1

Draft

REPORT ON MINING/QUARRYING OPERATIONS IN KERALA WITH SPECIAL FOCUS ON SAFETY, ENVIRONMENTAL ISSUES,

M. SAND PRODUCTION AND BOOSTING OF REVENUE TO GOVERNMENT

Prepared by

The Technical Committee Constituted by Government of Kerala

The Technical Committee under the Chairmanship of Principal Secretary to Government, Industries Department.

December - 2009

2

REPORT ON MINING/QUARRYING OPERATIONS IN KERALA WITH SPECIAL FOCUS ON SAFETY, ENVIRONMENTAL ISSUES, M. SAND

PRODUCTION AND BOOSTING OF REVENUE TO GOVERNMENT

Prepared by The Technical Committee Constituted by Government of Kerala

3

Preface

Though the accidents due to mining and quarrying operations in the State of

Kerala is comparatively less, paramount importance need to be given for the safety of the

workers involved in mining and quarrying operations as well as the public residing

surrounding the mine or quarry. Thousands of Granite Building Stone and Laterite

Building Stone quarries are under operation in the State. Many workers from within the

State as well as migrated from other States have been working in this sector. More or less

uniform distribution of density of residential buildings, high level of agriculture land

utility practices, well connected roads and other transport networks in the state makes the

land availability for the quarry operation limited. At the same time demand for building

materials have increased manifold during the last few couple of years. To satisfy the

increasing demand, many small scale quarries are being opened in different parts of the

state. Since it is not a large scale industry in the state of Kerala and more over due to the

above mentioned reasons most of the quarries are not well equipped with required safety

measures. Mining and quarrying industry is one of the supporting sectors of construction

industry and is closely linked with a community of transportation sector. A larger section

of the society is directly or indirectly involved in this web of industrial sectors. The above

factors hinder the implementation of sudden drastic corrective measures in mining and

quarrying sector.

Accidents to the quarry workers, to the public and domestic animals are reported

from different parts of the State. A serious one among them was the accident occurred in

a granite building stone quarry at Kuzhoor near Mannoor in Kunnathunadu taluk of

Ernakulam District on 22.12.2007, which took away the life of five quarry workers

including two women. Followed by this incident Government have constituted a

Technical Committee to study the mining/quarrying operations of Kerala with special

focus on safety and environmental issues, ensuring availability of Manufactured Sand

(M-Sand) at a reasonable price and boosting of the revenue collection to the Government

exchequer.

4

Being a one time concentrated activity, mining of minerals has its own

environmental and ecological fallout. With a length of 580Km coastal belt, which covers

16.4% of the total geographical area of the State, 28% geographical coverage of forest

area, 44 rivers, 27 estuaries and seven Lagoons or Kayals 4 to 6 months period of

monsoon rainfall, more or less uniform density of population all over the State and

extensive wetland area makes the State ecologically fragile and sensitive to the quarry

and mining operations. The adverse consequences manifest in diverse ways like

deforestation, soil erosion, air and water pollution, landscape and bio-habitat disturbance

and changes in quality of life of local people. Hence mining and mineral processing

cannot be done with economic consideration alone. It is gratifying to note that because of

the growing public concern and legislative and institutional initiatives, it is increasingly

being realised that mining and mineral processing should be done with least disturbance

to the natural ecosystem.

The need of the hour is to evolve plans and management strategies for quarry and

mine safety and integrating environmental concern and protection with mining activities.

During the study, the Technical Committee has dealt with the topics with an order of

preference as safety, environment, mineral production and revenue to the exchequer. The

Committee has heard the complaints and grievances of quarry and mine operators of the

State. Due recommendations for ensuring safety and environmental protection, ensuring

availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the

revenue collection to the Government exchequer have been included in the report.

I do hope that this report prepared by the Technical Committee will provide a

basis for evolving policy guidelines for quarry and mine safety and environmental

protection, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price

and boosting of the revenue collection to the Government exchequer.

T. Balakrishnan, IAS. Chairman and Principal Secretary to Government, Industries Department.

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Aknowledgement

The Committee wishes to thank Sri.K.L.Krishnamoorthy, former Director of Mining and

Geology for convening the first two meetings of the Committee and sharing his valuable ideas for

formulating this report. The Committee also acknowledges the contributions of Kerala Quarry

and Metal Crusher Owners Associations during its study. The contributions of all Senior

Geologists and Geologist of the Department of Mining and Geology are also duly acknowledged.

Dr.A.N.Manoharan Assistant Geologist, Directorate of Mining and Geology also deserve

a special gratitude for rendering their efforts in the preparation of this report.

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Content No. Title Page. No. 1.0 Introduction 7 2.0 Technical Committee Meeting 8 3.0 Views of the Technical Committee on the

topics suggested by Government. 9

3.1 Safety aspects of mining/quarrying operation in the state.

9

3.2 Accidents in Quarries. 10 3.3 Nature of quarry accidents 10 3.3.1 Accidents to the workers involved in quarrying

operations. 11

3.3.2 Accidents to the public, animals etc.. due to falling into the active/abandoned mine/quarry pit.

11

3.4 Provisions to be incorporated while granting Quarrying Licences in future.

11

4.0 Environmental issues 12 5.0 Ensuring the availability Manufactured Sand. 14 6.0 Boosting of Revenue collection to the

Exchequer. 15

6.1 Major Minerals 16 6.2 Minor Minerals 18 6.2.1 Granite Dimension Stone 19 7.0 Representation of the Registered Metal

Crusher Unit Owners’ Association to the Technical Committee.

21

8.0 Recommendation

21-24

Appendix I GO.(Ms) No. 12/08/ID dt. 22-01-2008 II The list of participants of the Technical

Committee meeting

III Representation received from the Metal Crusher Unit Owners Association

IV Circular No. PCB/TAC/WP/236/2006 dt. 13-06-2007 by Kerala State Pollution Control Board

V Notification number G.O. (P) No.1/2008/ID dated 01-01-2008 Revised consolidated royalty for the metal crusher units for registration

VI Notification number G.O. (P) No.2/2008/ID dated 02-01-2008 New Consolidated Royalty Payment system (CRP system) for granite and laterite building stone

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REPORT ON MINING/QUARRYING OPERATIONS IN KERALA WIT H SPECIAL FOCUS ON SAFETY ENVIRONMENTAL ISSUES, M. SAND PRODUCTION AND BOOSTING OF REVENUE TO GOVERNMENT.

1.0. Introduction An accident occurred in a granite building stone quarry at Kuzhoor near Mannoor

in Kunnathunadu taluk of Ernakulam District on 22.12.2007, which took away the life of

five quarry workers including two women. Followed by this incident and after the

inspection of the affected quarry by a team of Geologists headed by Director of Mining

and Geology suggested Government to constitute a Technical Committee to study the

mining/quarrying operations of Kerala with special focus on safety and environmental

issues, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and

boosting of the revenue collection to the Government exchequer. As per the direction of

the Honourable Minister for Industries, the Technical Committee was constituted by the

Government of Kerala as per GO(Ms) No. 12/08/ID dt. 22-01-2008 under the

chairmanship of Principal Secretary to Government, Industries Department. The above

G.O is marked as Appendix I

The structure of the Technical Committee is as follows: 1. The Principal Secretary to Government, Industries Department - Chairman 2. The Director of Mine Safety, Ministry of Labour, - Member Govt. of India, Chennai or his nominee. 3. The Regional Controller of Mines, Indian Bureau of - Member Mines, Ministry of Mines, Govt. of India, Bangalore or his nominee. 4. The Joint Chief Controller of explosives, Ministry of Commerce - Member and Industry, Govt,. of India, Chennai or his nominee. 5. The Director of Geological Survey of India, Govt. of India - Member Kerala circle, Thiruvananthapuram. 6. The Labour Commissioner, Govt. of Kerala - Member 7. The chairman, State Pollution Control Board, - Member

8

Thiruvananthapuram or his nominee. 8. The Director, CESS, Thiruvananthapuram - Member 9. The Director of Mining and Geology, Thiruvananthapuram - Convener 2.0. Technical Committee Meetings The first meeting of the Technical Committee was convened by the Chairman, the

Principal Secretary to Government, Industries Department on 19.03.2008. The Chairman

of the Committee discussed with the members of the Technical Committee and came to

the conclusion that the period of lease can be fixed as five years and minimum area of

mining/quarrying operations should be one hectare to prevent the accident and to ensure

the safety of the people. The list of participants of the meeting is appended as

Appendix– II. Representation received from the Metal Crusher Unit Owners Association

was circulated among the members of Technical Committee for offering their remarks

and is appended as Appendix – III. The Kerala State Pollution Control Board’s circular

(No. PCB/PAC/WP/236/2006 dt. 13-06-2007) was also distributed to the members of the

Committee. The circular is appended as Appendix – IV.

The second meeting of the Technical Committee with representatives of All

Kerala Quarry Association, Registered Metal and Crusher Owners Association was held

on 28.07.2008 at Government Secretariat, Thiruvananthapuram. The meeting was chaired

by the Chairman, Technical Committee. Minutes of the meeting is appended as Appendix

–V. During the meeting copies of the draft report prepared by the Technical Committee,

which was submitted to Government earlier had been circulated among the members. In

that meeting Sri.B.P.Ahuja, Director, Mines Safety had suggested the quarry owners

might send 10 to 15 persons for training under a Mines Manager in the State. Director of

Mining and Geology had informed that Public Sector undertakings (PSUs) like Kerala

Minerals and Metals Ltd., Malabar Cements Ltd., Kerala Clays and Ceramics Product

Ltd. were having qualified Mines Managers and necessary arrangements would be made

to send persons engaged in quarry blasting operation for training in the above mentioned

PSUs. DMG informed that Government may be requested to render sanction for this

9

purpose. M/s.Malabar Cements Ltd. has been instructed to provide training to the persons

engaged in quarry operation by Government through the letter No.28930/A3/08/ID dated

22.10.2008.

The third meeting of the Technical Committee was convened on 23.05.2009 at

South Conference Hall, Government Secretariat, Thiruvananthapuram. The meeting was

chaired by the Chairman of the Committee. In the meeting the draft report has been

reviewed in the light of the problems pointed out in the representation of the Registered

Metal Crusher Units (RMCU) Owners Association and the recommendations put forward

by the Committee. Elaborate discussion held on the third point of the representation of

RMCU Owners Association ie. Government of India have prescribed 500m as danger

zone for blasting. Chairman was of the opinion that there is no compromise on the safety

measures regarding the blasting operation in quarries of the State. DMG and other

Committee members informed that as far as the Kerala scenario is concerned keeping

500m as danger zone is very difficult. The existing density of residential and other

building is so high that if we keep 500m radius buffer zone for buildings and other

structures there won’t be any place left out for quarry operation. After a detailed

discussion, by considering the density of residential and other buildings and structures in

the State 100m radial distance could be kept as danger zone for blasting. But later the

office of the Chief Controller of Explosives and Directorate General of Mines Safety,

Ministry of Labour informed that under Regulation 164 of Metaliferous Mines

Regulations of MMR,1961, an area of ground falling within a radius of 300mtrs from the

place of firing shall be treated as danger zone.

3.0. Views of the Technical Committee on the topics suggested by Government. 3.1 Safety aspects of mining/quarrying operation in the State. Kerala is endowed with limited mineral resources and hence the number of mines

(major minerals) are limited and they are mainly china clay, mineral sand,

bauxite/aluminous laterite, limestone, limeshell and quartz/silica sand etc.. These

minerals are won by open cast mining to an average depth level of up to 50mts,

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especially in china clay and limestone mines. Silica Sand/Quartz, mineral sand are

usually extracted by scooping and making small pits/trenches and the mining doesn't

involve any threat to life and environment. No major accidents have been reported from

these mining operations in the State.

Among the minor mineral quarries, granite building stones and laterites are the

most abundant in the state and quarrying activities are mostly carried out in the mid land

area of the state. The quarrying activities for the above minerals are being carried out far

before the formation of the State of Kerala for construction of railways, bridges, roads,

sea wall and other public and private buildings and even from Palaeolithic age. The

increase in population and due to the big boom in construction industry in recent years,

there is a high demand of minerals especially for granite/laterite building stone,

construction grade sand and brick/tile clay. But the spatial extension of mineral deposits

are being reduced day by day due to fast urbanisation and formation of new roads.

3.2 Accidents in Quarries. In Kerala accidents in mining sector is very less when compared to the other parts

of the Country. Two or three cases are being reported annually. The intensity of

quarry/mining accidents when compared with road accidents, natural calamities,

epidemics and deaths associated with riots and violence are negligible but still safety of

mine/quarry needs to be given prime importance.

3.3. Nature of quarry accidents Quarry accidents can be grouped into two main categories.

1. Accidents to the workers involved in quarrying operations.

2. Accidents to the public, animals etc.. due to falling into the active or abandoned

mine/quarry pits.

11

3.3.1. Accidents to the workers involved in quarrying operations.

Accidents to the quarry workers are more when compared to the accidents to the

public or animals. The common accidents noticed in quarries are associated with

following aspects:

1. the blasting operations using explosive materials. 2. sliding or sub- level caving of the rock body or overburden.

3. Sliding of unscientifically dumped overburden, soil, rigolith etc..

4. loading and unloading of quarried materials.

5. operation of machineries/tools used at the time of quarrying.

3.3.2. Accidents to the public, animals etc. due to falling into the Active or abandoned mine/quarry pits. During the monsoon season most of the abandoned and active quarry/mine pits

are filled with rain water and if the outer boundary of the quarry or mine pit is not

demarcated or properly fenced, the accidents due to falling into pit may occur, resulting

loss of life.

During the time of blasting operations, rock pieces/splinter may fly to nearby

areas and life of human or animals in surrounding area of the quarry may be lost. To

some extent , crops of nearby areas may also be affected.

Unscientific exploitation, large scale extraction and lack of proper quarry

structure maintenance, unscientific blasting operation, quarrying in smaller area, and

grant of quarrying permits for a shorter periods etc.. are the major aspects that affect the

safety of quarries.

3.4. Provisions to be incorporated while granting Quarrying Licences in future.

1. The minimum period of quarrying licence granted should be of five years. 2. Minimum area of grant should be one hectare considering the safety aspects of quarry.

12

3. For systematic quarrying, a quarrying plan prepared by a RQP may be insisted. 4. Amendments in Panchayath Act to the effect that for the construction of new

building, permission should be granted after obtaining consent of the landowner and quarry operator in stamp paper worth Rs.50 each to the effect that they have no objection in granting licence for the construction of house with in a radius of 300m of the quarry.

5. The mineral bearing area should be notified to avoid other activities on the particular land.

6. Fencing of the quarry should be strictly enforced.

7. Insurance coverage to the labourers should be made compulsory.

8. Wearing uniform cloths for the labourers shall be made compulsory.

9. On completion of the quarrying work, the quarry should be properly secured

from accidents, or reclaimed or used for some other developmental purposes. A bank guarantee as suggested in the Mineral Concession and Development Rules 1988 should be made mandatory.

10. Health insurance should be introduced to the workers.

11. Blast set by labourers precariously by hanging on ropes from the wall of the

quarry should be banned and proper safety measures should be adopted.

12. Siren should be sounded before the blasts, even though mandatory, but has to be ensured that every quarry has this facility.

13. A sign of red flag should shown before the blast.

14. The quarry/mine should be brought under the preview of the Industrial

Protection Act

15. Adequate health protection measures like dust masks, gloves, ear flux, helmet and gum boots etc. for workers should be made compulsory.

4. Environmental issues

The mining activity without the destruction of environment and ecological

imbalance are not practicable. To sustain economy of the country extraction of natural

wealth and technology to exploit the mineral resources with modern tools are inevitable

and there is legislation to control the degradation of environment. The opening of mining

13

industry provides job opportunity for many people including the local tribes which in turn

develop the area and the State economy also flourishes. Gain in economy and loss in

ecological balance are to be weighed with positive attitude for betterment of the State.

Rivers, Forests, Minerals and such other resources constitute a nation’s natural

wealth. These resources are not to be frittered away and exhausted by any one generation.

Every generation followed by succeeding generation need to develop and conserve the

natural resources of the nation in the best possible way. It is in the interest of humankind

the Parliament of Indian Union has declared that it is expedient in the public interest; the

union should take under the Control of regulation and development of minerals and

enacted the Mines and Minerals (Development & Regulation) Act 1957.

Section 15(1) Mines and Minerals (Development and Regulation) Act has

empowered the State Government to frame rules in respect of minor minerals for

regulating the grant of quarrying leases or other mineral concessions and Section23c has

delegated the power to make rules for preventing illegal mining, transportation and

storage of minerals. Kerala Minor Mineral concession Rules 1967 has been framed by

the State Government as per Section 15(1) of Mines and Minerals (Development and

Regulation) Act 1957 for regulation of minor minerals like granite building stone,

limeshell, sea shel, laterite, Tile/Brick clay and ordinary sand used for construction

purposes etc.

The state is physiographically divided into Coastal (low) land, Midland and High

land and major part of the geographical area has come under midland and high land. Most

of the mineral bearing area including ordinary earth is associated with the above said two

land forms. As per the specifications of the Ministry of Environment and Forest (MoEF)

EIA studies are to be done in the case of Major Mineral for areas above 5 hectares and

Environmental clearance should be received from MoEF for commencing mining

operations. Mining operation and issues related to the environment and ecology need to

be handled very delicately. More awareness programmes need to be conducted to the

public and the miners with regard to the issues of environmental aspect and the

14

sustainable mining activity in the state. Stipulations of the Pollution Control Board

should be scrupulously followed along with other Act and Rules.

5. Ensuring the availability Manufactured Sand. Manufactured Sand

Manufactured sand has caught the attention of the construction industry for its

quality and the minimum damage it causes to nature. As the construction industry is in a

constant state of expansion in these days, a few alternatives for river sand have come up

for the industry. One among them is the manufactured sand or M-Sand, and is found to be

suitable one to replace river sand. Once the M-Sand becomes more popular in the

construction industry, the demand for river sand and illegal sand-mining would

considerably come down.

There was uncertainty about using M-Sand for construction. In fact, more options

are being probed so that the rivers would have a chance to be saved from illegal sand-

mining. It shall take some time to convince the builders on the quality of the said sand.

Once the structural engineers approved the application of M-Sand in construction, no one

will have any second thought to use it.

Availability of sand near the construction site is the most important requirement

of the industry which otherwise escalate costs. While M-Sand holds the promise of

replacing river sand in the construction industry, there are issues of air pollution

associated with it and availability of granite resource for the production of granite metal.

The quarry dust generated as a waste product can be disposed of as landfill. The quality

of sand is of great concern to the industry. If the crusher units do not give good quality

sand, more water will be required to get the right concrete mix which will in turn affect

the strength of the concrete. While M-Sand is considered likely to be replaced for the

river sand, the major hurdle seems to be the high capital investment in the project besides

getting licence from Government. At present, the M-Sand meets only about 10 per cent of

the demand. M/s. POABSONS, a Thiruvalla-based company, which have a quarry at

Angamaly and Thiruvananthapuram, produce M-Sand.

15

Associated with the existing crusher units M-Sand production unit can be

promoted by utilising the waste granite metals of the crusher units, and waste generated

from quarries for M Sand productions.

6.0. Boosting of Revenue collection to the Exchequer.

In legal parlance, royalty means payment made to the owner of certain types of

rights by those who are permitted by the owners to exercise such rights. Levy of royalty

on minerals is a universal concept. The rational for royalty is that it is a payment to

mineral right holder from mineral producer in consideration for the extraction of valuable

and non-renewable natural resources. Royalty forms a vital part of a physical regime and

important means of revenue for the States. There are various types of royalty such as unit

based royalty, ad valorem based royalty and royalty as a share of profit.

Section 15 (1) of the Mines and Mineral (Development and Regulation) Act 1957

empowers the State Government to make rules for regulating the grant of quarrying lease

in respect of Minor minerals and purposes connected therewith and it includes the power

to make rules for fixing rates of royalty in respect of minor minerals. The power

conferred in the above Act under Sub-section (3) of Section 9 is controlled by the proviso

thereto. The relevant part of the proviso is found in clause (b) of the said proviso which

prohibits the enhancement of the rate of royalty in respect of any mineral more than once

during the period of three years. The State Government is not empowered to realise the

royalty at the rate higher than those chargeable under Section 9 (1) of the second

schedule for Major minerals. On a plain construction of proviso to Section 9 (3) the

enhancement in the rate of royalty can only be made once during any period of three

years since the rate of royalty has been enhanced once, the State Government cannot alter

the rates or abolish the grades at different kinds of grades before the expiry of three years

period. During the period, there can be no enhancement or abolition of the grades and

prescription of the rates of superior royalty.

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6.1. Major Minerals A comparison of royalty revision for major minerals by Government of India as

per the notification No.G.S.R 677 (E) date 14-10-2004 and Notification G.S.R. 574(E)

13.08.2009 are given as follows:

Mineral Royalty rate as per

notification No.G.S.R 677 (E) date 14-10-2004.

Revised royalty rate as per notification No.G.S.R 574 (E) date 13-08-2009.

Bauxite and Laterite 20% of sale price on ad valorem basis for those despatched for use other than Alumina or Aluminium metal extraction and for export.

(a) Zero point five zero percent of London Metal Exchange Aluminium metal price chargeable on the contained aluminium metal in ore produced for those despatched for use in alumina and aluminium metal extraction.

(b) Twenty five percent of sale price on ad valorem basis for those despatched for use other than alumina and aluminium metal extraction and for export.

Brown Ilmenite, Leucoxene, Ilmenite, Rutile, and Zircon

2% of sale price on ad valorem basis

Two percent of sale price on ad valorem basis.

China Clay/Kaolin (including ball clay, White shale and White Clay)

(a) Crude 23 Rupees per tonne Eight percent of sale price on ad valorem basis.

(b) Processed (including washed)

85 Rupees per tonne Ten percent of sale price on ad valorem basis.

Graphite with <40% Fixed Carbon

50 Rupees per tonne Twelve percent of sale price on ad valorem basis.

Iron ore <62% Fe content 11 Rupees per tonne Iron ore: Lumps fine and concentrates all grades. Ten percent of sale price on ad valorem basis.

17

Concentrates prepared by beneficiation and ore concentration of low grade ore containing 40% Fe or less

4 Rupees per tonne

Lime stone (a) L.D. Grade

(<1.5% Silica content)

55 rupees per tonne Seventy two rupees per tonne.

(b) Other 45 Rupees per tonne Sixty three rupees per tonne.

Lime Shell 45 Rupees per tonne Sixty three rupees per tonne.

Monazite 125 Rupees per tonne 125 rupees per tonne.

Quartz/Silica Sand/Moulding sand and Quartzite

20 Rupees per tonne Quartz: Fifteen percent of sale price on ad valorem basis. Silica Sand, Moulding sand and Quartzite : Eight percent of sale price on ad valorem basis.

The revenue generated from the major minerals as royalty for the last six years are as

follows:

Year Revenue Collected Rs.

2003-04 4,46,51,539 2004-05 6,46,97,896 2005-06 7,33,48,437 2006-07 6,54,24,712 2007-08 7,04,20,961 2008-09 7,59,26,174

18

Revenue Collection from Major Minerals for the last six years

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Year

Rev

enu

e C

oll

ecti

on

in

Rs.

6.2 Minor Minerals As per section 15 (1A) (g) of MM(D&R) Act 1957the State Government is

empowered for fixing and collection of rent, royalty, fees, dead rent, fine, fees, or other

charges and the time within which and the manner in which these shall be payable. As

such, the State Government has issued notification fixing royalty for various minor

mineral with effect from 01-04-1997 vide No G.O(P) 63/97/ID dt. 10-4-97. The quarry

operators are alleging that the royalty is too high and but the rate is fixed a decade ago.

The State Government is empowered to make revision of royalty only every three years

as per the MM(D&R) Act 1957.

As per G.O. (P) No.1/2008/ID dated 01-01-2008 Government have revised the

consolidated royalty for the registered metal crusher units for registration with effect

from first day of April 2007. A copy is enclosed as Appendix- VI.

Since the existing rules are inconvenience to the public and implementing

authority and in order to deal the Minor mineral concessions in a simple easy and

transparent manner, the State Government has amended Kerala Minor Mineral

Concession Rules 1967 as per notification No. G.O.(P) 2/2008/ID dated 02.01.2008 by

introducing Consolidated Royalty Payment System (CRP System)for quarrying of

granite/laterite building stone. A copy is enclosed as Appendix VII.

19

The revenue generated from the minor minerals as royalty for the last six year are

as follows:

Year Revenue Collected Rs.

2003-04 139480327 2004-05 137730315 2005-06 162674348 2006-07 199258251 2007-08 240312854 2008-09 279005659

Revenue collection from Minor Minerals for the last six years

0

50000000

100000000

150000000

200000000

250000000

300000000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Year

Rev

enu

e co

llec

tio

n i

n R

s.

6.2.1. Granite Dimension Stone Granite Dimension Stone industry in Kerala faces a set back due to the higher

royalty rate prevailing in Kerala compared to other neighbouring States. In the State

there are only 11 operating quarries of Granite Dimension Stone out of 100 and odd

leases granted since 1992 onwards. The operating quarries are predominantly green and

white varieties and have good market but at present there are no takers because of higher

production cost and low sale value. Chinese are dumping granite finished products in the

world market at cheaper rate and they supply slabs and tiles into global markets for a

comparatively cheaper price because the rough blocks are produced/procured at a very

20

lower cost in China. This has affected the Indian export market also. Kerala has

different varieties of marketable granites but the production cost in the state is very high

compared to the other states. The quarries are operated with the expensive diamond wire

saw cuttings methods which safe guard the environment. The royalty levied is higher in

Kerala, which has been fixed in the year 1997.

A comparative statement of royalty prevailing in Kerala, Karnataka, Tamil Nadu

and Andhra Pradesh are furnished below:

Kerala Rs. 4000/- per CBM for all varieties. Tamil Nadu 1. Rs. 1500/- for coloured granite per CBM

2. Rs. 2500/- for Black Granite per CBM Karnataka 1. Rs. 600/- per CBM for grey an white granite

2. Rs. 2000/- per CBM for Black granite from Mysore District.

3. Rsw. 1500/- per CBM for Brick granite from all other Districts

4. Rs. 1000/- per CBM for other varieties of dykes 5. Rs. 2000/- per CBM for pink and red granites 6. Rs. 1500/- per CBM for Sira grey

Andhra Pradesh 1. Rs. 2000/- per CBM for premium material above 70 cm.

2. Rs. 1000/- per CBM for premium material for 30 to 70 cm

3. Rs. 500/- per CBM for less than 30 cm 4. Rs. 1500/- for good grade above 70 cm 5. Rs. 750/- for good grade for 30 – 70 cm.

It is imperative that adequate encouragement to the intending entrepreneurs in the

trade is required. This could be effected only by making the field investor friendly and

enabling Dimension Stone granite products to compete in the international market. This

might result in revival of a number of defunct quarries and setting up of cutting and

polishing units in the State which in turn generate considerable employment opportunities

to the rural folk of the State.

The amount of waste rock and rejected blocks generated in the process of

production of Dimension Stone is more than 50 % which could be made for gainful use

for making small sized tiles.

21

7.0. Representation of the Registered Metal Crusher Unit Owners’ Association to the Technical Committee. The Registered Metal Crusher Unit Owners Association had submitted a

representation to the Technical Committee for consideration of their demands. The main

issues narrated in the representation are as follows:

1. Non-availability of qualified blasters. 2. Non-availability of qualified mine mates. 3. Government of India have prescribed 500m as danger zone for blasting. 4. Short period of quarrying lease. 5. Sound and dust vibration limits. 6. Imposing arbitrary conditions by the Local Bodies like Panchayaths. 7. Charging of bulk ANFO may be permitted in holes upto 50mm diameter. 7. Detonation of ANFO by detonator.

The convener of the Technical Committee had circulated a copy of the

representation to all members of Technical Committee for their valuable suggestions.

Detailed deliberation was held on issues raised by the All Kerala Quarry and Crushers

Association in the meeting convened on 28.07.2008. Now, Government have instructed

M/s.Malabar Cements Ltd. to arrange training programme to 10 to 15 quarry workers in a

phased manner who are nominated by Quarry/Crusher Associations. After the training,

these persons can approach the DGMS, Nagpur for issuance of Blasters’ certificate.

8.0 Recommendation

Based on the detailed discussions and deliberations with the representatives of

Associations the following suggestions are put forward by the Technical Committee to

Government for consideration.

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1. The extent of grant of quarrying lease should have a minimum area of one hectare for the new applications.

2. The period of grant of lease should be limited to minimum of five years.

3. A copy of all quarry/mining lease issued by the DMG should be marked to the

Director of Mine Safety, Chennai.

4. Implementation of the Mine Act is the primary duty of mine owners. Mines Act should be strictly followed by Mine Owners.

5. Comprehensive insurance coverage to all the workers and third party insurance

also to be assured. This condition has to be satisfied before the execution of the Quarrying Lease.

6. Passport size photograph of the applicant should be affixed in the application;

grant order and grant register to avoid malpractices.

7. Overburden should be cleared before commencing the mining/quarrying operation.

8. Removed overburden should be safely dumped by keeping required distance from

the quarry pit as per MCDR.

9. Proper green belt should be insisted around the quarry area in order to avoid the flying splinters.

10. Proper slope/benches should be ensured for safety of quarry.

11. Fencing/retaining wall should be insisted surrounding the lease boundary.

12. Display of sign board indicating the permit details and explosives used, name of

the permit holder and quantity permitted to extract, etc.. in both Malayalam and English languages.

13. A Sign board indicating the quarry/mine with in distance of 100m of the quarry

site along the roads leading to the quarry should be installed.

14. Quarry plan including Environmental Management Plan in tune with the mining plan should be insisted along with the application in the case of application for Quarrying Lease.

15. Panchayath Act shall be amended in such a way that when a new building is to be

constructed within 300 meters of the existing quarry a consent of the landowner and quarry operator in stamp paper worth Rs.50 each to the effect that they have

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no objection in granting licence for the construction of house with in a radius of 300m of the quarry.

16. Areas of cluster quarries have to be considered as Exclusive Quarry Zone

providing with all required facilities considering the importance of this field in the developmental activities of the state. Considering the high density of population, environmental issues, safety measures and the developmental activities of the State, separate guidelines regulations and infrastructure facilities may be developed for the Exclusive Quarry Zone. Area suitable to develop such zones needs to be identified.

17. On completion of the quarrying activity, quarry pits should be properly secured

from accidents or reclamation should be insisted by obtaining bank guarantee as suggested in the Mineral Conservation and Development Rules 1988 after the excavations are completed or the site may be used for rainwater harvesting with protective barriers or any other suitable approved purpose.

18. Siren and red signals should be insisted before blasting.

19. Adequate health protection measures like dust mask, glows, ear flux and first aid facility should be ensured. Identity Card for workers and records in this regard should be made mandatory. 20. M-sand production can be promoted by utilising the waste granite rubbles and

metals and overburden of the quarry and crusher unit. In view of the shortage of the river sand and the restrictions imposed on river sand mining and very high demand in the field of construction industry, M-sand production may be lifted out from the negative list subject to all conditions.

21. Transporting of construction grade sand from other states should be promoted and

a committee may be constituted to study the same. Removal of sand from the rivers has become a major environmental issue in the State. At the same time the construction industry that generates tremendous employment opportunities requires large quantity of construction grade sand. In order to ensure the availability good quality sand at reasonable price we may have to import sand from other States. To make this proposal financially viable a professional study may be conducted. The study will also include how best we can save the river ecosystem by identifying other alternate sources of construction grade sand. The study may include the methods for protection of river banks of the State. A request may be sent to Geological Survey of India (Marine Wing) to study the offshore sand availability for construction purpose.

22. Since the royalty levied for the major mineral by Central Government is very low

compared to its value the matter of revision of royalty need to be taken up with the Central Government.

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23. Health Insurance schemes, uniforms, helmet and shoes etc. should be insisted for the workers employed in the quarry.

24. The use of Ordinary Detonators with safety fuse or electrical detonators depends

on blasting requirements at the site and shall be left to the qualified blaster as to which mode of blasting is suitable. The use of safety fuse may be allowed as explosive Rules do permit both Ordinary Detonators with Safety Fuse and Electrical Detonators for blasting and Safety Fuse is extensively used for quarry operations in rest of the country as well. Considering the non-availability of required safety distances as well as qualified blastmen duly experienced, it is desirable to restrict the bore size of the holes to 32-40mm diameter unless otherwise permitted in writing by Director of Mines Safety for using higher diameter bore holes.

25. Environmental aspects such as sound level, suspended particulate matter,

respirable suspended particulate matter etc. should be maintained as per the standards specified by the Kerala State Pollution Control Board.

Government may consider the above suggestions and recommendations and make appropriate policies and amendment in the Rules for quarry and mine safety and environmental protection, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the revenue collection to the Government exchequer.