VIJAYAWADA: Making it clear that bauxite mining will not be allowed in Visakhapatnam Agency area, officials of the Mining department have said that the committee formed by the State government is exploring options to find a solution to the international arbitration raised by Ras-Al-Khaimah Investment Authority (RAKIA) over the cancellation of the Bauxite Supply Agreement (BSA) entered into between the AP Mineral Development Corporation (APMDC) and ANRAK Aluminium Limited.
“The State government will not allow bauxite mining within the State. The government policy is to revive the plant in Visakhapatnam district by bringing bauxite, alumina and other raw materials from outside the State,’’ said Principal Secretary (Mines) Gopal Krishna Dwivedi, who is leading the committee of senior officials set up for resolving the issue.Speaking to TNIE, Dwivedi said that the committee will study all the issues, such as generation of employment, expected revenue to the government with the revival of the plant.The State government cannot go ahead without getting the Centre’s approval, he said, adding that the committee will go through all the aspects and suggest options for running the plant.
Bauxite is available in Odisha, Chhattisgarh, Jharkhand and some other States and mining can be done in any of these States so as to supply the raw materials required for the plant near Visakhapatnam, if the Centre and State government give the green signal for commencing operations of the company, Gopal Krishna Dwivedi said. With regard to the RAKIA arbitration, sources said that the government was exploring various options to settle the issue.
RAKIA and the Penna Group jointly made investment on the alumina refinery near Makavarapalem based on the MoU signed with the APMDC and clearances given by the Ministry of Mines, Government of India, for supply of bauxite ore from the Agency areas. The problem arose following the decision of the Andhra Pradesh Cabinet last year to scrap the MoU with Anrak Aluminium Limited (AAL), a joint venture formed by RAKIA and its Indian partner Penna Group, to execute the project. Peeved over cancellation of the agreement, RAKIA, which opted for arbitration, sought compensation over an investment of $44.7 million in the project.