ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LIMITED
(A State Government Undertaking)
8-3-945, II & III Floors, Pancom Business Centre,
Ameerpet, Hyderabad-500073, India
Tel: +91-40-23733153, 23733154, Fax: +91-40-23733152
E-mail:apmdcltd@yahoo.com: Website: www.apmdc.ap.gov.in
April 2010
EXPRESSION OF INTEREST
FOR
OPERATION OF HEAVY MINERAL BEACH SAND MINES FOR APMDC
AND
SETTING-UP OF MINERAL SEPARATION PLANTS & VALUE ADDED INDUSTRIES
IN PUBLIC PRIVATE PARTNERSHIP (PPP) MODE
EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
(To be submitted on the Official Letterhead of Prospective Bidder)
Date:
To
The Vice Chairman & Managing Director,
A.P.Mineral Development Corporation Limited
Pancom Business Centre,
II & III Floor, 8-3-945,
Ameerpet, Hyderabad-500073
Phones: +91-40-23733153 / 23733154 ; Fax: +91-40-23733152
Email:apmdcltd@yahoo.com
Dear Sir
Sub:
Global Invitation for Expression of Interest for Operation of Heavy Mineral Beach
Sand Mines for APMDC and Setting-up of ‘Mineral Separation Plants’ & ‘Value
Added Industries’ in Public Private Partnership (PPP) Mode.
With reference to the above advertisement, we hereby file this ‘Expression of Interest (EOI)’
for Operation of Heavy Mineral Beach Sand Mines for APMDC and Setting-up of ‘Mineral
Separation Plants’ & ‘Value Added Industries’ at ……………………………………….. (Location
Interested), in Public Private Partnership (PPP) Mode, either individually or as a consortium.
We understand that this is an initial expression of interest on our part and mere submission of
this EOI does not entitle us to receive any documents or be invited to bid for this project.
APMDC has the right to amend/modify or withdraw the Invitation or cancel the whole process.
In case we are short-listed we hereby undertake to submit all required documents in support of
our submissions.
We are enclosing a Demand Draft for Rs.5,000 (non-refundable) drawn in favour of ‘The Andhra
Pradesh Mineral Development Corporation Ltd.’ payable at Hyderabad, towards the cost of EOI
Document and EOI Processing Fees for the above mentioned location vide
D.D.No…………………, dated……………….., drawn on ………………………………… Bank,
………………………….. Branch, payable at Hyderabad.
Thanking you
Yours truly,
Authorized Signatory
Name:
Designation & Seal:
1
EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
Andhra Pradesh Mineral Development Corporation Limited
(A State Government Undertaking)
FORMAT FOR EXPRESSION OF INTEREST
Name of Project:
Operation of Heavy Mineral Beach Sand (HMBS) Mines for APMDC and Setting-up of ‘Mineral
Separation Plants’ & ‘Value Added Industries’ in Public Private Partnership (PPP) Mode.
Interested Location:
(Please refer Annexure-II for identified ‘HMBS’ locations and please select any one of the location
of your preference. If you are interested in expressing your interest for more than one location,
please furnish separate EOI Document with a Demand Draft towards the cost of EOI Document &
EOI Processing Fee separately with each EOI Document)
Name and details of Applicant and its representative authorized to file this EOI:
Full Name
Designation
Name of Organization
Address
Phones
Fax
Mobile
Email
Website
Legal Constitution of Applicant:
(Public Limited/Private Limited/Partnership/Proprietorship etc)
1.
2.
3.
4.
Status / Constitution of the Firm:
Registration No.:
Date of Registration:
Place of Registration:
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
Current nature of business or activities:
(Briefly describe not exceeding four lines)
Last 3 (Three) year’s Turnover of the Applicant / Lead Developer
(As per the Audited Balance Sheet / Annual Reports)
FY 2008-09 :
FY 2007-08 :
FY 2006-07 :
Net Worth of the Applicant / Lead Developer
(Computed from the latest Audited Balance Sheet / Annual Reports)
FY 2008-09:
Brief history of the operations and activities of the Applicant:
(Not exceeding eight lines; to include details of Principal Promoters and Joint Venture Partners)
Name and details of Business House/Group to which applicant belongs:
(Not exceeding four lines)
Name of the Group
Group Company/ies
Primary Activity
Turnover
(FY 2008-09)
Previous relevant experience of Development and/or Operations and/or Management of
similar projects:
1.
2.
3.
4.
5.
6.
7.
Relevant Experience
Achievements in the Relevant Fields
Technologies Adopted
Infrastructure Available
Key Personnel
R&D Facilities Available
Any other useful information
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
Proposed Consortium/Collaboration for the Development, Operations, Management &
Marketing for the proposed Projects:
Nature of Consortium/
Collaboration proposed
Proposed Partner
Partner’s Particular
Expertise
Partner’s Turnover
(FY 2008-09)
Briefly explain your ‘Plans, Program & Project Components’ considered for the Operations
of ‘Heavy Mineral Beach Sand Mines’ for APMDC and Setting-up of ‘Mineral Separation
Plants’ & ‘Value Added Industries’ in Public Private Partnership (PPP) Mode.
(Please attach a separate sheet, if required)
1. Names of the Minerals proposed for Mining
2. Location & Extent proposed for Mining (Please specify Area Code from Annexure-II)
3. No. of ‘Mineral Separation Plants’ / ‘Value Added Industries’ Proposed
4. Technologies proposed
5. Plant & Machinery and Equipment proposed
6. Operations & Management proposed
7. R&D proposed
8. Proposed Cost of Mining Infrastructure
9. Proposed Cost of ‘Mineral Separation Plants’
10. Proposed Cost of ‘Value Added Industries’
11. Proposed Total Cost of the Project
12. Proposed Funding / Means of Finance
13. Marketing Arrangements envisaged
14. Key Personnel
15. Any other useful information
16. Your USP
Note:
(i)
(ii)
Year refers to a twelve months period from 1st April to 31st March. In case of those
companies / firms where the financial / accounting year is the calendar year, information
for the calendar year corresponding to the said financial year may be given.
Applicants shall attach relevant Documents/Brochures/Corporate Literature.
I/We declare that the information stated hereinabove is accurate.
Signature of Authorized Signatory:
Full Name:
Designation:
Name of the Firm / Company with Stamp / Seal:
Date:
4
EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LTD
(A State Government Undertaking)
Pancom Business Centre, 8-3-945, Ameerpet, Hyderabad 500 073, India
Tel: +91 40 23733153, 23733154, Fax: +91 40 23733152
E-mail:apmdcltd@yahoo.com Website: www.apmdc.ap.gov.in
GLOBAL INVITATION FOR EXPRESSION OF INTEREST
FOR
Operation of Heavy Mineral Beach Sand Mines for APMDC and Setting-up of
Mineral Separation Plants & Value Added Industries in PPP Mode
TERMS AND CONDITIONS
A.
INTRODUCTION
1.
The Andhra Pradesh Mineral Development Corporation Ltd. is a fully Owned State
Company, incorporated on 24th Feb., 1961 under the Companies Act 1956.
2.
The Objectives of the Corporation are:
 Development of Mineral Resources including Exploration, Exploitation and
Beneficiation.
 Development of Mineral Industry with Private Participation.
 Identification of the Best Technology and Investment for development of Mineral
Resources.
B.
EXPLOITATION OF HEAVY MINERAL BEACH SANDS
A.P. Mineral Development Corporation Ltd (APMDC) is playing a pro-active role in the
exploitation of valuable ‘Mineral Resources’ and ‘Mining Infrastructure Development’ in
the State and is set to undertake innovative and definitive measures. As part of its
efforts to promote Mining Infrastructure and Value Added Industries, APMDC has
applied for the grant of ‘Mining Leases’ for ‘Heavy Mineral Beach Sand’ (HMBS) in
Visakhapatnam, East Godavari, West Godavari and Krishna Districts in Andhra
Pradesh.
The Beach Sands along the coastline of these Districts contain valuable Heavy
Minerals, inter-alia such as Garnet, Ilmenite, Rutile, Leucoxene, Zircon, Sillimanite and
traces of Monazite. APMDC intends to invite Operators and Joint Venture (JV) Partners
for the Mining and Setting-up of Mineral Separation Plants & Value Added Industries.
A brief note on exploitation of heavy mineral beach sands and establishment of mineral
separation plants and value added industries in Andhra Pradesh for APMDC in Public
Private Partnership (PPP) Mode is furnished in Annexure-I.
C.
MINING LEASE APPLICATIONS – Proposed Areas under EOI
APMDC filed Mining Lease Applications to the Government for the areas in
Visakhapatnam, East Godavari, West Godavari and Krishna Districts in the State. The
details of these locations along with proposed areas are furnished in Annexure-II.
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
D.
APMDC
INVITATION FOR EXPRESSION OF INTEREST (EOI)
Expression of Interest (EOI) is invited from the interested parties having adequate
experience and financial capabilities for Operating the HMBS Mines of APMDC, Settingup of Mineral Separation Plants & Value Added Industries, their Operation &
Maintenance and Marketing of the End Products & Byproducts.
E.
SUBMISSION OF EXPRESSION OF INTEREST (EOI) DOCUMENTS
(a) The EOI Document in the prescribed format along with the Demand Draft towards
commitment fees in a sealed cover duly subscribed as under shall be submitted
within the time and date as stipulated in the Notification either in person or by post.
The same will be opened at 04-00 PM (IST-16.00 Hrs) the same day in the presence
of the representative of the Companies present provided such person representing
the ‘Applicant’ shall produce a letter of authorization therefor.
(b) EOIs received after the scheduled time will be rejected and if received by post will
be returned.
(c) APMDC reserves the right to reject any or all the EOIs received without assigning
any reason therefor. APMDC also reserves the right to amend/modify the contents
of the Notification or withdraw or cancel the whole process including issue of RFP.
(d) APMDC reserves the right to evaluate the EOIs received on such criteria, as it may
consider appropriate and fit for short-listing for issue of RFP.
(e) APMDC reserves the right to issue RFP to the short-listed Applicants and/or issue a
fresh Global Advertisement for RFP as it considers necessary and required /
demanding in the given circumstances. No ‘Applicant’ submitting the EOI shall have
any right to question the method adopted by APMDC and its decision is final.
(f) Mere submission of EOI does not vest any right in the ‘Applicant’ for being shortlisted.
(g) Any corrupt practice or undue influence on the part of the ‘Applicant’ shall disqualify
the ‘Applicant’ from further processing its EOI.
F.
EXPRESSION OF INTEREST (EOI) EVALUATION CRITERIA
Evaluation Criteria at EOI Stage for Selection of Bidders for Operation of Heavy Mineral
Beach Sand Mines for APMDC and Setting-up of ‘Mineral Separation Plants’ & ‘Value
Added Industries’ in Public Private Partnership (PPP) Mode is as below.
Stage-I: Invitation of EOI
Expression of Interest (EOI) is invited in the prescribed format for understanding the
response from the investors / entrepreneurs.
Stage-II: Criteria for Short listing of EOIs

Firms having experience in the Development / Operations & Management of Similar
Mining Projects, Mineral Separation Plants and Value Added Industries.

Proposed tie-ups with the reputed Global / National players in the Development /
Operations & Management of Similar Mining Projects, Mineral Separation Plants and
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
Value Added Industries are also considered as experience. (Proposed Tie-up Letter
should be enclosed)

Investment capabilities will be assessed based on the current business turnovers for the
last 3 years and Net worth computed from their Audited Balance Sheets. (Audited
Balance Sheets, for the relevant years should be enclosed.)

EOIs without required information or enclosures are liable to be rejected.
E.
TERMS AND CONDITIONS
1.
The ‘Applicant’ shall be a Company or Partnership / Proprietorship Firm (hereinafter
referred to as the ‘Company’) registered under respective laws of the land and is in
active operations at present.
2.
The Company may submit the EOI either as a single entity or in consortium with one
more Company with specific roles and responsibilities defined.
3.
After short-listing the EOIs, Request for Proposal (RFP) will be issued to the short-listed
Companies only. The RFP will be a three-stage document for technical proposal for
pre-qualification; techno-business proposal; and commercial bid.
4.
While the RFP will contain all the details required for submission, evaluation and other
terms and conditions for selection. The Companies are requested to note that the terms
and conditions of RFP, inter-alia, include:
(a) The selected ‘MINING DEVELOPMENT OPERATOR’ shall pay a Project
Development Fee towards the Cost of Advertisement, Bid Process Management and
other Incidental Expenditure incurred for the selection of ‘MINING DEVELOPMENT
OPERATOR’ by APMDC.
(b) The ‘MINING DEVELOPMENT OPERATOR’ shall enter into an Agreement with
APMDC as per the applicable norms in PPP Mode for the proposed Project at its
cost and expense.
(c) The ‘MINING DEVELOPMENT OPERATOR’ will undertake Mining and Setting-up of
Mineral Separation Plants & Value Added Industries on behalf of APMDC under the
Mining Lease of APMDC.
(d) In addition to (a) above, the ‘MINING DEVELOPMENT OPERATOR’ shall pay an
‘Annual Consideration’ or ‘Upfront Front Consideration’ to APMDC, as will be
specified in RFP Document, an amount greater in value than the ‘Dead Rent’ /
‘Minimum Guaranteed Sum’ as per the applicable norms of Mining Act.
(e) All the required fees, costs and expenses towards obtaining Mining Leases by
APMDC for Heavy Minerals shall be borne by the ‘MINING DEVELOPMENT
OPERATOR’.
(f) All the Applicable Permits/Sanctions/Clearances etc., under relevant laws will be
secured by APMDC and the cost of securing all such Permits/Sanctions/Clearances
shall be borne by the ‘MINING DEVELOPMENT OPERATOR’. For any delay or
refusal in granting the permissions or sanctions by the relevant authorities, APMDC
shall not be responsible nor is it liable for any compensation or reimbursement of
costs and expenses.
(g) A minimum of 0.5% of the annual revenue from the Project shall be spent by
‘MINING DEVELOPMENT OPERATOR’ on community and social assistance and
development training, environmental care and related matters.
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
(h) The ‘MINING DEVELOPMENT OPERATOR’ shall bear all the costs for preparation
of Mining Plans, Aforestation & Green Belt Development, NPV payable to Forest
Department and Cost of Rehabilitations, if any.
(i) ‘MINING DEVELOPMENT OPERATOR’ shall have to make its own arrangements
for power supply and shall go for captive source without depending on government
source.
(j) All the Laws and Rules relevant to setting up the plants, operation and marketing
including the Mines and Minerals (Development & Regulation) Act 1957 and the MC
Rules 1960, and The Andhra Pradesh (Mineral Rights) Tax Act, 1975 (A.P. Act 14 of
1975) and The Andhra Pradesh (Andhra Area) District Boards Act, 1920 shall apply.
NOTE:
(a)
(b)
(c)
(d)
(e)
Please super-scribe on the Envelop / Cover of your EOI with the “Name of the
Project” and “Location Interested” with “Area Code” mentioned in Annexure-II.
RFP documents will be issued to the short-listed EOIs at a cost.
Bid process criteria for RFP document will be issued along with RFP document.
Prospective Bidders should furnish a Demand Draft for Rs.5,000/- (Nonrefundable) drawn in favour of ‘The Andhra Pradesh Mineral Development
Corporation Ltd.’ payable at Hyderabad, along with each EOI Document for each
location while submitting, towards the cost of EOI Document & EOI Processing
Fee.
The last date for the submission of EOI Documents is 05.05.2010 by 3.00 P.M.
Sd./Vice Chairman & Managing Director
APMDC Ltd.
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
ANNEXURE – I
BRIEF NOTE ON OPERATION OF HEAVY MINERAL BEACH SAND MINES AND SETTING-UP OF
MINERAL SEPARATION PLANTS & VALUE ADDED INDUSTRIES
India has a vast coast line of about 6000 Kms covering Gujarat, Maharasta, Goa, Karnataka
and Kerala, Tamilanadu, Pondicherry, Andhra Pradesh, Orissa and West Bengal. Andhra
Pradesh a littoral state on the Eastern sea boards of India has a 982 Km long shoreline. It is the
second largest coastal state in the Country. Accumulation of Beach places deposits of various
sizes, grade, tonnage, nature and character occurs all along the coast.
Large deposits of Beach Sand, a naturally occurring sand on the sea coast, contains
commercially valuable mineral ores, inter-alia, Garnet, Illuminite, Rutile, Leucoxene, Zircon,
Sillimanite and traces of Monozite. Among these minerals monazite is radioactive due to the
presence of Thorium and Uranium Minerals and it does not post any threat because it exists
with in the permissible limits. The sector mainly confines to the production of minerals other
than monazite.
Garnet, on abrasive material, can be used in sand blasting, water jet cutting and water
treatment. It also finds application in grinding wheels. Ilmenite, Rutile and Leucoxene are
mineral ores used to manufacture of Synthetic Rutile (SR), titanium dioxide (Tio2) pigment,
titanium sponge, titanium tetrachloride and titanium metal. These are the value added products
of Ilmenite, having extensive industrial applications. For example titanium metal is a rare and
light metal used in aircrafts, space shuttles, medical appliances and in aesthetic constructions.
Zirconium is used in manufacture of coolant tubes for atomic reactors. Sillimanite is used in
Industrial refractory materials.
In view of the above, the A.P.Mineral Development Corporation Ltd., has filed applications for
grant of Mining Leases for Heavy Mineral Beach Sands in Visakhapatnam, East Godavari,
West Godavari and Krishna Districts in Andhra Pradesh and proposes Operation of the Heavy
Mineral Beach Sand Mines and Setting-up of Mineral Separation Plants & Value Added
Industries on Joint Venture basis with Private Partners.
Two Companies have commenced ‘Operation of Mines’ for HMBS already and both these
Companies commenced Operations of ‘Mineral Separation Plants’ in Srikakulam District.
Another Two companies signed JV Agreements with APMDC for the Operations of HMBS
Mines and Setting-up of Mineral Separation Plants & Value Addition Industries in Srikakulam
District.
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EOI Document for Operation of HMBS Mines and Setting-up of ‘Mineral Separation Plants’ & ‘Value Added Industries’
APMDC
ANNEXURE – II
PROPOSED AREAS FOR OPERATION OF HEAVY MINERAL BEACH SANDS MINES AND
SETTING-UP OF MINERAL SEPARATION PLANTS & VALUE ADDED INDUSTRIES IN ‘PPP’ MODE
S.No.
1
2
3
Mining
Material
Heavy
Mineral
Beach
Sand
Heavy
Mineral
Beach
Sand
Heavy
Mineral
Beach
Sand
4
Heavy
Mineral
Beach
Sand
5
Heavy
Mineral
Beach
Sand
Villages
Mandal
District
Palakayathippa,
Peddapatnam &
Manginapudi etc.
Kodur,
Machilipatnam,
Bantumilli &
Nagayalanka
Mogalthuru &
Narsapur
Krishna
K.P. Palem,
Nali Creek &
Vemuladeevi etc.
Kandikuppa,
Kothapalem,
Pallipalem &
Komaragiripatnam
etc.
Kothapeta,
Uppada,
Thondangi,
Mulapeta &
Nemam etc.
Pentakota,
Rajayyapeta &
Tinarla etc.
Area in
Hectares
31,800.00
Area Code
West
Godavari
4,375.00
AP/HMBS/
WGD-1
Tallarevu,
I. Polavaram,
Katrenikona,
Uppulaguptham,
Allavaram,
Mamidikuduru &
Malkipuram
Tuni,
Kothapalem &
Kakinada
East
Godavari
11,563.00
AP/HMBS/
WGD-2
East
Godavari
6,250.00
AP/HMBS/
EGD-1
Payakaraopet,
Nakkapalli &
Yelamanchili
Visakhap
atnam
13,750.00
AP/HMBS/
VD-1
AP/HMBS/
KD-1
NOTE: Please super-scribe on the Envelop / Cover of your EOI with the “Name of the
Project” and “Location Interested” with “Area Code” mentioned above.
*****
10