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Opportunities in Mining:
Andhra Pradesh is the second largest store house of Mineral Resources in India.  A total of 48 minerals were located with vast explored resources of coal, limestone, slabs, etc. and good resources of oil and Natural Gas, Manganese, Asbestos, Iron Ore, Ball Clay, Fire Clay, Gold Diamonds, Graphite, Dolomite, Quartz, Tungsten, Steatitic, Feldspar, Silica Sand etc.

The State stands second in value of mineral production, contributing 8 percent (Rs.4857 Crores) of the country's mineral value production of Rs. 59509 Crores and approximately Rs. 634 Crores by way of foreign exchange. It produces about 70 million tonnes of industrial minerals and 8 million cubic metres of dimensional stones and building material, contributing nearly Rs. 770 Crores to the state exchequer.

The State stands fourth in Mineral value of production, contributing 7 per cent (Rs.4030 crores) of the country’s mineral value of production of Rs.56807 crores and approximately Rs.498 crores by way of foreign exchange.  It produces about 66 million tonnes of Industrial minerals and seven million cubic meters of dimensional stones and building material contributing nearly Rs.665 crores to the State Exchequer.

The State has identified the mining sector as one of the growth engines for the overall development of industry and infrastructure.  With its vast explored mineral potential and natural infrastructure, forms a natural opportunity for investment and development of minerals and mining projects.  The State envisages mineral projects with the participation and investment from the private sector. 

Opportunities Galore :
Rich reserve of minerals are awaiting exploitation with Private Sector investments in the following fields :


  • 700 million tonnes of metal grade Bauxite deposits in close proximity to Visakhapatnam Port.

  • Opportunity available for establishing an Integrated Bauxite Mining, Manufacturing Alumina / Aluminum Plant.

Gold & Diamond

  • Gold occurs in 11 districts and Diamond is found over 50,000 sq.kms in 9 districts.

  • Opportunities for exploration and exploitation of Gold and Diamond.

Beach Sands

  • 16 stretches containing good deposits of Ilmenite, Rutile, Zircon, Garnet have been identified along the East Coast.

  • Opportunities available for Beach Sand Mining, Mineral Separation and setting up of Titanium dioxide and Synthetic Rutile Plants, etc.


  • Worldwide known Galaxy Granite, Srikakulam Blue, Warangal and Khammam Black, occur in abundant quantities.

  • Opportunity available for developing a Granite Park in joint ventures.


  • Largest source for various Clays, Feldspar, Quartz, Silica Sand, Rare Earths (Titanites / Zirconites) for the manufacture of ceramics.

  • Opportunity available for development of advanced ceramics like Electro and Mechano Ceramics.

Mineral Based Industries:
Andhra Pradesh with varied geological formations, contain rich & variety of industrial minerals and building stones.  It is historically known for mineral potential and repository for future exploration.  The state is known for large exclusive deposits of Barytes and Galaxy granite in the international market.  Minerals like coal, oil and Natural gas, barytes, Limestone, diamond, gold beach sand bauxite, ball clay fire clay, dolomite, dimensional stones etc are still under tapped or untapped.

Andhra Pradesh is an important destination for host of minerals in the entire southern India.  The wide variety of mineral produce from the State is being traded or consumed in Power, Metals, Alloys, Cement, Chemicals, Paint, Cosmetic, Glass, Ceramics, Refractory, Refinery and manufacture of various down stream industries.  The mineral produce from the State cater a wide range of industries and have potential for expansion and development of new industries.

Natural Gas - The Preferred Fuel
Natural Gas is rapidly emerging as the preferred fuel all over the World as well as in India since it is more environment  friendly, convenient to transport and use and has several techno-economic advantage. The share of gas  in the World energy mix is at present 23 percent, while that of oil is 40 percent. Thus, 63% of world energy comes from hydrocarbons. In India, hydrocarbons account for 44.4% of energy mix, 34% by oil and 10.4 percent by natural gas. Though natural gas was initially used as a petro-chemical feedstock, it is now used in the fertilizer, industrial, power and domestic sectors and more recently, in the transport sector.

Recent Spectacular Discoveries Of Gas
With continuous surveys and offshore exploration for gas in KG Basin, spectacular new discovery of gas was made by Reliance Industries Limited (RIL) in October, 2002. RIL struck 9 Trillion cubic Feed (tcft) of gas reserves, the biggest gas find in India in three decades, in the exploration block called KGBDW-6 (renamed asKG-DWN-98/3) in deep waters, 150 Kms off the Andhra Pradesh Coast near Kakinada. Cairn Energy also announced discovery of about  1 tcft of gas in Krishna Godavari Basin. The present estimates indicate that RIL can supply 40 MMSCMD of gas per day after all the facilities are built and gas transported to landfall point near Kakinada. ONGC, Gujarat State Petroleum Corpn. Ltd and Reliance Industries Limited are further intensifying exploration for gas, both onshore and offshore in Krishna Godavari Basin and we may expect considerable additions to gas availability.

Boost For Industrial And Economic Growth
Discovery of large quantity of natural gas in KG Basin is expected to lead to long term contracts with reasonable prices. Such as situation provides exciting opportunities for industries in Andhra Pradesh to become internationally competitive and spur rapid economic growth. The Government of Andhra Pradesh is keen to ensure that maximum quantity of gas found in KGB is utilized in AP to overcome the energy shortage, give impetus to new industries,  create employment opportunities and contribute to economic value addition and exports

For further information, you may contact: 
Director of Mines and Geology,
Government of Andhra Pradesh.
Phone: 91 - 40 – 23220649
Fax: 91 - 40 – 23225519
E-mail: dmgap@rediffmail.com


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