Vedanta Named Preferred Bidder for Andhra Pradesh’s Punnam Manganese Block
Vedanta Limited, the Indian multinational mining company, has been declared the preferred bidder for the Punnam manganese block in the Indian state of Andhra Pradesh.
The Punnam manganese block spans 152 hectares and is currently at the G4 level of exploration, indicating an early stage of identifying potential mineral-rich zones, according to a report by PTI via the Financial Express.
In a filing to the Bombay Stock Exchange, Vedanta confirmed:
“The company has been declared as the preferred bidder for the Punnam Manganese block in Andhra Pradesh by the Department of Mines & Geology.”
The granting of the composite licence for the block is subject to several conditions, including the submission of a performance bank guarantee, obtaining all required statutory clearances, and executing necessary agreements with the state government.
A composite licence—officially termed a prospecting licence-cum-mining lease—grants the holder the right to both explore and evaluate the extent of a mineral deposit. If exploration results are successful and economically viable, the company will receive the right to mine the resource in the designated area.
Vedanta’s Energy and Restructuring Plans
Last week, Vedanta reaffirmed that coal will remain the key energy source for its mining operations for the near term, despite ongoing efforts to expand renewable energy use.
The company aims to reduce coal dependency to 50–60% within three to four years by integrating more renewable sources.
Meanwhile, last month, the Indian government raised objections to Vedanta’s proposed restructuring into four separate business units, citing concerns that the move could limit its ability to recover outstanding dues.
The exact amount of these dues has not been disclosed.
During a hearing at the National Company Law Tribunal, the government also accused Vedanta of altering the demerger scheme after receiving approval from the Securities and Exchange Board of India (SEBI).
If Vedanta successfully secures the Punnam manganese block licence, it will bolster the company’s position in the manganese market and enhance its exploration portfolio in Andhra Pradesh.
The company continues to navigate regulatory and operational challenges as it pursues growth and diversification in the mining sector.
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