Sikkim Mining Corporation

1. Introduction

1.1 The Sikkim Mining Corporation was established by the Proclamation of the then Darbar of Sikkim in February 1960 a joint venture in the share capital ratio of 51% from Govt .of Sikkim and 49% from Govt. of India. After a gestation period of about 6 years, production of the complex ore from Botang mine started since 1966-67 onwards. This was the only mine till recently in the country which produced three metals (Copper, lead & zinc) from one complex ore. There is also presence of appreciable amount of silver and some amount of Gold in the ore, As on 1.4.97 the mine is having recoverable reserve of about 2.44 lakhs tonnes and has already produced about 4.00 lakh tonnes of ore since inception. Currently, Bhotang mine is producing about 45 TPD of ore and the another exploratory mine called Pacheykhani located at about 15 km away from the former in the same East Sikkim district is also producing about 18 TPD. The cumulative production would be enhanced to 90-100 TPD once a secondary cone crusher is procured and installed in the process circuit. The copper concentrate produced is disposed off to M/s Hindustan Copper Ltd., Moubhander, Zinc concentrate to M/s Hindustan Zinc Ltd., Vizag and lead concentrate is not saleable currently due to high Bismuth (0.6 to 0.7%) content which contains appreciable amount of silver. The performance of the Corporation had never been well due to various reasons but recent capital re-structuring works., which are still in progress have resulted in better performance during the current year. Once the earmarked capital re-structuring works are executed the Corporation is bound to perform well including profit earning. All these are feasible only on increasing the present capital share of 6.00 crores to 10.00 crores in the ratio of 51% from Government of Sikkim and 49% from Government of India.

Mines

Location of Mines Ore Capacity (TPD)

(1) Bhotang multimetal mine. ---- 100 TPD (Currently) 45 TPD

(2) Pacheykhani Copper mine ---- 20 TPD (Currently 18 TPD)

Both located in East Sikkim

2. Physical Performance

2.1 The production of Sikkim Mining Corporation during the year 1996-97 and 1997-98 are given below :-

Product	1994-95 Actuals	1995-96 Actuals	1996-97 Actuals	Target For 1997-98	1997-98 Actuals(Prov.)
Ore Concentrates	15114	11026	9685	17020	15698
i) Copper	270	206	321	828	784
ii) Lead	318	499	372	107	90
iii) Zinc	518	359	337	385	290

3. Financial Performance

3.1 Operation Results (Rs. in lakh)

Details	Actual for the Previous year Estimates			Annual Budget 1997-98	Actual (Prov.)
	1994-95	1995-96	1996-97
Income	106.32	56.81	89.68	137.93	105.30
Operating Cost	93.49	81.70	97.83	112.10	107.29
Interest & Transaction loss	15.78	15.76	50.52	4.00	14.00
Depreciation and Amortization	14.19	13.97	13.37	13.00	13.00
Net Profit before Income tax and Dividend	(-)17.14	(-)54.62	(-)72.04	(+) 8.83	(-)28.99

4. Sales performance

5. On-Going Projects

The projects which are in progress at Bhotang mine include

1. Deepening of present shaft from 3rd level to 4th level and ultimately upto 5th level under capital development alongwith shaft winder equipment like extension and conversion of the Air Winder to Electrical system (approx cost. Rs. 7.0 lakhs) and installation of high voltage controller to safe guard against constant low voltage supply between 4.00 p.m. to 10.00 p.m.
2. Procurement and installation of one secondary cone crusher in the process circuit at an approximate cost of Rs. 80.00 lakhs to achieve 90-100 TPD installed capacity.
3. Capital mine development in deeper levels (below 5th level) and extension in strike direction towards south below river Tista for enabling second out -let and increase ore reserve base.

6. Expansion and Diversification

6.1. 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 dist.) have been started w.e.f. 2nd May 1997 onwards and producing about 18 TPD of monometal (copper) ore and processed at Bhotang mine plant only. It is still under capital development and the production capacity to be enhanced to about 30 TPD.

6.2. New scheme (Diversification)

The Organization has applied for one coal lease at Kamling in west Sikkim district as a part of diversification programme and likely to apply for another copper deposit (already proved) at dikchu/upper Pachyakham and other valuable minerals of the State.

To make value addition to the minerals (copper, lead and zinc) the management have earmarked for setting up one ancillary unit in SMC to manufacture copper sulphate, lead chromate, zinc sulphate etc. M/s Hindustan Copper Ltd. have already been approached in this regard for technical suggestions. In this regard M/s Galaxy Pvt. Ltd. have also been approached.

6.3 Expansion programme in terms of re-structuring of the Bhotang mine is in progress and another mine called pacheykhani started recently w.e.f. 2.5.97 onwards. In addition to it an application for coal lease in West Sikkim district have been made. It also intend to mine copper deposit of dikchu and other precious minerals of the state.

7. Energy Conservation

7.1 The Corporation has already earmarked to purchase and install one high tension on line voltage stabilizer / controller to maintain the industrial voltage level of 400 + 1% against fluctuating supply voltage of 300 to 460 volts. This would not only safeguard the electrical equipments but would also consume less energy thereby improving power factor appreciably. This would be installed within first quarter of 1998-99.

8. Pollution Control and Environment Management Efforts

8.1 All the waste obtained from the plant are diverted inside the mine for back filling. The water from the head stream and down stream are regularly tested for any harmful element that may be present.

8.2 All efforts are made to provide support with concrete or steel props inside mine instead of timber. Plantation of about 150 trees on the surface are in progress.

9. Salient aspects of the work being done by advisory boards councils

9.1 85th meeting of board of Director’s held recently on 16.12.97 and discussed various re-structuring and diversification programme earmarked.

10. Research and Development Activities

10.1 Till now only three concentrates of copper, lead and zinc are being produced. Now attempts are being made to obtain by-products like lead chloride, lead chromite etc. with the help of Research and Development division of Hindustan Copper Limited & other private parties.

10.2 For supporting works inside the mine, ready made concrete pillar or steel props are being tried to substitute timber. Instruments to observe the rock movements have already been installed and are regularly monitored in consultation with IBM. Shaft sinking works to operate the hoist from 3rd level to 4th level inside the mine are nearly completed and about 300 mtrs. of development works inside the mine will be completed during 1997-98. Safety equipments for hoist operation system are procured and conversion of manwinder from pneumatic to electric system shall be completed during 1998-99.

11. Industrial relations

11.1 Cordial, peaceful and harmonious industrial relations prevail between the Management and the workers of the Corporation. So far there has not been any strike and the employees and worker are quite satisfied and well secured.

12. Perspective plan for women welfare

12.1 For the welfare of the women, the corporation has started a carpet weaving centre under the Sikkim Mining Corporation Employees consumers co-operative society Ltd., from where many women / young girls have taken are taking the advantage out of this programme to become self sufficient.

13. Welfare of Tribal and Minorities

13.1 No such programme exists in the corporation at present, but as far as possible every effort has been made for the welfare of the tribals and minorities.

14. Employment in the company of SC/ST/EX-SM/PH/ LDP /Minorities as on 30.11.1997.