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Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. CHAPTER - I INTRODUCTION SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 0 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. 1.0 Purpose of the Report: Environmental impact assessment is, in its simplest form, a planning tool that is now generally regarded as an integral component of sound decision making. As a planning tool it has both information gathering and decision making component which provides the decision maker with an objective basis for granting or denying approval for a proposed development. The purpose of this Environmental Impact Assessment report is to study the present background environmental scenario, study the likely activities related to proposed construction and operation, identification of the probable environmental impacts due to those activities, review of the proposed environmental control measures including recommendation for acceptable alternative where necessary and final assessment of the impacts of the Project on environmental parameters. The EIAS is thus a comprehensive study on environmental impacts due to this expansion Project and also a tool to assess and identify means to mitigate the detrimental impacts on environment due to this expansion Project. 1.1 Identification of the Project and Project Proponent: Stork Ferro and Mineral Industries Pvt. Ltd. (STORK) is a 100% Indian subsidiary of Stork Handelsges M.B.H. Austria. The Indian subsidiary is formed mainly for production of Silico-manganese, Ferro manganese, Ferro Silicon in the proposed expansion plant located at Somanathpur Industrial Estate, Remuna, Balasore in the state of Odisha. Stork group started in 1990 by energetic entrepreneur Dr. Raghav J. S. Since very beginning the group has been actively working as a trader in the international markets for raw material. The stork group, with the far-sighted policy of management and experienced managers has taken the company to the great heights within a short period of time. Today, following companies come under stork group. i. Stork Handelsges M.B.H. Vienna Austria- Production, international marketing and finance company based in Austria since 1995. SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 1 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. This company actively works in Russia, Ukraine and other CIS countries, exporting minerals, equipment, chemical products, metals, including rare earths and other from these countries to Europe, the USA, India, Japan and other countries. It owns 100% shares of “Leninabad plant of rare metals” in Tajikistan. It took over the plant in the beginning of 2007. This plant produces noble ferroalloys like ferrotitanium, ferromolybdenum. ii. Stork Holding Pvt. Limited- This is a Russian holding company which owns shares in various companies in Russia and SIC. iii. Stork Travel- This Company owns two elite restaurants and tour business in Moscow. iv. JSC “Uralredmet”- This is one of the most important Russia based producer of vanadium based master alloys. These are used in titanium rolled products. The company has sales turnover of 90 million USD in year 2004. “Stork Handelsges M.B.H” works through its accredited representation in Moscow (Russia) and also with the help of its agents in New-York (USA) and Mumbai (India). “Stork Handelsges M.B.H” is an agent for: • JSC “Uralredmet” (Russia)- Producer of Master alloys for Titanium alloys, rare and rare earth metals. • JSC “VSMPO”(Russia)- Producer of titanium rolled products. • JSC “Avisma” (Russia) – Producer of titanium sponge. • “Volnogorsk State Mining Metallurgical Plant” (Ukraine) – Producer of titanium – zirconium concentrates • JSC “Beraton” (Russia) – Producer of Aniline and its derivatives. The Company has also collaboration with a number of machine tool and steel and metallurgical plants in Russia and Ukraine. Power engineering is the new line of company’s thrust area. The company is actively marketing equipment in the power generation sector produced in Russia and Ukraine. SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 2 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. This company is marketing: • Minerals (Titanium –Zircon products Rutile, Ilmenite and Zircon) • Master alloys for Titanium alloys, rare and rare earth metals • Non-ferrous metals: o Titanium sponge and Titanium rolled metals o Magnesium and its alloys • Equipment for metallurgical plants: • Equipment for mining industry. o Excavators o Crushers o Mills o Stackers • Equipment for power engineering (including nuclear one) Office Address in different countries a) AUSTRIA Stork Handelsges. M.B.H. Reichsratsstrasse 11/3A,A-1010,Vienna, Austria. Tel: +437326526 200, Fax: +43 732 65 26205 E-mail:[email protected] b) RUSSIA “Stork Handelsges. M.B.H.” Branch office in Moscow: 1 Novokuznetskaya Street, Moscow, Russia, 115184 Tel.:+7(495)2251350(12 lines), Fax:+7(495) 9595363 E-mail:[email protected] c) INDIA Representatives in India “Libra International”: Office No 125, Shreekant Chambers, Next to R.K. Stadio, St. Road, Chembur, Mumbai-4000071 Tel.: +91 (22)25201223, +91(22)25201224 Fax:+91(22)25201225 E-mail:[email protected] [email protected] SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 3 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. “Stork H.K.B. (India) Pvt.Ltd.” A-305, Somdutt Chambers-l, 5-Bhikaji Cama Place, New Delhi-110066 Tel.:+91(11)51658301, +91(11)26716517 Fax: +91(11)26197522 E-mail: [email protected] d) USA Representative in USA “United Minerals Group LLC” 315 East 86th steel, Suite 12L/E,New York, N.Y. 10028, USA Tel.:+12128605656 Fax: +12124277897 E-mail: [email protected] 1.2 Description of nature, size, location of the project and its importance to the country and region: 1.2.1 Nature of the Project: The proposed expansion project is having configuration to produce Silico-manganese, Ferro-silicon, and Ferro-Manganese depending upon market demand. Its office is located at Zilla Shool Road, Balasore – 756001, Telefax: 06782-261932 and the works site at Plot No. Z-1, IDCO IID Centre, Somnathpur, Remuna, Balasore (Odisha). The proposed 16.5 MVA SAF can produce 12,645 TPA of Silico-manganese/29,500 TPA of Ferro-manganese or 18,400 TPA of Ferro-silicon as per market demand. Presently with the first furnace the production of Silico-manganese containing 60-65% manganese, 18-22% silicon, 1.5-4% carbon, 0.3-0.35% phosphorus, 0.03% sulphur is produced. Silico-manganese is produced using submerged arc furnace. Manganese ore (containing 40-45% manganese), quartz, dolomite, coke are fed continuously to submerged are furnace. The temperature of furnace is 1300-1500 degree centigrade. At this high SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 4 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. temperature raw material melts. In submerged arc furnace, reduction of manganese ore occurs. Concentration of manganese is increased from 40-45% to 60-65%. Technical operating parameters are adjusted in such a way that silicon content in molten mass is maintained between 14-16% molten material is drawn from bottom of furnace, cooled, graded as per size, packed in gunny bags for dispatches. 1.2.2 Present Proposal: Stork is proposing to set up another furnace (1x16.5 MVA) within same premises of the Ferro Alloys Plant for production of Ferro silicon, Ferro manganese and Silico manganese at Somanathpur Industrial Estate, Balasore, Odisha depending upon the market condition. The basic raw material for each production will very as per its production. The project configuration is stated in the following table. Table No. 1.1 Project Configuration Description Existing Proposed 1 x 16.5 MVA SAF 1 X 16.5 MVA SAF Ferro Alloy Plant 26645 TPA Si-Mn 26645 TPA Si-Mn/29500 TPA Fe-Mn/ 11400 TPA Fe-Si 1.2.3 Purpose of Preparing EIA (Environmental Impact Assessment) Report: In all industries, the plant activities must co-exist satisfactorily with its surrounding environment so as to reduce the environmental impact caused due to industrial activities. To control the adverse impacts, sound and safe environmental management plan has been implemented by the proponent, which makes environmental protection as essential requirement along with production profits. In order to assess the likely impacts arising out of the proposed expansion project on the surrounding environment and evaluating means of alleviating the likely negative impacts, if any, from the proposed project, Stork Ferro and Mineral Industries Pvt. Ltd. intends to obtain the Environmental Clearance from Ministry of Environment and Forests (MoEF), Govt. of India, New Delhi for establishing second furnace as per MoEF, notification-2006. Accordingly, the SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 5 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. company has entrusted M/s Sun Consultancy and Services, Bhubaneswar, Odisha for the preparation of Environmental Impact Assessment (EIA) Report to get Environmental Clearance prior to the proposed expansion Ferro Alloys Plant at Somanathpur Industrial Estate, Balasore, Odisha. 1.2.4 Importance of the Project to the Country and Region: Average consumption of Silico-manganese is 6 to 10 Kgs for 1 MT of steel consumed. They are used mainly in carbon steel production. Out of total steel production 75% production is carbon steel. The demand for Manganese based alloys directly depends upon growth in steel production. Steel industry has changed completely in last 5 years. Currently Indian steel consumption is only 40 kg per capita as against world average of 140 kgs. Consumption of steel in developing countries is 350 kgs per person. Today India is in a phase where China was 10 year ago. Therefore practically every steel company is in the process of expansion. Also India has natural advantage of high quality iron ore. The huge steel projects are going to come up in Odisha. Indian steel production is projected to be about 200 MMT by 2020 .Similarly domestic Mn alloys consumption will also go up. Therefore, in the existing scenario the expansion of Silico- Manganese plant and other alternative production at Balasore will contribute largely for the up coming project in Odisha as majority of present and future steel producers are within 200 kms distance from proposed plant. Considering domestic & international demand of Silico-manganese/ Ferro-manganese product, the provision of proposed expansion project for production capacity of 26,645 Ton Silico-manganese/ 29500mt Ferro-Manganese/ 11400 Ferro-Silicon by establishing the IInd Furnace. Stork Ferro & Mineral Industries Pvt. Ltd. will concentrate mainly (70%) on export market i.e. supplying Silico-manganese to its existing European buyers. The parent company, Stork Handelsges M.B.H. Austria, is already procuring silico-manganese more than 15000 Ton per year from India & selling in Europe. After the expansion of IInd furnace the project configuration will change from 26645 TPA Si- Mn to 53290 TPA and also there will be provision of producing Fe-Mn and Fe-Si depending upon the prevailing market demand. The Parent Company will procure Silico- manganese from its Indian subsidiary for marketing in Europe. Balance quantity can be SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 6 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. sold to nearby steel producers in Odisha state. Industries are always the developmental indicators of the national and regional economy. This increasing business involvement in the global market with a wide-ranging export market will definitely improve the state and country’s economy. 1.2.5 Major Components of the expansion Project: • One No. of “Sub merged Electric Arc Furnace” of capacity 16.5 MVA each. • Complete Raw Material Handling System along with weighing, batching & furnace feeding. • Soft Water Plant & Cooling Tower. • Gas Cleaning Plant (GCP). 1.2.6 Feasibility of the Proposed Project: • The technology to be adopted in the proposed project of producing ferro- manganese by smelting in the sub-merged electric arc furnace process is a traditional & proven technology. • The basic raw material for the plant will be imported from Manganese ore mines of Orissa Mineral Development Corporation, which is about 300 km away from the proposed project location. • Special attention has been given to adoption of pollution prevention technologies by setting up Gas Cleaning Plant (GCP). • Proven and the best available technologies selected. • The selected site at Somanathpur Industrial Estate, Balasore, Odisha is distinctly advantageous as the most suitable place for the proposed project in terms of road, rail and sea connectivity. 1.2.7 Justification of the Selected Site: Justification of the above location is as follows: a) Nearness to domestic market: Major steel producers who will be potential consumers of Silico-manganese are located within 300 km. distance from the proposed location. SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 7 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. b) Nearness to sea ports: Proposed location is equidistance to both Haldia port & Paradeep port which have excellent port facility & centrally located for the procurement of imported raw materials like Manganese ore, coke & coal for proposed power plant in future. Also finished product Silico manganese or other two products can be exported to Europe using port facilities. c) Nearness to Manganese ore mines: The proposed location is about 300 km. away from Manganese ore mines of Odisha Mineral Development Corporation which has assured prompt supply of manganese ore under approval of combined application for raw material linkages. d) Availability of manpower: Unskilled, semi-skilled, manpower is easily available in the existing unit. Also technically qualified managerial staff is available within the area due to good development of various industries in the nearby area. e) Infrastructure Developments: Somnathpur Industrial Estate enjoys benefits of following well developed infrastructure facilities: - Nearness to railway station for procurement of raw materials in bulk by railway wagons. - Nearness to financial institutes like State Bank of India & other commercial banks for routine commercial/financial operations. - Availability of telephone, fax, mobile & internet facilities for keeping good rapport with suppliers & customers. - Availability of good educational institutes for the education of children of staff & workers. There is no need for the company to develop Separate Township which is must if location is at remote place. This will help to reduce manpower turnover in the long run. The location of the proposed expansion project is depicted in the following Fig.No. 1.1. SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 8 Stork Ferro And Mineral Industries Pvt. Ltd. Chapter –I Introduction Somnathpur, Remuna, Balasore, Odisha. Fig. No. 1.1 Location Map of the Project Area in Vicinity Map SUN CONSULTANCY AND SERVICES, BHUBANESWAR I - 9

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Environmental impact assessment is, in its simplest form, a planning tool that is now generally regarded as . [email protected] Clearance prior to the proposed expansion Ferro Alloys Plant at Somanathpur Industrial. Estate
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