**Executive Summary**
This document is an answer to an unstarred question in Lok Sabha regarding rare earth and critical mineral deposits in Andhra Pradesh, answered on December 3, 2025. It details exploration projects, mining rights granted to PSUs, and plans for processing facilities in the state since 2022-23. A letter of intent was issued on May 15, 2025, to Hindustan Zinc Limited for a composite license for the Balepalyam Tungsten Block, Anantapur District.
**Key Points / Main Content**
* **Exploration Projects:**
* The Geological Survey of India (GSI) has undertaken 38 mineral exploration projects for critical mineral commodities since 2022-23.
* Exploration areas include Vizianagaram, Nellore, Srikakulam, and West Godavari, focusing on molybdenum, graphite, cobalt, lithium, and phosphorite.
* Resources have been augmented for minerals like graphite, tungsten, cobalt, and cadmium in East Godavari, Alluri Sitharama Raju, Anantapur, Vizianagaram and YSR (Kadapa) districts.
* The National Mineral Exploration and Development Trust (NMEDT) has approved 17 mineral exploration projects, including 3 critical mineral projects in YSR (Kadapa), Prakasam, and Alluri Sitharama Raju districts.
* **Mining Rights:**
* The Ministry of Mines has granted prior approval for mining leases for Beach Sand Minerals (BSM) in Andhra Pradesh.
* Approval for Andhra Pradesh Mineral Development Corporation (APMDC) for Gara Mandal, Srikakulam District (670.77 Ha and 239.08 Ha) was granted on May 19, 2023.
* Approval for APMDC for Bhimunipatnam Deposit, Visakhapatnam District (90.15 Ha) was granted on June 14, 2022.
* A Letter of Intent (LoI) has been issued to Hindustan Zinc Limited on May 15, 2025, for a composite license for the Balepalyam Tungsten Block in Anantapur District.
* **Processing Facility:**
* The Andhra Pradesh government is in talks with investors to establish critical mineral processing facilities in Visakhapatnam and Machilipatnam.
**Impact Analysis**
**GSI and NMEDT**
* **Impact:** These organizations are tasked with conducting mineral exploration projects to identify and augment resources for critical minerals.
* **Action Required:** Continue exploration projects in Andhra Pradesh, focusing on identified districts and minerals.
**Andhra Pradesh Mineral Development Corporation (APMDC)**
* **Impact:** APMDC has been granted mining leases for Beach Sand Minerals (BSM) in specified blocks.
* **Action Required:** Proceed with mining operations in the approved areas, adhering to relevant regulations.
**Hindustan Zinc Limited**
* **Impact:** Granted a Letter of Intent (LoI) for a composite license for tungsten block.
* **Action Required:** Follow up on the LoI to secure the composite license for the Balepalyam Tungsten Block and proceed with mining operations.
**Investors**
* **Impact:** Potential opportunity to establish critical mineral processing facilities in Andhra Pradesh.
* **Action Required:** Evaluate the investment opportunities in Visakhapatnam and Machilipatnam and collaborate with the Andhra Pradesh government.
**Government of Andhra Pradesh**
* **Impact:** Tasked with establishing critical mineral processing facilities in the state.
* **Action Required:** Continue to engage with investors to set up processing facilities in Visakhapatnam and Machilipatnam.
**The Ministry of Mines**
* **Impact:** Oversees the exploration and mining activities in Andhra Pradesh.
* **Action Required:** Continue to monitor and regulate the mining activities and ensure compliance with the MMDR Act, 1957.
Key Entities Referenced
Ministry of Mines: The primary government body responsible for administering the rules, regulations and laws relating to mines and minerals in India, and is the subject of the parliamentary question.
Andhra Pradesh: The Indian state where the rare earth and critical minerals exploration and mining activities are taking place, making it central to the policy's scope.
MMDR Act, 1957: The Mines and Minerals (Development and Regulation) Act, 1957, the key legislation governing the grant of mining leases in India, referenced in the document.
Geological Survey of India: An attached office of the Ministry of Mines, responsible for the exploration of mineral resources in India, including the projects mentioned in the document.
National Mineral Exploration and Development Trust (NMEDT): An organization that funds mineral exploration projects, including those in Andhra Pradesh as mentioned in the document.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION NO.623
ANSWERED ON 03.12.2025
RARE EARTH AND CRITICAL MINERALS IN ANDHRA PRADESH
623. SHRI P V MIDHUN REDDY:
Will the Minister of MINES be pleased to state:
(a) whether the Government has identified rare earth and critical mineral deposits in
coastal and tribal regions of Andhra Pradesh;
(b) the details of exploration undertaken;
(c) whether Private or PSUs have been granted mining rights, if so, the details thereof;
and
(d) whether the Government is planning to establish a processing facility in the State,
if so, the details thereof?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) & (b): Yes. Since 2022-23, the Geological Survey of India, an attached office of the
Ministry of Mines, has taken up 38 mineral exploration projects for critical mineral
commodities such as molybdenum, graphite, cobalt, lithium, Phosphorite etc. in
different districts of Andhra Pradesh including Vizianagaram, Nellore, Srikakulam,
West Godavari etc. and has augmented resources for critical minerals such as
graphite, tungsten, cobalt and cadmium in East Godavari, Alluri Sitharama Raju,
Anantapur, Vizianagaram and YSR (Kadapa) districts. The details are given at
Annexure.
Further, the National Mineral Exploration and Development Trust (NMEDT) has
approved 17 mineral exploration projects in Andhra Pradesh which includes 03
projects of critical minerals located in YSR (Kadapa), Prakasam, and Alluri Sitharama
Raju districts.
(c): The Ministry of Mines has granted previous approval of Central Government
under Section 5(1) of the MMDR Act, 1957 for grant of mining lease for Beach Sand
Minerals (BSM) in Andhra Pradesh for following blocks.
Sl Area Name of PSU/Corporation Date of
No approval
1 670.77 Ha and 239.08 Ha. Andhra Pradesh Mineral 19.05.2023
Gara Mandal of Srikakulam Development Corporation (APMDC)
District2 90.15 Ha. APMDC 14.06.2022
Bhimunipatnam Deposit,
Visakhapatnam District
Further, Letter of Intent (LoI) has been issued for grant of composite licence to
Hindustan Zinc Limited on 15.05.2025 for Balepalyam Tungsten Block, Anantapur
District.
(d): The Government of Andhra Pradesh has taken up with investors to establish
critical mineral processing facilities at Visakhapatnam and Machilipatnam.
*****Annexure
Critical mineral resource augmented by GSI for Andhra Pradesh since 2022-23
Resource
Sl. Field UNFC
District Commodity Block (in Million Grade
No. Season Stage
Tonne)
0.09% avg.
Tungsten grade of WO3
1 Anantapur 2022-23 Balepalyam G3 0.0794
ore at 0.03% cut-
off
390.33 ppm
avg. grade at
2 Vizianagaram 2022-23 Cobalt ore Gadabavalasa G3 0.066
200 ppm Co
cut-off
Avg. Co grade
3 360 ppm at
Vizianagaram 2022-23 Cobalt ore Gumpamkonda G2 0.63
200ppm Co
cut-off
151.67 ppm
Cadmium Cd avg. grade
YSR (Kadapa) 2022-23 Jaukulapalle G2 0.7
4 ore at 100 ppm
cut-off
Alluri Avg. grade of
Sitharama 2023-24 Graphite ore Utla G3 0.625 9% FC at 2%
5
Raju cut-off