The Government of Andhra Pradesh has allocated iron ore mines to RINL.

The Andhra Pradesh Government has allocated three mines with a total 5,342 ha land area to RINL for mining. The mines include, 2,500 ha at Guduru in Warangal and same 2, 500 ha at Bayyaram in Khammam and 342 ha located at Bheemadevarapalli in Karimnagar district. However, RINL will commence the mining activity once it will get the clearances from the Union Mining Ministry.

RINL's Visakhapatnam Steel Plant (VSP) sought the mines for setting up an integrated steel plant and an iron ore benefication unit. The proposed steel plant and benefication unit will be established at Bayyaram.

VSP is also raising its capacity of finished steel production from 3.5 million tpa to 10 million tpa. In the phase I, the capacity will be increased to 5.2 million tpa, with an investment of Rs 2,500 crore. Phase II will entail Rs 6,800 crore investment and raise the capacity to 6.8 million tpa by 2012. Phase III entailing Rs 10,000 crore, will further enhance the capacity to 10 million tpa and will complete by 2018. The scope of also envisages setting up of new wire rod mill, a heavy structural wing and a compact strip mill to produce flat products of international standards.