INDIAN BUREAU OF MINES MINERALS DEVELOPMEMT AND REGULATION DIVISION MCDR INSPECTION REPORT. Bangalore regional office

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1. Mine file No : (i) Name of the Inspecting : Officer and ID No. INDIAN BUREAU OF MINES MINERALS DEVELOPMEMT AND REGULATION DIVISION KNT/CTD/MN/112/BNG (ii) Designation : (iii) Accompaning mine : Official with Designation (a) Mine Name : HULLIKATTE Bangalore regional office S011 ( ) K.SRINIVAS (iv) Date of Inspection : 30/05/2015 (v) Prev.inspection date : 25/02/2013 (b) Registration NO. : (g) First opening date : 01/10/1985 Assistant Mining Geologis PARTI : GENERAL INFORMATION (c) Category : A Other than Fully Mech. (d) Type of Working : Opencast (e) Postal address State : KARNATAKA District : DAWANGERE Village : HULLIKATTE Taluka : DAVANGERE Post office : DAVANGERE Pin Code : FAX No. : 08194227300 Email : hulikatte@mel.co.in Phone : 08192214804, 9880321052 (f) Police Station : 2. Address for : correspondance MCDR INSPECTION REPORT ANAJI (h) Weekly day of rest : SUN Sri Vinod Kumar, Manager, and others IBM/4247/2011 No 49, Khanij Bhavan, 3rd Floor, East Wing, Race Course Rd, BANGALORE, KARNATAKA560001. Mine code : 40KAR07041 3. (a) Lease Number : KAR0380 (b) Lease area : 32.31 (c) Period of lease : 20 (d) Date of Expiry : 30/09/2005 4. Mineral worked : MANGANESE ORE Main

2 5. Name and Address of the Lessee : Owner : Agent : Mining Engineer Name : Qualification : Appointment/ : Termination date Manager Name : Qualification : Appointment/ : Termination date MINERAL ENTERPRISES (P)LTD # 300, 1/B, 16TH CROSS, SADASHIVNAGAR, BANGALORE KARNATAKA Phone: 0803612569, 3613182 FAX : 0803612737 MINERAL ENTERPRISES (P)LTD # 300, 1/B, 16TH CROSS, SADASHIVNAGAR, BANGALORE KARNATAKA Phone: 0803612589, 36 FAX : 0803612737 N.B.SANJAY CHITRADURGA KARNATAKA Phone: FAX : VINOD KUMAR N.R,Full Time B.E(MINING),1st Class Mine's Manager Cer 30/04/2015 Vinod Kumar N.R B.E (Mining) 1st Class Mine Manager's Ce 30/04/2015 6. Date of approval of Mining : Existing rule 11 MCDR1988 Plan/Scheme of Mining Mining Scheme rule 12 MCDR1988 Mining Scheme rule 12 MCDR1988 Modif.approved Mining Scheme Renewal under rule 24 MCR1960 FMCP under 23C(1) 04/04/1991 26/07/1996 21/10/2002 28/04/2004 09/11/2005 20/01/2011

3 Exploration : PART II : OBSERVATION/COMMENTS OF INSPECTING OFFICERS Sl.No. Item Proposals Actual work Remarks 1a Backlog of previous year No proposals for the previous year i.e.,201314. 1b Exploration over lease area for geological axis 1 or 2 23 core boreholes The mine was not in operation since July,2011 for want of lease renewal. 1c Exploration Agencies and Expenditure in lakh rupees during the year The lessee and expenditure not specified 1d Balance area to be explored to bring Geological axis in 1 or 2 Not specified Not specified 1e Balance reserve as on 01/04/20 The balance reserves as on 01/04/2015 is 81312 tonnes. 1f officers on geology, exploration etc Mine was not in operations since July,2011 for want of lease renewal. Development : 2a Location of development w.r.t.lease area South Central part of the lease area No mining operations carried out as the mine is not working since July, 2011. 2b Separate benches in topsoil, overburden and minerals (Rule 15) 2c Stripping ratio or ore to OB ratio 1:0.41 2d Quantity of topsoil generation in m3

4 2e Quantity of overburden generation in m3 13840 2f officers on development of pit w.r.t. type of deposit etc No mining operations carried out as the mine is not working since July, 2011. Exploitation: 3a Number of pit proposed for production One One Proposed in one pit only. 3b Quantity of ROM mineral production proposed 83020 tonnes Not working since July 2011. 3c Recovery of sailable/usable mineral from ROM production 80% 3d Quantity of mineral reject generation 3e Grade of mineral rejects generation and threshold value declared. 3f Quantity of sub grade mineral generation. 6441 tonnes 3g Grade of sub grade mineral generation <20% Mn 3h Manual / Mechanised method adopted for segregating from ROM Mechanised Mechanised 3i Any analysis or beneficiation study proposed and carried out for sub grade mineral and rejects.

5 3j 3k 3l 3m 3n 3o 3p 3q Provision of drilling and blasting in mineral benches Provision of mining machineries in mineral benches Whether height of benches in overburden and mineral suitable for method of mining proposed in MP/SOM Total area covered under excavation/pits Ore to OB ratio for the pit/mine during the year. Total area put in use under different heads at the end of year Production of ROM mineral during the last five year period as applicable officers on method of mining etc. Not specified 1:0.41 Not specified 201011: 62372 t 201112: 66800t 201213: 18788t 201314: 201415: 66416t Not specified Not specified 201011: 62372 t 2011 12: 11038 t 201213: 201314: 201415: There is no change in the method of mining. Solid Waste Management Dumping: 4a 4b Separate dumping of topsoil, OB and mineral rejects (Rule 32,33) Location of topsoil, OB and mineral reject dumps Southeastern side of the lease area. Southeastern side of the lease area.

6 4c Number of dumps within lease area and outside of lease area All dumps within the lease area. All dumps within the lease area. 4d Location of dumps w.r.t. ultimate pit limit (Rule 16) Outside the ultimate pit limit Outside the ultimate pit limit 4e Number of active and alive dumps. one one 4f Number of dead dumps. one one 4g Number of dumps established. one one 4h Whether Retaining wall or garland drain all along dumps are there. yes yes 4i Length of Retaining wall or garland drain all along dumps 100 m 80m The construction of retaining wall is under progress. 4j Number of settling ponds 4k Specific comments of inspecting officer on waste dump management No specific comments on waste dump management. Solid Waste Management Backfilling: 5a Status of part or full extraction of mineral from mined out area before starting backfilling. No proposals 5b Area under backfilling of mined out area No proposal 5c Concurrent use of topsoil for restoration or of mineral out area (Rule 32)

7 5d Total area fully reclaimed and rehabilitated 5e officers on backfilling and reclamation etc. No proposals are given for backfilling and reclamation, the mineral is not yet exhausted. Progressive Mine Clousre Plan: 6a Whether Annual report on PMCP submitted on time and correctly. Rule 23 E(2). Submitted 6b Area available for (ha). 6c afforestation done (ha). 4.0ha 4.0ha 6d No. of saplings planted during the year 1000 saplings 2000 saplings 6e Cumulative no.of plants not specified 53720 saplings 6f Any other method of 6g Cost incurred on watch and care during the year not specified 6h Compliance on reclamation and by backfilling (i) Voids available for backfilling ( Lx B x D No proposal 6i Compliance on reclamation and by backfilling (ii) Voids filled by waste / tailings

8 6j Compliance on reclamation and by backfilling (iii)afforestati on on backfilled area 6k Compliance on reclamation and by backfilling (iv) Rehabilitation by making water reservoir No proposal 6l Compliance on reclamation and by backfilling (v)any other specific means. No proposal 6m Compliance of of waste land within lease (i)afforestation 6n Compliance of of waste land within lease (ii)area (ha) 6o Compliance of of waste land within lease (iii)method of 6p Compliance of environmental monitoring (core zone and buffer zone) 6q officers on PMCP compliance and progressive closure operations etc. No significant proposals as the mine is not in operation since July,2011. Mineral Conservation:

9 7a 7b 7c 7d 7e ROM Mineral dispatch or gradewise sorting within lease area Method of gradewise mineral sorting i.e. manual or mechanical. Different grade of mineral sorted out at mines. Any beneficiation process at mines. officer on Mineral conservation and beneficiation issues Grade wise sorting Mechanical 4mm +4mm to8mm, +8mm to 40mm. Grade wise sorting Mechanical 4mm +4mm to8mm, +8mm to 40mm. Washing There is no change in conservation and beneficiation issues. Environment: 8a Separate removal and utilization of topsoil (Rule 32) No proposal Already generated top soil utilised for plantation. 8b Concurrent use or storage of topsoil No proposal. 8c Separate dumps for overburden, waste rock, rejects and fines (Rule 33) yes yes 8d Use of overburden, waste rock, rejects and fines dumps for restoring the land to its original use

10 8e 8f 8g 8h 8i Phased restoration, reclamation and of lands affected by mining operations (Pits, dumps etc) Baseline information on existence of plantation and additional plantation done (Rule 41) Survival rate Water sprinkling on roads to control airborne dust officer on aesthetic beauty in and around mines area No proposal No specific proposal 70% 70% There is no change in aesthetic beauty in and around mine area. Compliance of Rule 45: 9a Status of submission of Monthly and Annual returns 9b Annual return for information on Mining Engineer, Geologist and Manager 9c land use pattern for area under pits, reclaimed area, dumps etc. 9d afforestation

11 9e mineral reject generation (Grade and quantity) 9f ROM stock and/or graded ore 9g sale value, Ex. Mine price and production cost 9h fixed assets 9k mining machineries

12 Details of violations observed during current inspection and compliance position of violation pointed out Violation observed Rule 24 08/06/2015 02/07/2015 Show couse position Rule NO. Issued on Compliance on Rule NO. Issued on Compliance on Date : (K.SRINIVAS) Indian Bureau of Mines