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INDIAN BUREAU OF MINES MINERALS DEVELOPMEMT AND REGULATION DIVISION MCDR inspection REPORT Hyderabad regional office Mine file No : AP/ANP/LST-36/HYD (i) Name of the Inspecting : Officer and ID No. (ii) Designation : (iii) Accompaning mine : Official with Designation M001 ( ) S K MUDULI Junior Mining Geologist Mine code : 38APR02052 1. (iv) Date of Inspection : 22/08/2017 (v) Prev.inspection date : 09/03/2017 PART-I : GENERAL INFORMATION (a) Mine Name : GUDIPADU(454.59 HA) (b) Registration NO. : (c) Category : A Fully Mechanised (d) Type of Working : Opencast (e) Postal address State : ANDHRA PRADESH District : ANTAPUR Village : Taluka : Post office : Pin Code : FAX No. : 04023356573 E-mail : sureshreddys@sagarcements.i Phone : 04023351571 (f) Police Station : (g) First opening date : 23/12/2015 (h) Weekly day of rest : SUN 2. Address for : correspondance 3. (a) Lease Number : (b) Lease area : (c) Period of lease : (d) Date of Expiry : IBM/18063/2014 M/s BMM Cement Gidipadu village & Post, Yadkli Mandal, Distt- Ananthapur, Andhra Pradesh 4. Mineral worked : LIMESTONE Main

2 5. Name and Address of the Lessee : Owner : Agent : Mining Engineer Name : Qualification : Appointment/ : Termination date BMM CEMENT LTD 101, 1ST FLOOR, PRIDE ELITE no. 10, museum road, BANGALORE. ANTAPUR ANDHRA PRADESH Phone: FAX : S.ANDA REDDY H.NO.8-2-472/B/2,ROAD NO.1 BANJARA HILLS HYDERABAD HYDERABAD TELANGA Phone: 04023351571 FAX : 04023356573 V.C.Honnur Saheb c/o M/s BMM Cements Limited Gudipadu village, Yadiki Mandal, ANTAPUR ANDHRA PRADESH Phone: FAX : SIRAM SURESH REDDY,Full Time BE MINING ENGINEERING 16/12/2015 6. Date of approval of Mining : Plan/Scheme of Mining

3 PART - II : OBSERVATION/COMMENTS OF INSPECTING OFFICERS Exploration : Sl.No. Item Proposals Actual work Remarks 1a Backlog of previous year 2014-15(161 core bore holes each of 30m depth at less than 200 m X 200 m) 58 nos core bore hole 1313 m as on 31.03.2017. Exploration work under progress. 1b Exploration over lease area for geological axis 1 or 2 430.11 Ha 154.32 Ha-G1 level,302.27 Ha-G4 1c Exploration Agencies and Expenditure in lakh rupees during the year Rupees 2 crore Rupees 72.05 Lakhs 1d Balance area to be explored to bring Geological axis in 1 or 2 430.11Ha 154.94Ha Exploration work on progress 1e Balance reserve as on 01/04/20 13.30 Million Tonnes 12.15 Million Tonnes 1f officers on geology, exploration etc Development : 2a Location of development w.r.t.lease area N 49100- N 49700,E 53300 - E 53900 within the proposed area 2b Separate benches in topsoil, overburden and minerals (Rule 15) Top soil being worked separately 2c Stripping ratio or ore to OB ratio No OB. There is no OB within the Mining Lease. 2d Quantity of topsoil generation in m3 2016-17 - 91881.60 m3 2016-17 - 57829.16 m3 15570.25 m3 utilised for plantation purpose 2e Quantity of overburden generation in m3......

4 2f officers on development of pit w.r.t. type of deposit etc Mineral reject was generated from from the mineralised zone which was not assessed during plan preparation. Exploitation: 3a 3b 3c 3d 3e 3f 3g 3h 3i Number of pit proposed for production Quantity of ROM mineral production proposed Recovery of sailable/usable mineral from ROM production Quantity of mineral reject generation Grade of mineral rejects generation and threshold value declared. Quantity of sub grade mineral generation. Grade of sub grade mineral generation Manual / Mechanised method adopted for segregating from ROM Any analysis or beneficiation study proposed and carried out for sub grade mineral and rejects. One 1000987 tonnes 100% Not acessed during preparation of mining plan Not acessed during preparation of mining plan Not acessed during preparation of mining plan Not acessed during preparation of mining plan No One 956360 tonnes 87.52 % ROM usable remaining 12.48 % stacked as mineral reject. 119360 tonnes CaO%-42%,SiO2%- 16 to 17.5% 119360 tonnes Mineral rejects CaO%-42%,SiO2%- 16 to 17.5% Mechanised by developing a sub-benches where ever practical Less production due to less market demand.

5 3j Provision of drilling and blasting in mineral benches Drilling and blasting proposed Drilling and blasting undertaken 3k Provision of mining machineries in mineral benches Excavator and tipper proposed Excavator and tipper used. 3l Whether height of benches in overburden and mineral suitable for method of mining proposed in MP/SOM Yes 3m Total area covered under excavation/pits 11.56 Ha till 2016-17 5.10 Ha 3n Ore to OB ratio for the pit/mine during the year. 3o Total area put in use under different heads at the end of year Approx are under pit 5.1 hectare dump 0.6 hectare Are under crusher= 3.791 hectare 3p Production of ROM mineral during the last five year period as applicable 2015-16 - 1009023 Tonnes, 2016-17 - 1000987 Tonnes Limestone- 2015-16 - 155000 tonnes,2016-17 - 956360 tonnes, Mineral rejects/sub grade- 2015-16 - 31944 (As per earlier MCDR report ),2016-17 - 119360 tonnes 3q officers on method of mining etc. As on date of inspection,the lessee has already completed drilling as proposed.a total of 164 no.s CBH with a total meterage of 2968 meters was completed.sampling and analysis of borehole cores is pending.reserves and resources estimation based on the current exploration is pending. The lessee was advised to complete the sampling and analysis and estimate the reserves/resources. Solid Waste Management - Dumping:

6 4a Separate dumping of topsoil, OB and mineral rejects (Rule 32,33) Separate dumping done. Solid Waste Management - Backfilling: 5a Status of part or full extraction of mineral from mined out area before starting backfilling. No area is mature for backfilling. 5b Area under backfilling of mined out area 5c Concurrent use of topsoil for restoration or of mineral out area (Rule 32) NIL 5d Total area fully reclaimed and rehabilitated NIL NIL 5e officers on backfilling and reclamation etc. No area is matured for backfilling. Progressive Mine Clousre Plan: 6a Whether Annual report on PMCP submitted on time and correctly. Rule 23 E(2). Prposed Submitted on 06.07.2017 and received in this office on 10.07.2017 6b Area available for (ha). Not Proposed 6c afforestation done (ha). 4942 no saplings in 2.28 Ha

7 6d No. of saplings planted during the year 2016-17= 4813 saplings (2.08 ha.) 6e Cumulative no.of plants 4942 nos 6f Any other method of Not proposed 6g Cost incurred on watch and care during the year... 6h Compliance on by backfilling (i) Voids available for backfilling ( Lx B x D 6i Compliance on by backfilling (ii) Voids filled by waste / tailings 6j Compliance on by backfilling (iii)afforestati on on backfilled area 6k Compliance on by backfilling (iv) Rehabilitation by making water reservoir 6l Compliance on by backfilling (v)any other specific means. 6m Compliance of of waste land within lease (i)afforestation.however 2942 nos saplings planted in 2.28 Ha

8 6n Compliance of of waste land within lease (ii)area (ha) 2942 nos sapling planted in 2.28 Ha area 6o Compliance of of waste land within lease (iii)method of...... 6p Compliance of environmental monitoring (core zone and buffer zone) Proposed Undertaken 6q officers on PMCP compliance and progressive closure operations etc.... Mineral Conservation: 7a 7b 7c 7d ROM Mineral dispatch or grade-wise 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. sorting not proposed. entire minerlised zone was proposed to be used. Not prposed top layer of 1 to 2m has been worked separately and stacked. separate bench has been developed for removeing the top 1-2m limestone. CaO%-42, SiO2%- 16 to 17.5%

9 7e officer on Mineral conservation and beneficiation issues... Environment: 8a Separate removal and utilization of topsoil (Rule 32) Topsoil being removed separately. 8b Concurrent use or storage of topsoil Top soil is stacked separately.top soil is being used for plantation purpose. 8c Separate dumps for overburden, waste rock, rejects and fines (Rule 33) No prposal Separate dump is there 8d Use of overburden, waste rock, rejects and fines dumps for restoring the land to its original use 8e Phased restoration, of lands affected by mining operations (Pits, dumps etc) Not Proposed 8f Baseline information on existence of plantation and additional plantation done (Rule 41) 8g Survival rate 85%

10 8h Water sprinkling on roads to control airborne dust Proposed Being undertaken 8i officer on aesthetic beauty in and around mines area The mining activity has just started, the aesthetic beauty is not disturbed much due to mining activity. Compliance of Rule 45: 9a Status of submission of Monthly and Annual returns - Monthly and Annual returns being submitted regularly 9b Scrutiny of Annual return for information on Mining Engineer, Geologist and Manager Mining Engineer and Geologist appointed as per rules 9c Scrutiny of Annual return on land use pattern for area under pits, reclaimed area, dumps etc. Area under mine working is 4.110 HA Area under dumping is 0.66 ha Topsoil dump is 0.4 ha 9d Scrutiny of Annual return on afforestation 2942 plants in 2.28 ha 9e Scrutiny of Annual return on mineral reject generation (Grade and quantity) 119736 tonnes 9k Scrutiny of Annual return on mining machineries As reported

11 Details of violations observed during current inspection and compliance position of violation pointed out Violation observed Show couse position Rule NO. Issued on Compliance on Rule NO. Issued on Compliance on Date : (S K MUDULI) Indian Bureau of Mines