Professional Documents
Culture Documents
CHAPTER 1
INTRODUCTION
Each and every organization has its own importance in the economic wealth of the
nation. Different organization meets different needs of people by offering different
products and services. Due to globalization, the world has changed into a global
village. In this fast changing business scenario, it is imperative for every entrepreneur
to have a vivid understanding of the functional application of the new age business. As
a part of the academic curriculum each student has to undertake an organizational
study to get a practical exposure. This study is conducted at INDIAN RARE EARTHS
LIMITED, CHAVARA.
IREL, CHAVARA is located 10km north of Kollam, 85kms from
Thiruvananthapuram, capital of Kerala and 135kms by road from Kochi is perhaps
blessed with the best mineral sand deposit of the country. The plant operates on a
mining area containing as high as 40% heavy minerals and extending over a length of
22kms in the belt of Neendakara and Kayamkulam. The deposit is quite rich with
respect to Ilmenite, Rutile and Zircon. And the mineral Ilmenite happens to be of
weathered variety analyzing 60% Titanium Dioxide (TiO2). The present annual
production capacity of Chavara unit engaged in dry as well as wet (dredging/ up
gradation) mining and mineral separation stands at 2,00,000 tone of Ilmenite, 1,14,500
tones of Rutile, 11,750 tones of Zircon and 10,000 tones of Sillimanite. In addition to
that, the plant has facilities for annual production of ground Zircon called Zirflour and
Micozir of the order of 6000 tones and 300 tones respectively.
IREL Chavara is one of the oldest and leading public sector undertakings under the
Department of Atomic Energy (DAE). It is an ISO 9001:2000, ISO 14001:2000; OHSAS
18000 certified company supplies beach sand minerals to the foreign and domestic
market. It caters the requirements of developed countries like U.S.A, U.K, Germany,
Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile,
Sillimanite, Zircon and Zirflour
IRE in Chavara is known for supplying of Ilmenite (TiO2 bearing mineral) to the TiO2
industry. IREL Chavara is located 10 km north of Kollam, 85 km from
Thiruvananthapuram and 135 km by road Kochi is perhaps blessed with the mineral sand
deposit of the country. The plant operates on a mining area containing as high as 40%
heavy minerals and extending over a length of 22km in the belt of Neendakara and
Kayamkulam. The deposit is quite rich with Ilmenite, Rutile and Zircon and mineral
Ilmenite happens to be of weathered variety analyzing 60% TiO2. The present annual
production capacity of Chavara unit engaged in dry as well as wet (dredging/up
gradation) mining and mineral separation stands at 200000t of Ilmenite, 114500t of
Rutile,1175t of Zircon, and 10000t of Sillimanite. In addition the plant has facilities for
annual production of ground Zircon called Zirflour (-45 micron) and Microzir (1-
3micron) of the order of 6000t and 500t respectively.
IREL Chavara is one of the oldest and leading public sector undertakings under the
control of Department of Atomic Energy. It is an ISO 9001:2000, ISO14001:2004, and
OHSAS18001:1999 certified company supplies beach sand minerals to the foreign and
domestic customers. The major minerals products of IREL are Ilmenite, Rutile,
Sillimanite, Zircon and Zirflour.
CHAPTER 2
INDUSTRY PROFILE
Rare earths elements, series of chemical elements of the periodic table. The Rare elements
include the elements with atomic numbers 57 through 71. In the early years these
elements were considered as rare elements and so they are called as rare earth metals.
Later many elements in this group were found splendid but their name remained
unchanged. The primary source of rare earth elements is greenish yellow coloured
mineral sand, which is Monazite .Its availability in nature is confined to certain beaches
and rock found in certain countries. The beaches containing the monazite are found mixed
with other minerals too. Most of these are ores for valuable metals. An ore is a mineral
from which metal can be separated economically. These ores are Ilmenite, Rutile, and
Zircon. Ilmenite and Rutile forms the ore for Titanium, Zircon for Zirconium; even
though Aluminium bearing metal Garnet and Sillimanite are also found along with these
beach sand minerals. But they are not commercially exploited for Aluminium production
due to economic reasons. However Garnet and Sillimanite, in their natural form, are
commercially significant. Ilmenite which is black in colour constitutes a major chunk of
these minerals (60%) presence of these minerals makes the beaches appear black. These
minerals are commercially known as beach sand minerals or heavy minerals.
The origin of beach sand is from rocks, which are rich with heavy minerals. This sand
particle reaches sea through rivers. The sea level is not remaining constant. It is regarded
that the sea level, it is now really 100 meters above what we had seen 20,000 years ago.
This white sand seen at the beach area contains he main constitute as Quartz. This is
lighter than black sand .As a result of movements of the sea this sand will erode away and
black sand get deposited. The black sand thus deposited 100 years ago is mined and
processed.
In the year 1789 Fr. William George (1761-1817) discovered Ilmenite at knower in
England and started that this black sand contains some important metal. But he failed to
discover which metal it was. After several time, in the year1875 the Hungarian scientist
Martin Heen Witch Klapporth found the same metal contents in the Rutile minerals about
which Fr.William George mentioned. After a series o investigations are found those
metals content as Titanium after ‘Titan’ of Greek mythology.
Technology developed over the years has made the beach sand. Minerals are utilized in a
variety of industrial and domestic applications. Monazite was mainly used in the gas
mantle industry. After the advent of electricity its demand decreased in the gas mantle
industry, Pigment industry, welding electrode industry, Sillimanite is used in high
temperature refractory industry, ceramic industry etc Zircon is used in foundries,
ceramics, and refractories and in the manufacture of Zirconium chemicals, metals and
alloys. Zirflour used in foundries for high temperature castings. Garnet is used in the
manufacture of abrasive polishing glass, TV tubes for sand lasting and for water filtration.
The beach sand mining and processing industry has vast future because of their demand in
nuclear industry too. In the present scenario of booming economy in India and China
there is huge demand for the beach sand minerals, Ilmenite in particular.
The current world production capacity of Ilmenite and other titanium feed stocks for
production of titanium oxide pigment titanium metal, welding electrodes etc is around 70
lakhs million tons per annum (tpa). Approximately half of this is from beach sands and
the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the
limited supply of natural Rutile, its share of consumption in pigment production is rather
small and 55% of its total availability of about 5lakh (tpa) is used in the non pigment
applications predominantly in the production of welding rod and titanium metal. The
present production capacity of pigment in the world just above 40 lakhs tpa North
America is the largest producer with 37% of the global capacity is the second largest
producer and Asia-Pacific region with 21% capacity, is the third. The balance 10%is
distributed among the rest of the world.
India has the largest resources base of 278 million tones for Ilmenite. This is the single
largest and Ilmenite .This is the single largest and least exploited mineral deposit in the
world. However 10% of this is only mineable. Resources base in India for other minerals
are:
In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of
global Ilmenite production) and the production of Ilmenite and Rutile during 2004-2005
was over 3-5 lakh tonnes and 1300 tonnes respectively.
Presently there are few private organizations engaged in the mining and mineral
separation of beach sand minerals. The Indian players at present are Transworld garnet
private limited, VV minerals, Earth minerals private limited, Tutucorin.
It can be seen that value will be increased about 100 time through value addition natural
Ilmenite
Key success factor for the beach sand mineral industry are:
Increase the Ilmenite capacity to reach economic scale of production.
Value addition projects in minerals and rare earths compounds.
Initiate action to develop new mining areas.
Forward integrate through stake in world leader in pigment industry like Tinfoss,
DuPont or selling up a pigment plant.
Explore other mining options in neighbouring countries.
Social and political Environment
Govt; understanding is considered necessary to safe guard the integrity and welfare of the
community as a whole, to enable to the economy, to plan for the overall rapid progress
and prosperity and to undertake and execute schemes and projects a vital to the need of
the nations.
Till 1998, IREL was enjoying monopoly in the beach sand mineral market but the Govt;
passed a mineral policy in 1998 starting that any private parties can be enter into mining
area. In the states of Tamil Nadu and Andhra Pradesh, private players’ have already
entered into beach sand industry. How ever in Kerala, private participation was much
encouraged with effect from 1998, after liberalizing mining policy, private participation is
increasing year by year. How ever, with effect from January 2007 all the beach sand
minerals expect monazite have been taken out of the ‘prescribed mineral’ category of
Atomic Energy Rules and the industrial licensing authority was shifted to Ministry of
mines from Atomic Energy Regulatory Board(AERB). This has eased the entrepreneurs
for obtaining industrial license to start their business in beach sand mineral industry.
WORLD SCENARIO
China, France, India, and Japan were major import sources of rare-earth chlorides,
nitrates, and other concentrates and compounds. Thorium-free intermediate compounds as
refinery feed were still in demand as industrial consumers expressed concerns with the
potential liabilities of radioactive thorium, the costs of complying with environmental
monitoring and regulations, and costs at approved waste disposal sites. In 2001, demand
for rare earths decreased in the United States, and imports decreased by 5.9%. In 2001,
estimated world production of rare earths increased to 119,000 t of REOs. Production of
monazite concentrate was estimated at 5,700 t. World reserves of rare earths were
estimated by the USGS to be 100 million metric tons (Mt) of contained REOs in 2001.
China, with 43%, had the largest share of those world reserves. China’s reserves are
primarily contained in bastnäsite-bearing carbonates. Australia’s reserves include rare
earths contained in monazite owing to its widespread availability as a very low cost by
product of heavy-mineral sands processing. Australia’s other major reserve of rare earths
is in the Mount Weld carbonate.
concentrator near Eneabba, Western Australia. Other mining operations were the South
Mine near Eneabba and the Yoganup, the Yoganup Extended, and the Busselton Mines in
the southwestern region. Iluka’s two east coast mines, in which it has a 48.9% interest,
were operated by CRL on North Stradbroke Island, Queensland. Iluka upgraded the
heavy-mineral sand resources by 28% at three of its Murray Basin tenements in
northwestern Victoria. The deposits included the Boulka in Ouyen, the Snapper in
Pooncarrie about 120 kilometers (km) north of Mildura, and the Dispersion, about 70 km
east of Mildura. Iluka reported grades of greater than 22% heavy minerals with mineral
zones containing up to 27% rutile and 15% zircon at Dispersion (Iluka Resources Ltd.,
2002b). BeMaX Resources NL and Probo Mining Pty. Ltd. announced they would begin
development of their joint venture Ginkgo Mineral Sands project (Ginkgo) in the Murray
Basin near Pooncarie, New South Wales. Reserves are 184 Mt of ore grading 3.2% heavy
minerals. Production from the Ginkgo deposit was expected to commence in late 2003
with shipments commencing in early 2004 (BeMaX Resources NL, 2002; Mineral Sands
Report, 2002a). BeMaX reported inferred resources at its joint-venture Snapper deposit in
the northern Murray Basin, New South Wales, at 104 Mt grading 4.8% heavy minerals.
The BIP Joint Venture between BeMaX (75%) and Probo Mining (25%) controls the
Snapper and the Ginkgo heavy-mineral deposits (Mineral Sands Report, 2001f). The
Snapper deposit is located 10 km southwest of the Ginkgo deposit. The Ginkgo deposit
has a resource of 252 Mt grading 2.8% heavy minerals (BeMaX Resources NL, 2001§).
Exploration Company Metal Sands Pty. Ltd. released the results of its drilling in
southwestern Western Australia. The resource had an estimated 3.37 Mt of ore grading
2.38% ilmenite, including 1.85 Mt grading 0.08% zircon (Metal Sands Pty. Ltd., 2002).
In April, Iluka announced that it had discovered additional heavy-mineral sands resources
in Western Australia. Measured, indicated, and inferred resources were increased to 88
Mt of heavy minerals. This resource is split between Western Australia’s southwest
region, which includes Capel at 48 Mt, and the midwest region, which includes Eneabba
at 40 Mt. Iluka’s heavy-mineral sand resources in its rest-of-world category, including
other parts of Australia, in decreasing order, were Sri Lanka, 119 Mt; the United States,
25 Mt; North Stradbroke Island, Queensland, Australia, 15 Mt; and Murray Basin,
Victoria, Australia, 9 Mt (Mineral Sands Report, 2001c). Australian Zirconia Ltd. (a
wholly owned subsidiary of Alkane Exploration Ltd.) announced that it is making minor
adjustments to its pilot plant to produce a marketable zirconium oxide and hafnium oxide
product from its Dubbo hard-rock rare earth-yttrium-zirconium-hafnium-niobium-
tantalum bearing deposit in New South Wales. Another production run of the plant was
planned for December to produce a first run niobiumtantalum product (Alkane
Exploration Ltd., 2001). The multimineral deposit is located on the Toongi alkaline
intrusive that contains hafnium, lanthanides, niobium, tantalum, yttrium, and zirconium in
the igneous rock trachyte. Measured resources at the Dubbo deposit are 42 Mt grading
1.91% zirconium oxide, 0.04% hafnium oxide, 0.449% niobium oxide, 0.027% tantalum
oxide, 0.138% yttrium oxide, and 0.713% REO (Australian Zirconia Ltd., 2000).
Basin Minerals Ltd. announced it had acquired a loan to proceed with a final feasibility
study of the Douglas heavymineral sands deposit in the Murray Basin in western Victoria.
Basin Minerals’ Douglas deposit covers an area of 5,860 square kilometers and has a
resource of 22.4 Mt of heavy minerals. The area contains the Acapulco, Bondi, Bondi
East, and Echo strandline deposits containing 11.3 Mt of ilmenite (including leucoxene),
1.26 Mt of rutile, and 1.62 Mt of zircon. Basin Minerals reported it had filed an
environmental effects statement with the Victoria government (Mineral Sands Report,
2002b). Basin Minerals has estimated an inferred resource for the Culgoa deposit in the
Murray Basin to be 11.8 Mt at 16.8% heavy minerals with a cutoff grade of 3% heavy
minerals. Culgoa has 1.985 Mt of heavy-mineral concentrate with a waste-to-ore ratio of
2:1. The high-grade mineralization is between 60 and 140 meters (m) wide and averages 4
m in thickness over a strike of 17.6 km. Culgoa’s heavy-mineral content averages 79%
valuable heavy minerals and 21% gangue (TZ Minerals International, [undated]§).
Mineral Deposits Limited (MDL) announced it had received approval to proceed with an
extension of its dredging at Fullerton, New South Wales. The 14-km extension should
extend the mine life by about 10 years at present mining rates. Part of the extension
extends onto aboriginal lands, for which MDL has obtained leases from the Worimi Land
Council (Mineral Sands Report, 2001d). Iluka purchased a 4.8% share of Basin Minerals,
which has several heavy mineral sands holdings in the Murray Basin. Basin Minerals
properties included the Douglas project with reserves of 35.9 Mt of ore grading 10.3%
heavy minerals (Mineral Sands Report, 2001b). Iluka announced a takeover bid for its
43%-owned subsidiary CRL. Through its subsidiary Iluka Corp. Ltd., Iluka Resources
offered $A1.00 per share for all the outstanding stock, a 21% premium to the stock price
at the time of offer (Mineral Sands Report, 2001a). Sons of Gwalia (SOG) increased its
share of BeMaX to 19.9%. SOG held at 16.82% equity in BeMaX prior to the sale
of 5.1 million shares. Imperial One Ltd. (IOL), the largest shareholder, increased its share
of BeMaX to 24.36%. IOL was BeMaX’s original joint-venture partner when the
exploration company started (Mineral Sands Report, 2001e).
were distributed in deposits primarily in the States of Rio de Janeiro (26,730 t), Espírito
Santo (4,136 t), and Bahia (10,186 t). The main placer reserves were in the States of
Minas Gerais (24,396 t), Espírito Santo (11,372 t), and Bahia (3,481 t) (Fabricio da
Silva, 2001, p. 93-94).
Estonia.—AS Silmet (a subsidiary of Silmet Group) separated rare earths at its plant in
Sillamäe. Located on the northeastern coast of Estonia on the Gulf of Finland, the plant
has capacity of 3,000 metric tons per year (t/yr) of rare earth products. Rare-earth material
for the Sillamäe plant originates as loparite concentrates from Russia. Preliminary
processing of the loparite ore is done in Solikamsk, Russia, to produce intermediate rare-
earth concentrates. These concentrates are shipped for use as feed material for the
Sillamäe rare-earth separation plant. The majority of production is exported to Japan;
however, exports to the United States have been increasing (Baltic Review, [undated]§).
The Sillamäe radioactive tailings pond, an environmental problem from the Soviet era
(before 1991), has been undergoing remediation since 1999. Under direction of the
private-public environmental company Ökosil, created by a cooperative venture between
the Government of Estonia and Silmet Group, the cleanup of the tailings pond is planned
for completion in 2006.
Japan.—Japan refined 5,104 t of rare earths in 2001, a decrease from the 5,625 t
produced in 2000. The rare earths were produced from imported ores and intermediate
raw materials (Roskill’s Letter from Japan, 2002b). Inventories of rare earths increased to
701 t, up from the previous year’s level of 567 t. Imports of rare earths during the year
were 19,736 t, a decrease from the 26,928 t imported in 2000. The value of imports
decreased to ¥18,600 million in 2001 from ¥23,843 million in 2000 (Roskill’s Letter from
Japan, 2002d). Japanese rare-earth imports declined in all product categories. Imports
from the United States, however, were 664 t, an increase from the 530 t imported in 2000.
Estimated production of Japanese bonded neodymium-ironboron magnets in 2001 was
591 t, a decrease from the 700 t produced in 2000 (Roskill’s Letter from Japan, 2002c).
After a decade of double-digit growth, the decrease in neodymium-ironboron magnet
production is the second decline in 2 years. Japanese shipments of rare-earth-containing
Ni-MH rechargeable batteries decreased by 36% in 2001 to 650 million units (Roskill’s
Letter from Japan, 2002a). Ni-MH shipments were 653.8 million units in 2001, a decrease
from the 1,015.3 million units shipped in 2000. The lower shipments were the result of
decreased demand for consumer products that use Ni- MH batteries, including cellular
phones, laptop computers, PDA’s, and portable tools. Japanese imports of rare earths
from China were as follows: cerium compounds, 3,474 t; rare-earth compounds, 3,380 t;
rare-earth metals, 3,213 t; cerium oxide, 3,212 t; lanthanum oxide, 1,283 t; yttrium oxide,
854 t; and ferrocerium, 45 t (Roskill’s Letter from Japan, 2002d). Total imports in 2001
were as follows: rare-earth compounds, 5,361 t; other cerium compounds, 4,434 t; cerium
oxide, 3,832 t; rare-earth metals, 3,346 t; lanthanum oxide, 1,498 t; yttrium oxide, 881 t;
and ferrocerium, 384 t (Roskill’s Letter from Japan, 2002d). No rare-earth chlorides were
imported in 2001 (Roskill’s Letter from Japan, 2002e). China continued as the leading
source of rare-earth imports for Japan with 12,909 t in 2001, a substantial decrease from
the 22,431 t, imported in 2000.
Kenya.—Tiomin Resources Inc. explored four heavy-mineral sands deposits in the coastal
region between Mambrui and Shimoni. The deposits from north to south are the
Mambrui, Kilifi, Vipingo, and Kwale. Located 6 to 12 km inland from the coast, the
deposits are in the Magarini Formation of Pliocene age. The Mambrui has a resource of
700 Mt grading 3.7% heavy minerals. The Kilifi dunal system is believed to be aeolian in
origin. The Kwale deposit is the most advanced of Tiomin’s properties, although it is the
smallest of the group. The deposit consists of two large dunes located 10 km from the
coast and only 65 km from the city of Mombasa. Kwale’s resources are 200 Mt of heavy-
mineral sands containing 3.8 Mt of ilmenite, 1.1 Mt of rutile, 0.6 Mt of zircon, and lesser
amounts of monazite (Tiomin Resources Inc.).
Madagascar.—Rio Tinto Iron and Titanium Inc. (RIT) announced that its three deposits
near Fort Dauphin graded 4.5% to 5.5% heavy minerals. The heavy-mineral suite
reportedly is ilmenite-rich with a 75% to 80% content but with a correspondingly small
zircon and rutile content (Mineral Sands Report, 2001h). A feasibility study on mining
heavy-mineral sands near Tolagnaro (Fort Dauphin) in southeastern Madagascar was
started by QIT Madagascar Minerals S.A. (QMM), a Malagasy company owned 80% by
RIT and 20% by the Malagasy Government.
Russian demand). LMC ships loparite concentrate for further processing to Solikamsk and
then on for further refining and separation to Estonia, Kazakhstan, and Kyrgyzstan
(Russian Ministry of Economic Development and Trade, State Investment Agency.
CHAPTER 3
On August 18, 1950, Indian Rare Earths Limited (IREL) was incorporated as a private
limited company -jointly owned by the Government of India and Government of
Travancore, Cochin with the primary intention of taking up commercial scale processing
of monazite sand at its first unit namely Rare Earths Division (RED), Aluva, and Kerala
for the recovery of thorium.
After becoming a full fledged Central Government Undertaking in 1963 under the
administrative control of Department of Atomic Energy (DAE), IREL took over a number
of private companies engaged in mining and separation of beach sand minerals in
southern part of the country and established two more Divisions one at Chavara, Kerala
and the other at Manavalakurichi(MK), Tamil Nadu.
After a gap of about 20 years, IREL commissioned its largest Division called Orissa Sand
Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with
Corporate Office in Mumbai and produces/sells six heavy minerals namely Ilmenite,
Rutile, zircon, monazite, Sillimanite and garnet as well as various value added products.
IREL is making profit for the last 6 years with its sales turnover reaching a peak
exceeding Rs. 2600 million in 2000-01, with export component of above Rs. 1000
million.
Chavara plant is engaged in the processing of beach sand deposits available on the coastal
belt of Neendakara- Kayamkulam.
BRIEF HISTORY
IREL’s history should not be narrated without mentioning the name of German Chemist
Mr. Her Schomberg who has realized that the shining yellowish- brown sand particles
sticking to coir, a coconut fiber shipped from India (1909), contained Monazite.
1948 The Government of India set up the Atomic Energy Commission under the
Chairman ship of Dr. Homi Bhabha. The export of Monazite was stopped and the
possibility of setting up a facility to process the beach sand mineral for the production of
Rare Earths was examined.
1950 Indian Rare Earth Limited was incorporated in Bombay.
1951 IREL became a full fledged Central Government undertaking under Department of
Atomic Energy and commenced construction of its Rare Earths plant at Udyogamandl in
Kerala.
1952 Rare Earth was dedicated to the nation on December 24, by the late Prime Minister,
Pandit Jawaharlal Nehru.
1955 Opening of Thorium factory off Bombay.
1965 Opening of Minerals Division at Quilon in Kerala State with manufacturing
facilities at Chavara in Kerala and at Manavalakurichi at Tamil Nadu and a giant mineral
sand separation and synthetic Rutile plant at Chatrapur in Orissa (1986) OSCOM
Products
IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon,
Sillimanite, and Ilmenite. The product range includes value added products like Zirflor
and Microzir.
Ilmenite 200000t
Rutile 1145000t
Zircon 1175t
Sillmanite 10000t
Zirflour 6000t
Microzir 500t
Product Range
Product Specification Specific Bulk Density Major application
gravity Kg/M3
Ilmenite ‘Q’ TiO2-58% 4.45-4.54 2600-2630 TiO2pigment
Grade industry, Titanium metal
Rutile TiO2-95% 4.18-4.24 2630-2650 Used as flux in the
‘Q’ Grade welding electrode
industry
Sillimanite Ai2O3-58% 3.20-3.25 1950-2050 In the manufacturing of
Q’ Grade refractory bricks castables,
cordierites
Zirflour ZrO2-64% - 1800-1850 In refractory and foundry
(300/200mes coatings. Also as opacifier
h ASTM) in ceramic industry
Microzir-1 ZrO2-63.5% -` - In ceramic glazes, optical
9d50=`1.2mi glass, heat resistant
cron) porcelain, refractories,
plastics, rubber etc
Board of management
IREL shares are wholly owned by Govt; of India. The board of management consists of
seven directors under the chairman ship of Mr. Siva Subramanian appointed by Govt; of
India. There are three fulltime directors and four part time directors who are nominated by
DAE and state Governments in addition, nominee from the president of India also
participate in Board meetings. Approximately 2750 people are employed by IREL in all
units and they constitute one of its greatest resource.
VISION
MISSION
• To harness beach sands in an environmentally and socially
responsible manner for efficiently producing minerals and their traditional and
innovative value-added products of world-class quality, that are used to make
increasingly superior / novel products required by customers.
• To play a dominant role in developing domestic rare earths
market by producing and / or marketing the quality value-added products to
realize maximum potential of rare earths in a range of applications.
• To build a professional, creative and committed workforce
and nurture an environment that fosters learning, sharing and development.
IREL has fairly good record in its performance during the past decade. From 1997-1998
onwards all out team effort was taken to achieve name plate capacity for the mining and
mineral separation plants in all the three locations, Total sales turnover, share of export
and profit after tax started improved by leaps and bounds and the company recorded
increasing profit since then. In addition to production and financial performance, IREL
has excelled in the areas of marketing, safety and human resource management. In
recognition of the company’s efforts, SCOPE awarded prestigious Silver Trophy of
‘SCOPE’ award for excellence and outstanding contribution to the Public Sector
Management – Special turnaround Category for the year 1999-2000. During the year
2006-07, IREL posted all time high sales turn over exceeding 3600 million with export
component over Rs. 1000 million & all time high Profit Before tax of Rs. 1000 million.
Future Outlook
Company is implementing expansion of all the three Mineral Separation Plants. With the
expansion activities in progress, the Company is poised to reach greater heights in the
years to come. The phase-I expansion at Chavara is nearing completion (in full) and the
expansion at MK is expected to take off soon. Expansion of capacity at OSCOM is also
progressing.
The successful completion of expansion activities will bring forth a new era of higher
capacity and profits and the Company, it is hoped, will attain the pinnacle of glory. The
Company will continue to be one among the most successful
CHAPTER 4
General Manager
Clerical staff
Clerical staff
Earlier IRE had the monopoly in the field of rare earth products. Now some private
players are present in the market. IRE is engaged in the production of minerals such as
Ilmenite, Rutile, zircon and Sillimanite from naturally available beach sand deposits. It
also produces like Zirflour and Microzir. On specific requirements of customers, the
company also supplies Sillimanite powder by sub contracting among there Ilmenite,
Rutile, , zircon are categorized as scheduled minerals for which the customer is require to
obtain license from the department of Atomic Energy (DAE) Bombay of their purchase.
All expect Zirflour and Microzir and Sillimanite powder are dispatched against permits
obtained after payment of prescribed loyalty by IRE in advance to department of mining
and geology, Govt: of Kerala.
On receiving inquiry from party is submitting their quotation stating with general
conditions for sales. Majority of the customers place orders directly with Chavara.
Sometimes head office also fixed quota customer wise, if necessary, for the supply of
minerals and intimates from time to time If all the formalities are completed delivery
instruction are given by the sales department to stores and despatch department for
delivery the material to the customers
Sales procedure
On receiving inquiry from a party they should submit their quotation stating with general
majority of the customers place orders directly with Chavara. In certain cases orders are
issued by registered office Bombay which is diverted to Chavara for execution. If all the
formalities are completed delivery instructions are given by the sales department to stores
department for delivering materials to customers.
Pricing
Pricing is very crucial decision for marketing management. The objectives of the firm is
to get maximum profit, it is very much depends upon the correct decision in pricing. The
price will have to accommodate with additional cost involved in respect of packaging,
labelling etc. Consolidated marketing are done in IRE. Approved prices of various
products are received from head office at time to time and maintained by sales
department.
Samples to customers
Samples are sent to customers on their request or as per instructions from head office for
their evaluation of suitability for their requirements.
Free samples are sent to customers as per following procedure.
Up to 500gm: HOD (marketing) intimates section head to prepare samples of required
quantity along with gate pass.
501 to 1 kg: HOD (marketing) prior approval from unit head and follows the above
procedure.
Above 1kgs: Head office approval with information to unit head and following above
procedure.
Customer visit
Every quarter five customer are selected for a visit to know the prevailing market
condition
Customer feedback
Every year customer questionnaires are circulated to the customers and circulated to the
customers and suitable strategy for future marketing. Competitors Even though the
company enjoys a near monopoly till recently. But now it has some competitors in
Domestic and foreign markets. Companies like Vaizag (A.P), VV Minerals, Tutucorin
(T.N) in the domestic market and like RGC Ltd, Western sands(both in Australia) Titania
and Tinfos (Norway), Richard’s Bay Minerals Ltd (South Africa)
Major customers
KMML
CMRL
Steel companies
Ceramic companies
Reoinda
Kerr-McGee Corporation
Dugon
The last three companies are regular customers who producing titanium di oxide (TiO2).
Market segmentation
The company finds its major market in foreign countries. The IREL exports mineral like
Ilmenite, Zircon &Sillimanite to many countries mainly U.S.A, Canada, UK, France,
West Germany, Japan etc. The head office in Mumbai makes the export contract .Also it
supplies heavily to domestic market. Exporting is done through shipment. The company
makes shipping bills and packs the items in cargo for distribution products in the domestic
market. The company uses road transportation system.
Market share
The company has 90% market share in domestic market and 2% in foreign market. Till
1998, the company enjoyed monopoly in rare earth products. But now some competitors
are present in other states. In Kerala still the company enjoys monopoly.
Fig 1
400
360.12
350
295.45 306.5
300
266.82
250
200
NET
150 SALES(Rs
in Lakhs)
100
50
0
2003-2004 2004-2005 2005-2006 2006-07
MINING DEPARTMENT
In IRE the raw material for production process are collected through mining process. The
production process starts with the collection of beach sand from various places. For
collecting this beach sand IRE uses the following two Methods: Sea Washing and
dredging.
Sea washing
Raw sand is collected from sites where deposits are occurred due to natural beach
washing .Presently IRE owns two sites one at Vellanathuruthu / Ponmana and one at 132
mining area. There is a heavy mineral deposit over a length of 22.5 km. They are found
over or coastal belt having an average width of 800 meters. The sea waves deposits the
mineral sand on the beach sand on the beach line and it is collected. Then it is send to the
mineral separation plant
Dredging
Presently IRE, Chavara have two floating dredges (material recovery plant MRP) at
Karithura and Puthenthura. These plants are constructed with the help of Neumann
Equipments private limited Australia. Each plant was cost about Rs 10 crore as
establishment cost.
The plant DWUP used for the mechanized recovery of minerals from the beach sand. The
DWUP consists of a floating dredging plant operated hydraulically and electrically which
could be moved from one place to another based on the requirement. The plant is floating
in an area having a water depth of 6 meters. The sand along with water in the form of
slurry (a mixture of sand and water) is pumped to the heavy up gradation equipments. The
equipments consist of a series of transfer bin rotating screens called trommel, spirals
separators, hydrocyclones, pumps etc all being electrically operated. The DWUP can
dredge about 40 to 60 tones per hour. The raw sand having an average at 40% heavy
minerals is fed to the floating plant and updates it to 85 to 90% mineral content. The
waste sand (quartz) from DWUP is used for backfill the dredged area.
Senior Manager
Wheel land
Operators (16)
operator
Tally clerk
Workers (5)
PRODUCTION DEPARTMENT
The main function of this department is to separate the minerals from raw sand using the
physical resources so as to provide desired utility to customer while meeting other
organizations objectives, efficiency and adaptability. IRE takes the nature boundary in
the form of beach sand and separates it to extract rare earths and minerals. These
materials go for a wide variety of products like ceramics paints, flints of lighters,
detergent etc. IRE produces the major beach sand heavy minerals like Ilmenite, Rutile,
Zircon, Sillimanite, brown Ilmenite and value added products like Zirflor and Microzir.
MAJOR FUNCTIONS OF THE DEPARTMENT
Prepare detailed raw material plans and ensure the incoming Quality standard and
their usage
Constantly evaluate alternative sources for raw materials, direct trial of the same
and help management to firm up such source
Prepare detailed production plan in consistent with Company’s production
objectives; direct and control the implementation of the same
Carry out investigation and guide management on long term measure towards
achievement of goals of expansion in the area of production and quality
Evolve standard operating procedures for different process and equipment
document standard operating data and periodical update the same
Department structure as follows
GM
Manager
Production Engineers
Operators
Workers
Fitters
Electricians
Production process:
The mineral sand from different mining areas as well as dredged sand from DWUP sites
are fed to HUP, where it is passed through a set of spirals and is separated into
concentrate and tailings (righter) fractions. The concentrate fraction is passed through
WHIMS magnetic separator to get magnetic and non-magnetic fractions.
The dewatered WHIMS magnetic fraction is dried in a Fluidised Bed Drier and fed to the
High tension Separators to get conducting fraction which is the Ilmenite product and non-
conducting fraction, which is enriched in Monazite, is sent to the monazite plant for
further processing.
The dewatered non-magnetic fraction from HUP is dried in another Fluidized Bed Drier
and fed to High tension Separators to get conducting fraction and non-conducting
fractions. The conducting fraction is fed to Magnetic separators to get three fractions viz,
(1) Magnetic (Ilmenite product), (2) Non-magnetic (Rutile product) and also a middling
fraction (Leucoxene product).
The non-conducting fraction from the Rutile High Tension Separators Rutile plant is fed
to another set of Magnetic separators, the magnetic fraction of which is fed to Monazite
circuit, being rich in Monazite content. The non-magnetics fraction is fed to the Floatex
Density Separator the overflow of which is rejected and the under flow is fed to spirals
circuit. The heavies’ fraction from these spirals is further upquraded through wet tables,
Magnetic separators, HTS etc to produce Zircon product. The tailings fraction from the
spirals is treated in Kelsey Jig and wet tables to recover zircon. The tailings fraction from
Kelsey Jig is treated in Spirals, Flotation cells etc to produce Sillimanite product.
PRINCIPLES OF SEPARATION
Principles used in
mineral
separation
Conductivity separation:
The heavies from HUP plant is dried using fluidized Bed Dries (FBD). The dried mineral
concentrate is subjected to electrostatic separation using high tension electrostatic
separation and two fraction namely conductivity and non conductivity minerals are
separated out.
Magnetic separation:
There are two types of magnetic separators are used. They are induced roll magnetic
separation and exolons.
Floatex separation
This is a column type of gravity separator. The input is fed from the top and water with
high pressure and force is pumped from the other end thus the low density fractions are
separated aside and the heavier are collected down.
Floatation method
This uses some chemicals for this purpose such as sodium silicate and oleic acid, which is
used for the separation of Sillimanite.
P
HU
FBD
Rotary dryer
HIRMS
IRMS
Non Mag
Mag
Mag Non Mag
Monazit Gravity
e separation
Ilmenite HIRMS
concentrate Tails
Mag
Non Mag Zircon
Flotation
Leucoxene Rutile
Float
Sillimanite Tails
FINANCE DEPARTMENT
Senior
Manag
er
Senior
Account
officer
1) Basis of accounting
The financial statements are prepared under historical cost convention and in accordance
with the generally accepted accounting principles on an accrual basis and comply with
accounting standards referred to in section 211(3C) of the companies Act,1956
2) Use of estimates
3) Fixed assets
Fixed assets are stated at their historical cost lees accumulated depreciation thereon. The
cost of fixed assets comprises of the acquisition cost and any attributable cost of brining
the Assets to its working condition for its intended use. Subsidy/ Contribution received
for specific assets is reduced from the cost there of.
The cost of self constructed fixed assets comprises of the costs directly relating to the
specific assets and overheads consistently allocated at pre-determined percentage of direct
salaries and wages
In respect of assets discarded/ scrapped, the net book value as assessed by the salvage
committee, whichever is lower is retained in the discarded/scrapped assets; the loss/gain
with reference to the retained value is adjusted in the year of disposal. However , if any of
these assets is not disposed off with in a period of three years from the date on which the
same is discarded/ scrapped, the value retained is fully written off and charged to Profit
and loss account for they year in which period of three year expires.
Capital expenditure on assets not owned by the company is amortized over a period of
five years commencing from the year in which benefit accrues to the company
Borrowing costs that are attributable to the acquisition /construction of qualifying assets
are capitalized as part of the cost of such assets. A qualifying asset is one that takes
substantial period of time to get ready for its intended use. All other borrowing costs are
charged as to revenue.
Land held for mining includes cost of land, trees, buildings, shifting, charges, registration
charges, stamp duty etc less registration if any
Depreciation
a) Depreciation on fixed assets is provided for on straight line basis at the rates and in the
manner specified in the companies Act, 1956, expect for the following assets on the basis
of technical evaluation
-Slurry pumps @20%
-computers@25%
-The depreciation is continued to be charged till the net block becomes nil
b) In respect of assets added during the year, depreciation is charged pro-rata from the
date of addition
c) In respect of assets discarded/demolished/destroyed during the year, depreciation is
charged pro-rata up to the date of such discard/ demolition/ destruction
d) Assets costing Rs5000 or less individually are depreciated at 100% in the year of
addition
e) In respect of fixed assets whose cost has undergone a change due to change in duties
etc, depreciation is provided prospectively over the residual life of the asset.
f) Cost of leasehold land is amortized over the period of the lease.
The diminution due to mining in the value of land held for mining as ascertained by
technical assessment at the end of every financial year is charged as depreciation.
Investments
Long term investments are stated at cost with provision to recognize a decline other than
temporary in value.
Investments classified as current investments are carried in the financial statements at the
lower of cost and fair value determined on the basis of the category of the investment.
Valuation of inventories
a) Raw material and material in transit are valued at cost or net realizable value
which ever is lower.
b) Stores, spare parts and loose tools are valued at weighted average cost.
c) Inventory of work in progress, intermediate products for further processing and
finished products are valued at cost or net realizable value which ever is lower.
d) Off grade material and contaminated stock is valued at 50% of lower cost or
market value.
e) Stores & spares not moved for more than 3 years are written down by 95% of the
cost.
Pre project expenditure
Expenditure on feasibility studies, flow sheet development, presentation of project
report, on new / expansion projects under its own auspices and /or joint venture to the
extent not adjusted are grouped under ‘pre-project expenditure’ pending capitalization/
adjustment/ write off
Loans & Advances
The company has neither granted nor taken any loans , secured or unsecured to and from
companies , firms or other parties required to be listed in the in the company Act 1956.
Fig 2
7000
6422.72
6000
5000
4240.85
4000
PAT (Rs in
3000 Lakhs)
2400.73
2000
1000
0
2004-2005 2005-2006 2006-2007
743.67
800
700
600
491.04 500
400
EPSto 1000 Rs
300
200
100
0
2005-2006 2006-2007
IREL Chavara takes place its highly motivated and trained human resource that has
maximized its performance and there by its highest business growth and profit. Morale of
employees remains facilitating smooth working of the company. Skill requirement related
to different disciplines are identified and training programs and workshops are conducted
to improve overall efficiency of the human resource.
Department structure as follows
Unit
head
HOD
(HRM)
SH
SH SH SH SH
Legal
HRM I HRM II Training Security
services
Subordi Subordi
nates nates
HR department lead by General Manager and two deputy managers assisted him. The
security department and time office are working under the General Manager of HR
department. Four deputy officers and 14 clerical staffs are working under the deputy
managers.
1. Administration
2. Industrial relation
3. Training and employees welfare
4. Time management
Manpower planning
Recruitment policy
Performance appraisal
Salary and wage administration
Industrial discipline
Maintaining service book and personal files
Maintaining reservation register.
Manpower planning
Man power planning is important for any type of organization. It is the process which
determines how an organization should move from its current man power position to
its desired manpower position. For this purpose, the HR department at IRE collect
feed back from all department in order to identify their manpower requirements of
various department And then the HR department crosscheck whether there is any
overstaffing in any of the departments If these department have excess of staff, they
are transferred to those departments where there is a shortage.
The company considers the number of employee presently working as significantly
high. There is a problem that sometime the VRS can lead to scarcity to workers for
particular job. At IREL using the process of multitasking the employees are made fit
to work in other function also. By the VRS scheme more than 100 employees have
been sent out with in span of three year
Man power of the company: There are 569 employs in the company. Total officers are
92 and clerical staff 477. The numbers of contract worker are 1240.
Recruitment criteria:
For the recruitment of candidates, the candidates should be above18 years of age. The
following steps are taken before the recruitment of employees. They are Govt. guide
line, the recruitment only through employment exchange, notification in internet, and
advertisement in newspaper should be needed. Application will be scrutinized with
the help of a selection committee and eligible candidates are called for an interview.
Selection: The steps followed in the selection process are
• Inviting and receiving application
• Screening the application
• Selection test-the selection test of employees are include
Aptitude test
Personality test
Achievement test
Trade test
Appointment will be based on certain criteria’s like they are medically tested after
that induction training should be given.
After training for a period of one year or more they will be put as permanent
employees.
2. Grading method
Under this method certain categories of work such as excellent, very
good, average, poor, very poor are established and defined actual performance of each
employee then compared with the grade definitions and ranked.
To evaluating the performance of workers are present. Last grade employees that are
8th& 9th grade, their work performance have been observed by supervisors. But in the
case of executives MBO’s are observed their performance and efficiency.
In IRE performance appraisal is done on a yearly basis to assess the performance of
the employees. The appraisal is done by three persons.
1. Reporting officer
2. Reviewing officer
3. Evaluating officer
F5rstly, the employees themselves do a self appraisal and this is given to the reporting
officer and the person who has done self appraisal together identifies the key result areas
and weight age is allotted to each one of them. This is usually done at the beginning of the
year. The reporting officer checks whether the key result areas set where met by the
appraisal or if there any deviation from it. And this is to be sent to reviewing officer and
then evaluating officer. Various other factors such as the appraisal’s managerial skills like
job knowledge, interpersonal skills are also included and guided, and that is allotted in the
appraisal and there promotion is based solely seniority.
Promotion
In IREL promotion is given seniority based or based on experience. Promotion is a
transfer of an employee to a job that pay more money or that enjoys some preferred
status. Sometimes the company is considering the length of the service, education,
training courses completed, previous work history etc. Sometimes the company is also
considering ability, hard work, co-operations, honesty etc.
Industrial discipline:
Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is
on receiving a complaint about a particular employee, explanation is asked. Employee
will give an explanation before 15 days. If the explanation is not satisfied he will be given
a charge sheet and will also conduct a domestic enquiry. For this purpose an enquiry
officer is placed. After conducting the enquiry the report should be sent to the disciplinary
committee, and if necessary, certain punishment may also give.
Grievances handling
There is a grievance cell in this company. Any employee can bring their grievance and
complaints here. These grievances are discussed with top authorities and effective
measures are taken.
Transfer policies
Transfer is the movement of an employee from one job to another without involving any
substantial change in his duties, responsibilities. The company is following 4 methods
a) Production transfer:
When a particular department or job is faced with the pressure of work, its strength may
supplement through from other departments. Such transfers are generally made where are
department is overstaff and other is short of manpower.
b) Replacement transfer:
A replacement transfer is the transfer of a senior employee to replace with a junior
employee or new one
c) Shift transfer:
When units in shifts, employees are transferred from one shift t o another on similar job.
d) Department transfer:
Transfer from one department to another department with in the plant or with in the
organization.
Industrial Relation
Most of the disputes will be settled by the company and unions. If it is not cleared, they
can approach to the government.
The trade unions active at IRE are;
These are the recognized unions. There are some criteria for the reorganization of a union;
the union will have 15% of employees as their members. Also some participative forum is
present, they are plants committee, Safety committee, &House building committee. These
committees will have the equal participation.
“Training is the act of increasing the knowledge and skill of an employee for during a
particular job”. IRE adopted various techniques of training for increasing the mass
productivity. The training program is restructured regularly in IRE. The objective of
training and development in IRE
Increase the efficiency
Increase the morale of people
Reduce the absenteeism
1. Identify the training needs. The company identifies the training needs through 3 ways
a. Organization analysis
b. Task analysis
c. Man analysis
2. Executives themselves will discuss the training needs.
3. Charting out the training plan for a period
4. Based on feed back individual training is given.
Training methods
IRE has mainly four types of training methods. In house training, External training,
Vocational training and First aid training. The training method can be grouped on the
basis of level of personnel in the organization.
In house training: Other wise known as on the job training. In this method expert from
outside, come to the organization and give training.
External training: Also known as off the job training. The training is given out side of the
organization.
Vocational training; At least 0% of the employees should be trained every year.
First aid training; 30 people in one batch and give them training.
In house and external training
Employees’ welfare:
Two types of employees’ welfare are present in IREL. They are statutory welfare and non
statutory welfare. Grativity, P.F, Pension, canteen, medical allowances are including in
the statutory welfare. Festival allowance, LTC, Recreation, Tour facilities are includes in
the non statutory welfare. Also the IREL gives some kind of allowances. They are
Shift allowance: for employees working in shifts expect general shifts will get an
allowance as follows
1 st shift (8 am to 4 pm) =10/-perday
2nd (4 pm to 12 pm) =15/-perday
3rd shift (12 pm to 8 am) =25/-per day
Attendance bonus
To increase attendance in the company gives annual bonus of 12 days wages for every
employee who have minimum 268 day presence
Production incentives
Every employee gets an amount of Rs. 525/-per year as production incentives from the
profit.
Other benefits
750ml milk/day
4 pears soap/month
One turkey or towel/year
Shoes (1pair)/year
One umbrella/ year
One raincoat/2 year
House loans up to 3.5 lakhs
Medical facilities etc
Educational allowance to workers children
Festival allowance.
Group insurance scheme.
Holiday facility.
Leave travel concession (LTC).
Time office
There is a full fledged time office headed by Dy. administrative officer. It follows a punch
card system. Different allowances for employees are given and it is mainly depend on
attendance. It is providing according to the report from the time office. The Time office
is working under the HRM department. The main function of this department is to
maintain attendance records, leave and service records etc. There is an e-form called
Muster which relates with the attendance. The various allowances to the employees like
shift allowance, overtime allowance, attendance bonus all these records are maintained by
the time office department. Also yearly attendance bonus is given to the employees.
Attendance of 268 days per year -12 day’s salary
Attendance of 262 days per year-10 day’s salary
Attendance of 243 days per year-7 day’s salary
GENERAL MANAGER
Senior Assistant
Assistant Clerk
Attender
For recording attendance punching system followed here. The attendance register usually
keep in time office. The time office collects attendance from concerned authority also.
And match with the punching system and avoid swapping. Time office has three centers
for punching in convenience of employees. In mining area and dredging plant also keep
mechanical punching machine. For the payment of salaries the time office is sending the
records to the finance department. If the finance department asks for any clarification they
will do it.
PURCHASE DEPARTMENT
DGM
Senior Manager
Clerical Staff
Work Force
Formalities of purchase
1. Float inquiry to right source
2. scrutinize the quotations
3. Obtaining the financial approval
4. Release an order
5. Flow up for times requirement
6. Receipt at the store
7. Assistance to give payment in time.
The stores department act as a store and supply chain, keeping inventory of the product
produced on one hand and supplying requisite raw materials to the manifold department
on the other hand.
All the items in IRE are properly stored by this function area, including finished product
inventory. It stores furnace oil, machine parts, office equipments and stationary etc.
Deputy General
Manager
Manager (stores)
Clerical Staff
Clerical Staff
Workers
Workers
Procurement of items of capital nature is to be made only after the approval by the
competent authority duly verified by internal auditors with prior conclusion in the capital
budget
Stores action is responsible for arranging procurement of all items or purchase
requisitions shall from the basis for arranging procurement or other departments,
complete in all respects and duly approved by the controlling authority. Stores are
purchased indigenously and from foreign suppliers through the adoption of competitive
tendering. Tendering system is adopted it secure the most competitive tendering the most
competitive rates and eliminate chance of favour.
The worth of production in the plant is currently between 6-7 crores. Once in every three
months inventory statistics is prepared and send to the head office in Mumbai. Stores
follow Bin card and Cardex system. This department has three major functions as follows
Receipt: The consignment items are properly verified with the receipts and requested the
particular departments to made inspection on each items
Storage: The received items are stored in proper locations and preserve them until the
issue. Each item has its own Bin card .The quantity received, material issued, total
remaining are noted in the Bin cards.
Issue: The issue made in first in first out method. After the receipt of the material internal
note from the department, the issues are made and same is recorded in the bin card
Inventory Control
Under the stores department the inventory control function is done. If excess stock is
obtained, it is properly informed to the marketing department to promote sales and if any
shortage obtained it is properly informed to production department to increase the
production. Usually ABC inventory control method is adopted in IRE Chavara for control
of inventories. The principal types of inventories are
• Raw material and supply
• Goods in progress that is work in progress
• Finished good
For reduction of inventories four steps are taken in the stores and despatch department.
They are computerization, Codification, standardization, and value addition. All the
process in stores departments are computerized and Inventory management software is
used for this purpose. Coding is given to all inventories. For this, alpha numerical coding
is used. Material coding is help to realize what kind of inventories are stored. And
location coding is help to find out where it is stored. By the use of standardization
physical verification of inventories are to be done and to be check whether the invoice
number and purchase order are equal.
Despatch section
Despatch section controls the transportation of the finished products to the out side of the
company. When a customer made a complete settlement of money for the purchasing of a
particular product from the company the marketing department placed a delivery order to
the despatch department. The despatch department then prepares an invoice and t gave a
copy to the customer. This d4eepartment also prepares gate pass and state Govt;
declaration sheet.
One of the quality control departments is to ensure quality products according to customer
requirement. They harness beach sands in environmentally responsible manner to produce
minerals and innovative value added products, which are used to make novel products
required by customers.
Secondly they are responsible for maintaining consistent quality of products to the
satisfaction of the customers through quality management system implementation. They
also aim at further improvement of product, technology or process. The quality control
department is also responsible for maintaining consistency in quality of raw material
during the processing, intermediate, and final product stages. They al make use of
chemical and mineralogical testing methods in each stage.
In addition to these functions this department also conducts research and development
activities to support flow sheet development works and for solutions to process related
problems.
IREL Chavara got ISO 9001:2000 certifications for quality management system
established for mining, manufacturing and marketing of mineral products for the
certification body of TUV management service: Munich
This department looks after the safety issues of the manpower. This team is lead by
Manager (safety and environment). He is assisted by Dy. Manager (Safety and
environment) .There are staff to assist these officers
This department provides personnel protecting equipments like safety shoes, gun boots,
helmet, goggles, mask, air muffs etc to workers from time to time. This department
conducts mines safety week during August- September month in every year. There will be
competition in safety slogan, safety song, safety speech etc. At induction level every
employee gets an intense training in safety issues. Under safety department there is a
committee “accident inspection committee”, to face unexpected accidents IRE has a
safety and environmental protection committee consists of unit head as chairman and all
department /section heads as members, employees union are also participating in the
committee. This committee is meeting in every month to evaluate safety measures and
forms new policies if necessary.
Indian Rare Earth Limited, Chavara employs a state of art safety program to prevent
accidents in the plant. The safety programs are responsible for
1) Displaying safety advertisement boards which help to create safety awareness among
the workers
2) The safety committee is responsible for safety. An inspection conducted on a regular
basis say daily, weekly and monthly. In addition to this a yearly inspection is conducted
by internal and external experts.
3) This department is responsible for providing safety training and retraining to regular
employees. They also provide instruction training for fresher and external expert training
to all engineers
4) Safety committee also conducts monthly performance appraisal programs of their
activities.
5) This department also has a special wing for accident investigation and reporting and
accident prevention programs
MAINTENANCE DEPARTMENT
TYPES OF MAINTENANCE:-
1) Electrical maintenance.
2) Mechanical maintenance.
3) Machine maintenance.
4) Preventive maintenance.
6) Routine maintenance.
7) Block maintenance.
PROJECTS
Normally projects are carried out by the requirements of the production department. Then
the maintenance department makes a feasibility study. Then again the maintenance
department consults with the user department. Then the maintenance department
calculates return on investment (ROI) and pay back period (PBP). After that, these will
be sent to the head office at Mumbai. If the head office asks for any clarification, the
maintenance department will clarify it.
Unit Head
HOD
Maintenanc
e
SH
SH
DWU SH SH SH SH
SH SH P-I SH SH SH SH ELE
ELE ELE
Mec DWU DWU MSP- MSP- D- C
HUP Auto P-II P-III I II
SHIE C C
h F INST HUP MSP
Maintenance
personnel
PROCESS MODULE:-
REQUIREMENTS
INPUT:-
OUTPUT:-
QMS
Improvement of Providing APFC panel at EMS
power factor DWUP-3
Premises from To provide at HUP,
lighting Administration building,
Clamping of loose Canteen building.
tools 1) All Ilmenite OHMS
dump area.
2) Behind fire store room. EMS
SECURITY DEPARTMENT
Security of company assets and premises laid on the staff of security department It is lead
by security manager and he is assisted by 6 head security officers and 26 security guard
The security department gives security of company and also maintains the entry of
employees and visitors. According to ISO procedure they maintain the discipline of
employees like uniform visitors pass etc
Major threats
Two major threats they are present in IRE they are
1) sabotage
2) Theft .
Sabotage
If sabotage happens there will be a control room and it accessible at every time. In case of
emergency the system will automatically shut down and emergency alarm is there. And
all the employees are required to assemble in assembly points.
Theft
The boundary walls of the company were not clear. And also the neighboring people are
jobless people because they have a tendency to theft.
GM
Mgr (Security)
There are 32 securities in total. The security department gives security in mining area
also.7 securities are in Puthenthura, 7 securities in Vellanathuruthu and 16 in plants.
MEDICAL DEPARTMENT
IREL Chavara has a full fledged dispensary in the company. It comprises of two doctors,
three pharmacist and three nurses. Structure of the department as follows
Dy. GM (Medical)
Pharmacist
Nurses
Every family member of the employee is eligible for free attendance and treatment in the
dispensary. Cases beyond the scope the dispensary will refer to major hospitals in kollam
and karunagapally (referred hospitals). The whole payment is such cases are done by the
company itself. Dispensary is working around the clock.
CIVIL DEPARTMENT
Civil department consists of Dy. Manager (civil), two Dy. Officer and the work force.
They frequently monitor company structures and maintain them properly. In case of new
projects, the basic infrastructure has to be erected by this department.
Supervisors
Strength
1. Highly skilled manpower
2. Efficient management
3. Modernized plant having foreign and Indian technology
4. Cordial relation ship between management and unions
5. The setting up of IREL has resulted as in a considerable upliftment of the social
and economic conditions of the people living in surrounding areas.
6. In keeping with the environmental concerns Indian Rare Earth as adopted eco-
friendly the measures with in the surrounding.
Weakness
1. Situated in Kerala where labour charges are high and also political influence are
regarding labour issues.
2. Only a small part of total plant capacity is utilized
3. Due to monopoly of market sales promotional activities are very less
4. Poor distribution system
5. Company is a central government undertaking and as a result all major and minor
decisions have to be taken undergoing a lot of formalities and take more time.
Opportunities
The company has in the part associated with setting up of projects for the department of
Atomic Energy (DAE) viz the Uranium metal a plant at Bombay and the uranium
corporation of India at Jaduguda in Bihar state. In the near future it plans to under take
more such projects on behalf of DAE.
Threats
1. Possible changes in government policy
2. Increasing trend of transportation cost
3. Change in social and political scene to increase the price of raw material.
CONCLUSION
IREL is one among well performing companies in Kerala, engaged in the process of
processing rare earths products available among the coastal belts. IRE is reaching new
boundaries with its performance. IRE was incorporated on 18th August 1950 as a Pvt. ltd
company under the Indian company’s act of 1913 jointly owned by the govt: of India and
the govt: of Travancore Cochin. In 1951, IREL became a public sector undertaking and
two mineral separation plants, one at Manavalakurichi in Tamil Nadu (1967) and the
other at Chavara in Kerala state (1970) were set up.
BIBLIOGRAPHY:-
• IRE Brochure.
• www.irel.gov.in
• www.wikipedia.org
II Expenditure
Materials Consumed 3433.31 2627.40 1642.53
Employee's Remuneration
benefits 10378.1 9996.49 8001.32
Manufacturing & Other
Expenses 11333.86 12031.56 10996.51
Interest 17.77 20.22 57.85
Capital Expenditure not
represented by assets owned
by the Co. 12.40 12.40 12.40
26908.52 26163.36 22238.74
III Profit Before extra
ordinary items, prior
adjustments & taxation 9433.39 7704.24 7334.79
Extraordinary items & prior
Period Adjustments -571.84 20.10 261.65
PBT 10005.23 7684.14 6073.14
Provision For Tax for current
year 4241.85 3710.15 3575.66
Income Tax 0.00 412.43 807.68
deferred Tax charges(credit) -749.95 -754.31 -710.93
FBT 90.61 75.00 0.00
PAT 6422.72 4240.85 2400.73
Balance brought forward 17324.55 14776.36 12953.67
IV PROFIT Available for
appropriation 23747.27 19017.21 15354.40
Appropriations:
Proposed Dividend 1727.3 10445.96 506.94
Tax on dividend 293.85 146.7 71.1
Transfer to gen Reserve 500.00 500.00 0.00
Balance carried to Balance
Sheet 21226.42 17324.55 14776.36
TOTAL 23747.27 19017.21 15354.4
Organization chart
Unit Head
GM GM GM
DGM HR R&M SM DGM Fin
MIN R (PS)
Berchmans Institute of Management studies IA 62
INDIAN RARE EARTHS LIMITED
DGM
Prod
SM
m&p
D D D D
M M M M
S PR M M
D D D D D D D D D D D D
M M M M M M M M M M M M
E M P P P P P M R P S fI