KADAPA: Leaseholders of iron ore mines in the district are having sleepless nights after the arrest of mining baron and former Karnataka minister Gali Janardhan Reddy by the CBI for his involvement in the mining scandal. The iron ore mines in Kadapa have also come under the scanner of Justice MB Shah Commission set up by the Supreme Court to probe illegal mining of mineral wealth in Andhra Pradesh, Karnataka and Goa. The Shah Commission has asked the Mines and Geology Department to submit a report on mining leases given from 200405 to 200809 in the district and the quantum of iron ore mined during the period. Iron ore mines are mainly located in Pendlimarri mandal in the district. There are nine leaseholders of mines. Congress leader Kandula Rajamohan Reddy is prominent among the mining leaseholders. His company IBC Limited took 18.623 hectares of land on lease in Ganganapalle. Rajarajeswari Dolomites owned by the Kandula family also got a lease to mine iron ore in 163.482 hectares in Chavali village. According to the Mines and Geology officials, based on the percentage of iron in the ore, it is graded. Ore with 62 to 67 per cent of iron comes under A Grade, 58 to 62 per cent under B Grade, 52 to 58 per cent under C Grade, and below 52 per cent under low grade. Only low grade iron ore is available in Kadapa.
But the companies got permits to export iron ore on a large scale. It is suspected that the leaseholders might have exported high grade iron ore illegally mined by Gali on their permits. The Mines and Geology Department has issued notices to the nine leaseholders seeking details of the number of export permits and the total quantity of iron ore exported. The irregularities in mining of iron ore and its exports are likely to surface during the inquiry.