Pre-Feasibility Report

Proposed Quartz Mine of Sri. N. Gopala Krishna Pre-Feasibility Report

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1.0 EXECUTIVE SUMMARY

1.1 Introduction

The proposed mining lease area of Sri. N. Gopala Krishna is located at Sy. 195,197 & 198 of

Chowlapally Village, Farooqnagar Cheruvu Mandal, Mahaboobnagar District,

Andhra Pradesh in an extent of 3.682 ha. The Govt. of Telangana have proposed to

grant the Mining Lease for Quartz for 20 years (Govt. of Telangana, Industries and

Commerce (M.II) Department Memo No. 2349/M.II(1)/2014-1 dated 29.11.2014).

Mining plan was approved by Department of Mines & Geology vide letter no. 855/MP-

MBNR/2015, dated 25-03-2015.

The proposed area is not fit for agriculture and technical report from Department of

Mines and Geology indicate that the subject area has granite deposits. The salient

features of the project are given Table 1.1.

Table 1.1

Salient features of the project

Project name Proposed Quartz mine of Sri. N. Gopala Krishna

Mining Lease Area 3.682 ha

Location of mine

Sy. No: 195,197 & 198, Chowlapally Village Farooqnagar Mandal, Mahaboobnagar District, Andhra Pradesh.

Minerals of mine Quartz Mining

Proposed production of mine 53554 tones/Annum (Maximum production of 5 years)

Method of mining Opencast Manual method

Drilling/Blasting Drilling with jack hammer and blasting with small dia

slurry based explosives

No of working days 250 days

Water demand 10.0 KLD

Sources of water Water will be supplied from water tankers from nearby

villages

Man power Direct Employment- 34

Indirect Employment-4

Solid Waste 1370 m3 of waste will be generated during planned five

years


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Nearest railway station Shadnagar railway station 7.6 km due East from the mine lease

Nearest airport Rajeevgandhi International Airport Hyderabad is 33 km

due NE from the mine lease area

Project Cost Rs. 40 lakhs

2.0 INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION

2.1 Identification of Project and Project Proponent

The proposed project area is found to have good deposits of Quartz. The Quartz from

this area will be sold to the Ferro Alloy Industries, Foundries, Ceramics and to Glass

Industries located in and around Andhra Pradesh & Telangana.

Sri. N. Gopala Krishna is the Proprietor of the proposed project. He had significant

experience in Quartz mining.

2.2 Brief Information about the Project

The mining lease area of 3.682 ha. is located in Non forest barren Own Land. Open cast

semi manual mining is followed and it has been proposed to produce approximately

53554 tonnes/annum of Quartz and Feldspar 2983.59 tonnes/annum. The nearest

habitation, Chowlapally village is located at a distance of 0.6km due South west from

lease area.

2.3 Need for the Project and Its Importance to the Country or Region

Quartz is the most abundant and widely distributed mineral found at Earth’s surface. It

is present and plentiful in all parts of the world. It occurs at all temperatures and

abundant in igneous, metamorphic and sedimentary rocks. It is highly resistant to both

mechanical and chemical weathering. This durability makes it the dominant mineral of

mountaintops and the primary constituent of beach, river and desert sand. Quartz is

ubiquitous, plentiful and durable.


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The demand for Quartz increased due to rapid industrialization and growth. Quartz is

used in FerroAlloy Industry within and outside A.P & Telangana.

As per EIA notification 2006 the project falls under Category- B, the proponent is

submitting the proposal to get Clearance for production capacity of 53554 tonnes/

annum of Quartz and Feldspar: 2983.59 tones per annum from SEAC, SEIAA, and

Telangana for the purpose of grant of quarry lease.

2.4 Demands-Supply Gap

The demand for quartz has been steadily increasing over the years to the

requirement of ferro-silicon, silica refractories, glass and for moulding and casting

purposes. The requirements of these products except glass are linked directly with

iron & steel industry including alloy steel production. Further, setting up foundries

and enhancing their capacities are also linked with metallurgical industry. It is

reported that glass industry is expected to grow by 10% every year due to rapid rise

in infrastructural activities in the country. At present the domestic market for quartz

crystal components of the annual demand is about 13 ~ 1.6 billion, annual growth

rate of nearly 20%.

2.5 Domestic/ Export Markets

The Quartz of this area will be sold to the Ferro Alloy Industries, Foundries,

Ceramics and to Glass Industries, Located in and around Telangana and

Andhrapradesh.

2.6 Employment Generation

Proposed mining is with manual method and this project operation will provide

livelihood to the 34 workers. It will provide employment to the people residing in

vicinity.

PROJECT DESCRIPTION

3.1 Type of Project Including Interlinked and Interdependent Projects, If Any.


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The proposed Quartz mine is of 3.682 ha. No interlinked projects were associated with

this project.

3.2 Location

The mining lease area is located in Sy.No. 195,197 & 198 of Chowlapally Village,

Farooqnagar Mandal, Mahaboobnagar District, Telangana. The mining lease area falls in

Survey of India

Toposheet No. : 56 K/4

Latitude : 170 03’ 29.51 N

Longitude : 780 08’ 28.21 E

Location of the mining lease in Anantapur District is shown in Figure – 1.

Topo Map Showing 10 km Radius of Mine lease area is Enclosed as Figure-2.


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FIGURE – 1

LOCATION MAP


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FIGURE – 2

TOPOGRAPHICAL MAP SHOWING 10 KM RADIUS


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3.3 Details of Alternate Sites

No alternate site was considered as the project is mineral specific and site specific.

3.4 Size or magnitude of operation

The proposed mine has lease over an area of 3.682 ha and the production rate is

53554tonnes/Annum of Quartz and Feldspar: 2983.59 tones per annum. The lessee

follows open cast manual mining.

Prod uction parameters

The Quartz Mineral production target for First 5 years is given in Table 3.1

PROPOSED PRODUCTION AND DEVELOPMENT DETAILS FROM - 2014-15 TO 2018-19

S L NO YEAR Vol. m3 X 2.5 BD ROM T

95% *Waste m3

(Qtz)

1 I Year

4733.4 2340 6084 260

2 2 Year

4600 4140 10764 460

3 2016-17

7500 6750 17550 750

4 2017-18 13300 11970 31122 1330

5 2018-19 13700 12330 32058 1370

GRAND TOTAL 148356 6340

Source : Mine plan approved by Director of Mines & Geology, Hyderabad) 3.5 Geology and Reserves

3.5.1 Regional Geological setup

The region of the subject area constitutes of granites and granitic gneisses of

varying colours. These are melanocratic in nature and generally exhibits

porphyritic texture, in addition to course grained texture. These granites are

traversed by thin fracture fillings of Quartz veins traverse over a few meters to

kilometers in length and have a tabular to lensoidal shape. But when observed

locally they reflect variation in thickness of the tabular body.


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3.5.2 Local Geology

The Quartz of the subject area is a tabular body within the granitic terrain.

The quartz vein is trending NNE-SSW almost occupying the central part of

the applied area. The length of Quartz vein is about 1000m; width of the

vein is about 60-65m (Max). The Quartz is exposed to a maximum

thickness of 2-3m or to an average thickness of 2.5m along the strike

direction. The country rock (Granite) is exposed at lower reaches in

outside the area.The Western border of the recommended area is having

common border with Jaukalapalli village.

Quartz: Quartz occurs in this area is a semi glassy variety. It is fine

grained material. It shows white and light yellow colour. But, some places

it appears in honey colour due to impurities. It has two sets of joints of in

nature.

Soil with scree: Red soil with gravel (scree) is covering the slopes of the

applied area on either sides of the Quartz vein to a thickness of more than

1.5m.

(Source: Mining plan)

3.5.3 Exploration

Exploration already carried in the area:

Applied area for grant of mining lease was demarcated on the ground with

reference to revenue pillars. Later the topographical survey of the area was carried out

by theodalite. The revenue pillar, which is located on NE corner of the area, is taken as

BM 675m(100 Contour) and this boundary pillar is connected to national grid of

13O58’45.40”N & 78O 03’32.21”.

2) Future Programme:

The Quartz vein is well exposed as a ridge to a maximum height of 3m in

the strike direction of NNE-SSW. To know the depth persistence of the

mineral, it is proposed to dig six DTH holes along the Quartz vein. These


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DTH holes will be made in fifth year, after the lease is granted. The

locations of the proposed trail boreholes are shown on plate-3 as PDTH-1

to PDTH-6.

3.5.4 Reserves

The Quartz reserves are calculated by cross sectional method under proved

(UNFC: 111), probable (UNFC: 122) and inferred (UNFC: 333) categories. The

Quartz is well exposed to a maximum thickness of 3m or to an average

thickness of 2.5m along the strike direction. So the estimation reserves of

Quartz is taken an average thickness of 10m from the surface is considered for

proved category. Since the Quartz is extending further depth below proved zone,

another 3m thickness is considered for each category of probable & inferred

reserves. The reserves are estimated by multiplying the cross sectional area with

influence distance of section, tonnage factor of Quartz (2.6) and recovery factor.

The recovery factor of Quartz is taken as 90% by leaving 10% of the material

for weathered or for waste. The calculations of Quartz reserves are given below.

Classification Code Quantity

(t)

Grade

Total Mineral Resources (1+ 2) 1223586 >99.72%SiO2,

<0.006Fe2O3

1. Proved Mineral Reserve 111 832806 --DO--

2. Probable Mineral Reserve 122 195390 --DO--

3. Inferred Mineral Resource 333 195390 --DO--

Total saleable Reserves of Quartz = 12, 23,586 tons.

Total Waste Generation = 52290 m3

Grade: Three Quartz samples were collected from out crops of the Quartz. This

samples show the average chemical analysis of SiO2=99.72%, and

Fe2O3=0.006%.


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Life of Mine: The rate of production can be maintained around 29671 tonnes

per year for the balance lease period also. At this rate of production of

29671 t per year, the expected life of the mine is around

(1,22,3586/29671=42.38) 42 years.


3.6 PROJECT DESCRIPTION WITH PROCESS DETAILS

3.6.1 Method of Mining

a) Type of Mining:

The proposed mining in the subject area is a manual, open cast method.

b) Brief Description:

Mining of Quartz in this area, involved of removing of two benches of 4m height from

the surface of the mound. To mine Quartz, drilling and blasting is required. For this

purpose one jackhammer and one tractor mount compressor is required. Apart from

this no mechanization is required to mine Quartz in this area. The sizing and

segregation of minerals and waste will be done by manually.

c) Removal / Excavation of O.B. and other Quarry Waste:

There is no topsoil or overburden generation during first five years period. But about

10% of the production i.e. 15850 Tonnes or 6340 m3 of mineral waste, consisting of

weathered Quartz will generate as waste in this 5 years.


3.7 Raw Material Required Along With Estimated Quantity, Likely Source,

Marketing Area of Final Product/S, Mode of Transport of Raw Material and

Finished Product

No raw material will be required in the proposed project. The operation involves

the extraction of Quartz and dumping in stock yard. The segregated Quartz

mineral will be transported through hired trucks to the user industries.


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3.7.1 Use of Mineral

The Quartz of this area is not meant for captive use. The mineral Quartz will

be sold to the Ferro Alloy Industries, Foundries, Ceramics and to Glass

Industries, Located in and around Andhrapradesh. The specification stipulated

by buyers are given in table below.

Specifications Stipulated by Buyers

INDUSTRY SiO2 Fe2O3 AI2O3 MgO CaO

Glass 99-99.9 <0.1 -- <1.2 <1.0

Ceramics 97-99 <0.2 <0.5 -- --

Foundries(steel) 95-99 <1.5 <0.5 -- --

Foundries(Iron) >96 <1.5 -- -- --

3.8 Resource Optimization/ Recycling and Reuse

Not envisaged.

3.9 Availability of Water Its Source, Energy/ Power Requirement and Source

3.9.1 Water Requirement

Water is required only for drinking purposes, green belt and dust suppression.

The number of working people is around 34 so the total water requirement will

be around 11.0 KLD. This water will be supplied from tankers from nearby

villages.


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Table 3.4: Water Requirement

S. No. Enduse Quantity (KLD)

1 Dust suppression 5.9

2 Green Belt Development 3.6

3 Domestic Use 1.5

Total 11.0

3.10 QUANTITY OF WASTES TO BE GENERATED (LIQUID AND SOLID) AND

SCHEME FOR THEIR MANAGEMENT/ DISPOSAL

3.10.1 Solid Waste Generation& its Disposal

There is no topsoil or overburden generation during first five years period. But

about 10% of the production i.e. 15850 Tonnes or 6340 m3 of mineral waste,

consisting of weathered Quartz will generate as waste in this 5 years.

The waste material will be stocked on SE side of the area in non-mineralized zone,

over a length of 100m, width of 21m and to a height of 3m.

3.10.2 Liquid Effluent

No liquid effluent will be generated at the mine site. The domestic wastewater

generated will be sent to septic tanks followed by soak pits.

4.0 SITE ANALYSIS

4.1 Connectivity


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4.1.1 Nearest Railway Station

Kadiri railway station 18.28 km due SE from the mine lease

4.1.2 Nearest Airport

Kempegowda international airport is 95.37 km due SW from the mine lease area

4.2 LANDFORM, LANDUSE AND LAND OWNERSHIP

The mining lease is located in Government land. The QL applied area is a small hillock in

the form of Dyke with gently slope towards North -West, & South- East with a dip of 20-

25 degrees.

4.3 Topography

The subject area belongs to small ridge which is elongated in NNE – SSW direction. The

applied area is elevated in the center and sloping in all directions. There is a maximum

relief of 25-30m towards center and 25m (675-700) towards NE direction from peak of

the mound. No perennial water courses in the applied area. Since it is a barren land it

does not have any vegetation or trees except some scattered thorny scrub on the slopes

of the area.

4.4 Climatic data from secondary sources

Table 4.1 Climatic Conditions

Nearest IMD station Ananthapur – 85 km

Maximum,Minimum Temperature Maximum : 41.30C

Minimum : 13.90C

Heaviest rainfall in 24 hours 310.5 mm


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Mean Wind Speed 11.0 km/hr

Rainfall of area 551.3 mm

(Source: Climatalogical Normals (1961-1990) :IMD)

5.0 PLANNING BRIEF

5.1 Planning Concept

Mining Plan approval has approved by Joint Director of Mines & Geology, Hyderbad

Memo Number No: 17551/M. III(1)/2011-1 dated 11.11.2013. It is proposed to produce

32058 t/annum of Quartz from the proposed mining lease.

5.2 Population projection

The project will employ mostly workers from nearby villages. There will not be any

increase in population due to the project.

5.3 Land use planning

The project is located in 8.905 ha. of Government land. There will be change in land use

as the granite will be excavated. After the exhaustion of granite, the pit will be backfilled

with the waste generated

5.4 Assessment of Infrastructure Demand (Physical & Social)

On the basis of the preliminary site visit, the infrastructure demand in the villages was

assessed on the basis of need and priority. The assessment will be made in the socio

economic survey &will be submitted at the time of final presentation regarding EC.

5.5 Amenities/Facilities

Office, Rest shelter, first aid room, workshop, canteen, will be constructed.


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6.0 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (Processing Area)

The mined out quartz will be sized/ segregated manually within the mine lease and the

segregated material will be

6.2 Residential Area (Non Processing Area)

As the local persons will be given employment, no residential area/ housing is proposed

within the mining lease area.

6.3 Green Belt

Green belt will be developed along the boundaries of mine lease area.

6.4 Water Management

About 5.9 KLD will be required dust suppression, 3.6 KLD for greenbelt purpose and

about 1.5 KLD for domestic therefore total water requirement is 11.0 KLD. This water

will be supplied from tankers/bore wells of the nearby villages.

6.5 Sewerage System

The domestic wastewater generated will be sent to septic tanks followed by soak pits.

6.6 Industrial Waste Management

Not applicable.


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6.7 Solid Waste management

About 90% of the material from granite production is going to be generated as solid

waste 15993m3 of granite waste is produced per year.

The waste will be dumped within lease area towards SE side and will be backfilled into

the mined out pit at the end of the mining.

7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN

There will be no displacement of houses. Hence rehabilitation and resettlement

is not envisaged.

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