Major hematite
resources are located mainly in Jharkhand-4036 million tonnes (28%), Orissa-4761
million tonnes (33%), Chattisgarh-2731 million tonnes (19%), Karnataka-1676 million
tones (11%) and Goa-713 million tonnes (5%).
The iron ore deposits of the Eastern, Central and Southern zone do not contain much
overburden material except laterite and some low grade ferruginous shales and BHQ
patches.
 In spite of the current turmoil, Indian GDP is expected to grow in multitudes and
reach around $ 27 trillion by 2050 Infrastructural development will play an
instrumental role in achieving this GDP level
 It is an undeniable fact that steel plays a pivotal role particularly in reference to
the infrastructural sector
 In this context, the production of 500 MT of steel is an imperative by 2050 and for
this 640 MT of iron ore per annum is required
 India will need atleast 200 MT of Steel by 2020
 This calls for wise use of our limited resources and to strategically plan for the
future to meet the imminent demand when it finally arrives
 In India, the per capita steel consumption of 55 kgs remains very low, compared
to the international average of 190 kgs and China’s average of 400 kgs
 There exists a great prospect for a much higher investment into capacity addition
in the country
 Increase in steel capacity addition will fuel up the demand for iron ore in the
country
 Rural per capita steel consumption set to rise
 Steel to drive Construction & Infrastructure sector
 The world is scouting for good quality Indian Ore
As per National Steel Policy 2005, in order to support steel production of 110 million
tonnes by 2019-20, the requirement of iron ore is placed at 190 million tonnes. Thus the
projected domestic demand of iron ore will be 190 million tonnes; similarly, exports
have been estimated to be around 100 million tones by 2019-20. The total demand of
iron ore will be around 290 million tonnes by 2019-20. It is expected that the additional
demand will be met through capacity augmentation from mines in Goa & Karnataka
and in other places and by opening of new mines.
The expected production target of the Mild/Carbon Steel based on the Macro Economic
model and the growth rate of the GDP as projected in the 10th Five year plan working
group committee report (Working Group on Mineral Exploration & Development, other
than Coal and Lignite) for the year 2011-12 was projected as 69.89 million tones of steel.
To meet the above projected tonnage of steel, the requirements of various grades/
specifications of iron ore are estimated to be156 million tones. But this could not be
achieved mainly because of the closure of mines in Goa & Karnataka.
The SC had asked mine owners to get approvals from the Indian Council of Forestry
Research and Education (ICFRE), Indian Bureau of Mines and the CEC to resume
operations. As per DMG, Karnataka, some more mines will be allowed to restart, taking
total output by the fiscal-end to around 10 mtpa, in addition to NMDC’s output. The SC
has capped iron ore production from Karnataka at 30 mtpa.
would end up getting only half of its requirements.
After the SC intervention and recommendation that all ore be sold through e-auctions,
steel plants in Karnataka have complained of shortage in the raw material.
JSW Steel company is running its 10 mtpa plant in Karnataka at 80% capacity due to ore
shortage, the situation may ease when more mines reopen.
This means, all the steel mills operating in India might have to import iron ore or else
shut down their operations.
Thus it is essential that iron ore mines in Karnataka have to resume production to meet
the domestic demand for which the working of this mine is fully justified.
employment, in contractual works for the local villagers. The lessee shall extend social
benefits like drinking water health care measure, educational benefits to the
neighboring villagers in addition to his own employees. Further, this project is expected
to yield a positive impact on the socio-economic environment of the region. It helps in
sustainable development of this area including further development of physical
infrastructural facilities.
In FY11, Karnataka earned Rs 520 crore as royalty on 33 million tonnes of ore produced
while in FY12 it rose to Rs 730 crore on an output of 22 million tonnes.
Further, this project is expected to yield a positive impact on the socio-economic

environment of the region. It helps in sustainable development of this area including
further development of physical infrastructural facilities.
IV. Demand & Supply Gap

IRON ORE SUPPLY DEMAND SCENARIO IN INDIA (2000 -2040)
2000 2010 2020 2040
Finished steel consumption 28 61 120 – 150 400 – 530
FSC per capita (kg) 30 50 90 – 110 260 – 340
Iron ore requirement 43 100 200 – 250 700 – 900
Iron ore exports 33 120 ? ?
Iron ore expansion needed - - 20 - 70 480 – 680
As per the National Steel Policy, 2005 the total demand of iron ore is placed at 290
million tonnes including 190 million tonnes for domestic consumption & 100 million
tonnes for export by 2019-20. The current mining capacity of iron ore in the country is
around 160 million tonnes. This capacity can be enhanced, through consolidation of
leases, mechanised mining operations in Karnataka area and improvement in the
operating capacity of existing mines in other states
At present about 20 mines are being operated in Bellary-Hospet sector including 2

mines of NMDC and the cumulative production is about 15 MTPA. The demand for
iron ore for steel making and other metallurgical industries in this sector requires about
50 million tonnes of iron ore which requires proper planning keeping in mind the
environmental safeguards.
(v) Imports vs. Indigenous production,

India has emerged as the fourth largest miner and the third largest exporter of iron ore.
India has currently estimated iron ore resource of 25 billion tonnes. The Iron Ore & Steel
Derivatives Association IOSDA expects India to definitely strengthen its position as a
major ore producer. However, it foresees moderation in iron ore exports from India
going forward. With a number of steel projects coming on stream in the next one year,
IOSDA anticipates a steep increase in internal demand for iron ore. It also opines that
India needs to invest in infrastructure in order to develop the industry from a long term
perspective.
(vi) Export Possibility.

While Ministry of Steel is very much vocal against the export of iron ore in order to
support the domestic steel industry, exporters have a strong case in defense. According
to them, steel majors like Tata Steel and Sail have their own captive resources. Others
are getting ore from domestic miners. Indian iron ore production has always been
higher than the steel mill’s capacity to consume. Besides, surplus remains even after
exports. However, presently the Honorable Supreme Court of India so far not permitted
the export of iron ore from Karnataka. From Bellary-Hospet sector there will be
shortage.
(vii) Domestic / export Markets

Following the ban on mining in Karnataka, recent closure in Goa and very high export
duty of 30% coupled with higher freight rates on iron ore meant for exports by the
Railways, iron ore exports have come down sharply during the current year
According to Federation of Indian Mineral Industries (FIMI), India’s iron ore exporters
have declined 62.33% to 15.05 million tonnes during the first eight months of the current
fiscal (April-November 2012) as against 39.95 million tonnes exported in the same
period last fiscal. Since November, there have been no exports from the country.
However, the steel industry expects the availability of iron ore to further come down in
the next financial year (2013-14) due to several constraints in many iron ore producing
states.
In Karnataka, while the Supreme Court has permitted resumption of mining by

Category A & B mines, only twenty mines have restarted mining in the last few days.
These mines have so far produced @ 11 mtpa including two mines of NMDC. Whereas
the Monitoring Committee has not put on auction this ore due to certain reasons.
would end up getting only half of its present requirements and all the steel mills
operating in India might have to import iron ore or else shut down their operations.
According to Barclays Research, India’s iron ore production is likely to fall at a

Compound Annual Growth Rate CAGR of 3.8% over FY12-15 even as the demand is set
to grow at 8% during the same period, positioning India as a net importer (ex-Goa) of
iron ore from being the third-largest player in the global seaborne market as recently as
2011.
(viii) Employment Generation (Direct and Indirect) due to the project.

employment, in contractual works for the local villagers.
3.Project Description
(i) Type of project including interlinked and interdependent projects, if any.
Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of lease area of 55 ha and Belagal
Iron Ore Mine (BIOM) (ML 80) of 5.67 ha both in forest land are situated at Survey No.
90(P) of Belagal village in Bellary Reserved Forest adjoining each other are being
worked by the same mine owner. Both the leases are having a single common pit with
common boundary working permission. The mine was closed along with all other iron
ore mines of Bellary District in July 2011 as per the orders of Honorable Supreme Court
of India. Central Empowered Committee, in its report dated 28th March, 2012 submitted
to Hon’ble Supreme Court, had listed ML 2469 and ML 80 at entry no. 3 & 4 in R-10
(category ‘B’). As per the Central Empowered Committee (CEC) appointed by the
Honorable Supreme court of India directives, joint survey of lease boundary
demarcation was carried out in the presence of officials from Dept. of Mines & Geology
and Forest Department. Subsequently, the boundary pillars are demarcated,
constructed, painted and also Lease Name, Number and GPS Reading have been
marked on the Boundary Pillar as per the Dept. of Mines & Geology Mahazar Report.
These three leases (ML 2469, ML 80 & ML 1082). were listed under one row together
and the amalgamated lease has been shown as 79.37 ha (total of the individual lease
areas, i.e. 55.00 ha (ML 2469) + 5.67 ha (ML 80+18.7 Ha (ML 1082) = 79.37 Ha.
(ii) Location (map showing general location, specific location, and project boundary
& project site layout) with coordinates.
ML is located towards South West from Bellary town and is at a distance of about 12 km
and 2.50 km from the Bellary–Tumati Road. The nearest Railway station is Bellary
Cantonment Station at a distance of 18 km Bellary district, Karnataka. The Vibhuti
Gudda Iron Ore Mine (VGIOM) ML 2469 is bounded by (WGS 84). Toposheet No. 57
A/16.
Longitude: E76°48' 33.7" - 76° 49' 57.7";
Latitude: N 15° 05’29.2" - 15° 05'57.8" (WGS 84)
Joint survey of boundary demarcation of ML 2469 of Vibhuti Gudda Iron Ore Mine is as
per the Honorable Supreme Court approved sketch. The Vibhudigidda mine lease area
is surrounded by the ML of M/s. Gavisiddeswara Enterprises ML No 80 along the West
belonging to the same owner with common boundary workings, ML No 1082 of M/s
Karnataka Minerals along the North and forest areas along the East & south.
The DGPS values of boundary pillars for the amalgamated mining lease and GCPs are
given as under:
Location of the lease M.L. No. 2469 of Vibhuti gudda Minerals Pvt. Ltd. from the point
of accessibility, Taluk and District Head Quarter, and other infrastructure is shown on
Location Plan enclosed as Plate No. 1. The surface plan of the area demarcating the ML
boundary is furnished under Plate No. 2.
(iii) Details of alternate sites considered and the basis of selecting the proposed site,
particularly the environmental considerations gone into should be highlighted.
Iron ore mining is site specific. This lease is under active mining operation since 1954.
The same lease renewed upto 06.04.2014 and has reserve of 11.021 m.tonnes as on 2006.
The lease is located on the hill top where the reef runs along with run of the hill range.
(iv) Size or magnitude of operation.

The mine shall work with single day shift. The single pit is located in the middle of the
mine lease area running from NNW-SSE direction along the strike direction of the ore
body. There is a single reef deposit with an average width of 20m. The benches have
been formed with an average height of 9m and width of ~10m with an inclination of 80°.
An annual production of only 0.064 mtpa has been approved by CEC and the waste
generation will be of the order of 0.228 mtpa with ore to waste ratio of 1 : 3.57. This
mine had E.C. quantity of 0.275 mtpa.
(v) Project description with process details (a schematic diagram/ flow chart showing
the project layout, components of the project etc. should be given)
The area is in the southernmost part of Belagal Range in the Copper Mountain region of
famous Sandur Schist Belt. The Sandur Schist belt is one of the Dharwar type
Precambrian belts in the Karnataka. This is the smallest of the three basins and covers an
area of just 960 sq. km. It is structurally highly disturbed and squeezed out of shape by
the intrusion of younger granites. Shale faces as in the other basins is confine to the
western margin. Well-developed mafic magmatism and strong development of
manganiferous greywacke, Phyllite and numerous bands of banded hematite quartzite
(BHQ) characterize the basin. The basin is known for its rich accumulation of both iron
and manganese ores. Basement cover relations are obscured because of intense
deformation and intrusion by younger granites. The Sandur Schist Belt has a lens-
shaped geometry of about 60-km long, with a maximum width of 28 km in the central
part. Four formations have been distinguished in this basin: Amongst Yeshwantnagar,
Deogiri, Donimalai and Nandihalli Formations, the Yeshwantnagar formation is largely
composed of Volcanic flows; Green Schist, Metabasalt, etc.
The general sequence of rock formations found in the area is as given below:
• Soil
• Iron ore reef
• Shale / Phyllite
• BHQ
The general strike of the ore body is NW-SE while the dips vary from 85°-87° towards
NE. The quality of iron ore is 63-67 % Fe and is massive in nature and is bounded by
ferruginous shale and phyllite in hangwall and footwall. The strike of the reef is 850 m
in NW and SE with average width of 25 m which diverts into two prongs in the SE part
of the lease. Geological plan is enclosed under Plate No 3.
One core drilling bore hole was drilled from an RL of 770 to a depth of 64m and also
three down the hole (DTH) to a depth of 30m from the present RL of 756m were drilled.
It is proposed to drill six more bore holes during the next plan period and additional
five core bore holes during the subsequent years to comply with the UNFC guidelines
totaling to 11 core holes at approximately 100m interval, all along strike length of the
ore body.
The reserves estimated by the lessee under the latest scheme of mining submitted to
IBM are as follows;
Category Total Tonnage

Proved 22,344,658
Probable --
Possible 30,377,167
Total 52,721,825
Further, In 2012-13 & 2013-14, 13 core bore holes Proposed in ML. No. 2469 & 80 have
already been drilled and as per core drilling data the enhanced mineable iron ore
reserves are estimated as 22 million tonnes of mineable iron ore reserves.
The Vibuthi Gudda Iron Ore Mine is being worked with mechanized opencast mining
method with a combination of hydraulic excavator and dumper truck. Deep-hole
drilling and controlled blasting is being carried out only on hard formation. The mining
method is by conventional open pit system, the single pit is extended by stages in all
directions with increase in depth of the working pit. Pit layout has been planned in such
a way that it provides maximum recovery of ore without dilution. There is a maximum
of 12 benches that have been developed in the mine area which includes one production
bench. The strike direction of ore body is NNW-SSE with a steep dip 88° to 89° towards
NE. The benching has started from the top of the hill and carried downwards. The
direction of the bench is along the strike. The height of 9m and width of ~10m with haul
road width being more than 10 m with gradient maintained at 1in16. Pit slope angle is
maintained at 45° and bench slopes are 80°. It is also ensured that, there is clear view of
the road ahead for longer distance and sharp curves obstructing sight for less than 30 m
distance are totally avoided. The mine faces are kept sufficiently long so as to expose
different grades of ore and create an access for easy blending to ensure uniform grade
desired for buyers. Pit floors are designed wide enough for required maneuverability of
heavy duty mining machinery deployed for the purpose. Before onset of monsoon,
drains are made along toe of the mine faces to divert the surface run off and prevent the
erosion of benches. The method of mining so practiced over the period of years is found
to be most appropriate and till date no premature failures have occurred at this mine.
The movement of ore and waste is through 10/17 tonnes capacity tippers. Ore is being
transported by road upto to the own railway siding situated at Obalapuram village
which is ~12kms from the mine.
Further, Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of lease area of 55 ha and
adjoining Belagal Iron Ore Mine (BIOM) (ML 80) of 5.67 ha leases are having a single
common pit with common boundary working permission. The single pit is located in
the middle of the mine lease area running from NNW-SSE direction along the strike
direction of the ore body. There is a single reef deposit with an average width of 20m.
The benches have been formed with an average height of 9m and width of ~10m with
an inclination of 80°. Details of this combined mining pit covering both the leases are
Maximum pit dimension (m)= 900x300, Number of benches = 18 (Towards South- 12)
(Towards North- 6), Top RL (m) is 870, Bottom RL (m) is 756, maximum depth is 114m
along the hill slope.
The annual production limit of 0.064 million tonnes is fixed by CEC for the combined
leases. Since the ML area ML 80 is very small 5.67 ha, the entire production of 0.064
MTPA of iron ore fixed by CEC, is taken as the annual production targets for Vibhuti
Gudda Iron Ore Mine (VGIOM) (ML 2469) and all the present proposals of production
for Vibhuti Gudda Iron Ore Mine is made based on the above said rated capacity of
0.064 million tonnes per annum.
The blasting in the mine is done with deep hole blasting and is restricted to hard
formations only, constituting about 30% of the material excavated. Semi hard
formations grading into softer ones are excavated by the hydraulic excavators. For
handling of ore stocks at mine-sites, wheel loaders are provided to keep in tune with
quantum of handling. For maintaining waste disposal sites dozers are in use. The wastes
generated are transported by 10/16 tonnes capacity dumpers. The Iron ore is fed to the
crushing & screening plant and crushed material will be supplied to the local steel
plants. 10/16 tonner hired tipper trucks were utilized for transportation to the own
railway siding of Obulapuram located about 12 km. Iron ore produced is sold locally.
Presently entire generated ore will be lifted from the mine by buyers through e-auction
and it will be sold local steel plants and sponge iron plants.. Iron ore produced is sold
locally. Presently entire generated ore will be lifted from the mine by buyers through e-
auction and it will be sold locally.
Blasting in the ore zone is done by using high explosives such as cast booster slurry
explosive in combination with ANFO. Normally the slurry cast boosters form 0.30% of
the required charge. Since ANFO mixture is low density explosive, it will have a
heaving effect than explosion, thus reducing the noise level, fly rock ejection. This shall
be blasted using detonating fuse or with nonels in conjunction with MS delay
detonators. This will reduce ground vibrations and fly rock ejection. The pattern of drill
holes shall be arranged in maximum of two rows in a staged manner using a spacing of
3 m and a burden of 2.5 m. The material to be handled is 960 tonnes per day and out of
this only 30% i.e. about 300 tonnes of material is required to be blasted per day or 1800
tonnes per week. The spacing and burden of blast holes shall be 3 m X 2.5m and with
9m depth of holes and average bulk density as 2.5, yield per hole is about 168.5 tonnes.
Number of holes blasted per week =1800/168.5 = 11. With charge per hole as 40 kg,
explosive requirement for week is 440 kg. Vibhuti Gudda Iron Ores Mines which is
having the licensed magazine of following capacity.
Category of explosives Name & Description
Class 2 Nitrate Mixture – 438 Kgs
Class 6 div 1 Safety Fuse – 100000 Mts
Class 6 div 2 Detonating Fuse - 1200 Mts
Class 6 div 3 Detonators - 10000 Nos
Mining Pit is designed maintaining an average pit slope of 32°. Slopes are designed
based on conditions of the strata and structural attitudes of both hanging wall and
footwall formations. The pit slope and the dip direction are in same direction along the
footwall, and are opposite along hanging wall side. Final pit limit is accordingly
defined.
The overburden waste mainly consists of shale, phyllite, gabbro and BHQ. The waste
generated is presently along the Eastern slope of the mining lease of Vibhuti Gudda
Iron Ore Mine (VGIOM) (ML 2469). As this dumping area is exhausted, ICFRE in their
approved R&R plan has suggested future waste dumping in adjoining Belagal Iron Ore
Mine (BIOM) (ML 80) of 5.67 ha, being worked by same owner, having common
workings. The overall stripping ratio considered based on the latest scheme of mining
prepared by the lessee is 1:3.57.
Existing land use pattern is that it is occupied by Pits & quarries -25.00 ha, Area for
active & Inactive dump -17.85 ha, Area for roads - 1.48 ha, Area for infrastructures - 0.40
ha, Others including retaining wall -1.77 ha, Untouched area for future exploration &
mining - 8.50 ha, Total 55.00 ha.
Final pit limit is, so drawn on the basis of exhaustive exploration carried out till date,
will more or less remain as ultimate pit limit for mineable reserve of Vibhuti gudda iron
ore mine (VGIOM) (ML 2469). It is demarcated on the Geological plan and enclosed as
Plate No. 3 Tentative Final Pit Layout with bench RLs marked on the Conceptual
Mining plan is enclosed as Plate No. 4.
Deep hole drilling is done for 9m depth with Wagon drill of 110mm dia, for which air
compressor of 450 CFM is provided.. Semi hard over burden formations grading into
softer ones are handled with hydraulic excavators of capacity 1.1 cum, with 5 numbers.
Requisite numbers of hydraulic excavators are separately deployed for ore production
to serve dual purpose of excavation and loading. For leveling and maintenance of waste
dumps. wheel loaders are used of 1.7 cum capacity, 3 numbers. The total handling
capacity of the loading units is more than adequate. For hauling, proposed quantities of
ore and waste, the requirement is met with a fleet of 12 nos. of heavy duty dumpers
with each 17 tones Capacity. List of mining machinery deployed in the mine along with
their respective capacities, efficiencies, availability, rate of handling and the total
quantity which individual units can handle and other details are given below. Please
note that the list of machineries mentioned below is already procured for the rated
production of 0.275 million tonnes of iron ore. With the present reduced production of
0.064 million tonnes of iron ore only they are of more capacity than the requirement.
Environmental Protection
The expected air pollution (Mainly dust release), water pollution (only sediments), noise
pollution including the ground vibrations due to this proposed mining activity are
minimal as mitigation measures such as regular water spray along the transport roads,
development of wide green belts surrounding mining area and along the safety barriers,
proper maintenance of roads and the mining machinery & equipment as per
manufacture’ norms, erection of check dams, retaining walls, are erected. Seasonal
monitoring on environmental quality parameters on air, noise, water & soil qualities
shall be done by engaging M/s. Mineral Engineering Services, Bellary, the Lab
recognized by MoEF.
The maximum dust generated during, drilling, blasting, excavation, crusher &,
screening equipment, loading & transport of ore & waste shall be about 9.44 kg/hr The
Suspended Particulate Matter (SPM) within the ML area is lowest (249 µg/cum) at mine
working area and maximum at dumping point (320µg/cum). Small quantity of dust
generated will settle on the nearby land out side ML area. This protected by developing
wide green belt surrounding the ML area. 5.0 KLD of diesel shall be used for running of
mining machineries such as Excavators, dozers, dumpers, DG sets. Emissions are SO2 &
NOx. Maximum quantities of SO2 & NOx observed were 20 & 22 µgm/cum
respectively.
The noise is produced from operation of drilling, blasting operation of loaders, dozers,
excavators, crusher &, screening equipment and movement of dumpers/tippers. The
noise level varied from 42 to 82 dB(A) within the mine area. The nearest place of
religious importance is a Gavisiddeswara temple along with a natural spring is
located about 1.6 km southern direction. The distance being large there shall be no
impact of the mine in terms of fly rock ejection, noise and ground vibration.
The annual rainfall varies from 350 mm to 650 mm with an average rainfall of 574.9 mm.
The pit is not likely to be filled in case of cloud bursts. Land slides could not occur if
systematic bench system is followed. No record of earth quakes is existing in the area.
The zone falls in category II.
Entire lease area is under forestland. The vegetation occurring in the area belongs to
Southern Tropical throny/scrub forests consisting of Deciduous, low thorny trees and
xerophytes. In this type of forests canopy is more or less broken. According to the
classification the area falls under Deciduous climax forests and degradation group
Under this group the area can be grouped under Dry deciduous – Scrub forests.
Therefore the timber source is practically nil in this area. Since the ML area is almost
broken up after getting the approval from Forest Dept., there shall be no further
clearance of vegetation from the ML. The 7.5 m barrier surrounding the two mining
leases are well protected.
rainy season and none of them are perennial.
The lessee along with adjoining mine owners has constructed Retaining wall (within
lease area) size in m 415 x 2 x 1 , Retaining wall (outside lease area) size in m 82 x 1.5 x 1,
Check dam (outside) size in m 20 x 2 x 2, Gully plug - 4 (outside) size in m 60 x 1 x 1 and
Earthen bund (outside) size in m 380 x 20 x 15.
Allipura water reservoir which is the major drinking water source to Bellary is located
7km towards north direction from the lease area. On the Southern side of the mine lease
area, there is a natural spring that is found at Gavi Siddeshwara temple which is
approximately at 1.6 km distance from the mine lease area. Avinamodugu kere Tank is
located 7.5 km SW. Since these water resources are far off from the ML, there shall be no
adverse effect on them due to mining. Rain water collected & stored in the pit and
drawn from nearby bore well in the patta land of lessee of about 80 KLD is used for the
mines requirement.
As proposed in the Approved R&R Plan for the first 5 years, as furnished under Plate
No 5 Surface water management plan toe wall at base of the waste dump, Garland
drain, over the waste dump will be taken up as per the schedule. Dump terraces are
provided with concentric drain to regulate monsoon run-offs to the check dams and
settling ponds as given below
(vi) Raw material required along with estimated quantity, likely source, marketing
area of final product/s, Mode of transport of raw Material and Finished Product
The only raw material required is diesel oil @ 3KLD, which shall be transported by oil
tankers and stored within the ML.With the existing infrastructure facility, before the e-
auction in force, ore was transported by 10 tonner tipper trucks to the Stack yard
adjacent to the own railway siding at Obulapuram which covers a total distance of
about 12 km.
But presently no export of ore is permitted. Presently as the ore is lifted through e-
auction, buyers make their own arrangement for transporting the ore from the pit head
to their respective destination. Presently screened fines and ROM are lifted from the
mine through the e-auction and sold locally to the Steel/sponge iron Plants.
(vii) Resource optimization/ recycling and reuse envisaged in the project, if any,
should be briefly outlined.
Presently entire generated ore will be lifted from the mine by buyers through e-auction
hence, it will be sold locally. Depending up on the requirement, the buyers bid for the
produced ore in e-auction. As such specific grade is not mentioned by the buyers..
As the average grade of ore available are acceptable to the local buyers or buyers
abroad, it is not necessary to have provision of wet Beneficiation facility at the mine .
ROM is dry crushed and screened at mines site using mobile plant.
Mineral balance sheet :
R.O.M feed 200 tonnes
Out put.
+ 40 mm. 40 tonnes
+ 10 mm. -40mm 60 tonnes
-10 mm fines 100 tonnes
(viii) Availability of water its source, Energy/ power requirement and source should
be given
Rain water collected & stored in the pit and drawn from nearby bore well located in
patta land of the lessee of about 80 KLD is used for the mines requirement. Break-up of
quantity of water used for mining and allied activities are mentioned as below;
S.No Particulars Water consumption

LPD
1 For wet drilling 500
2 For dust suppression in mining area & 60,000
roads
3 For dust suppression in crusher 15,000
4 For human consumption 500
5 For afforestation 4000
Total 80000
No electric power is used for working the mine except for night lighting, which is
supplied by KSEB. The diesel oil requirement with the present production programme
is only 3 KLD. The diesel oil is available in the nearby town and supplied through
tanker.
(ix) Quantity of wastes to be generated (liquid and solid) and scheme for their
Management/disposal.
No liquid wastes are generated. The overburden waste mainly consists of shale, phyllite,
gabbro and BHQ. The waste generated is presently along the Eastern slope of the
mining lease of Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469). As this dumping
area is exhausted, ICFRE in their approved R&R plan has suggested future waste
dumping in adjoining Belagal Iron Ore Mine (BIOM) (ML 80) of 5.67 ha, being worked
by same owner, having common workings. The overall stripping ratio considered based
on the latest Mining Plan prepared by the lessee is 1:6.13.
Following are the range of chemical analysis of the waste as tabulated below;
There are two inactive dumps within the Vibhuti gudda mine lease area one lying on
south eastern portion of ML with dump top RL 835 m and bottom RL 785m. The height
is 50m with a quantity of 254214 cum covering 2.39 ha, within the ML area, with some
plantation. This has extended outside the ML with a quantity of 52294 cum, covering
0.43 ha. The second dump is located South Western side of the lease area, with top RL is
878m and bottom RL 815m. The height is 63m with a quantity of 22800 cum, covering
2.26 ha. There is one active dump within the mine lease area located on the North
Eastern side with a top and bottom RL of 780m and 598m, respectively. The dump
height and width is 181m and 1228m, with a quantity of 2333700 cum covering 12.2 ha,
within the Ml area. This dump is also extended outside the lease area with a quantity of
2394720 cum, covering 9.26 ha.
Additional solid waste dumping capacity available in the adjoining ML of Belagal Iron
Ore Mine (BIOM) (ML 80) of 5.67 ha of the same owner, being jointly worked is about
3.06 million tonnes. with a stripping ratio of about 3.57 and annual production of 0.064
million tonnes, the expected waste generation is 0.228 million tones and the above
capacity of waste dump can cater to about 13 years of production. The dumps shall be
raised in terraces each terrace is maintained at 8-12m with 12-15m berm. I t is
proposed to construct retaining walls at the foot of dumps to avoid wash off the
material due to rains After this the waste generated shall be backfilled into the worked
out portions of the pit, covering an area of 3.64 ha. Both the waste dumping area and
the backfilled area are concurrently afforested. I n the lease area and near plant area
about 1.5 million Tonnes of sub grade mineral stack is available which shall also be lifted
and marketed.
Waste generated at the mine is transported to surface dump located under ML 80 by

10/17 tonnes capacity dumpers. Dozer is continuously provided to level waste material
unloaded by dumpers and spread laterally in area earmarked. Continuous movement of
dumpers while unloading will consolidate the ground. Water is regularly sprinkled
over the surface dump and backfilling area to control the generation of airborne dust.
Thus with dozing and tipping, dump will get consolidated and get built up in stages.
While building up, dumps are properly graded and terraced with the height of each
terrace is maintained at 8-12m with 12-15m berm width, and provision of contour
drainage. Terracing is always accompanied with plantation for stabilization of terraced
slopes. Dump slopes are suitably protected from any environmental damages,
providing all the protective measures in stages as per the schedule in the approved R&R
Plan Plate No 5 Surface plan and same is mentioned in below. While preparing the
lease sketch by CEC, it was observed that the existing waste dumps have occupied
outside the ML area demarcated and for which the ICFRE has also proposed protective
measures under the R&R plan.
Department, Karnataka. The waste dump reclamation measures to be followed as per
the approved R&R plan is as follows:
(x) Schematic representations of the feasibility drawing which give information of
EIA purpose.
Location Plan is given in Plate 1, Lease Sketch is given in Plate No. 2, Geological plan is
given in Plate 3, Conceptual Plan is given in Plate 4 Surface Plan Plate 5.
4.Site Analysis
(i) Connectivity.
The mining lease is located under Village BELAGAL of BELLARY Taluk of BELLARY
District, Karnataka State. ML is located towards South West from Bellary town and is at
a distance of about 12 km and 2.50 km from the Bellary–Tumati Road. The nearest
Railway station is Bellary Cantonment Station at a distance of 18 km Bellary district,
Karnataka.
Location of the lease M.L. No. 2469 of Vibhuti gudda Minerals Pvt. Ltd. from the point
of accessibility, Taluk and District Head Quarter, and other infrastructure is shown on
Location Plan enclosed as Plate No. 1. The surface plan of the area demarcating the ML
boundary is furnished under Plate No 2.
(ii) Land Form, Land use and Land ownership.

Vibhuti Gudda Iron Ore Mine (VGIOM) (ML 2469) of M/s Vibhuti Gudda Mines Pvt.
Ltd. has a lease area of 55.00 ha in forest land situated at Survey No. 90(P) of Belagal
village in Bellary Reserved Forest. The mine is being worked for the past 59 years w.e.f.
07.04.1954 and therefore is almost being utilized

Others 21.94 Ha
Total 79.37 Ha
(iii) Topography (along with map).

The area of 10 km radius around the lease area (buffer zone) comprises of valleys
surrounded by rugged hills, marked by discrete, NW-SE trending ridges, separated by
flat or gently sloping land. The mine is about 12km from Bellary Town. A major part of
the hilly tract is under the reserved forest category. At present, the maximum and
minimum elevation in the lease area is 870 mRL and 732 mRL respectively.
rainy season and none of them are perennial.
(iv) Existing land use pattern (agriculture, non-agriculture, forest, water bodies
(including area under CRZ)), shortest distances from the periphery of the project to
periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water
bodies (distance from the HFL of the river), CRZ. In case of notified industrial area, a
copy of the Gazette notification should be given.
M/s. Vibuthi Gudda Iron Ore Mine with an area of 55 ha is situated at Survey No. 90 (P)
of Belagal Village in Bellary Reserved Forest.
The vegetation occurring in the area belongs to Southern tropical Tropical throny/scrub
forests consisting of Deciduous, low thorny trees and xerophytes. In this type of forests
canopy is more or less broken and the tree species are less than 10 m high.

Others 21.94 Ha
Total 79.37 Ha
There are no national park, wild life sanctuary, eco sensitive areas, perennial water
bodies or CRZ atleast within 10 km radius of the ML. Allipura water reservoir which is
the major drinking water source to Bellary is located 7km towards north direction from
the lease area. On the Southern side of the mine lease area, there is a natural spring that
is found at Gavi Siddeshwara temple which is approximately at 1.6 km distance from
the mine lease area.
(v)Existing Infrastructure,
The mine is being worked for the past 59 years i.e. 07.04.1954, therefore it has all
infrastructural feasibilities like proper approach road to the mine, power & telephone
connections, office & other statutory buildings as per Mine Act, workshop and
availability of proper skilled mine labour in the nearby villages The mine is situated
near the PWD road connecting Bellary to Tumati located 2.50 km from the ML. No
dwelling houses, public roads, important structures exist within 500 m of the lease
hold area. Bellary town which is at a distance of 12 Kms and has very well
developed infrastructure for communications, and is linked to major towns and
cities in the country by road and rail. Drinking water facility & all general safety
amenities are provided at mines. All the workers & supervisory staff are coming
from nearby villages & vehicles are provided for them to attend the regular duties
at Mines. The lessee has provided wireless, Canteen, Work shop, First aid station,
Vocational training center & Rest shelters near mine. Drinking water to the mine
and for dust suppression & plantation is supplied by tanker f r o m f o o t o f t h e
h i l l o u t side the lease area) where the lessee has made bore well in their own patta
land. The mine is being worked by fully mechanised open cast method.
(vi) Soil classification
The soil pH ranged from 6.9 to 7.5 indicating that the soil is generally neutral. The soil in
the study area is predominantly sandy clay type. The electrical conductivity of the soil
ranges from 410 to 660 micro MS/CM. The nitrogen content varied from 8.5 to
100mg/kg, potassium 2.5 to 19 mg/kg and phosphorous values ranged from 5.5 to 28.
(vii) Climatic data from secondary sources,

The area exhibits temperate climate. Bellary district is known for hot summer and very
dry weather for a major part of the year, and the temperature varies between 18°C and
44°C. Average daily maximum relative humidity is around 77% and Average daily
minimum relative humidity is around 27%. The annual rainfall varies from 350 mm to
650 mm with an average rainfall of 574.9 mm. The rainfall is mostly (60%) confined to
the period from June to September during southwest monsoon. October to November is
the months of retreating monsoon (24%), and another 16% of rainfall occurs as sporadic
in other months of the year. On an average, the district has 39 rainy days in a year. The
rainfall decreases from southwest to northeast monsoons. The predominant wind
direction is NE. Predominant wind speeds range 1.7 to 5.0 m/sec.
(viii) Social Infrastructure available

In the buffer zone of 10kms radius there exist 26 villages with a cumulative
population of 36318 as per 2001 census.
Further, due to the proposed mining activity, no significant adverse changes are
visualized in the traditional way of life of the people residing in the villages in the
buffer zone.
Further people residing in the nearby villages are to be benefited by the direct and
indirect employment opportunities created by the mining activities.
lessee will augment the socio-economic status of the villagers residing nearby.
Harmony among the people will improve as they come closer by arranging cultural
activities, safety weeks, environmental protection weeks etc. by the company.
Mining activity has contributed towards economic upliftment by creating job

opportunities in the region also by this production of iron ore , the country achieves the
revenue in terms of taxes on iron ore and exchequer revenue for the State in terms of
royalty etc. In FY11, Karnataka earned Rs 520 crore as royalty on 33 million tonnes of
ore produced while in FY12 it rose to Rs 730 crore on an output of 22 million tonnes.
5. Planning Brief
(i) Planning Concept (type of industries, facilities. transportation etc) Town and
Country Planning/Development authority Classification
This mine forms one of the active leases producing good quality iron ore suitable for
steel making. All the infrastructural facilities are in place for mining and transportation
of ore. Necessary permission to mine the area is there under F(C) Act, 1980 and MCDR,
1988 regulated by IBM. The area is part of the Reserved Forest.
(ii) Population Projection

There are no résidentiel houses within the ML area Important Buffer zone village
population as per 2001 censes –
Buffer zone details such as villages and population etc.,

Sl. No Name of the village Distance in KM Population Direction
1. Haraganadona 5.75 2028 NW
2. Janikunte 5.60 1200 N
3. Lambadi Tanda 4.20 150 NW
4. Allipur 9.25 4015 NE
5. Bandehatti 9.50 1010 NE
6. Aladahalli 8.25 450 NE
7. Belagallu 5.00 3975 NE
8. Belagallu Tanda 3.50 629 NE
9. Honnehalli 7.25 2465 NE
10. Honnehalli Tanda 4.80 293 E
11. Halakundi 8.50 3069 SE
12. Obulapuram 8.75 1525 SE
13. Dondinahirehalu Pete 10.00 4476 SE
14. Hirehal Siddapuram 5.25 1375 SE
15. Hirehal Siddapuram Tanda 4.50 280 SW
16. Malapanagudi 6.00 317 SW
17. Basapur 9.50 250 SW
18. Ramasagar 10.00 320 SW
19. Gundlahalli 8.50 250 SW
20. Metriki 9.00 3215 SW
21. Gangalapur 7.25 550 SW
22. Rampur 9.50 600 SW
23. Vittalapur 7.25 2250 SW
24. Avinamodugu 8.25 350 SW
25. Tumati 3.50 1145 W
26. Tumati Lambadi Tanda 2.75 131 NW
TOTAL 36318
Since the mine is under active mining operation since 1954 and presently the production
level is also reduced, there shall be no further inrush of population from out side area
into the above villages.
(iii) Land use planning (breakup along with green belt etc).
The approximate land use at conceptual stage is as given below:
Area for Mining (Under Plantation) -- 47.87Ha
Area for dump (under plantation) -- 27.22 Ha
Area for roads (under avenue plantation) -- 01.00 Ha
Area for infrastructures (statutory buildings) -- 00.20 Ha
Safety zone (7.5m) green barrier -- 03.08 Ha
Total -- 79.37 Ha.
The conceptual plan is enclosed under Plate No 4
(iv) Assessment of Infrastructure Demand (Physical & Social),

Environmental Clearance (EC) for the Vibhuti Gudda Iron Ore Mine (VGIOM) (ML
2469) involving a lease area of 55.00 Ha for production of iron ore of 0.275 MTPA under
the provisions of Environmental Impact Assessment Notification, 1994 was already
obtained. But CEC Under the approved R&R plan has fixed the capacity of the mine as
0.064 million tonnes per annum. Thus there shall be no further infrastructural demand
either physical or social for working this mine.
(v) Amenities/Facilities.
This being a working mine all amenities and facilities are available.
6. Proposed Infrastructure
(i) Industrial Area (Processing Area).
The total mining lease area granted by Govt. of Karnataka of 55 hectare is processing
area.
(ii) Residential Area (Non Processing Area).

There shall be no residential area.
(iii) Green Belt.
It is proposed to develop wide green belts surrounding the two ML areas in the 7.5 m
buffer zone covering 2.25 ha in three rows with a spacing of 2.5mx 2.5 m. In between the
tree species bush and shrub, verities shall be planted.
(iv) Social Infrastructure

People residing in the nearby villages are to be benefited by the direct and indirect
employment opportunities created by the mining activities.
lessee will augment the socio-economic status of the villagers residing nearby.
Harmony among the people will improve as they come closer by arranging cultural
activities, safety weeks, environmental protection weeks etc. by the company.
Mining activity has contributed towards economic upliftment by creating job

opportunities in the region.
(v) Connectivity (Traffic and Transportation Road/ Rail/Metro/Water ways etc)

With the existing infrastructure facility, before the e-auction in force ore was
transported by 10/16 tonner tipper trucks to the Stack yard adjacent to the own
Obulapuram railway siding which covers a total distance of about 12 km. Presently
export of ore is not permitted.
Presently as the ore is lifted through e-auction, buyers make their own arrangement for
transporting the ore from the pit head to their respective destination. Before e-auction,
as mentioned above 10/16 hired tipper trucks were utilized for transportation to the
railway siding.
Presently screened fines and ROM are lifted from the mine through the e-auction and
sold locally to the Steel/Sponge Iron Plants by road. Also low grade material mainly
ROM was sold to the local cement plants.
(vi) Drinking Water Management (Source & Supply of water)

Drinking water requirement of 5KLD to the mine is supplied by tanker f r o m f o o t
o f t h e h i l l ( o u t side the lease area) where the lessee has made bore well in their
own patta land
(vii) Sewerage System.

No sewage is generated from the mine.
(viii) Industrial Waste Management.

No industrial waste is generated from the mine
(ix) Solid Waste Management.

The overburden waste mainly consists of shale, phyllite, gabbro and BHQ. The waste
generated is presently along the Eastern slope of the mining lease of Vibhuti Gudda Iron
Ore Mine (VGIOM) (ML 2469). As this dumping area is exhausted, ICFRE in their
approved R&R plan has suggested future waste dumping in adjoining Belagal Iron Ore
Mine (BIOM) (ML 80) of 5.67 ha, being worked by same owner, having common
workings. The overall stripping ratio considered based on the latest mining plan
prepared by the lessee is 1:6.44.
There are two inactive dumps within the Vibhuti Gudda mine lease area one lying on
south eastern portion of ML with dump top RL 835 m and bottom RL 785m. The height
is 50m with a quantity of 254214 cum covering 2.39 ha, within the ML area, with some
plantation. This has extended outside the ML with a quantity of 52294 cum, covering
0.43 ha. The second dump is located South Western side of the lease area, with top RL is
878m and bottom RL 815m. The height is 63m with a quantity of 22800 cum, covering
2.26 ha. There is one active dump within the mine lease area located on the North
Eastern side with a top and bottom RL of 780m and 598m, respectively. The dump
height and width is 181m and 1228m, with a quantity of 2333700 cum covering 12.2 ha,
within the Ml area. This dump is also extended outside the lease area with a quantity of
2394720 cum, covering 9.26 ha.
Additional solid waste dumping capacity available in the adjoining ML of Belagal Iron
Ore Mine (BIOM) (ML 80) of 5.67 ha of the same owner, being jointly worked is
additional solid waste dumping capacity available in the adjoining ML of the same
owner, being jointly worked is about 22.34 million tonnes. with a stripping ratio of
about 1:6.13 and annual production of 0.064 million tonnes, the expected waste
generation is 1.96 million tones and the above capacity of waste dump can cater to about
10 years of production. The dumps shall be raised in terraces each terrace is
maintained at 9m with 10m berm width. I t is proposed to construct retaining walls at
the foot of dumps to avoid wash off the material due to rains After this the waste
generated shall be backfilled into the worked out portions of the pit, covering an area of
8.00 ha, after getting the permission from IBM. Both the waste dumping area and the
backfilled area are concurrently afforested. I n the lease area and near plant area
about1.5 million Tonnes of sub grade mineral stack is available which shall also be lifted
and marketed.
The dumps shall be raised in terraces, each terrace is maintained at 9m with 10m berm
width. I t is proposed to construct retaining walls at the foot of dumps to avoid wash
off the material due to rains After this the waste generated shall be backfilled into the
worked out portions of the pit, covering an area of 8.00 ha. Both the waste dumping
area and the backfilled area are concurrently afforested. I n the lease area and near
plant area about 1.5 million Tonnes of sub grade mineral stack is available which shall
also be lifted and marketed.
Waste generated at the mine is transported to surface dump located under ML 80 by

10/16 tonnes capacity dumpers. Dozer is continuously provided to level waste material
unloaded by dumpers and spread laterally in area earmarked. Continuous movement of
dumpers while unloading will consolidate the ground. Water is regularly sprinkled
over the surface dump and backfilling area to control the generation of airborne dust.
Thus with dozing and tipping, dump will get consolidated and get built up in stages.
While building up, dumps are properly graded and terraced with the height of each
terrace is maintained at 9m with 10m berm width, and provision of contour drainage.
Terracing is always accompanied with plantation for stabilization of terraced slopes.
Dump slopes are suitably protected from any environmental damages, providing all the
protective measures in stages as per the schedule in the approved R&R Plan Plate No 5
Surface water management plan and same is mentioned in below. While preparing the
lease sketch by CEC, it was observed that the existing waste dumps have occupied
outside the ML area demarcated and for which the ICFRE has also proposed protective
measures under the R&R plan.
Department, Karnataka. The waste dump reclamation measures to be followed as per
the approved R&R plan is as follows:
(x) Power Requirement & Supply / source.
No electric power is required for working of the mine as all the machinery are diesel
operated and DG sets are available.
7. Rehabilitation and Resettlement (R&R Plan).

(i) Policy to be adopted (Central/State) in respect of the project affected persons
including home oustees, land oustees and landless labour ( A brief outline to be
given)
No Rehabilitation or Resettlement is involved as it is a Govt. non-forest revenue land
and there are no human settlements or PAPs within the ML area which require
Rehabilitation and Resettlement
8. Project Schedule and cost Estimates

(i) Likely date of start of construction and likely date of completion ( Time schedule
for the project to be given).
The mine work starts as soon as EC for the mining lease is accorded and the FC is
extended. The total insitu ore reserves presently estimated is about 22 million tonnes
and with the present proposed rate of production fixed by CEC of 0.064 million tonnes,
the life of the mine shall be 574 years.
(ii) Estimated project cost and along with analysis in terms of economic viability of
the project
Estimated Cost Summary of Vibhuti Gudda Iron Ore Mine as per Approved R&R plan
ECONOMIC VIABILITY FOR MINING
Parameters:
1) Expected Mineable reserves : 22.34 Million tonnes of iron ore
2) Nature of ore : Haematite (45 to 66 % Fe)
3) Production : maximum 0.064 MTPA/ annum
4) Average Ore to waste ratio 1 : 6.4
A. Direct costs of Mining:
Sl. Particulars Expenditure Cost / Tonne Rs.
No
1 Exploration Future exploration Rs.200 lakhs 0.90
For 22.34 million tonnes of ore
2 Development Excavation Rs 25.00/t
at 1: 6.4 ratio Loading Rs 10.00/t
Transportation Rs. 10.00/t
Total 45/t X 6.4= 288.00
3 Production Excavation Rs. 25.00/ tonne
Loading Rs 10.00/ tonne
Transportation Rs 10.00/ tonne
Screening Rs. 10.00/tonne
Sub Total Rs. 55.00/tone 55.00
4 Infrastructure 15.00
5 Overheads including salaries & wages 40.00
6 Royalty, Area development fund & forest development 572.00
fund @ 26% sale value
7 Head office expenses 30.00
Sub Total 1000.90
B. Environmental Cost:
Sl. Particulars Expenditure Cost / tonne
No Rs
1 Environmental Monitoring Rs. 10.6 Lakhs
2 Air & water pollution
3 Green belt / Afforestation Rs. 8.00 Lakhs
4 Engineering construction
like retention walls Water
garlands
5 Reclamation works
Sub Total Rs. 18.6 lakhs for 0.64 lakhs tpa 29.06
C. Health & Safety :
No Rs.
1 Ambulance Rs.3.00 Lakhs
2 Doctor & staff Rs.2.00 ,,
3 Health Check up Rs.1.00 ,,
4 Medicines Rs.1.00 ,,
Rs.7.0 lakhs for 0.64 lakhs tpa 10.94
D. CSR Activities :
No Rs.
1 Education Rs.3.00 Lakhs
2 Water supply Rs.2.00 ,,
3 Sanitation Rs.1.00 ,,
4 Village Rs.1.00 ,,
Plantaion
5 Skill Rs.1.00 ,,
6 development &
Self help groups
Rs.8.0 lakhs for 0.64 lakhs tpa 12.50
E Capital cost Rs. 548.20 lakhs for 22.34 million tonnes Rs. 2.45
F R & D Cost Rs. 50 lakhs for 22.34 million tonnes Rs. 0.22
Total pit head cost per tonne Rs.
1056.07
Pit head realization for iron ore Rs. 2400.00

Profit / tonne Rs. 1343.93
Gross profit / annum for 0.64 lakh tonnes Rs. 86 million
Net profit after taxation @ 35% Rs. 55.90 million
The above shows that the proposed mining activity with production of 0.064 mtpa of
iron ore for this mine is remunerative after meeting direct mining costs, environmental
costs, cost on health & safety, socio economics, compensation for land, capital & R&D
costs.
9. Analysis of proposals (Final recommendations)

(i) Financial & social benefits with special emphasis on the benefits to the local
people including tribal population if any in the area.
India possesses haematite resources of 14,630 million tonnes of which 7,004 million
tonnes are reserves and 7,626 million tonnes are remaining resources, with Karnataka
state having 1676 million tones (11%) of reserves. It is an undeniable fact that steel plays
a pivotal role particularly in reference to the infrastructural sector. In India, the per
capita steel consumption of 55.00 kgs remains very low, compared to the international
average of 190 kgs and China’s average of 400 kgs. In this context, the production of 500
MT of steel is an imperative by 2050 and for this 640 MT of iron ore per annum is
required . India atlest will need 200 MT of Steel by 2020. This calls for wise use of our
limited resources and to strategically plan for the future to meet the demand when it
finally arrives. It is expected that the additional demand will be met through capacity
augmentation from mines in Karnataka and in other places and by opening of new
mines.
The expected production target of the Mild/Carbon Steel for the year 2011-12 was
projected as 69.89 million tones of steel. To meet the above projected tonnage of steel,
the requirements of various grades/ specifications of iron ore are estimated to be156
million tones. But this could not be achieved mainly because of the closure of mines in
in Karnataka & Goa. In Karnataka, while the Supreme Court has permitted resumption
of mining by Category A mines and few B class mines only 20 mines have restarted
mining in the last few days. Whereas the Monitoring Committee has not put on auction
this ore due to certain reasons. Secondly, the state-owned NMDC, which has been
allowed to produce one million tonnes per month in its Karnataka mines, is able to
produce only about 700,000 tonnes due to logistic bottlenecks. The FIMI expects the
production of iron ore in Karnataka at about 15 million tonnes during 2013-14 assuming
some more mines in Category A and B resume mining. This would include about 8
million tonnes from NMDC. This means that the steel industry would end up getting
only half of its requirements. With the result, all the steel mills operating in India might
have to import iron ore or else shut down their operations.
The SC has capped iron ore production from Karnataka at 30 mtpa. After the SC
intervention and recommendation that all ore be sold through e-auctions, steel plants in
Karnataka have complained of shortage in the raw material. JSW Steel company is
running its 10 mtpa plant in Karnataka at 80% capacity due to ore shortage.
Thus it is essential that iron ore mines in Karnataka has to renew working to meet the
domestic demand for which the working of this mine is fully justified.

Vibhuti Gudda Iron Ore Mine Pre Feasibility Report

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Vibhuti Gudda Iron Ore Mine Pre Feasibility Report

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PRE FEASIBILITY REPORT

PROJECT: VIBHUTI GUDDA IRON ORE MINE

BELAGAL VILLAGE, BELLARY TALUK, BELLARY DIST., KARNATAKA.

As per recommendation of competent authority, State Government has approved the

The lease wise details furnished below:

Further, this project is expected to yield a positive impact on the socio-economic

Area proposed at Conceptual Stage is:

Area for roads 1.00 Ha

Area for infrastructures 0.20 Ha

No Rehabilitation or Resettlement is involved as it is a forest land and there are no

2. Introduction of the project/ Background information

As per recommendation of competent authority, State Government has approved

The lease wise details furnished below:

(II) Brief description of nature of the project.

The present mining lease area of 79.37 Ha

Further, this project is expected to yield a positive impact on the socio-economic

IV. Demand & Supply Gap

At present about 20 mines are being operated in Bellary-Hospet sector including 2

(v) Imports vs. Indigenous production,

(vi) Export Possibility.

(vii) Domestic / export Markets

In Karnataka, while the Supreme Court has permitted resumption of mining by

According to Barclays Research, India’s iron ore production is likely to fall at a

(viii) Employment Generation (Direct and Indirect) due to the project.

(iv) Size or magnitude of operation.

Category Total Tonnage

R.O.M feed 200 tonnes

S.No Particulars Water consumption

Waste generated at the mine is transported to surface dump located under ML 80 by

(ii) Land Form, Land use and Land ownership.

Area for roads 1.48 Ha

Area for infrastructures 0.40 Ha

(iii) Topography (along with map).

Area for roads 1.48 Ha

Area for infrastructures 0.40 Ha

(vii) Climatic data from secondary sources,

(viii) Social Infrastructure available

Mining activity has contributed towards economic upliftment by creating job

(ii) Population Projection

Buffer zone details such as villages and population etc.,

(iv) Assessment of Infrastructure Demand (Physical & Social),

(ii) Residential Area (Non Processing Area).

(iv) Social Infrastructure

Mining activity has contributed towards economic upliftment by creating job

(v) Connectivity (Traffic and Transportation Road/ Rail/Metro/Water ways etc)

(vi) Drinking Water Management (Source & Supply of water)

(vii) Sewerage System.

(viii) Industrial Waste Management.

(ix) Solid Waste Management.

Waste generated at the mine is transported to surface dump located under ML 80 by

7. Rehabilitation and Resettlement (R&R Plan).

8. Project Schedule and cost Estimates

Pit head realization for iron ore Rs. 2400.00

9. Analysis of proposals (Final recommendations)

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