Mangalore: KIOCL gets new lease of life with mining permission in Andhra

Daijiworld Media Network – Mangalore (SP)

Mangalore, Apr 19: After an agonizing decade of lull, Kudremukh Iron Ore Company Ltd (KIOCL) has got permission from Andhra Pradesh (AP) government to begin mining in Anantapur district.  Following an agreement between KIOCL and Andhra Pradesh Mineral Development Corporation entered into on Thursday April 18, the AP government issued an order to this effect.

Depending on the availability of mineral deposits, KIOCL proposes to set up a pellitization plant with a capacity of 1.2 to 2.4 million tonnes there, a release from KIOCL said. The pelletization plant of the company, which functions at Panambur port, has not been functional since the last few years.

The company has seen buoyancy since Malay Chatterjee assumed charge as KIOCL chairman sometime back. The company said in a release that it is thankful to AP Chief Minister, Kiran Kumar Reddy, and his cabinet colleagues for according mining permission to the company in that state.

After the lease period permitted for mining operation in Kudremukh area ended, there had been petitions seeking to end the activity because of environmental damage caused in the mining area. After the Supreme Court issued orders in 2006 to suspend its activities, the company’s activities had come to a standstill. During its heydays, the company was one of the government-owned companies with high profits.

Even after the suspension of mining activities, the pellitization plant at Panambur was functional for a few years. A pig iron manufacturing unit had also been set up by the company. The company expects to return to its glorious past with the fresh lease of life it has got now in the form of permission to conduct mining activities in AP.