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Kudremukh Iron Ore Company signs MoU

Kudremukh Iron Ore Company signs MoU

 Kudremukh Iron Ore Company Ltd (KIOCL), a state owned pellet manufacturer has signed an agreement with Andhra Pradesh Mineral Development Corp. (APMDC) and Rashtriya Ispat Nigam Ltd. (RINL) for exploration and exploitation of iron ore and setting up of pelletisation plants with capacity of 1.2 MT p.a. each in Anantapur district.

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According to the Andhra Pradesh (AP) Government, a Memorandum of Association (MoU) was signed in the presence of Chief Minister Kiran Kumar Reddy on Sunday, June 23, 2013, by the three Public Sector Undertakings (PSUs) – APMDC, KIOCL and RINL. The MoU was signed for the exploration and exploitation of iron ore in Nemalkal and Hiradahalu villages which comes under Anantapur district of Andhra Pradesh. Chairman of KIOCL, Malay Chatterjee said that the ground breaking ceremony will take place in August, 2013.

According to the MoU, APDMC will be holding the mining lease and will carry out the exploration mutually with the KIOCL and thus establish iron ore reserves. Also, with mutual agreement, the pellets which are manufactured by KIOCL would be supplied to RINL.

 Kudremukh Iron Ore Company Ltd

KIOCL and APDMC together will set a business enterprise for carrying out the mining with 51% and 49% stakes respectively. After the plant is being set, the pellets will further be supplied to RINL as per the agreement terms.

KIOCL will be investing around Rs 1,000 – 1,500 crore for the development of the mines and for setting up the pellet plant in Anantapur district. However, the production of iron ore and pellets plants will commence from after a time period of around 36 months. While more than around 3500 people will be benefited with employment with the project of plant construction.

According to the AP Government, the estimated assets as per exploratory work are around 30-35 MnT including both hematite and magnetite ores having a life span of 20 years.

KIOCL currently has an iron oxide pellet plant and blast furnace unit at Mangalore, Karnataka. It presently manufactures and exports high quality iron oxide pellets and supplies pig iron in the domestic market.

The Chief Minister has asked the Chairman and Managing Director of RINL to set up the plant in Jammalamadugu area of Kadapa district. The land was earlier been allotted to Brahmani Steel Plant, but, cancelled later on as said by the release given from AP Government.