APMDC bags coal mine in Jharkhand

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.