The Hindu : Six companies show interest in diamond mining

Online edition of India's National Newspaper
Wednesday, Feb 18, 2004

Andhra Pradesh

Andhra Pradesh

Six companies show interest in diamond mining

By Our Staff Reporter

NALGONDA, FEB. 17. At least six companies have submitted applications to the State Government for mining diamonds, gold and other precious metals along the Krishna, particularly in Nalgonda district.

Apparently on the basis of surveys conducted in and around the Krishna basin, the companies believe that it has reserves of diamond-bearing kimberlite pipes. A prominent international company which operates in South Africa is also in the fray to get the permission for the preliminary "reconnaissance survey'' of certain pockets in the district, according to sources. ACC Riotinto Exploration Limited and one Siddartha Jain have sent in applications to the Mines and Geology Department recently.

While the ACC Riotinto has sought permission to launch a survey in 2,800 square km of area in Nalgonda, Chityal, Munugode, Chandur, Tipparthy and Chalkurthi mandals, Mr.Jain asked for 3000 sq. km. in Chandur, Devarakonda, Chalkurthi and Gurrampode, it is learnt. Other companies that vie for the permission are B.Vijayakumar Technological Services Private Limited of Mumbai (for 4800 sq.km. of area), the Mines and Management India Private Limited of New Delhi (7.70 sq.km.), the Ramgad Mineral and Mines Private Limited, Hospet (4548 sq.km.), and the BHP Khanija Anveshan Limited of New Delhi (4724 sq.km. in three different areas).

Interestingly, the Mines Management India Private Limited mentioned in its application form that it would like to mine diamonds, garnet and topaz. Similarly, the BHP Khanija Anveshan Limited wants to cover some pockets in Nalgonda, Khammam and Krishna districts. After clearing the application(s) for the reconnaissance of diamonds and gold, the Government will grant a two-year prospective licence for the eligible company or companies, a geologist in the Mines & Geology Department told The Hindu on Monday. The Government may lease the specific area to the same company for 20 years later.

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