VIJAYAWADA: The Andhra Pradesh Mineral Development Corporation (APMDC) has bagged Brahmadiha coal block located in Jharkhand in auction. This is the only coking coal mine among the auctioned blocks.The APMDC, owned by the Andhra Pradesh government, won the auction after offering to share 41.75 per cent of the production revenue with the Jharkhand government.
As coking coal is a key raw material in steel production, sources said the mine would come in handy for the State government, which is setting up an integrated steel plant in Kadapa district.“Basically, the strategy is to secure the raw material for the steel plant. Of course, we may not depend on the coking coal in Jharkhand as we have to spend more for transportation. However, owning the mine is a very good option as we can use it if we don’t get the required raw material for steel production from other sources at affordable prices,’’ an official told TNIE.
The official said that the APMDC can generate revenue by selling the coking coal in Jharkhand. The officials said they can get the required coal from other sources near the steel plant to avoid spending more money on transportation.
Officials said high grade steel required for the steel plant can be imported from Australia or Indonesia through Krishnapatnam port and can be transported to Kadapa through a dedicated railway line, instead of transporting the coal from Jharkhand. “Earlier, the APMDC got two thermal coal mines in auction. But we are not using them for GENCO and selling them to others. Similarly, we may not use the coking coal for our own purpose. But, it will give us security, in other words a Plan-B ,’’ the official reasoned.
Official sources said around 2.50 million tonnes of coking coal is available in the mine, which spreads over 250 acres, in Jharkhand and that the APMDC may carry out the mining operations for about a decade.
