On 22 June 2013, Kudremukh Iron Ore Company (KIOCL), signed an MoU with Andhra Pradesh Mineral Development Corporation (APMDC), and with Rashtriya Ispat Nigam (RINL), for setting up beneficiation and pellet plants in Anantapur district of Andhra Pradesh.

KIOCL is planning to invest around Rs 1,000-1,500 crore in the proposed plants. The project will be set up with an installed capacity of 1.2 million tpa.

The MoU has been signed by three companies for exploration and exploitation of iron ore in Nemalkal and Hiradahalu villages. Under the MoU, KIOCL and APMDC will set up a joint venture to carry out mining with 51 per cent and 49 per cent stakes respectively. APMDC will hold the mining lease and will carry out exploration jointly with KIOCL to establish the iron ore reserves. The pellets manufactured by KIOCL will be supplied to RINL on mutually agreeable terms.

Thirty six months is needed to begin the production of iron ore and beneficiation and pelletisation plant.