HomeSteel & CommoditiesGoAP looks to boost state's Mining sector

GoAP looks to boost state’s Mining sector

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In order to attract investments and realize the true potential of the state’s mining and critical minerals segment, the government of Andhra Pradesh has sought the centre’s help/involvement to unlock the full potential of the state’s limited resources.

In a recent letter Andhra Pradesh’s Mines Minister Mr Kollu Ravindra wrote to the Union Minister of Coal and Mines, Mr G Kishan Reddy, seeking the centre’s assistance that would ensure rapid investment, efficient & responsible mining practices that align with the demand for a sustainable and resilient economy.

Integrated Beach Sand Minerals

To begin with the state government has cited huge scope for mining of beach sand minerals (BSM) in Andhra Pradesh and said that the Government of Andhra Pradesh plans to develop Integrated Beach Sand Minerals Project including downstream plants for value added products which is likely to attract investment of around Rs 10,000 crore.

‘GoAP has submitted proposals for reservation of 16 BSM bearing areas over 16,604 Hectares, in favour of APMDC, out of which Central Govt. has approved 3 areas covering 1,000 Ha. which will be exhausted within 12-13 years’ said the letter to the Union Minister.

Considering the huge capital expenditure to establish value addition plants and the need for sustained raw material security, the state government has requested approval to grant additional areas of upto 3,000 Ha. as permitted under Section 6 of MMDR Act.

Similarly, the majority of the beach sand minerals bearing area is falling in forest areas. As stipulated by the Forest Conservation Act of 1980, obtaining forest land for mining necessitates the identification and allocation of equivalent non-forest land for Compensatory Afforestation (CA), a process that can be quite protracted.

Unlike typical mining projects, where the lease area becomes available for reuse only after lease expiry (>20 years), in Beach Sand projects, mined-out areas can be back-filled with sand tailings to their original level within 8-12 months, allowing these areas to be promptly returned to the Forest Department for afforestation.

The state government has therefore requested that the requirement of CA land may be dispensed off for Beach Sand projects, as Compensatory Afforestation can be done within the lease area.

Further, forest land for mining be allocated in phases: initially for the first 3 years, with subsequent phases granted only after the area has been backfilled and handed over to the Forest Department.

‘I kindly request your intervention to coordinate with the Ministry of Environment, Forest and Climate Change to approve this phased approach, which will significantly aid in the timely commencement of Beach Sand Mineral projects, increase domestic production of these strategic minerals & reduce import reliance’ said Mr Ravindra in the letter.

Offshore Mining Development

Another key area it has seeked assistance for is Facilitating Offshore Mining Development in Andhra Pradesh.

Commending the recent amendments to the Offshore Mining Act 2002 which envisages the auction of offshore mineral bearing areas by the Central Government it stated that it is crucial that revenues from royalties, which are currently collected solely by the Central Government, be shared with state governments also.

Mining activities will significantly utilize state land resources for transportation, machinery, and local employment, thereby justifying a revenue share, said the letter.

Mr Ravindra further added that Andhra Pradesh is eager to participate in the upcoming offshore mining auctions and aims to establish a dedicated corporation for this sector.

‘With its extensive coastline, Andhra Pradesh has the potential to become a major player in offshore mining, particularly for critical minerals’ he said.

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