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CHAPTER 1 INTRODUCTION
Each and every organization has its own importance in the economic wealth of the nation. Different organization meets different needs of people by offering different products and services. Due to globalization, the world has changed into a global village. In this fast changing business scenario, it is imperative for every entrepreneur to have a vivid understanding of the functional application of the new age business. As a part of the academic curriculum each student has to undertake an organizational study to get a practical exposure. This study is conducted at INDIAN RARE EARTHS LIMITED, CHAVARA. IREL, CHAVARA is located 10km north of Kollam, 85kms from Thiruvananthapuram, capital of Kerala and 135kms by road from Kochi is perhaps blessed with the best mineral sand deposit of the country. The plant operates on a mining area containing as high as 40% heavy minerals and extending over a length of 22kms in the belt of Neendakara and Kayamkulam. The deposit is quite rich with respect to Ilmenite, Rutile and Zircon. And the mineral Ilmenite happens to be of weathered variety analyzing 60% Titanium Dioxide (TiO2). The present annual production capacity of Chavara unit engaged in dry as well as wet (dredging/ up gradation) mining and mineral separation stands at 2,00,000 tone of Ilmenite, 1,14,500 tones of Rutile, 11,750 tones of Zircon and 10,000 tones of Sillimanite. In addition to that, the plant has facilities for annual production of ground Zircon called Zirflour and Micozir of the order of 6000 tones and 300 tones respectively. IREL Chavara is one of the oldest and leading public sector undertakings under the Department of Atomic Energy (DAE). It is an ISO 9001:2000, ISO 14001:2000; OHSAS 18000 certified company supplies beach sand minerals to the foreign and domestic market. It caters the requirements of developed countries like U.S.A, U.K, Germany, Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile, Sillimanite, Zircon and Zirflour IRE in Chavara is known for supplying of Ilmenite (TiO2 bearing mineral) to the TiO2 industry. IREL Chavara is located 10 km north of Kollam, 85 km from Thiruvananthapuram and 135 km by road Kochi is perhaps blessed with the mineral sand deposit of the country. The plant operates on a mining area containing as high as 40% heavy minerals and extending over a length of 22km in the belt of Neendakara and

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Kayamkulam. The deposit is quite rich with Ilmenite, Rutile and Zircon and mineral Ilmenite happens to be of weathered variety analyzing 60% TiO2. The present annual production capacity of Chavara unit engaged in dry as well as wet (dredging/up gradation) mining and mineral separation stands at 200000t of Ilmenite, 114500t of Rutile,1175t of Zircon, and 10000t of Sillimanite. In addition the plant has facilities for annual production of ground Zircon called Zirflour (-45 micron) and Microzir (13micron) of the order of 6000t and 500t respectively. IREL Chavara is one of the oldest and leading public sector undertakings under the control of Department of Atomic Energy. It is an ISO 9001:2000, ISO14001:2004, and OHSAS18001:1999 certified company supplies beach sand minerals to the foreign and domestic customers. The major minerals products of IREL are Ilmenite, Rutile, Sillimanite, Zircon and Zirflour. Reason for selecting IREL IREL is one of the major mineral producing public sector companies of its kind in India In this study I will be covering organization as a whole briefly.

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CHAPTER 2 INDUSTRY PROFILE
Rare earths elements, series of chemical elements of the periodic table. The Rare elements include the elements with atomic numbers 57 through 71. In the early years these elements were considered as rare elements and so they are called as rare earth metals. Later many elements in this group were found splendid but their name remained unchanged. The primary source of rare earth elements is greenish yellow coloured mineral sand, which is Monazite .Its availability in nature is confined to certain beaches and rock found in certain countries. The beaches containing the monazite are found mixed with other minerals too. Most of these are ores for valuable metals. An ore is a mineral from which metal can be separated economically. These ores are Ilmenite, Rutile, and Zircon. Ilmenite and Rutile forms the ore for Titanium, Zircon for Zirconium; even though Aluminium bearing metal Garnet and Sillimanite are also found along with these beach sand minerals. But they are not commercially exploited for Aluminium production due to economic reasons. However Garnet and Sillimanite, in their natural form, are commercially significant. Ilmenite which is black in colour constitutes a major chunk of these minerals (60%) presence of these minerals makes the beaches appear black. These minerals are commercially known as beach sand minerals or heavy minerals. The origin of beach sand is from rocks, which are rich with heavy minerals. This sand particle reaches sea through rivers. The sea level is not remaining constant. It is regarded that the sea level, it is now really 100 meters above what we had seen 20,000 years ago. This white sand seen at the beach area contains he main constitute as Quartz. This is lighter than black sand .As a result of movements of the sea this sand will erode away and black sand get deposited. The black sand thus deposited 100 years ago is mined and processed. In the year 1789 Fr. William George (1761-1817) discovered Ilmenite at knower in England and started that this black sand contains some important metal. But he failed to discover which metal it was. After several time, in the year1875 the Hungarian scientist Martin Heen Witch Klapporth found the same metal contents in the Rutile minerals about which Fr.William George mentioned. After a series o investigations are found those metals content as Titanium after ‘Titan’ of Greek mythology. Technology developed over the years has made the beach sand. Minerals are utilized in a variety of industrial and domestic applications. Monazite was mainly used in the gas

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mantle industry. After the advent of electricity its demand decreased in the gas mantle industry, Pigment industry, welding electrode industry, Sillimanite is used in high temperature refractory industry, ceramic industry etc Zircon is used in foundries, ceramics, and refractories and in the manufacture of Zirconium chemicals, metals and alloys. Zirflour used in foundries for high temperature castings. Garnet is used in the manufacture of abrasive polishing glass, TV tubes for sand lasting and for water filtration. The beach sand mining and processing industry has vast future because of their demand in nuclear industry too. In the present scenario of booming economy in India and China there is huge demand for the beach sand minerals, Ilmenite in particular. The current world production capacity of Ilmenite and other titanium feed stocks for production of titanium oxide pigment titanium metal, welding electrodes etc is around 70 lakhs million tons per annum (tpa). Approximately half of this is from beach sands and the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the limited supply of natural Rutile, its share of consumption in pigment production is rather small and 55% of its total availability of about 5lakh (tpa) is used in the non pigment applications predominantly in the production of welding rod and titanium metal. The present production capacity of pigment in the world just above 40 lakhs tpa North America is the largest producer with 37% of the global capacity is the second largest producer and Asia-Pacific region with 21% capacity, is the third. The balance 10%is distributed among the rest of the world. India has the largest resources base of 278 million tones for Ilmenite. This is the single largest and Ilmenite .This is the single largest and least exploited mineral deposit in the world. However 10% of this is only mineable. Resources base in India for other minerals are: Mineral Rutile Zircon Monazite Sillmanite Ilmenite In million tones 18 21 8 130 107 Contribution to world 10% 14% 7% 25% 35%

In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of global Ilmenite production) and the production of Ilmenite and Rutile during 2004-2005 was over 3-5 lakh tonnes and 1300 tonnes respectively.

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Presently there are few private organizations engaged in the mining and mineral separation of beach sand minerals. The Indian players at present are Transworld garnet private limited, VV minerals, Earth minerals private limited, Tutucorin. Titanium Resource and value addition Ti mineral mineral feed stock  Ilmenite Manmade feed stock  Stag  Syn-Rutile TiO2 Pigment  Rutile GR  Antase GR Ti Sponge Ti mill products TiO2 50-60 87 93 99.8 99.8 99%Ti 99%Ti USD/Ton 200-250 575 878 3666 3333 11111 22222

It can be seen that value will be increased about 100 time through value addition natural Ilmenite Key success factor for the beach sand mineral industry are:  Increase the Ilmenite capacity to reach economic scale of production.  Value addition projects in minerals and rare earths compounds.  Initiate action to develop new mining areas.  Forward integrate through stake in world leader in pigment industry like Tinfoss, DuPont or selling up a pigment plant.  Explore other mining options in neighbouring countries.  Social and political Environment Govt; understanding is considered necessary to safe guard the integrity and welfare of the community as a whole, to enable to the economy, to plan for the overall rapid progress and prosperity and to undertake and execute schemes and projects a vital to the need of the nations. Till 1998, IREL was enjoying monopoly in the beach sand mineral market but the Govt; passed a mineral policy in 1998 starting that any private parties can be enter into mining area. In the states of Tamil Nadu and Andhra Pradesh, private players’ have already entered into beach sand industry. How ever in Kerala, private participation was much

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encouraged with effect from 1998, after liberalizing mining policy, private participation is increasing year by year. How ever, with effect from January 2007 all the beach sand minerals expect monazite have been taken out of the ‘prescribed mineral’ category of Atomic Energy Rules and the industrial licensing authority was shifted to Ministry of mines from Atomic Energy Regulatory Board(AERB). This has eased the entrepreneurs for obtaining industrial license to start their business in beach sand mineral industry. WORLD SCENARIO China, France, India, and Japan were major import sources of rare-earth chlorides, nitrates, and other concentrates and compounds. Thorium-free intermediate compounds as refinery feed were still in demand as industrial consumers expressed concerns with the potential liabilities of radioactive thorium, the costs of complying with environmental monitoring and regulations, and costs at approved waste disposal sites. In 2001, demand for rare earths decreased in the United States, and imports decreased by 5.9%. In 2001, estimated world production of rare earths increased to 119,000 t of REOs. Production of monazite concentrate was estimated at 5,700 t. World reserves of rare earths were estimated by the USGS to be 100 million metric tons (Mt) of contained REOs in 2001. China, with 43%, had the largest share of those world reserves. China’s reserves are primarily contained in bastnäsite-bearing carbonates. Australia’s reserves include rare earths contained in monazite owing to its widespread availability as a very low cost by product of heavy-mineral sands processing. Australia’s other major reserve of rare earths is in the Mount Weld carbonate. Australia.—Australia remained one of the world’s major potential sources of rare-earth elements from its heavy-mineral sands and rare-earth laterite deposits. Monazite is a constituent in essentially all of Australia’s heavy-mineral sands deposits. It is normally recovered and separated during processing but in most cases is either returned to tailings because of a lack of demand or stored for future sale. In 2001, major producers of heavymineral sand concentrates in Australia, in order of potential production, were Iluka Resources, Ltd., Tiwest Joint Venture, Consolidated Rutile, Ltd. (CRL) (43% owned by Iluka Resources Ltd.), and RZM/Cable Sands, Ltd. (CSL). Iluka operated eight mines in Australia and two in the United States in 2001 (Iluka Resources Ltd., 2002a, p. 1). Iluka’s Australian subsidiary WA Titanium Minerals operated six mines in Western Australia, two of which opened in 2000. The company operated the Capel North West Mine near Capel, Western Australia. WA Titanium operated the North Mine and the Newman

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concentrator near Eneabba, Western Australia. Other mining operations were the South Mine near Eneabba and the Yoganup, the Yoganup Extended, and the Busselton Mines in the southwestern region. Iluka’s two east coast mines, in which it has a 48.9% interest, were operated by CRL on North Stradbroke Island, Queensland. Iluka upgraded the heavy-mineral sand resources by 28% at three of its Murray Basin tenements in northwestern Victoria. The deposits included the Boulka in Ouyen, the Snapper in Pooncarrie about 120 kilometers (km) north of Mildura, and the Dispersion, about 70 km east of Mildura. Iluka reported grades of greater than 22% heavy minerals with mineral zones containing up to 27% rutile and 15% zircon at Dispersion (Iluka Resources Ltd., 2002b). BeMaX Resources NL and Probo Mining Pty. Ltd. announced they would begin development of their joint venture Ginkgo Mineral Sands project (Ginkgo) in the Murray Basin near Pooncarie, New South Wales. Reserves are 184 Mt of ore grading 3.2% heavy minerals. Production from the Ginkgo deposit was expected to commence in late 2003 with shipments commencing in early 2004 (BeMaX Resources NL, 2002; Mineral Sands Report, 2002a). BeMaX reported inferred resources at its joint-venture Snapper deposit in the northern Murray Basin, New South Wales, at 104 Mt grading 4.8% heavy minerals. The BIP Joint Venture between BeMaX (75%) and Probo Mining (25%) controls the Snapper and the Ginkgo heavy-mineral deposits (Mineral Sands Report, 2001f). The Snapper deposit is located 10 km southwest of the Ginkgo deposit. The Ginkgo deposit has a resource of 252 Mt grading 2.8% heavy minerals (BeMaX Resources NL, 2001§). Exploration Company Metal Sands Pty. Ltd. released the results of its drilling in southwestern Western Australia. The resource had an estimated 3.37 Mt of ore grading 2.38% ilmenite, including 1.85 Mt grading 0.08% zircon (Metal Sands Pty. Ltd., 2002). In April, Iluka announced that it had discovered additional heavy-mineral sands resources in Western Australia. Measured, indicated, and inferred resources were increased to 88 Mt of heavy minerals. This resource is split between Western Australia’s southwest region, which includes Capel at 48 Mt, and the midwest region, which includes Eneabba at 40 Mt. Iluka’s heavy-mineral sand resources in its rest-of-world category, including other parts of Australia, in decreasing order, were Sri Lanka, 119 Mt; the United States, 25 Mt; North Stradbroke Island, Queensland, Australia, 15 Mt; and Murray Basin, Victoria, Australia, 9 Mt (Mineral Sands Report, 2001c). Australian Zirconia Ltd. (a wholly owned subsidiary of Alkane Exploration Ltd.) announced that it is making minor adjustments to its pilot plant to produce a marketable zirconium oxide and hafnium oxide product from its Dubbo hard-rock rare earth-yttrium-zirconium-hafnium-niobiumtantalum bearing deposit in New South Wales. Another production run of the plant was planned for December to produce a first run niobiumtantalum product (Alkane

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Exploration Ltd., 2001). The multimineral deposit is located on the Toongi alkaline intrusive that contains hafnium, lanthanides, niobium, tantalum, yttrium, and zirconium in the igneous rock trachyte. Measured resources at the Dubbo deposit are 42 Mt grading 1.91% zirconium oxide, 0.04% hafnium oxide, 0.449% niobium oxide, 0.027% tantalum oxide, 0.138% yttrium oxide, and 0.713% REO (Australian Zirconia Ltd., 2000). Basin Minerals Ltd. announced it had acquired a loan to proceed with a final feasibility study of the Douglas heavymineral sands deposit in the Murray Basin in western Victoria. Basin Minerals’ Douglas deposit covers an area of 5,860 square kilometers and has a resource of 22.4 Mt of heavy minerals. The area contains the Acapulco, Bondi, Bondi East, and Echo strandline deposits containing 11.3 Mt of ilmenite (including leucoxene), 1.26 Mt of rutile, and 1.62 Mt of zircon. Basin Minerals reported it had filed an environmental effects statement with the Victoria government (Mineral Sands Report, 2002b). Basin Minerals has estimated an inferred resource for the Culgoa deposit in the Murray Basin to be 11.8 Mt at 16.8% heavy minerals with a cutoff grade of 3% heavy minerals. Culgoa has 1.985 Mt of heavy-mineral concentrate with a waste-to-ore ratio of 2:1. The high-grade mineralization is between 60 and 140 meters (m) wide and averages 4 m in thickness over a strike of 17.6 km. Culgoa’s heavy-mineral content averages 79% valuable heavy minerals and 21% gangue (TZ Minerals International, [undated]§). Mineral Deposits Limited (MDL) announced it had received approval to proceed with an extension of its dredging at Fullerton, New South Wales. The 14-km extension should extend the mine life by about 10 years at present mining rates. Part of the extension extends onto aboriginal lands, for which MDL has obtained leases from the Worimi Land Council (Mineral Sands Report, 2001d). Iluka purchased a 4.8% share of Basin Minerals, which has several heavy mineral sands holdings in the Murray Basin. Basin Minerals properties included the Douglas project with reserves of 35.9 Mt of ore grading 10.3% heavy minerals (Mineral Sands Report, 2001b). Iluka announced a takeover bid for its 43%-owned subsidiary CRL. Through its subsidiary Iluka Corp. Ltd., Iluka Resources offered $A1.00 per share for all the outstanding stock, a 21% premium to the stock price at the time of offer (Mineral Sands Report, 2001a). Sons of Gwalia (SOG) increased its share of BeMaX to 19.9%. SOG held at 16.82% equity in BeMaX prior to the sale of 5.1 million shares. Imperial One Ltd. (IOL), the largest shareholder, increased its share of BeMaX to 24.36%. IOL was BeMaX’s original joint-venture partner when the exploration company started (Mineral Sands Report, 2001e). Brazil.—Reserves of monazite contained in marine alluvial deposits were 42,000 t, and in stream placers, 40,000 t in 2000, the latest available data. The reserves of marine origin

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were distributed in deposits primarily in the States of Rio de Janeiro (26,730 t), Espírito Santo (4,136 t), and Bahia (10,186 t). The main placer reserves were in the States of Minas Gerais (24,396 t), Espírito Santo (11,372 t), and Bahia (3,481 t) (Fabricio da Silva, 2001, p. 93-94). Canada.—Tiomin Resources Inc.’s Natashquan heavy mineral sand deposit is on a careand-maintenance basis while the company focuses on development of the Kwale deposit in Kenya. The Natashquan deposit, on the north shore of the St. Lawrence River in Quebec, contains ilmenite, magnetite, and zircon. Only a small portion of the deposit has been drilled and resources are estimated to be 2.1 billion metric tons (Gt) of ore grading 5.9% heavy minerals. The dredgeable resource at Natashquan has been calculated using geologic modeling to be about 770 Mt grading 9.0% heavy minerals for the north zone and 890 Mt grading 7.19% heavy minerals for the south zone. A 116-hole drilling program confirmed the modeling resource estimate (Tiomin Resources Inc., [undated]a§). China.—Production of rare-earth concentrates in China was 73,000 t REOs in 2000, the latest available data. Refined and processed products reached 65,000 t REOs. Production of individual high-purity rare-earth compounds and metals was 25,000 t REOs, an increase of 66% from those of 1998. Consumption within China increased by 20% in 2000 to about 19,200 t REOs. Metallurgical applications, the major domestic use, consumed 5,200 t of equivalent REOs (China Rare Earth Information, 2002a). Santoku Corporation entered into a joint-venture agreement with Baotou Rare Earth High and New Technology Industry Development Zone, Rhodia, and Westlake to form the rechargeable battery materials company Baotou Santoku Battery Materials Co. Ltd. (BSBM). Santoku will reportedly invest 70% of the capital for the Baotou venture. Initially, BSBM plans to manufacture mischmetal and nickel-hydride alloys for use in rechargeable batteries for consumption in China. Future production will be slated for export throughout Asia (Rareearth Information Center Insight, 2001a). Baotou Iron and Steel Group Inc. (Baogang) produced 7,900 t of rare-earth products in 2001. The production represents an increase of 14% compared with 2000. Baogang reported a profit of Y64.72 million (China Rare Earth Information, 2002b). Estonia.—AS Silmet (a subsidiary of Silmet Group) separated rare earths at its plant in Sillamäe. Located on the northeastern coast of Estonia on the Gulf of Finland, the plant has capacity of 3,000 metric tons per year (t/yr) of rare earth products. Rare-earth material for the Sillamäe plant originates as loparite concentrates from Russia. Preliminary

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processing of the loparite ore is done in Solikamsk, Russia, to produce intermediate rareearth concentrates. These concentrates are shipped for use as feed material for the Sillamäe rare-earth separation plant. The majority of production is exported to Japan; however, exports to the United States have been increasing (Baltic Review, [undated]§). The Sillamäe radioactive tailings pond, an environmental problem from the Soviet era (before 1991), has been undergoing remediation since 1999. Under direction of the private-public environmental company Ökosil, created by a cooperative venture between the Government of Estonia and Silmet Group, the cleanup of the tailings pond is planned for completion in 2006. France.—Rhodia is to refocus its direction to become a development partner and supplier of advanced materials, especially to the electronics and catalyst markets. Three new business units in Rhodia were structured to embrace the company’s market focus—new markets, electronics, and catalysis. The growth in added value products will be an extension of its core business in rare-earth technologies (Rhodia RARE EARTHS—2001 61.7 Europe, 2001). India.—In December2001, V.V. Minerals (VVM) announced that it had discovered mineral sands resources of 23.9 Mt of ore containing 9.45 Mt of heavy minerals, including monazite. VVM has been a producer of garnet with byproduct production of ilmenite. With its drilling program in Tamil Nadu, VVM is expecting to produce greater quantities of ilmenite and byproduct rutile and zircon. Additional drilling in 2002 at closer intervals is expected to further delineate its heavy mineral deposit (Mineral Sands Report, 2002c). Indian Rare Earth Ltd. (IRE) operates three heavy-mineral sand mines at Chavara in Kerala State, Manavalakurichi in Tamil Nadu State, and the Orissa Sands Complex in Orissa State. In 2001, IRE recovered and processed monazite to produce thorium-free rare-earth chloride and byproduct thorium hydroxide. Kerala Minerals and Metals Ltd. (KMML) mined and processed heavy-mineral sands from beach sands along the Chavara coast in Kerala State. KMML announced it was building a new mineral separation plant to increase capacity to about 3 million metric tons per year (Mt/yr) of ilmenite, with concomitant increases in the other heavy minerals. Monazite from the KMML deposits on the Chavara coast had an average composition of 57.5% REOs with 7.96% thorium oxide and 28.2% phosphate, with a specific gravity of 5.14. The heavymineral composition of the coast and adjoining seabeds contained 240 Mt ilmenite, 20 Mt rutile, 50 Mt zircon, 60 Mt sillimanite, and 4 Mt of monazite (Kerala Minerals and Metals Ltd., 2001§).

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Japan.—Japan refined 5,104 t of rare earths in 2001, a decrease from the 5,625 t produced in 2000. The rare earths were produced from imported ores and intermediate raw materials (Roskill’s Letter from Japan, 2002b). Inventories of rare earths increased to 701 t, up from the previous year’s level of 567 t. Imports of rare earths during the year were 19,736 t, a decrease from the 26,928 t imported in 2000. The value of imports decreased to ¥18,600 million in 2001 from ¥23,843 million in 2000 (Roskill’s Letter from Japan, 2002d). Japanese rare-earth imports declined in all product categories. Imports from the United States, however, were 664 t, an increase from the 530 t imported in 2000. Estimated production of Japanese bonded neodymium-ironboron magnets in 2001 was 591 t, a decrease from the 700 t produced in 2000 (Roskill’s Letter from Japan, 2002c). After a decade of double-digit growth, the decrease in neodymium-ironboron magnet production is the second decline in 2 years. Japanese shipments of rare-earth-containing Ni-MH rechargeable batteries decreased by 36% in 2001 to 650 million units (Roskill’s Letter from Japan, 2002a). Ni-MH shipments were 653.8 million units in 2001, a decrease from the 1,015.3 million units shipped in 2000. The lower shipments were the result of decreased demand for consumer products that use Ni- MH batteries, including cellular phones, laptop computers, PDA’s, and portable tools. Japanese imports of rare earths from China were as follows: cerium compounds, 3,474 t; rare-earth compounds, 3,380 t; rare-earth metals, 3,213 t; cerium oxide, 3,212 t; lanthanum oxide, 1,283 t; yttrium oxide, 854 t; and ferrocerium, 45 t (Roskill’s Letter from Japan, 2002d). Total imports in 2001 were as follows: rare-earth compounds, 5,361 t; other cerium compounds, 4,434 t; cerium oxide, 3,832 t; rare-earth metals, 3,346 t; lanthanum oxide, 1,498 t; yttrium oxide, 881 t; and ferrocerium, 384 t (Roskill’s Letter from Japan, 2002d). No rare-earth chlorides were imported in 2001 (Roskill’s Letter from Japan, 2002e). China continued as the leading source of rare-earth imports for Japan with 12,909 t in 2001, a substantial decrease from the 22,431 t, imported in 2000. Kenya.—Tiomin Resources Inc. explored four heavy-mineral sands deposits in the coastal region between Mambrui and Shimoni. The deposits from north to south are the Mambrui, Kilifi, Vipingo, and Kwale. Located 6 to 12 km inland from the coast, the deposits are in the Magarini Formation of Pliocene age. The Mambrui has a resource of 700 Mt grading 3.7% heavy minerals. The Kilifi dunal system is believed to be aeolian in origin. The Kwale deposit is the most advanced of Tiomin’s properties, although it is the smallest of the group. The deposit consists of two large dunes located 10 km from the

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coast and only 65 km from the city of Mombasa. Kwale’s resources are 200 Mt of heavymineral sands containing 3.8 Mt of ilmenite, 1.1 Mt of rutile, 0.6 Mt of zircon, and lesser amounts of monazite (Tiomin Resources Inc.). Madagascar.—Rio Tinto Iron and Titanium Inc. (RIT) announced that its three deposits near Fort Dauphin graded 4.5% to 5.5% heavy minerals. The heavy-mineral suite reportedly is ilmenite-rich with a 75% to 80% content but with a correspondingly small zircon and rutile content (Mineral Sands Report, 2001h). A feasibility study on mining heavy-mineral sands near Tolagnaro (Fort Dauphin) in southeastern Madagascar was started by QIT Madagascar Minerals S.A. (QMM), a Malagasy company owned 80% by RIT and 20% by the Malagasy Government. Mozambique.—RIT announced the discovery of heavy mineral sands deposits in the Provinces of Gaza and Inhambane. The placer deposits are in a coastal dunal system representing a fossil shoreline. Initial drilling indicated an inferred resource of 70 Mt of ilmenite and other heavy minerals, including zircon. Additional drilling on the deposit is planned (Mineral Sands Report, 2002e). Kenmare Resources plc of Dublin, Ireland, completed its feasibility study of the Moma titanium minerals project, which indicated the project was viable. Exploratory drilling proved the deposit is capable of supporting a 625,000-t/yr heavymineral sands operation for 20 years (Kenmare Resources plc, 2001). Russia.—Solikamsk Magnesium Works (SMZ) reported it had processed 9,521 t of loparite ore in 2000, up by 15.4% from that of 1999. Output was up by 48.2% in 2000 to 1,104 t of intermediate rare-earth compounds, feed material destined for the rare-earth separation plant in Sillamäe, Estonia. SMZ reported value had increased by 21.3% to Rub94.215 million. Rare-earth materials accounted for 34% of SMZ’s output, the remainder being magnesium and its alloys (MetalMerge, 2001§). The Lovozero deposit in the Murmansk region is the principal source of light-group rare earths (LREE) in Russia. The deposit was operated by AO Sevredmet’s Lovozero Mining Combine until March 2000. Sevredmet went into receivership March 15, 61.8 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2001 2000, and the mining company restructured under OAO Sevredmet. The new public company Lovozero Mining Company (LMC) was formed at the Umbrozero mining facility to operate the loparite concentrator facility. LMC has projected output from the concentrator to be 5,150 t/year of rare-earth carbonates (96% of

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Russian demand). LMC ships loparite concentrate for further processing to Solikamsk and then on for further refining and separation to Estonia, Kazakhstan, and Kyrgyzstan (Russian Ministry of Economic Development and Trade, State Investment Agency. South Africa.—Rare Earth Extraction Co. Ltd. (RARECO) decided to postpone development of its deposit at Steenkampskrall because of international economic conditions. RARECO quoted the financial crisis in Asia and Russia and decreased commodity prices, including rare earths, as the principal causes for the postponement (Rare Earth Extraction Co. Ltd., 2001§). Ticor Ltd. of Australia announced it would acquire 40% of the shares in Iscor’s IHM Hillendale project in KwaZulu Natal Province. The remaining 60% is owned by Kumba Resources Ltd. (a subsidiary of Iscor Ltd.). The IHM project, which was renamed Ticor South Africa in August, consists of three deposits —the Hillendale and the Fairbreeze in KwaZulu Province and the Gravelotte in Northern Province—which total 16 Mt of heavy minerals. Mining using water jets was used for the project because traditional dredging was determined to be inadequate (Ticor Ltd., 2000§). The Ticor South Africa mine and concentrator were commissioned in June 2000 with production from the deposit beginning in April 2001. The mine initially produced 196,000 t of ore with the concentrator producing 8,500 t of heavy-mineral concentrate. A heavy mineral dry separation plant at Empangeni also commenced production. The Ticor South Africa mining operation officially opened in September (Australian Mining, 2002§). Namakwa Sands (a wholly owned subsidiary of Anglo American plc) continued to increase production of heavy mineral sands as a result of an expansion (phase two) at its mine at Brand-se-Baai. The phase two expansion increased ore capacity to 12 Mt/yr from 4 Mt/yr (Mineral Sands Report, 2001).

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CHAPTER 3 PROFILE OF INDIAN RARE EARTHS LIMITED
On August 18, 1950, Indian Rare Earths Limited (IREL) was incorporated as a private limited company -jointly owned by the Government of India and Government of Travancore, Cochin with the primary intention of taking up commercial scale processing of monazite sand at its first unit namely Rare Earths Division (RED), Aluva, and Kerala for the recovery of thorium. After becoming a full fledged Central Government Undertaking in 1963 under the administrative control of Department of Atomic Energy (DAE), IREL took over a number of private companies engaged in mining and separation of beach sand minerals in southern part of the country and established two more Divisions one at Chavara, Kerala and the other at Manavalakurichi(MK), Tamil Nadu. After a gap of about 20 years, IREL commissioned its largest Division called Orissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with Corporate Office in Mumbai and produces/sells six heavy minerals namely Ilmenite, Rutile, zircon, monazite, Sillimanite and garnet as well as various value added products. IREL is making profit for the last 6 years with its sales turnover reaching a peak exceeding Rs. 2600 million in 2000-01, with export component of above Rs. 1000 million. Chavara plant is engaged in the processing of beach sand deposits available on the coastal belt of Neendakara- Kayamkulam.

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BRIEF HISTORY IREL’s history should not be narrated without mentioning the name of German Chemist Mr. Her Schomberg who has realized that the shining yellowish- brown sand particles sticking to coir, a coconut fiber shipped from India (1909), contained Monazite. 1948 The Government of India set up the Atomic Energy Commission under the Chairman ship of Dr. Homi Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to process the beach sand mineral for the production of Rare Earths was examined. 1950 Indian Rare Earth Limited was incorporated in Bombay. 1951 IREL became a full fledged Central Government undertaking under Department of Atomic Energy and commenced construction of its Rare Earths plant at Udyogamandl in Kerala. 1952 Rare Earth was dedicated to the nation on December 24, by the late Prime Minister, Pandit Jawaharlal Nehru. 1955 Opening of Thorium factory off Bombay. 1965 Opening of Minerals Division at Quilon in Kerala State with manufacturing facilities at Chavara in Kerala and at Manavalakurichi at Tamil Nadu and a giant mineral sand separation and synthetic Rutile plant at Chatrapur in Orissa (1986) OSCOM

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Products IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon, Sillimanite, and Ilmenite. The product range includes value added products like Zirflor and Microzir. Annual production capacity in Chavara plant Product Ilmenite Rutile Zircon Sillmanite Zirflour Microzir Production capacity 200000t 1145000t 1175t 10000t 6000t 500t

Product Range Product Specification Specific gravity 4.45-4.54 4.18-4.24 Bulk Density Kg/M3 2600-2630 2630-2650 Major application TiO2pigment industry, Titanium metal Used as flux in the welding Ai2O3-58% 3.20-3.25 1950-2050 electrode industry In the manufacturing of refractory bricks castables, ZrO2-64% 1800-1850 cordierites In refractory and foundry coatings. Also as opacifier ZrO2-63.5% -` in ceramic industry In ceramic glazes, optical glass, porcelain, heat resistant refractories,

Ilmenite ‘Q’ TiO2-58% Grade Rutile ‘Q’ Grade Sillimanite Q’ Grade Zirflour (300/200mes h ASTM) Microzir-1 9d50=`1.2mi cron) TiO2-95%

plastics, rubber etc

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Board of management IREL shares are wholly owned by Govt; of India. The board of management consists of seven directors under the chairman ship of Mr. Siva Subramanian appointed by Govt; of India. There are three fulltime directors and four part time directors who are nominated by DAE and state Governments in addition, nominee from the president of India also participate in Board meetings. Approximately 2750 people are employed by IREL in all units and they constitute one of its greatest resource.

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VISION
o To be a leading supplier of beach sand minerals from Asia by supplying

10% of the world demand for beach sand minerals over the next 7-10 years. It would be achieved by maximum utilization of existing capacities, new capacity addition, and capturing major portion of the incremental growth in the global TiO2 feedstock demand and by developing competitive value added Rutile, zircon, Sillimanite and garnet products that make handsome contribution to revenue and profits. o To become the preferred rare earths products supplier (producer and / or marketer) for domestic customers to ensure long-term sustenance and profitability of rare earths business and to achieve adequate efficiency in monazite processing as long as it is necessary / worthwhile.

MISSION
• To harness beach sands in an environmentally and socially responsible manner for efficiently producing minerals and their traditional and innovative value-added products of world-class quality, that are used to make increasingly superior / novel products required by customers. • To play a dominant role in developing domestic rare earths market by producing and / or marketing the quality value-added products to realize maximum potential of rare earths in a range of applications. • To build a professional, creative and committed workforce and nurture an environment that fosters learning, sharing and development.

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Awards and Achievements IREL has fairly good record in its performance during the past decade. From 1997-1998 onwards all out team effort was taken to achieve name plate capacity for the mining and mineral separation plants in all the three locations, Total sales turnover, share of export and profit after tax started improved by leaps and bounds and the company recorded increasing profit since then. In addition to production and financial performance, IREL has excelled in the areas of marketing, safety and human resource management. In recognition of the company’s efforts, SCOPE awarded prestigious Silver Trophy of ‘SCOPE’ award for excellence and outstanding contribution to the Public Sector Management – Special turnaround Category for the year 1999-2000. During the year 2006-07, IREL posted all time high sales turn over exceeding 3600 million with export component over Rs. 1000 million & all time high Profit Before tax of Rs. 1000 million. Future Outlook Company is implementing expansion of all the three Mineral Separation Plants. With the expansion activities in progress, the Company is poised to reach greater heights in the years to come. The phase-I expansion at Chavara is nearing completion (in full) and the expansion at MK is expected to take off soon. Expansion of capacity at OSCOM is also progressing. In addition to expansion of Mineral Separation Plants, the Company is planning to restart the manufacture of Rare Earths products in big way with implementation of Monazite Processing Plant (MOPP) at OSCOM which is likely to commence commercial operation by July, 2009. The successful completion of expansion activities will bring forth a new era of higher capacity and profits and the Company, it is hoped, will attain the pinnacle of glory. The Company will continue to be one among the most successful

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CHAPTER 4

MARKETING AND SALES DEPARTMENT
Marketing occupies an important position in the organization of any business unit. Marketing function necessary to satisfy the customer such as financing, storage risk bearing and after sales services etc. Marketing is a vital connecting link between the producer and the customer. The department structure as follows

General Manager
Dy. General Manager

Manager (sales)

Manager (marketing)

Clerical staff

Clerical staff

Objective of marketing department  Maximum turn over  Maximum profit  Maximum customer relation  Maximum customer satisfaction Earlier IRE had the monopoly in the field of rare earth products. Now some private players are present in the market. IRE is engaged in the production of minerals such as Ilmenite, Rutile, zircon and Sillimanite from naturally available beach sand deposits. It also produces like Zirflour and Microzir. On specific requirements of customers, the

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company also supplies Sillimanite powder by sub contracting among there Ilmenite, Rutile, , zircon are categorized as scheduled minerals for which the customer is require to obtain license from the department of Atomic Energy (DAE) Bombay of their purchase. Sales and distribution system The organization enjoyed monopoly till 1998, only public sectors are present in the market. After that private sectors are come to the market. But in Kerala they enjoy monopoly. Direct selling is the main system of the organization. The customers primarily pay the full amount as DD in advance and then the company gives the product. For domestic sales orders are received as follows 1. 2. 3. Through head office directly from customers transferred from other units of IRE

All expect Zirflour and Microzir and Sillimanite powder are dispatched against permits obtained after payment of prescribed loyalty by IRE in advance to department of mining and geology, Govt: of Kerala. On receiving inquiry from party is submitting their quotation stating with general conditions for sales. Majority of the customers place orders directly with Chavara. Sometimes head office also fixed quota customer wise, if necessary, for the supply of minerals and intimates from time to time If all the formalities are completed delivery instruction are given by the sales department to stores and despatch department for delivery the material to the customers Sales procedure On receiving inquiry from a party they should submit their quotation stating with general majority of the customers place orders directly with Chavara. In certain cases orders are issued by registered office Bombay which is diverted to Chavara for execution. If all the formalities are completed delivery instructions are given by the sales department to stores department for delivering materials to customers. Pricing Pricing is very crucial decision for marketing management. The objectives of the firm is to get maximum profit, it is very much depends upon the correct decision in pricing. The price will have to accommodate with additional cost involved in respect of packaging,

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labelling etc. Consolidated marketing are done in IRE. Approved prices of various products are received from head office at time to time and maintained by sales department. Samples to customers Samples are sent to customers on their request or as per instructions from head office for their evaluation of suitability for their requirements. Free samples are sent to customers as per following procedure. Up to 500gm: HOD (marketing) intimates section head to prepare samples of required quantity along with gate pass. 501 to 1 kg: HOD (marketing) prior approval from unit head and follows the above procedure. Above 1kgs: Head office approval with information to unit head and following above procedure. Customer visit Every quarter five customer are selected for a visit to know the prevailing market condition Customer feedback Every year customer questionnaires are circulated to the customers and circulated to the customers and suitable strategy for future marketing. Competitors Even though the company enjoys a near monopoly till recently. But now it has some competitors in Domestic and foreign markets. Companies like Vaizag (A.P), VV Minerals, Tutucorin (T.N) in the domestic market and like RGC Ltd, Western sands(both in Australia) Titania and Tinfos (Norway), Richard’s Bay Minerals Ltd (South Africa) Major customers  KMML  CMRL  Steel companies  Ceramic companies  Reoinda  Kerr-McGee Corporation  Dugon The last three companies are regular customers who producing titanium di oxide (TiO2).

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Market segmentation The company finds its major market in foreign countries. The IREL exports mineral like Ilmenite, Zircon &Sillimanite to many countries mainly U.S.A, Canada, UK, France, West Germany, Japan etc. The head office in Mumbai makes the export contract .Also it supplies heavily to domestic market. Exporting is done through shipment. The company makes shipping bills and packs the items in cargo for distribution products in the domestic market. The company uses road transportation system. Market share The company has 90% market share in domestic market and 2% in foreign market. Till 1998, the company enjoyed monopoly in rare earth products. But now some competitors are present in other states. In Kerala still the company enjoys monopoly.

SALES FOR THE LAST FOUR YEARS Fig 1

400 350 300 250 200 150 100 50 0 2003-2004 2004-2005 2005-2006 266.82 295.45 3 06.5

360.12

NET S ES s AL (R in L akhs )

2006-07

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MINING DEPARTMENT
In IRE the raw material for production process are collected through mining process. The production process starts with the collection of beach sand from various places. For collecting this beach sand IRE uses the following two Methods: Sea Washing and dredging. Sea washing Raw sand is collected from sites where deposits are occurred due to natural beach washing .Presently IRE owns two sites one at Vellanathuruthu / Ponmana and one at 132 mining area. There is a heavy mineral deposit over a length of 22.5 km. They are found over or coastal belt having an average width of 800 meters. The sea waves deposits the mineral sand on the beach sand on the beach line and it is collected. Then it is send to the mineral separation plant Dredging Presently IRE, Chavara have two floating dredges (material recovery plant MRP) at Karithura and Puthenthura. These plants are constructed with the help of Neumann Equipments private limited Australia. Each plant was cost about Rs 10 crore as establishment cost. The plant DWUP used for the mechanized recovery of minerals from the beach sand. The DWUP consists of a floating dredging plant operated hydraulically and electrically which could be moved from one place to another based on the requirement. The plant is floating in an area having a water depth of 6 meters. The sand along with water in the form of slurry (a mixture of sand and water) is pumped to the heavy up gradation equipments. The equipments consist of a series of transfer bin rotating screens called trommel, spirals separators, hydrocyclones, pumps etc all being electrically operated. The DWUP can dredge about 40 to 60 tones per hour. The raw sand having an average at 40% heavy minerals is fed to the floating plant and updates it to 85 to 90% mineral content. The waste sand (quartz) from DWUP is used for backfill the dredged area.

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Department structure as follows

Senior Manager

Manager 132-mining

Manager VT mining

Manager Dredge plant

Tally clerk

Engineers (3)

Dy. Manager

Operators (16)

Wheel land operator

Workers (3)

Supervisor

Tally clerk

Workers (5)

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PRODUCTION DEPARTMENT
The main function of this department is to separate the minerals from raw sand using the physical resources so as to provide desired utility to customer while meeting other organizations objectives, efficiency and adaptability. IRE takes the nature boundary in the form of beach sand and separates it to extract rare earths and minerals. These materials go for a wide variety of products like ceramics paints, flints of lighters, detergent etc. IRE produces the major beach sand heavy minerals like Ilmenite, Rutile, Zircon, Sillimanite, brown Ilmenite and value added products like Zirflor and Microzir. MAJOR FUNCTIONS OF THE DEPARTMENT  Prepare detailed raw material plans and ensure the incoming Quality standard and their usage  Constantly evaluate alternative sources for raw materials, direct trial of the same and help management to firm up such source  Prepare detailed production plan in consistent with Company’s production objectives; direct and control the implementation of the same  Carry out investigation and guide management on long term measure towards achievement of goals of expansion in the area of production and quality  Evolve standard operating procedures for different process and equipment document standard operating data and periodical update the same Department structure as follows

GM Manager Production Engineers Operators Workers Fitters Electricians

Various tasks of production department

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1. Prepare detailed production plans consistent with company’s production objectives and direct control the same. 2. Constantly evaluate alternate source of raw materials, direct trials of the same and help management to firm up such sources. 3. Carryout investigation and guide management on long term measures towards achievements of the goals of expansion in the across of production and quality 4. co-ordinate with customer service department and initiate actions in different departments to take corrective actions from the points of the quality assurance to customers 5. Ensure implementation of safety measures in the operations, equipments and process to avoid dangers to the structures and man and equipment. 6. Evolve standard operating for different process and equipments, documents, standard operating data and periodically update the same 7. Provide leadership to the men under his jurisdiction motivating all the officers and workman in the production and control areas towards better performance and achievement of company’s objectives regarding production and maintenance of sound industrial relatives. Production process: The mineral sand from different mining areas as well as dredged sand from DWUP sites are fed to HUP, where it is passed through a set of spirals and is separated into concentrate and tailings (righter) fractions. The concentrate fraction is passed through WHIMS magnetic separator to get magnetic and non-magnetic fractions. The dewatered WHIMS magnetic fraction is dried in a Fluidised Bed Drier and fed to the High tension Separators to get conducting fraction which is the Ilmenite product and nonconducting fraction, which is enriched in Monazite, is sent to the monazite plant for further processing. The dewatered non-magnetic fraction from HUP is dried in another Fluidized Bed Drier and fed to High tension Separators to get conducting fraction and non-conducting fractions. The conducting fraction is fed to Magnetic separators to get three fractions viz, (1) Magnetic (Ilmenite product), (2) Non-magnetic (Rutile product) and also a middling fraction (Leucoxene product).

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The non-conducting fraction from the Rutile High Tension Separators Rutile plant is fed to another set of Magnetic separators, the magnetic fraction of which is fed to Monazite circuit, being rich in Monazite content. The non-magnetics fraction is fed to the Floatex Density Separator the overflow of which is rejected and the under flow is fed to spirals circuit. The heavies’ fraction from these spirals is further upquraded through wet tables, Magnetic separators, HTS etc to produce Zircon product. The tailings fraction from the spirals is treated in Kelsey Jig and wet tables to recover zircon. The tailings fraction from Kelsey Jig is treated in Spirals, Flotation cells etc to produce Sillimanite product.

PRINCIPLES OF SEPARATION

Principles used in mineral separation

Conductivity separation

Magnetic separation

Gravity separation

Froth floatation

Conductivity separation: The heavies from HUP plant is dried using fluidized Bed Dries (FBD). The dried mineral concentrate is subjected to electrostatic separation using high tension electrostatic separation and two fraction namely conductivity and non conductivity minerals are separated out. Magnetic separation: There are two types of magnetic separators are used. They are induced roll magnetic separation and exolons. Low intensity magnetic separator Ilmenite being highly magnetic and is subjected to low intensity magnetic separator
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High intensity magnetic separator Non magnetic fraction, which is contain Rutile and Leucoxene. Rutile is subjected to high intensity magnetic separator and Leucoxene is separated as magnetic fraction and Rutile as non magnetic. The non conductivity fraction of electrostatic separation, which contain Zircon, Monazite and Quartz is subjected to high intensity magnetic separation Monazite is separated as magnetic separation factor Mineral separation based on special gravity It is mainly used to separate out heavy and light fraction of minerals. There are three types of gravity separation Spiral gravity separation In this light fractions are thrown out aside and the heavies with high density are collected down Wet table gravity separation It is a moving table of water that separators out the light and heavy fractions. Floatex separation This is a column type of gravity separator. The input is fed from the top and water with high pressure and force is pumped from the other end thus the low density fractions are separated aside and the heavier are collected down. Floatation method This uses some chemicals for this purpose such as sodium silicate and oleic acid, which is used for the separation of Sillimanite.

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Flow diagram of the process

FBD
Rotary dryer Dry sand separation

Conducting

IRMS
Mag Non Mag
Mag

Ilmenite

HIRMS

Monazit e
concentrate

Mag

Non Mag

Zircon Flotation

Leucoxene

Rutile Float

Sillimanite

IRMS-Induced roll magnetic separator HIRMS-High intensity induced roll magnetic separator FBD-Fluidized bed drier

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HU P
Non conducting
HIRMS Non Mag

Gravity separation
Tails

Tails

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FINANCE DEPARTMENT
The department is headed by a senior manager at unit level. He is reporting to Gm at Bombay through Chief General Manager Chavara. Finance accounting package is in Oracle language has been implemented at finance and Accounts division. The main function of this department is to get all receipt and make all transactions to prepare final accounts. IREL annual report is publishing from Bombay gives only consolidated figures of all units together. Normally no annual report is published at unit level. The department structure as follows

Senior Manag er

Senior Account officer

Sec officer Sales

Sec officer Bills

Secofficer Establish ment

Sec officer EDP

Sec officer Costing

Sec officer Stores

Clerical Staff

Clerical Staff

Clerical Staff

Clerical Staff

Clerical Staff

Clerical Staff

Significance of accounting policies 1) Basis of accounting The financial statements are prepared under historical cost convention and in accordance with the generally accepted accounting principles on an accrual basis and comply with accounting standards referred to in section 211(3C) of the companies Act,1956 2) Use of estimates

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The presentation of financial statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known materialized. 3) Fixed assets Fixed assets are stated at their historical cost lees accumulated depreciation thereon. The cost of fixed assets comprises of the acquisition cost and any attributable cost of brining the Assets to its working condition for its intended use. Subsidy/ Contribution received for specific assets is reduced from the cost there of. The cost of self constructed fixed assets comprises of the costs directly relating to the specific assets and overheads consistently allocated at pre-determined percentage of direct salaries and wages In respect of assets discarded/ scrapped, the net book value as assessed by the salvage committee, whichever is lower is retained in the discarded/scrapped assets; the loss/gain with reference to the retained value is adjusted in the year of disposal. However , if any of these assets is not disposed off with in a period of three years from the date on which the same is discarded/ scrapped, the value retained is fully written off and charged to Profit and loss account for they year in which period of three year expires. Capital expenditure on assets not owned by the company is amortized over a period of five years commencing from the year in which benefit accrues to the company Borrowing costs that are attributable to the acquisition /construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing costs are charged as to revenue. Land held for mining includes cost of land, trees, buildings, shifting, charges, registration charges, stamp duty etc less registration if any Depreciation a) Depreciation on fixed assets is provided for on straight line basis at the rates and in the manner specified in the companies Act, 1956, expect for the following assets on the basis of technical evaluation -Slurry pumps @20% -computers@25% -The depreciation is continued to be charged till the net block becomes nil

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b) In respect of assets added during the year, depreciation is charged pro-rata from the date of addition c) In respect of assets discarded/demolished/destroyed during the year, depreciation is charged pro-rata up to the date of such discard/ demolition/ destruction d) Assets costing Rs5000 or less individually are depreciated at 100% in the year of addition e) In respect of fixed assets whose cost has undergone a change due to change in duties etc, depreciation is provided prospectively over the residual life of the asset. f) Cost of leasehold land is amortized over the period of the lease. The diminution due to mining in the value of land held for mining as ascertained by technical assessment at the end of every financial year is charged as depreciation. Investments Long term investments are stated at cost with provision to recognize a decline other than temporary in value. Investments classified as current investments are carried in the financial statements at the lower of cost and fair value determined on the basis of the category of the investment. Valuation of inventories a) Raw material and material in transit are valued at cost or net realizable value which ever is lower. b) Stores, spare parts and loose tools are valued at weighted average cost. c) Inventory of work in progress, intermediate products for further processing and finished products are valued at cost or net realizable value which ever is lower. d) Off grade material and contaminated stock is valued at 50% of lower cost or market value. e) Stores & spares not moved for more than 3 years are written down by 95% of the cost. Pre project expenditure Expenditure on feasibility studies, flow sheet development, presentation of project report, on new / expansion projects under its own auspices and /or joint venture to the extent not adjusted are grouped under ‘pre-project expenditure’ pending capitalization/ adjustment/ write off Loans & Advances The company has neither granted nor taken any loans , secured or unsecured to and from companies , firms or other parties required to be listed in the in the company Act 1956.

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PROFIT AFTER TAX THROUGH YEARS Fig 2

7000 6000 5000 4000 3000 2000 1000 0 2004-2005 2005-2006 2400.73 4240.85

6422.72

PAT (R in s L akhs )

2006-2007

Diagram Showing the EPS
743.67 800 700 491.04 600 500 400 300 200 100 2005-2006 2006-2007 0 E to 1000 R PS s

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HUMAN RESOURCE DEPARTEMENT
IREL Chavara takes place its highly motivated and trained human resource that has maximized its performance and there by its highest business growth and profit. Morale of employees remains facilitating smooth working of the company. Skill requirement related to different disciplines are identified and training programs and workshops are conducted to improve overall efficiency of the human resource. Department structure as follows

Unit head

HOD (HRM)

SH HRM I

SH HRM II

SH Training

SH Legal services

SH Security

In charge (Forum)

In charge (welfare) & (Time)

Subordi nates

Subordi nates

Subordi nates

Subordi nates

Subordi nates

HR department lead by General Manager and two deputy managers assisted him. The security department and time office are working under the General Manager of HR department. Four deputy officers and 14 clerical staffs are working under the deputy managers. People are the most important resources of an organization. The main functions of HRM are:

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1. Administration 2. Industrial relation 3. Training and employees welfare 4. Time management

1. Administration: The administrative function of HR department include  Manpower planning  Recruitment policy  Performance appraisal  Salary and wage administration  Industrial discipline  Maintaining service book and personal files  Maintaining reservation register.

Manpower planning Man power planning is important for any type of organization. It is the process which determines how an organization should move from its current man power position to its desired manpower position. For this purpose, the HR department at IRE collect feed back from all department in order to identify their manpower requirements of various department And then the HR department crosscheck whether there is any overstaffing in any of the departments If these department have excess of staff, they are transferred to those departments where there is a shortage. The company considers the number of employee presently working as significantly high. There is a problem that sometime the VRS can lead to scarcity to workers for particular job. At IREL using the process of multitasking the employees are made fit to work in other function also. By the VRS scheme more than 100 employees have been sent out with in span of three year Man power of the company: There are 569 employs in the company. Total officers are 92 and clerical staff 477. The numbers of contract worker are 1240.

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Recruitment policy: Recruitment in Chavara plant is done through local employment exchange for find out prospective workers. The office staffs and managers are recruited by the head office through tests and interviews. Recruitment criteria: For the recruitment of candidates, the candidates should be above18 years of age. The following steps are taken before the recruitment of employees. They are Govt. guide line, the recruitment only through employment exchange, notification in internet, and advertisement in newspaper should be needed. Application will be scrutinized with the help of a selection committee and eligible candidates are called for an interview. Selection: The steps followed in the selection process are • • • Inviting and receiving application Screening the application Selection test-the selection test of employees are include

 Aptitude test  Personality test  Achievement test  Trade test Appointment will be based on certain criteria’s like they are medically tested after that induction training should be given. After training for a period of one year or more they will be put as permanent employees. Performance appraisal: Appraisal is the evaluation of work quality or merit. In the case of IRE performance appraisal is a systematic evaluation of employees by superiors or others familiar with their performance. The company following mainly two types of methods 1. Straight ranking method Under this method men as a whole are compared from other men and ranked on the basis of overall performance. 2. Grading method Under this method certain categories of work such as excellent, very good, average, poor, very poor are established and defined actual performance of each employee then compared with the grade definitions and ranked.

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To evaluating the performance of workers are present. Last grade employees that are 8th& 9th grade, their work performance have been observed by supervisors. But in the case of executives MBO’s are observed their performance and efficiency. In IRE performance appraisal is done on a yearly basis to assess the performance of the employees. The appraisal is done by three persons. 1. Reporting officer 2. Reviewing officer 3. Evaluating officer F5rstly, the employees themselves do a self appraisal and this is given to the reporting officer and the person who has done self appraisal together identifies the key result areas and weight age is allotted to each one of them. This is usually done at the beginning of the year. The reporting officer checks whether the key result areas set where met by the appraisal or if there any deviation from it. And this is to be sent to reviewing officer and then evaluating officer. Various other factors such as the appraisal’s managerial skills like job knowledge, interpersonal skills are also included and guided, and that is allotted in the appraisal and there promotion is based solely seniority. Promotion In IREL promotion is given seniority based or based on experience. Promotion is a transfer of an employee to a job that pay more money or that enjoys some preferred status. Sometimes the company is considering the length of the service, education, training courses completed, previous work history etc. Sometimes the company is also considering ability, hard work, co-operations, honesty etc. Conditions for getting promotion:1. Average leave should not exist more than 15 days 2. Any Discipline Actions Should Not Be Taken During the Service Period 3. Should not applied for job in any other organization These are conditions for getting promotion Industrial discipline: Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is on receiving a complaint about a particular employee, explanation is asked. Employee will give an explanation before 15 days. If the explanation is not satisfied he will be given a charge sheet and will also conduct a domestic enquiry. For this purpose an enquiry officer is placed. After conducting the enquiry the report should be sent to the disciplinary committee, and if necessary, certain punishment may also give.

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Grievances handling There is a grievance cell in this company. Any employee can bring their grievance and complaints here. These grievances are discussed with top authorities and effective measures are taken. Transfer policies Transfer is the movement of an employee from one job to another without involving any substantial change in his duties, responsibilities. The company is following 4 methods a) Production transfer: When a particular department or job is faced with the pressure of work, its strength may supplement through from other departments. Such transfers are generally made where are department is overstaff and other is short of manpower. b) Replacement transfer: A replacement transfer is the transfer of a senior employee to replace with a junior employee or new one c) Shift transfer: When units in shifts, employees are transferred from one shift t o another on similar job. d) Department transfer: Transfer from one department to another department with in the plant or with in the organization. Industrial Relation Most of the disputes will be settled by the company and unions. If it is not cleared, they can approach to the government. The trade unions active at IRE are; 1) United Trade Union Congress (UTUC). 2) Indian National Trade Union Congress (INTUC). 3) All India Trade Union Congress (AITUC). 4) Travancore Minerals Workers Unions (UTUC (B)). 5) Indian Employees Rare Earth Federation (CITU). 6) Indian Rare Earth Mazdoor (BSM). These are the recognized unions. There are some criteria for the reorganization of a union; the union will have 15% of employees as their members. Also some participative forum is

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present, they are plants committee, Safety committee, &House building committee. These committees will have the equal participation. Training and development “Training is the act of increasing the knowledge and skill of an employee for during a particular job”. IRE adopted various techniques of training for increasing the mass productivity. The training program is restructured regularly in IRE. The objective of training and development in IRE  Increase the efficiency  Increase the morale of people  Reduce the absenteeism Procedures for training 1. Identify the training needs. The company identifies the training needs through 3 ways a. Organization analysis b. Task analysis c. Man analysis 2. Executives themselves will discuss the training needs. 3. Charting out the training plan for a period 4. Based on feed back individual training is given. Training methods IRE has mainly four types of training methods. In house training, External training, Vocational training and First aid training. The training method can be grouped on the basis of level of personnel in the organization. In house training: Other wise known as on the job training. In this method expert from outside, come to the organization and give training. External training: Also known as off the job training. The training is given out side of the organization. Vocational training; At least 0% of the employees should be trained every year. First aid training; 30 people in one batch and give them training. In house and external training

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Employees’ welfare: Two types of employees’ welfare are present in IREL. They are statutory welfare and non statutory welfare. Grativity, P.F, Pension, canteen, medical allowances are including in the statutory welfare. Festival allowance, LTC, Recreation, Tour facilities are includes in the non statutory welfare. Also the IREL gives some kind of allowances. They are Shift allowance: for employees working in shifts expect general shifts will get an allowance as follows 1 st shift (8 am to 4 pm) =10/-perday 2nd (4 pm to 12 pm) =15/-perday 3rd shift (12 pm to 8 am) =25/-per day Hard shift allowance Since the plant handles sand for its production, it creates a dust in the atmosphere considering this hard ship in work every employee of Chavara plant gets 135/- per month as hard ship allowance Uniform allowance Every employee is provided with two pairs of uniform in every year. Rs100/-per month as washing allowance is granted for all employees. Transportation allowance Every Employees (except officers) get Rs.700/- per month as conveyance allowance. Officers will get minimum Rs.1000/- per month as car allowances Canteen A round the clock canteen is provided for the employees. Company will charge Rs. 4/ per day from each employee. The canteen is under the control of the company. Attendance bonus To increase attendance in the company gives annual bonus of 12 days wages for every employee who have minimum 268 day presence Production incentives Every employee gets an amount of Rs. 525/-per year as production incentives from the profit. Leave facilities available in IRE Casual leave -15/year

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INDIAN RARE EARTHS LIMITED

Sick leave - 10/year (worker) -10 full or 20halfdays/year (officer) Earned leave -30 days/year (It can be max of 240 days) Surrender leave-Each employee can surrender max 90 days/year or 75% of earned leave. Other benefits  750ml milk/day  4 pears soap/month  One turkey or towel/year  Shoes (1pair)/year  One umbrella/ year  One raincoat/2 year  House loans up to 3.5 lakhs  Medical facilities etc  Educational allowance to workers children  Festival allowance.  Group insurance scheme.  Holiday facility.  Leave travel concession (LTC).

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INDIAN RARE EARTHS LIMITED

Time office There is a full fledged time office headed by Dy. administrative officer. It follows a punch card system. Different allowances for employees are given and it is mainly depend on attendance. It is providing according to the report from the time office. The Time office is working under the HRM department. The main function of this department is to maintain attendance records, leave and service records etc. There is an e-form called Muster which relates with the attendance. The various allowances to the employees like shift allowance, overtime allowance, attendance bonus all these records are maintained by the time office department. Also yearly attendance bonus is given to the employees. Attendance of 268 days per year -12 day’s salary Attendance of 262 days per year-10 day’s salary Attendance of 243 days per year-7 day’s salary The structure of time office as follows

GENERAL MANAGER Dy. administrative officer Senior Assistant Assistant Clerk Attender

For recording attendance punching system followed here. The attendance register usually keep in time office. The time office collects attendance from concerned authority also. And match with the punching system and avoid swapping. Time office has three centers for punching in convenience of employees. In mining area and dredging plant also keep mechanical punching machine. For the payment of salaries the time office is sending the records to the finance department. If the finance department asks for any clarification they will do it.

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INDIAN RARE EARTHS LIMITED

PURCHASE DEPARTMENT
The main function of department is procurement of materials at competitive price. All items including real materials other than raw sand are purchased by this department. Inn IRE purchase department has a prime importance

DGM

Senior Manager

Dy. Purchase Officer

Clerical Staff

Work Force

Formalities for placing an order 1. Organization of an indent 2. Tender enquiry 3. Opening the tender at the due date 4. make comparative statement 5. send it for technical evaluation 6. selection of the best one 7. if an negotiation needed it is done with party 8. Obtaining approval 9. place the order 10. Follow up

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INDIAN RARE EARTHS LIMITED

Formalities of purchase 1. Float inquiry to right source 2. scrutinize the quotations 3. Obtaining the financial approval 4. Release an order 5. Flow up for times requirement 6. Receipt at the store 7. Assistance to give payment in time.

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INDIAN RARE EARTHS LIMITED

STORES AND DESPATCH DEPARTMENT The stores department act as a store and supply chain, keeping inventory of the product produced on one hand and supplying requisite raw materials to the manifold department on the other hand. All the items in IRE are properly stored by this function area, including finished product inventory. It stores furnace oil, machine parts, office equipments and stationary etc. The department structure as follows.

Deputy General Manager

Manager (stores)

Store officer

Store officer

Clerical Staff

Clerical Staff

Workers

Workers

Stores fall under two categories  Capital items  Consumable items Capital items, which give return for long term. Revenue items or a consumable item means that which are consumable only for a short period.

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INDIAN RARE EARTHS LIMITED

Procurement of items of capital nature is to be made only after the approval by the competent authority duly verified by internal auditors with prior conclusion in the capital budget Stores action is responsible for arranging procurement of all items or purchase requisitions shall from the basis for arranging procurement or other departments, complete in all respects and duly approved by the controlling authority. Stores are purchased indigenously and from foreign suppliers through the adoption of competitive tendering. Tendering system is adopted it secure the most competitive tendering the most competitive rates and eliminate chance of favour. The worth of production in the plant is currently between 6-7 crores. Once in every three months inventory statistics is prepared and send to the head office in Mumbai. Stores follow Bin card and Cardex system. This department has three major functions as follows Receipt: The consignment items are properly verified with the receipts and requested the particular departments to made inspection on each items Storage: The received items are stored in proper locations and preserve them until the issue. Each item has its own Bin card .The quantity received, material issued, total remaining are noted in the Bin cards. Issue: The issue made in first in first out method. After the receipt of the material internal note from the department, the issues are made and same is recorded in the bin card Inventory Control Under the stores department the inventory control function is done. If excess stock is obtained, it is properly informed to the marketing department to promote sales and if any shortage obtained it is properly informed to production department to increase the production. Usually ABC inventory control method is adopted in IRE Chavara for control of inventories. The principal types of inventories are • • • Raw material and supply Goods in progress that is work in progress Finished good

For reduction of inventories four steps are taken in the stores and despatch department. They are computerization, Codification, standardization, and value addition. All the process in stores departments are computerized and Inventory management software is used for this purpose. Coding is given to all inventories. For this, alpha numerical coding is used. Material coding is help to realize what kind of inventories are stored. And location coding is help to find out where it is stored. By the use of standardization
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INDIAN RARE EARTHS LIMITED

physical verification of inventories are to be done and to be check whether the invoice number and purchase order are equal.

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INDIAN RARE EARTHS LIMITED

Despatch section Despatch section controls the transportation of the finished products to the out side of the company. When a customer made a complete settlement of money for the purchasing of a particular product from the company the marketing department placed a delivery order to the despatch department. The despatch department then prepares an invoice and t gave a copy to the customer. This d4eepartment also prepares gate pass and state Govt; declaration sheet.

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INDIAN RARE EARTHS LIMITED

QUALITY CONTROL DEPARTMENT
One of the quality control departments is to ensure quality products according to customer requirement. They harness beach sands in environmentally responsible manner to produce minerals and innovative value added products, which are used to make novel products required by customers. Secondly they are responsible for maintaining consistent quality of products to the satisfaction of the customers through quality management system implementation. They also aim at further improvement of product, technology or process. The quality control department is also responsible for maintaining consistency in quality of raw material during the processing, intermediate, and final product stages. They al make use of chemical and mineralogical testing methods in each stage. In addition to these functions this department also conducts research and development activities to support flow sheet development works and for solutions to process related problems. IREL Chavara got ISO 9001:2000 certifications for quality management system established for mining, manufacturing and marketing of mineral products for the certification body of TUV management service: Munich

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INDIAN RARE EARTHS LIMITED

SAFETY AND ENVIRONMENT DEPARTMENT
This department looks after the safety issues of the manpower. This team is lead by Manager (safety and environment). He is assisted by Dy. Manager (Safety and environment) .There are staff to assist these officers This department provides personnel protecting equipments like safety shoes, gun boots, helmet, goggles, mask, air muffs etc to workers from time to time. This department conducts mines safety week during August- September month in every year. There will be competition in safety slogan, safety song, safety speech etc. At induction level every employee gets an intense training in safety issues. Under safety department there is a committee “accident inspection committee”, to face unexpected accidents IRE has a safety and environmental protection committee consists of unit head as chairman and all department /section heads as members, employees union are also participating in the committee. This committee is meeting in every month to evaluate safety measures and forms new policies if necessary. Indian Rare Earth Limited, Chavara employs a state of art safety program to prevent accidents in the plant. The safety programs are responsible for 1) Displaying safety advertisement boards which help to create safety awareness among the workers 2) The safety committee is responsible for safety. An inspection conducted on a regular basis say daily, weekly and monthly. In addition to this a yearly inspection is conducted by internal and external experts. 3) This department is responsible for providing safety training and retraining to regular employees. They also provide instruction training for fresher and external expert training to all engineers 4) Safety committee also conducts monthly performance appraisal programs of their activities. 5) This department also has a special wing for accident investigation and reporting and accident prevention programs

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INDIAN RARE EARTHS LIMITED

MAINTENANCE AND PROJECT DEPARTMENT

MAINTENANCE DEPARTMENT This department stands for the maintenance of machineries in plants. This department is taking place daily inspection of the equipments; thereby they are able to understand the efficiency of the machine by looking into the performance of the machines. Sometimes the maintenance will go for 7days to 15 days. TYPES OF MAINTENANCE:The maintenance department gives different types of maintenance to the machineries like; 1) Electrical maintenance. 2) Mechanical maintenance. 3) Machine maintenance. 4) Preventive maintenance. 5) Break down maintenance. 6) Routine maintenance. 7) Block maintenance.

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INDIAN RARE EARTHS LIMITED

PROJECTS
Normally projects are carried out by the requirements of the production department. Then the maintenance department makes a feasibility study. Then again the maintenance department consults with the user department. Then the maintenance department calculates return on investment (ROI) and pay back period (PBP). After that, these will be sent to the head office at Mumbai. If the head office asks for any clarification, the maintenance department will clarify it.

Departmental Structure as follows

Unit Head

HOD
Maintenanc e

SH SH SH SH Mec HUP Auto h
DWU P-I

SH
DWU P-II

SH
DWU P-III

SH

MSP- MSP- DSHIE II I F

SH

SH

SH

SH

SH
ELE C MSP

ELE ELE C C INST HUP

Maintenance personnel

PROCESS MODULE:REQUIREMENTS 1. Maintenance requirements identified through maintenance plan and schedule. 2. Breakdown/repair/modification/intimation received from other departments.

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INDIAN RARE EARTHS LIMITED

INPUT:1) Maintenance services from outsiders. 2) Spare parts produced through purchase and stores. OUTPUT:1) Ensuring the availability of plant and equipment through preventive maintenance. 2) Improvements through modification.

OBJECTIVE

OBJECTIVE TARGET FOR 2008-2009 Min: 98 %

SUPPORTING THE SYSTEM QMS

Improving the availability QMS Improvement power factor Premises lighting tools

plant

of Providing APFC panel at EMS DWUP-3 from To provide at HUP, Administration building, 1) All Ilmenite dump area. 2) Behind fire store room. EMS OHMS

Clamping of loose Canteen building.

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INDIAN RARE EARTHS LIMITED

SECURITY DEPARTMENT
Security of company assets and premises laid on the staff of security department It is lead by security manager and he is assisted by 6 head security officers and 26 security guard The security department gives security of company and also maintains the entry of employees and visitors. According to ISO procedure they maintain the discipline of employees like uniform visitors pass etc Major threats Two major threats they are present in IRE they are 1) sabotage 2) Theft Sabotage If sabotage happens there will be a control room and it accessible at every time. In case of emergency the system will automatically shut down and emergency alarm is there. And all the employees are required to assemble in assembly points. Theft The boundary walls of the company were not clear. And also the neighboring people are jobless people because they have a tendency to theft. Department structure as follows .

GM

Mgr (Security)

Head Security (6)

Security Guards (26)
There are 32 securities in total. The security department gives security in mining area also.7 securities are in Puthenthura, 7 securities in Vellanathuruthu and 16 in plants.

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INDIAN RARE EARTHS LIMITED

MEDICAL DEPARTMENT
IREL Chavara has a full fledged dispensary in the company. It comprises of two doctors, three pharmacist and three nurses. Structure of the department as follows

Dy. GM (Medical)

Senior manager (medical)

Pharmacist

Nurses

Every family member of the employee is eligible for free attendance and treatment in the dispensary. Cases beyond the scope the dispensary will refer to major hospitals in kollam and karunagapally (referred hospitals). The whole payment is such cases are done by the company itself. Dispensary is working around the clock.

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INDIAN RARE EARTHS LIMITED

CIVIL DEPARTMENT

Civil department consists of Dy. Manager (civil), two Dy. Officer and the work force. They frequently monitor company structures and maintain them properly. In case of new projects, the basic infrastructure has to be erected by this department. General Manager (Resource) Dy. General Manager Resources) Supervisors

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INDIAN RARE EARTHS LIMITED

FINDINGS AND ANALYSIS
Strength 1. Highly skilled manpower 2. Efficient management 3. Modernized plant having foreign and Indian technology 4. Cordial relation ship between management and unions 5. The setting up of IREL has resulted as in a considerable upliftment of the social and economic conditions of the people living in surrounding areas. 6. In keeping with the environmental concerns Indian Rare Earth as adopted ecofriendly the measures with in the surrounding. Weakness 1. Situated in Kerala where labour charges are high and also political influence are regarding labour issues. 2. Only a small part of total plant capacity is utilized 3. Due to monopoly of market sales promotional activities are very less 4. Poor distribution system 5. Company is a central government undertaking and as a result all major and minor decisions have to be taken undergoing a lot of formalities and take more time. Opportunities The company has in the part associated with setting up of projects for the department of Atomic Energy (DAE) viz the Uranium metal a plant at Bombay and the uranium corporation of India at Jaduguda in Bihar state. In the near future it plans to under take more such projects on behalf of DAE. Threats 1. Possible changes in government policy 2. Increasing trend of transportation cost 3. Change in social and political scene to increase the price of raw material.

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INDIAN RARE EARTHS LIMITED

CONCLUSION IREL is one among well performing companies in Kerala, engaged in the process of processing rare earths products available among the coastal belts. IRE is reaching new boundaries with its performance. IRE was incorporated on 18th August 1950 as a Pvt. ltd company under the Indian company’s act of 1913 jointly owned by the govt: of India and the govt: of Travancore Cochin. In 1951, IREL became a public sector undertaking and two mineral separation plants, one at Manavalakurichi in Tamil Nadu (1967) and the other at Chavara in Kerala state (1970) were set up.

The organization study at IRE was an unforgettable experience. The organizational atmosphere prevailing at IRE is not that of a timid public sector unit. The concern for the environment and social responsibility are worth studying. The study helped in having a practical exposure to real practice in organization. The study provides insight into the functioning and coordination of departments in an effective organization.

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INDIAN RARE EARTHS LIMITED

BIBLIOGRAPHY:-

• • • • • • •

IRE Brochure. Departmental procedure manual (DPM) of IREL. IRE Annual report. www.irel.gov.in www.wikipedia.org U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2001 Kothari C. R. Research Methodology Methods and Techniques 2ND Edition New Age International Publishers 2008

Chhabra T. N Human Resource Management – Concept and issues Fifth edition Dhanpant Rai & Co(P) Ltd. 2008

Kotler Philip Marketing Management- A South Asian Perspective 12th Edition Pearson Education 2007

Chase B Richard, Aquilano J Nicholas, Jacobs Robert F, Agarwal K Nithin Operation Management For Competitive Advantage 11th Edition The McGrawHill Publishing Company Ltd. 2006

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INDIAN RARE EARTHS LIMITED

COMPARATIVE P&L ACCOUNT for the year ending
31/03/07 Particulars I Income
Gross sales less: excise duty NET SALES compensation for processing Thorium Increase/Decrease in Stock Other Income

31/03/2006

31/03/2 005 Rs in Lakhs
29914.75 367.2 29547.55 0.00 -1683.36 1709.34 29573.53

36,053.22
41.22 36012.00 706.54 -2682.11 2305.48 36341.91

30,649.50
46.54 30602.96 775.46 799.43 1689.75 33867.60

II Expenditure
Materials Consumed Employee's Remuneration benefits Manufacturing & Other Expenses Interest Capital Expenditure not represented by assets owned by the Co. 3433.31 10378.1 11333.86 17.77 2627.40 9996.49 12031.56 20.22 1642.53 8001.32 10996.51 57.85

12.40 26908.52

12.40 26163.36

12.40 22238.74

III Profit Before extra ordinary items, prior adjustments & taxation
Extraordinary items & prior Period Adjustments PBT Provision For Tax for current year Income Tax deferred Tax charges(credit) FBT PAT Balance brought forward

9433.39
-571.84 10005.23 4241.85 0.00 -749.95 90.61 6422.72 17324.55

7704.24
20.10 7684.14 3710.15 412.43 -754.31 75.00 4240.85 14776.36

7334.79
261.65 6073.14 3575.66 807.68 -710.93 0.00 2400.73 12953.67

IV PROFIT Available for appropriation
Appropriations: Proposed Dividend Tax on dividend Transfer to gen Reserve Balance carried to Balance Sheet TOTAL

23747.27
1727.3 293.85 500.00 21226.42

19017.21
10445.96 146.7 500.00 17324.55

15354.40
506.94 71.1 0.00 14776.36

23747.27

19017.21

15354.4

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INDIAN RARE EARTHS LIMITED

Comparative Balance sheet
31/03/ 07 1. Sources of funds: a) Capital b) Reserves & surplus 2.Loan funds a) Secured loans b) Unsecured loans 17.68 5,534.03 5,551.71 Total Application of fund 1.Fixed asset a) Gross block b) Less depreciation c) Net block d) Capital work in progress e) Capital expenditure not represented by assets f) Asset pending disposal 2.Investment 3.Deferred tax assets(net) 4.Current assets, loans and advances a. Current assets b. Inventories c. Sundry debtors d. Cash and bank balance e. Loans and advances Less current liability and provisions a. Current liabilities b. Provisions Net current asset Miscellaneous expenditure 37235.00 20,719.54 16,515.46 4,897.03 12.40 16.15 21,441.04 545.32 4237.34 32865.67 19,167.45 13698.22 2,503.80 24.80 50.90 16,277.92 36,424.71 25.99 6,640.84 6.666.83 33,137.96 8,636.50 22,236.50 30,873.00 8,636.50 17834.63 26471.13 31/07/07

4829.13 3169.17 2021.24 6239.96 34439.50 4097.05 20258.23 24,355.28 10084.22 116.79 36,424.71

7614.77 2140.09 18645.01 6062.13 34462.00 3974.69 21207.36 21,207.36 13254.64 116.79 33,137.96

Organization chart
Unit Head

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DGM MIN

GM HR

GM
R&M R

SM IA

DGM (PS)

GM Fin 62

INDIAN RARE EARTHS LIMITED

DGM Prod

SM m&p

Mgr proj

Mgr proj Mgr mec Mgr

Mgr mai n

Mgr mai n

M gr el e

Mgr mai n

M gr m ai

M gr pr od

M gr T &

M gr LS

Mgr mis

Mgr pur

Mgr S&

D

D M

S

D M PR

D M

D M

M

M

D M

D M

D M

D M

D M

D M

D M

D M

D M

D M

D M

D M

E

M

P

P

P

P

P

M

R

P

S

fI

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