PRE BID CLARIFICATION/CORRIGENDUM NO. 1

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PRE BID CLARIFICATION/CORRIGENDUM NO. 1 TENDER NO: KIOCL/BD/DIOM/ MP/666 DATED 24.03.2017 SUBJECT: ENGAGEMENT OF CONSULTANT FOR PREPARATION OF MINING PLAN INCLUDING PROGRESSIVE MINE CLOSURE PLAN FOR IRON ORE AND MANGANESE ORE AND OBTAINING ITS APPROVAL FROM INDIAN BUREAU OF MINES Sl Nos. Clause No. Clause 1. 3.3 The tentative target production of iron ore from mine is 2.5 mtpa and expandable to 4 mtpa. The production quantity of Manganese ore will be decided on discussion with successful bidder Suggestion/clarification sought by prospective bidders As per point no. 3.3, the tentative target production of iron ore from mine is 2.5 mtpa and expandable to 4 mtpa. The production quantity of Manganese ore will be decided on discussion with successful bidder. However, IBM needs a letter from GoK, regarding proposed annual production quantity for this mine for Mining Plan submission. Hence, we request you to get a letter from GoK regarding this. Also, please note that in order to fix annual production quantity for this mine, the GoK may go for R&R plan prepared by ICFRE and at that time ICFRE requires basic data along with many plans (about 13) to be prepared / supplied by the client (KIOCL). Please clarify whether this work also is in the scope of this tender. Clarification/corrigendum KIOCL at appropriate time will approach Govt. of Karnataka for annual production quantity for this mine. Preparation of R&R plan for ICFRE is not envisaged in this NIT. NIT conditions will prevail

2. 3.5 Consultant shall carry out Topographical Contour Survey work of the entire area to generate contour lines with intervals as per the IBM guidelines alongwith indication of all permanent surface features for preparation of Surface Plan. 3. 3.6 Consultant shall carry out Geological mapping of area for preparation of Geological report. Consultant is responsible to carry out all site jobs / works related to this activity. 4. 3.7 Mining plan is to be prepared by utilizing the geological report having exploratory drilling data for 11 holes and accordingly obtaining its approval from IBM, with a provision for submission of revised mining plan. 5. 3.11 Consultant shall prepare Pre Feasibility Report of the area as per the prescribed format (IBM guideline and Part V of the Schedule of Minerals (Evidence of Mineral Contents) Rules 2015. The pre feasibility report shall also include study on adjoining area for setting up of Beneficiation plant, pelletization plant, tailing disposal pond, Point 3.5 states topographical survey, please clarify the mode of survey and contour interval. The clause 3.5 has been modified as under: 3.5 Consultant shall carry out Topographical Contour Survey work by Total Station of the entire area to generate contour lines with 5 m intervals as per the MCR 2016/MCDR,2017/IBM guidelines alongwith indication of all permanent surface features for preparation of Surface Plan/ any other plan. - The clause 3.6 has been modified as under:- 3.6 Consultant shall carry out Geological mapping of area for preparation of Geological report including collection of minimum 100 numbers random surface samples spread over the entire area and sample analysis through NABL accredited lab for Fe. Consultant is responsible to carry out all site jobs / works related to this activity. As per Point 3.7, Mining plan is to be prepared by utilizing the geological report (GSI) having exploratory drilling data for 11 holes. Please clarify that the said bore hole data conforms with the UNFC guidelines regarding reserves / resources estimation. As this is the requirement of IBM. Point 3.11: Prefeasibility report: As per IBM guidelines only facilities within mining lease area are to be depicted/discussed in Mining Plan Document. Hence outside facilities will be discussed in Mining Plan / Feasibility report in indicative manner only. Consultant has to prepare mining plan by utilizing the geological report having exploratory drilling data for 11 holes and accordingly obtaining its approval from IBM, with a provision for submission of revised mining plan. The clause 3.11 has been modified as under: 3.11 Consultant shall prepare Pre Feasibility Report of the area as per the prescribed format (IBM guideline and Part V of the Schedule of Minerals (Evidence of Mineral Contents) Rules 2015. The pre feasibility report shall also include study on adjoining area for setting up of Beneficiation plant, pelletization plant,

railway siding, power, water and other facilities in the mining lease or outside mining lease area and incorporate the same in mining plan 6. 3.13 Digitization of all the maps and text as required by Indian Bureau of Mines. 7. 4.1 (ii) ii. Experience of having successfully completed similar works during last 07 years ending last day of month previous to the one in which bid is invited should be either of the following: - a. Three similar completed works costing not less than Rs. 20,00,000/- (Rs. Twenty Lakhs only). or b. Two similar completed works costing not less than Rs. 25,00,000/- (Rs. Twenty five Lakhs only). or c. One similar completed work Point 3.13: Digitisation of maps will be carried out, however, as the area is big (470 ha), the printing of maps cannot be done in 1:2000 scale as per IBM requirement. However, you have to request and get permission from IBM, Nagpur for scale reduction of maps to facilitate printing in a single sheet. Seeking exemption from this condition. tailing disposal pond, railway siding, power, water and other facilities in the mining lease or outside mining lease area and incorporate the same in mining plan. Pre feasibility report shall also contain beneficiation process details including schematic diagram/flow chart required for scoping the project and Terms of Reference (TOR) from MoEF&CC for environment clearance of project and Consultant bear no responsibility for getting TOR with this pre feasibility report. The matter will be taken up with IBM at appropriate time. However, NIT Conditions will prevail. Pre Qualification criteria as mentioned in the NIT have to be fulfilled by bidder and required to submit all documents as mentioned in NIT to satisfy PQ criteria. NIT condition will prevail.

costing not less than Rs. 40,00,000/- (Rs. Forty Lakhs only). 8. 5.1 (a) Completion of topographical contour survey and submission of contour KIOCL for scrutiny within 30 days of issue of work order. 9. 6 a) Submission of 05 copies of Topographical counter map to KIOCL along with soft copy. b) Submission of 05 copies of draft Mining Plan including progressive Mine Closure Plan along with soft copy of same to KIOCL for scrutiny. Consultant shall also submit 05 copies of pre feasibility report separately as per scope of work along with soft copy. c) Submission of requisite copies of initial Mining Plan Closure Plan to Indian Bureau of Mines. The consultant shall also submit 05 copies of initial Mining Plan including progressive Mine Closure Plan and final pre feasibility report to KIOCL along with soft copy d) Submission of requisite copies of final Mining Plan We request that the Deliverables may be modified as below: a) Submission of 05 copies of Topographical counter map to KIOCL along with soft copy. b) Submission of 02 copies of draft Mining Plan Closure Plan along with soft copy of same to KIOCL for scrutiny. Consultant shall also submit 02 copies of pre feasibility report separately as per scope of work along with soft copy. c) Submission of requisite copies of progressive Mine Closure Plan to Indian Bureau of Mines. The consultant shall also submit 02 copies of initial Mining Plan Closure Plan and final pre feasibility report to KIOCL along with soft copy of same. d) Submission of requisite copies of final Mining Plan Closure Plan to Indian Bureau of Mines after incorporating scrutiny points on initial The clause 5.1 (a) has been modified as under: Completion of topographical contour survey and geological mapping work and submission of topographical contour survey map and geological map & report to KIOCL for scrutiny within 30 days of issue of work order. This clause is modified as under:- 6. DELIVERABLES: a) Submission of 05 copies of Topographical contour map and Geological mapping with report to KIOCL along with soft copy. b) Submission of 02 copies of draft Mining Plan including progressive Mine Closure Plan along with soft copy of same to KIOCL for scrutiny. Consultant shall also submit 05 copies of pre feasibility report separately as per scope of work along with soft copy. c) Submission of requisite copies of progressive Mine Closure Plan to Indian Bureau of Mines. The consultant shall also submit 01 copy of progressive Mine Closure Plan and 05 copies of final pre feasibility report to KIOCL along with soft copy d) Submission of requisite copies of final Mining Plan including progressive Mine Closure Plan to

10. New Inserti on 11. New Inserti on Closure Plan to Indian Bureau of Mines after incorporating scrutiny points on initial Mining Plan Closure Plan. The consultant shall also submit 10 copies to KIOCL along with soft copy Mining Plan Closure Plan. The consultant shall also submit 2 copies to KIOCL along with soft copy Indian Bureau of Mines after incorporating scrutiny points on progressive Mine Closure Plan. The consultant shall submit 01 copy to KIOCL along with soft copy The consultant shall submit 10 colored copies of approved mining plan and scanned copy of same to KIOCL. 3.0 Scope of Work A new clause no. 3.19 is inserted after 3.18, which is as under 3.19 Consultant shall obtain requisite permission from forest authorities for conducting Topographic Contour Survey and Geological mapping works. 26.0 Obligation of KIOCL A new clause no. 26.4 is inserted after 26.3, which is as under 26.4 KIOCL shall provide reference letter authorizing the successful bidders for obtaining permissions from concerned authorities for conducting Topographic Contour Survey and Geological mapping works. (K V Bhaskara Reddy) Jt. General Manager (BPD) Mobile: +919611127688 Email: bnbd@kioclltd.com