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INTRODUCTION
Gold has been known and highly valued since pre-historical time. Gold in antiquity was relatively easy to obtain geologically. Primary deposition, the first source of gold, is in igneous rocks. A deposit usually needs some form of secondary enrichment to be economically viable either chemical or physical changes like erosion or solutions, which concentrates the gold in sulfides or quartz, These deposits are termed reef or vein, and are eroded by weathering, with most of the gold being transported into stream beds where, congregating with other heavy minerals, it forms placer deposits. In all these deposits the gold is in its native form, that is, as a shiny yellow metal. Gold has been considered one of the most precious metals, and its value has been used as the standard for many currencies (known as the gold standard) in history. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties.
The primary goal of the alchemists was to produce gold from other substances, such as lead presumably by the interaction with a mythical substance called the philosophers stone. Although they never succeeded in this attempt, the alchemists promoted an interest in what can be done with substances, and this laid a foundation for todays chemistry. Their Institute of Management Studies Davangere Page 1
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While exploration and mining can sometimes be conducted by individual entrepreneurs or small business, most modernday mines are large enterprises requiring large amounts of capital to establish. Consequently, the mining sector of the industry is dominated by large, often multinational, mostly publicly-listed companies. See Category: Mining companies for a list. However, what are referred to as the 'mining industry' are actually two sectors, one specializing in exploration for new resources, the other specializing in mining those resources. The exploration sector is typically made up of individuals and small mineral resource companies dependent on public investment. The mining sector is typically large and multi-national companies sustained by mineral production from their mining operations. Miners today do more than just dig tunnels in the Earth's subsurface. There are many different jobs, direct and indirect, in the mining industry, ranging from engineers and lab technicians to geologists and environmental specialists. Beyond employment directly linked to mine-site activity, the modern mining industry also employs many other professionals, including accountants, lawyers, sales representatives, public relations specialists, not to mention thousands of men and women involved who manufacture the machines and equipment necessary to mine minerals.
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PRODUCT PROFILE
Gold has long been considered one of the most precious metals, and its value has been used as the standard for many currencies (known as the gold standard) in history. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties. The primary goal of the alchemist was to produce gold from other substances, such as lead presumably by the interaction with a mythical substance called the philosophers stone. Although they never succeeded in what can be done with substances, and this laid a foundation for todays chemistry. Their symbol for gold was the circle with a point at its center which was also the astrological symbol, the Egyptian hieroglyph and the ancient Chinese character for the Sun.
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COMPANY PROFILE
Hutti Gold Mines company Ltd (HGML) a government of Karnataka under taking (established in 1947 as Hyderabad gold mines) have the unique destinations of being the only producer of primary Gold in the country the company has its corporate office at Bangalore and operates Hutti gold units in Raichur district. The gold unit comprises Hutti underground gold mine, Uti open cost mine and Hire Buddini exploratory mine. Major expansion including the extended capacity of the Institute of Management Studies Davangere Page 5
HISTORY
The mine is probably one of the ancient metal mines in the world dating to the pre-Ashokan period carbon dating of the old timber collected from old workings indicated about 2000 yrs of ancient mining activity Between 1887 and 1920 nearly 7.40 tons of gold was recovered from very rich ore at an average yield of 19 grams per tone. Most of the ore was from the main mine which was worked by Hutti (NIZAMS) gold mine and of shoot of Hyderabad (DECCAN) Company. The main mines were up to a dept of 1056 mts. The industry was closed down in 1920 due to technical difficulties and First World War.
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LOCATION Hutti is located about 80 kms west of Raichur , about 500 kms north of Bangalore and is considering has one of the prestigious stable under ground metal mine in India located in north west periphery of Hutti-Muski green stone belt. Hutti underground gold mine of HGML is one of the deepest working in India (after closure of Kolar Gold Mines of BGML and the Institute of Management Studies Davangere Page 7
MINING AND TREATMENTS HGMLs production has steadily increased over the years. In this process HGML has been able to develop much needed technological expertise in the field and prepared itself to take new challenges growth and development. Over the years the company has implemented a number of technologies up dating schemes in mining and smelting leading to increase competitiveness of its operation. HGMLs operation starts with mining of gold ore. The huge/bulk mining methods viz. large Dia blast whole stopping and sublevel mining have achieved higher safety and productivity. The ore is crushed, ground to very fine powder. The grinding output is subjected to cyanidation and CIP (Carbon in pulp) process, where metallic gold leaches and gets absorbed on Institute of Management Studies Davangere Page 9
Total Ore Mined so far HGML Total Gold produced Ore reserves estimated as on 31-04-2006 (proved and probable reserves) Present scale of production
10.97 Million tons 66.20 tons 7.01 million tons with 6.28 gm/tons grade total gold 44.42 Tons 6.04 lakhs TPA of ore. 3.50 tones of gold.
To become one of the most vibrant, self reliant, financially viable and steady growths oriented organization. The corporate mission is: Mine with a human face. Achieve Operational, Financial and Social objectives. Achieve a minimum of 20 percent return on equity to the shareholders. Improve productivity and profitability. Have cost management control and reduction. Provide long term financial stability. Generate internal resources for steady growth of 10 percent in production. Register steady growth in terms of percent of capacity utilization, production, income and profitability. Innovative methods of production. Introduction of modern and effective management control systems. Promote harmonious and cordial relationships. Institute of Management Studies Davangere Page 11
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To search for gold, other minerals and precious deposits in Karnataka state.
To maintain or join with any other persons/companies in purchasing , constructing and maintaining roads, railways, buildings, machineries, mills, reservoirs and other works conductive to the objectives of the company.
To acquire work and dispose of and deal in any mines, metals, minerals, clay and other like substances and to acquire, produce by cultivation, manufacture, deal in or other wise turn in to account any minerals.
To carry on the business of general electric power supply company in all branches and to construct, lay-down, establish, fix and carry out all necessary power stations, cable wires, liners, accumulators, lamps and other works to generate accumulators, distribute and supply electricity and to light cities, towns, streets, markets, theaters, buildings and place of both public and private.
Machinery
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Records
The deepest mine in the world: Savuka Mine in the North West Province, South Africa at 3,774 meters [24] East Rand Mine in Boksburg, South Africa briefly held the record at 3,585 meters The first mine declared the deepest in the world was TauTona in Carleton Ville, South Africa at 3,581 meters. Plans exist to extend TauTona to a depth of 3,902 meters by July 2008, which will make it the deepest again. [24] The deepest mine in Europe: Boulby Mine England at 2800 meters The deepest open pit mine in the world: Bingham Canyon Mine in Bingham Canyon, Utah, USA at over 1,200 meters The second deepest open pit copper mine in the world: Chuquicamata in Chuquicamata, Chile at 900 meters
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ORGANIZATIONS STRUCTURE
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GM
HRD HRM DHRM Sr Welfare Officer Personal Officer W/O Assistant P/O W/O Clerk
Finance Finance Manager Dep. Finance Mgr. Sr Manager Manager Assistant Manager Clerk Page 17
PRODUCTION DEPARTMENT
Introduction:
Production is the basic activity of all industrial units. All other activities revolve around this activity. The end product of the production activity is the creation of goods and services for the satisfaction of the human wants. The production activity is nothing but the step-by-step conversion of one form of material into another either chemically or mechanically. This is done in factories which house manufacturing processes. The basic input of the production processes are men, machines, plant, services and methods. An organization capabilities and the intent are strongly reflected in the product it manufactures. The manufacturing competencies and facilities echo truly, the R&D extent and the ability to implement it for the best of the market it targets. The product of mine is used as raw materials on which the processing is done to create or enhance the form utility. It should note that the finished product of one manufacturing unit does not always furnish a ready made product for the ultimate consumption. In a chain of manufacturing activities, the finished product of processor sometimes become the raw material (or component) for the other manufacturing firms falling next in the sequence.
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Gold is recovered through two routes: Gravity Concentration Leaching, CIP, Elution, Electro winning process and there after smelting produce saleable Gold Bullion Bar
DBT Plant:
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Demonstration Bio Reactor Plant with the collaboration of department of Bio-Technology, Government of India has been setup to maximize recoveries from the refractory Ores since the resources of free Gold Ore are limited. Due to the limitation of processing of refractory Ore through the concentrated smelting route, alternative recovery route such as Bio-Leaching need to be pursued vigorously.
A major initiative has been taken by HGML through the setting up of demonstration Bio Reactor plant being the first of its kind in India. Gold Ore occurs in native form is disseminated in a quartz matrix such Ores referred to as free milling Ores are treated in a Conventional process with a Cyanide to solubilize Gold-cyanide complex. Whereas in case Gold Ores are found to be refractory in nature i.e. gold is associated with sulphides such as Pyrite and Arsenopyrite. In the absence of period Bio treatment direct cyanidation of a refractory Gold bearing sulphides will yield only 30-40% while after Boi-liberation the Gold recovers can be enhance to more than 80-90%. Its being planned to upstage the Demonstrator plant to a large scale plant for G.R. Halli and Ajjanahalli refractory Ores. Institute of Management Studies Davangere Page 22
Shafts:
The access to the Mine is by two vertical shafts and one incline shaft. The shafts are concrete lined rectangular shafts and are in full operation up to 27 L corresponding to a depth of 772 mts in Mallappa shaft and 774 mts at central shaft. Institute of Management Studies Davangere Page 23
Levels:
Levels are 2.4 x 2.4in sections and level interval is normally 30m vertical. The intervals of the levels are kept at 30 Mts due to nature of the ore body and also the drilling equipments available indigenously to drill level-to-level blast holes without much deviation of the holes. A greater distance increases the possibility of missing areas of payable ore, during development due to the extremely erratic gold distribution.
METHOD OF WORKING:
Stopping in earlier days was by shrinkage method of mining and was restricted up to 15 L from 15 L to 20 L the method was by cut and Fill method. Shrinkage method of mining has been stopped long back with entire ore withdrawn.
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In blast hole stopes when the ore body is more than 3 mts in width and when there exist no mined out block over the stope block, then level to level drilling using 115 mm dia holes are drilled. These holes are drilled against a slot raise excavated at one end of the stope by drop raise technique. The slot raise is the free face for the blast holes to break in. A combination of 57 mm dia holes of 10 to 15 mts depth are also drilled when it is required to cover wider ore bodies where 115 mm dia holes are not possible.
ii)
When the ore body is narrow or when there exist a mined out stope above the proposed block then a sub level is excavated keeping 10 mts as the crown piller or when the ore body is weak and may cause dilution a sub level is excavated to have a control on the hole depth/deviation. From the sub-levels 115 mm dia holes are drilled and at times 57mm hole are also drilled depending on the
depth of the hole and nature of the ore body. At the draw level a foot wale haulage is excavated about 13 mts away from the footwall contact of the ore body. From the footwall haulage draw crosscuts are driven at an interval so that a pillar of 8 to 10 mts are maintained between the two draw crosscuts. Institute of Management Studies Davangere Page 26
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Sand Stowing: For filling of voids in cut fill and blast hole stoping methods, on surface two silos of 1000 T capacity are made at one site and 3 silos of 150 MT capacities are made at another site. For the 2000 T capacity silos, 2 Nos. of 6" dia bore holes are drilled from surface to 7L and from 7L to the lower levels bore holes are drilled level to level and connected carrying the mill tailings to the stopes. For the 3 Nos. 150 T silos two pipelines are run from surface to the stopes through old shafts and raises. The Ventilation: filling capacity at prevent is approximately 600 MT of classified mill tailing. -
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METALLURGICAL DEPARTMENT:
Role: to extract Gold of 91% pure from ROM at the optimal cost. Responsibility: Ensure higher Productivity with least risk by adopting the following:
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Metallurgical Operation:
The Gold extraction process in HGML practices Mineral Processing, Hydro electro & Pyro Metallurgical routes. The Major unit processes involved is described below: Crushing. Grinding. Cyanidation. CIP, Elution, and Electro winning. Smelting. Assaying and R&D. Institute of Management Studies Davangere Page 31
Crushing: Mine ore is drawn mainly from the adjacent Mallapa Shaft ore-bin of 1000 tonnes capacity, while ore from the other shafts is brought in to the crushing circuit via a surface ore-bin of about 200 tonnes capacity equipped with chain feeder and inclined conveyor belt etc. ROM is crushed to -10 mm size in three stages. In the first stage there are three nos. of Kue Ken Jaw crushers, which act as primary crusher and crushed ore stored in 200 MT. In the second stage 2 Nos. of 3' standard symon cone crusher act as secondary crusher and in the tertiary stage, there are 2 nos. of 3' short head and 2 nos. of 4' short head symon cone crushers. These crushers are in close circuit with vibrating screen. Crushed product is stored in a fine ore bin of 1500 tons capacity before feeding to grinding plant. Automatic sampler and weight meter and weighbridge provide the necessary production input details. Grinding: Mill Capacity: 1950 TPD The milling/Grinding process of gold ore in Hutti employs two distinct grinding techniques.
In the first technique grinding is done in two stages i.e one primary mill and 3 nos. of secondary tube mills constitute Institute of Management Studies Davangere Page 32
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Assay and R&D Lab: Activities involved in Assay lab /Sample testing are: Crushing of Underground samples. Filtering and drying of grinding samples. Institute of Management Studies Davangere Page 34
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Activities carried out in R&D Lab: Institute of Management Studies Davangere Page 36
1. Quality control. 2. Pollution control. air pollution (Process emission, flue gas emission, ambient air monitoring) Effluent analysis. Domestic sewage analysis.
3. Mineral analysis 4. To carryout/involve in R&D project works taken up by the company. 5. To prepare solution required for R&D works. 6. To do any other work as assigned from time to time.
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(HUTTI +UTI + HIRA BUDDINI MINES) Year Ore Hoisted (Hutti only Tonnes) Ore Treated (Hutti+NP) (Tonnes) (Feed) Grade (G/t.) Net Grade Gold Produced Ore Treated Net Grade Gold Produced Total Produced by HGM Co. Ltd. (Kgs)
(G/t.) 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 1,79,924 2,32,460 2,56,912 2,63,272 2,77,430 291214 2,54,529 2,60,199 3,79,251 1,78,338 2,46,481 2,32,626 2,83,083 2,93,640 3,23,974 3,49,084 3,35,845 4,09,437 5.73 5.51 4.82 5.52 5.3 4.93 4.4 5.62 6.11 5.42 5.04 4.35 4.97 4.9 4.4 4 5.31 5.67
(Kgs) 966.409 124.76 1011.24 1408.05 1438.07 1427.1 1395.82 1784.99 2333.49
(Kgs) ---6.395 49.619 182.33 209.866 219.663 184.77 173.624 82.221 966.409 1249.16 1060.86 1590.38 1647.96 1646.77 1580.59 1958.61 2415.71
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Chartered Accountant
Trust Account
Cost account
Employee Account
Inventory Account
Cash Account
Introduction:
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Flow of indents / Materials receipt notes must be uniform i.e. document should not be piled up and dumped on one day The writing must be legible Unit of measurement mentioned in the issue/receipt document should agree with master data created in the beginning Maximum care should be exercise while material code in issue/receipt document to avoid duplication /wrong booking of cods which may affect the cost sheet Cost code booking in indents is critical to compute correct cost sheet. Reconciliation of ledger balance and ground stock to be carried out at regular intervals. Page 44
The main principle in this company is Opening balance+ Receipt = Weighted average. The total material of different section are divided into 8 parts Chemical & Building: - e.g. cement nails, bolts, nuts, acid, sodium cyanide, soda, potassium nitrate etc. U/G & Electrical spares: - e.g. core bricks, drill loads. Machinery spares: - e.g. generators, compressors. Steel materials & Pipe fittings Tools & Misc. materials Fuel, oil & lubricants Transport spares Explosive Ballast Sand & Red earth
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ABC ANANYSIS
1. A class items : - Where the total consumption during the year is above 20000\- are called class A items 2. B class items : - Where the total consumption during the year is below 20000\- and above 3000\- then these items comes under class B items 3. C class items : - Where the total consumption is below 3000\- are called C items
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COSTING SECTION
The HGML maintained the standard costing system. Costing section makes the companies all department expenses checked and then exact cost will de shown according to the expenses they are incurred while every days consumption. In every month this department will shown the transaction expenses accurately in a print of copies. Also income from any department will be prepared according to the Personnel Code and cost Centre of the company provided for the different departments and different employees, on the basis of this cost Sheet will be prepared. The main purpose of these formalities, in every month what the unit of Gold takes the expenses will tally with the expenses of all other department, and then tallied both different will be Profit or Loss of the company. And also to ascertain the cost per metric ton and cost per gram of the gold.
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2. Revenue Recognition
a) Sales are accounted net of discount. b) Sale of Bullion is accounted on the basis of rate confirmation fineness and weight on delivery. Institute of Management Studies Davangere Page 48
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3. Fixed Assets
a) Fixed assets are started at cost less depreciation, capital work-in-progress are recorded at historical cost. b) Values of abandoned fixed assets and capital work-in-progress are charged off in the year in which the same are identified as redundant. c) Expenditure during the period of reduction for expansion/modernization/mechanization of existing unit is capitalized on successful completion of the concerned project. d) Government grants received relating to capital expenditure are reduced from the gross value of such expenditure. e) Borrowing cost that directly attributable to the acquisition of an asset up to the scheduled date of completion as per technical report are capitalized as part of cost of that asset.
4. Depreciation
a) Depreciation on a fixed asset is provided on straight line method based as contemplate under section 205(2)(b) of the companies act, 1956 read with schedule 14 of companies act, 1956. b) Additions to existing, asset are depreciated over the remaining useful life of that asset. Institute of Management Studies Davangere Page 50
B. Finished goods
Gold at lower cost and net realizable value [Mumbai bullion price for standard gold as on 31st march less discount] a) Silver of lower of average selling price for the year of closing market value. b) Copper lower of average selling price for the year closing market value. Institute of Management Studies Davangere Page 51
b) Other miscellaneous expenses are amortized over period of 5 years. c) Expenses towards voluntary retirement scheme is amortized over the balance period of service of the employee not exceeding 5 years, following the years of insurance. d) Borrowing costs from the stipulated date of completion as per technical report up to the date of commissioning of the project are treated as deferred revenue expenses and are charged of over the period of 5 years, from the following years of commissioning of the project.
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9. Prepaid expenses
Expenses is excess of Rs.500 whereof benefits accrue in the subsequent year, are treated as prepaid expenses. Institute of Management Studies Davangere Page 53
31.3.2009
31.3.2008
Share holders fund Reserves and surplus Loan Funds Secured loans Unsecured loans Deferred tax Liability Net
Total
2009
2008
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provision Current Liabilities Provisions Total Net Current Asset Misc. Expenditure to the extent not written off/adjusted Deferred revenue expenditure
323143786 979500910 1302644696 501984242 177859135 715775456 893634591 391273095
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Total
149397177 73669768
2306032818
1671976470
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Introduction:
Human Resource management is a management function that helps manger recruit select, train and develops employees for organization. It is concerned with the people dimensions in the organization. It is concerned with the people dimensions in the organization. It is specialized field that attempts to develop programmes, policies and activates to promote the satisfaction of both individual and organizational needs goals and objectives. It is concerned with the people dimensions in management. Since every organization is made up of people acquiring their services developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives.
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The company selects the employees required for the concerned jobs through the selection procedure. The procedure is as follows:
1. Job analysis:
It refers to the study of job in terms of duties, responsibility risks and other factors associated with each kind of job. It is the basis for the selecting the right candidate to the right job. It is essential to finalize the job analysis, job description, job satisfaction and employees satisfaction before proceeding to the next step.
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3. Application form:
It is also known as application blank it is widely accepted technique for securing information from the respective candidate. The company asks the application to apply on paper giving particular about his name, date of birth, mailing address, education, qualification, experience, etc.
Contents of application Form: Personal background information Education attainment Work experience Institute of Management Studies Davangere Page 60
4. Tests:
The following are the tests conducted. They are as follows: a) Aptitude test: This test conducted to known the ability if the b) Candidate to learn to job, it giving adequate training candidate may be having some specific aptitudes such as mechanical, clerical, managerial, etc. c) Personality Test: Personality is some total of mental moral and physical trades are qualities. The test will help the experts to know the qualities like emotions, reaction, mental maturity, self-confidence, optimists decisions making, capacity, sociability, patients, intensive, honesty and integrity. d) Medical Test: This test is conducted to assess the physical healthy standards of the prospective employee. Beside medical test is conducted to see that the candidates are not suffering from any infection diseases.
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5. Final Interview:
The candidates who are successful in the above tests will be called for final interview. Interview means face-to-face encounter with purpose recruitment committee consists of some persons from the concerned department and from the human resources department this expert goes on asking different topics. Based on the satisfactory answer the candidates are final considered for the employment.
WELFARE:
Types of welfare activities:
a) Medical Facility:
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c) Housing facility: The Company has 2365 quarters. These quarters have been allotted to the eligible Officers/ Staff/ Employees. Regular visits made to the colonies by the welfare Officers to regulate the health and hygiene of the camp area. A new beautiful park was developed in the Labor and Officers colony, for the use of officers, employees and their families.
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g) Loan: Employees Provident Fund loans were granted to employees following: SL. No 1. 2. 3. 4. Sick Marriage Education House Building Loan Total h) Workers Education Class: Workers Education classes are conducted under the auspicious of CENTRAL BOARD WORKERS EDUCATION, to 30 workers unit level classes conducted from 14-03-2003 to 12-04-2003. As industrial tour has been arranged from 2nd May 2003 to 12th may, 2003. i) Counseling: The welfare officers have taken up the counseling programmed to help and guide the employees who come across their personal, social and other problems. The counseling programmed is taken up at the welfare department in attending their problems as following cases: Institute of Management Studies Davangere Page 65 Category No of Employees 1860 68 _ 436 2364 Amount Rs.( Lakhs) 262.20 33.85 _ 189.49 485.54
Based on the above facts the Welfare Officers made efforts in promoting awareness by motivating & guiding to the employees who come to seek assistance from them. Family counseling is done to the employee and their family members. In case of alcoholic employees monthly side collection amount is collected from their salary and the same amount paid to wife/dependents.
SAFETY:
There is a saying over here, Institute of Management Studies Davangere Page 66
Safety first, production must Safety of the employees, workers guests and whoever else presents in the responsibility of the industry. JSW is legally and humanitarianly responsible for every accident (reportable or non reportable) within the plant boundary. Safety devices: There are many safety accessories available for workers: Helmets, Protective Glasses, Glass masks, Denim Jackets, Hand Gloves, Denim trousers, safety shoes etc. Depending on the work environment, aluminum jadels, safety belts, with hooks, welding, masks, ear plugs, co monitors etc are some of the other safety equipments used.
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MARKETING DEPARTMENT
INTRODUCTION
Marketing department is one of the important departments in HGML. They provide door delivery after the agreement for gold purchase. The present gold purchases are M/S Suresh Jewelers M/S Bangalore Refinery M/S Prcis Jewels [Bombay bullion] The Gold rate fixing on this committee The board perused care fully the note circulated. Dr Subramanya desired to have details of the procedure of sale which was explained. After the deliberations, the following resolution was passed. Institute of Management Studies Davangere Page 68
Resolved that approval of the Board be and in here by given for sale of Bullion at 1 % refinery discount based on the Mumbai Bullion Market price of standard gold of 99s purity and silver of 999 purity as published in the Economic Times on the date of delivery of bullion to M/s Bangalore Refinery (P) ltd, 40 kilograms; M/s prcis precious metal Co PVT ltd 10-15 kilograms and M/s Suresh Jewelers 10-15 kilograms per week for the period of 3 years 1.4.2006 to 31.3.2009 Further resolved that action taken in the sale of Bullion at a refinery discount of 1% from 1st April to 31st March 2009 be and the some herby ratified and approved.
ENGINEERING DEPARTMENT
Engineering department is a department which deals with all most all supportive engineering jobs like maintenance and repairs of existing machines, equipments and buildings and installation, erection and commissioning of new machines equipments and projects, transportation facilities for Mining Engineering and Metallurgical Engineering departments and also provides engineering solutions for making arrangements for providing fundamental amenities for the employees and their dependents like Providing water for drinking and daily use. Providing electrical facilities. Making civil constructions. Institute of Management Studies Davangere Page 69
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So all these sections have their own machinery for production of Gold like crusher section have K Jaw crusher, Cone crusher, belt conveyors. Grinding section have machine like Ball mills, pebble mills, concentrators, cyclone concentrators, belt conveyors. Cyanide sections have machines and equipments like thickeners, agitators, C I P, furnaces, Carbon recharge kiln. Assay lab has small machines like crushers, mills and furnaces. Ventilation section have ventilation fans of various size for providing ventilation to the under ground people. Maintenance (Preventive, predictive, breakdown), repairs and erection, installation of above said machinery and equipments is carried out by Plant Section.
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UNDER GROUND ENGINEERING DEPARTMENT: This engineering supportive section for mining engineering department. Mining department has different shafts for Drilling equipments Air hoists Rock breakers Crushers Locomotives Loaders Conveyors
IS
trimming ore from different levels of each shaft for that purpose we have different machinery & equipments like
Maintenance (Preventive, predictive, breakdown), repairs and erection, installation of above said machinery and equipments is carried out by U / G Engineering Section. Institute of Management Studies Davangere Page 72
COMPRESSOR SECTION: One of the major source used for all most all mining processes like drilling of holes ,loading the material ,hoisting and lowering of men and material to different level and sub levels, diaphragm pump used for under ground mine dewatering purposes is compressed air. This compressed air is produced by different types of compressors like 1) Rotary (electrical) 2) Reciprocating (electrical) 3) Rotary (diesel operated) 4) Reciprocating (diesel operated)
And Electrical power generators (diesel operated) of different capacities, Maintenance (Preventive, predictive, breakdown), repairs and erection, installation of above said machinery and equipments is carried out by Compressor Section.
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CIVIL SECTION: The main role of civil engineering is to take care of all most all civil works like constructing foundations for industrial machinery, buildings for process plant; industrial constructions, residential building for employees and other amenities like making roads ,gutters, water tanks etc. This is a supportive section for all the sections. This section has two sub sections 1. Building section 2. Carpentry section
PROJECT SECTION:
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In the work shop all fabrication, machining, molding activities are been carried out to cater requirements of U/G mining dept., metallurgy dept., and to all other engineering sections. Institute of Management Studies Davangere Page 76
TRANSPORT SECTION: This section provide transportation facilities for all sections of all department like Cars, buses, Jeeps, excavator, dozers, cranes, lifters, Tippers, Trucks etc This section is having its own work shop where all maintenance & repairing activities of above said vehicle & equipments are been carried out.
PURCHASE DEPARTMENT
Introduction:
The success or failure of any factory depends upon the cost of materials. This is because material cost is a major part of the total cost. An efficient purchasing ensures getting of materials from the right sources and at a right price. Thus purchasing is most important function of materials management. In big organizations like Hutti Gold Mines there is a separate purchasing department. The management entrusts all powers to this department for purchase of all types of materials. This department is entrusted to one responsible person. He is usually known as Purchase Manager or the Supply Manager or the Chief Buyer.
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Where to purchase When to purchase Whom to purchase How much to purchase At what price to purchase
To answer above questions purchase department has to Perform the following functions: Receiving purchase requisitions or indents (when to purchase). Page 79
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Purchasing Procedure:
In the HGML Company following procedure is followed in purchasing department: 1) RECEIVING PURCHASE REQUISITION:The first step in the purchase procedure is the receipt of the purchase requisition for materials by the purchase department from the various departments. Request for purchase of materials are made on a form known as purchase requisition. It specifies what kind of material is required.
2) EXPLORIN THE SOURCE OF SUPPLY:The purchase manager is usually in contact with several sources of supplies of different materials. If the materials are to be purchased in bulk, he invites quotations from various suppliers in the form of a Tender. When tenders are invited, then the lowest tender should be accepted by the purchase department by considering other factors like quality, terms of payment, modes of delivery etc. Institute of Management Studies Davangere Page 81
3) PLACING AN ORDER:After selecting the supplier who quoted most favorable quotations, the next step to taken by the purchase manager is to place the order. The order must be made on a printed form and must contain such information as number, date, address of supplier, particulars of goods etc. This order form should be prepared in 4 copies. The original copy should be sent to suppliers, second copy to the stores department, third copy to the accounts department and last copy is retained by the purchase department for its future reference.
4) RECEIPT AND INSPECTION:When the invoice is received from the concerned supplier, it will be compared with the order form to ascertain whether the only ordered goods have been supplied or not. Then these goods are physically inspected to ascertain whether goods received tally with the invoice
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Problems:
The following are some problems that both stores department and purchase department are facing. They are: The store is facing shortage of workers. The transactions are transferred in writing and it takes long time also. MRN is not raised soon after the stock is completed and which leads to shortage of materials during the production.
Solutions:
As, I have seen that in the company especially in stores it faces problems as mentioned above and for that solutions are as: Institute of Management Studies Davangere Page 84
The store should appoint workers by approaching the Management so as to perform the works in smooth way. For easy transfer of the transactions the store should be provided with computers to make the entries daily so that it would be easy for future reference. The user department should raise the MRN as soon the stock or material gets finished and helps the store to keep the stock in the store.
The company issues the materials on the basis of FIFO method to the each department.
Receiving good into stores after checking them with the contents of the goods received note and inspection report. Maintenance of proper record of materials received and issued to production. Proper classification and codification of materials. Maintain the store department neat and tidy. Issue of materials only against authorized requisition. Maintain stock level for each item of material. Prevent unauthorized person from entering into the stores. Receive back surplus materials returned. Initiate purchase requisition for the replenishment of stocks.
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Dy Manager (Material)
Stores Officer -3
Ledger Clerks 7
Institute of Management Studies Davangere Page 87
Store Boys
Other Staffs
1. Goods Clearing Clerk 2. Goods Returning Clerk 3. MRN Preparation 4. Claims Section
Material Control Techniques:The Company follows all eight material control techniques. They are: a) Fixation of Stock Levels b) Determining Economic Order Quantity (E.O.Q) c) Stock Turnover Ratio d) ABC Analysis e) Bin Card Institute of Management Studies Davangere Page 88
Documents of Stores:
The Main Stores as following Documents in order to perform its activities and the following are documents of stores: 1. Purchase requisition. a) Materials: Rose by main stores whenever required. b) Special order item requisition: Raised by various user department 2. Purchase indent 3. Material receipt Note (MRN) 4. Stores indent - it contents 3 copies. 5. Bin card 6. Issue Check list Summary Sheet 7. Gate Pass: a) Materials gate pass b) Returnable gate pass Institute of Management Studies Davangere Page 89
SWOT ANALYSIS
SWOT analysis is an analysis of STRENGTH, WEAKNESS, and OPPORTUNITY AND THREATS of a company. This is used to analyze the company environment will help each and every company to know the present situation of the company.
STRENGTH:
This is one and only reputed Gold Extraction Company in India It has been producing the products as per the standard specified by the Government of Karnataka. The work environment is full of excitement, creativity, and innovative atmosphere. All the departments are computerized. Quality of the ore and products. Extraction process goes on 24/7
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Modern machine and equipment are not installed in the company Absenteeism is the main problem in the company. Huge sound and air pollution in the production department One hour stoppage in the production process would lead to accrued loss of 2,18,400 Transportation costs are high.
OPPORTUNITY:
Company is having the excellent growth opportunity because of plants in different location. Company is having the good hold in the market that helps to earn more profit The capacity of the plant is in the increasing direction. It lies in the vicinity of large potential and unexplored market of Southern India. Page 91
THREATS:
There is no closer competition to the extraction of Gold but the liberalized rate to import the gold is one of the problems from domestic companies. Gold is non abundant resources which may not be available in future if we continue to extract with the present rate. Huge power consumes in extraction process and power failure. Foreign currency fluctuation.
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The Company is undertaken by Government of Karnataka. Employees co-ordination with the staff was found to be good.. Working atmosphere of organization is very good. The employees are getting attractive bonus, salary, wages and other benefits. There is high concentration toward the environment, health, and safety measures.
The company providing good medical facility to employees. There is lack of good incentives schemes. There is good maintenance of lighting, ventilation, and dust free environment.
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SUGGESTIONS:
The worker should be motivated for continuous presence through counseling The Manager Executives and other staff of the company should be sent to attend seminars, Conferences and workshops to enhance their skills and update knowledge.
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The company has to extend transport facilities to the employees staying outside the Hutti gold mines.
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CONCLUSION
It is necessary to bring forward clearly that Indian economy as well as its Gold industry during the past 50 years of its independence marched forward steadily with vocational ups and downs. In a large country like India with domestic set up, a continuous high growth rate many not to be always feasible. More over, the market economy also brings uncertainties. However Gold Company showing good trend during the past 10 years. Thorough the study, I came to know the production process of HGMLs details reading HR coils, HR plates and sheets and it send applications. It is necessary to say that, through the study, I came have gained a good exposure on organization and its operational areas in the HGML AND THE STREGTH AND WEAKNESSES OF INDIAN Gold industry. India is endowed rich of ore and other fluxes. It should be possible of the Gold making companies in India to lower their variable costs through, Implementation of cost effective technology
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Bibliography
1) Company Magazines and Journals. 2) Company Annual Reports. 3) Production & Operations Management: Everett E.Adam, Jr. and Ronald J. Ebert. 4) Financial Management:Prassanna Chandra(6th Edition). Institute of Management Studies Davangere Page 97
Websites
www.hgml.org www.google.com
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