Andhra Pradesh Mineral Development Corporation (APMDC), National Mineral Development Corporation (NMDC) and Director of Mines and Geology (DMG) entered into a memorandum of understanding (MoU) on Friday for exploration of low grade iron ore deposits in Kadapa, Kurnool, Chittoor and Karimnagar districts.
Chief minister, K Rosaiah, in whose presence the MoU was signed, stated that the main objective was to upgrade the low grade iron ore so that it could be marketed and thus generate revenue and employment. He wanted the exploration and upgradation to take place at the earliest.
The iron ore deposits in the four districts are estimated to be about 200 million tonnes valued at about Rs 40,000 crore.
According to the MoU, APMDC and NMDC would form a 50:50 joint venture company to explore both iron ore and gold deposits. The state government would get a revenue of about Rs 4,000 crore towards royalty from iron ore and Rs 17 crore royalty from gold deposits, according to an official press release. DMG with the financial support of both APMDC and NMDC will carry out the investigations.