A delegation of officials of KIOCL, the Bangalore-based state-owned enterprise formerly known as Kudremukh Iron Ore Company, has met the CM of Andhra Pradesh seeking allocation of iron ore mining leases in Anantapur district as part of its plans to set up an integrated steel plant in the district.
K Ranganath, CMD, KIOCL told the government that the company would invest about Rs 8,000 crore in various types of plants, including beneficiation, pelletisation and an integrated steel plant, if the state government granted prospecting licences and mining leases for its project in Bommanhal and D Hirelal mandals in the district. These facilities would be set up by forming joint ventures with various state agencies.
In addition to value-addition, these projects would generate 8,000 jobs according to KIOCL.
Recently the Supreme Court has issued orders cancelling various iron ore mining leases which violated laws, including some in Anantapur district bordering Karnataka.
KIOCL is currently engaged in manufacturing and exporting high-quality iron oxide pellets as well as supply of pig iron for the domestic market. The company website states that it currently operates a 3.5-million tonne capacity pellet plant besides a 216,000 tonne pig iron plant.