PRE-FEASIBILITY REPORT -...

PRE-FEASIBILITY REPORT

FOR

3RD PHASE EXPANSION BY ADDITION OF 5TH STREAM IN ALUMINA REFINERY AT NALCO,

DAMANJODI, DIST: KORAPUT, ODISHA

AUGUST 2015

M. N. DASTUR & COMPANY (P) LTD C o n s u l t i n g E n g i n e e r s

KOLKATA

Pre-Feasibility Report for 3

rd phase expansion by addition of

5th

stream in Alumina Refinery of NALCO at Damanjodi, Dist: Koraput, Odisha

- i -

M. N. DASTUR & COMPANY (P) LTD

TABLE OF CONTENTS

Page EXECUTIVE SUMMARY .. 6 pages 1 - INTRODUCTION Project proponent & identification of the project .. 1-1 Brief description of the nature of the project .. 1-2 Need for the project .. 1-2 Demand-supply gap .. 1-4 Imports vs. indigenous production & export possibility .. 1-5 Domestic/export markets .. 1-5 Employment generation due to the project .. 1-8 Authorisation .. 1-9 Acknowledgement .. 1-9 2 - PROJECT DESCRIPTION Type of project including interlinked project .. 2-1 Location .. 2-1 Details of alternate sites considered .. 2-1 Layout .. 2-2 Magnitude of operation .. 2-3 Project description with process details .. 2-3 Basis of design .. 2-3 Technological details .. 2-5 Laboratory .. 2-21 Requirement of raw materials and probable Sources 2-21 Power requirement .. 2-23 Instrumentation, automation & communication system for the 5th stream of the alumina refinery.. 2-24 Fire detection and alarm system .. 2-25 Water supply system for alumina refinery .. 2-26 Water system for co-generation power plant .. 2-29 Fire fighting water system .. 2-31 Utility system .. 2-32 Co-generation power plant .. 2-33 Resource optimization and reuse .. 2-37 Waste Management and Disposal 2-38



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TABLE OF CONTENTS (continued)

- SITE ANALYSIS Connectivity .. 3-1 Land form, land use and land ownership .. 3-1 Topography .. 3-2 Existing land use .. 3-3 Drainage .. 3-3 Soil .. 3-4 Climatic conditions .. 3-4 Existing physical & social infrastructure .. 3-4

4 - PLANNING BRIEF Population projection .. 4-1 Nearby Existing Industries .. 4-1 Assessment of infrastructure demand (social) .. 4-2

5 - PROPOSED INFRASTRUCTURE Industrial area .. 5-1 Residential area .. 5-1 Proposed social infrastructure .. 5-2 Air pollution control measures .. 5-3 Water pollution control measures .. 5-4 Drinking and sanitation water .. 5-5 Sewage treatment plant .. 5-6 Solid waste management and disposal .. 5-7 Spent acid management 5-8 Work zone pollution control measures 5-8 Corrosion control 5-9 Plant green belt and landscaping 5-9 6 - REHABILITATION AND RESETTLEMENT PLAN 7 - IMPLEMENTATIONSCHEDULE AND COST ESTIMATES Implementation schedule .. 7-1 Cost estimate .. 7-2



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7 - IMPLEMENTATION SCHEDULE AND COST ESTIMATES (cont’d) Page Plant cost .. 7-2 Land and land development .. 7-2 Civil and structural steelwork .. 7-3 Plant and equipment .. 7-3 Technology supply by process licensor .. 7-3 Township .. 7-3 Design, engineering, consultancy services and Administration during construction (DE & ADC) .. 7-3 Contingency .. 7-4 Pre-project activities .. 7-4 Margin money for working capital .. 7-4 Interest during construction .. 7-5 Total capital cost .. 7-5 Financial indicators .. 7-5

8 - ANALYSIS OF PROPOSAL Financial and social benefits .. 8-1 Final recommendations .. 8-3

TABLES Table 2B-1 - Bauxite grade .. 2-4 Table 2B-2 - Quality parameters .. 2-5 Table 2B-3 - Annual requirement of major raw materials.. 2-21 Table 2B-4 - Estimated power requirements for 5th Stream alumina refinery .. 2-23 Table 2B-5 - Make-up water requirement for refinery .. 2-27 Table 2B-6 - Total water consumption in refinery units .. 2-28 Table 2B-7 - Make-up water requirement for power plant.. 2-30 Table 2B-8 - Power plant performance indices .. 2-36 Table 7B-1 - Plant cost estimate .. 7-4 Table 7B-2 - Capital cost estimate .. 7-5 Table 7B-3 - Financial indicators .. 7-5



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APPENDICES

App 2B-1 - Schematic representation of the Refinery .. 1 App 7B-1 - Preliminary overall implementation schedule .. 1

FIGURES

Fig. 2B-1- Site location map Fig. 2B-2- Schematic Flow diagram of EIA steps Fig. 3B-1- Topography of Alumina Refinery Area Fig. 3B-2- Existing Land Use

DRAWINGS Dwg 11253-B-02-0001 - General Layout of Damanjodi alumina refinery Dwg 11253-B-02-0002 - Block flow diagram of alumina refinery Dwg 11253-B-02-0003 - Schematic water balance diagram Aluminium refinery and co-generation plant



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EXECUTIVE SUMMARY

This summary presents a concise outline of the Pre-feasibility

Report for the proposed 3rd phase expansion by addition of 5th stream

in Alumina Refinery at Damanjodi, Odisha.

1. NALCO is planning to set up the 5th Stream in its Alumina

Refinery at Damanjodi, Dist: Koraput, Odisha, as a part of

the expansion programme (3rd Phase expansion). The

capacity of this Stream will be 1.0 MTPA. The total expansion

capacity will increase from 2.275 MTPA to 3.275 MTPA. The

processing technology will be based on medium pressure

digestion, as it is found more economical compared with the

existing atmospheric pressure digestion system.

2. The projected availability of alumina in domestic market

beyond 2015-16 is estimated at about 8 million tons based

on the assumption that the alumina refineries that are

currently under initial stages of planning will also

materialise and start production by the projected dates. In

terms of global scenario, the anticipated shortfall of alumina

in global market ranges from 2-10 million tons through years

2015, 2020 and 2025.

3. The proposed 5th stream of the Refinery will come up on the

land owned by NALCO, adjacent to the existing four refinery

streams. NALCO’s captive bauxite mine (Centre & North

block Mining Lease and South block Mining Lease) at

Panchapatmali hill is located at a distance of about 14 km

towards the North-East of the Refinery at Damanjodi,

Dist: Koraput, Odisha.



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Executive summary (cont’d)

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4. One additional overland conveyor system with length of

around 11km between Panchapatmali deposit and Refinery at

Damanjodi has been planned for transfer of bauxite. Alumina

and caustic lye storage and handling facilities have been

envisaged at NALCO’s port facility at Visakhapatnam Port

Trust (VPT) area, Visakhapatnam, Andhra Pradesh.

5. Rio-Tinto-Alcan Medium Pressure (MP) digestion process has

been considered for aluminia refining.

6. The implementation period for the project has been

considered as 48 months.

7. NALCO bauxite (from Central & North Block mining lease

and South Block mining lease of Panchpatmali deposit) is

easy to digest and most of the available alumina (tri-hydrate

alumina) can be extracted even under atmospheric

conditions. This type of bauxite however lends itself very

compatible to medium pressure (MP) digestion process

(1450C) as well, with the resulting increase in liquor

productivity. MP digestion combined with high solids

precipitation will enable NALCO to expand the production

capacity of the Damanjodi refinery by 1.0 MTPA in Line 5.

The high yield and liquor productivity will allow reduction of

the sizes of all equipment such that the facilities proposed

for expansion programme can be installed within NALCO

owned land with minor extension of existing plant boundary.

Against this, the existing technology of atmospheric pressure

digestion would have allowed expansion only by 0.8 MTPA.

The adverse impact on MP digestion caused by increase in

impurities in process circuit and higher boehmite reversion

losses, as generally seen in MP digestion plants, are not



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expected to occur with NALCO bauxite due to low level of

impurities in the same. The specific investment cost of MP

digestion is lower by about 20 per cent than that for

Atmospheric pressure digestion process due to higher

productivity. Likewise, the differential operating cost of MP

digestion is also lower by about 3 per cent. As such, it may

be concluded that MP digestion process is more favourable

for NALCO 5th Stream than atmospheric pressure digestion

in terms of both CAPEX and OPEX.

8. Bauxite is the major raw material for the refinery and will be

obtained entirely from Central & North Block mining lease

and South Block mining lease of Panchpatmali mine.

Caustic soda in the form of lye will be received by ship at

Visakhapatnam Port, stored in storage tanks at port

facilities, and then transported to refinery by rail. Slaked

Lime is used for causticization of the caustic digestion

liquor, and also for coating the filter media, shall be obtained

from nearby external source or from Madhya Pradesh and

Rajasthan. Coal required for steam & power generation at the

co-generation plant of additional capacity of 1 MTPA alumina

refinery, is proposed to be obtained from Talcher & IB Valley

coalfields of Western Odisha through linkage arrangement

and also by e-auction procurement. Coal will be transported

by rail up to the alumina refinery. Fuel oil required for

calciners will be purchased from any one of the existing

refineries at Visakhapatnam and will be transported by rail

to the refinery site.

9. The production programme will be as follows:

Facility Production

Alumina refinery 1 MTPA



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The major units of the alumina refinery will comprise the

following:

- Bauxite storage and handling system

- Grinding unit

- Pre-desilication unit

- Digestion unit

- Settler and washer unit

- Causticisation unit

- Security filtration unit

- Precipitation unit

- Hydrate classification and seed filtration unit

- Calcination and product filtration unit

- Alumina handling unit

- Caustic, acid, floculant & fuel oil storage and handling unit

- Compressor house

- Evaporation unit

- Raw water intake

- Cooling towers

- Co-Generation Plant

- Coal Handling System

- Electrical systems and power distributions

- Water supply systems

Bauxite will be sourced from NALCO’s captive mine located

at Panchpatmali. Annual requirement of bauxite for

production of 1 MTPA alumina is about 3.20 tons. Capacity

expansion in mine is also envisaged for additional production

of 3.20 MTPA bauxite.

This Pre-Feasibility Report describes proposed 5th stream

alumina refinery expansion project only. Necessary details

pertaining to mining expansion project at Panchpatmali will

be presented in a separate Pre Feasibility Report.



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10. The estimated power requirement of the refinery with

cogeneration power plant auxiliaries is given below:

5th Stream

Annual energy consumption, kWh x 106 316 Average demand, MW 43 15-min. maximum demand, MW 41 1-min. peak demand, MW 44

Power requirement will be met from co-generation power plant as well as the power supply received from Grid through wheeling arrangement from Nalco Captive power Plant at Angul.

11. The total make up water requirement for refinery and power

plant will be 572 cu m/hr and will be sourced from Kerandi

River or back water of upper Kolab reservoir or Muran river,

Koraput District.

12. Fuel oil will be required for calciner and start-up of co-

generation power plant.

13. The auxiliary facilities required for the proposed plant include

air compressors, laboratory and administrative buildings at

their respective locations.

14. The proposed refinery will generate pollutants such as fugitive

dusts, emission from boiler & calciner, ash, red mud, etc. The

required red mud storage/disposal pond and other pollution

control measures for the proposed refinery including the

cogeneration plant will be designed to achieve the desired level

of cleanliness without affecting the plant productivity and

operational economics of the plants.



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15. Implementation of various major activities has been

scheduled in a progressive manner in order to ensure

integrated execution of the project. Commissioning schedule

for Alumina refinery would be 48 months from the ‘Go-

Ahead’. It is estimated that the total manpower

requirement for 5th stream alumina refinery different

facilities will be about 462 persons.



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1 - INTRODUCTION

Project proponent and identification of the project

National Aluminium Company Limited (NALCO), a

Government of India Enterprise and a Navaratna Company, owns

and operates a large integrated Mines-Alumina-Aluminium

Complex in India. It has multi-location operations as follows:

- Mines and Alumina Refinery, Damanjodi, Dist: Koraput,

Odisha - Aluminium Smelter & Captive Power Plant, Dist: Angul,

Odisha - Port Handling Facilities, Visakhapatnam, Andhra Pradesh

(for alumina export and caustic soda import)

The Greenfield Alumina-Aluminium Complex was set up with

an initial installed capacity of 0.8 million tons per annum (MTPA)

of alumina and 0.230 MTPA of metal. The refinery was based on

bauxite from Panchpatmalli bauxite deposits; the smelter and a

coal-based captive power plant were located in Angul. The project

was started up in 1987 with technology supplied by Aluminium

Pechiney, France (now Rio Tinto Alcan). The 1st Phase expansion of

the integrated complex was started in 1997 which included

capacity augmentation of the two alumina plant streams, and

addition of another line for the refinery as well as the smelter. The

implementation of 2nd Phase expansion of the integrated complex

started in October 2004. The 2nd phase included addition of

another line(4th) in the refinery as well as smelter, and is now

operational.

Further, capacities of Bauxite Mines and 4th Stream of

Alumina Refinery have been augmented through de-bottlenecking.



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1 – Introduction (cont’d)

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The refinery also includes steam & power plants (SSP) with

capacities of 4 x 200 and 1 x 250 tons/hr of steam generation, and

4 x 18.5 MW expansion - back pressure turbines for co-generation

of power. Another backpressure turbine (5th one) is being added in

the existing SPP.

As a part of the future expansion programme (3rd Phase

expansion), NALCO is planning expansion by addition of 5th

Stream in its Alumina Refinery at Damanjodi based on

Panchpatmali Bauxite Deposits.

Brief description of the nature of the project

The capacity of the proposed stream would be one 1.0 MTPA

and processing technology would be based on medium pressure

digestion system. There would also be expansion in the mining

capacity of Panchpatmali mines by 3.2 MTPA after capacity

upgradation and M&R activities. A new overland land bauxite

conveying system is proposed to transport bauxite from central

block- sector-II and South block to proposed 5th stream in alumina

refinery.

This Pre-Feasibility Report (PFR) is based on bauxite supply

from Panchpatmali Mines and state-of-the-art process technology

of Rio Tinto Alcan International Ltd (RTAIL) for alumina production

at medium pressure (MP) digestion. The stream capacity is much

higher than any of the existing ones at Damanjodi as it is based on

the recent advancement in alumina technology as well as

equipment sizing.

Need for the project

The most commercially mined aluminium ore is bauxite, as it

has the highest content of the base metal. India has the fifth

largest bauxite reserves with deposits of about 3 billion tonnes or



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5% of world deposits. India’s share in world aluminium capacity

rests at about 3%. Production of 1 tonne of aluminium requires

2 tonnes of alumina while production of 1 tonne of alumina

requires about 2.5 to 3.5 tonnes of bauxite. The principal user

segment in India for aluminium continues to be electrical and

power distribution sector followed by the automotive and

transportation, building and construction, packaging, consumer

durables, industrial and other applications including defence.

India with its abundant supply of quality bauxite and low

cost labour has established itself as a low cost producer of primary

aluminium As per demand supply analysis of alumina, the

domestic as well as global scenario strongly favour creation of new

capacities in alumina. In this background, NALCO has a uniquely

advantageous position on account of the following factors:

- Currently NALCO sells part of its alumina produced within

India and exports the remaining quantity. NALCO exported nearly 0.94 MT, 1.30MT and 1.18 MT of alumina in the year of 2012-2013, 2013-2014 and 2014-2015 respectively. This establishes a clear opportunity for NALCO to export additional 1 MT of Alumina globally from 2015 onwards.

- There is a huge shortfall in China and GCC countries. There

is presently no operating refinery in GCC countries. The one being built in Saudi Arabia would be captive to the smelter and the second being planned in UAE is in initial stage of implementation. NALCO is favourably placed to export their surplus alumina to these countries apart from USA and Russia nearby.

- NALCO being a consistent exporter of alumina for more than

two decades has earned the impeccable reputation of product quality and alumina supply commitments in international markets. NALCO therefore has the capability to market higher quantum of alumina in domestic as well as international market.



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- NALCO is one of the low cost producers of alumina in the

world owing to having access to bauxite deposits with a low landed cost at the plant. Consequently, it has a far greater capability to complete with other alumina producers in the domestic as well as international market even if there is a surplus of alumina in the market.

In view of above, the project comes up as the need of the

hour and its marketability is quite assured.

Demand-supply gap

The projected availability of alumina in domestic market

beyond 2015-16 is estimated at about 8 MT based on the

assumption that the alumina refineries that are currently under

initial stages of planning will also materialise and start production

by the projected dates. The alumina demand is projected to be

about 13 MT & 25 Mt in the years 2020-21 & 2025-26 respectively.

Based on the demand availability scenario of alumina, the

anticipated shortfalls in the domestic market have been estimated

below:

2015-16 2020-21 2025-26 A. Demand .. 6 13 25 B. Availability .. 8 11 14 C. Likely import .. 0.4 0.8 1 D. Shortfall (A-B-C) .. (-) 2.4 1.2 10

From the above it is seen that there is surplus alumina

supply in India till 2015-16 which gradually reduce and generates

a shortfall in 2025-26.

In terms of global scenario, the anticipated shortfall of

alumina in global market ranges from 2-10 MT through years 2015,

2020 and 2025.



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Import vs. indigenous production and export possibility

The production of Alumina in India is presently around 4.8

MT. In addition, a number of alumina refineries are reported to be

in various stages of implementation. Besides, expansion of some

plants has also been undertaken. The total alumina production is

likely to be around 10.8 MT in the year 2020-21 following the

completion of the proposed expansion and implementation of new

units.

India is currently importing and also exporting alumina.

However, export of alumina from India has been much more than

import, and India exported alumina mainly to China, GCC

countries, Romania and Egypt in recent years whereas Australia is

the major importing country, as presented below:

2008-09 2009-10 2010-11

Import of India 212.6 337.1 534.1

Export of India 968.2 702.8 681.9

Domestic/Export markets

Consumption growth of aluminium over the last 5 years has

been about 11 per cent. According to projections made by NALCO

and Mckinsey & Co, CAGR of demand for aluminium in India will

be 13-15 per cent from 2012 to 2022, and 9-11 per cent from 2010

to 2015 respectively. Demand for alumina is mainly driven by

primary aluminium. At present the per capita aluminium

consumption in India is very low at 1.3 kg and is expected to

increase subsequently. Considering the growth rate of alumina to

be same as growth rate of aluminium and considering

Source: Various issues of Indian Mineral Yearbook



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past consumption of alumina, the likely domestic demand for

alumina in the years 2015-16, 2020-21 and 2025-26 could be as

given below:

Year Alumina demand

mill. tons

2015-16 6 2020-21 13 2025-26 25

Currently sectoral consumption of aluminium in India is

given below:

Sector Share %

Packaging 4 Construction 13 Transportation 15 Electrical & power distribution

48

Industrial machinery 7 Consumer durables 7 Others 6

Total 100 Source: AAI National directory of aluminium industry 2010.

Indian architects are gradually using more aluminium for

decor and style. Rising per capita income, demand of smaller

houses, easy access to credit, rural housing schemes run by state

governments are key growth factors in India. These factors would

result in healthy growth in both urban and rural construction

areas till the year 2020, and well beyond. Besides, a huge

investment is planned for the infrastructure development of the

country in the 12th five year plan. There would be large scale

investments to tackle energy shortages, which would involve

the use of aluminium for power transmission lines, while the



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government’s tax breaks for wind-farm projects and renewable

energy sources would boost demand for aluminium for use in the

production of wind turbines. As per the 11th and 12th plans there

would be a total consumption of about 4 million tons of aluminium

in the power sector by the year 2020. Besides, there is a possibility

of increase in demand once the country having signed the

international civil nuclear co-operation deal starts building nuclear

power plants. The developed countries have on an average 140 kg

of aluminum per vehicle, while India is at 40 kg levels. First

aluminium can body manufacturing facility - Can Pack of Poland

came into operation in India in July 2009. Can is a major

consumption form of aluminium, and is expected to contribute to

aluminium growth in India in a big way. Accordingly, the average

growth rate of aluminium demand works out to be 12 per cent.

On analysis of global market it was observed that the future

world demand for alumina will be primarily driven by production of

primary aluminium. It was also observed that world consumption

of primary aluminium had almost doubled between 2002 and 2011.

According to recent projections by CARE Research, demand growth

for primary aluminium for 2010-2015 would be 5.3 per cent.

Considering this projection, past trend in consumption of

aluminium and prevalent global economic turmoil due to financial

crisis of Europe, the likely world demand for primary aluminium in

the years 2015, 2020 and 2025 could be 51, 65 & 72 MT

respectively. The likely availability of primary aluminium in the

years 2015, 2020 and 2025 is estimated to be 50, 55 & 56 MT

respectively.

The likely demand for alumina considering the requirement

for production of primary aluminium, as well as the demand for

other end-uses, could be as given below:



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Alumina, mill. Tons

Year For

aluminium(1) For other end-uses(2) Total

2015 101 5 106 2020 120 5 125 2025 129 6 135

NOTES: (1) At 2 tons alumina per ton of aluminium. (2) At 4.5 per cent of alumina for aluminium production.

Employment generation due to the project

It is estimated that the total direct employment generation

from the 5th Stream expansion project will be about 462. In

addition to this, mining expansion project will also generate

number of direct employment and manpower requirement of mining

expansion project is presented separately in the pre feasibility

report for mine.

The 5th stream Alumina Refinery will be headed by a Deputy

General Manager (DGM) and he will report to the existing GM

(Refinery) of NALCO. As the 5th stream refinery is an expansion in

the existing Refinery so it is presumed that the existing corporate

administrative service will be available for necessary help so only a

skeleton administrative service is considered for this expansion.

The new DGM who will be the in-charge of the new expansion unit

and will report to the existing General Manager who is the full-time

Chief Executive of the total Plant. The DGM will be responsible for

the new units operations including planning, production,

maintenance and services, quality, safety & environment).

The DGM will be assisted by senior managers for production

and for maintenance and services. The quality control and Lab will

be headed by a Metallurgist and will directly report to the DGM.

The summary of manpower is given below:



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Admin dept M E S HSK SK SSK O Total on pay roll

Refinery

Administration 5 10 10 25

Works management 4 6 6 10 8 7 2 43

Maintenance & services

4 28 21 25 48 22 4 152

Production 5 38 30 26 95 45 3 242

Total 18 82 67 61 151 74 9 462

(M–Management staff , E–Engineers and officers, S–Supervisory staff HSK– Highly skilled staff, SK–Skilled staff, SSK– Semi skilled staff O–Office staff)

Authorisation

National Aluminium Company Limited (NALCO) vide its

Letter Reference No. P&T/CONT/61 dated 9th February 2015

commissioned M. N. Dastur & Company (P) Ltd, Consulting

Engineers, Kolkata to prepare a Pre-Feasibility Report on

5th stream alumina refinery expansion project.

Acknowledgement

CONSULTING ENGINEERS gratefully acknowledge the

co-operation and assistance extended by NALCO in preparation of

this Pre-Feasibility report.



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2 - PROJECT DESCRIPTION

This Chapter gives an elaborate description of the

installation of 5 th stream in the Alumina Refinery along with its

auxiliaries and necessary enablers.

TYPE OF PROJECT INCLUDING INTERLINKED PROJECT

NALCO is planning 3rd phase expansion by addition of 5th

Stream in its Alumina Refinery with proposed capacity of 1.0 MTPA

at Damanjod, Odisha. There will also be expansion in the mining

capacity of Panchpatmali mines by 3.20 MTPA after capacity

upgradation and M&R activities. A new overland land bauxite

conveying system is also proposed to transport bauxite from

central block- sector-II and south block mining lease to proposed

5th stream in alumina refinery.

LOCATION

NALCO intends to set up 5th stream in Alumina Refinery

within existing plant of NALCO. NALCO Refinery is located at

Damanjodi in Koraput District of Odisha State, India. The tentative

co-ordinate of the existing plant is 18°46'20"N/82°55'1"E. The

location of the plant is shown in Fig. 2B-1 on the next page.

DETAILS OF ALTERNATIVE SITE CONSIDERED

This proposed project is a part of 3rd Phase expansion plan of

NALCO that includes expansion of 1.0 MTPA Alumina production

by introducing a 5th stream in its Alumina Refinery. This expansion

project is sited within the existing plant of NALCO at Damanjodi,

Odisha and no other alternate sites have been considered. Total

area of the existing plant is around 615 acres out of which,

approximately 62 acres will be utilised for 5th stream expansion.



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2 – Project description (cont’d)

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LAYOUT

For the refinery, all the new facilities have been proposed to

be installed within the existing land limit of NALCO. Though in

order to accommodate some of the proposed units, the existing

boundary wall of works needs to be modified at different locations.

Plant general layout of Damanjodi alumina refinery 11253-B-02-

0001, showing the proposed facilities is enclosed with this report.

FIG. 2B-1 : SITE LOCATION MAP



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MAGNITUDE OF OPERATION

Addition of 5th stream in alumina refinery will increase the

alumina production capacity by 1 MTPA. The annual requirement

of bauxite for production of 1 million tons of alumina will be about

3.2 million tons. Mining activity at Central Block Sector-II & south

block of Panchpatmali bauxite mine (Captive mine of NALCO) will

have to be geared for this scale of operation.

PROJECT DESCRIPTION WITH PROCESS DETAILS

The process technology for 5th Stream is based on medium

pressure digestion of bauxite from Panchpatmali mines. This

enables complete digestion of gibbsite at reduced residence time

and higher liquor RP (Al2O3/Na2O ratio), though at a higher

digestion temperature when compared with atmospheric pressure

digestion.

A block flow diagram of alumina refining process is placed as

Drawing 11253-B-02-0002 that reflects the various processing

steps adopted. The flow sheet is similar to the one for existing

plant, except that medium pressure digestion process has been

recommended rather than atmospheric pressure digestion. A

schematic representation of the Refinery is furnished in

Appendix 2B-1.

Basis of design

The basis of design for Stream-5 is the Process Package

received from Rio Tinto Alcan International Ltd. (RTAIL), who has

also been associated with NALCO expansions under Phase-I and

Phase-II, besides the Greenfield plant itself. This technology is

being followed in almost all the plants worldwide that are based on

use of gibbsitic bauxite. As the medium pressure digestion

technology has now been offered by RTAIL to achieve 1 mtpa

production rate from a single stream at much higher liquor

productivity, it has become quite attractive to adopt at NALCO.



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The bauxite grade considered is as given in Table 2B-1.

TABLE 2B-1 - BAUXITE GRADE

Al2O3 Total .. 45.20 % ATH .. 40.4 % SiO2 Total .. 2.70 % SiO2 Reactive .. 1.96 % Fe2O3 Total .. 24.40 % CaO .. 0.05 % C Mineral .. 0.024 % C Organic .. 0.065 % C Total .. 0.089 % S Total .. 0.021 % TiO2 .. 2.22 % P2O5 .. 0.065 % LOI .. 25.0 %

As the medium pressure digestion process may lead to higher

build up of impurities, the plant design has considered that the

liquor of this stream will not be mixed with the existing streams.

Based on operating experience, NALCO may decide to mix these in

future. However, due to relatively clean Panchpatmali bauxites, the

liquor impurities are expected to remain close to existing levels in

spite of medium pressure digestion.

The precipitation process will be based on the Rio Tinto

Alcan/AP Sursat process comprising high concentration solids

precipitation that is currently in application at the NALCO

Damanjodi refinery. This will provide the highest possible liquor

productivity (yield) in conjunction with digestion at 145OC.

International quality standards are envisaged for alumina

produced such that the product alumina can be exported to

consumers worldwide. The quality parameters considered are as

given below in Table 2B-2.



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TABLE 2B-2 - QUALITY PARAMETERS

Loss On Ignition 300 - 1000°C .. 0.5% - 1.0% Bulk Density (t/m3) .. 0.90 - 1.05 Particle Size Distribution +125 µm .. 15% max - 45 µm .. 8.0% - 10.0% max BET Surface Area .. 55 to 80 sq m/g Soda Content (w/w %) .. 0.32 - 0.42 Soluble Soda Content .. <5% of total soda

The latest equipment design and sizes have been considered

so as to minimize the operation and maintenance requirement.

Technological details

Bauxite handling and secondary crushing: Bauxite from

Panchpatmali deposit will be brought to the new bauxite storage

area (adjacent to the existing one) of the refinery by overland

conveyor. It is proposed to provide independent bauxite storage

facility such that normally Panchpatmali bauxite can be fed to

Line-5. Two additional stock piles are considered for 5th stream.

Combined capacity of the two stock piles considered will be about

360,000 tons. The bauxite to Line-5 will be separately handled and

secondary-crushed in a manner similar to the existing plant, and

no significant change is envisaged. The product size envisaged is

100 per cent passing 30 mm.

Bauxite grinding: The crushed bauxite will be ground in

open circuit ball mills to a product size of:

- P100 of approximately 1,700 µm - P95 of approximately 600 µm - P80 of approximately 250 - 300 µm



5th



2-6


The green liquor from evaporation is extracted (at about

103 0C), from a suitable stage of digestion area heaters, as feed to

grinding mill. The ground product is maintained at very high

solids concentration (about 1000 g/L) for improved performance of

pre-desilication, and reduced steam injection into the first digester.

Milk of lime is added at the mill feed end at a rate of about 0.3 per

cent CaO on dry bauxite for phosphorous control in process liquor.

Two ball mills (1 working + 1 standby) are proposed for this

expansion project

Pre-desilication: Reactive silica (kaolinite) from bauxite goes

into solution when it comes in contact with caustic soda. It re-

precipitates in various stages of the Bayer process at lower caustic

concentration, high residence time or at elevated temperature.

The purpose of providing desilication is to react and

precipitate a significant proportion of the soluble silica prior to

digestion. This is performed by heating up the mill slurry to an

optimum desilication temperature (102oC) with steam injection,

and then providing residence time for the silica precipitation

reaction in agitated tanks.

Desilication step may be carried out in the slurry prior to

digestion (called pre-desilication), or after digestion (and dilution -

called post-desilication), or both, as is being practiced in the other

4 lines at Damanjodi. Pre-desilication is preferred because of the

following reasons:

- Silica scales during digestion are drastically reduced,

which is very critical for medium and high pressure digestion.

- Auto precipitation of hydrate (that occurs significantly

in post-desilication) does not take place if post desilication is avoided.



5th



2-7


- Sand separation step, that was required for protecting

the post-desilication tank agitators, can be avoided.

Post desilication will occur in digesters during the digestion

step at medium or higher temperature digestion.

For Line-5 there will be provision for direct heating of

bauxite slurry in injection heaters before entering pre-desilication

tanks as in the existing plant. The heated slurry will be sent to the

first online pre-desilication tank.

Digestion: The aim of Digestion is to react the bauxite ore

with caustic liquor at the prescribed temperature to achieve the

required extraction of gibbsitic alumina and to reduce silica

concentration in the process liquor to within acceptable level.

Full utilization of bauxite resources is dependent on the

efficiency of digestion. The most important parameters for

digestion are:

- Digestion temperature - Residence time - Caustic concentration - RP (Al2O3/Na2O) of liquor after digestion - Silica concentration in liquor after digestion

A dual stream digestion process has been proposed in which

green liquor is heated independently with the recovered process

flash vapour (regenerative steam) and finally by live steam in

heaters; and the desilicated bauxite slurry is mixed with the hot

liquor at entry to the first digester. Sparge steam may also be

required to be added in the first online digester in order to attain

the required slurry temperature (145 0C). Sufficient residence time

(about 1.3 - 1.5 hours) is allowed for gibbsite extraction and

adequate desilication of the resulting slurry.



5th



2-8


Flash vessels are used to gradually reduce the slurry

pressure to atmospheric and concurrently remove water, enabling

heat recovery to the green liquor. Water is removed in the form of

flash vapour from each flash stage.

Slurry from last flash tank passes into the Blow-Off Tank

where dilution liquor (first washer overflow) is added. Flashing, if

any, is transferred to the Relief Tank as also from the pressure

relief lines of pressure safety valves in this area.

The flash condensate from heaters is pumped to the process

condensate tank in the Tank Farm; and the MP live condensate is

flashed to the LP condensate pressure after which it is pumped to

the power plant for recycle. The green liquor caustic concentration

has been specified at approximately 190 g/L.

The digestion parameters are carefully chosen so as to

minimize boehmite and gibbsite reversion. The impurities present

in bauxite also dissolve in the liquor to various degrees during

digestion; notable being organics, vanadium, phosphate, etc. The

solids residue after digestion (red mud) contains alumina in forms

that cannot be extracted at the adopted digestion parameters.

Acid cleaning provision is made for all heaters in this area.

As such, a new Acid Cleaning area has been added for Line-5 to

facilitate cleaning of equipment in Digestion and other areas. The

diluted and passivated acid will be pumped from Acid Cleaning

area, passed through the digestion heater tubes as required and

returned to Acid Preparation. In this manner the acid will be

circulated through digestion heaters for cleaning.



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2-9


Red mud settling: The objective of Settling Area is to

separate the red mud solids from aluminate liquor, and to have

minimal suspended solids in the overflow.

The separation of red mud from the liquor will be done in Rio

Tinto Alcan’s (RTA’s) proprietary high rate decanter (HRD). It is a

high performance thickener where very high settling rates as well

as high underflow solids concentration are achieved with the help

of modern synthetic flocculants. The unit size and residence time

being much shorter than conventional decanters, the temperature

drop and resulting alumina hydrolysis loss is significantly reduced.

The overflow liquor from HRDs, 765 cu m/h/decanter at

103OC and containing approximately 150-200 mg/L of suspended

solids will gravity fed a settler overflow tank from where it will be

transferred by pump to Security Filtration area.

A part of HRD Overflow is used for preparation of tri calcium

aluminate (TCA) with milk of lime such that the resultant solids

concentration is 40 g/L with a residence time of about 2 hours at

100OC. The TCA slurry is continuously dosed into HRD Overflow

being pumped to Diastar filters so as to maintain 2.9 g/L solids in

the feed to filters. The TCA forms a porous coating of coarse solids

on the filter leaves of the security filters. This coating enhances

the operating cycle of filter by preventing blinding of filter cloth.

Each HRD will be de-scaled at approximately 3 months

intervals. The HRD’s will be cleaned by caustic cleaning/hydro

blasting.



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2-10


The selection of flocculants is very important for the

optimum performance of HRDs. The selection is made by carrying

out tests with various flocculants on the red mud slurry at varying

dosage rates. Two types of flocculants (identified as ‘A’ and ‘B’) will

be used for decanters. The flocculant solutions will be prepared in

accordance with recommendations of the supplier and RTAIL; and

fed to HRDs as required in the feedpipe and feed-well.

Red mud washing and mud disposal: The aim of mud

washing is to recover the valuable soda from the HRD Underflow

stream such that net soluble soda losses are approximately equal

to 10 kg Na2O/t alumina, and the washed mud will be thick

enough for stacking in the mud disposal area.

Mud thickening and washing are carried out in Deep Cone

Washers (DCW) operating in a series of counter-current stages.

While the main objective of HRD was to minimize solids suspended

with the overflow, and the underflow solids concentration was a

minor objective; the main objective of DCW is to achieve high

underflow solids concentration. As a result of high underflow

solids concentration, the requirement of wash stages to achieve the

same degree of soda loss, everything else being unchanged, is

much reduced with the installation of DCWs (RTA proprietary

design). Five wash stages have been proposed with a view to limit

the soda loss to within 10 kg Na2O/t alumina.

The underflow mud from HRD is continuously transferred

from the first stage washer towards the last stage; while water is

added to the last wash stage, and is continuously transferred

towards the first one – thus ensuring counter current washing.



5th



2-11


The mud exiting the last washer will be transferred by

positive displacement pumps at 1,000 g/L solids concentration and

14 g/L caustic and stacked in the existing red mud disposal area.

This area also provides liquor for causticization in order to

maintain liquor causticity of Bayer circuit.

Flocculant preparation: A common facility will be provided

for preparation of secondary flocculant as per recommendation of

flocculant supplier as well as RTAIL, the supplier of HRDs and

DCWs to their proprietary design.

It has been proposed to use three types of flocculants – - Flocculants A and B for HRDs, and - Flocculants B and C for DCWs The flocculent preparation facility will include handling of

liquid Neat Flocculant containers, facility for primary and

secondary dilution and the requisite pumps for uninterrupted

supply of any of the recommended flocculent to each HRD and

DCW.

Primary dilution of flocculent will be done in alkaline media,

for which fresh caustic will need to be added to each batch of

flocculant.

Each HRD and DCW will be provided dedicated pumps for

the two types of flocculent - positive displacement, low shear

pumps that will minimize flocculant shearing. The pump speed

will be regulated by a VFD to eliminate the need of control valves.

The two types of flocculants for DCW (identified as ‘B’ and

‘C’) will be used depending upon the caustic concentrations

prevailing in DCWs.



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2-12


Liquor causticization: The carbonates and/or organics

from bauxite may get into the process liquor which may lead to

degradation of plant liquor and increase of carbonate content. The

objective of the liquor causticization area is to control the buildup

of inactive sodium salts - principally Na2CO3 in the liquor circuit,

which will otherwise reduce process efficiency if left to accumulate.

The plant is designed for a liquor causticity level of 88 per cent.

Causticization of plant liquor is carried out by reacting it

with milk of lime for conversion of sodium carbonate back into

sodium hydroxide. By adding adequate excess lime other liquor

impurities such as P2O5, V2O5, As2O5, TiO2, F etc. are also removed.

For optimum plant operation and liquor productivity,

causticity of plant liquor needs to be controlled through

causticization of a suitable DCW overflow with lime slurry at

prescribed temperature and residence time. The selection of DCW

liquor to be causticized and the feed rate are decided on the basis

of carbonate destruction required for maintaining the prescribed

causticity.

For Line 5, the suggested stream for liquor causticization is a

mixture of stabilization liquor and DCW 3/4 overflow liquor.

Causticization will be carried out at 95oC and residence time of

2.5 hours. After causticization the slurry will be fed to a thickener,

underflow of which will go to a DCW downstream (to DCW 4/5);

while the thickener overflow will be taken to an upstream DCW (to

DCW 2/3).

Security filtration: The objective of Security Filtration area

is to remove most of the red mud solids from HRD Overflow such

that the filtrate contains less than 20 mg/L suspended solids. If

not controlled, the product alumina will contain higher than

acceptable impurities.



5th



2-13


The HRD Overflow is to be carried out in pressure filters; the

existing NALCO Streams-1, 2 and 3 had adopted horizontal Kelly

filters. The more recent Diastar filters have been introduced in

Line-4, and the same are proposed for Line-5 as well. The benefit

of these filters lies in achieving higher specific filtration rates (up

to 1.2 cu m/sq m/h against 0.8 cu m/sq m/h achieved in Kelly

filter).

As these filters operate in closed cycle automatically, the

operator is exposed much less to hot caustic fumes. The wash

water consumption is also reduced since back-wash of filters is

done by filtered liquor itself.

A specific filtration rate of 1.17 cu m/sq m/h (max.) and

1.0 cu m/sq m/h (normal) has been considered for design. As

such, three operating and one spare filters of 460 sq m area each

have been considered adequate.

An aluminate liquor storage capacity equivalent to about

2 hours has been provided. This appears adequate in view of

additional storage provisions for spent and green liquors.

Heat interchange: The heat interchange devices/plate heat

exchangers (HID) will cool the aluminate liquor coming from

security filtration area to the temperature required by the

precipitation area. The heat removed will be used to heat the spent

liquor coming from white side on its way to the evaporation area

and to heat the washer overflow and stabilization liquor coming

from the DCW 3 en route to the causticization area.

The filtered aluminate liquor (AL) comes out of Security

Filtration at 1030C. This needs to be cooled to about 700C, and

cooling is achieved by exchanging heat with a mixture of DCW 3



5th



2-14


overflow & stabilization liquor being sent for causticization, and

spent liquor (SPL) being sent to Evaporation. The Heat Interchange

Department (HID) provides a series of stainless steel plate heat

exchangers for exchanging heat of aluminate liquor first with

causticizer feed (DCW 3 overflow and stabilization liquor) to heat it

from 70oC to 96oC in the first stage coolers; and then with spent

liquor to heat it from 490C to 78-800C in the second stage coolers.

Due to high flow rate involved, the spent liquor heaters

require a large heat transfer area (about 920 sq m). As such,

2 stages of plate heat exchangers, each 460 sq m, have been

considered.

These plate heat exchangers will be periodically cleaned with

sulphuric and nitric acid for descaling on both sides.

Hydrate filtration: The seed slurry from precipitation area

will be filtered on large diameter vacuum disc filters. The coarse

seed cake will be slurried with previously cooled aluminate liquor

(AL). The aluminate liquor will be directed to the inclined portion

of cake discharge chutes so as to form a liquid film at its base.

This film will aid in sliding the filter cake into the seed tank. It is

proposed to feed the cake discharged from the 3 operating filters

into one operating seed tank.

The product hydrate slurry from hydrate classifying cyclones

is to be filtered on 1st Stage Product Filters for separation of spent

liquor from the coarse product. The product cake is to be slurried

with product wash filtrate and pumped to product filters.



5th



2-15


The spent liquor filtrate collected from various filters will be

used for dilutions as required, and for preparing caustic cleaning

liquor. The remaining liquor is to be hydro cycloned for removal of

residual solids (hydrate), that will otherwise reduce liquor

productivity, before being sent to plate heat exchangers..

It is preferable to use large diameter disc filters (44 sq m

discs) for seed filtration in order to minimize number of installed

filters; whereas smaller (20 sq m discs) for 1st Stage Product

Filters.

Precipitation: The Precipitation area is designed to achieve

a chemical yield (liquor productivity) of 92.6 g/L, which is essential

for achieving the rated production capacity. The precipitation

process will be based on the Rio Tinto Alcan/AP Sursat process

that is currently in application at the NALCO Damanjodi refinery.

The seed slurry will arrive at Precipitation area through three

pipelines, two of which will be in use at any time. Split flow of

seed slurry will be used such that discharge of one line is led into

the first online precipitator, and that of the other line into the

second one. Split flow will be used as a lever to reduce the hydrate

occluded soda content by reducing the super saturation level in the

first stage of precipitation.

Inter stage Coolers (Barriquand type) will be provided

alongside precipitation tanks 4, 5, 6, 7, 8, 9 and 10 to increase

liquor super-saturation and thus maintain high liquor productivity.

As the slurry proceeds through the precipitators, the hydrate seed

particles will be enlarged and strengthened by hydrate

precipitation. Typically, the slurry from the last on-line precipitator

will contain hydrate with 10 - 12 per cent -45 microns at ~900 g/L

solids.



5th



2-16


Slurry from third-last precipitator is to be pumped to the

classifying cyclones for separation of coarse product hydrate, while

the fine slurry will be returned to the second-last precipitator.

Slurry from the second-last precipitator is to be pumped to the

seed filters, while the last precipitator serves as buffer storage.

Hydrate classification: Classifying cyclones will be

provided for separation of coarse hydrate particles as product. The

cyclones are to be placed in two stages such that the coarse

underflow of the first stage is fed to the second one for obtaining a

close size range of the product underflow.

The first stage cyclone will receive slurry from the third-last

precipitator. As this slurry will be at about 900 g/L solids, it

needs to be diluted to 400 g/L by Spent Liquor (SPL) addition in

the feed pipe. The overflow of these cyclones is returned to the

second last precipitator, while the underflow will be fed to the

second stage cyclones after dilution.

The second stage cyclone overflow will also be returned to

the second last precipitator, while underflow (the product) is sent

to the 1st Stage Product Filter.

Hydro cyclones of 280 mm diameter are considered for both

the cyclone stages.

Second stage filtration: The second stage product filtration

area has been designed for the purposes as give below:

- Wash the hydrate filter cake such that the soluble soda content is less than 200 ppm Na2O on calcined alumina basis

- Produce a hydrate filter cake with a moisture content of

around 5.5 per cent which is suitable for feeding to calciner.



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2-17


The filter cake from 1st Stage Product Filter will be slurried

with the second stage wash filtrate; and pumped as feed to the

second stage product filters. 2nd Stage Product Filter has been

preferred over vacuum drum filters since higher solids loading (up

to 3 t/sq m/h) is possible due to horizontal bed, and a single 2nd

Stage Product Filter will be adequate for Line-5. Cake can be

effectively washed on the filter surface as 3 stage counter current

washing is possible.

The filter cake drops into a conveyor that takes it to the

calciner for stream 5, or, through reverse rotation of the conveyor,

to hydrate storage when feeding to calciner is stopped.

The filtrate and wash filtrates are collected separately and

the wash filtrate is sent to the 1st Stage Product Filter for cake re-

slurry. The remaining mixture of filtrates is added (as stabilization

liquor) to washer 3 overflow as causticizer feed after cycloning.

Calcination: A fluid bed calciner will be provided to work as

a dedicated calciner for Line-5. The washed product hydrate will

be fed to the calciner to get converted to alumina under operating

temperature of 1,000-1,100 0C maintained by combustion of

furnace oil.

The hydrate fed to calciner is expected not to exceed 7 per

cent moisture in order to minimize fuel consumption. Besides, the

calciner will be designed to limit particles breakage across the

equipment to 3 per cent. The product discharged by calciner will

be cooled to within 800C in order to protect the belt conveyors and

also to attain higher thermal efficiency. The electrostatic

precipitator associated with the calciner shall be provided with an

extra field such that permissible particulate emission levels are

achieved even with one field out of service.



5th



2-18


Alumina handling, storing and wagon loading: Alumina

handling and storage system will be augmented for handling of

additional 1 million tons alumina. The twin conveyors of

calcination plant for 5th Stream expansion will feed either of two

new conveyors. One of the new conveyors will be used for feeding

existing conveyor for onward transmission and despatch of

alumina through existing silos. The other new conveyor will be

used for feeding for onward transmission and despatch of alumina

through proposed two numbers new silos. Two (2) tracks below the

alumina silos for wagon loading and one full CSR track at the

north of the new silos for stabling the rake have been proposed at

the same level of the existing tracks. These tracks will be

connected with the ‘Holding Yard’.

The alumina powder will be transported from alumina plant

to the Visakhapatnam Port in special BTAP tank wagons, unloaded

and stored therein for subsequent despatch for loading into ships.

One (1) concrete silo (silo No. 4) of capacity 25000 tons is

envisaged at port facilities of NALCO at Visakhapatnam for storing

of alumina.

Evaporation: The objective of Evaporation area is to remove

sufficient water from the process liquor stream to maintain the

target caustic concentration of liquor to digestion, and to provide

sufficient liquor storage between the red and white sides of the

refinery to allow an adequate buffer for continuous operation of the

refinery.

A storage volume for spent liquor equivalent to about 3

hour’s residence time is provided in the area. Green liquor will

also be stored in this area for a residence time of 3.5 hours. There

being additional storage of spent liquor in the Hydrate Filtration

area, this provision is considered adequate buffer capacity for

uninterrupted plant operation.



5th



2-19


Long tube, falling film, counter current, sextuple effect

evaporator sets will be installed as in the existing plant. The

normal capacity of each unit will be 135 tph with 6 body, 6 effect

configuration as normal operation. However, in case higher

evaporation rates are required (e.g. due to exceptionally heavy

rainfall periods), it is possible to operate under varied conditions,

but by sacrificing steam economy. The same evaporator set will be

able to provide about 185 tph with 6 body, 5 effect configuration,

and 165 tph with 5 body, 5 effect configuration (in case one of the

bodies is bypassed for maintenance etc.).

The nominal evaporation load is 231 tph which means

normally both the units will be in operation. The caustic

concentration of feed liquor (spent liquor) is 153 g/L as Na2O,

while the concentrated liquor (Green Liquor) is required at 196 g/L.

The target steam economy with the normal 6 body, 6 effect

configuration is 3.6 t/t.

Condensate tank farm: The condensate storage area will be

designed to collect the process condensate from digestion and

evaporation areas; and its distribution to the appropriate users

around the refinery. This area will also have provision for receiving

the steam condensate that has been dumped by transmitters and

valves due to high conductivity in the steam condensate lines to

power plant.

Evaporation condensate being of better quality than

digestion condensate (due to absence of red mud carry over), will

be exclusively used for product wash and cooling towers make up.

The excess evaporation condensate (high quality or HQ condensate)

will overflow into the digestion pocess condensate tank where red

mud pond return water will be added to produce the required



5th



2-20


amount of red mud wash water for feed to DCW 5. In the absence

of, or during shortage of HQ condensate fresh water may be used

for product wash, while use of red mud pond water will be

increased in the other red areas.

The residence time provided for HQ as well as process

condensates being 5 hours, disruptions in operation of the

operating units can be easily handled without wasting/overflow of

condensates.

Acid cleaning facility: The acid cleaning facility is designed

for circulating diluted acid, supplemented with an inhibitor and a

defoamer, across process units that are susceptible to scaling and

resulting in lowering of throughput. This generally happens in

plant areas heavily dependent on heat transfer such that the

surfaces get scaled e.g. in digestion (liquor heaters), HID (plate

heat exchangers), evaporation (calendria) etc.

A common facility is, therefore, provided for supplying the

acid of acceptable quality to the above areas whenever a fall in

performance is observed.

It is anticipated that annually about 1,000 tons of

concentrated sulphuric acid will be required. The acid will be

brought by road tankers and stored in a tank (70 cum capacity)

bounded within a dyked area. Also within the dyked area will be

one dilute acid tank (150 cum capacity) and spent acid tanks for

circulation and pump off of acid across the refinery areas and

disposal into mud pond area. A wash water tank is also provided

for pumping and storage of water for washing of the piping and

equipment.



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2-21


Laboratory

It is envisaged that with the addition of certain equipment,

the existing central laboratory will be able to meet the analysis and

testing requirement of additional sample load arising due to

capacity expansion.

Requirement of raw materials and probable sources

The annual requirement of major raw materials for 5th

Stream shall be approximately as tabulated in Table 2B-3.

TABLE 2B-3 - ANNUAL REQUIREMENT OF MAJOR RAW MATERIALS

Raw material Total tpa

Bauxite 3,200,000 Coal 629,000 Caustic soda 100,000 Lime 48,330 Flocculant 420 Fuel oil 80,000

Bauxite: Bauxite is the primary raw material subsequently

reduced to produce aluminium metal in aluminium smelter.

Bauxite is to be sourced central and north block mining lease and

south block mining lease of Panchpatmali bauxite deposit identified

by NALCO to feed the 5th Stream of alumina refinery at Damanjodi

for production of one million tons per annum of alumina.

Caustic soda: Caustic soda is used for digestion of bauxite

to effect separation of alumina. Caustic soda in the form of lye will

be received by ship at Visakhapatnam Port, stored in a storage

tank of 5000 cu m storage capacity at port facilities and then

transported to refinery by rail. The caustic required in the new



5th



2-22


stream will be supplied by augmenting a new Caustic storage

system of adequate capacity. The caustic for the new stream will be

unloaded from the rail tankers and pumped to the augmented new

caustic tank of 4,000 cu m storage capacity.

Lime: Slaked Lime is used for re-causticisation of the caustic

digestion liquor and also for coating the filter media shall be

obtained from nearby source or from Madhya Pradesh and

Rajasthan. Storage provision is made for lime arriving by wagons in

bags. The lime bags will be emptied and transferred to the new silo

(600 cu m) and to the new slaker and classifier. The slaking is

done in water/process condensate at 7 TPH slaking capacity. The

slaked lime overflows into a tank from where it is pumped to the

ring header for process use. The grit from classifier is transferred

to tractor trailers and disposed off to red mud pond or land fill.

Coal: Coal is required for steam & power generation at the

co-generation plant of alumina refinery, is proposed to be obtained

from Talcher & IB Valley coalfields of Western Odisha. Coal will be

transported by rail upto the alumina refinery.

Heavy fuel oil (HFO): Fuel oil required for calciners will be

purchased from any one of the existing refineries at

Visakhapatnam and will be transported by rail to the refinery site.

The gross CV of the HFO will be about 10,000 Kcal/Kg. The Fuel oil

will be unloaded and stored in a new storage tank of 4000 KL

storage capacity.

Light diesel oil (LDO): Light diesel oil (LDO) will be used for

cold start-up of boiler, and heavy fuel oil (HFO) will be used for

load raising and flame stabilisation up to 40% of BMCR. The gross

CV of the HFO will be about 10,700 Kcal/Kg. The LDO will be



5th



2-23


transported from the nearest source available to the refinery

through road and unloaded in a storage tank of 25 KL storage

capacity near the power plant.

Synthetic flocculants: Flocculants are used in the refinery

in the red mud settlers and washers as settling aid.

Power requirement

The estimated overall power requirements of the alumina

refinery are given in Table 2B-4.

TABLE 2B-4 - ESTIMATED POWER REQUIREMENTS FOR 5TH STREAM ALUMINA REFINERY

Annual energy consumption, kWh x 106 .. 316 Average demand, MW .. 43 15-min. maximum demand, MW .. 41 1-min. peak demand, MW .. 44

Source of power: The power requirements of 5th Stream

alumina refinery plant expansion will be met from two sources,

namely;

i) Co-generation plant power generation system ii) Power supply from GRID through wheeling arrangement

by 220/132 kV MRSS through two (2) nos. of 31.5/40MVA,220/33/11kV transformers.

To meet any exigency of total power failure, provision will be

made for local emergency diesel generator (DG) sets of required

capacity to ensure human safety and safeguard critical equipment

of various plant units. Emergency lighting power supply for these

plant units will also be taken from the DG sets. For other areas not

provided with DG sets, provision will be made for taking emergency

lighting power supply in the substations, control rooms, etc from

the control battery banks, where provided, or from the portable

emergency lighting units.



5th



2-24


Diesel powered silent type environment friendly generator

sets with auto mains failure and control panel of adequate capacity

shall be provided to take care of the back up power requirements

and long power outages including provision for at least 20% future

loading. Diesel engine driven pumps shall be provided for fire

hydrant pumping station as well. SEP (Static Emergency Power)

supply (AC) along with VLRA battery back up shall be provided for

feeding emergency lights. The emergency lighting system should

have LED based luminaries.

Instrumentation, Automation & Communication system for the 5th Stream of the alumina refinery

Centralized control & monitoring system will monitor and

control all significant variables in accordance with the process

requirements, provide all operating requirements and necessary

sequencing, interlocking and safety functions including alarms for

abnormal conditions. The automation system will be designed as

an integrated system for drives control and instrumentation of the

plant unit.

The 5 th stream of the plant is divided into various areas for

which automation systems will be suitably interfaced over data

bus, and the process status and conditions of each area can be

monitored by the operator of the other area, but controlling

facilities will be provided to the respective operators of the areas.

Operation of one area from the other area will not be provided.

For each of the above areas independent distributed control

systems (DCS) with redundant controllers will be considered along

with relevant system hardware and other peripheral devices. The

DCS considered will be connected to the existing plant automation

network over dual bus system. Protocol for the data exchange will

be decided at the time of engineering. All plant data/status will be



5th



2-25


made available at the central main control room of the plant.

Consolidated storage facility for the process events/data will be

located at the main control room. The automation network will be

independent comprising of required numbers of network switches,

ethernet cables, optical fibre cables (single mode and multi mode

as required), optical link modules etc.

Signals for all electrical driven equipment will be hardwired

to the DCS from the HT/LT switchboard/MCC. The critical

feedback signals for the incoming feeder will also need to be

hooked up with the DCS.

HMI graphics will generally be in line with that followed in

the existing plant. Concept of spare shall be in line with the

existing philosophy, however shall be decided prior to

commencement of engineering.

The following communication systems are envisaged with

respect to the aluminum refinery:

- Plant telephone system - Plant wireless communication system - Plant loudspeaker intercommunication (LSIC) system

Fire detection and alarm system

The fire detection and alarm system will be intelligent,

microprocessor based, automatic addressable type and with self-

checking type network. The system shall be designed and installed

in accordance with NFPA, TAC & IS-2189 standards.

The system will comprise of fire alarm control panel (FACP)

with different of types of detectors & interfacing modules as per

requirement. Required numbers of hooters, strobe lights etc. will

be provided to warn people in case of emergency. The FDA system



5th



2-26


will have necessary interfacing with different types of fire

protection/fighting systems and interlocking with HVAC system

using control modules. Required nos. of manual call points will

also be provided for initiating alarms manually in case of fire or

any other emergency.

The complete FDA system will be UPS powered and will

include a telephone auto dialer to notify concerned authorities

about a possible emergency situation. The FDA system will also be

provided with networking facilities over Ethernet TCP/IP to allow

monitoring of fire alarm system status from a FDA monitoring PC.

Independent FDA systems with monitoring facilities will be

provided for the various plant units/areas of the alumina refinery -

5th stream, co-generation power plant and infrastructure facilities

of the mines area.

Water supply system for alumina refinery

Water is required for alumina refinery as process water,

wash water, cooling medium in the heat transfer equipment etc.

The break-up of make-up water for various consumers in alumina

refinery is given in Table 2B-5 on the next page. The schematic

water balance diagram is shown in Drawing 11253-B-02-0003.

Estimated make up water requirement for alumina refinery and co

generation power plant is about 572 cu m/hr.

Source of water for the refinery and power plant will be from

Kerandi River, Muran River and back water of upper Kolab

reservoir, District Koraput. Application for necessary sanction from

the Water Resource Development Authority, Govt. of Odisha has

been submitted for allocation of 3 MGD water from Kerandi River.



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2-27


TABLE 2B-5 - MAKE-UP WATER REQUIREMENT FOR REFINERY (cu m/hr)

System Raw water

consumption

Recovered

water from

process

Reclaimed water

from existing/

proposed plant

Aluminium Refinery

Process water

requirement

300 389 -

Drinking and sanitation purpose

20 - -

Dust suppression for bauxite handling

- 19* 61

Total 320 408 61

The proposed intake water system for refinery and co

generation power plant is designed for pumping 580 cu m/hr river

water from Kerandi River, to the plant. Raw water reservoir to store

about 10 days requirement of water is envisaged inside the plant

boundary. The capacity of reservoir will be of 1,40,000 cu m. The

proposed reservoir will be interconnected to the existing raw water

reservoir. Existing Raw water treatment plant has a capacity of

1,700 cu m/hr (9 MGD). The existing system is adequate to cater

the demand of water for various consumers in the proposed

refinery and co-generation plant. The filtered water is stored in the

proposed filtered water storage tank in closed construction where

from it is pumped to various facilities.

Water is required as cooling medium in the evaporator,

precipitator and inter-stage coolers, wash water for mud washing/

hydrate washing and chemical preparation etc in the alumina

refinery plant. Estimated shop-wise break-up of the filtered

water/recovered water from the process in various amenities is

given in the following Table 2B-6.



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2-28


TABLE 2B-6 - TOTAL WATER CONSUMPTION

IN REFINERY UNITS

Water recovered from process Condensate Water

consumption Zone

Live steam

Evapo- ration

Digestion

Recovered

Pond Water

Filtered water Total

Mud wash - - 45 104 33 182

Hyd. Wash 8 69 - - - 77

CT make-up - 121 42 - - 163

Lime slaking - - - - 48 48

Flocculant preparation

-

-

-

- 35 35

Purge/gland ater - - - - 85 85

Hosing/others - - - - 99 99

Total 8 190 87 104 300 689

The following facilities will be envisaged to meet the refinery

water requirements:

- Re-circulating cooling water system of capacity 4,600 cu m/hr for evaporators and 6,400 cu m/hr for precipitators and inter-stage coolers.

- Fire hydrant system with dedicated fire water reservoir

complete with piping and hydrant accessories, fire sprinkler system and fire detection & alarm system.

- Pipe work pertaining to process, water, steam,

condensate, effluent, & red mud disposal. Re-circulating cooling water system: Re-circulating

cooling water system comprises of two separate closed cooling

water recirculation circuit with cooling tower and cooling water

pumps to serve equipment cooling in the following areas:

- Evaporators - Precipitators - Inter-stage coolers



5th



2-29


Cooling tower: Cold water from the cooling tower basins

will be pumped by the recirculating cooling water pumps to the

evaporation unit, precipitators and inter-stage coolers unit in the

refinery.

The hot water return from the consumers will be returned to

the cooling tower for cooling and recirculation. The condensate

from the process will be added as make-up water to the cold water

sump to compensate the evaporation and drift losses.

Two submersible type dewatering pumps of 100 cu m/hr x

15 MWC each will be provided for dewatering the basin during

maintenance, one for each cooling tower.

Fire fighting water system: The filtered water from the

existing water treatment plant will be stored in a fire water sump

in closed construction which will be used for the fire fighting. The

fire fighting and protection system covers water hydrant system,

high/medium velocity spray system, fire detection alarm system,

fire extinguishers, etc.

Water system for co-generation power plant

The break-up of make-up water for various consumers in co-

generation plant is given in Table 2B-7. The schematic water

balance diagram is shown in Drawing 11253-B-02-0003.



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2-30


TABLE 2B-7 - MAKE-UP WATER REQUIREMENT FOR

POWER PLANT

(cu m/hr)

System Raw water

consumption

Recovered water from process

Reclaimed water from existing/ proposed

plant

Co-generation power plant make-up

Make-up water for cooling tower

137 - -

Demineralised water for Boiler make-up (Loss due to process steam supply and boiler blow down)

80 - 80

Ash handling system 35 13

(CT blow down)

-

Total 252 13 80

Recirculation cycle cooling water system is envisaged to cater

the cooling water requirements of dump condenser and cooling of

auxiliary equipment viz. lube oil coolers, generator air coolers,

gland steam condensers, boiler feed pumps, plant air compressors,

air-conditioning, ash handling system compressors, ash coolers

and sampling coolers etc.

De-mineralized (DM) water is used as make up water for the

boilers. The DM water requirement for the proposed boiler is about

80 cu m per hour considering the loss due to boiler blow down and

losses due to process steam supply in refinery plant. To meet the

above mentioned requirement, De-mineralization plant of capacity

2 x 75 cu m/hr has been proposed. The demineralised water will

be stored in the two (2) Nos. of DM water storage tank each of

capacity 900 cu m.



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2-31


The DM water from the DM water storage tanks will be

pumped by means of DM water transfer pumps to the boiler.

Necessary piping up to proposed boilers is envisaged. Proposed DM

water piping will be routed in the existing trestle and further

supports will be required upto proposed boiler.

Service water requirement will be met by using part of

cooling tower blow down water. A service water tank and service

water pumps will be provided for cleaning main plant area, fuel oil

tank farm etc.

Effluent treatment: The blow down from the cooling tower

will be utilised for green belt development, make-up for bottom ash

handling system, service water system and coal dust suppression

system in fuel storage area.

Run-off from coal handling area and coal piles generally

contains suspended solids. It is proposed to provide a peripheral

drain around coal yard and collected into a coal settling tank.

Decanted water from the settling tank shall be re-used for dust

suppression.

Service water effluent drains will be led to a sump which

will generally contain oily waste from the fuel oil area. Service

water will be passed through a tube settler for removal of

suspended solids. Treated service water will be sent to service

water tank for re-use.

Fire fighting water system

Fire protection system generally will be designed based on

tariff advisory committee (TAC)/loss prevention association (LPA)

guidelines and NFPA standards.



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2-32


For the purpose of system design, the co-generation power

plant is considered as ORDINARY HAZARD risk as per the

classification of TAC.

The various types of fire prevention/protection systems

considered for fighting the fires in different plant areas/buildings

are Fire hydrant system, Fire detection and spray system and Fire

detection and alarm system

Utility system

Fuel oil system: It is envisaged that HFO will be used as

fuel for calcination process in Alumina refinery and as start-up

fuel in boiler. The HFO oil storage system consists of unloading

pumps, HFO storage tanks, heating units, pumping units, pipe

work upto day oil tanks of the refinery and power plant.

Compressed air system: The total requirement of the

compressed air is 200 N cu m/min for 5th Stream. This

requirement is to be met by replacing the existing 3 x 55 N cu

m/min capacity reciprocating compressors with 3 x 120 N cu

m/min capacity water cooled centrifugal air compressors.

Two water cooled centrifugal air compressors each of

capacity 7,200 N cu m/hr are envisaged for meeting the

requirement of service air. One water cooled centrifugal air

compressor of capacity 7,200 N cu m/hr is envisaged for meeting

the requirement of instrument air.

Ventilation and air conditioning system: The ventilation

air quantity will be selected either to maintain room inside

temperature of 50C over outside ambient temperature or to have

fifteen air changes per hour in the ventilated areas, whichever is

higher. Cable cellars will be provided with suitable capacity of wall

mounted axial flow exhaust fans. The fresh air will be drawn by

means of wall mounted gravity louvers.



5th



2-33


Heat dissipated within the premises will be taken out by

properly designed air conditioning and air cooling systems to

achieve the specified room inside conditions. The areas where

controlled and specific rooms inside conditions are required to be

maintained, air conditioning and air cooling systems will be

provided at those areas. Floor mounted direct expansion (DX) type,

water cooled package AC unit based air conditioning system will be

provided for the centralized control rooms VFD, SAS room of all the

respective sub stations in order to maintain dry bulb temperature

of 23 ±2OC and relative humidity of 55 ±5%. Floor mounted direct

expansion [DX] type, water cooled package AC unit based air

cooling system will be provided for all the switchgear rooms/MCC

rooms and transformer rooms in order to maintain inside

condition of 32OC (DB) and RH not exceeding of 70 per cent. There

will be one standby unit for every two working units of 50 per cent

total capacity. Wall mounted, split air conditioning units will be

provided for permanently manned plant facilities such as

engineer’s room, conference rooms, staff rooms etc. in order to

maintain dry bulb temperature of 23 ±2OC. Split air conditioners

will be provided where stringent temperature and humidity control

is not required. These units are complete with evaporator,

condenser, fan, refrigerant piping, drain connection, electrics and

other accessories Refrigerant used in these units will be eco-

friendly.

Co-generation power plant

The process steam and power requirements of the existing

alumina refinery are met by the existing five boilers (4 x 200 TPH

and 1 x 250 TPH) and four turbo-generator each of 18.5 MW

capacity. The shortfall in power is drawn from the grid. As a part of

current expansion, one turbo-generator designated as TG-5 of 18.5

MW capacity is being installed.



5th



2-34


The power & process steam requirement of the proposed 5th

stream in alumina refinery will be shared by the above five TGs

and one proposed turbo-generator of 18.5 MW capacity which will

be designated as TG-6. The shortfall in power will be drawn from

power wheeled from NALCO’s power plant at Angul through the

grid.

The maximum MP and LP process steam requirement for the

proposed expansion is about 273 tph. Hence it is envisaged to

install one boiler of 300 tph capacity (including margin).

Based on the above, the following configuration of the power

plant has been envisaged:

- Boiler .. 1 x 300 TPH - Turbo-generator .. 1 x 18.5 MW

The boiler will be designed to fire 100 per cent Indian coal.

Coal is proposed to be obtained from Talcher or IB valley, Odisha

through linkage arrangement and also by e-auction procurement

Light diesel oil (LDO) will be used for cold start-up of boiler

and heavy fuel oil (HFO) will be used for load raising and flame

stabilisation up to 20 per cent of BMCR.

The capacity of the boiler considered for the proposed co

generation power plant will be about 300 tons/hr (including

margin). Considering that only coal will be used for the boiler, PC

fired boiler is recommended because of higher boiler efficiency,

lesser auxiliary power consumption and hence higher net send out

power compared to CFBC/AFBC Boiler.

It is envisaged to connect the superheater outlet of the

proposed boiler to the existing common main steam header. The

proposed TG-6 will also draw steam from this header. By adopting



5th



2-35


this system, any boiler can supply steam to any operating TG’s

which enables the uninterrupted operation of all the TG’s even

when one of the boiler is taken for maintenance or for annual

statutory shutdown. The pressure and temperature of the common

main steam header is 68 ksca, 485OC. Considering the pressure

drop in the proposed main steam pipelines, the steam parameters

at the proposed boiler superheater outlet is selected as 70 ksca,

485OC.

Basically there are two types of turbo-generators, viz. back

pressure turbine and condensing turbine. NALCO has been

operating four identical back pressure turbo-generator each of 18.5

MW capacity to cater to the requirements of the existing Alumina

refinery. Currently one more identical back pressure TG of 18.5

MW capacity is being installed. Considering the requirement of

constant power generation and supply of process steam from the

proposed turbo-generator (TG-6), it is suggested that the turbo-

generator will be of condensing cum extraction type of 18.5 MW

capacity. Since, abundant quantity of water is available near to the

site, water cooled condenser is considered.

Power plant performance indices: The performance indices

of the proposed co-generation power plant are shown in

Table 2B-8 on the next page.

Proposed power plant cycle: The existing common main

steam header pressure and temperature are maintained at 68 ksca

and 485 ±50C. The outlet of the proposed boiler will be connected

to the existing common main steam header. So, the steam

parameter at the proposed boiler MSSV outlet is selected to suit

the existing header pressure and temperature.



5th



2-36


TABLE 2B-8 - POWER PLANT PERFORMANCE INDICES

Plant capacity, MW .. 18.5 Annual rated power generation capability, .. 162 million units/annum Annual gross power generation, million .. 145.85 units/annum (@ 90% load factor) Annual auxiliary power consumption, .. 74.46 million units/annum Net power available for alumina refinery, .. 71.39 million units/annum Annual steam generation, million .. 2.36 tons/annum Annual process steam consumption, million tons/annum - Medium pressure process steam .. 0.66 - Low pressure process steam .. 1.40

The proposed one (1) condensing cum extraction turbine

(TG-6) of 18.5 MW capacity will draw steam from the existing

common main steam header.

The proposed TG will also have two controlled extractions

similar to the existing TG’s, one for supplying medium pressure

(MP) and the 2nd for supplying low pressure (LP) process steam.

The 1st controlled extraction will be connected to the existing

common MP process steam header after desuperheating and the 2nd

one to existing common LP process steam header after

desuperheating.

Process return condensate and DM make up water will be

added to one (1) No. make-up water deaerator. The operating

pressure/temperature of make-up water deaerator will be

4.5 ksca/147OC and the operating pressure/temperature of Feed

water deaerator shall be 6 ksca/160OC.



5th



2-37


During start up and normal operation, steam required for the

make-up water deaerators and feed water deaerators will be

supplied from auxiliary steam header. The MP/LP process steam

requirement for the 5th stream in alumina refinery will be shared

by existing five TGs (5th one presently under construction) and the

proposed TG-6.

Plant facilities: The proposed co-generation power plant

will have the following plant facilities:

- Boiler and auxiliaries - Steam turbine and auxiliaries - Coal handling system - Water system - Fire fighting system - Ash handling system - Power generation and distribution system - Instrumentation and control system - Cranes, hoists and elevators - Utility system

Ash pond: The existing ash pond area is about 70.10 hectare

at reduced level 940.00 Meter. The present ash pond dyke height is

930 m from MSL & safe operating level of 927.5 M. At 927.5 meter

level, the area of Ash pond is 56.9 hectares and volume is 9 Million

M3. The pond is filled up to 925.12 m. and the corresponding filled

volume is 8.47 Million M3. Balance volume available is 0.53 Million

M3. Considering 300000 MT of pond ash recovery from ash pond,

the expected life of the pond is up to Sept’ 2017. However, the ash

pond is under expansion to raise the dyke level up to 940 meter.

With crest height of 940 meters, safe operating level is 937.5 meter

and the corresponding volume is 15.30 Million M3 and the

estimated life of the pond is up to 2028 considering 600000 MT

ash generation & 10% utilization of dry fly ash.

RESOURCE OPTIMISATION/RECYCLING AND REUSE

� The process technology for 5th Stream is based on



5th



2-38


medium pressure digestion of bauxite from Panchpatmali mines.

� This enables over 98% digestion of gibbsite at reduced

residence time and higher liquor RP(Al2O3/Na2O ratio)/higher liquor productivity. Energy recovered during various process steps like increased liquor productivity, use of HRD/DCW for mud settling and washing, etc. in the process.

� Energy efficient electrical equipment have been envisaged

to minimise loss of electrical energy. � Co generation power plant will further optimise the energy

utilization. � Water will be recovered from various process steps and

will be recycled to the main process. � The final treated water from sewage treatment plant will

be utilized for gardening purpose. Necessary measures have been envisaged to minimise loss of various raw materials used for the process, as well as the final product.

� Efficient mud washing technology has been considered to

recover the valuable soda. � Fly ash to be generated from co generation power plant

will be stored temporarily for transporting outside the plant at regular intervals by trucks for commercial use like cement making and brick making.

NALCO has already engaged various agencies to explore

diverse uses of Red Mud (red brick for construction, glass ceramics

etc) which are in the R&D stage.

WASTE MANAGEMENT AND DISPOSAL

Details of waste utilisation (Ash, red mud and spent acid)

and disposal have been described suitably in Chapter-5.



5th



2-39


A Schematic representation of the feasibility drawing which

give information of EIA purpose is given in Fig. 2B-2.

Fig. 2B-2

Project Concept

Form-1, Pre-Feasibility Report

with proposed TOR to EAC

Scoping by EAC (Site visit by

Sub group of EAC, if ncessary)

TOR approved by

EAC (Industry)

EC-rejected by IAA on the

recommendation of EAC

(Industry)

Draft EIA report to

SPCB by project

proponent

Summary EIA and Form-

1- Display on the web

site by

Public consultation

process by SPCB

Proceeding of

public consultation

Display at Panchayet

,ZP, DM/DC/Dy. Com

& on the SPCB website

To proponent for

submission of final EIA

report/supplementary

report to draft EIA

Referred back to EAC

under communication to

the project proponent

Display on MoEF &CC

website & project

proponent website

Submission of half yearly

compliance report to

MoEF/RO-MoEF

Display of

compliance

report on

MoEF

&CCwebsie

te

Appraisal and

recommendation by

EAC (Industry)

Approval by

IAA,MoEF, GoI

Rejected Approved

Post EC monitoring



5th


3-1


3 - SITE ANALYSIS

The technical details of the proposed expansion of the

refinery capacity to 1.0 MTPA alumina is described in the

preceding chapter. This chapter mainly focuses on the location of

the proposed expansion.

Connectivity

NALCO Refinery is located at Damanjodi in Koraput District

of Odisha State, India. Damanjodi is well connected by roads. It is

around 10 km away from National Highway 26 (Vizag-Raipur) at

Semiliguda junction, Koraput, the district Head Quarter, is situated at

a distance of about 45 km via Damanjodi and Similiguda. The town

Damonjodi is located at about 180 km north-west of

Visakhapatnam, Andhra Prasdesh. Public transport by bus is

available to the nearest town of Koraput (District Headquarter), the

larger town of Jeypore, the township of Hindustan Aeronautics

Limited, Sunabeda and many other major towns and cities of the

state of Odisha. The nearest rail head is at Damanjodi, on the

Rayagada-Koraput broad guage rail section of East Coast Railways,

located about 6 km west of the plant. The nearest airport is four (4)

hours away in the city of Visakhapatnam, AP. The nearest airport

& port Visakhapatnam is at a distance of about 200 km from the

plant area.

Land form, land use and land ownership

The proposed expansion will occur within the existing plant

of NALCO in their own acquired land. The present land use is

basically built-up area for industrial purpose with greenbelt, water

reservoir and solid waste processing & storage area.



5th


3 – Site analysis (cont’d)

3-2


Topography

The entire study area is occupied by dense forest, highly

rugged mountains, interspersed with narrow intermountain valleys.

The average altitude of the hilly terrain ranges from 900 to 1,400 m

above msl. The refinery unit located in Damanjodi is in a valley

situated among the Panchpatmali Hills. The topography features of

refinery area can be seen from Fig 3B-1 below:

FIG. 3B-1 - TOPOGRAPHY OF ALUMINA REFINERY AREA



5th



3-3


Existing land use

The land use in 10 Km. radius is assessed based on the

satellite imagery (IRS P6, Liss4 mx) and the area statistics.

FIG. 3B-2 - EXISTING LAND USE

The study area mainly consists of scrub land with dense

scrub consisting of about 20% and rest being scattered scrub land.

Agricultural land consists of about 16% of the total landuse. Water

bodies take up about 2% of the total area. Industry and other

built-up area consist of only 3% of the total land area.

Drainage

There are neither perennial nor seasonal nala on the plateau

of study area. Seasonal nalas originate from the periphery of the

plateau and flows along the slopes towards the toe to meet the

perennial sources. A perennial nala exists on the western side and

flows towards Jhulaguda River which is dammed to have a storage

capacity of 1,500 cu m water. Numerous springs flowing from its



5th



3-4


western flank of Panchpatmali hills culminate into the major

drainage system comprising the ‘Deogiri Nadi’ and the ‘Muran

Nadi’. The Indravati & Kolab river and their tributaries constitute

the main drainage system of the study area. The rivers in general

exhibit dendritic drainage pattern and are effluent and perennial in

nature.

Soil

The subsoils are of good quality. It is characterised by stiff to

very stiff / hard, silty clay / clayey silt followed by weathered rock

layer and that layer continues upto the terminating depth of some

boreholes. The standing water table is around an average depth of

7.00m below ground level.

Climatic conditions

The area has a dry, humid and hot climate. The summers

have a good deal of rainfall, while the winters are normally dry. The

average annual temperature is 23.0 °C in Damanjodi. The rainfall

averages to about 1522 mm (IMD data of Koraput district).

Existing physical & social infrastructure

Administration: The area of Damanjodi constitutes of three

sectors. These sectors comprise of housing quarters laid out in

well-planned lanes and streets. Facilities include nationalized

banks with networked ATMs, large co-operative stores and market

complexes. The local administration supplies basic amenities like

that of water and sewerage. It is also authorize to build roads

within Census Town limits and impose taxes on properties coming

under its jurisdiction.

Water: The census town is characterized by a well-developed

water supply and treatment plant. Dug wells and hand

pumps/tube-wells are prevalently used in peripheral villages.



5th



3-5


Electricity: Individual occupants are drawing power from

SOUTHCO. Uninterrupted captive power supply is also provided by

NALCO.

Education: Saraswati Vidaya Mandir (Oriya Medium) and

Delhi Public School are two major schools in this township. In

addition, there is Shri Aurobindo Complete Study Circle (private

school) and the Malushanta Govt. High School. State Goverment

programme on Adult education are operational.

Medical facilities: Medical facilities are administered by

institutions namely NALCO Hospital in Damanjodi, Government

District Head Hospital and Government Hospital Koraput. Since

2009 Organizational activities have initiated Mobile Health Units

(MHUs) to bring health services (free medicine, diagnostics,

awareness) to the doorsteps of the needy in the remote villages in

Damanjodi. The Mobile Health Units through Information,

Education and Communication (IEC) activities are being operated

through Wockhardt Foundation at Damanjodi. Additionally

medical camps are conducted for patients from periphery villages

of Damanjodi and treated free of cost.

Recreation: Religion, Sports and Festivals are major modes of

recreation in the district. A State level Tribal Festival ‘PARAB’ is

organized by District Administration at Koraput. Organizational

activities in Damanjodi encourage rural sports/tournaments are

organized annually. There are several parks (Nehru Children Park,

Biju Patnaik Science Park), stadiums (Netaji Stadium, B.R. Ambedkar

Stadium), clubs, community centres, open air pandel areas, mandap

areas, temples and a mosque in Damanjodi. There are a number of

hotels in and around the town for visitors.

https://en.wikipedia.org/wiki/Delhi_Public_School_Society



5th


4-1


4 – PLANNING BRIEF

Population projection

Damanjodi, a Census Town is situated among the

Panchpatmali hills, in the district of Koraput, Odisha. As per the

2011 Census of India, the population of Damanjodi Census Town is

8,862 of which 4,633 are males while 4,229 are females.

Population of Children with age of 0-6 is 965 which constitute

10.89% of total population. The average literacy rate is 93.23%,

which is higher than state average of 72.87%. Male literacy is

around 96.38 % while female literacy rate is 89.78%. The Sex Ratio

is of 913 against state average of 979. The total number of

households is over 2,519 houses. Schedule Caste (SC) constitutes

14.77% while Schedule Tribe (ST) is 13.47% of total population in

Damanjodi (CT). Out of total population 2,974 people were engaged

in work or business activity. Of this 2,570 were males while 404

were females. Of total 2974 working population, 95.86 % were

engaged in Main Work while 4.14 % of total workers were engaged

in Marginal Work. The population is cosmopolitan in nature. Apart

from local population, significant population has migrated in from

varied regions outside the state.

The population of Damanjodi Census Town in the years

2001 and 2011 are 8475 & 8862 respectively. The decadal growth

is of 4.57 %. Thus the projected population of Damanjodi Census

Town for the year 2015 is around 9024.

Nearby existing industries

The major industries identified near the NALCO Alumina

complex at Damanjodi are Hindusthan Aeronautics Limited (HAL)-

Engine Divison at Sunabeda & Odisha Timber and Engineering

Works, also at Sunebeda.



5th


4 – Planning brief (cont’d)

4-2


Assessment of infrastructure demand (Social)

NALCO has a strong Social Accountability Policy. It works

towards continual improvement initiatives in all social issues and

sustenance of SA 8000 Standard.

A committee i.e. Rehabilitation & Peripheral Development

Advisory Committee (RPDAC) with RDC (SD), Berhampur as

Chairman; Honb’le MP(LS), Koraput; MLAs of Pottangi, Koraput,

Laxmipur; President Zilla Parishad, Koraput, District officials and

Management representatives of NALCO as members, have been

constituted by the Government and is in operation. Additionally

Social Impact Assessment was carried out for the year 2012-13 by the

Central University of Odisha at Koraput. Furthermore Needs

Assessment Study, Water & Energy Study are conducted in the

peripheral villages of Damanjodi.

The projects are envisioned post needs assessment of the

community. During the process of needs assessment, the opinion

of the community, local government and district authorities are

also taken into account. Regular assessment and examination of

the demands of the community are undertaken. Through these

processes, it is ensured that the demands of social infrastructure

and community development initiatives are successfully adopted.

The activities of the aforementioned committee and studies

emphasize to cater to varied interests and concerns of different cross

section of people of the Koraput District. In the beginning of each

financial year, plans on the various need-based activities that are to

be implemented within the District for that year are formulated. The

main peripheral development activities undertaken are in the area of

Social Infrastructure.



5th


4 – Planning brief (cont’d)

4-3


With regard to the continuing demands related to Social

Infrastructure in the Project Influence Area, some activities

undertaken by NALCO are mentioned below:

- Assisting establishments of remedial schools for drop-out children and distribution of educational kits in the peripheral villages

- Promotion of solar energy in rural households by distribution of solar lanterns in periphery villages of Damanjodi

- Organization of Medical Camps promoting awareness about prevention of diseases like malaria and providing gears like mosquito nets

- Propagation of safe drinking water by distributing water filters

- Construction and upkeep of Canteen, rest shelter / room, recreation Room within the Plant

Under the Peripheral Development schemes, emphasis has been

laid on social infrastructure programmes concentrating on areas of

education, health, water supply etc. The objective is to bring about in-

depth rural development and to encompass many more villages under

the development scheme.



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5 – PROPOSED INFRASTRUCTURE

The proposed expansion for 5th stream of alumina refinery for

production of smelter grade alumina from bauxite and coal based

co-generation power plant has been described in the earlier

chapters. This chapter accordingly gives an outline of the social

infrastructure, principle types of pollution and highlights the

proposed environmental pollution control measures in compliance

with the prevailing Acts and Rules and its amendments thereafter.

Industrial area

The total area plant area is about 248 Ha, within the

boundary of which the proposed expansion will take place. The

process units, water reservoir, solid waste processing & storage

area for the existing facilities as well as the proposed will be

housed within this area of 248 Ha.

Residential area

The existing township at Damanjodi has approximately

3,000 dwelling units (DU). The present township is self sufficient

in all respect with all services and amenities. The existing

township will have to accommodate about 410 families of different

categories after the expansion programme. However, several

numbers of dwelling units have to be constructed within the

township to accommodate the additional personnel.

Types of buildings planned for housing will range from G+2

to G+3 apartment type of housing blocks which are a cluster of

dwelling units with common staircase and lobby. The apartment

blocks will be divided into several categories of dwelling units of

different covered areas ranging from 100 sq m (1,075 sft), 120 sq m



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5 – Proposed infrastructure (cont’d)

5-2


(1,290 sft) and 150 sq m (1,615 sft) respectively. Number of

dwelling units per floor will always be two numbers only to avoid

congestion in the common lobbies. The circulation pattern of the

existing township will be followed here with segregation of

pedestrian and vehicular movements on the roads.

The basic needs of a township with respect to service

facilities pertaining to water supply, electricity and telecom

network and drainage and sewerage system will be provided with

efficient service facilities and easy maintenance provisions.

Proposed social infrastructure

The expansion project entails provision of the following in

the Project Influence Area:

- Increase of scale of services for improvement of Canteen facilities, drinking water supply, recreation etc.

- Increase of Residential Buildings/Dwelling Units - Maintenance of approach roads towards the Refinery &

peripheral road networks

- Increase of greenery development in and around the study area

- Better management of municipal waste and recycling of

waste water for its effective utilization after treatment

- Assessment of additional power requirement and supply

- Rain water harvesting and promotion of alternate sources of energy like solar power in the nearby villages

- Upgradation/ augmentation of the existing educational

facilities and establishment of new units

- Enhancement of vocational training facilities for the villagers

- Augmentation of medical camps for increasing awareness towards prevention of various diseases



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- Increase of potable water supply and improvement of

sanitation facilities

Air pollution control measures

Raw material handling section at Refinery: Dust

emissions arising from received bauxite from mines via overland

conveyors, crushing/grinding section, roads, stockpiles etc will be

controlled by water sprinkling and dust extraction (DE) system by

installing bag filter. The bauxite and coal will be conveyed in

covered conveyors. All transfer point of conveyor to conveyor,

conveyor to equipment and dry circuit of crushing and screening

will be provided with dry fogging (DF) system.

Calcination: Fuel oil will be used for drying the alumina in

calciner. Hot flue gas from the calciner passes counter currently to

the hydrate resulting in removal of moisture and bound water. The

dust laden air will be sucked through duct and then cleaned in an

ESP before letting into atmosphere through a stack of adequate

height.

Co-generation power plant: Power generation by firing

100% Indian steam coal will generate particulates, NOx and SO2.

The combustion gas after used to raise steam for generation of

electricity will be cleaned in ESP to separate out the particulates

and the clean flue gas will be vented into atmosphere through a

stack of appropriate height. NOx emission will be controlled by

using low NOx burners and controlling excess air during

combustion. Due to the low sulphur content of the coal to be

received from Talcher or IB valley, the emission of SOx will be

within the permissible limit.



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Water pollution control measures

The make up water required for cooling towers related to

evaporator, precipitator & inter-stage coolers and red mud washing

water will be met by utilizing recovered water from the process.

The clear water from red mud pond will be reclaimed and

send back to the process. The drained water from the process,

including that from spillage, leakage etc, will be taken to the

Alkaline pond and finally to the red mud pond.

The cleaning system will comprise of caustic cleaning & acid

cleaning. The spent liquor from caustic & acid cleaning (containing

H2SO4) will be sent to the red mud pond. The spent HNO3 from

acid cleaning will be neutralized by lime before sending to the red

mud pond.

Water is mainly required in cogeneration power plant as

boiler feed water and in cooling tower. The waste water generated

in Demineralization Plant (DM) plant will be neutralized in the

neutralization pit and routed to a reservoir where waste water from

other units like boiler blow down, cooling tower blow down etc will

get mixed. The treated waste water will be utilised for green belt

development, make-up for bottom ash handling system, service

water system and coal dust suppression system in fuel storage

area.

Run-off from coal handling area and coal piles generally

contains suspended solids. It is proposed to provide a peripheral

drain around coal yard and collected into a coal settling tank.

Decanted water from the settling tank will be re-used for dust

suppression. Service water effluent drains will be let to a sump

which generally contains oily waste from the fuel oil area. Service



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water will be passed through a tube settler for removal of

suspended solids. Treated service water will be sent to service

water tank for re-use.

To meet the drinking water and sanitation requirement of

plant personnel, filtered and chlorinated water from filtration unit

is pumped into overhead storage tank using drinking water fill up

pumps from filtered water storage tank. The water will be stored in

an overhead storage tank of 200 cum capacity, where from water

will be supplied to all consuming points.

Drinking and sanitation water

To meet the drinking, sanitation and service water

requirement for proposed and existing facilities in refinery and co-

gen power plant, treated water from the existing raw water

treatment is utilized.

The following facilities are envisaged for the drinking water

system:

i) Drinking water fill-up pumps: Two horizontal

centrifugal pumps of capacity 350 cu m/hr with suitable head (1 working +1 standby) are envisaged to transfer the water from the filter water reservoir in existing raw water treatment to the proposed drinking water tank which is located at the hill top.

ii) Drinking water storage tank: Overhead drinking water storage tank in RCC construction of capacity 1,000 cu m is envisaged to cater the proposed and existing drinking water requirement. The existing and proposed tanks are interconnected with isolation valve in order to utilize the existing storage tank. The storage capacity of existing and proposed tank together will be around 1,720 cu m (existing 720 cu m + proposed 1,000 cu m) with 8 hrs retention period. The proposed tank will be located near to the existing drinking water tank location at the hill top.



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iii) Pipe work: The piping from the proposed drinking water

storage tank will be distributed to the various consumers by gravity through pipelines.The specification for the distribution pipelines will be as follows:

- DN 100 & below : S1239 (Part-I) heavy, ERW,

galvanized - DN 125 to 150 : IS1239 (Part-I) heavy, ERW. - Above 150 : Factory made as per IS 3589 Service water and the water required for safety eye wash

shall be drawn from the drinking water header. Isolation valve is considered in the inlet line of each consumer.

Sewage treatment plant

It is proposed to provide a sewage treatment plant

of 200 cu m/day capacity to treat the sewage generated within the

plant. The sewage generated from the plant premises will be

collected through sewage network system to the sump of sewage

treatment plant. RCC/HDPE pipes will be used for sewage disposal

pipes in sewage network.

The raw sewage will be pumped from collection sump

provided in the sewage treatment plant to bar screen chamber

followed by fine screen chamber. The equalisation tank which

receives the sewage by gravity from bar screen chamber will be

provided with coarse bubble diffuser system to ensure proper

mixing thereby avoiding settlement and to provide pre-aeration to

avoid septicity. Then, it will be pumped into aeration tank provided

with fine bubble diffuser arrangement for the reduction of BOD and

COD level of sewage to desired level as per pollution control norms.

The supernatant liquid from the aeration tank will be passed

into clarifier for the removal of suspended solids. A portion of

underflow biomass from the clarifier will be re-circulated using



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5-7


sludge recirculation pumps to the aeration tank to maintain MLSS

level in the aeration tank, while other portion of the sludge will be

distributed equally to sludge dying bed.

The overflow from the clarifier will be filtered in pressure

sand filter followed by activated carbon filter to remove the

suspended solids, traces of odour and organics etc. The final

treated water will be utilised for gardening purpose.

Solid waste management and disposal

Fly ash: The Fly ash collected from ESP hoppers & stack

hopper will be transported to covered fly ash silos. In the silos, fly

ash will be stored temporarily for transporting outside the plant at

regular intervals by trucks for commercial use like cement making

and brick making. Emergency provision will be kept for wet

disposal of ash in the existing ash pond earmarked for bottom ash

disposal.

Bottom ash: The bottom ash from the boiler will be collected

in bottom ash hopper and further transported to bottom ash silos.

Then, it will be mixed with water to form the high solid

concentration slurry. This slurry will be transported to the ash

pond through High Concentration Slurry disposal (HCSD) pump. A

peripheral greenbelt is in place around the embankment of the ash

pond.

Management & Disposal of Red mud: Red mud is a by-

product of alumina refinery process. It contains iron, silicon,

calcium, titanium and sodium in form of oxides depending on the

ore used. Apart from the high alkalinity from liquors the residue is

chemically stable, non- toxic and non hazardous in nature as per

Hazardous Waste (Management, Handling & transboundary

movement) Rules, 2008 and any amendments thereafter.



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5-8


The red mud will be disposed in the existing specially

constructed storage site (Red Mud Pond). The Total Volume of

existing Red Mud Pond is 52.04 Million cum at EL-954.50M and

the total Volume filled up as on 31.03.2015 is 27.164 Million cu m.

Hence, the total space available is 24.886 Million cum.

NALCO has engaged various agencies like Moscow State

Institute of Steel & Alloys and Romelt Sail India Limited (RSIL),

IMMT-BBSR to explore diverse uses of Red Mud. These R&D

projects have identified the following uses of Red Mud:

- Manufacture of Red Brick for Construction purposes

- Manufacture of glass ceramic tile having excellent glossy finish, good mechanical strength, abrasion resistance & cost effective and are comparable to granite, marble and vitrified tiles available in the market.

Spent acid management

The concentrated acid will be brought by road tankers and

stored in a tank bounded within a dyked area. Spent acid obtained

from cleaning operation will be stored in spent acid storage tank

and will be finally disposed into red mud pond area, thus

neutralizing the acidic effect.

Work zone pollution control measures

The work zone pollution will be mostly fugitive dust, heat,

vibration and noise. The fugitive dust emission in all transfer

points will be controlled by DE/DS system as described earlier.

At the refinery, noise arising from the mechanical

machineries like such as turbo generator, pumps, fans, compressor

etc steam turbine cannot be eliminated fully but overall aim should

be to restrict the ambient as well as work zone noise within the

specified norms. The mitigation measures to be adopted for such

noise-prone equipment will be to install that noisy equipment in a

separate housing so as to enhance the noise attenuation.



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Corrosion control

As the digestion process will require use of caustic soda, it is

imperative to install adequate corrosion protection measures as an

integral part of environment protection plan. Materials of

construction for caustic soda handling tank and pipe lines,

equipment etc will be selected on the basis of their corrosion

resistant properties. Proper care will be taken to prevent the

spillage of caustic soda in order to avoid contamination of the soil,

surface or ground water.

Plant greenbelt and landscaping

Greenbelt will be developed in around 33 per cent of the plant

area for peripheral greenbelt, gardening and tree plantations at the

site. This will arrest wind borne dust and also improve the

environment quality as well as the plant appearance from aesthetic

point of view.



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6 – REHABILITATION AND RESETTLEMENT PLAN

The expansion project does not require displacement of any

human settlement. Hence there are no issues relating to

rehabilitation and resettlement.



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7 - IMPLEMENTATION SCHEDULE AND COST ESTIMATE

This chapter deals with the estimated capital cost &

implementation schedule of the Project.

IMPLEMENTATION SCHEDULE

The preliminary overall implementation schedule for the

project, indicating the time required to complete the major

activities of engineering, procurement of equipment, construction,

erection, test, trial run and commissioning of the various plant

facilities along with external and internal facilities has been

developed in the form of a bar chart presented in Appendix 7B-1

The schedule has been developed on the basis of the estimated

quantum of work, expected delivery and installation periods of

plant and equipment and the need to commission the plant

facilities in the shortest possible time. The schedule envisages a

total project implementation period of 48 months from date of ‘Go-

ahead’.

It has been assumed that prior to commencement of the

project, following activities will be completed by NALCO:

i) Finalising arrangements for obtaining the requisite

finance as per the projections and matching with the implementation schedule

ii) Obtaining relevant statutory clearances

Commissioning of various major facilities has been

scheduled in a progressive manner in order to ensure integrated

operation of the plant. Commissioning schedule for Alumina

refinery will be 48 months from the ‘Go-ahead’.



5th


7 – Implementation schedule and cost estimate (cont’d)

7-2


COST ESTIMATE

The capital cost has been estimated based on the quotations

from various vendors for equipments/materials, data taken from

the past similar projects at 2013 -14 price level etc. The figures are

tentative & may vary during actual implementation to some extent.

A more pragmatic estimation can be worked out only after detailed

engineering.

The capital cost estimates of the refinery is presented under

the following heads:

- Plant cost

- Pre-Project Activities

- Working capital margin (WCM)

- Interest during construction (IDC)

Plant cost

The plant cost comprises cost of land and site development,

civil work & structural steelwork, plant & equipment and erection.

Cost towards technology supply by process licensor, township,

design, engineering, consultancy services and administration

during construction (DE & ADC) and provision for contingency are

also included.

Land and land development

The item wise break-up of the same is shown below:

Land & site development cost Refinery Rs. crore

Soil investigation and Survey 0.26

Site Levelling 76.46

Road, Drainage & sewerage 19.33

Track work 14.17

Boundary Wall 4.37

Wall dismantling 0.41

Over bridge 4.72 Watch tower and gate house, Paver Block and Barbed Wire Fencing 0.26 Horticulture and earthen Raw Water Reservoir for Mines 0.21

Total 120.2



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Civil and structural steelwork

The total cost of civil & structural steelwork will be about

747.9 Crore for the refinery. This is again sub dived into cost for

Alumina Plant, Vizag Port and Power Plant as shown below:

Item Alumina Plant

Vizag Port Power Plant

Total Refinery

Rs. crore Rs. Crore Rs. crore

Civil work 370.8 25.0 32.2 428.0

Structural work 296.4 - 23.5 319.9 Total 667.2 25.0 55.7 747.9

Plant and equipment

The cost estimates for major plant and equipment are based

on the indicative prices received for similar equipment from

reputed suppliers. The cost estimates for the balance equipment

are based on information available with Consulting Engineers.

Charges for erection of equipment including foreign supervision of

erection have also been considered at normative basis.

Technology supply by Process licensor

This includes Technology supply price by Process licensor

and is included in the estimate of the plant cost for the refinery.

Township

This includes cost of developing separate townships (dwelling

units) for the refinery.

Design, engineering, consultancy services and administration during construction (DE & ADC)

A provision of about Rs 125.6 crore has been kept at 4 per

cent on supply price of equipment together with civil and

structural to take care of expenses towards design, engineering,

consultancy services and administration during construction for

the refinery.



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Contingency

A contingency provision has been kept to cover expenses

towards any unforeseen item. This provision does not cover any

exchange rate variation and escalation during the construction

period.

Total plant cost including the above items is estimated at

about Rs 3,648.6 crore for refinery and is summarized in

Table 7B-1.

TABLE 7B-1 - PLANT COST ESTIMATE

Description Refinery

Rs. crore

Land & Site development 120.2

Civil and structural steelwork 747.9 Plant and equipment including erection 2,286.2 Technology supply price 123.4 Township 71.6 Design, engineering, consultancy and ADC

125.6

Contingency 173.8

Total plant cost 3,648.6

Pre-project activities

The pre-project activities include cost for construction power

and water and have been considered for refinery. Preliminary

expenses on a lump-sum basis have been considered. Preoperative

expenses include raw material inventory for Bauxite, Hydrate,

Caustic, Fuel Oil, Lime and Flocculants. The start-up expenses

have been calculated at 15 days of manufacturing cost.

Margin money for working capital

Twenty-five per cent of estimated working capital for 1st year

of operation has been considered as margin money for working

capital for the refinery.



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Interest during construction

Interest during construction is calculated based on the

following assumptions:

- Debt-equity ratio of 2:1

- Phasing of expenditure as per implementation schedule

- Equitable drawl of fund

Total capital cost

The capital cost thus worked out on the above basis for all

the facilities are presented in Table 7B-2.

TABLE 7B-2 - CAPITAL COST ESTIMATE

Description Refinery Rs. crore Plant cost 3,648.6 Pre-project activities 177.5 Margin money for working capital 23.5 Interest during construction 507.6 Total 4,357.2

Financial indicators

The salient financial indicators of the 5th stream alumina

refinery expansion project as presented in Table 7B-3 are

calculated based on sourcing of bauxite from proposed captive

bauxite mine (Central block, Sector-II) at Panchpatmali.

TABLE 7B–3 – FINANCIAL INDICATORS

Internal rate of return (post tax), % 11.4

Pay–back period, years 7.7

Break–even capacity, % 71.1

Cash break–even capacity, % 43.7



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Based on the technical and financial review carried out in

this report, it is concluded that the project is techno−−−−economically

viable and recommended for speedy implementation.



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8 – ANALYSIS OF PROPOSAL

Financial and social benefits

Expected financial and social benefits from the proposed

project are outlined below:

- The proposed project will generate direct and indirect employment opportunities.

- Employment will be also generated at construction phase

of the project. - This kind of project investment will establish small and

medium scale engineering ancillary in local area. - The proposed project will generate revenue to state by way

of royalty, taxes and duties. - Indirect employment opportunities for local people will be

developed in contractual work. There will be wide variety of contractual work like transportation, sanitation, supply of goods and services to the project and other community members.

- A major part of the labour force will be mainly from the

local villages. Hence, the project will enhance the income level of the local villagers and will improve socio-economic status of the nearby villages.

- Project will help to sustain the development of the area

including further development of physical infrastructure facilities. The following physical infrastructure facilities will be improved on account of the proposed project.

� Road and transport facilities � Housing facilities � Water supply and sanitation � Power

- Market and business establishment facilities will increase.

- The peripheral development activities of the organization extend to cover the entire District of Koraput.



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8 – Analysis of proposal (cont’d)

8-2


- In the sphere of health, NALCO has set up one company-

run specialty hospital at Damanjodi. The organisation in association with the Wockhardt Foundation, is also operating four (4) Mobile Health Units (MHUs) that cover 142 villages of the Koraput District. These units work throughout the year, offering primary health services and free medicines and creating awareness through Information, Education and Communication (IEC) activities, to the local population. Furthermore in addition to MHU’s, NALCO organises regular health camps in the Project Influence Area (PIA) and engage in distribution of supplementary items to tribal households, like that of insecticide-treated mosquito nets to curb malaria and water filters to address water-borne diseases like diarrhoea, cholera and jaundice.

- In the area of education, NALCO Foundation has

collaborated with reputed residential institutions for sponsoring residential education to numeorus children of the tribal households of Koraput. The NALCO Foundation’s funding covers all the costs related to study, lodging and boarding of the students across the residential schools namely Koraput Development Foundation Model School and Bikash Vidyalaya. The funding for residential education for the enrolled students is planned till the completion of their schooling. Additionally NALCO has set up Oriya medium and English medium schools in Koraput which lay emphasis on quality education in the study area at subsidized rates.

- With regard to Social Infrastructure, NALCO has

undertaken promotion of alternate sources of energy and pilot projects in the area of sanitation. The organisation has distributed solar lamps to tribal households and has installed 30 solar street lights in the villages of Putraghati and Karidiguda of Koraput District, where the villagers did not have access to electricity.

- In addition to government initiatives of Ministry of Human

Resource Development (MHRD) and non governmental initiatives of organisation like that of ‘Gram Vikas’ in Koraput, NALCO too has initiated a pilot project, in the area of sanitation. In association with Sulabh International Social Service Organisation (SISSO), NALCO has installed three (3) toilets in two (2) schools of Koraput.



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8 – Analysis of proposal (cont’d)

8-3


- NALCO aims at continued social commitment towards the

local community. The organization carries out its social benefit plan for: • Promotion of education • Eradication of poverty by activities on livelihood and

income generation • Promotion of Health and Sanitation • Protection of environment, water and energy resources

and sustainability • Building community infrastructure • Providing relief measures for redressal of calamities,

disasters • Enhancing vocational skills • Reaching out to socially marginalized sections with

special emphasis on differently-abled persons in society

• Promoting cultural activities of local community - The proposed expansion project with increased

investment will augment the above mentioned plan and will promote:

• Improvement in the socio-economic status of the

region by generation of direct and indirect employment opportunities (NALCO has a strong policy against child labour).

• Development of ancillary small and medium industries,

trade and commercial establishments and local entrepreneurship

- NALCO, to facilitate their social responsibility, operates

on a defined agenda and undertakes a participatory and inclusive approach. They consistently exceed the stipulated guidelines and requirement of Department of Public Enterprises (DPE) with regard to the funds spent on the CSR activities.

Final recommendations

Based on the state of the art technology to be adopted for the

expansion project, techno-economic viability, financial and social

benefits as presented above, it may be inferred that it is worth

considering speedy implementation of the proposed project.

A P P E N D I X

APPENDIX 2B-1

Schematic Representation of the Refinery

DIBR_6323

Text Box

APPENDIX-7B-1

PRE-FEASIBILITY REPORT -...

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