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Y.R. Ghorpade (His Highness Yeshwantrao Hindurao Ghorpade)

(1908-1996)

Founder (1954)
Chairman and Managing Director (upto 1996)

“That by placing matters of such constitutional character for

discussion and recommendations of the House, abundant evidence
of the complete identity of interest between the Ruler and the
People was demonstrated and clearly showed the constitutional
basis of the entire administration.”

-Resolution passed by the Sandur Legislature when Instrument of Accession

was executed between Y.R. Ghorpade, Ruler of Sandur and the Governor
General of India in 1947.

“Sandur is an oasis in a desert…. The Ruler of a small State

(Sandur) in South India has thrown open his temples to the
Harijans. The heavens have not fallen.”

—Mahatma Gandhi, 1934

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M.Y. Ghorpade
(1931 – 2011)

Administrative Officer
Joint Managing Director
Managing Director
Chairman and Managing Director (upto 1999)

“All that we get (earn) from the soil of Sandur in one form or the
other should be primarily used to benefit Sandur.... The Mining
Lease is something that has to be held in Trust for the benefit of
those who are working so hard for so many years, with so much
faith and determination. This is not anybody’s private property,
but a sacred social responsibility, in which each one of us has to
function as Trustee for the toiling workforce.”

“I was able to win the full confidence of the labour who were
convinced that nothing contrary to their common interest will
be done, and everything will be done in the most transparent
manner. This faith and commitment has remained at the core of
the philosophy of the company and has not been eroded all these
years. This is my greatest satisfaction in life.”

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 M.Y. Ghorpade teaching English to children of Sandur Residential School, Sandur.

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S.Y. Ghorpade
Asst. Plant Superintendent
General Manager (Plant)
Technical Director
Chairman and Managing Director (from 1999)

“I am not a trained teacher, but I certainly enjoy giving tips on

precision and conciseness, be in writing or solving mathematical
problems. In any methodology we must ask the question; ‘Why?
Can it be simplified?’ The result should be an elegant solution.”

“Nothing like hard and sincere work makes for success and
satisfaction in life. Good and ethical behaviour makes you a
welcome addition to social growth."

“Disseminate information down the line. Confer responsibility

with accountability. Don’t play favourites and lead by example...
Embrace scientific temper; shun superstitious belief, maintain
positive attitude.”

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 Manganese Ore Sorting

Mines

• First Mining operations date back to 1907 • Largest Manganese Ore Mines in the private sector of the country
• Lease over 7511 ha was first granted to SMIORE in 1954. Renewed over • Proven reserves-40 Mt Iron Ore, 8 Mt Manganese Ore, 100 Mt BHQ
4715 ha in 1974 and 3215 ha in 1994
• Operations in 1758 ha of forest land and 247 ha revenue land. 1210 ha
reserved for future

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 Drilling

“Although in case of a large number of mines, the mining operations do not follow any concerted or well thought out plan
of development, there are a few bright exceptions. For example, the group of mines controlled by Manganese Ore India Ltd.,
M/s. Sandur Manganese & Iron Ores (P) Ltd., and few other companies have planned the layout of their mines in a systematic manner.”

—Vasudeva Committee Report, 1965

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 Manganese Ore Mines

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Iron Ore Mines

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 Iron ore loading at SDMG Siding

Ore Evacuation

• Well connected to two Railway Sidings: Swamihalli (SMLI) and • Plan to install a 4.2 km gravity ropeway from Kammathuru Iron Ore Mines to
Sunderambencha (SDMG) on the Swamihalli - Hospet BG Line, 12 km from Swamihalli Railway Siding. Environment friendly and pollution free transport
mine head. Hospet is on the Guntakal – Hubli railway line • Plan to also install ropeway/tube conveyors from Mines to Ranjitpura and
Sunderambencha railway sidings

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 JMPL—Ore Beneficiation Plant at Nandihalli, Sandur

Ore Beneficiation

• JV with Jayalaxmi Minerals (Pvt) Ltd., Nandihalli, Sandur • 62/63% Iron Ore concentrate, suitable for sinter/pellet
• Capacity–1.2 Mtpa feed • Jig for upgrading Manganese Ore by 3 to 4% Mn
• 56/58% grade Iron Ore enriched to grade 62/63% • R & D for BHQ and Manganese Ore beneficiation

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 Ferroalloy Plant, Vyasanakere, near Hospet

Ferroalloys and Electricity

• Smelting facilities: 15 MVA (Tagliaferi, Italy) and 20 MVA (Elkem, Norway) • 32 MW Captive Thermal Coal based Power Plant
submerged electric arc furnaces • 220 mu of energy per year—160 mu for furnaces and 60 mu for sale
• Products: Silicomanganese, Ferromanganese and Ferrosilicon

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32 MW Thermal Power Plant at Vyasanakere, near Hospet

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 Diversification – New Projects

• Steel Plant–1 Mtpa • Power Plant–80 MW

• Iron Powder–1,00,000 tpa • Iron Ore Beneficiation Plant–1.7 Mtpa

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Solar Power System at Girls Hostel, Sandur Polytechnic at Yeshwantnagar, near Sandur

Solar Power Project

Solar Street lighting at SMIORE Staff colony, Mines camp, Deogiri

• Production of Solar Photo Voltaic Modules and Assembly of Power Systems Active Installations:
• Power Systems for street lighting, homes, community centres, schools and • 4 kW Power System at Girls Hostel, Sandur Polytechnic, Yeshwantnagar
hostels, drinking water pump stations, agricultural irrigation pump sets • 7.5 kW Power System for street lighting of colony at Mining Camp, Deogiri
• Powering villages and remote areas of mining buffer zones - Corporate Social
Responsibility

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 Sandur Laminates Plant for Manufacture of Solar PV Modules at Lakshmipur, Sandur

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“As regards specific opinion of the undersigned on the request of the mine owner for reserving forest land, I would like to state that
the area has been inspected by me and seen; and in short, the forests left to their care are quite safe and large areas deserve to be kept
with them further. Considering the fact that the Sandur Taluka forests need to be protected carefully, as several large number of small
lease areas existing in this zone have already made adverse impact on Forest wealth, I, in the interest of maintaining ecology in this
zone, recommend again for sanction of this large area to the party in the best interest of preserving the forests and fauna.”

—Conservator of Forests, Bellary, to PCCF while recommending renewal of SMIORE’s lease.

Plantation at Deogiri

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 Dump Management, Kammathuru Iron Ore Mines, Deogiri

“It is observed that (a) the joint team has not found any illegality vis-a-vis the sanctioned lease boundaries (b) the owners of the Lessee
Company have voluntarily handed over more than 2000 ha of forest land owned by them to the State Government and which has no parallel
in the State, and (c) the Lessee Company has an excellent track record of undertaking mining operations in accordance with the law.”

—CEC & Joint Team constituted by Hon’ble Supreme Court of India, 2011-2012

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 Silt-Settling Tank

Environment Protection, Afforestation, Reclamation and Rehabilitation

• Mining Lease Hold area: 1758 ha Forest Land, 250 ha or 14% maintained as • 30 lakh trees planted from 2000 to 2013
forest cover, with plantations, nurseries and avenue trees

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 Avenue Plantation

Toe Wall and Drain

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Cement Masonry Retainer Wall

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 Rain Water Harvesting

SMIORE's Supplementary Environment Management Plans (Semp)

Toe Walls 17000 metres Silt Settling Tanks 60 Nos. Budget:

Drains 26500 metres 135 Nos.
1st year (2012-13) `28 crore
Check Dams
Greening & Consolidation of Dumps 150 ha 3350 metres 2nd and 3rd year `9 crore
Retaining Walls 13000 metres Rainwater Harvest Pits 50 Nos. 4th to 16th year `34 crore
Plantation in Mining Area/Safety Zone 90 ha Gulley Plugs 215 Nos. Total `71 crore

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Cement Masonry Retainer Wall and Dump Plantation

Dry Masonry Retainer Wall and Drain

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 School children-Deogiri

Corporate Social Responsibility—Education

• Support to 16 Schools and Colleges with 5500 students and 250 teachers
• Sandur Polytechnic, Yeshwantnagar (Estd: 1988)
• Sandur Residential School, Sandur (Estd: 1959)
• Sandur Girls´ Residential School, Vyasanakere, Hospet (Estd: 1991)
• Smiore Vyasapuri Junior College, Vyasanakere, Hospet (Estd: 1991)
School Assembly at Deogiri
• One High School and Two Primary Schools in Deogiri and S.B. Halli Mining Camps
• High Schools and Primary School at Ferroalloy Plant, Vyasanakere
• Two High Schools (including one exclusively for Girls), two Junior Colleges • Training Institute for better employability of youth–Vocational training such
(including one exclusively for Girls) and One Primary School at Sandur as Carpentry, Plumbing, Computer Operation, Welding, Electrical Wiring,
• M.Y. Ghorpade Freeships for 50 boarders (merit-cum-means) for studies in Masonry and Horticulture
Sandur Residential School • MYG Special Training Centre for Eradication of Child Labour
• SMIORE scholarships (merit-cum-means) for 200 children in SRS/SGRS and 200 • Free Mid-day meals (through Akshaya Patra) for 1200 children in schools in
children in Sandur Polytechnic and around Sandur

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M.Y. Ghorpade Bal Bhavan, Sandur Residential School

Mid-day Meals for School Children

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 Sandur Polytechnic - Mechanical Engineering

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 Sandur Girls Residential School, Vyasanakere

Abacus - Computer Centre, Sandur Polytechnic

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 Eye Care at SMIORE Arogya Community Health Centre, Sandur

Corporate Social Responsibility—Health

• Full-fledged hospital at Sandur – Arogya Community Health Centre • Annual Health Camps for Cancer detection, Woman and Child care, Cardiac
• Specialized eye care (40 beds) and regular Cataract camps care, Pediatrics, Orthopaedics and ENT

• Specialty camps every Sunday • Financial help for needy people for advanced medical care in cases of major
ailments

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 Adarsha Community Centre & Kalyana Mantapa

Music concert by Late Pt. Bhimsen Joshi at Adarsha Concrete Road - Sandur to Kumaraswamy Temple Houses for flood victims in Siruguppa Taluka,
(in association with others) Bellary District

Corporate Social Responsibility—Area Development

• Construction of roads • Fire accident relief – food grains, cloth and cash
• Construction of houses for victims of floods • Community Hall at Sandur for marriages, seminars, concerts
• De-silting of tanks in buffer zone • Contributions for development works in the District
• Compensation to farmers for drought, floods, dust pollution

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 Khadi Weaving at Sandur Kushala Kala Kendra

Tailoring Traditional Lambani Mirror & Embroidery at Sandur Kushala Kala Kendra

Corporate Social Responsibility—Fine Arts

• Sandur Kushala Kala Kendra (Established 1984) • Nurturing and Protecting traditional craft and fine art
›› Well-known Handicraft Centre of India • Lambani Mirror and Embroidery, Stone Carving, Bamboo and Cane Works
›› One of the three Art and Craft Centres of India recognized by Aid to • Exporting Mirror and Embroidery, Needle and Thread Work to USA, Australia,
Artisan, USA Japan, Netherlands and UK
• Gainful employment for 300 women artisans (Mirror and Embroidery), • Promoting Khadi – Spinning, Weaving and Dyeing
mostly from backward tribal community

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 Quantity Price Paid by employee
Item
per month (Kg) (` / kg) per card (`)
Rice 25 2.00 50.00
Jowar (W) 20 1.00
20.00
(H) 27 0.75
Tur Dal 3 2.20 6.60
Dry Chillies 1 4.60 4.60
Jaggery 2 2.00 4.00
Ground Nut Oil 2 6.50 13.00
Gram Dal 1 2.00 2.00
Wheat 5 1.75 8.75
Rava 2 3.00 6.00
    Total 115.00

• Difference in market price (`2600/card in 2014) and price paid by employee

(`115) borne by Company as subsidy, i.e., about `2500 per employee
• Housing Loan - 60 times salary @ 1% interest, repayable over 15 years
• Cash gift for clothing - `2000 to `12,500 to every employee every year
• Subsidized LPG (cooking gas) - 8 cylinders a year at 40% to 75% subsidy over
Govt. subsidized rates
Food Security - Supply of Ration
• Free solar heated water
• Free Electricity to employees in Company Colonies
• Dispensaries and Hospital at Mining Camps, Deogiri & S.B. Halli
Employee Welfare • Medical expenses entitlement - 20% of annual salary every year
• Generous and almost full reimbursement of cost of treatment/surgeries in
• For 3000 direct and indirect employees case of major ailments
• Many second and third generation in employment of the company • Festival gifts for Ugadi, Deepavali, Ramzan and Christmas
• Largest Technical manpower in private sector mineral mining • Cash gift for marriage of children - `10,000 to `1 lakh
• Priority for right to food, clothing, housing, medical care and education • Scholarships to meet total fee (based on Government fee) for PUC, Degree
• Food Security – All employees given ration cards for monthly supply of courses, Engineering, Medicine
essential commodities at highly subsidized rates • Scholarships for study in Sandur Residential School, Sandur Polytechnic and
• Food package, (`115 at 1972 prices), sufficient for average family of 5 for a SMIORE PU College
month • Financial help in the event of death in family

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 ’See Sandur in September’

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 A Saga of Commitment to Sustainable Development in the cause of Society
- a safe and good future for employees and their coming generations.

Sandur – an Oasis inception. M.Y. Ghorpade represented Sandur in the Karnataka Assembly for
Mahatma Gandhi had once described the picturesque valley of Sandur as an about four decades and also served as Karnataka’s Finance Minister and Rural
oasis. Sandur, a historical town in Bellary District of Karnataka State, endowed Development & Panchayat Raj Minister. He nurtured and developed SMIORE into
with mineral wealth, is known for its sylvan beauty. Very appropriately, on the one of the finest professionally managed companies of India, doing business in
rampart atop the gorge at the western entrance to the valley of Sandur it is the fields of Manganese Ore, Iron Ore, Ferroalloys and Power. Armed with an
written “See Sandur in September”. Economics Tripos Master’s degree from Cambridge, M.Y. Ghorpade was known
for his forthrightness, integrity and diligence in whatever responsibility he was
Promoters entrusted with. Noteworthy are his contributions in streamlining the budgeting
The Sandur Manganese & Iron Ores Limited (SMIORE) was founded in 1954, as and income & expenditure of the finances of the State. He is still remembered
a Private Limited Company, by the former Ruler of the Princely State of Sandur, for his contribution in effective implementation of the Panchayat Raj Act and
Y.R. Ghorpade (Yeshwantrao Hindurao Ghorpade), to scientifically develop devolution of powers in the three-tier administrative and governance system.
the Manganese Ore and Iron Ore mines. The Mining Lease granted to him was He strived hard to formulate and ensure the reservation system in local body
over an area of about 7500 hectares (ha). elections, especially one-third reservation of seats for women. M.Y. Ghorpade
was an accomplished wildlife photographer of rare distinction, a profound lover
As Ruler of Sandur from 1928 to 1949, Y.R. Ghorpade had introduced many of nature and author of some wonderful books on nature, history, economics,
progressive administrative measures and reforms, including throwing open the rural development, Panchayat Raj and education.
ancient shrine of Lord Kartikswamy to all castes. Mahatma Gandhi on learning
about this when he visited Sandur in 1934 had remarked “A small State in While Y.R. Ghorpade, the former Ruler of Sandur, after having assented to
South India has thrown open the temples to the Harijans. The heavens have merger of the Sandur State with the Union of India, had the foresight and passion
not fallen.” for establishing an industry in the organized sector for creating employment,
M.Y. Ghorpade was committed to ensure that running and management of the
M.Y. Ghorpade (Murarirao Yeshwantrao Ghorpade), eldest son of Company results in development of the region for the benefit of the people
Y.R. Ghorpade, was associated with the management of the Company from its of the area, providing a good return to the shareholders of the Company, and

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 passionate welfare of the employees and their families. He firmly believed that was transferred to the Company. Out of this, 2800 ha of area which was largely
a major part of what the industry earns must go back for development of the Iron Ore bearing, was deleted when the Company’s Lease was renewed in 1974
area in which it is situated, to the betterment of the livelihood of its employees and retained by the Government with the intention of reserving it for mining by
and to secure a safe future for their children. His sustained effort of socio- Public Sector. Unfortunately, quite contrary to prior intentions, most of this area
economic reconstruction and service, over the years, has set the tone and road which is rich in Iron Ore was leased to other private entrepreneurs. SMIORE’s
map for the Company’s progressive growth. Lease was renewed in 1974 over an area of 4700 ha. During the second renewal,
the Company voluntarily surrendered another 1500 ha of forest area which did
S.Y. Ghorpade (Shivrao Yeshwantrao Ghorpade), younger brother of not seem to hold much mineral reserves, and SMIORE Lease was renewed over
M.Y. Ghorpade, is a Metallurgical Engineering graduate from the renowned an area of 3200 ha with effect from 1st January 1994. Founder Y.R. Ghorpade,
Colorado School of Mines, USA. S.Y. Ghorpade is recognized as one amongst magnanimously and with a view to ensure better protection and development
the most eminent metallurgical engineers of the Country and was largely of forest in the area, had in 1980 handed over (rather gifted) about 1600 ha
responsible in building the Company’s Ferroalloy Plant from scratch to one of his personal property (even though he had mining rights in the same as per
of the finest Plants in India. Essentially a scientist to the core, S.Y. Ghorpade the Merger Agreement). Clearance under Section (2) of the Forest Conservation
has presented many Papers of significance at National and International Act, 1980, was obtained by SMIORE to work in 2005 ha (out of 3200 ha of ML
Seminars, and is also Chairman of Sectional Committee of the Bureau of Indian area), and the balance of about 1200 ha forest area is being reserved for future
Standards for Pig Iron and also for Ferroalloys and Manganese Ore. Science and use. Reserves in SMIORE Lease area are estimated at about 40 million tonnes
the scientific temper, being deeply embedded in him, S.Y. Ghorpade whose (Mt) of low grade Iron Ore, about 8 Mt of low grade Manganese Ore and nearly
passion of life is proper application of science, is now Chairman & Managing 100 Mt of BHQ.
Director of SMIORE and actively engaged in the Company’s critically vital
diversification activities such as setting up a integrated Special Alloy Steel Plant, As per the new norms for determination of production capacities, SMIORE
Iron Ore and Manganese Ore beneficiation, environment friendly ore transport would be entitled to mine about 2 Mtpa of Iron Ore and, perhaps about
systems, solar power systems, and captive thermal power plants to support and 0.4 Mtpa of Manganese Ore after establishing reserves under the United
ensure long term viability of the ferroalloy operations. Nations Framework Classification (UNFC).

Mining SMIORE’s Low Grade Manganese Ore is known for its low phosphorus content
Manganese was discovered in the Sandur hills as early as in 1838. The ore (below 0.05%) and has the unique reputation of being one of the finest low
was mined by a foreign company from 1907 till 1953. The old workings and grade, low phosphorous metallurgical ores and used in blends for manufacture
pits, though long abandoned, are still visible in parts of SMIORE’s lease hold of ferroalloys and steel.
area. Y.R. Ghorpade, the former Maharaja of Sandur, after he merged the
Sandur State with Union of India, was awarded a mining lease over an area of SMIORE has always laid special emphasis on scientific mining, safety,
7500 ha. He founded the Sandur Manganese & Iron Ores Limited and the Lease afforestation and environment protection. SMIORE has won several awards for

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safety and environmental protection at the State and National levels. SMIORE’s about 50% of total area of 22 Mining Leases classified in category ’A’ (which
culture and philosophy of utmost regard and respect to the various statutes were found to be involved in no or minimum illegalities). Naturally, SMIORE
and rules of mining, has held the Company in good stead. has always been considered to be one of the best mining companies in the
State of Karnataka.
The Government of India had appointed a committee, popularly known as
Vasudeva Committee to study Manganese Ore Mining Procedures in India. The Manganese Ore Beneficiation
Report of the Committee, published in 1965, significantly noted: Owing to the increasing paucity of high grade ore for ferroalloy smelting, the
Company had long since decided to commission a pilot plant for enriching
“Although in the case of a large number of mines, the mining operations its low grade Manganese Ore (30% Mn/25% Fe) to high grade ore (34% Mn/
do not follow any concerted or well thought out plan of development, there 8% Fe). The close interlocking of the oxides of Mn and Fe in the low-grade
are a few bright exceptions such as mines controlled by Manganese Ore ferruginous Manganese Ore, necessitates selectively magnetizing the Fe2O3 to
India Limited, M/s. Sandur Manganese and Iron Ores Limited and a few Fe3O4 by roast-reduction with coke in a rotary kiln (2tph). After grinding the
other companies who have planned the lay-out of their mines in a systematic product and subjecting it to dry and wet high-intensity magnetic separation,
manner.” the interlocked oxides are liberated. While both Mn and Fe oxides can be
sintered, the magnetic fraction can be alternatively marketed for applications
Recently, during 2011-12, after carrying out a detailed investigation into such as heavy media separation and anodized protection of marine pipelines.
“illegal mining”, the Central Empowered Committee (CEC) and the Joint Team Sinter of enriched Manganese Ore would be an ideal substitute for high grade
appointed by the Hon´ble Supreme Court of India said in their Report to the ores for Manganese alloy (FeMn and SiMn) production.
Supreme Court:
The roast-reduction route for enriching the low-grade Manganese Ore, which
“...the joint team has not found any illegality vis-a-vis the sanctioned lease is in abundance and incidental to mining higher grades, if proved viable, can
boundaries, (b) the owners of the lessee company have voluntarily handed over become an attractive commercial proposition and has far reaching significance
more than 2,000 ha of forest land owned by them to the State Government in the national context. Justifiably, for conserving scarce high grade reserves
and which has no parallel in the State, and (c) the lessee company has an and exploiting the low-grade ores, SMIORE plans to use the Pilot Plant for
excellent track record of undertaking mining operations in accordance with beneficiating some low grade ores from its own Mines for use in blend
the law.” for FeMn and SiMn production for the present; and in due time, set up a
full-fledged Beneficiation Plant with roast reduction and magnetic separation
The findings of the Supreme Court appointed team for investigation of facilities on a commercial scale.
illegal mining, in as far as SMIORE is concerned, is a matter of great
satisfaction and re-assurance of its policy of “business with ethics and values”. Iron Ore Beneficiation
More so, when considering the fact that SMIORE’s Lease covers an area of Though almost all the potential Iron Ore bearing areas were deleted from its

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 Lease Hold, even the predominately Manganese Ore bearing areas contain SMIORE plans to set up more Ropeways and also Conveyors in the future,
some low grade Iron Ore in the intervening traverse regions, whose reserves from its other Manganese and Iron Ore mines to the SDMG and the Ranjitpura
are estimated to be in the vicinity of about 40 Mt. Railway Sidings.

SMIORE has identified and plans to acquire, after sustained trials and a Ferroalloys
feasibility study, a beneficiation plant located close to its Mines, to upgrade With firm belief in value addition and significant contribution to industrial
its ores from 56%-58% to 62%-63% Fe grade. Sample studies indicate that development of the region, SMIORE was converted into a Public Limited
the process would entail crushing, screening, washing, jigging and magnetic Company in 1964, in order to establish an electro-metallurgical industry
separation. The enriched output concentrate (62%-63% Fe) would be suitable and diversify its activities into production of pig iron and ferroalloys using
for both sinter and pellet production, with yields of 75%-80%. While SMIORE the Iron and Manganese ores from the mines. SMIORE set up a ferroalloy
has adequate land and water required for setting up such a Beneficiation Plant plant in 1968. In deference to the suggestion by the Government, and with
at its ferroalloy plant premises at Vyasanakere, near Hospet, SMIORE has also an assurance from it and an agreement with the State Electricity Board for
entered into a facility leasing agreement to use the said 1.2 Mt per annum supply of adequate power at a viable tariff, SMIORE ventured into production
beneficiation plant, which if found to be feasible, is proposed to be acquired of foundry grade pig iron production. In 1977, with addition of two more
and further investment made in it to make it more suitable for effective 20-MVA furnaces, the plant was diversified into production of Ferromanganese,
beneficiation. Perhaps, the vast reserves of BHQ and low grade Manganese Ferrosilicon, Silicomanganese and Ferrochrome. By 1980, SMIORE’s Metal &
Ore fines could also be beneficiated in this Plant, with suitable adaptations and Ferroalloy Plant at Vyasanakere, near Hospet, was recognized as one of the
additional equipment. finest metallurgical plants of the country. It gained a reputation for supplying
quality low-phosphorous pig iron to the Indian foundry industry, especially for
Ropeways quality-conscious automobile industry, and also ferroalloys to SAIL and other
Poor infrastructure, severely damaged roads, inadequate rail carrying steel plants in India and overseas.
capacity, and undue pollution, consequent to heavy transportation of ores,
are matters of great concern to the mining industry. Determined to combat During the nineties, operation of the furnaces and production of
this deteriorated condition, SMIORE has decided to revive its Ropeway ferroalloys became unviable entirely due to inadequate supply of power,
system. The Company has obtained Government approval to set up a 4.2 km coupled with an unviable tariff. The Plant had to be shut down completely by
ropeway from its Iron Ore mines at Kammathuru (Deogiri Group of Mines) the year 2000.
to the railway siding at Swamihalli, for onward rail movement to various
destinations of end users or to the Company’s Ferroalloy Plant premises at A spurt in the demand for even low-grade Manganese Ore and iron ore turned
Vyasanakere, near Hospet. The project will result in considerable lowering the fortunes of the Company from 2007-08 onwards. This enabled the Company
of transportation cost, besides gaining qualitative benefits of cleaner air and to obtain majority stake in Star Metallics and Power Private Limited (SMPPL),
enhanced safety. which had earlier been set up by ETA of Dubai and others who had purchased

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SMIORE’s ferroalloy plant, which has capacity to produce about 45000 / 60000 / the Iron Ore reserves may be augmented if at least some of the Iron Ore bearing
20000 tonnes of Silicomanganese / Ferromanganese / Ferrosilicon. areas, deleted from its earlier Lease Hold, is restored by the Government by
favourably considering pending application for sanction of Lease of about
Power 200 ha of such deleted area. SMIORE plans to set up an integrated plant
To alleviate the double disadvantage of high cost and non-availability of to produce 1.0 Mt of steel, which would include a sinter facility, coke oven
adequate power, which was experienced in the past, SMIORE has made battery, 40 MW waste heat recovery power plant, mini blast furnace, basic
investment in SMPPL to install a 32-MW Thermal Power Plant, to meet the oxygen furnace, ladle refining furnace, vacuum degassing, continuous casting
entire power requirement of the two furnaces (one 15 MVA Italian Tagliaferi and a rolling mill. The Company already has some land and water allotment
and one 20 MVA Norwegian Elkem). at the Ferroalloy Plant premises in Vyasanakere, near Hospet. Acquisition of
additional land and increase in water allotment from the Tungabhadra reservoir
The power plant has capacity to generate about 220 mu of saleable power per would meet all the requirement of the iron ore beneficiation plant as well as
annum. While the two furnaces together may use about 160 mu of power for the integrated steel plant. Plans are afoot to also set up a powder metallurgy
ferroalloys production, 60 mu of surplus power is available for sale in the open plant, in collaboration with a reputed multinational company for use of about
market. SMPPL has been granted by the Central Government a coal linkage 100,000 tonnes of liquid steel for production of powder iron, to be located in
with Singareni Collieries. To ensure trouble free operations, a blend of Singareni the same premises.
and imported coal is used. The Company is also trying to identify and invest in
a suitable and viable coal concession in Indonesia, to meet its requirement of Pending establishment of the integrated steel plant, SMIORE has joined hands
coal to operate the power plant. with Shimoga Steels Ltd (SSL) for production of steel ingots and TMT bars.
About 1.5 lakh tonnes of Iron Ore could be used for production of ingot steel
To further strengthen its ability for future diversification into additional or sponge iron on a conversion basis and then upgraded to TMT steel bars.
ferroalloys, beneficiation of Iron Ore and Manganese Ore, and also steel This project is at an advanced stage of implementation by refurbishment of
production, SMPPL has obtained approval from the Karnataka State Government the available facility of SSL to produce about 75,000 tonnes per annum of
for setting up one more 40 MW thermal power plant. The proposed steel plant TMT bars.
also envisages a 40 MW power plant using flue gases from the blast furnace
and coke oven batteries. Solar Power
SMIORE has undertaken R&D work to make necessary alterations and devise
In all, the Sandur Group should eventually have an internal power generation a process for production of Photovoltaic Modules (PVM) for generation of
capacity of about 112 MW. solar power, by use of the equipment at the Sandur Laminates Limited (SLL), a
SMIORE subsidiary which had been earlier set up for manufacture of copper clad
Integrated Steel Plant laminates. It has been established that the facility could annually produce PVMs
The Company has plans to pursue its policy of value addition further. Hopefully, equivalent to about 20 MW of power. Demand for PVMs in India is growing.

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 Demand in Europe is enormous. Manufacture of PV Modules for export as SMIORE will take up at its own cost as part of CSR, some of these installations
well as domestic sale is expected to start soon. This project is of significance to make a beginning. Obviously, the demand will increase multi-fold with
as it would be in the field of renewable energy, which has assumed national successful implementation of these projects. If similar projects are proposed
importance. in the whole of Bellary District, and also in Tumkur and Chitradurga Districts
of Karnataka, which are the other areas which come under the Mining Impact
With manufacture of PV Modules at the Laminate Plant, SMIORE plans to Zone, the demand would be huge, and the facility at SLL could be used very
design and assemble Stand-alone Solar Power Systems with bought out effectively and beneficially.
components like inverters, batteries, light fixtures, cables etc. As part of trials,
PV Modules were manufactured at SLL and Solar Power Systems have been Environment Protection, Afforestation, Restoration &
designed, assembled and set up at the Girls Hostel in the Sandur Polytechnic, Rehabilitation
Yeshwantnagar. A Street Lighting System has also been set up in SMIORE’s SMIORE’s Mining Lease comprises of about 2005 ha, out of which about
Labour Colony at Deogiri Mines. These units have been running successfully, 1760 ha is forest land (the balance 245 ha being revenue land, most of which
providing free power to the Girls Hostel and the Labour Colony. houses the company’s labour colony, offices, schools, hospitals, etc.). SMIORE
has developed and nurtured tree plantations (forest cover) over an area
Bolstered with this success, as part of R&R or the Supplementary Environment of about 250 ha of valuable mining area, with its own nurseries to support
Management Plan and the proposed plans for rehabilitation and developmental regular supply of saplings. Over the last 15 years, SMIORE has planted over
works in the Mining Impact Zones, SMIORE has plans for very pertinent and 30 lakh trees, with about 60% survival rate, which by far exceeds the statutory
beneficial development activities in the “buffer zone” around its mines, which requirement. Nearly 10,000 bamboo trees planted by SMIORE during 1990 for
comprises of 22 villages and also the town of Sandur. Manufacture and reclamation of land used for mining in S.M. Block have become a model site
assembly of stand-alone solar energy based power systems would play a very which is much appreciated by the Forest Department.
vital and meaningful role in this direction.
SMIORE’s mining lease lies in a hilly terrain. To prevent soil erosion, contain
SMIORE proposes to include in its CSR and R&R Plans, Solar Power projects dumps from being washed away by rains, and to prevent the lakes in the
such as Home Lighting, Street Lighting, Community Centre Lighting and nearby region from being silted, the Company has been carrying out regular
Students Hostel Lighting. Importantly, these are ‘Green Energy Projects’. environmental protection works for the last 4 to 5 decades and has constructed
SMIORE also proposes to take up, on an experimental basis, solar powered several check dams, gully plugs, drains, toe walls, etc. SMIORE has since long
water pumping stations for Drinking Water Plants in the villages and also initiated steps to re-charge ground water through rain water harvesting
Irrigation for agriculture. These initiatives will go a long way in providing free methods. The water stored in the harvesting pits is being used for applications
and uninterrupted power supply to remote villages, much necessary street such as dust suppression, and greenbelt development.
lighting in villages, power during day time to pump water for drinking and
irrigation of agricultural lands. Indian Council of Forestry Research & Education (ICFRE) Dehradun has

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prepared in 2012 the Supplementary Environment Management Plan (SEMP) Corporate Social Responsibility
or known generally as Reclamation & Rehabilitation Plan (R&R) for SMIORE, Development of the area, maintenance of social and communal harmony,
which the Company is right earnestly and diligently implementing. The total nurturing of cultural heritage, traditions and fine art, and protection of the
budget for the SEMP (R&R) of SMIORE is about ` 71 crore. The quantum of Indian family values, have always been at the heart and core of the ethos and
the R&R related works are estimated to be about 17,000 Metres of Toe Walls, philosophy of SMIORE and its promoters.
13,000 Metres of Retaining Walls, 26500 Metres of Drains, 60 Silt Settling Tanks,
135 Check Dams, 50 Rain Water Harvesting Pits, 215 Gully Plugs, Consolidation The Sandur Manganese & Iron Ores Limited has always been and will continue
and Greening of 150 ha of surface of over burden (Waste) Dumps, and 90 ha to be managed and run with the same ethos of good governance, fair-play and
of Green Belt, Safety Zone and Avenue Plantations. righteousness. The Company’s main accumulation of wealth over the last six
decades of its existence has been “goodwill”. The Company started only as a
In rural India, firewood continues to be the chief fuel for cooking. To provide mining project way back in 1954. Along the way, the Company in its endeavour
residents of the Company’s mining camp colonies alternate fuel for cooking to play its part in industrialization of the region and for better future of its
and save firewood, SMIORE supplies 8 LPG cylinders per year to its employees shareholders and employees, set up a metallurgical industry for production
with 40 to 75% subsidy over the Government subsidized rates. The Company of Pig Iron and Ferroalloys, facilities to produce high tech electronic products
also provides free electricity and hot water (from solar water heaters) to such as Resistor Networks, Copper Clad Laminates, Dosing Pumps, Dot Matrix
resident employees, and has set up Solar Power street lighting system in Printers, Software Development, and Hydel and Thermal Power Plants.
the colony.
With societal needs in mind and as part of its Corporate Social Responsibility,
In his communication dated 18 October 1993 to the Principal Chief Conservator SMIORE has consistently done its bit in the welfare of the area and the
of Forests, while recommending renewal of SMIORE’s lease, the Conservator of surrounding villages. Education and Health are the thrust areas in which SMIORE
Forests, Bellary, wrote: has paid special attention. Some of the noteworthy social service activities of
the Company are as follows:
“As regards specific opinion of the undersigned on the request of the mine
• Support to educational institutions, Primary Schools, High Schools,
owner for reserving forest land, I would like to state that the area has been
Pre–University Colleges and a Polytechnic, which together represent about
inspected by me and seen; and in short, the forests left to their care are quite
5500 students and about 250 teachers
safe and large areas deserve to be kept with them further. Considering the
fact that the Sandur Taluka forests needs to be protected carefully, as several • Scholarships for studies to needy and meritorious students
large number of small lease areas existing in this zone have already made • Free Vocational Training for Better Employability to local boys and girls
adverse impact on Forest wealth, I, in the interest of maintaining ecology in in trades such as Electrical Wiring, TV Repair, Welding, Fitting, Plumbing,
this zone, recommend again for sanction of this large area to the party in the Carpentry, Masonry, Horticulture and Computer Operation
best interest of preserving the forests and fauna.” • Aid to Special Training Centre for rural children’s education and prevention

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 of child labour; cash incentives to such parents to leave their children for for the Company for decades. Children and grandchildren of some of the
study in such schools first employees are now working for the Company. It is a matter that should
• Free mid-day meals for about 1200 school children in neighbouring schools make any Promoter, Entrepreneur or Shareholder proud and give unlimited
satisfaction.
• Dispensaries and hospitals in employee colonies and also almost a
full-fledged hospital in Sandur, with special emphasis on eye care, woman
The secret of continuing loyalty, sincerity and diligence in every employee of the
and child care, and regular specialty treatment camps by expert doctors.
Company, is the persistent concern the Promoters of the Company have shown
Free eye camps 3 to 4 times every year. Financial help and arrangement for
to its employees and the conceptualization and formulation of all the labour
medical care to patients from poor families suffering from major ailments
and social welfare schemes. Late Ruler and Founder Y.R. Ghorpade, and then
• Construction of houses for flood affected victims M.Y. Ghorpade, at the helm of affairs from the very inception of the Company,
• Contributions for development works in Bellary District have unflinchingly striven to give every employee a sense of belonging, security
• De-silting of lakes around the mines and above all, affection. Even when the Hon’ble Supreme Court ordered a
general suspension of mining activity in Karnataka, which resulted in SMIORE’s
• Repair and Construction of roads
operations coming to a complete stand still for 18 months from August 2011
• Support to the Sandur Kushala Kala Kendra (SKKK) for nurturing traditional to February 2013, not a single worker was retrenched or for that matter denied
art and craft and for creation of opportunities for supplemental income to his full salary.
dependents of employees and local artisans, especially tribal and backward
women of the area SMIORE has become known as an enlightened employer and has been
• A beautiful multipurpose hall, Adarsha Community Centre, provided employing thousands of workers since 1954 and even today has about 2000
almost free of charge to employees and local population of Sandur, for employees on its rolls (in fact, about 3000 direct and indirect employees).
marriages and other events SMIORE’s technical manpower could be rated as one of the best and the largest
• Immediate relief to fire accident victims of surrounding villages by way of in the private mining sector in the country.
free cloth, food grains, etc
Besides statutory welfare schemes such as Provident Fund and Gratuity, the
Employee Welfare Company, has several very innovative welfare measures which hinge around the
A fact of historical and noteworthy importance is that during the difficult and basic essentials of every human being. Food, Housing, Clothing, Medical Care
turbulent times SMIORE went through from 1998 to 2007, hardly any employee and Education, have received due priority.
left the Company for “better opportunity”. As part of implementation of the
Rehabilitation Scheme approved by BIFR, the Company conscientiously retained SMIORE has laid special emphasis on maintaining its operations as labour intensive,
only the Mining Lease, and sold everything else only to save the mines and the which is the ethos of India’s original industrialization and development plans;
more than 2000 persons working there. These persons have been working and of course welfare of its employees has always received special attention.

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Some of its employee welfare activities are as follows: • Financial and other help in the event of death in the employees’ family
• Annual cash allowance to all its employees for clothing, ranging from • And the Company’s most important welfare scheme; food security and
` 2,000 to ` 12,500 based on category right to food. A unique and premium welfare scheme, talked about by
many, which by and large is the single biggest reason for a SMIORE job to be
• Housing loan equivalent to 60 months’ salary at 1% interest, returnable
so much sought after and gives the family basic security to live honourably.
over 15 years. As a result, almost all employees of SMIORE have their own
Every employee of the Company, be it a Ore Production Gang Worker, a
houses in Sandur or in their native places
Peon, Clerk, Officer, or the General Manager, is given a Ration Card which
• Supply of 8 LPG cylinders per annum, for cooking, with 40 to 75% subsidy entitles him or her to a package of essential commodities every month,
depending on cadre (higher subsidy for lower cadre) over Government which would generally cater to the food requirement of a family of four-five
subsidized rates for a whole month
• Free electricity and hot water supply arrangement for residents of Mines
Camp Colonies This package of various food items is given to every employee during the third
• Almost free quarters in Mining Camp colonies for more than 1200 employees, week each month, at only about ` 115 per package, which corresponds to prices
in addition to House Rent Allowance ranging from 25% to 85% of basic prevalent in 1972. At today’s cost, (2014) this package of essential commodities
+ DA. Only a nominal rent is charged for houses allotted in the colonies costs about ` 2,600. The difference of ` 2,500 is the subsidy borne by the
Company. Three years ago, the subsidy was about ` 800 per package, whereas
• Entitlement of 20% of basic + DA, towards medical expenses, apart from
presently it is nearly three times. In effect, the subsidy has risen progressively
free medical facilities at AROGYA in Sandur and dispensaries in Mines and
over the last four decades and risen by a significant 2000% compared with
additional generous financial help for specialized medical treatment for
1972 cost. None of the employees would even be aware of the market price of
major ailments
these commodities as they are effectively insulated from inflation. The monthly
• ` 1,000 festival gift to all employees on each occasion of 4 festivals in a cost incurred by the Company towards subsidy on supply of food grains, is
year, Ugadi, Deepavali, Ramzan and Christmas presently about ` 50 lakh (` 6 crore per annum) which is justifiably spent by the
• To employees’ children (limited to two) marriage gift ranging from ` 10,000 Company on this beneficial and popular welfare scheme for its employees, and
to ` 1.00 lakh, based on cadre in essence truly provides Food Security.

• Educational scholarships to children of employees and also other

deserving children from needy families of surrounding villages and Sandur,
to cover entire Government prescribed fees for PUC, Degree studies and
also Engineering and Medicine Courses. Free schooling for employees’
children in Company run schools and also other premium schools and
colleges of Sandur

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Lambani women at Sandur Kushala Kala Kendra

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 Designed by ElementD.com
Regd. Office: Lakshmipur, Sandur-583 119, Bellary District, Karnataka, INDIA
Estd: 1954
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