THOOTHUKUDI/KANYAKUMARI: The Tamil Nadu Minerals Limited (TAMIN) and IREL (India) Limited, a Government of India undertaking, are gearing up to establish mineral separation plants at Sathankulam theri and Kuthiraimozhi theri, also known as the red sand desert, in Thoothukudi at an estimated cost of `1,500 crore each. Both the companies had earlier signed a Memorandum of Agreement (MoU) in the presence of Chief Minister MK Stalin on January 9, 2023, to form a joint venture (JV) so as to commercially utilise the mineral resources of theri forests scientifically, without causing environmental pollution.
In line with the initiative, Additional Chief Secretary of Natural Natural Resources Department cum Managing Director of Tamil Nadu Transport Development Finance Corporation K Phanindra Reddy visited IREL (India) Limited at Manavalakurichi in Kanniyakumari district on Thursday and Friday, analysed the various sections and departments of the premises, and studied its functions and operations. He also visited the units of a wet concentration plant, drier, mineral separation and processing units, said sources.
According to official sources, a plant similar to that of IREL with varied capacities and new technologies are to be commissioned in the theri forests of Thoothukudi, as per the the JV agreement. The board of directors of TAMIN would include the managing director, geology and mining commissioner and additional secretary of finance. Whereas, director (technical), director (marketing) and director (finance) will feature on the IREL side, sources added.
The decision for the joint venture was mooted after the union government prohibited granting licences for mining heavy minerals in February, 2019. The mineral separation plants in Kuthiraimozhi and Sathankulam are expected to generate a revenue of `1,075 crore annually and provide employment opportunities to nearly 4,000 people in the vicinity. The separated minerals will be value added, and supplied to the atomic energy sector of the country and other industries, sources said. It may be noted that the southern coastal areas of the state and theri forests are rich in heavy minerals such as garnet, ilmenite, zircon, rutile, and monazite, an atomic mineral.
The government order issued by the Industries, Investment Promotion and Commerce Department on October 14, 2022, granted the in-principle approval for TAMIN to enter an MoU with IREL for mining and separation of beach sand minerals. The board of TAMIN had permitted its managing director to send proposals to IREL on May 2, 2019.
Though the Chairman of Atomic Energy Commission and Secretary of Department of Atomic Energy suggested IREL to hold an equity of 51%, TAMIN rejected it saying that the state government played an equal role in the development and utilisation of the resources, in addition to handling local issues and land-related disputes. Following this, an equal shareholding (50%) was agreed upon, which would further reflect as an equal number of directors in the JV between the two companies. Also, the post of managing director or chairman would be rotated once in every three years.