APMDC eyes iron ore mining at Bayyaram

APMDC eyes iron ore  mining at Bayyaram

State body applies for licence to conduct study survey A Ravindra Seshu Hyderabad: AP Mineral Development...

State body applies for licence to conduct study survey

A Ravindra Seshu


Hyderabad: AP Mineral Development Corporation (APMDC) has filed an application before Director of Mines and Geology for obtaining prospecting licence to conduct a study survey at Bayyaram area in Khammam district. APMDC is showing interest to take up iron ore mining at Bayyaram and supply it to the Rashtriya Ispat Nigam Limited (RINL), which had signed a memorandum of understanding (MoU) in January, committing an investment of Rs 42,000 crore.

The State government would select the mining company after scrutinising the applications. According to norms, the approval of Government of India is compulsory to issue the licence at the final level. Sources said, "The government would definitely extend the mining contract to APMDC because of the present scenario."

Interestingly, iron ore area in Bayyaram is located in the reserve forest area and forest licence is a must for it. Mineral Exploration Corporation Limited (MECL) has expertise in finding out the iron ore. Sources in APMDC said that they would prefer to extend to the study and survey contract to MECL if it obtained prospecting licence first. It is learnt that, it would take six months to get forest and GOI clearances.

There were several stages before mining the ore and another year's time is needed to complete the iron ore survey. Then, the quantity of iron ore deposits available would be known. According to preliminary estimates, there were 100 million ton of 'B' grade iron ore deposits at Bayyaram area.

"If 100 million ton of 'B' grade iron ore availed, then, there is possibility of setting up a beneficiation plant and steel plan," said an official in APMDC said and added that two tons of 'B' grade iron ore was needed to produce one ton steel. A The government would cancel the licence to mining and supply of iron ore to RINL, if the company had not set up steel plant at Bayyaram, after sufficient deposits were found there.

The iron itself is usually found in the form of magnetite, hematite, goethite, siderite. Iron ores are rocks and minerals from which metallic iron can be economically extracted. Hematite and magnetite ore would be available in plenty in India. Iron ores carrying greater than 60 per cent iron are known as 'natural ore' or 'direct shipping ore', meaning that those can be fed directly into iron-making blast furnaces and it is called as 'A' grade. Less than 50 per cent is called as 'B' grade iron ore.

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