Ilmenite mining leases soon: Minister

IT and mines & geology minister Sabita Reddy today said the state government was expecting clearance for mining leases for the three beach sand projects proposed with a combined investment of Rs 7,350 crore under private sector in a couple of months.

Speaking to mediapersons, she said the three projects were aimed at extracting the valuable titanium metal from ilmenite mineral available in abundance on the Andhra coast.

According to her, Austria-based Stork Handelsges mbH, which had signed an MoU with the state government in the past, has replaced its Russian partner, Avisma, for the proposed project with Switzerland-based Botley Trade AG.

The state will emerge as the fifth largest titanium player once the three projects start operations, she said.

The state government had decided to allot 7,500 hectares of beach sand area to this consortium besides 1,500 hectares to Tamil Nadu-based VV Minerals.

Andhra Pradesh Mineral Development Corporation (APMDC) has applied for mining leases and will supply the beach sand ore to these companies. The project would also require environmental clearances from the Centre.

This apart, Hyderabad-based Trimax Limited has directly applied for mining lease for a similar beach sand project in a 10,000-hectare area in Srikakulam district. The state government has forwarded the application of the company to the Centre.

The Stork Handelsges-Botley has proposed to invest Rs 4,600 crore in the titanium project while VV Minerals has proposed to invest Rs 1,800 crore in its project. Trimax is expected to invest Rs 900 crore in its beach sand project.

"Of the 278 million tonne ilmenite reserves in the country, Andhra alone is estimated to have 116 million tonnes. The state government is keen to utilise this natural resource for the development of the coastal economy and create employment opportunities for the local people," she said.