Draft REPORT ON MINING/QUARRYING OPERATIONS IN KERALA WITH SPECIAL FOCUS ON SAFETY, ENVIRONMENTAL ISSUES, M.

SAND PRODUCTION AND BOOSTING OF REVENUE TO GOVERNMENT Prepared by The Technical Committee Constituted by Government of Kerala

The Technical Committee under the Chairmanship of Principal Secretary to Government, Industries Department.

1 - 2009 December

REPORT ON MINING/QUARRYING OPERATIONS IN KERALA WITH SPECIAL FOCUS ON SAFETY, ENVIRONMENTAL ISSUES, M. SAND PRODUCTION AND BOOSTING OF REVENUE TO GOVERNMENT

Prepared by The Technical Committee Constituted by Government of Kerala

Preface
Though the accidents due to mining and quarrying operations in the State of Kerala is comparatively less, paramount importance need to be given for the safety of the workers involved in mining and quarrying operations as well as the public residing surrounding the mine or quarry. Thousands of Granite Building Stone and Laterite Building Stone quarries are under operation in the State. Many workers from within the State as well as migrated from other States have been working in this sector. More or less uniform distribution of density of residential buildings, high level of agriculture land utility practices, well connected roads and other transport networks in the state makes the land availability for the quarry operation limited. At the same time demand for building materials have increased manifold during the last few couple of years. To satisfy the increasing demand, many small scale quarries are being opened in different parts of the state. Since it is not a large scale industry in the state of Kerala and more over due to the above mentioned reasons most of the quarries are not well equipped with required safety measures. Mining and quarrying industry is one of the supporting sectors of construction industry and is closely linked with a community of transportation sector. A larger section of the society is directly or indirectly involved in this web of industrial sectors. The above factors hinder the implementation of sudden drastic corrective measures in mining and quarrying sector. Accidents to the quarry workers, to the public and domestic animals are reported from different parts of the State. A serious one among them was the accident occurred in a granite building stone quarry at Kuzhoor near Mannoor in Kunnathunadu taluk of Ernakulam District on 22.12.2007, which took away the life of five quarry workers including two women. Followed by this incident Government have constituted a Technical Committee to study the mining/quarrying operations of Kerala with special focus on safety and environmental issues, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the revenue collection to the Government exchequer.

Being a one time concentrated activity, mining of minerals has its own environmental and ecological fallout. With a length of 580Km coastal belt, which covers 16.4% of the total geographical area of the State, 28% geographical coverage of forest area, 44 rivers, 27 estuaries and seven Lagoons or Kayals 4 to 6 months period of monsoon rainfall, more or less uniform density of population all over the State and extensive wetland area makes the State ecologically fragile and sensitive to the quarry and mining operations. The adverse consequences manifest in diverse ways like deforestation, soil erosion, air and water pollution, landscape and bio-habitat disturbance and changes in quality of life of local people. Hence mining and mineral processing cannot be done with economic consideration alone. It is gratifying to note that because of the growing public concern and legislative and institutional initiatives, it is increasingly being realised that mining and mineral processing should be done with least disturbance to the natural ecosystem.

The need of the hour is to evolve plans and management strategies for quarry and mine safety and integrating environmental concern and protection with mining activities. During the study, the Technical Committee has dealt with the topics with an order of preference as safety, environment, mineral production and revenue to the exchequer. The Committee has heard the complaints and grievances of quarry and mine operators of the State. Due recommendations for ensuring safety and environmental protection, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the revenue collection to the Government exchequer have been included in the report. I do hope that this report prepared by the Technical Committee will provide a basis for evolving policy guidelines for quarry and mine safety and environmental protection, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the revenue collection to the Government exchequer.

T. Balakrishnan, IAS. Chairman and Principal Secretary to Government, Industries Department.

Aknowledgement

The Committee wishes to thank Sri.K.L.Krishnamoorthy, former Director of Mining and Geology for convening the first two meetings of the Committee and sharing his valuable ideas for formulating this report. The Committee also acknowledges the contributions of Kerala Quarry and Metal Crusher Owners Associations during its study. The contributions of all Senior Geologists and Geologist of the Department of Mining and Geology are also duly acknowledged.

Dr.A.N.Manoharan Assistant Geologist, Directorate of Mining and Geology also deserve a special gratitude for rendering their efforts in the preparation of this report.

No. 1.0 2.0 3.0 3.1 3.2 3.3 3.3.1 3.3.2

Content Title Introduction Technical Committee Meeting Views of the Technical Committee on the topics suggested by Government. Safety aspects of mining/quarrying operation in the state. Accidents in Quarries. Nature of quarry accidents Accidents to the workers involved in quarrying operations. Accidents to the public, animals etc.. due to falling into the active/abandoned mine/quarry pit. Provisions to be incorporated while granting Quarrying Licences in future. Environmental issues Ensuring the availability Manufactured Sand. Boosting of Revenue collection to the Exchequer. Major Minerals Minor Minerals Granite Dimension Stone Representation of the Registered Metal Crusher Unit Owners Association to the Technical Committee. Recommendation

Page. No. 7 8 9 9 10 10 11 11

3.4 4.0 5.0 6.0 6.1 6.2 6.2.1 7.0

11 12 14 15 16 18 19 21

8.0

21-24

Appendix GO.(Ms) No. 12/08/ID dt. 22-01-2008 I The list of participants of the Technical II Committee meeting Representation received from the Metal III Crusher Unit Owners Association Circular No. PCB/TAC/WP/236/2006 dt. 13IV 06-2007 by Kerala State Pollution Control Board Notification number G.O. (P) No.1/2008/ID V dated 01-01-2008 Revised consolidated royalty for the metal crusher units for registration Notification number G.O. (P) No.2/2008/ID VI dated 02-01-2008 New Consolidated Royalty Payment system (CRP system) for granite and laterite building stone 6

REPORT ON MINING/QUARRYING OPERATIONS IN KERALA WITH SPECIAL FOCUS ON SAFETY ENVIRONMENTAL ISSUES, M. SAND PRODUCTION AND BOOSTING OF REVENUE TO GOVERNMENT.

1.0. Introduction An accident occurred in a granite building stone quarry at Kuzhoor near Mannoor in Kunnathunadu taluk of Ernakulam District on 22.12.2007, which took away the life of five quarry workers including two women. Followed by this incident and after the inspection of the affected quarry by a team of Geologists headed by Director of Mining and Geology suggested Government to constitute a Technical Committee to study the mining/quarrying operations of Kerala with special focus on safety and environmental issues, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the revenue collection to the Government exchequer. As per the direction of the Honourable Minister for Industries, the Technical Committee was constituted by the Government of Kerala as per GO(Ms) No. 12/08/ID dt. 22-01-2008 under the chairmanship of Principal Secretary to Government, Industries Department. The above G.O is marked as Appendix I The structure of the Technical Committee is as follows: 1. The Principal Secretary to Government, Industries Department - Chairman 2. The Director of Mine Safety, Ministry of Labour, Govt. of India, Chennai or his nominee. 3. The Regional Controller of Mines, Indian Bureau of Mines, Ministry of Mines, Govt. of India, Bangalore or his nominee. - Member

- Member

4. The Joint Chief Controller of explosives, Ministry of Commerce - Member and Industry, Govt,. of India, Chennai or his nominee. 5. The Director of Geological Survey of India, Govt. of India Kerala circle, Thiruvananthapuram. 6. The Labour Commissioner, Govt. of Kerala 7. The chairman, State Pollution Control Board, - Member

- Member - Member

Thiruvananthapuram or his nominee. 8. The Director, CESS, Thiruvananthapuram 9. The Director of Mining and Geology, Thiruvananthapuram - Member - Convener

2.0. Technical Committee Meetings The first meeting of the Technical Committee was convened by the Chairman, the Principal Secretary to Government, Industries Department on 19.03.2008. The Chairman of the Committee discussed with the members of the Technical Committee and came to the conclusion that the period of lease can be fixed as five years and minimum area of mining/quarrying operations should be one hectare to prevent the accident and to ensure the safety of the people. The list of participants of the meeting is appended as

Appendix II. Representation received from the Metal Crusher Unit Owners Association was circulated among the members of Technical Committee for offering their remarks and is appended as Appendix III. The Kerala State Pollution Control Boards circular (No. PCB/PAC/WP/236/2006 dt. 13-06-2007) was also distributed to the members of the Committee. The circular is appended as Appendix IV.

The second meeting of the Technical Committee with representatives of All Kerala Quarry Association, Registered Metal and Crusher Owners Association was held on 28.07.2008 at Government Secretariat, Thiruvananthapuram. The meeting was chaired by the Chairman, Technical Committee. Minutes of the meeting is appended as Appendix V. During the meeting copies of the draft report prepared by the Technical Committee, which was submitted to Government earlier had been circulated among the members. In that meeting Sri.B.P.Ahuja, Director, Mines Safety had suggested the quarry owners might send 10 to 15 persons for training under a Mines Manager in the State. Director of Mining and Geology had informed that Public Sector undertakings (PSUs) like Kerala Minerals and Metals Ltd., Malabar Cements Ltd., Kerala Clays and Ceramics Product Ltd. were having qualified Mines Managers and necessary arrangements would be made to send persons engaged in quarry blasting operation for training in the above mentioned PSUs. DMG informed that Government may be requested to render sanction for this

purpose. M/s.Malabar Cements Ltd. has been instructed to provide training to the persons engaged in quarry operation by Government through the letter No.28930/A3/08/ID dated 22.10.2008.

The third meeting of the Technical Committee was convened on 23.05.2009 at South Conference Hall, Government Secretariat, Thiruvananthapuram. The meeting was chaired by the Chairman of the Committee. In the meeting the draft report has been reviewed in the light of the problems pointed out in the representation of the Registered Metal Crusher Units (RMCU) Owners Association and the recommendations put forward by the Committee. Elaborate discussion held on the third point of the representation of RMCU Owners Association ie. Government of India have prescribed 500m as danger zone for blasting. Chairman was of the opinion that there is no compromise on the safety measures regarding the blasting operation in quarries of the State. DMG and other Committee members informed that as far as the Kerala scenario is concerned keeping 500m as danger zone is very difficult. The existing density of residential and other building is so high that if we keep 500m radius buffer zone for buildings and other structures there wont be any place left out for quarry operation. After a detailed discussion, by considering the density of residential and other buildings and structures in the State 100m radial distance could be kept as danger zone for blasting. But later the office of the Chief Controller of Explosives and Directorate General of Mines Safety, Ministry of Labour informed that under Regulation 164 of Metaliferous Mines Regulations of MMR,1961, an area of ground falling within a radius of 300mtrs from the place of firing shall be treated as danger zone.

3.0. Views of the Technical Committee on the topics suggested by Government. 3.1 Safety aspects of mining/quarrying operation in the State. Kerala is endowed with limited mineral resources and hence the number of mines (major minerals) are limited and they are mainly china clay, mineral sand, bauxite/aluminous laterite, limestone, limeshell and quartz/silica sand etc.. These minerals are won by open cast mining to an average depth level of up to 50mts,

especially in china clay and limestone mines. Silica Sand/Quartz, mineral sand are usually extracted by scooping and making small pits/trenches and the mining doesn't involve any threat to life and environment. No major accidents have been reported from these mining operations in the State. Among the minor mineral quarries, granite building stones and laterites are the most abundant in the state and quarrying activities are mostly carried out in the mid land area of the state. The quarrying activities for the above minerals are being carried out far before the formation of the State of Kerala for construction of railways, bridges, roads, sea wall and other public and private buildings and even from Palaeolithic age. The increase in population and due to the big boom in construction industry in recent years, there is a high demand of minerals especially for granite/laterite building stone, construction grade sand and brick/tile clay. But the spatial extension of mineral deposits are being reduced day by day due to fast urbanisation and formation of new roads. 3.2 Accidents in Quarries. In Kerala accidents in mining sector is very less when compared to the other parts of the Country. Two or three cases are being reported annually. The intensity of quarry/mining accidents when compared with road accidents, natural calamities, epidemics and deaths associated with riots and violence are negligible but still safety of mine/quarry needs to be given prime importance.

3.3.

Nature of quarry accidents

Quarry accidents can be grouped into two main categories. 1. Accidents to the workers involved in quarrying operations. 2. Accidents to the public, animals etc.. due to falling into the active or abandoned mine/quarry pits.

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3.3.1. Accidents to the workers involved in quarrying operations. Accidents to the quarry workers are more when compared to the accidents to the public or animals. following aspects: 1. the blasting operations using explosive materials. 2. sliding or sub- level caving of the rock body or overburden. 3. Sliding of unscientifically dumped overburden, soil, rigolith etc.. 4. loading and unloading of quarried materials. 5. operation of machineries/tools used at the time of quarrying. 3.3.2. Accidents to the public, animals etc. due to falling into the Active or abandoned mine/quarry pits. During the monsoon season most of the abandoned and active quarry/mine pits are filled with rain water and if the outer boundary of the quarry or mine pit is not demarcated or properly fenced, the accidents due to falling into pit may occur, resulting loss of life. During the time of blasting operations, rock pieces/splinter may fly to nearby areas and life of human or animals in surrounding area of the quarry may be lost. To some extent , crops of nearby areas may also be affected. The common accidents noticed in quarries are associated with

Unscientific exploitation, large scale extraction and lack of proper quarry structure maintenance, unscientific blasting operation, quarrying in smaller area, and grant of quarrying permits for a shorter periods etc.. are the major aspects that affect the safety of quarries. 3.4. Provisions to be incorporated while granting Quarrying Licences in future. 1. The minimum period of quarrying licence granted should be of five years. 2. Minimum area of grant should be one hectare considering the safety aspects of quarry.

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3. For systematic quarrying, a quarrying plan prepared by a RQP may be insisted. 4. Amendments in Panchayath Act to the effect that for the construction of new building, permission should be granted after obtaining consent of the landowner and quarry operator in stamp paper worth Rs.50 each to the effect that they have no objection in granting licence for the construction of house with in a radius of 300m of the quarry. 5. The mineral bearing area should be notified to avoid other activities on the particular land. 6. Fencing of the quarry should be strictly enforced. 7. Insurance coverage to the labourers should be made compulsory. 8. Wearing uniform cloths for the labourers shall be made compulsory. 9. On completion of the quarrying work, the quarry should be properly secured from accidents, or reclaimed or used for some other developmental purposes. A bank guarantee as suggested in the Mineral Concession and Development Rules 1988 should be made mandatory. 10. Health insurance should be introduced to the workers. 11. Blast set by labourers precariously by hanging on ropes from the wall of the quarry should be banned and proper safety measures should be adopted. 12. Siren should be sounded before the blasts, even though mandatory, but has to be ensured that every quarry has this facility. 13. A sign of red flag should shown before the blast. 14. The quarry/mine should be brought under the preview of the Industrial Protection Act 15. Adequate health protection measures like dust masks, gloves, ear flux, helmet and gum boots etc. for workers should be made compulsory.

4.

Environmental issues The mining activity without the destruction of environment and ecological

imbalance are not practicable. To sustain economy of the country extraction of natural wealth and technology to exploit the mineral resources with modern tools are inevitable and there is legislation to control the degradation of environment. The opening of mining

12

industry provides job opportunity for many people including the local tribes which in turn develop the area and the State economy also flourishes. Gain in economy and loss in ecological balance are to be weighed with positive attitude for betterment of the State.

Rivers, Forests, Minerals and such other resources constitute a nations natural wealth. These resources are not to be frittered away and exhausted by any one generation. Every generation followed by succeeding generation need to develop and conserve the natural resources of the nation in the best possible way. It is in the interest of humankind the Parliament of Indian Union has declared that it is expedient in the public interest; the union should take under the Control of regulation and development of minerals and enacted the Mines and Minerals (Development & Regulation) Act 1957.

Section 15(1) Mines and Minerals (Development and Regulation) Act

has

empowered the State Government to frame rules in respect of minor minerals for regulating the grant of quarrying leases or other mineral concessions and Section23c has delegated the power to make rules for preventing illegal mining, transportation and storage of minerals. Kerala Minor Mineral concession Rules 1967 has been framed by the State Government as per Section 15(1) of Mines and Minerals (Development and Regulation) Act 1957 for regulation of minor minerals like granite building stone, limeshell, sea shel, laterite, Tile/Brick clay and ordinary sand used for construction purposes etc. The state is physiographically divided into Coastal (low) land, Midland and High land and major part of the geographical area has come under midland and high land. Most of the mineral bearing area including ordinary earth is associated with the above said two land forms. As per the specifications of the Ministry of Environment and Forest (MoEF) EIA studies are to be done in the case of Major Mineral for areas above 5 hectares and Environmental clearance should be received from MoEF for commencing mining operations. Mining operation and issues related to the environment and ecology need to be handled very delicately. More awareness programmes need to be conducted to the public and the miners with regard to the issues of environmental aspect and the

13

sustainable mining activity in the state. Stipulations of the Pollution Control Board should be scrupulously followed along with other Act and Rules.

5.

Ensuring the availability Manufactured Sand.

Manufactured Sand Manufactured sand has caught the attention of the construction industry for its quality and the minimum damage it causes to nature. As the construction industry is in a constant state of expansion in these days, a few alternatives for river sand have come up for the industry. One among them is the manufactured sand or M-Sand, and is found to be suitable one to replace river sand. Once the M-Sand becomes more popular in the construction industry, the demand for river sand and illegal sand-mining would considerably come down.

There was uncertainty about using M-Sand for construction. In fact, more options are being probed so that the rivers would have a chance to be saved from illegal sandmining. It shall take some time to convince the builders on the quality of the said sand. Once the structural engineers approved the application of M-Sand in construction, no one will have any second thought to use it. Availability of sand near the construction site is the most important requirement of the industry which otherwise escalate costs. While M-Sand holds the promise of replacing river sand in the construction industry, there are issues of air pollution associated with it and availability of granite resource for the production of granite metal. The quarry dust generated as a waste product can be disposed of as landfill. The quality of sand is of great concern to the industry. If the crusher units do not give good quality sand, more water will be required to get the right concrete mix which will in turn affect the strength of the concrete. While M-Sand is considered likely to be replaced for the river sand, the major hurdle seems to be the high capital investment in the project besides getting licence from Government. At present, the M-Sand meets only about 10 per cent of the demand. M/s. POABSONS, a Thiruvalla-based company, which have a quarry at Angamaly and Thiruvananthapuram, produce M-Sand.

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Associated with the existing crusher units M-Sand production unit can be promoted by utilising the waste granite metals of the crusher units, and waste generated from quarries for M Sand productions. 6.0. Boosting of Revenue collection to the Exchequer. In legal parlance, royalty means payment made to the owner of certain types of rights by those who are permitted by the owners to exercise such rights. Levy of royalty on minerals is a universal concept. The rational for royalty is that it is a payment to mineral right holder from mineral producer in consideration for the extraction of valuable and non-renewable natural resources. Royalty forms a vital part of a physical regime and important means of revenue for the States. There are various types of royalty such as unit based royalty, ad valorem based royalty and royalty as a share of profit.

Section 15 (1) of the Mines and Mineral (Development and Regulation) Act 1957 empowers the State Government to make rules for regulating the grant of quarrying lease in respect of Minor minerals and purposes connected therewith and it includes the power to make rules for fixing rates of royalty in respect of minor minerals. The power conferred in the above Act under Sub-section (3) of Section 9 is controlled by the proviso thereto. The relevant part of the proviso is found in clause (b) of the said proviso which prohibits the enhancement of the rate of royalty in respect of any mineral more than once during the period of three years. The State Government is not empowered to realise the royalty at the rate higher than those chargeable under Section 9 (1) of the second schedule for Major minerals. On a plain construction of proviso to Section 9 (3) the enhancement in the rate of royalty can only be made once during any period of three years since the rate of royalty has been enhanced once, the State Government cannot alter the rates or abolish the grades at different kinds of grades before the expiry of three years period. During the period, there can be no enhancement or abolition of the grades and prescription of the rates of superior royalty.

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6.1.

Major Minerals A comparison of royalty revision for major minerals by Government of India as

per the notification No.G.S.R 677 (E) date 14-10-2004 and Notification G.S.R. 574(E) 13.08.2009 are given as follows: Mineral Royalty rate as per notification No.G.S.R 677 (E) date 14-10-2004. 20% of sale price on ad valorem basis for those despatched for use other than Alumina or Aluminium metal extraction and for export. Revised royalty rate as per notification No.G.S.R 574 (E) date 13-08-2009. (a) Zero point five zero percent of London Metal Exchange Aluminium metal price chargeable on the contained aluminium metal in ore produced for those despatched for use in alumina and aluminium metal extraction. (b) Twenty five percent of sale price on ad valorem basis for those despatched for use other than alumina and aluminium metal extraction and for export.

Bauxite and Laterite

Brown Ilmenite, Leucoxene, 2% of sale price on Two percent of sale price on Ilmenite, Rutile, and Zircon ad valorem basis ad valorem basis. China Clay/Kaolin (including ball clay, White shale and White Clay) (a) Crude 23 Rupees per tonne (b) Processed (including washed) 85 Rupees per tonne

Eight percent of sale price on ad valorem basis. Ten percent of sale price on ad valorem basis. Twelve percent of sale price on ad valorem basis. Iron ore: Lumps fine and concentrates all grades. Ten percent of sale price on ad valorem basis.

Graphite with <40% Fixed 50 Rupees per tonne Carbon Iron ore <62% Fe content 11 Rupees per tonne

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Concentrates prepared by 4 Rupees per tonne beneficiation and ore concentration of low grade ore containing 40% Fe or less Lime stone 55 rupees per tonne (a) L.D. Grade (<1.5% Silica content) (b) Other 45 Rupees per tonne Lime Shell Monazite Quartz/Silica Sand/Moulding Quartzite sand and 45 Rupees per tonne 125 Rupees per tonne 20 Rupees per tonne

Seventy two rupees per tonne.

Sixty three rupees per tonne. Sixty three rupees per tonne. 125 rupees per tonne. Quartz: Fifteen percent of sale price on ad valorem basis. Silica Sand, Moulding sand and Quartzite : Eight percent of sale price on ad valorem basis.

The revenue generated from the major minerals as royalty for the last six years are as follows: Revenue Collected Rs. 4,46,51,539 6,46,97,896 7,33,48,437 6,54,24,712 7,04,20,961 7,59,26,174

Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

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Revenue Collection from Major Minerals for the last six years
90000000 Revenue Collection in Rs. 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 2008-09

6.2 Minor Minerals As per section 15 (1A) (g) of MM(D&R) Act 1957the State Government is empowered for fixing and collection of rent, royalty, fees, dead rent, fine, fees, or other charges and the time within which and the manner in which these shall be payable. As such, the State Government has issued notification fixing royalty for various minor mineral with effect from 01-04-1997 vide No G.O(P) 63/97/ID dt. 10-4-97. The quarry operators are alleging that the royalty is too high and but the rate is fixed a decade ago. The State Government is empowered to make revision of royalty only every three years as per the MM(D&R) Act 1957.

As per G.O. (P) No.1/2008/ID dated 01-01-2008 Government have revised the consolidated royalty for the registered metal crusher units for registration with effect from first day of April 2007. A copy is enclosed as Appendix- VI.

Since the existing rules are inconvenience to the public and implementing authority and in order to deal the Minor mineral concessions in a simple easy and transparent manner, the State Government has amended Kerala Minor Mineral Concession Rules 1967 as per notification No. G.O.(P) 2/2008/ID dated 02.01.2008 by introducing Consolidated Royalty Payment System (CRP System)for quarrying of granite/laterite building stone. A copy is enclosed as Appendix VII.

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The revenue generated from the minor minerals as royalty for the last six year are as follows: Revenue Collected Rs. 139480327 137730315 162674348 199258251 240312854 279005659

Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Revenue collection from Minor Minerals for the last six years
300000000 Revenue collection in Rs. 250000000 200000000 150000000 100000000 50000000 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 2008-09

6.2.1. Granite Dimension Stone Granite Dimension Stone industry in Kerala faces a set back due to the higher royalty rate prevailing in Kerala compared to other neighbouring States. In the State there are only 11 operating quarries of Granite Dimension Stone out of 100 and odd leases granted since 1992 onwards. The operating quarries are predominantly green and white varieties and have good market but at present there are no takers because of higher production cost and low sale value. Chinese are dumping granite finished products in the world market at cheaper rate and they supply slabs and tiles into global markets for a comparatively cheaper price because the rough blocks are produced/procured at a very

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lower cost in China. This has affected the Indian export market also. Kerala has different varieties of marketable granites but the production cost in the state is very high compared to the other states. The quarries are operated with the expensive diamond wire saw cuttings methods which safe guard the environment. The royalty levied is higher in Kerala, which has been fixed in the year 1997.

A comparative statement of royalty prevailing in Kerala, Karnataka, Tamil Nadu and Andhra Pradesh are furnished below: Kerala Tamil Nadu Karnataka Rs. 4000/- per CBM for all varieties. Rs. 1500/- for coloured granite per CBM Rs. 2500/- for Black Granite per CBM Rs. 600/- per CBM for grey an white granite Rs. 2000/- per CBM for Black granite from Mysore District. Rsw. 1500/- per CBM for Brick granite from all other Districts Rs. 1000/- per CBM for other varieties of dykes Rs. 2000/- per CBM for pink and red granites Rs. 1500/- per CBM for Sira grey Rs. 2000/- per CBM for premium material above 70 cm. Rs. 1000/- per CBM for premium material for 30 to 70 cm Rs. 500/- per CBM for less than 30 cm Rs. 1500/- for good grade above 70 cm Rs. 750/- for good grade for 30 70 cm.

1. 2. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5.

Andhra Pradesh

It is imperative that adequate encouragement to the intending entrepreneurs in the trade is required. This could be effected only by making the field investor friendly and enabling Dimension Stone granite products to compete in the international market. This might result in revival of a number of defunct quarries and setting up of cutting and polishing units in the State which in turn generate considerable employment opportunities to the rural folk of the State. The amount of waste rock and rejected blocks generated in the process of production of Dimension Stone is more than 50 % which could be made for gainful use for making small sized tiles.

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7.0. Representation of the Registered Metal Crusher Unit Owners Association to the Technical Committee. The Registered Metal Crusher Unit Owners Association had submitted a representation to the Technical Committee for consideration of their demands. The main issues narrated in the representation are as follows:

1. Non-availability of qualified blasters. 2. Non-availability of qualified mine mates. 3. Government of India have prescribed 500m as danger zone for blasting. 4. Short period of quarrying lease. 5. Sound and dust vibration limits. 6. Imposing arbitrary conditions by the Local Bodies like Panchayaths. 7. Charging of bulk ANFO may be permitted in holes upto 50mm diameter. 7. Detonation of ANFO by detonator.

The convener of the Technical Committee had circulated a copy of the representation to all members of Technical Committee for their valuable suggestions. Detailed deliberation was held on issues raised by the All Kerala Quarry and Crushers Association in the meeting convened on 28.07.2008. Now, Government have instructed M/s.Malabar Cements Ltd. to arrange training programme to 10 to 15 quarry workers in a phased manner who are nominated by Quarry/Crusher Associations. After the training, these persons can approach the DGMS, Nagpur for issuance of Blasters certificate. 8.0 Recommendation Based on the detailed discussions and deliberations with the representatives of Associations the following suggestions are put forward by the Technical Committee to Government for consideration.

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1. The extent of grant of quarrying lease should have a minimum area of one hectare for the new applications. 2. The period of grant of lease should be limited to minimum of five years. 3. A copy of all quarry/mining lease issued by the DMG should be marked to the Director of Mine Safety, Chennai. 4. Implementation of the Mine Act is the primary duty of mine owners. Mines Act should be strictly followed by Mine Owners. 5. Comprehensive insurance coverage to all the workers and third party insurance also to be assured. This condition has to be satisfied before the execution of the Quarrying Lease. 6. Passport size photograph of the applicant should be affixed in the application; grant order and grant register to avoid malpractices. 7. Overburden should be cleared before commencing the mining/quarrying operation. 8. Removed overburden should be safely dumped by keeping required distance from the quarry pit as per MCDR. 9. Proper green belt should be insisted around the quarry area in order to avoid the flying splinters. 10. Proper slope/benches should be ensured for safety of quarry. 11. Fencing/retaining wall should be insisted surrounding the lease boundary. 12. Display of sign board indicating the permit details and explosives used, name of the permit holder and quantity permitted to extract, etc.. in both Malayalam and English languages. 13. A Sign board indicating the quarry/mine with in distance of 100m of the quarry site along the roads leading to the quarry should be installed. 14. Quarry plan including Environmental Management Plan in tune with the mining plan should be insisted along with the application in the case of application for Quarrying Lease. 15. Panchayath Act shall be amended in such a way that when a new building is to be constructed within 300 meters of the existing quarry a consent of the landowner and quarry operator in stamp paper worth Rs.50 each to the effect that they have

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no objection in granting licence for the construction of house with in a radius of 300m of the quarry. 16. Areas of cluster quarries have to be considered as Exclusive Quarry Zone providing with all required facilities considering the importance of this field in the developmental activities of the state. Considering the high density of population, environmental issues, safety measures and the developmental activities of the State, separate guidelines regulations and infrastructure facilities may be developed for the Exclusive Quarry Zone. Area suitable to develop such zones needs to be identified. 17. On completion of the quarrying activity, quarry pits should be properly secured from accidents or reclamation should be insisted by obtaining bank guarantee as suggested in the Mineral Conservation and Development Rules 1988 after the excavations are completed or the site may be used for rainwater harvesting with protective barriers or any other suitable approved purpose. 18. Siren and red signals should be insisted before blasting. 19. Adequate health protection measures like dust mask, glows, ear flux and first aid facility should be ensured. Identity Card for workers and records in this regard should be made mandatory. 20. M-sand production can be promoted by utilising the waste granite rubbles and metals and overburden of the quarry and crusher unit. In view of the shortage of the river sand and the restrictions imposed on river sand mining and very high demand in the field of construction industry, M-sand production may be lifted out from the negative list subject to all conditions. 21. Transporting of construction grade sand from other states should be promoted and a committee may be constituted to study the same. Removal of sand from the rivers has become a major environmental issue in the State. At the same time the construction industry that generates tremendous employment opportunities requires large quantity of construction grade sand. In order to ensure the availability good quality sand at reasonable price we may have to import sand from other States. To make this proposal financially viable a professional study may be conducted. The study will also include how best we can save the river ecosystem by identifying other alternate sources of construction grade sand. The study may include the methods for protection of river banks of the State. A request may be sent to Geological Survey of India (Marine Wing) to study the offshore sand availability for construction purpose. 22. Since the royalty levied for the major mineral by Central Government is very low compared to its value the matter of revision of royalty need to be taken up with the Central Government.

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23. Health Insurance schemes, uniforms, helmet and shoes etc. should be insisted for the workers employed in the quarry. 24. The use of Ordinary Detonators with safety fuse or electrical detonators depends on blasting requirements at the site and shall be left to the qualified blaster as to which mode of blasting is suitable. The use of safety fuse may be allowed as explosive Rules do permit both Ordinary Detonators with Safety Fuse and Electrical Detonators for blasting and Safety Fuse is extensively used for quarry operations in rest of the country as well. Considering the non-availability of required safety distances as well as qualified blastmen duly experienced, it is desirable to restrict the bore size of the holes to 32-40mm diameter unless otherwise permitted in writing by Director of Mines Safety for using higher diameter bore holes. 25. Environmental aspects such as sound level, suspended particulate matter, respirable suspended particulate matter etc. should be maintained as per the standards specified by the Kerala State Pollution Control Board.

Government may consider the above suggestions and recommendations and make appropriate policies and amendment in the Rules for quarry and mine safety and environmental protection, ensuring availability of Manufactured Sand (M-Sand) at a reasonable price and boosting of the revenue collection to the Government exchequer.

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