SUSTAINABLE DEVELOPMENT

IN MINING (INDIA)
5.1.0 INTRODUCTION (SUSTAINABLEDEVELOPMENT)

Minerals and metals have played a crucial role in the development and
continuation of human civilization. Minerals are backbone for industrial
development of any country in the world. Mining or mineral development
comprising exploration of the nature's mineral reserves, their extradion from below
the earth's crust in solid, gaseous and liquid forms and subsequent processing and
recovery of derivative-products for industrial and commercial purposes have been an
important human and business activity over the centuries (Auty and Richard, 1993).
The (Westem) view that nature exists for human use, primarily as a resource rather
than as something only to be admired or contemplated for enjoyment, has underlined
most of development thinking. In fad, modemisation and belief in progress are
defined in terms of human capacities to harness and use nature for mankind's
benefit. At the same time there has been a nagging guilt about the consequences of
this use. Even thinking in ancient India represented this approach (and the guilt) as
may be seen from the following quotation from the Atharva Veda:

"Oh Earth, whatever we dig out h m you must have to be filled up again,
and restored as fast as possible. Oh Pure one we do not intend to hit you at your
heart of hearts".

These failings of traditional economic development served as the impetus for

the sustainable development movement world-wide (Azapagic, 2004). At the
international level, the growing concern about the undesirable effects of the
traditional economic development policies started in the early 1970s and was
reflected in the deliberations and outcomes of a series of national and international
conferences, round table meetings and workshops starting with the United Nations
Conference on the Human Settlement held in Stockholm in 1972 (Cordes, 2000).
This was followed by the World Commission on Environment and Development in
1982-1987, the United Nations Conference on Environment and Development in Rio
de Janeiro, Brazil in 1992 and the World Summit on Sustainable Development in
Johannesburg, South Africa in 2002 (Castrilli, 2000). These conferences and their
reports, in particular the Brundtland Commission Report, the Earth Charter and
Agenda 21 of the Rio Conference, defined and framed the imperatives of sustainable
development and enunciated various principles and processes to be followed in
operationalizing its objectives and principles including changes to be brought about
in existing attitudes and values for protection of mother earth.

In India, the movement in support of environmental, social concerns and

sustainable development really started in the early 1980s, partly influenced by
international developments but mainly due to the devastating effects of the Bhopal
gas tragedy in 1984 in Madhya Pradesh.

The Bhopal tragedy was followed by a number of policy statements and

legislations in order to meet environmental challenges. Economic reforms and
liberalisation introduced in 1991 along with the forces of globalization to which the
country was now exposed, no doubt accelerated the pace of Gross Domestic Product
(GDP)growth but also raised concerns about inequality, poverty, damage to the
environment and natural resources (Hilson and Murck, 2000). These issues and the
rise of naxalsidtermrist activities in the country's (Fig.5.1.1) mineral-rich forest
areas across a number of states have been ascribed to the resource-intensive, urban-

industrial growth model that has resulted in large-scale exploitation of the natural
resources (land, forests and minerals) and to the consequent deprivation and
marginalization of the indigenous people (scheduled tribes and scheduled castes)
residing in these areas.
Fig. 5.1.1 : Naxalite Affected Districts in India (Bhushan, C. and Zeya Hazra, 2008)
 In this scenario, mining has attracted a special attention, especially from
environmental activists and civil society groups. As it is mining is perceived as one
of the most "dirty" and polluting industry on the earth, amenable to corruption and
illegal operations (Jeffery, 2005). It is also inherently an unsustainable activity being
concerned with the exploitation of non-renewable resources, causing damage to the
natural environment. While minerals are (no doubt) needed for economic
development, mineral extraction tends to have considerable negative environmental
and social effects (Kohli and Menon, 2005). Mining, strip mining in particular,
destroys large areas of habitat, damages soil, destroys vegetation and can even
change eco system or wipe out local population. Mineral development involves use
of large tracts of land and there are often problems and disagreements around issues
such as resettlement, compensation and land rights of the indigenous
people. Mining activities can bring benefits to the local communities through
creation of jobs, encouragement to business and infrastructure development
(Michael Cernea, 2000).

Conversely, they may also generate social tensions and economic problems
through loss of traditional livelihoods and culture, involuntary resettlement and
inequitable distribution of benefits and costs within the communities, inadequate
infrastructure development and health concerns due to exposure of populations to
chemicals and particles and workers' safety (Otto and Cordes, 2000). More than
most other industrial activities, mineral extraction tends to leave a strong
environmental footprint on environment of surrounding area and social life of living
people in the area. The environmental problems associated with mining relate to
destruction of land and forests (Fig.5.1.2), soil erosion, mine tailings as well as
contamination of surface, ground water (Fig.5.1.3) and air from toxic wastes and ore
particles. Although these effects vary between the different types of minerals and the
stages of their production, these can have profound impact near the project site, in
the neighbouring areas as also at the global level (e.g. through global warming).
Fig. 5.1.2 : Forest and Mineral Areas Map of India (Bhushan and Zeya Hilzra, 2008)
Fig. 5.1.3 : Rivers and Mineral Areas Map of India (Bhushan and Zeya HW. 2008)
 The major mining districts of the country are not only ecologically
devastated and polluted, they are also the poorest and the most backward districts of
the country.Consider the following examples:

9 Keonjhar (Odisha), where mining for iron ore and manganese started in the
1950s and which currently produces more than one-fifth of India's iron ore, is
ecologically devastated. Its forests have turned into wasteland and its rivers and
air have been extensively polluted. Even worse, mining has done nothing for
Keonjhar's economic wellbeing. Keonjhar has more than 60 per cent of its
population below poverty line and is ranked 24'b out of the 30 districts of
Odisha in the Human Development Index (HDI).

B Bellary (Karnataka) produces about 19 per cent of India's iron ore (most of
which is exported). It boasts of the maximum number of private aircrafts in the
country, but majority of its population remains impoverished. Agricultural land
has been devastated due to mining and dust levels in the air are leading to
large-scale health problems. Bellary is ranked third from bottom in HDI in
Karnataka.

B Gulbarga (Kamataka) is the biggest limestone producing district of India. It

is ranked second from bottom in HDI in Kamataka.

B Koraput (Odisha) alone produces about 40 per cent of India's bauxite. Close
to 78 per cent of its population lives below poverty line, and the district ranks
27th in Odisha in HDI.

B Jajpur (Odisha) produces 95 per cent of India's chromite (most of which is

exported) -- the people of Jajpur have got hexavalent chromium pollution in
return. Jajpur is ranked 22nd in Odisha in HDI.

B Bhiwara (Rajasthan) produces more than 80 per cent of India's zinc. It is

ranked 25th out of the 32 districts of Rajasthan in HDI.

9 Cuddalore (Tamil Nadu) produces three-fourth of India's lignite.

Groundwater near the lignite mines has been depleted, leaving local
 agriculturists high and dry. More than half of Cuddalore's population lives
below the poverty line and it is ranked 16th out of the 30 districts of Tamil
Nadu in HDI.

P Sonebhadra is the most mined district of Uttar Pradesh. It produces more than
20 million tonne of coal every year, apart from thousands of tonnes of
limestone and dolomite. It is also one of the most backward districts of the
state. About 55 per cent of its population lives below the poverty line and its
literacy rate is less than 50 per cent.

P Udaipur has the maximum area under mining in Rajasthan; it is ranked 271h
out of the 29 districts of the state in HDI. The phenomenon of 'resource curse'
puts most of the major mining districts in India in the list of 150 most
backward districts in the country. Although royalties are put in place for the
extractive industry, this does not ensure financial flows to the affected
communities.

Mineral wastes (i.e. overburden and waste rock as well as solid and liquid
tailings) and contaminated process water and m off are the two major releases from
mining; and their management presents a great challenge to the mineral and mining
industry. Mine wastes result h m the extraction of mineral ores as metals and
mineral resources are found in nature mixed with a large proportion of impurities
(Parris and Kates, 2003). In case of metalliferous mining (Iron Ore), for example,
high volumes of wastes are produced because of low or very low concentration of
metal in the ore. Also, spills from tailings and release of toxic waters are responsible
for serious negative environmental impact of mining although adequate technology
is available to reduce or even eliminate these risks (Hilson and Murck, 2000).

A mineral project also has impacts--some beneficial and others harmful--on

the society, in particular on the local community inhabiting the mining project area
(Hanwck, 2001). Displacing the people from mine area. Removing the vegetation in
the area. In many developing countries, where mining projects are located in remote
regions (forest areas), these communities mostly belong to indigenous people
(scheduled tribes in India). While mining projects are seen as triggering
development in relatively backward regions, providing opportunities for
employment and infkastructure facilities like roads, schools, hospitals etc., these also
result in displacement of people, loss of traditional livelihood, disruption to the age-
old socio-cultural life, change in population dynamics through immigration of
outsiders, increase in the cost of living and of land value, water scarcity,
environmental pollution and health hazards (Cordes, 2000). Therefore, the prospect
of a new mine can promise economic benefits, but it also raises many fears and
people are genuinely concerned that it will damage the environment and interfere
with their traditional and stable life style. In many regions of the world, there is a
trend of increasing assertiveness (sometimes bordering on violence) on the part of
local communities who want to exercise considerable influence over decision-
making processes in mining (Emerson,1984).

5.1.1 Concepts, Principles and Applications

There are many definitions of 'sustainable development', but what is most

frequently quoted is that formulated by the Brundtland Commission in 1987 (Hilson,
and Basu, 2003). According to this definition, "sustainable development" is that
pattern of development which "meets the needs of the present without compromising
the ability of the future generations to meet their own needs."

The 2002 World Summit on Sustainable Development held in Johannesburg,

South Africa further elaborated the definition through its inclusion of "economic
development, social development and environmental protection - at the local,
regional and global levels" as the "interdependent and mutually reinforcing pillars of
sustainable development". The 2005 World Summit (14-16 September, 2005)
confirmed the formulation while reaffirming its commitment to achieve the goal of
sustainable development as enshrined in various declarations including Agenda 21,
the Rio principles and the 2000 Millennium Declaration goals which in one sense
contributed to definitional elaboration by laying down short-term (by 2015)
development targets in areas such as eradication of extreme poverty, hunger and
malnutrition, primary education and environmental sustainability. Also, much work
has gone into the development of quantitative indicators of sustainable development
which in turn have contributed to definitional profligacy. (Parris and Kates, 2003)
have used taxonomy (Table 5.1 .l) to describe the goals in these formulations.
Table 5.1.1 : Taxonomy of sustainable development goals

What is to be sustained What is to be developed

Nature People
9 Earth b Child survival
9 Biodiversity D Life expectancy
9 Ecosystems 9 Education
9 Equity
9 Equal opportunity
Life Support Economy
9 Ecosystem Services D Wealth
D Resources 9 Productive Sectors
k Environment D Consumption
Community Society
9 Culture 9 Institutions
9 Groups 9 Social Capital
9 Places 9 States
9 Regions

Source :Pmis and Kates, 2003

All these definitions have some combination of development and

environment as well as equity; however, there are differences on the emphasis
placed on what is to be developed, what is to be sustained and how to link
environment with development. "In practice", to quote (Pams and Kates, 2003),
''groups and institutions tend to acknowledge the many multiple and conflicting
objectives to be both sustained and developed but then adopt implicit objective
hctions that take the forms such as: sustain only, develop mostly, develop only but
sustain somewhat, sustain or develop - for favoured objectives." Similarly, the
time period of concern, ambiguously described in the Brundtland definition as "now
and in the future" has differed widely, fiom one generation (when almost ev-g
is sustainable) to forever (when nothing may be sustainable).
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 There are two possible sources for limits to economic growth - the limited
capacity of natural environments to receive the wastes generated by economic
systems and the W e nature of the exhaustible resources (Hackett, 2006). The
overall scale of economic activity thus must be limited so that it remains within the
carrying capacity of the remaining natural capital. Critics of the limits to growth
theory of course have argued that change and advances in technology, exploration
and discovery of more natural resources, new measures to control the amount of
waste entering the environment and improved pollution control technologies could
expand the horizon beyond the so-called limits. In any case, given the uncertainties
present, a precautionary approach needs to be adopted with a built-in safety margin
(Rio Declaration on Environment and Development (Agenda 21,1992)).

5.1.2 Sustainable Development and Mineral Exploration (Mining)

There is a view, sometimes championed by social and non-government

activists that the concept of sustainable development is incompatible with the
extractive mineral industry and that mining is mherently unsustainable as it involves
exploitation of the society's non - renewable resources (Shields and Solar, 2005).
The material fabric of a society is largely built with mineral products and
metallurgical and technological advances have defined advances in civilization from
ancient times, Using mineral production to sustain economic well-being is important
for local communities, for the region (especially a backward region) blessed with
mineral resources and the entire nation itself. For many less developed areas, mining
underpins industrial development which in turn leads to technological upgradation,
skill development and diversification of the economic base (The Earth Charter
Commission, 2000).

The sustainability of the mining industry stands on three pillars: economic,

environmental and social. Striving for sustainable development involves balancing
the inevitable conflicts in these three areas (Azapagic, 2004). It is also clear that
encompassing all these is the issue of governance which is required to provide and
maintain legal and regulatory framework in order to further support the
sustainability of the minerals industry. Economic viability of the mineral sector is
essential for sustainable development as the industry can provide various economic
benefits including employment and generation of wealth only when it makes profit.
A mining company, like any other business entity, needs to perform well by
minimizing costs and maximizing profits in order to provide competitive return to its
shareholders (The United Nations World Summit Outcome, 2005).

Mining involves depletion of non-renewable resources and most of the risks

of mining activities at the local level relate to environmental impacts as a result of
the generation of large volume of wastes, air emission and discharge of liquid
efluents (Campbell and Scott, 1980). There are also problems relating to damage to
land and destruction of habitat and visual impact of an open pit or waste dump.
Mitigation of environmental impacts of mining and progressive rehabilitation of the
affected area is bdamental to sustainable development in this sector.

One of the major technological challenges relates to management of mine

wastes including tailings and process water runoff. Mine closure and reclamation of
mined lands after cessation of operations is an established practice in developed
mining countries. It is possible to return the reclaimed mine sites to their previous
natural state thereby recreating habitat or making these available for agriculture or
for establishing public facilities such as sports and educational institutions, as has
happened in Maheswari Minerals Laterite mine in Andhra Pradesh, and Gujarat
Mineral Development Corporation's Lignite Mines in Bhavnagar, Gujarat, India.

5.1.3 Sustainability and the Mineral Cycle

Mining and agriculture have been the two basic activities of mankind that
have advanced human civilization over the centuries (Warhurst and Noronha, 2000).
However, unlike agriculture which has some flexibility in the choice of location,
mining can take place only where minerals are present and are economically viable
to exploit. Mining involves exploration for and exploitation of mineral deposits by
surface and underground methods, both involving change to environment and
serious environmental and social consequences.
 In considering the subject of the application of sustainable development
principles to mining cycle operations, the discussion in this research is restricted to
surface mining methods, mainly in respect of laterite and lignite minerals. It is felt
that such an approach will keep the study within manageable limits while at the
same time providing a meaningful insight into the main issues involved.

A mining project normally has the following phases of mine life cycle:

9 Exploration

P Mine planning

9 Construction

9 Mineral Extraction

B Mine closure
B Reclamation and Rehabilitation (post-closure scenario)

Interfacing with all these stages, in fact with the mining project in entirety,
are the reactions and expectations of the local community of the area where the
mining project is established or proposed to be established.

The sustainability principles that have relevance for all the different stages of
the mining cycle may be summarized as follows:

9 Environmental management and mitigation of environmental impacts.

9 The Precautionary principle Economically viable mineral development
within the carrying capacity of the environment.

P Scientific mining with efficiency-increasing technologies, mining and

management practices.

h Continuous technological improvements in mining.

P Management of socio-economic impacts and creation of substitute capital

in the form of social and physical infrastructure.

B Inter and intra-generational equity.

P Stakeholder engagement and consultation with local communities.

B Transparency and effective communication.

 In operational t m s , sustainable development in the mineral sector implies a
mix of scientific mining, improved environmental management including pollution
control and enhanced socio-economic development, especially for local
communities in mining areas.

(A) Scientific Mining

Scientific mining comprises mining methods and practices originating from a

systematic approach to mine development and operation. It involves adoption and
continuous development of technology reflected in the advances in equipment and
management practices. Scientific mining ensures resource efficiency, both in the
management and extraction of minerals.

(B) Minimizing Environmental Impacts

In order to contribute to sustainable development, a mine must minimize

environmental impacts throughout the mining life cycle from exploration, through
construction and extraction to closure and reclamation (Chandra Bhushan et al,
2008). This is achieved through the adoption of effective environmental
management which includes the following elements: Environmental Impact
Assessment (EIA) and preparation of Environment Management Plan (EMP) during
mine planning (or pre-feasibilityJfeasibility stage).

> Biodiversity management including mitigating the effects on flora and

fauna and preventing pollution of rivers, streams and creeks.

> Pollution control in respect of airborne contaminants,noise and vibration.

P Management of hazardous substances including process reagents, oil and

fuel.

> Managing acid mine drainage.

> Tailings management including recycling and reuse.

P Management of water including that generated during mining operations,

mineral handling and processes.
(C) Technological Advancement

Most technological advances in recent years have taken place as a result of

the application of information technologies (IT) and computers to mining methods at
different stages of mining operations. Significant advances in geochemistry and
geophysics (including airborne geophysical and geochemical analysis) have
increased the accuracy and range of data for interpreting geophysical environment.
Other innovations in mineral exploration include satellite, remote sensing
technology, 3D modeling, the use of global positions system (GPS)and low-impact
seismic methods that minimize environmental damage and increase productivity.

@) Mine Closure and Rehabilitation

The final stages of the mining cycle, namely mine closure and associated
reclamation and rehabilitation of lands earlier utilized for mineral extraction have
perhaps the most important significance for sustainable development in the mineral
sector (Sheldon, Strongman and Weber-Fahr, 2002). For, properly executed in a
holistic manner and with sound reclamation practices, the processes in these stages
have the potential to establish that mining and quarrying are only temporary uses of
land. The principles of sustainability would require these lands to be returned for
some other beneficial use once mining operations are finally over.

Historically, when an ore body was exhausted and production ceased

permanently, mines were closed and abandoned. Today mine closure normally
requires the reclamation and rehabilitation of the land in and around the mine
concerned. Reclaimed mine sites may then be returned to their natural state thereby
recreating habitat (such as forests).The design and phasing of the closure must
identify and manage the factors that will make for the security and safety of the mine
site (Divan and Rosencranz, 2001). The aim of the closure process including
reclamation/rehabilitation is to restore "the surrounding environment to a state,
resembling as closely as possible that which existed prior to the commencement of
mining, as measured by both chemical and biological parameters" and "to ensure
that environmental restoration is adequate to allow the establishment of a diverse
and functional ecosystem in the area" (Heikkinen et al., 2008).

The closure process, therefore, must take care that the environmental
problems arising during mining operations and those likely to arise during the post-
closure scenario are comprehensively addressed. Also the socio-economic issues of
mine closure and its impact on local communities, workers and their families and the
local economy need to be assessed and managed.

Environmentally,a mine closure plan must ensure that:

9 The mine infrastructure (roads, buildings, spoil heaps, tailings and waste
rock areas etc.) is evaluated and those posing safety risks are removed
from the site.

P Hazardous substances are identified and disposed off in a controlled

manner according to hazardous waste management regulations.

P Post abandonment risks are minimized.

P A healthy environment is made available for the future.

P Adequate (surface and ground) water supplies, clean air and productive
land are made available for future operations.

P Progressive rehabilitation and revegetation of land takes place along with

appropriate landscaping for any future land use activities planned for the
area.

(E) Stakeholder Engagement

In fact, stakeholder engagement that includes effective consultation with

local communities is an inclusive process which encompasses all interested parties
and should occur throughout all the phases of the mine life cycle: exploration,
evaluation, construction, operation and post-operation (Collier, Paul and Anke
Hoeffler, 2006). The substantive issues of consultation will of course differ fiom one
stage to the other depending on the nature of the mining activity in a particular phase
and its potential impact on the community. Community relations and consultations
should, however, be a continuous process as it enables a mine to obtain its "social
license to operate" and avoid community opposition and confrontation that can
disrupt mining operations in any phase.

(F) Local Community Development

Community engagement is closely linked to community development which,

besides interactions with the community, implies "the process of increasing the
strength and effectiveness of communities, improving people's quality of life, and
enabling people to achieve greater long-term control over their lives". In operational
terms community development involves designing and implementing local area
development plans, programmes, and projects, often in co-ordination with
government and non-government agencies operating in a mining project area. For, it
is only through investments for the development of physical and social infrastructure
and human resources development in its (project) area that a mine will be able to
create substitute capital in order to compensate for the loss of natural resources
(capital) as a result of its mining operations. There are opportunities for socio-
economic investments in different stages of a mining project's life cycle, as
illustrated in the (Table 5.1.2).

However, in the ultimate analysis, the most beneficial and sustainable legacy
of a mining operation could be to leave behind in a community skills and capacities
that education and training programmes provide to the local people in a mining area.
This will ensure sustainability in as much as one local asset (non - renewable
natural resource capital) will be replaced by another asset, namely local human
and social capital.
Table 5.12 : Opportunitiesfor Local Area Development

Project Stage Opportunities

Exploration and Mine Planning Identification of local stakeholders, their

empowerment through engagement and
participation in Planning.
Initiating partnerships with stakeholders.
Support for local infrastructure such as site
clearance, roads and water supply @ore holes).
Human resources development.

Construction Land clearance and development, building

access roads and utilities.
Displacement and relocation of communities
and building infrastructure for them.
Short-termjob opportunities.
Training and skills development.

Extradon and operation Mining operation serving as catalyst for local

economic development.
Development of local enterprises for providing
goods and services to the mine including
maintenance services.
Human resources development and education
programmes in the project areas -Social
infrastructure such as schools (including
technical institutes), hospitals and health
facilities, sports facilities etc.
Promotion of economic opporhmities in
agriculture, soil conservation, minor irrigation,
small enterprises development, local
handicrafts and other various self-help
activities.

Mine closure and rehabilitation Assistance in diversification of the local

economy.
Development of strong asset and
infrastructural base for post-closure economic

I
Source :Warhurst, 2WO.
activities.
 A mining company thus, can be a catalyst for the development in its area of
operation, as also for building up other non-mining sustainable income sources in
the area so that communities can develop independent of the mine and can sunive
after mine closure. In order to make effective use of its investments, it has to
coordinate with other local development programme run by government and non-
government agencies operating in its mining area. And if communities benefit
greatly from a mining operation, then they will develop significant stake in the
operation, thereby enabling the mining company to obtain its "social license" to
operate, enhance its reputation and overcome various hurdles that could adversely
affect its business. "In other words, community development is a reciprocal process.
By helping communities to develop themselves in a sustainable manner, a mining
company is simultaneouslyhelping its own business succeed.

If we can all move beyond the donorlrecipientmodel of community relations

and view mining operations and their community development programmes as a
mutually beneficial partnership process, the goal of sustainability will become more
achievable" (World Bank, 2005). From the analysis, it is clear that the process of
planning for community development (including identification of relevant
stakeholders) must begin from the exploration and mine planning stage. In fact, the
first task should be for a mining company to prepare a Socio- Economic Impact
Assessment (SEIA) for the local area surrounding its mine (to be defined). This
should be followed by a long-term (strategic) Integrated Development Plan (IDP)
providing for local economic and human resources development over the mining-
lease period and committing financial resources for implementing the plan. The
long-term plan could later be broken into short-term (onelfive years) operational
planslprograrnmes aligned with the local government development plans for
implementation. Ideally, preparation of SEIA and IDP could be made a part of the
permitting process for the grant of mineral concessions to a mining company.
5.2.0 Case Study :1 (Sustainable Development in Mining)

State: Andhra Pradesh

Mineral: Laterite

5.2.1 Introduction

Mls Maheswari Minerals is a unique mining firm with a focus on

exploration, development of laterite mining and trading and growth through strategic
business transactions. The firm has a strong balance sheet, a revenue stream from
mining and trading and has management team with vast experience. The firm owns
or controls a large portfolio of laterite mineral located primarily in the East Godavari
District (Fig.5.2.1) ofAndhra Pradesh and the firm has the potential to become a top
tier is engagd in Prospecting, Mining and beneficiating activities of LATERITE
MINERAL. MIS Maheswari Minerals is having 100 Acres mine lease self and 500
Acres of leases as jointly with other firms at Chintaluru, and Anumurthy villages,
Prattipadu Taluka, in East Godavari District, Andhra Pradesh, India.

Fig. 5.2.1 :Location Map of Mls. Maheswari Minerals Mine (MIS. MM)
5.2.2 Location and proximity

The mines are situated within Prathipadu (M) of East Godavari (Dist),
Andhra Pradesh within a distance of 14 Kms from NH 5 (4 lines Road) and 75 kms
away from Rajahmundry, emoted to Vishakhapatnarn. The nearest port is
Kakinada, at distance of 70 kms from mines. The nearest airport is Rajahmundry and
the nearest railway station is Samarlakota.

5.2.3 Geology and Reserves

(a) Physiography and Drainage

The area applied for lease forms a part of the sprawling hill with its peak at
700 M above mean sea level. The hill forms a part of the 'Eastern Ghat' hill ranges
that run parallel to and form the Northern limit for the coastal plains of the state. The
subject area has a relief of about 5 M rises to about 500 to 560 M above MSL. It
slopes towards NE. While the area is a part of the waste land of the Revenue
Department (Banjar Land) the boundary of the Saralanka Raserved Forest lies at
about 50 M North and West. The area to the North and West forms a part of the vast
undulating rugged terrain. The several seasonal nalas that rise from the hills in the
region from the drainage system, which flows down South, East and West and will
culminate in Pampa Reservoir at Annavaram Temple Town.

(b) Regional Geology

The Northern half of the district forms a part of the Eastern Ghats Mobile
Belt (EGMB) exposing all the characteristic lithounits of the Eastern Ghats Super
Groups (Fig.5.2.2) viz, the Khondalite Charnockite and Magrnatite groups. The
Khondalite group is represented by Quartz - Garnet - Sillimanite - Graphite Gneiss
(Khondalite) along with unmappable units od quartzite and Calc-Granulite/Gneiss.
Within the Khondalite suite itself, varied mineralogical assemblages like Graphite
Schist, Cordierite - Silimanite Gneiss and S a p p h i ~ -
e bearing Quartz Feldspathic
Gneiss occur. The Charnockite group consists of acidic intermediate and basic
varieties. The Migmatite group includes a host of rock types, like Porphyroblastic
Granitoid Gneiss and Quartz Feldspathic Gneiss.
 Unconformably resting over the Crystalline Rocks of Achaean age occurs as
the uppermost member (Tirupati Sand Stone) of the Gondwana Super Group
deposited in a transitional environment along the wast. It consists of coarse grained
sand stone with conglomerate and clay zones. Ptylophyllum flora are recorded in the
clay zone near Annavaram, the Gondwana rocks have yielded marine fauna
(Trigonia Sp, Inoceramus Sp, Pseudomontis Sp, Pecten Sp, and helicoceras SP.,)
The Deccan traps occur 2 krns North and East of Rajamundry and extend in ENE -
WSW direction. Limestone inter trappeans rich in Gastropod and Lameliibranch
fossils, occur near Kotilingala, Korukonda and Kateru Rajamundry formation named
after the type locality Rajamundry is an ensemble of fine grained purple to vari
wloured sand stone with clay and shale bands intermittently exposed between
Rajamundary and Samalkot. It is equivalentto Warkalli Beds of Kerala and
Cuddalore formation of Tamil Nadu. The deltaic plain is characterized by fluvial to
fluviomarine and marine deposits of quaternary age which are described in detail
under geomorphology.

The area forms a part of the granulite belt of the Eastern Ghats. It is
constituted of Khondalites and Charnockites of the Archaean Era. These rocks were
subjected to granulitic facies of metamorphism owing to the repeated folding and
shearing and are traversed by pegmatites and quartz veins of different periods. They
make up the lofty hill ranges of the Eastern Ghats. The rocks trend in a general NE -
SW lofty hill ranges of the Eastern Ghats. The rocks trend in a general NE - SW
direction with steep dips to SE. The strike veers to EW or NW - SE as a result of the
folding. At places the hill tops are capped by crusts of laterite.

(c) Local Geology

The rock types exposed in the subjected in the subject area are (Fig.5.2.3):
Thickness (M)
Soil Recent 0.01 -0.05

Laterite Tertiary (?) Period 25 Mts

Ferruginous Kaolinised

Khondalite (FKK) Archaean 5+ (Base Not Exposed)

(i) Ferruginous Kaolinised Khondalite (FKg)

This lithounit is the weathered and altered fom of the Khondalite (Kh), which
is the parent rock for the overlying laterite. The 'kh' is a Garnet - Sillimanite -
GneisslSchist. On alternation during lateritisation it gave rise to the Faruginous
Kaolinised Rock, which is a weathered mass with preponderant clay and iron oxides,
hence called fermginous Kaoinised Khondalite. The alteration and weathering
totally obliterated the gneissic fabric and thus attitudes of the foliation could not be
measured.

(ii) Laterite

Laterite is derived by the situ chemical weathering of the parent rock, viz
khondalite and is thus secondary. It is cavernous/vesicular and hard in nature, it is
rose red, brick or yellow in colour and spotty (due to weathered pin - heads of
original garnets) or patchy with blotches of limonite/clay.

Laterite exhibits typical physical appearances as skeletal and porus and its
varying colour and chemical composition. It occurs as a flat or gently sloping crust
or blanket, capping the Khondalite and maintaining near parallelism with the present
day topography but petering out in thickness at the two ends.

(iii) Soil

Soil occurs as a mantle of 1 to 5 cm thickness over a major part of the laterite

sub crops. The general thicknesses are taken as 1 M respectively for purposes of
calculations. However, it is about a metre thick in the entire area, where there is a
thick growth of thorny thickets.
 Fig.5.2.2 : Geological Map of Mls. Maheswari Minerals (M/s.MM)

$ - LEBSEE ROP

! SCHEME OF MINING FOR

LATERITE
I N S y M 1 EMn124281Ha(OCQMSml
ii

VTUUNW2.I RQPlHYD1119110001A
~IDHOlwOlmlzml
(V 202 M.h.Uuhd Qanq.lh Canp*r P 4 TCAonl
O*.r*hN.p.r Hld.W
Pmnm', MO 4 0 1 ~ , 9 h P 3 s s n s I
-" --.- - - - - - - - " - PLATE -V -

Fig.5.2.3 : Geological Cross Section MIS. MM

 --
Fig. 5.2.4 : Panoromic View of Laterite Mineral Dump MIS. MM 1
5.2.4 Production facilities

The firm adopts open pit operation and has the capacity to supply two lakh
tonnes per month comprising own production and also procurement from other lease
holders with the sufficient infrastructure manpower, owned huge machinery,
equipments such as loadas, rock breakers, drilling equipment for bore hole
sampling, trucks. The organization has the pride place in introducing HMO trucks
first time in India. M/s.Maheswari Minerals had the several Laterite Mineral Stock
Yards, in those the Vanthada stock yard is very big. It accommodates 2 lakh tonnes
of reserve (Fig.5.2.4).

5.2.5 Business Information

Mis.Maheswari Minerals recorded the Rs.42 crore turnovers for the financial
year 2012-2013. The amount Rs.6 crore is more compare to previous financial year
201 1- 201 2 (Fig.5.2.5).The mines are dispatching around 1.0 lakh tonnes of mineral
per month (Fig.5.2.6) both by road and rail to various cement industries in the states
of Andhra Pradesh and Kamataka, Maharashtra and Orissa, sticking on to committed
quantities and in time delivery as per agreed quality norms.
 -

45

40

II
35

,,,
2 30
e
51.- 25
.1 20
10

0
i -
2010 11 Year
2011.12 -
2012 13

Fig. 5.2.5 : Financial and Trade information of Mls.MM

14
h
$ 12
n 10

4cl
B
2.
3 6
a
z
0
4

j 2

0
-
2010 11 -
2011 12 2012 - 13

Year

Fig. 5.2.6 :Production Details of Mls. MM (ln Lakh Tonnes)

5.2.6 SustainableDevelopment

(A) Safety First

The total number of skilled and un-skilled employees in the Maheswari

Minerals is 150. All are well trained and aware of all safety precautions taking at
mine operations. The organization had one Vocational Training Centre at
Chinthaluru Mine Site. Where all employees are regularly attending the training
programmes and improve their skills. Every month the organization inviting the
specialized people in Mining Industry, conduct the classes with them at Vocational
Training Centre. The employees from other mining organizations also attending the
various training programmes at VTC (Fig.5.2.7).

Main safety measures in and around the mines

R Organization strictly following the safety rules at all levels.

9 Every day all employees attending the safety pledge at Mine Office.

P All employees are wearing the safety helmet, shoes and gloves.

P Company strictly implementing policy of no smoking and no alcohol at

all mining operation sites and office sites.

P Company had own mechanical work shop, so that all trucks and
machinery are always kept in good condition.

P All Truck and machinery drivers well aware of safety rules while driving.

9 Sign Boards with safety slogans are placed both the road sides, narrow
comers and main traffic points.

R The mining operations are presently running on top of the hill, the trucks
are going down with loaded laterite mineral. They placed two check posts
from mine site to stock yard. The duty of check posts was took the
signature h m the vehicle driver and monitoring the speed of the truck.

R All working places are neat and clean as per safety rules of DGMS.
 P Power supply stations are fenced with barbed wire

P All trucks are covered with tarpaulin at the time of transporting the
mineral.

P Radium Boards placed all the working places for night time visibility.

b Establish a safety conhl points at all mines to monitor the safety rules
round the clock.

9 Organization constructs the separate rest houses for officers and drivers
and other working staff.

P All places are well equipped with fire fighting equipment.

9 All working mines are open cast mines, so night time mining operations
are going under good lighting conditions.

b Maheswari Minerals regularly conducting the medical check-ups for all

its employees.

9 Provided the safe drinking water facility all working places.

(B) No Drilling & Blasting

9 Today worldwide drilling and blasting operations are creating major dust
and noise pollutions in and around the mining areas. The problem is more
when the mining site located in a eco sensitive zone or population areas.

P Maheswari Minerals completely avoid the drilling and blasting operations

since from beginning of mining. Here the extraction of mineral done by
using Ripper and Dozer (Fig.5.2.8). Few of mining operations are doing
near of Reserve Forest area. But, due to no drilling and blasting, all flora
and fauna in the area are original state.

R They simply rip the ground with Ripper and later loaded the mineral into
the trucks with the help of loading machinery.
1 Fig. 5.2.7 : Safety Pledge at Mine & Training class at VTC

Fig. 5.2.8 :Eco Friendly Mining (Ripper) and Loading the Mineral
.
(C) Bypass Roads

l+ It is the best ever achievement in the mining world in India. Maheswari

Minerals are using the trucks to transport the laterite mineral from mine
site to stock yard and from stock yard to railway wagon loading area. So,
every day the trucks are travelling hundreds of times.

9 There are well populated villages across the roads. Continues movement
of heavily loaded trucks causing dust and noise pollution in the villages.
There is a chance of accidents due to heavy traffic at some places.

> Maheswari Minerals think about this problem seriously and found a
solution in the form of laying separate bypass roads across all the
villages (Fig.5.2.9). Today the company laid more than 35 Km of good
quality roads.
 k The Bypass roads completely eliminate the traffic problem, dust and noise
pollution. Reduce the time to transport the mineral to various stock points.
Bypass roads change the lives of village people in various ways. Know all
villagers are accessing their agriculture lands without any problem and
villagers are easily transporting their agri products with lower cost at any
time, Know all farmers are very happy because of bypass roads.

@) Dust Prevention
2. Every day hundreds of trucks are canying the loaded laterite mineral from
mine site to stock yard and from stock yard to loading points. All roads
are gavel roads, so dust problem is more.

2. Maheswari Minerals successfully overcome this problem by water

sprinkling (Fig.5.2.10). More than 15 water tankers with a capacity of
10,000 litres each. Regularly sprinkling water in and around all roads in
the mining, stock yard and loading areas.

2. Organization getting the water for sprinkling purposes nearby surface

water sources. So, they are protecting the ground water resources.

Fig. 5.2.9 : Separate Bypass Roads for Mineral Transportation

1 Fig. 5.2.10 :Dust controU'ig by ushg water sprinkling 1

(E) Plantation of Vm'ver grass (Chrisopogn Zizanoides)

P Vertiver grass has been found to be one of the very effective method for
erosion protection and slope stabilization.

Maheswari Minerals planted the Vertiver Grass in all working and

abandoned mine slopes for erosion protection and slope stabilization
(Fig.5.2.11).

P For this programme organization made collaboration with Indian Institute

of Technology (Kharagpur). Under the guidance of Prof.Khanindra
Pathak, Department of Mining Engineering. The organization successfully
planted the Vertiver staples at all slopes. Know they are grown well and
company planning to start this programme in a massive way this year.

(F) Mine Reclamation

Maheswari Minerals followed guidelines of Indian Bureau of Mines,

Ministry of Environment and Forest, Mines and Minerals Development
Regulation Act (MMDR) and Director General of Mine Safety rules in
Mine Closure Process (Fig.5.2.12).

P All abandoned mines are filling with fertile soil, so that organization plat
to developing the gardens.

k All dumps are covered with plants like neam, Chiku, Mango and other
plants.

P Company had its own nursery; they are developing the seed and planting
trees in and around the mining areas.

P Company constructed water tanks at all abandoned mine sites to prevent

the water scarcity in summer.

P Company recruited Retd. Forest Officer on permanent basis to monitor

the plantation and greenery programmes in and around the mining areas.
1 Fie.5.2.11 : Vertiver for control of erosion 1

1 Fig. 5.2.12 : Garden Developed at Abandoned Mine Area

I
5.2.7 CorporateSocial Responsibility

k Today we are seeing how mining affecting the lives of people in various
ways. They are polluting the water bodies, changing the landscape,
contaminating the soil and air. Displacing the people from their home
lands and increase the poverty in the lives of people. Major mining areas
are very far to safety and health facilities.

P But, it is completely different in Maheswari Minerals in Andbra Pradesh.

They are true address for sustainable development.
 The organization provides following facilities to the all the villages in and
around the mining areas:

(A) Drinking water

MIS. Maheswari Minerals all mining areas are taking places are tribal
habitats. Few villages are located at the top of the hills. The people are
mainly depending on the rain water for their drinking water and daily
needs. In summer season that water also very difficult to get. Where
availability of little water is polluted water. People drink that water
immediately affected with viral fevers and other water related diseases.
They are spending lot of working hours for carrying water from very far
places. It damages the villager's economic life.

P Company noticed the severity of the problem and initiate the actions with
urgent priority. The results are wonderful. Ms. Maheswari Minerals
construct safe drinking water tanks in all villages.

P Installed RO Plant for villagers. All water tanks are daily filled with safe
drinking water by company water tankers (Fig.5.2.13).

P Company drilling bore wells in few villages and provide the motor and
pipeline facilities (Fig.5.2.14).

(B) Transportation Facility

P These villages are very far too basic facilities like education, medical
centre. They are walking miles of distance for their daily needs. Public
and private transportation are nothing in these areas.

k Ms. Maheswari Minerals arranged the two vehicles for transportation of

villagers with free of cost. The villagers are using this facility very well
(Fig.5.2.15).
1 Fir 5.2.a : RO Plant & Safe drinkhg water tank bv Ms. MM 1

1) Fig, 5.2.14 : Safe Drinking Water Tank & Drinking water Bore Well 1
(C) Health Facilities (Fig..5.2.16)

> Prattipadu and Gokavaram both talukas are lack of medical facilities.
Villagers are facing lot problems when they infected with fevers and other
diseases. Primary health centre is very far to villages.

P Maheswari Minerals constructed Primary health centres at

Pedamallapurarn Village. Health Centres are equipped with basic facilities
like beds and medicines. Company appointed the specialised doctors for
regular check-up of the people and supply medicine free of cost.

> Doctors are visited every week one village, check-up the people and give
the required medicine free of cost.
 Fig. 5.2.15 : Free Transportation by MIS. Maheswari Minerals

Fig.5.2.16 :Health is Wealth Mls. Maheswari Minerals Activities

Fig.5.2.17 : Completed Houses by MIS.MM

116
 P Company notice the importance of clean ness in the villages. So, arranged
the persons for spraying the bleaching power and Malathin for controlling
the viral fevers and mosquito related diseases.

B Maheswari Minerals arranged two ambulances for villagers. They are

available round the clock for any kind of emergency.

b All are using this facility for their medical emergency and general
check-ups.

P Organization also conducting the mega health camps quarterly in every

village. Hundreds of people are using this opportunity. Specialized
doctors are providing services in medical camps. Company provided the
free medicines to all the people.

P Organization also providing the financial assistance for small or major

operations taking at Other Hospitals.

(D) Gifs to the People

Houses
9 All villages located in and around the mining area are moderately
populated. The major income source was shifting cultivation or PODU
agriculture. All villagers are living in small huts. Maheswari Minerals
notice the problem and identify the people. In Vanthada, company
constructing the RCC Slab Houses (Fig.5.2.17) with an area extent of 96
yards, Total number of houses is 107, first stage 55 houses are completed
and ready to occupy.

k Importantly all houses are register on woman's name.

(E) Employment
B Maheswari Minerals provide 100% employment to local youth. Company
provide the training depending up on their interests.

P Frequently company sending the staff members to other mines (with

company expenditure) in the country to learn the present working
methods and technological advancements.
 R Providing the financial assistance to employees who attending the
national and international conferences, workshops and exhibitions in and
around the country.

(G) FinancialAid for Livelihood

P Maheswari Minerals giving some financial aid to people in the
villages (Old age people, Widows and mentally challenged people)
(Fig.5.2.18 & 5.2.1 9).

P The amount is directly depositing in their bank accounts, first week of the
month.

P The people who are unable to reach the banks due to old age and ill ness
problems, company executives are personally go to their homes and
giving to them.

(H) Supporting the Education

P Literacy rate is very poor in both the taluks. Student drop outs are very
high due to poor financial conditions. Few Govt. schools are working in
this area with very less staff.

P These schools are lack of basic infiastmcture like Black Board, Benches,
Tables and Books.

P Maheswari Minerals took the problems as self-initiative. Provide the

Benches and Tables to all the schools. Every year distributing note books
to more than 1500 hundred students from various schools. Most
importantly, reduce the drop outs from schools, company start the Mid-
Day Meal Programmes (Fig.5.2.20). It gives excellent results. Today all
schools in the area are running with full strength.

P Organization providing the School Uniforms, Shoes and meals plates

every year (Fig.5.2.21).

P Providing the financial assistance for students, who are interested in

higher studies.
Fig. 5.2.18 : Woman Empowerment by MIS.MM
 Fig.5.2.20 : Mid-Day Meal Programme & Distribution of Books to children

Fig.S.2.21 : Distributing Meals Plates & Distributing Uniforms & shoes

Fig.5.2.22 : Cement Road in the village Fig.S.2.23. Village Community Hall

@ W a g e Infrastructure
Maheswari Minerals laid the RCC Roads in the villages (Fig.5.2.22).

b Construct the community halls in the villages (Fig.5.2.23).

> Company also providing the financial assistance to construction of

temples.

b Constructed public toilets.

In addition to above programmes Maheswari Minerals providing financial
assistance to village functions and in case any fire accident or natural
calamity taking place. Organization providing all the support to the
damaged people and put them in normal life with company cost.

5.3.0 Case Study I1 (Illegal Mining in Goa)

State: Goa

Mineral: Iron Ore

5.3.1 Introduction Iron Ore Mining Industry in Goa

India's mining sector is rife with illegality, some of it viscerally shocking

and some of it relatively arcane. The most brazen criminality involves the extraction
of minerals from land that a mine operator has no legal right to work on, commonly
referred to as "illegal mining." In some cases this takes place hidden deep in isolated
forests, or centers around rapid fly-by-night operations with only a handful of
machines and laborers working in a very small area. Because even the smallest
mines and quarries are difficult things to hide, operators of such mines often develop
corrupt relationships with public officials who are happy to look the other way
(Mineral Foundation of Goa, 2007)

Goa is a tiny state and many of its mines are clustered closely together and
directly adjacent to nearby communities. The local industry is dominated by three
large firms that all have their roots in the state: Fomento, Salgaocar and Sesa Goa;
the last of which was acquired by mining 'giant Vedanta in 2007. Nearly 99 percent
of the total value of mineral production in Goa is contributed by iron ore
(Table 5.3.1) (GMOEA,2010). Iron ore production which ranged between 12 to15
million tonnes per annum during 1992 to 2001 increased considerably during the
first decade of the 21st century due to the spurt in the world demand and prices of
the mineralpable 5.3.2).

Table 5.3.1 : Mineral resources and remaining reserves in Gua (Jn'000 tones)

Mineral Goa (2) India (3) Percentage share in India (213)

Manganese 19057 378569 5.0

Iron ore (Hematite) 712,948 14630387 4.87

Iron ore (Magnetite) 214169 10619481 2.02

Bauxite 50355 3289817 1.5

Source :IBM. 201 1. Indian Minerals Yearbook, 2009.

Iron ore mining is, therefore, currently the major extractive industry in Goa
with mines along the Western Ghats in the east where a mining belt stretches 65 kms
!?om southwest to the north-west covering about 700 square kms (Central Pollution
Control Board, 2008). Unlike in other mineral-rich states like Odisha and Jharkhand,
all the mines in Goa are concentrated in a small area comprising four taluks of the
state, namely Bicholim, Sattari, Sanguem and Quepem.

The entire mineral belt of Goa has been leased to private mine operators. In
201 1, there were 336 mining leases (concessions) in the state, over an area of nearly
24,168 hectares comprising 8 to 9% of the Goa's geographical area (3,70,200
hedares) (Directorate of Mines, 201 1). However, at any point of time, there are
about 100 mining leases under active mining operations, covering not more than
2.5% of the geographical area, apart from roads, plants, stock piles and barge
loading areas (Kalavampara, 2009).
Table 5.3.2 :Production of Iron Ore in Goa

Calendar Year Iron Ore including black (in million tones)

200 1 15,737,701

2002 17,371,039

2003 23,727,937

2005 25,440,925

2007 31,327,805

2008 32,720,536

2009 41,038,392

Source :Director of Mines Goa, 201 1

Another distinguishing feature of Goa mining is that the area of individual

mining concessions is limited to a maximum area of 100 hectares; in fact out of the

total number of leases, as many as 73 mining leases had each an area of less than 50
hectares (TERI, 1998). Also, Goa's iron ore is of relatively low grade with iron (Fe)
content that ranges fiom 50 to 62 percent (Venkatesan, 2010). Being more friable,
Goa ore generates a higher quantum of fines. These qualities make it unsuitable for
the country's steel plants which use high grade (Fe content of 65% or more)
hematite ore, which is available in abundance in the states of Odisha, Jharkhand,
Chattisgarh and Karnataka. Goa's iron ore industry is, therefore, totally export-
dependent and all the iron ore produced in the state is exported (Table 5.3.3) to
China, Japan, South Korea, Taiwan and the European Union. There is also a huge
international demand for Goan ore as it is often used as a product blend to make up
for the optional silica and aluminum content with ore from other parts of the world.
Table 5.3.3 : Export of Iron ore from Goa (In d o n tones)

Year Quantity

2004-05 23.30

2005-06 25.54

2006-07 30.89

2007-08 33.43

2008-09 38.07

2009-10 45.68

Source :Goa Mineral Ore Exports, 2010.

Goa's low-grade iron ore is totally exported out of the country which makes

the state the biggest exporter of iron ore from India. The iron ore export from Goa

first started in the 1940s when the quantity exported was of the order of 40,000

tonnes. It increased to an average of 10 million tomes in the 1970s and was of a

little less than 15 million tonnes (average) in the early 2000s. Since 2004-05, there

has been a further jump mainly due to the high demand for even low-grade iron

ore for China.

Also, among all the Indian ports, Goa exports the maximum share of total

iron ore export from the country.Most of the exports comprise Goan ores with some

non-Goan ore (mainly from Karnataka) passing through the Goan ports. Nearly 75

-
percent of Indian iron ores is exported through five major ports Goa, Paradeep,

Vizag, Chennai and Haldia. Their respective shares in iron ore exports during the

year 2008-09 and 2009-10 have been shown in Table 5.3.4.

Table5.3.4: Iron ore exports through top five major ports of India
(In million tones)

Port 2008-09 2009-10

Goa 45.59 53.13

(43.0%) (45.2%)

Paradeep 13.67 12.27

(12.9%) (10.4%)

Vizag 8.33 10.1 5

(7.8%) (8.6%)

Chennai 8.28 7.43

(7.8%) (6.3%)

Haldia 8.58 7.14

(8.1%) (6.0%)

All India 105.86 117.37

(100%) (100%)

Source :Goa Mineral Ore Exports, 2010.

"Goa has 90 operational mines spread along the Western Ghats in an area of
150 to 200 sq km.Most of the legal and illegal mines are in forest areas".

Therefore, the typical reaction is to treat these measures in the usual

bureaucratic and routine manner, without much impact in the operational areas.
Then, there is also the ever-growing malady of political interference and the nexus
between the local politicians and the offenders (mine owners) for mutual benefit at
the cost of the public exchequer. In these circumstances, it is not surprising that
there is a steady increase in the cases of illegal mining in most mineral-rich states
of the country. The (Table 5.3.5) below gives the year wise and state-wise details of
the cases of illegal mining as reported by the State Governments during the
period 2006-07 to 2009-10.
Table 5.3.5: Number of illegal mining cases detected by State Governments

2009-10

No State 200647 2007-08 2008-09

,,,
Dee 2009
rm-March
2010"
Total

1 AndhraPradesh 5385 9216 13478 11591 3943 15534

2 Chhattisgarh 2259 2352 1713 1078 925 2003
3 Goa 313 13 159 9 NA 9
4 Gujarat 7435 6593 5492 5416 722 6138
5 Haryana 504 812 1209 1372 481 1853
Himachal
478 NA 503 1114 NA 1114
Pradesh
7 Jharkhand 631 82 225 15 NA 15
8 Karnataka 3027 5181 2997 1687 1996 3683
9 Kerala 1595 2593 2695 1324 NA 1324
Madhya 4181 1407 5275
lo 5050 3895 3868
Pradesh

17 West Bengal 80 426 315 80 33 113

Source :Indian Bureau of Mines (IBM), 201 1

5.3.2 Illegal Miming in Goa

Increasing cases of illegal mining in almost all the mineral-rich states of the
country are a pointer to the fact that all may not be well with the governance-system
for the mineral sector. Illegal mining is harmful as it not only leads to loss of public
revenue; it also encourages unscientific mining and has other adverse effects which
have implications for the ecology, internal security and proper management of the
mining sector. According to Ministry of Mines Report 2012(Annual Report), there
were at least 82,000 cases of "illegal mining" in 2010 and another 47,000 between
January and September 201 1--some presumably involving multiple incidents linked
to the same operations. That figure is hard to rely on or interpret; central government
figures are based entirely on state government reporting and some states are more
zealous about detecting and reporting illegalities than others. Regardless, the
implications are staggering-the government's own figures imply an annual rate of
30 illegal acts for every officially sanctioned mine in the country. Officials freely
acknowledge that they have no estimate of how many cases go undetected, and the
central government does not track the number of prosecutions or convictions in
mining-related cases across India.

What is "illegal mining?"

The term "illegal mining" is a regular feature of public discourse in India,

but there is considerable disagreement about what the term actually means. Many
industry critics- and some govemment officials- say that it means any illegal
action by a mining company in the course of its operations. This leads some
activists to assert that almost all mining in India is "illegal," on the theory that few
mines manage to comply with every legal requirement all of the time (Government
Of Goa, 2010).

Illegal mining may be defined as mining operations undertaken in violation

of the relevant provisions of the laws governing mining in the country, namely
MMDR Act, 1957, the Forest Conservation Act, 1980 and the Environment
(Protection) Act, 1986. Some of the typical forms in which illegal mining occurs are
the following:-

Mining may take place in an area for which no mining license has been
obtained by a party.

9 Mining takes place in leaseholds for which surface right has not been
granted.
 P Mining operations are being camed on without conforming to the
approved mining planlenvironmentalmanagement plan.

P Production of minerals and their dispatch are in quantities in excess of

those approved in the mining plan andlor environmental clearance.

P Mineral ores have been dispatched fiom leasehold areas in an

unauthorized manner (for example, mining lease is for iron ore but
production and dispatch are for manganese ore and vice versa).

P Mining takes place in forest land for which no forest clearance has been
obtained. The areas vulnerable to illegal mining are the following.

9 Virgin areas often reserved for public sector enterprises and/or private
companies who intend to set up processing industries.

Areas for which intention to grant lease has been communicated but lease
not granted for a long time.

9 Areas for which lease has been granted but execution is pending for long.

9 Areas held under prospecting license but the party's application for
mining lease is pending for long.

> Ceased areas where no mining activity has taken place for a long time.

9 Surrendered areas lying vacant.

P Areas which have been thrown open for grant of mining lease but
applications are pending for long.

P Abnormal delay in the disposal of applications for mining lease, renewal

of lease, forest and environmental clearance.

Illegal mining in Goa is being projected as a bigger than Bellary (Fig.5.3.1).

While revenue losses fiom illegal mining has been estimated at about Rs.3,000
crore, the loss by way of damage to the environment and loss of livelihood has not
been estimated.
11 Fig.5.3.1 : Satellite Image of Ironore Mininr!Areas in Goa 11
The mines in Goa are allowed to produce a total of 60 million tonnes of ore
annually. The excavation ratio in Goa is 1 :3 (for every tonne of ore, three tonnes of
soil is extracted), which means ore extraction would lead to extraction of 180
million tonnes of soil every year. "Considering that most of the mines are in the
Western Ghats, one can well imagine what would happen given the current pace of
mining,". Take the instance of Caurem village in Quepem taluka in south Goa. It has
2,000 families whose farms (Fig.5.3.2) have been destroyed by illegal mines
operating in the area. The silt from mining has entered the fields which now
resemble a large quagmire. The perennial stream that irrigated the village fields is
polluted and agriculture has been completely destroyed. People are left with no
means of earning their living.
 Overloaded ore trucks throw off clouds of iron-rich dust as they pass through
rural communities, destroying crops and potentially damaging the health of nearby
families, Most of the mines in the state are concentrated in four talukas-Bicholirn
in north Goa, and Sattari, Sanguem and Quepem talukas in south Goa Based on the
author field visits in the four taluks that an estimated 100,000 people are affected
due to illegal mining. Besides loss of livelihood, they are also suffering from the
adverse effects of air noise and water pollution. "Mining has caused irreversible
damage to forests, agriculture, fisheries and water aquifers." Author observed in the
field visits, the government has allowed mining even in forest areas despite the
presence of wildlife.

"Inhalation of iron oxide can cause respiratory ailments. Studies also

indicate that exposure to silica, which is often a constituent part of iron ore dust,
may be linked to serious ailments including silicosis and other lung diseases such as
lung cancer7'.

The mining has also affected the Salaulim dam on the Salaulim River in
Sangeurn taluka, which supplies drinking water to half the state's population, besides
providing water for irrigation and to industries. Over 20 mines are operating in the
vicinity of the dam. Heavy silt has settled in the dam reservoir because of mining.
An official in the state water resources department admits that mining has damaged
the state's water resources and says the department is now reassessing the life span
of the Salaulim dam. The dam was commissioned in the 1970s with an expected life
span of 100 years. A study conducted by The Energy Resources Institute (TERI) in
1994 showed excess iron and manganese levels in the Salaulim reservoir water. This
was when mining was at a much lower scale as compared to present level of mining.

Superintending engineer with the water resources department, S.V.

Prabhavallcar says there is little his department can do. "Mining is carried out under
the laws of the Central government. All state laws are overruled by Central laws,
and there is hardly anything we can do with limited powers and resources," he says.
"Our powm are limited to issuing notices to offenders. It is the office of the
collector which is supposed to take punitive action," he adds.
A Raja's gift to Goa mining companies

At present, Goa has 90 operational mines spread along the Western Ghats in
an area of 150 to 200 sq km 30% mines are working less than 5 km distance to the
wildlife sanctuaries and em sensitive zones. Most of the legal and illegal mines are
in forest areas. Former Union minister A Raja who is now he released from jail in
connection with the 2G spectrum scam, issued 169 environmental clearances for
mines in Goa between 2005 and 2009 when he was the Union minister of state for
environment. Of these, 15 clearances were for mines inside the Netravalli wildlife
sanctuary in south Goa.

Some in Goa's mining industry also allege that corruption often plagues their
attempts to comply with the law by obtaining necessary clearances and permissions.
Activists allege that this problem also pushes weak regulatory institutions even
deeper into complacency and inaction. The rush for iron and manganese ore began
in 2000 during the run up to the Beijing Olympic Games in 2008. With the price of
iron ore touching $180 per tonne in the international market, Goa's mineral
resources were over-exploited and even abandoned mines were reopened.

"India has laws on the books to protect mining-affected communities from

harm, but their enforcement has essentially collapsed."

Many Goan mine operators are increasingly reliant on contractors to operate

their mines or transport their products to the port. Encouraged by the vast profits
being made in the mining sector, Goan politicians have gotten in on the mining
business by becoming contractors themselves. Most mines in Goa operate below the
water table, and many are forced to continually pump out vast quantities of water in
order to keep mine pits dry. Often, mine operators simply discard the water rather
than re-inject it into the ground to help regenerate the resource. The trend towards
using contractors is driven largely by economic considerations-labour costs are
lower and companies do not wish to invest heavily in new equipment that may lose
its value if commodity prices and iron production decline. But in some cases there is
also a political calculation. Some contractors are hired because their ties to
politicians make them better able to either navigate or evade the regulatory
framework, not because of their competence or reputation for responsible operation.
 "Politicians have entered into this mining business and are spoiling the
names of established mining companies. Their actions tar the reputation of the whole
industry."

In Goa the police officers located in and around the mining areas also getting
profit from the mining industry by purchasing trucks they contract out to haul ore
fi-om mine sites-creating a conflict of interest when local protests shut down a mine
that helps supply their income. India's Prevention of Cormption Act outlaws such
practices but critics allege that some police officials circumvent the law by putting
trucks in the names of their wives or relatives.

"It is quite possible that 40 percent of mines are operating without

clearances".

Thus, a combination of procedural delays and administrative inefficiency

against the background of rising prices of minerals (since 2004) has led to a sudden
spurt in illegal mining. This is further aggravated by a poor law and order situation
and ineffective police administration in the mining areas, lack of vigilance and
action by the forest department officials, poor infrastructure and inspection facilities
such as non-functioning government weighbridges and inadequate supervision of
private weighbridges, as well as absence of adequate authority of the inspecting staff
in the field agencies of the State mining department.

In 2010, India's parliament convened a commission of inquiry into illegal

mining headed by retired Supreme Court Justice M.B.Shah. Shah's interim report,
submitted in early 2012, found that: There is enormous and large scale multi-state
illegal mining of iron ore and manganese ore running into thousands of crore every
year, having several pernicious and evil effects on the national economy, good
governance, public functionaries, bureaucracy, public order, law and order. It has
encouraged huge corruption at all different levels in public life, mafia in society and
money power. This has to be stopped immediately and effectively.
5.4.0 Case Study : 111(Sustainable Development in Mining)

Surkha (North) Lignite Mine Bhavnagar District

State: Gujarat

Mineral: Lignite

5.4.1 Silent Features of the Surkha North Mine

Surka (North) Lignite Mine of MIS. Gujarat Mineral Development

Corporation LTD having lease area 3672 hectors started in 5" April, 2008.
Surka (North) Lignite Mine is situated 15 km away fiom Bhavnagar city
(Fig.5.4.1 & Fig.5.4.2)

Name of mine Surkha (North) Lignite Mine

Mineral work . Lignite

Nearest Railway station , Bhavnagar

Total Lease area 3672 hectors

Commencement of Project ~05/04/2008

Lignite dispatch started . 14/12/2008

Total Lignite reserves 70.00 Million Tones

Lignite production up to Feb 201 3 5.7 Million Tones(Table5.4.2)

Balance lignite reserve 64.3 Million Tones

Average O/Bremoval per month. 13 lac M~

Average Lignite production per month 1.6 lac MT

Average Stripping ratio . 1 : 10.15

Proximate analysis on received basis :

Total Moisture

Ash Content

Fixed Carbon

Calorific value gross

14. Ultimate analysis on air dry basis:
Carbon as C :-34to46%

Hydrogen as H :- 1.8 to 3.6 %

Sulphur as S :- 3.4 to 5.9%

Nitrogen as N :- 0.6 %

Oxygen as 0 :- 6.4 to 10.8 %

Fig.5.4.1 :Surkha North Lignite Mine Location Bhavnagar

(Cujarat M~neralDevelopment Cotporallon, L~m~ted
(GMDC), Bhawilga)
5.4.2 Brief Note on Geology of Surka (N) Lignite Mine

(i) Local Geology (Table 5.M)

The average geological formations encountered within the area during the
course of drilling are (tom bottom to top) Deccan trap, laterite, bentonite,
sandstone, gray to greenish clay, lignite conglomerate, marl, variagated shale, grit,
fossiliferrous conglomerates, sandy clay, fermgenous sandstone, agate bearing
conglomerate, sandy alluvium (top soil). On the basis of drilling data the local
stratigraphic succession is established as under:-

Table 5.4.1 :Local Geology Formation wise Surkha North Mine (GMDc, Bhavnagnr)
1,PMti --

I'M!, -- - - - -

4 Yl --

'OM1 -

- -- -"

GIDrnrn

Fig.S.4.3 :Lithology Map of Surkha North Mine (GMDC, Bhavnagar)

(ii) Overburden

The overburden formation in the mining area covered under blanket of recent
to sub recent & subsurface formations includes alluvium, conglomerates, sandstones
and variegated sub-bentonitic clays. The alluvium comprises of dark coffee coloured
sandy and silty clays and constitutes the top portion of the overburden in most part.
The litho units in overburden strata are gently folded and gently undulated in nature.
The average overburden thickness varies from 25m to 100 m in the area.

(i) Lignite

The lignite horizons intersected in the area can be classified in to two main
groups. Top lignite horizon which is occurred throughout the area and its thickness
varies from O.lOmt to 13 mt. While the bottom horizon is not continuous in entire
area and its thickness varies from 0.20 m to 4 m. Lignite is brownish black in color,
amorphous and fine-grained in nature. Lignite lumps when exposed to atmosphere
develops cracks & crumble into small pieces due to loss of moisture. It contains
specks of resin, pyrite, Sulphur and rarely amber (Fig.5.4.3).

Total geological reserves of lignite have been computed to be around 107.5

Million MT. Out of these, Block-A accounts for 84.9 million MT and Block B
accounts for 22.6 million MT of lignite reserves.

Block A only is considered as mineable block having stripping ratio of 1:10

and estimated net extractable lignite reserves of 69.6 million MT. Average lignite
seam thickness in this block is 5.9 mtrs. and only one seam is considered as
mineable. The depth of lignite varies from 22 meters to 195 mtrs. having weighted
average thickness of lignite 7.3 mtrs. The average calorific value is 2800-3600
K.Cal./Kg. with specific gravity 1.31 grn./cc. GMDC intends to mine this block and
the estimated project life of this block is about 25 years.

In Block-B net extractable lignite reserve is nil & having stripping ratio of
1:32. GMDC Ltd, has signed MOU with Oil and Natural Gas Corporation (ONGC)
for Underground Coal Gasification Technology for extracting this deep-seated
lignite seams.
 Table 5.4.2 :Year wise Production of Surkha North Mine

Source :GMDC Bhavnagar,2008-2012.

5.4.3 Sustainable Mining by Gujaral Mineral Development Corporation

(GMDC)

Sustainable Mining is reflected in the practices concerning (a) Mine

Phnning, (b) Mining Development and Operations, (c) Mineral Waste Management,
and (d) Mine Closure Plans.

(a) Mine planning

GMDC uses state of the art hardware and software packages for survey,
resource modeling, mine optimization and exploration that help in scientific mine
planning. These facilitate identification of the quality and quantity of deposits and
hence the potential mining areas, leading to optimal utilization of resources and their
conservation. Exploration is carried out with advanced technology machines to limit
the breaking of ground.

@) Mining development and operations

Excavation of minerals and mining operations are also undertaken through

high capacity excavators (Fig.5.4.4) and dumpers and heavy duty ripper dozers and
rock breakers are used in order to avoid drilling and blasting, thereby controlling
noise and ground vibration (Table 5.4.3 & 5.4.4). Drilling and blasting is done
inhquently only to remove very hard formation. As a result, the mines present a
pictwe of systematic terraced benches and wide internal haul roads, neatly
maintained through good management and mining practices.
Table 5.4.3 : Lit of Contractor Machinery at Mining Site Surkha North

Source :GMDC,Bhavnagar.

Table 5.4.4 : List of Departmental Machinery at Surkha North Mine

Source :GMDC, Bhavnagar.

(c) Mineral waste management

In view of the high overburden to ore ratio, management of solid waste

material presents a difficult problem. In most cases, waste dumps are outside the
mining lease areas. Those are suitably terraced with proper height and angle of
slopes. Each dump is terraced after every 10 meters of height and inward slope is
maintained on dump surface so as to channelize run-off water through the garland
drains in to the series of settling ponds at the toe of the dump. Gw-textiles are used
on finalized dump slopes so as to prevent direct contact of rain with dump surface
thus minimizing the dump run off. Special erosion control grasses are used as a
cover crop to further negate the dump erosion. At most mine sites, jutelgeotextiles
are used for controlling soil erosion and also for establishing grass cover. Matured or
'dead' waste dumps are regularly brought under plantation.

Coir Mats and Coir Logs are made of pure coconut husk fiber-100% natural,
organic, biodegradable and safe to wildlife. Coir Mats are more flexible than matting
made from bristle coir fiber. This characteristic allows Coir Mats to interface with
the soil surface. Coir fiber is durable and strong, with the right properties for being
spun and woven into the right strength mat.
 Coir Mats and Logs are used for slope and channel stabilization, stream and
river bank stabilization, wetland construction, dams, detention ponds, highway and
rail embankments, mining operations and landfills, ski slopes and ski lift tracks,
pipelines, high altitude planting reservoirs and construction sites.

(d) Features of Coir Mats and Logs

b Coir Mat erosion control mattings are made h m coir fiber which is
100% natural, organic, biodegradable and safe to wildlife Available in
rolls up to 4 meter (13.1 ft) wide without stitched seams.

P More flexible than mattings made from bristle coir fiber. This
characteristic allows Coir Mat to interface with the soil surface.

b High tensile strength and durability makes it suitable for the most severe
erosion control problems.

Easy to install.

> Three to six years longevity to allow for full vegetation establishment.

b Absorbs water and acts as a mulch on the surface as well as a wick in the
soil mantle. This creates an ideal micro-climate for the germination of
seeds.

b Open mesh construction provides an excellent opportunity for the growth

of vegetation.

P Adds fertility to the soil after biodegradation.

b Accelerates the development of aquatic and riparian habitat.

b Accepts hydraulically applied products.

P Traps sediments and encourages deposition.

P Environmentally and aesthetically pleasing.

 Provides effective erosion control of steep slopes and high velocity flow
channels.

9 Provides economic and environmentally sound stabilization of stream

banks & shorelines.

Ideal for most landscaping and bioengineering applications.

(e) Mine closureplans

Mine closure plans are prepared by most companies primarily to meet the
legal requirements under MCDR 1988. What will happen to the mining area or to
the people living near a mining project when the minerals are exhausted do not seem
to enter into the calculus of these closure plans. All the working mines have IBM-
approved mining plans, and mining schemes as well as progressive mine closure
plans which are reviewed annually. However, there is rarely consultation with the
local communities either at the stage of preparation of a mine closure plan or its
review. Most of the mining companies claim that since the mines are still
operational, no initiatives are required on this counts except to the meet the legal
requirements under Mineral Concession Development Regulation (MCDR).
GMDC's Lignite mines, however, is an exception and constitutes an outstanding
example of mine closure plan prepared and implemented successfully.

5.4.4 Environment Protection and Biodiversity

(i) Dump stabilisation

They have in place biodegradable geo-textile mats (Fig.5.4.5 & Fig.54.6),

which are coir mats with permeable textile, which helps to grow vegetation by
withholding water and soil nutrients to prevent slope failure and wash-off of
material from the over burden dump. They are also planted Alovera plantations
(Fig.5.4.7 & Fig.5.4.8) around the over burden dumps and mines to increase green
cover. A retaining wall and a garland drain with a series of siltation ponds have also
been constructed.
(U) Air qualily management

GMDC have in-house laboratories to analyze ambient air samples for

suspended particulate matter (SPM) and respirable suspended particulate matter
(RSPM). The ambient air quality in the mining locations is regularly monitored so as
to keep the parameters with the prescribed limits. Effective dust management
measures are taken to ensure this objective.

The principal measures adopted are the following:-

P The trucks carrying ore covered with tarpaulin to prevent dust dissemination
during transportation (Fig.5.4.9). The trucks pass through upgraded wheel wash
system before leaving the mining premises.

P Water sprinkling on haul roads and in the premises as of the mining lease.
Fleets of water tankers maintained for the purpose (Fig.5.4.10).

P Plantation on active dumps, on both sides of haul roads and creation of green
belts around the mining areas act as a sink for pollutants.

(iii) Waterpollution and waste water management

Sustainable water management (SWM) covers their water resources while

taking into account the needs of present and future users. GMDC advocate
economical and efficient use of water in their mines. GMDC also have a rain water
harvesting system in place to facilitate ground water recharge.

Improved waste management and implementation of cleaner technology.

At GMDC, they take great care to use natural resources efficiently by

minimising and recycling waste. They have incorporated a holistic approach from
exploration, through operation, to closure, and consider all impacts, are it social,
technical, economic or environmental in an attempt to decrease long term
environmental stress Monitoring of environmental parameters and environment
reviews GMDC have their own environment wing which conducts round the clock
surveillance over any inadvertent situation and periodically monitors all
environmental parameters such as air, water, noise, soil, hazardous waste and gives
regular feedback. To maintain constant vigil on environmental compliance, the
Environment Cell carries out environmental reviews by ensuring quality monitoring
and analysis, comparing the data with the stipulated standards of CPCB. As a
feedback and follow-up of these environmental reviews, remedial measures have
been taken wherever necessary. Periodic environmental reviews and extensive
monitoring of the facilities carried out at all stations have helped to them comply
with the environmental norms.

GMDC regularly monitor ground and surface water in the surrounding areas
in order to keep the parameters within the prescribed limits and report the results to
the regulatory authorities. The major steps taken in respect of waste water
management and prevention of water pollution are the following:-

> Run-off water from waste dumps are channelized through garland drains
in to the settling ponds at the toe of the dump and this water is treated, if
required, by adding lime and flocculent before being discharged into
natural bodies.

k Exhausted mining pits are used either for rain water harvesting. All the
water required for regular works is met with this rain water.

(iv) Rehabilitation of degraded land

GMDC have their own nurseries where large samplings and suitable species
are developed for plantation (Table 5 4.5). Care is taken to select local species in
order to promote biodiversity conservation. Earlier plantation was restricted to fast
growing acacias; now a variety of local species like Bombex (silk cotton), bamboo
and Trerna (charcoal tree), commercial and medicinal plants like cashew, jatropa,
jamun, amla etc. are preferred. In this connection, the measures taken for
rehabilitation of mined out or degraded land by GMDC, especially in their Lignite
mines in Surkha (North mine) in surkha village, Bhavnagar District in Gujarat are
worthy of special mention. The good practices for biodiversity conservation adopted
there and the results achieved are an example for other mining companies all over
thecountry(Fig.5.4.11, Fig.5.4.12, andFig.5.4.13, Fig.5.4.14 & Fig.5.4.15).
 at Surkha North Mine at Surkha North Mine

Fig.5.4.7 : Aluveru Plantutiun at Minc Dumpr Fig. 5.4.8 : Good \'egotation at over burden dumps
at Surkha North Mine at Surkha North Mine

Fig.5.4.9 : Truck C'ovrrcd with Tarpaulin

at Surkha North Mine at Surkha North Mine
Table 5.45 : Year wise Plantation in and around the mine area

Total 99468 80.618 59.23

Source :GMDC, Bhavnagar.

Major Species Planted

Azadirachta indica (Neem), Delonix regia (Gulmohar), Alstonia scholaris

(Saptaparni), Holoptelea integrifolia (Charal), Bouganvillia Spectabilis (Bouganvel),
Salvadora oleides (Pilu), Senna swattensis (Kasid), Michelia charnpaca (Champa),
Saraca indica (Ashok), Nerium indicum (Karan), Acacia sp. (Babool), Jatropha
(Ratan jot), Tikoma, Ficus religiosa (Peepal), Annona squamosa (Sitafal), Pongamia
pinnata (Karanj), Aloe Vera (Ghritkumari), Vinca rosea (Baromasi).

GMDC Lignite mines is easily the model reclaimed mine in India's Lignite
mining industry and is an example of how a mined out area can be fully restored to
its original (or even better) natural condition by systematic reclamation and
rehabilitation. All the best practices in reclamation, agri-horticultural approach,
water body development, pisciculture and development of medicinal plants garden,
have been adopted. Exhausted mining pit has been converted to a pond for
pisciculture and horticulture species of the Gujarat region (cashew, mango, coconut,
jackfruit etc.) have been grown on waste dumps along with spice plantations and
medicinal plants.
 Fig. 5.4.11 : Nee trees on reclaimed mine area

l;ig.5.4.12 : Drip Irrigation system for water suppl) Fig.5.4.13 : Vegetation on Over Burden Dumps

Fig.5.4.14 : Native dates palm plantation Fig.5.4.15 : Plantation on backfillrd mine area
 The development of the in-house nursery is a significant move towards
expanding our afforestation programme. More than 50,000 saplings have been
planted in the past two years, with a survival rate of 80 per cent.

5.4.5 Corporate Social Responsibility

(i) Stakeholder Engagement

It has earlier been mentioned that the civil society and the population in the
mining villages in Gujarat are much more conscious of their rights than the
relatively backward and tribal population in the mining areas of Odisha and
Jharkhand. This results in greater sensitivity of mining companies to their concerns
and it is noticed that they oRen take proactive steps in engaging the local
communities in their activities, especially in the areas of environment and economic
development. In most mining companies, there is no formal institutional mechanism
for stakeholders' engagement or consultation on a regular basis. Typically it takes
place during public hearing for environmental clearance of mining projects and in
planning and implementing local development works. Also, when grievances arise
due to adverse environmental impact of mining particularly as a result of judicial
proceedings, the mining companies have to negotiate with the representation of the
local communities for resolving the problems. GMDC establish a standing
committing comprising representatives of the local panchyats, non-government
organization, representatives of educated persons of the area and of the self-help
groups along with the company's representatives has been formed.

This mechanism helps the company in better understanding the community's

needs and also in planning and implementing local development programmes. Other
mining companies have mostly informal arrangements to interact, when needed,
with the representatives of local panchayats and communities for undertaking local
development works (Table 5.4.7).

(ii) Local Community Development

In the absence of any legal requirement, no mining company in Gujarat (as in

other parts of the country) conducts any comprehensive social impact assessment of
the villages affected by a mining project at the feasibility stage. However, as the
project progresses they may be doing specific studies for taking up individual
development works. There is also a higher degree of consciousness among mining
firms of the need to undertake socio-economic development programmes in the
villages affected by their activities. While larger companies have created in-house
institutional mechanisms to handle thls problan, the smaller enterprises' response is
more ad hoc, responding to the demands of the villages during public hearings for
environmental clearances or as a result of interactions during the day-to-day
operations of the mines.

Table 5.4.6: Training & Medical Examination - Year wise Data V.T.C Training

Source :GMDC, Bhamagar.

The major mechanisms adopted for promoting local socio-economic

development are the following:-

> Employment of local villages in the mines.

> Deployment of transport trucks and machineries owned by local villagers.

 Small contracts to the local people depending upon their knowledge and
capacity.

Village infrastructure development - construction and maintenance of

village roads, tanks, wells, tubewells, school buildings, temples, bus
stops, etc.

b Assistance in farming through provision of improved seeds, fertilizers and

saplings, knowledge of good agricultural practices, repair works to sluice
gates, small irrigation projects and canals.

Skill development - driving, computer training, mechanics,

electricians, etc.

b Educational assistance - scholarship to students, distribution of books,

note books, uniforms, school bags and transport facilities.

Tu Provision of health care facilities - hospitals and community health

centres with doctors in mining villages, free medical camps for eye
diseases, cataract, diabetes, HIV AIDS, malaria, etc. (Table 5.4.6).

Tu Promotion of sports and sports facilities among village youth.

k Promotion of self-help groups for women (women empowerment) with

financial assistance for their programmes.

(iii) Ground Water Recharge Programme

The underground water recharge structure strengthening and creation of new

check dams are under progress. Till date about Rs.lS.3 lakhs has been contributed
for renovation of four ponds and check dams and creation of one new check dam in
Lifh, Kotda and Asaldi villages (Fig.5.4.16, 5.4.17, 5.4.18, 5.4.19, 5.4.20 and
5.4.21). Contribution for strengthening wildlife development programme including
creation of Van Talavdi is separately made to Forest department on annual basis.
The progress in strengthening of wildlife conservation measures fiom contribution
of GMDC is reviewed by a committee headed by Chief Wildlife Warden, Gujarat.
 Fig.5.4.16 : Ponds for rain water rtoragr Fig.5.4.17 : Watrr Embankment
near mine site Surkha North Mine (SNM) near mine site S N M

Fig.5.4.18 : Check Dam near mine site S N M Fig.5.4.19 : Pond with water ncar mine site S N M

I Pig.5.4.20 : Chcck Dam Fiiled with water ncar SNM Fig.5.4.21 :Check Dam Fiiled with watcr near SNM
5,4,6 Corporate Social Responsibility Expenditure by GMDC Bhanagar Lignite Mine :

Table 5 A l : CSR ExpenditureGujarat Mineral DevelopmentCorporation,Bhavnagar

Cold
$4, Tpof Numbsrd
Type of Work
No Am
Oeepeningand Widening of a Chedt dam \PYp G!Jl NaPl IIZ(B BilM
Community
"' Dnpni~pandHhnijd lmu Ch&
hnsw' Mdp Camuii J!,l 1M82010 1736802
1 wael,
b (
,46 5 6 0M
7
,j1
Chedt Dam &Thykepnnigwork L ~ j DWDU
h
2w2 modind Tgdinlap)-Totalcwla Mdpalrfidi hm,nity
lac
Gvr" 2853362
-
--
--
-- -
FinandalAssailnee to Miss hjihGohl .Daughter
of Shri Kishorsinh gohil lage.Thodi,survey no.
 Nu
m kof
Typo1 Work
benefidarisl
-
h e no, computer !dlools'
HCL. New alloiledlo prima? %hod Students
Ionos, computer
w
R
a
mp
HC1- New allot edlo primaryschool
iwonos. computer
Bhuleshvar
HCL- New &Idloprimaryschool
l nos mputer
w
o Schools'
Bhumbhli
:HCL-New allotledol pimayshwl Students
:ids student of
bnya KelavaniFundto Malpar and Ghogha Taluka OUrct
-
Funding lo VanVancheGuja~Ypmjecl run by Smt N C Stdents d
1 B V GandhiMahilaArts and Qmmerce allege Cdlege
Gids studentof
Kanya Kekvani Fud to Bhavnagar B M D'slirct
Gids
RnandalAssistameol Girsl shidents Students-24
Gils
Fina~iialAssislancelo Girsl sludents Students.3l
Gils
FinancialAssistance lo Girsl ldents
Skrdentsdl
Gils
F'mandal Assistam to Girsl stdents
shhls.244
Gih
Finandal Assistance lo Girsl shrdents GVI
Students.#
Gids
RnandalPssistancelo Girsl stdents GVI
I
--Students10
 fudUndw
Md
Sr, Number of I d *d Wh
No Mi
Typed Type of Work PmlectlValige Mdaa FIw
Gflblsl
Miy h~,tdon Mi

Roiiingsbee@t Rab "

bmmunvi
GV[ 0311-810 8JIO
C 41
3NM$