STATUS NOTE ON MINERAL RESOURCE POTENTIAL

OF ANDHRA PRADESH

INTRODUCTION

The state of Andhra Pradesh spreads over an extent of 2.77 lakh

square kilometers in the south-east of the Indian sub-continent and supports a
population of more than 70 million people. The state is endowed with a variety
of natural wealth. It has large tracts of useful forests covering 22% of the area
and endowed with a variety of flora and fauna. It has a long coast-line of 960
km spreading from Ichapuram taluk in Srikakulam district in the north to
Sulurpet in Nellore district in the south. ( Fig.1).
Administratively, the state of Andhra Pradesh is divided into 23
districts. Physiographically the state can be divided into five regions.
Coastal plains, The Eastern Ghats, The South-Central uplands, The interior
rugged plains, and The North-Western plateau.
Minerals directly or indirectly contribute to industrialisation.
Management of available mineral resources is vital for achieving the desired
goals cherished by the society and the Government
Salient statistics of Andhra Pradesh is presented in Plate-I.

SALIENT STATISTICS OF ANDHRA

PRADESH
Geographical

Area 2.77 lakh sq. km.

Forest cover
22%
Major Producer of:
Barytes, Crysotile, Asbestos, Apatite, Ball
clay, Crude mica, Felspar, Vermiculite
Quartz, Laterite, Silica sand, Dolomite,
Clay other, Limestone, Granite

Share in value of mineral

production
- 8.3%

No. of Mining Leases

Total Lease area

- 51757 hect.

No. of working mines

413

No. of R.P.

38

Area under R.P.

1528

54987 Sq.Km.

PERCENTAGE SHARE OF IMPORTANT MINERAL RESOURCES IN

ANDHRA PRADESH VIS--VIS INDIA

STATUS OF LEASEHOLD AND FREEHOLD DEPOSITS

As on 1.4.2004, the number of mining leases granted are 1528, covering an
area of 51,757 hectares. Further a number of freehold deposits of various minerals are
available for granting. The details are given in Annexure-III.
Distribution of lease area in respect of important minerals is presented in Fig. 5 to 16.
Although, the state has been covered by geological mapping by GSI, but still
there is scope for enhancing the known mineral potential. As a result, the Government
has granted 38 Reconnaissance Permits covering an area of around 55,000 sq. kms.
mainly for diamond, base metals, gold, etc. The following companies are in operation.
Geomysore Survey India Limited.
De Beers India Minerals (P) Limited.
De Beers India Prospecting (P) Limited.
De Beers Survey Pvt. Limited.
CRA Exploration India (P) Limited.
National Mineral Development Corporation Limited.
Anglo-American Exploration India (P) Limited.
BHP Khanij Anveshan Pvt. Limited.
BHP Mineral Pvt. Limited.
AMIL Mining India Pvt. Limited.
Phelps Dodge Exploration India Pvt. Limited.
WSIL Mineral Sands India Pvt. Limited.

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

DISTRIBUTION OF LEASE AREA

MINERAL PRODUCTION SCENARIO

India produces as many as 90 minerals which include 4 fuel, 10 metallic, 50 nonmetallic, 3 atomic and 23 minor minerals. The total value of countrys mineral production
touched the peak level of Rs.75,018 crores during 2004-05 with a contribution of around
2.8% to the countrys GDP.
As regards Andhra Pradesh, the value of mineral production was Rs.6,237 crores
in 2004-05. Almost all important minerals are produced in the state. The principal mineral
produced in the state are coal, natural gas (utilised), limestone, petroleum (crude), barytes,
dolomite, sand (others), iron ore, manganese ore and mica (crude), which together accounted
for 70% of the total value of mineral production in the State during 2004-05. Coal alone
contributed 53% of the total value of mineral production in the state. Value-wise production
of important minerals during 2004-05, vis--vis India is given in Table-2 to 5.
Andhra Pradesh claims the first position among the states in the country with a
contribution of 8.3% of the total value of mineral production. The share of Andhra Pradesh
in the production of principal minerals was barytes 99%, sand (others) 78%, mica (crude)
99%, felspar 83%, vermiculite 15%, quartz 45%, laterite 17%, silica sand 13%, dolomite
22%, clay (others) 17% and limestone 16% in the country.
Mineral-wise production in the state during 2002-03 to 2004-05 with no. of mines
is given in Annexure-II.

Value-wise Production of important

minerals
during 2004-05
(In Rs.crores)

Group wise Value of Production During

2004-05
(In Rs.crores)
Minerals
Fuel

All India

Andhra Pradesh
57228

3953

Metallic

8194

55

Minor

7134

1864

Non-Metallic

2461

365

All Minerals

75018

6237

MINERAL-BASED INDUSTRIES
A number of mineral-based industries exist in the state. The details such as
industry-wise number of plants with installed capacity is given in Annexure- .
Important industries in the State are steel plants of RINL, a number of cement
plants, ceramic and refractory plants, etc.
ROLE OF INDIAN BUREAU OF MINES IN PROMOTING
CONSERVATION OF MINERAL RESOURCES

The Indian Bureau of Mines (IBM) has been promoting conservation

of mineral resources through:
Inspection of mines.
Geological studies.
Scrutiny/approval of Mining Plans/schemes/mine closure plans.
Conducting Environmental Studies.
Evolving technologies for up gradation of low/marginal grades of
ores and identification of avenues for their utilisation.
Preparation of feasibility reports for mining beneficiation projects.
Preparation of mineral maps.
Preparation of National Mineral Inventories.
Rendering Advisory Services to the Governments.
Functioning as Databank for Mines and Minerals.
Generating Technical and Statistical Publications.
Imparting training to mining industry personnel.