| The plant will be a joint venture project with the state-owned Andhra Pradesh Mineral Development Corporation (APMDC). |
| Addressing a media conference here on Thursday, P Sabita Reddy, minister for mining and geology, said that Stork, in collaboration with Russian companies "� AVISMA and VSMPO "� is keen to invest over Rs 4,500 crore over a period of three years in beach sand mining and titanium sponge production operations in the state, despite higher titanium content found in the beach sand of Kerala. |
| She said the government is ready to sign an agreement with the company for the proposed titanium operations in the state. |
| According to the minister, who recently visited AVISMA and VSMPO facilities in Russia, the company intends to invest Rs 500 crore in mining before setting up other plants of value addition nature. Of the total 375 million tonnes of mineral accruing ilmenite deposits in the country, Andhra Pradesh alone accounts for about 116 million tonnes. |
| The Stork consortium proposes to set up a mineral separation plant and establish a titanium slag and sponge plant to produce 2.5 lakh tonnes of ilmenite in the first phase which is to be increased to 5 lakh tonnes from the fourth year onwards, she said. |
| Initially, the government will allot the 25-square kilometre area in Kalingapatnam and Bhavanapadu in Srikakulam district for beach sand mining to APMDC, which in turn will approach the Government of India for mining lease in association with the Austrian company, the minister said. |
| "Equity holding pattern and other details will be worked out during the time of signing of the MoU," she said, adding that the company has sought no other help other than according permission to establish its operations in the state. |
| According to the minister, the turnover of the Russian companies touch Rs 3,000 crore. |
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