Andru Minerals, which owns eight mining leases in Vanthada village of Prathipadu Mandal, East Godavari district, has claimed that the allegations made on them of sending the laterite that they mine to Vedanta hold no truth, according to a recent report.
In a press release, Andru Minerals stated that some cement companies use their laterite but not Vedanta. Vedanta obtains needed minerals locally as they have a tie-up with the Odisha government, added Andru Minerals in support of their claims that the allegations of exporting laterite to Vedanta are mistaken.
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Andru Minerals also said for further clarification that lease holders used to supply minerals to Andru Minerals in the past. Vedanta bought some of it then while some was exported to China. However, it all happened several years ago.
At present, Andru Minerals has focused its attention on other business and employed a marketing agency for selling the ore in the open market and sold it for INR 830 and INR 930 per tonne. Even if the price of the mineral is estimated to be INR 1,000 per tonne, then the sale value of 10 lakh tonnes, which is the maximum limit of mining, comes to INR 100 crore. So, where the question of INR 180 crore misappropriated comes from, wondered Andru Minerals in the press release.
Besides, the company pointed out that the production of laterite slowed down owing to the economic downturn and COVID-19 crisis. In the 10 hectares allocated to eight lease holders, the mined mineral from 2014 was 83,29,105 metric tonnes, said Andru Minerals.
The company also said that the laterite deposits are not there as expected in the area leased for their mining. So, a part of those eight mines has been closed, while another part is likely to be closed shortly. Aluminium laterite is available in Rajahmundry area and Maharashtra and ferruginous laterite is available in Telangana, Madhya Pradesh, and Karnataka, added Andru.
Andru Minerals explained, “We are mining with all permissions. In January 2019, the then government wrote a letter to the Centre seeking clarification on the ore — whether it was laterite or bauxite. After elections, the mining was stopped waiting for clarity and once it was clarified, mining was resumed.”
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