CHAPTER - VI
F. Sikkim Mining Corporation
Note: SMC vide notification No. 1/22/1/2001 - CAB
dated 21.12.2001, business allocation with respect to SMC has been transferred to the
Department of Development of Northern Eastern Region.
1. Introduction
1.1 The Sikkim Mining Corporation was established by a proclamation
of the then Darbar of Sikkim in February, 1960 as a joint venture having 51% equity from
Government of Sikkim and 49% equity from Government of India. After a gestation period of
about 6 years, production of the complex ore from Bhotang Mine started since 1966-67
onwards. This was the only mine till recently in the country which produced three metals
(copper, lead and zinc) from a polymetallic complex ore. There is also the presence of
appreciable amount of silver and some amount of gold in the ore. As on 1.4.98 the mine is
estimated to have (proved & probable) reserves of about 3.28 lakh tonnes and has
already produced about 4.11 lakh tonnes of ore since its inception. Currently Bhotang mine
is producing about 54 TPD (tonnes per day) of ore and the other exploratory mine called
'Pacheykhani', located about 15 km away from the former in the East Sikkim district, is
also producing about 18 TPD. The cumulative production would be enhanced to 90-100 TPD
after the major repair of the existing Cone Crusher of the Mill plant by the end of the
financial year 1998-99. The copper concentrate produced by the corporation is sold of to
M/s Hindustan Copper Ltd., zinc concentrate to M/s Hindustan Zinc Limited and lead
consentrate is not saleable at present due to high bismuth (0.6 to 0.7%) content which
contains appreciable amount of silver. The performance of the Corporation has never been
good due to various reasons but recent capital re-structuring proposal already approved by
the Board of Directors for enhancing the Share Capital from Rs.6.00 crores to Rs.10.00
crores is expected to result in improvement of its productivity and financial performance
in near future.
Mines
| Location of Mines |
ORE Capacity (TPD) |
| 1. Bhotang Multimetal Mine |
100 TPD (Currently 54 TPD) |
| 2. Pacheykhani Copper Mine (Both
located in East Sikkim) |
20 TPD (Currently 18 TPD) |
2. Physical Performance
2.1 The production of Sikkim Mining Corporation during the year
1997-98 and 1998-99 are given below :
- (in Tonnes)
| Product |
1995-96 |
1996-97 |
1997-98 |
1998-99
- Target
|
1998-99
- Actuals (Prov.)
|
| Ore |
11026 |
9685 |
15698 |
20020 |
18000 |
| Concentrate |
|
|
|
|
|
| 1. Copper |
206 |
321 |
791 |
1020 |
1020 |
| 2. Lead |
499 |
372 |
90 |
100 |
100 |
| 3. Zinc |
359 |
337 |
289 |
20 |
12 |
3. Financial Performance
3.1 Operating Results (Rs. in Lakhs)
| Details |
Actuals for the previous years |
Annual
- Budget
- Estimate
- 1998-99
|
Actual
- (Prov.)
|
| |
95-96 |
96-97 |
97-98 |
|
|
| Income |
56.81 |
89.68 |
105.30 |
155.00 |
160.00 |
| Operating Cost |
81.70 |
97.83 |
107.29 |
141.00 |
137.00 |
| Interest & Transaction Loss |
15.76 |
50.52 |
14.00 |
- |
9.00 |
| Depreciation & Amortisation |
13.97 |
13.37 |
13.00 |
14.00 |
14.00 |
| Net Profit Before Income (Prov.)Tax & Dividend |
(-)54.62 |
(-)72.04 |
(-)28.99 |
- |
- |
4. On-Going Projects
The projects which are in progress at Bhotang Mine include :-
i) Deepening of present shaft from 3rd level to 4th level and
ultimately upto 5th level under capital development along with shaft winder equipment like
extension and conversion of the Air Winder to Electrical system (Approx. cost Rs. 7.00
lakhs)
ii) Owing to high cost of reliable and imported Cone Crusher, the
idea of procuring a new one has been dropped and the old Cone Crusher has been given for
capital repair at a cost of Rs. 11.24 lakhs and is likely to be in operation by the end of
the financial year 1998-99.
iii) Capital mine development in deeper level (below 5th level) and
extension in strike direction towards south, below river Tista for increasing ore reserve
base is in progress. A parallel drive has also been started at 3rd level to enable
exploitation of the ore available at the same level for mineral conservation.
5. Expansion and Diversification
5.1 Expansion
In order to make the Corporation flexible and more viable another
exploratory mine called "Pacheykhani" (located at about 15 km away in same East
Sikkim district) has been started w.e.f. 2nd May, 1997 onwards and is producing about 18
TPD of monometal (copper) ore which is being procesed at Bhotang Mine plant. This mine is
still under capital development and the production capacity is to be enhanced to about 30
TPD.
5.2 New Scheme (Diversification)
The organisation has applied for one Coal lease at Kamling in West
Sikkim district as a part of the diversification programme. In addition to it, the
organisation is likely to apply for another copper deposit (already proved) at
Dikchu/upper Pacheykhani and other valuable minerals of the State.
For better conservation of minerals and enabling higher grades of
concentrates as an end product, the management has planned to set up one Vertical Columner
floatation process after enhancement of Share Capital.
5.3 In order to ensure safe underground working below river Tista as
well as to enhance qualitative production of R.O.M. from Bhotang Mine, a stowing plant
would be installed at a capital cost around Rs. 10.00 lakhs during the financial year for
which necessary action has already been initiated. The system will also contribute towards
environment preservation due to processing of Mill Tailing and sending it back to the
underground mine for back filling at cut and fill method of stoping.
6. Energy Conservation
6.1. The Corporation has installed one low tension (440 V) on line
Voltage Stabilizer/Controller on 16th June, 1998 on capital expenditure of more than Rs.
8.00 lakhs to maintain industrial voltage level of 400+1% against fluctuating supply
voltage of 300 to 460 volts. It is functioning successfully and is not only safe-guarding
the electrical equipment but has also improved the power factor appreciably.
7. Industrial Relations
7.1 Cordial, peaceful and harmonious industrial relationship prevail
between the management and the workers of the Corporation.
8. Prospective plan for women welfare
8.1 For the welfare of women, the Corporation is running a Carpet
Weaving Centre under the guidance and supervision of SMC Employees' Co-operative Society
Ltd. from where many women/girls were imparted training mostly amongst the wives and
dependents of the SMC employees with a view to make them self-sufficient. A number of
women have taken advantage of this scheme and now some of them are doing the job
independently.
9. Welfare of Tribal and Minorities
9.1 Every possible efforts has been made by the Corporation for the
welfare of the tribal and minorities working in the Corporation.
10. Employment of SC/ST/EX-SM/PH/LDP/MinoritiEs as on 31.12.1998.
| Group |
Total No. of employee |
SC |
ST |
EX-SM |
PH |
LDP |
Minorities |
| Executive |
6 |
-2 |
- |
- |
- |
- |
- |
| Non-Executive |
234 |
22 |
62 |
3 |
- |
- |
- |
| Trainees |
- |
- |
- |
- |
- |
- |
- |
| Total |
240 |
22 |
64 |
3 |
- |
- |
- |
|
