ECONOMIC VIABILITY REPORT for INDUSTRIAL MINING

LICENSE-CATEGORY B
Proposed Borrow Pit at
Keerisuddan, Palampiddi, Madu- China Harbour Engineering Company Limited.

1.0 Location and Site Plan

This site is situated at Keerisuddan area within Madhu Divisional Secretariat

Division of Mannar District (Northern Province). The proposed borrow site, which
is marked in Annex (i) and (ii) (Location Maps). Location of the land is 06 k.m.
away from Palampiddi-Chiraddikulam road right side.

2.0 Mine Development and Production Program

The aim of this report is to formulate a mine development and production program,
which shows how can the company fulfill its objectives of obtaining high quality
gravel in scientific and environmental friendly manner

a. Ore reserve

The surface Geological observations as well as testing of gravel samples have

proven the suitability of gravel reserve to obtain high quality gravel for Mannar –
Karativu- Navatkuli road (A032) development program. Total extent of visible
outcrop area is about 05 acres. The economical ore reserve is approximately
20,000m³. How ever our requirement is about 2,48,526 m³.

b. Mining Plan

It is expected to carry out the mining work for the filling material according to our
target without any adverse effect to the nearby land and community. The
excavation area is 2 ha.

The mine schedule and development sequence, which is given below is simple &
comprehensive.

Mine Life

The expected mine life is (1.0-1.5) years.

Mine Schedules and Mine Development

 First of all, the land will be cleared pertaining buffer zone by using a dozer.
an excavator and a motor grader, will be engage for this purpose.
The debris will be heaped and generated in a suitable part of the land.

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 The land divides in to four potion.

 Removal of overburden soil in 1st part of the land, which consists of loose residual
and lateritic soil up to (0.5-1.0) m depth removed by an excavator / dump truck
combination. This will also be limited to the immediate mining areas initially and
progressed gradually, when required. The overburden crost soil will be removed in
another potion of the land.

 After that, the land will be excavated up to 1.0m depth with keeping 1m buffer zone
from the land boundaries, the gravel is removed for the construction of A032 road.
There will be no removal of large trees in the land and the sloping will be done 1m
away from the trees, as shown in the figure-(i). Slope at the boundary area and
around the non removed large trees are one into one. (1:1) – see figure-(i)

 After removing gravel from the 1st part of the land, will be covered with the soil
uniformly, before starting excavating of gravel at the 2nd part of the land. The top
soil layer and debris, which is removed, will be deposited (re spreading) and
compaction will be preceded.

 After excavation, a planting program will be launched through out the borrow area
by using quickly growing plants.

 Preparation of access roads which facilitate the movement will proceed manually
and by machinery.

 Construction of culverts drains and silt traps etc. in order to facilitate an efficient
drainage of run-off water as well as the prevention of water pollution by silt and
other particulate matter.

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Figure – (i) Expected cross section view (after start the project)

Road boundary

Land boundary

Buffer Zone Buffer Zone

30m

1m 1m 1m 1m

Over burden 0.5m

Excavated depth 1m
450
450 450 450

Not to scale

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c. Processing

Land
Clearing

Removing
Overburde

Gravel
Excavating

Loading

Transporting
and
Maintaining

Rehabilitatio
n of the land

d. Environmental Protection

The proposed borrow site has been so planned, that the disturbance of existing environment within
the site and surrounding area will be kept at minimum. Therefore, the environmental effect caused
by the proposed borrow site will be negligible but recoverable, as the following precautions will be
taken to prevent or/ and mitigate those possible effects.

There will be no effluent or tailings discharged from the excavation except some dust emitted
during excavating and loading will be quickly diluted due to buffer zone around the land and
isolated nature of the area, the effect will be negligible.

The access road will also be sprayed with water at least four times a day to suppress dust. A well-
designed turffing system in order to protect the soil erosion of embankments around the land and
large trees which is saved will be established. A system of well-designed silt traps will specially be
constructed to ensure that no silt or particulate matter will leave the site with run-off water.

Further all the restrictions and limitations enforced by CEA, GSMB or any other regulating
authority will be strictly be followed, ensuring the environment friendly nature of the project.

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e. Machinery & Equipments

A list of equipment and machinery required for this project has been given below

Type Horse Power Rating No. of Units

Bulldozer 01
Excavator - 01
Front end loaders - 01
Dump trucks - 12
Water bowser with pump - 01
Light truck - 06

f. Rehabilitation or Reclamation of Borrow Site

After a rehabilitation of the ultimate borrow floor by re spreading top soil removed before, the land
can be used for agricultural proposes or any other suitable purpose with a minimum effort.
However, the level of ultimate borrow floor will be lower than approximately 0.5m the normal
ground level, as such eroded soil comes with storm water from surrounding area which are situated
upper to rehabilitated borrow land and will be deposited. Therefore, this area can be used as a soil
deposited sink.

3. Marketing and Sales Plan

Gravel excavated from this land will be used for Navatkuli-Kartive-Mannar road (A032)
development project , which has been awarded to the Company by the RDA.

4. Capital Costs

Total capital investment per year is 350, 0000/= Sri Lankan rupees

5. Operational Cost

Unit operation cost given bellow

Unit cost for mining (SLR./cube)  200

Unit cost for Processing (SLR/tone)  100

Unit cost for administration (SLR/tone)  60

Unit cost for transport (SLR/tone)  100

Unit Operational cost (SLR/tone)  460

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6. Employment and Training Program

The manpower requirement of this project is as follows;

a. Officer in charge Borrow Site/Safety 01 Nos.

b. Forman 01 Nos.
d. Helpers 02 Nos.
e. Heavy Equipment Operators & Drivers 04 Nos.
f. Mechanics &Helpers 03 Nos.
g. Office and Stores staff 01 Nos.
h. Security staff 02 Nos.

Total 14 Nos.

7. Environmental Impact Study

This is a IML B category project. Therefore it doesn’t need to follow EIA procedure.

8. Detailed Mine Restoration Plan

Not Applicable

9. Mine Restoration Bond

Not Applicable

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12) Phographs

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