IRON ORE

Business Plan of Iron Ore mining activity

ForMOKSHAGNA MINERALS (P) Ltd.,

IRON ORE

Iron Ore: About 98% of iron ore is used to make steel - one of the greatest inventions and most useful materials ever created. While the other uses for iron ore and iron are only a very small amount of the consumption, they provide excellent examples of the ingenuity and the multitude of uses that man can create from our natural resources. Powdered iron: used in metallurgy products, magnets, high-frequency cores, auto parts, catalyst. Radioactive iron (iron 59): in medicine, tracer element in biochemical and metallurgical research. Iron blue: in paints, printing inks, plastics, cosmetics (eye shadow), artist colors, laundry blue, paper dyeing, fertilizer ingredient, baked enamel finishes for autos and appliances, industrial finishes. Black iron oxide: as pigment, in polishing compounds, metallurgy, medicine, magnetic inks, in ferrets for electronics industry. Major producers of iron ore include Australia, Brazil, China, Russia, and India.

Estimated iron ore production in million tons for 2004according to U.S. Geological Survey[2]

CountryProduction

China 280Australia 220Brazil 220India 110Russia 95Ukraine 66United States 54South Africa 40Canada 31Sweden 22Venezuela 18Kazakhstan 17Iran 16Mauritania 10Other countries 40Total world 1250

Geothite

Limonite

Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark Grey to rusty red. The iron itself is usually found in the form of magnetite (Fe3O4), hematite (Fe2O3), limonite or siderite. Hematite is also known as "natural ore". The name refers to the early years of mining, when certain hematite ores contained 66% iron and could be fed directly into steel-making blast furnaces. Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel. 98% of the mined iron ore is used to make steel.[1] Iron ore cargoes may affect magnetic compasses. Normally, loading rates are very high, preplanning of ballasting operation is essential.The total recoverable reserves of iron ore in India are about 9,602 million tones of haematite and 3,408 million tones of magnetite. Madhya Pradesh, Karnataka, Bihar, Orissa, Goa, Maharashtra, Andhra Pradesh, Kerala, Rajasthan and Tamil Nadu are the principal producers of iron ore in the country.

Background Iron (Fe) is a metallic element and composes about 5% of the Earth’s crust. When pure it is a dark, silvery-gray metal. It is a very reactive element and oxidizes (rusts) very easily. Iron is one of the three naturally magnetic elements; the others are cobalt and nickel. Iron is the most magnetic of the three. The mineral magnetite (Fe3O4) is a naturally occurring metallic mineral that is occasionally found in sufficient quantities to be an ore of iron. The principle ores of iron are Hematite, (70% iron) and Magnetite, (72 % iron). Taconite is a low-grade iron ore, containing up to 30% Magnetite and Hematite. Hematite is iron oxide (Fe2O3). The amount of hematite needed in any deposit to make it profitable to mine must be in the tens of millions of tons. Hematite deposits are mostly sedimentary in origin, such as the banded iron formations (BIFs). BIFs consist of alternating layers of chert (a variety of the mineral quartz), hematite and magnetite. They are found throughout the world and are the most important iron ore in the world today. Their formation is not fully understood, though it is known that they formed by the chemical precipitation of iron from shallow seas about 1.8-1.6 billion years ago, during the Proterozoic Eon.

Taconite is a silica-rich iron ore that is considered to be a low-grade deposit. However, the iron-rich components of such deposits can be processed to produce a concentrate that is about 65% iron, which means that some of the most important iron ore deposits around the world were derived from taconite. Taconite is mined in the United States, Canada, and China.

Hematite

Hematite 2

Magnetite

NameThe name iron is from an Old English word isaern which itself can be traced back to a Celtic word, isarnon. In time, the "s" was dropped from usage.

SourcesIt is estimated that worldwide there are 800 billion tons of iron ore resources, containing more than 230 billion tons of iron. It is estimated that the United States has 110 billion tons of iron ore representing 27 billion tons of iron. Among the largest iron ore producing nations are Russia, Brazil, China, Australia, India and the USA. In the United States, great deposits are found in the Lake Superior region. Worldwide, 50 countries produce iron ore, but 96% of this ore is produced by only 15 of those countries.

UsesIn India, almost all of the iron ore that is mined is used for making steel. The same is true throughout the world. Raw iron by itself is not as strong and hard as needed for construction and other purposes. So, the raw iron is alloyed with a variety of elements (such as tungsten, manganese, nickel, vanadium, chromium) to strengthen and harden it, making useful steel for construction, automobiles, and other forms of transportation such as trucks, trains and train tracks. While the other uses for iron ore and iron are only a very small amount of the consumption, they provide excellent examples of the ingenuity and the multitude of uses that man can create from our natural resources. Powdered iron: used in metallurgy products, magnets, high-frequency cores, auto parts, catalyst. Radioactive iron (iron 59): in medicine, tracer element in biochemical and metallurgical research. Iron blue: in paints, printing inks, plastics, cosmetics (eye shadow), artist colors, laundry blue, paper dyeing, fertilizer ingredient, baked enamel finishes for autos and appliances, industrial finishes. Black iron oxide: as pigment, in polishing compounds, metallurgy, medicine, magnetic inks, in ferrite’s for electronics industry.

Substitutes and Alternative SourcesThough there is no substitute for iron, iron ores are not the only materials from which iron and steel products are made. Very little scrap iron is recycled, but large quantities of scrap steel are recycled. Steel's overall recycling rate of more than 67% is far higher than that of any other recycled material, capturing more than 1-1/4 times as much tonnage as all other materials combined.

Some steel is produced from the recycling of scrap iron, though the total amount is considered to be insignificant now. If the economy of steel production and consumption changes, it may become more cost-effective to recycle iron than to produce new from raw ore. Iron and steel face continual competition with lighter materials in the motor vehicle industry; from aluminum, concrete, and wood in construction uses; and from aluminum, glass, paper, and plastics for containers

Mining is the extraction of valuable minerals or other geological materials from the earth, usually (but not always) from an ore body, vein, or (coal) seam. Materials recovered by mining include bauxite, coal, copper, gold, silver, diamonds, iron, precious metals, lead, limestone, nickel, phosphate, oil shale, rock salt, tin, uranium, and molybdenum. Any material that cannot be grown from agricultural processes must be mined. Mining in a wider sense can also include extraction of petroleum, natural gas, and even water.

Steps in the mining process

1. Prospecting * to locate ore 2. Exploration to defining the extent and value of ore where it was

located ("ore body") 3. Conduct resource estimate to mathematically estimate the extent and

grade of the deposit 4. Conduct mine planning to evaluate the economically recoverable

portion of the deposit 5. Conduct a feasibility study to evaluate the total project and make a

decision as whether to develop or walk away from a proposed mine project. This includes a cradle to grave analysis of the possible mine, from the initial excavation all the way through to reclamation.

6. Development to create access to an ore body 7. Exploitation to extract ore on a large scale 8. Reclamation to make land where a mine had been suitable for future

use

*Prospecting is the act of physically searching for minerals, fossils, precious metals or mineral specimens, and is essentially analogous to fossicking.Prospecting is synonymous in some ways with mineral exploration which is an organized, large scale and at least semi-scientific effort undertaken by mineral resource companies to find commercially viable ore deposits, however prospecting is increasingly restricted to describe the activities of the amateur and hobbyist who search for small quantities of ore or mineralisation.Prospecting is increasingly a hobby or vocation undertaken as a form of relaxation and diversionary activity by modern people however in the past prospecting was the only way new mineral deposits were found.Prospecting is quite intensive physical labor, involving a considerable amount of traversing (traditionally on foot or on horseback), panning, sifting and outcrop investigation, looking for tell-tale signs of mineralisation.

Mining techniquesMining techniques can be divided into two basic excavation types:

1. Surface mining

Open-pit mining

Quarrying

Strip mining

Placer mining

Mountaintop removal

2. Sub-surface mining

Drift mining

Slope mining

Shaft mining

Hard rock mining

Borehole mining

1. Surface Mining : is a type of mining used to extract mineral deposits that are close to the surface.In most forms of surface mining, heavy equipment, such as earthmovers, first remove the overburden - the soil and rock above the deposit. Next, huge machines, such as dragline excavators, extract the mineral.Surface mining generally leaves large devastated areas, called spoil banks, unless the land is reclaimed.

Open Pit Mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow. The term is used to differentiate this form of mining from extractive methods that require tunneling into the earth. Open-pit mines are used when deposits of commercially useful minerals or rock are found near the surface; that is, where the overburden (surface material covering the valuable deposit) is relatively thin or the material of interest is structurally unsuitable for tunneling (as would be the case for sand, cinder, and gravel). Where minerals occur deep below the surface—where the overburden is thick or the mineral occurs as veins in hard rock— underground mining methods are used to extract the valued material. Open-pit mines are typically enlarged until the mineral reserve is exhausted.

Quarrying : A quarry is a type of open-pit mine from which rock or minerals are extracted. Quarries are generally used for extracting building materials, such as dimension stone. Quarries are usually shallower than other types of open-pit mines.

Strip Mining : is the practice of mining a seam of mineral ore by first removing all of the soil and rock that lies on top of it (the overburden). It is similar to open-pit mining in many regards. Strip mining is also used to extract the oil-impregnated sand in the Athabasca Tar Sands.Strip mining is only practical when the ore body to be excavated is relatively near the surface. Since colossal quantities of material often need to be removed, the excavating machinery used in strip mining is often among the largest such equipment ever constructed; drag line excavators and bucket-wheel excavators are common examples. There are two forms of strip mining; area strip mining, which is used on fairly flat terrain, to extract deposits over a large area. Contour strip mining, usually used in hilly terrain, involves cutting terraces in mountainsides following the contour of the land.

Placer Mining : (pronounced "plass-er") refers to the mining of alluvial deposits for minerals. This may be done by open-pit or open-cast mining or by various forms of tunneling. Excavation may be accomplished using water pressure (hydraulic mining), surface excavating equipment or tunneling equipment.

Mountain top Removal : In mountaintop removal mining, the targeted land is clear-cut of all trees. Miners then use explosives to remove the overburden (the rock and soil that lies above a Iron seam), exposing the Iron Ore. The overburden is pushed into a nearby valley or hollow, creating a pile below called valley fill. Meanwhile, machinery removes the coal, and it is transported to a processing plant and washed. Millions of gallons of waste from coal processing, called slurry, is often stored nearby in open pools restrained by earthen dams. Because coal usually exists in multiple seams separated by rock, miners can repeat this process over a dozen times on a single mountain, lowering its height with each seam mined.

2. Sub-surface mining or underground mining refers to a group of techniques used for the extraction of valuable minerals or other geological materials from the earth. In contrast to the other main type of excavation, surface mining, sub-surface mining requires equipment and/or manpower to operate under the surface of the earth.

In underground coalmines, another major environmental risk is fires. Hundreds of coal mines smolder in the United States, China, Russia, India, South Africa, and Europe. The inaccessibility and size of these fires many impossible to extinguish or control.

Mining industry

While individual entrepreneurs or small business can sometimes conduct exploration and mining, most modern-day mines are large enterprises requiring large amounts of capital to establish. Consequently, large, often multinational, mostly publicly listed companies dominate the industry.

Market and Sales

Orientation : Initially we are targeting only the National market which has got a high potential users.

Production Volumes : Projecting to extract 30000 tons / Month for the first year and further want to increase the production by 10% per Anum.

Efficiency: Targeting to reach 60% of efficiency in Year 1 and increase it by 10% Annually.

Major Assumptions : As the site location is closer to the national market (Chandrapur and Hyderabad area plants are with in 300 Kms from Site) with loading point of Rack being only 15 Kms and roads are already existing with the site.

Rationale for Benefits: Reduces the cost of Material by 25% to the end market due to closer distance, shorter transportation periods, which also enables us to grow in the market by 15%

Unit Prices : With analyzed Fe(T) and Tumbler Index the selling price at current market situation is RS. 1150 Ex Site

Potential Users : Iron ore is basically used by Sponge Iron* plants for smelting in preparation of an intermediatory product for steel manufacturers.

*Sponge iron is the product created when iron ore is reduced to metallic iron, usually with some kind of carbon (charcoal, etc), at temperatures below the melting point of iron. A spongy mass results (sometimes called a bloom), consisting of a mix of incandescent wrought iron and slag.The sponge would then be removed from the furnace in which it was created and repeatedly beaten with heavy hammers and folded over to remove the slag, oxidize any carbon or carbide and welding the wrought iron together. This treatment would usually create a wrought iron with about 3 % slag and a fraction of a percent of other impurities. Further treatment could add back in controlled amounts of carbon, allowing various kinds of heat treatment (e.g. "steeling").

Sales : There are More than 30 Sponge Iron Companies with in 300 Kms radius from the proposed site, the daily accumulated consumption of Iron Ore for this companies is Approximately 10000 tons

Present Suppliers : where as in the present situations the Sponge Iron companies are majorly getting there raw material from Hoespet sector which is 1000 Kms and spending around 60% more on transportation

Potential Users

Sr.No

Company Name & Address Daily Requirement

Distance from Site

1 M/S Gopani Iron & Power (India) Private Ltd. Fact:A-22, MIDC Growth Center, Tadali, Chandrapur, Maharashtra

1020 Tons/ Day 265 Kms

2 M/S Siddi Bali ISPAT, MIDC Growth Center, Tadali, Chandrapur, Maharashtra

680 Tons/Day 265 Kms

3 M/S Lloyds Metals & Engineers Ltd. Fact:A/2, MIDC Area Ghughus, Chandrapur, Maharashtra


4 M/S Gupta Metallics & Power Ltd Fact:


Rajhura, Chandrapur, Maharashtra

5 M/S Ashirwad Steels & Industries Ltd Fact: Peetampalli Approach Road Vill&Post Velliminedu, Man : Chityal, Nalgonda Dist AP


6 M/S Lakshmi Gayatri Iron & Steel Pvt Ltd, Fact: Vill: Cheekatigudem Man: Kethepalli , Nalgonda Dist, AP


7 M/S Kumar Mettulargical Corporation Ltd Fact: Chityal, Nalgonda Dist AP


8 M/S Jaycee Sponge Profiles Pvt. Ltd Fact:Kothur IDA Village:Kothur Mahuboobnagar Dist


9 M/S Amoda Iron & Steel Pvt Ltd., Fact: Jaggayyapet, Krishna Dist


10 M/S Reactive Metals of India Ltd, Fact: Kothur IDA Village : Kothur Mahaboobnagar Dist

340 Tons/ Day 260 Kms

Total 3690 Tons/Day With in 300 Kms Radius

Note: There are another 30 companies with in 300 Kms Radius with an Appr. Consumption of 10000 Tons/ Day

Nearest Competitors

Sr.No Address Capacity Distance from

Site

1 Vill & Mand : Bayyaram

Dist Khammam, AP

400 Tons/Day 70 Kms

2 Vill: Puligommi Man:

Veldurthi Dist: Kurnool,

AP


3 HRG Mines Vill: Sandoor

Dist: Bellary Karnataka

3000 Tons/Day

( Export)

1100 Kms

4 Baldotia Mines Vill Hoespet,

Dist Bellary Karnataka

2000 Tons/ Day

(Export)

1150 Kms

5 Chaplin Mines Dist

Cuddapah


Future Competitors

Sr.No Address Capacity

(100%)

Distance from

Site

1 Village : Yerraballi, Mand:

Bheemdevarpalli Dist:

Karimnagar


2 APMDC, Vill& Man:

Bayyaram, Dist Khammam

600 Tons/Day 70 Kms

3 Village: Mupparam, Mand: 400 Tons/Day 65 Kms

Dharmasagar Dist: Warangal

Investment Requirements & Project financing

Services

ML Expenses

Machinery

Site Acquisition

Resources

Rs 70 Lakhs

Maintenance 20%Initial Surveying – Rs 15 Lakhs Transportation – Rs 10 LakhsOffice &Site Establishments- 33 Lakhs

Maintenance Cost – 12.5 %

JCB’s, Trucks and Crusher Rs 272 Lakhs *

Rs 50 per Ton ExtractedOne Time Investment – Rs. 12 Lakhs

Operational Phase Year 2 and Year 3

Acquisition and Startup Year 0 and Year 1

Life Cycle Phase

Cost Impacts

Under all Scenarios

COST MODEL

Estimate of Total Project Cost

Preliminary & Pre Operative :

Geological Survey: Rs 15 Lakhs

Site Maps : Rs 2 Lakhs

Transportation : Rs 14 Lakhs

Site Establishment: Rs 18 Lakhs

Office establishment:Rs 15 Lakhs

Vehicles : Rs 10 Lakhs

Mining License:Rs 70 Lakhs

Total 1 Rs 144 Lakhs

Machinery:

JCB’s *3 : Rs 87 Lakhs (3*29 Lakhs Each)

Tippers*10 : Rs 90 Lakhs (10*9 Lakhs Each)

Crusher : Rs 95 Lakhs (1000 Tons Capacity)

Essential Tools:Rs 5 Lakhs (Spares & accessories)

Testing Equipment: Rs 6 Lakhs

Erection Charges: Rs 10 Lakhs (Installation)

Working Capital: Rs 40 Lakhs

Total2 : Rs 333 Lakhs

Grand TotalTotal 1 : Rs 144 LakhsTotal2 : Rs 333 Lakhs

Rs 477 Lakhs

Miscellaneous expenditure will be 5% of project cost

Revenue Generation

Projecting to Extract 36000 Tons/Month

Each Ton of Material extraction costs Rs 900 (Extraction Rs 700 + Levy Rs 50 + Other Expenses Rs 150)

With Analyzed Fe(T) and TI the selling price at current Market situations is Rs 1150 Ex site

Turn Over/Month = Selling price * Extracted Material = Rs 1150 * 36000 = Rs 41400000

Turn Over/Anum = Rs 41400000 * 12 = Rs 496800000 ( Rs 49.68 Crores)

Profit Ratio

Gross Profit /Month = Rs 250 * 36000 = Rs 9000000

Maintenance 10% = Rs 900000

Taxes 12.5% = Rs 1017500

Net Profit = Gross Profit – ( Maintenance + Taxes) = Rs 9000000- Rs 1917500 = Rs 7082500/ Month

Assuming to Reach 60% of projected target = Rs 7082500 * 60% = =Rs 4249500

Net Profit / Anum = Rs 50994000 (Rs 5.09 Crores App)

Note : Even if the production is 60 % of the projected production the Break even point is Reached

FINANCIAL STRUCTURE

INR %Total Budget 477,00,000Promoters 95,00,000 20%Personal Loan 6,50,000 1%Advances 150,00,000 32%Venture Capital 60,00,000 11%Bank Loan 85,00,000 18%Vehicle Finance 80,50,000 17%Total 477,00,000 100%

Cost Scheduling

Rs in Lakhs

Sr.N

o

Particulars Already

Incurred

To Be

Incurred

Total Cost

A Geological Survey Rs 7 Rs 8 Rs 15

B Site Maps Rs 1.3 Rs 0.7 Rs 2

C Transportation Rs 8 Rs 6 Rs 14

D Site Establishment Rs 3 Rs 15 Rs 18

E Office

Establishment

Rs 2 Rs 13 Rs 15

F Vehicles Rs 10 -------- Rs 10

G Mining Lease Rs 6 Rs 64 Rs 70

H JCB’s 3 No’s ---------- Rs 87 Rs 87

I Tippers 10 No’s ---------- Rs 90 Rs 90

J Crushers ---------- Rs 95 Rs 95

K Essential Tools ---------- Rs 5 Rs 5

L Testing Equipment ---------- Rs 6 Rs 6

M Erection Charges ---------- Rs 10 Rs 10

N Working Capital ---------- Rs 40 Rs 40

TOTAL Rs 37.3 Rs 439.7 Rs 477

Means of Finance

Rs in Lakhs

Sr.N

o

Particulars Amount

Already Raised

Amount

Proposed to

be Raised

Total

A Capital Rs 37.3 Rs 57.7 Rs 95

B Venture Capital -------- Rs 60 Rs 60

C Personal Loans Rs 3 Rs 3.5 Rs 6.5

D Advances --------- Rs 150 Rs 150

E Bank Loan --------- Rs 85 Rs 85

F Vehicle Loans ---------- Rs 80.5 Rs 80.5

TOTAL Rs 40.3 Rs 436.7 Rs 477

Schedule of Implementation

Sr.N

o

Particular Date of

Commencement

Expected date of

Completion

A Acquisition of ML Nov 2006 Feb 2007

B Development of Site Feb 2007 Mar 2007

C Machinery

Foundation

Jan 2007 Feb 2007

D JCB’s & Tippers Jan 2007 Mar 2007

E Arrangement of

Power

Jan 2007 Jan 2007

F Arrangement of Water Jan 2007 Jan 2007

G Plant & Machinery Jan 2007 Mar 2007

H Trail Runs Mar 2007 April 2007

I Commercial May 2007

Production

Projections of Performance, Profitability and Repayment

Production

Capacity Year 1 Year 2 Year 3 Year 4 Year 5

720000

Tons/Yr.

100%

360000

Tons/Yr.

50%

504000

Tons/Yr.

70%

720000

Tons/Yr.

100%

100% 100%

Sales

Rs in Lakhs

Heading Year 1 Year 2 Year 3 Year 4 Year 5

Sales Inc

Misc.

Rs 4140 Rs 6300 Rs 9000 Rs 9000 Rs 9000

Less Tax Rs 496.8 Rs 756 Rs 1080 Rs 1080 Rs 1080

12%

Net Sales Rs 3643.2 Rs 5544 Rs 7920 Rs 7920 Rs 7920

Cost Of ProductionRs in

Lakhs

Descripti

on

Year 1 Year 2 Year 3 Year 4 Year 5

Levy Rs

50/Ton

Rs 180 Rs 252 Rs 360 Rs 360 Rs 360

Direct

Labor Rs

50/Ton

Rs 180 Rs 252 Rs 360 Rs 360 Rs 360

Maintenan

ce Rs

50/Ton

Rs 180 Rs 252 Rs 360 Rs 360 Rs 360

Wages

Rs 100/Ton

Rs 360 Rs 504 Rs 720 Rs 720 Rs 720

Power &

Fuel Rs

100/Ton

Rs 360 Rs 504 Rs 720 Rs 720 Rs 720

Consumabl Rs 180 Rs 252 Rs 360 Rs 360 Rs 360

es Rs

50/Ton

Manufactu

ring

Expenses

Rs 400/Ton

Rs 1440 Rs 2016 Rs 2880 Rs 2880 Rs 2880

Depreciati

on &

Repairs

Rs 100/Ton

Rs 360 Rs 504 Rs 720 Rs 720 Rs 720

Other

Expenses

Rs 100/Ton

Rs 360 Rs 504 Rs 720 Rs 720 Rs 720

TOTAL

Rs

1000/Ton

Rs 3600 Rs 5040 Rs 7200 Rs 7200 Rs 7200

Gross ProfitRs in Lakhs


Net Sales Rs 3643.2 Rs 5544 Rs 7920 Rs 7920 Rs 7920

Production

Rs

1000/Ton

Rs 3600 Rs 5040 Rs 7200 Rs 7200 Rs 7200

Gross

Profit

Rs 43.2 Rs 504 Rs 720 Rs 720 Rs 720

Net ProfitRs in Lakhs


Gross

Profit

Rs 43.2 Rs 504 Rs 720 Rs 720 Rs 720

Interest

10%

Rs 22.55 Rs 17.5 Rs 15.5 Rs 4.5 ---------

Working

Capital

--------- Rs 100 Rs 144 Rs 144 Rs 144

General

Expenses

Rs 8 Rs 252 Rs 360 Rs 360 Rs 360

Term

Loans

Rs 12 Rs 75 Rs 90 Rs 45

Net

Profit

Rs 1.3 Rs 59.5 Rs 110.5 Rs 166.5 Rs 216

ROLE OF THE GOVERNMENT

Department of MinesThe Department of Mines is responsible for the survey and exploration of all minerals( other than natural gas and petroleum), for mining and metallurgy of non-ferrous metals like aluminum, copper, zinc, lead, gold, nickel, etc., and for the administration of the Mines and Minerals ( Development and Regulation) Act, 1957 in respect of all mines and minerals, other than coal, natural gas and petroleum.

The Department of Mines has jurisdiction over Geological Survey of India and Indian Bureau of Mines, both of which are subordinate offices.

CONTRIBUTION OF OTHER GOVERNMENT ORGANISATIONS

Geological Survey of India (GSI)

The GSI is the principal agency responsible for the assessment of geological and regional mineral resources of the country. GSI was established in 1851 and is one of India’s oldest investigative agencies in the field of earth sciences. Its areas of operation encompass scientific surveys and research, for locating mineral resources. GSI operates through six regional offices and four specialized wings - marine, coal geophysics, airborne surveys and training.

The GSI has to its credit geological mapping, covering an area of approximately 3.146 million sq.km, or 94 percent of the area of India. The maps are on a 1:63,360/ 1:50,000 scale, the data having been synthesized to produce 1:2,000,000 scale geological maps of India, which have been correlated with the global set up as per international standards. The GSI is also actively involved in the research and development of mapping and exploration techniques. It has set up a chain of modern petrological paleontological, chemical, mineralogical, geochronological, geotechnical and geophysical laboratories in its different operational bases, and offers its facilities and services on payment. Geological maps and data are available with GSI on a commercial basis.

Indian Bureau of Mines (IBM)

IBM is the principal government agency responsible for compiling exploration data and mineral maps and for providing access to the latest information is respect of mineral resources in the country. IBM has both regulatory as well as service functions.

IBM offers technical expertise and proven experience in the fields of geology, mine planning and feasibility studies. The geological services of IBM include survey and preparation of mine plans, preparation of geological plans, preliminary geological appraisal of mineral properties, including the formulation of an initial scheme of detailed exploration with estimate of cost and preliminary reconnaissance, quick survey to determinate potential areas out of large properties, etc.

IBM’s technical consultancy services include the preparation of techno-economic feasibility reports, evaluation of feasibility reports

prepared by other consultants and organizations etc., production planning and grade control in working mines, evolution of flowcharts for mineral benefaction and agglomeration to scale up to large commercial plants and engineering design data for commercial plants.

Besides these technical consultancy services, IBM also performs regulatory functions, namely:- enforcement of Mines and Minerals (Regulation and Development) Act, Mineral Concession Rules, Mineral Conservation and Development Rules.

IBM disseminates statistical information on mines, minerals, metals and mineral based industries through its various publications which are available for sale on commercial basis.

Mineral Exploration Corporation Limited (MECL)

MECL is a public sector company, which undertakes detailed exploration of various minerals/ores by drilling and exploratory mining. It is also engaged in proving the existence of reserves for their eventual exploitation. Exploration is taken up both on a promotional basis on behalf of the Government of India and on contractual basis for other agencies.

IRON ORE

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