APMDC to set up mfg units across state

Hyderabad: Andhra Pradesh Mineral Development Corporation (APMDC), which is playing a pivotal role in mineral exploration, has drawn action plans for commercial exploitation of various minerals including iron ore, coal, bauxite and other minerals for setting up of manufacturing units in different parts of the state, according to APMDC managing director Dr TRK Rao, Vice-Chairman and managing director, APMDC.

He revealed that a Pelletisation Plant will soon be set up in Rayadurgam in Anantapur district. An MoU had been signed with Kadremukh Iron Ore Limited (KIOL) for setting up a beneficiation plant which will produce iron ore pellets which in turn will be supplied to the Visakhapatnam Steel Plant.

APMDC will have 51 per cent stake and the KIOL 49 per cent as per the MOU. About 30 million tonnes of ore deposits are said to be in the Rayadurgam region. Pellets are indurated spheres of ore with a high iron content and uniform quality. Pellet plants produces two varieties of pellets including blast furnace pellets and direct reduction pellets.

The former is used in coke based blast furnace process which is the most method of producing hot metal (molten iron for steel making). Blast furnace pellets are supplied mainly to steel plants. Direct reduction pellets are used to produce sponge iron which is an alternative process route from iron to steel.

The process is primarily based on the use of natural gas. Asked about the proposal to supply iron ore from Bayyaram mines to the Visakhapatnam Steel Plant, he said that the ore reserves would have to be estimated first by APMDC before its supply to the VSP as the mines have limited pockets of higher grade iron ore, in the context of cancellation of MOU with Rakshana Steels Private Limited.

APMDC is also engaged in exploration of coal blocks in Madhya Pradesh and Orissa as part of its expansion programme. It will tap 5 million tonnes of coal per annum from the allotted coal blocks by the Government of India to it.

It will start its operations by December 2014. The government is strengthening its exploration wing by boosting its potential including men and machinery.

In Visakhapatnam, decks have been cleared for the setting up of a 3.8 million tonnes of aluminum plant by Anrak Aluminum Limited (AAL). More than 225 tribal community members are also trained for absorbing them in the company project. Rao said that the Baryte mines in Mangampeta in YSR district (Kadapa) was also being tapped for commercial use and employment generation.

The Baryte mine is the only deposit in the country which is used as a weighing agent for drilling fluids in oil and gas exploration to suppress high formation pressures and prevent blowouts. An additional benefit of barite is that it is non-magnetic and thus does not interfere with magnetic measurements taken in the borehole, either during logging while drilling or in separate drill hole logging. APMDC will tap 2 million tonnes of Baryte per annum. It will also arrange for setting up of beneficiation plants for supply of the same to petroleum exploration industry.