Vedanta, an Indian multinational mining company, has been declared the preferred bidder for a manganese block in the Indian state of Andhra Pradesh.
The Punnam manganese block, covering an area of 152 hectares (ha), is currently at the G4 level of exploration, indicating the initial stage of identifying potential mineral-rich regions, reported PTI via the Financial Express.
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“The company has been declared as the preferred bidder for the Punnam Manganese block in Andhra Pradesh by the Department of Mines & Geology,” the company stated in its Bombay Stock Exchange filing.
The granting of the composite licence for the block is contingent upon several conditions including the submission of a performance bank guarantee, obtaining statutory clearances and the execution of necessary agreements with the state government.
A composite licence, officially termed a prospecting licence-cum-mining lease, provides the holder with the right to both explore and determine the extent of a mineral deposit. If the exploration proves successful and economically viable, the company will be granted the right to mine the mineral in the designated area.
Last week, Vedanta stated that it will continue to use coal as the key energy source for its mining operations, in spite of efforts to increase renewable energy use.
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By GlobalDataThe company plans to decrease its dependence on coal to 50–60% within three to four years by integrating more renewable sources.
Last month, the Indian Government raised objections regarding Vedanta’s proposed reorganisation into four separate units.
The government expressed concerns that this move might impede its capacity to collect outstanding payments. The exact amount of dues claimed by the government has not been disclosed.
During a hearing at the National Company Law Tribunal, the government accused Vedanta of changing the demerger scheme following approval from the Securities and Exchange Board of India.
