The Department of Mines and Geology, which is probing the alleged mining of bauxite by Andru Minerals, has, prima facie, found that the company flouted norms to excavate 2 lakh tonnes of mineral through the Mineral Dealer License (MDL) awarded to it.
The company had closed down its operations at Vanthada village of Prathipadu mandal in East Godavari district in 2019.
Addressing the media here on Wednesday, Principal Secretary (Mines, Panchayat Raj and Rural Development) Gopal Krishna Dwivedi and Director (Mines and Geology) V.G. Venkat Reddy said the department was gearing up to levy a penalty on the company for “flouting the rules and excavating unaccounted quantity of laterite.”
Mr. Venkat Reddy said that during the inquiry initiated following complaints from various quarters, it was found that the company had supplied 34 lakh tonnes of mineral to Vedanta, which was into aluminium business. Similarly, it had exported 4.5 lakh tonnes of laterite to China, he said.
“This gives rise to suspicion. Firstly, there is little of laterite exports and secondly, laterite is not used in aluminium companies. So, prima facie, the company had mined bauxite,” Mr. Venkat Reddy said.
When the lease was given to the company, it was estimated that there was no bauxite as aluminium content was less than 38% at the pithead. So, it was concluded that the mineral available there was laterite.
“But, with these developments, there arises a doubt that the company excavated bauxite from eight mining leases. Inquiry is going on,” he added.
Mr. Dwivedi said it was yet to be ascertained whether the department officials had colluded with the company, or was there any dereliction of duty on their part. “Action will be taken against the officials who are responsible for the irregularities,” he said.