KIOCL Ltd (formerly Kudremukh Iron Ore Company Limited) has secured an access to prospect and mine iron ore deposits in Anantapur district of Andhra Pradesh.
The company would sign a memorandum of undertaking (MoU) with Andhra Pradesh Mineral Development Corporation (APMDC) to set up a joint venture.
"It is heartening that after persistent efforts of senior management of KIOCL and subsequent high-level discussions with the government of Andhra Pradesh, KIOCL gets access to prospect and mine iron ore deposits in Anantapur district of Andhra Pradesh," KIOCL said in a statement.
The government of Andhra Pradesh has approved the MoU between APMDC with KIOCL through a government order issued today. Depending upon the availability of iron ore reserves, KIOCL will set up a beneficiation and pelletisation plant each with the capacity of 1.2 million to 2.4 million tonnes per annum, the company said.
KIOCL has been idle for want of mine for over seven years after shutting down its captive mines at Kudremukh in Chikmagalur district of Karnataka since 2006 following a Supreme Court order. However, it continues to operate its Pellet Plant in Mangalore with a capacity to produce 3.5 million tons per annum.
KIOCL also operates a Blast Furnace Unit in Mangalore to manufacture pig iron with an installed capacity of 2.6,000 tonnes per annum.
