Date:19/04/2006 URL: http://www.thehindubusinessline.com/2006/04/19/stories/2006041902252100.htm

Back APMDC ties up with Swiss company for mineral plant

Our Bureau

Beach sand project to come up in Vizianagaram district

While the project would see an investment of about Rs 4,500 crore, the Government has been informed that the annual turnover after completion of the final stage would be around Rs 18,000 crore.

Hyderabad , April 18

Bothli Trade Ag, Switzerland and AP Mineral Development Corporation (APMDC) would form a joint venture for a mining and mineral separation plant.

A MoU was signed by Mr Suren Gevorgyan of OST-CHEM Group, Ukraine, on behalf of Bothli in the presence of the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, here on Tuesday.

According to a statement from the Chief Minister's Office, the joint venture would form part of the beach sand project. While the project would see an investment of about Rs 4,500 crore, the Government has been informed that the annual turnover after completion of the final stage would be around Rs 18,000 crore.

The project is likely to be based at Bhogapuram Mandal of Vizianagaram district. APMDC would allocate about 8,237 hectares - from Lawson Bay in Visakhapatnam to Koyyam in Vizianagaram district, and further from Bendicreek to Barua and Donkuru deposit of Srikakulam district.

Project-I is likely to take off in 6-9 months after getting clearances. Bothli would invest around Rs 70-90 crore in Project-I and APMDC would hold 26 per cent equity — 11 per cent through mining sub-lease and 15 per cent adjusted against payment of consideration until full payment or by providing infrastructure facilities.

The company would pay APMDC an annual consideration to be fixed by a committee constituted by the State. Alongside, Bothli would develop Project-II for production of ilmenite, garnet, silimanite, rutile, zircon and other mineral concentrates and ilmenite base value-added products like synthetic rutile or titania slag (1.2 lakh MT per year and above), titanium dioxide (one lakh MT per year and above), titanium sponge and ingots (20,000 MT per year and above) and coatings (25,000 MT per year and above).

The Mines and Geology Minister, Ms Sabita Indra Reddy, the APMDC Chairman, Mr Vaddepalli Narsinga Rao and the MD of Stork Handesges m.b.H group, Russia, were also present on the occasion.