IREL to Procure Seized Beach Sand Minerals Worth ₹404 Cr, Amid Legal Tussle

Indian Rare Earths (IREL) India Limited is getting ready to procure 1.40 crore tonnes of beach sand minerals seized in Tamil Nadu, with an approximate worth of ₹404.39 crore, based on a ruling of the Madras High Court. The minerals lying in godowns in Thoothukudi, Tirunelveli, and Kanniyakumari consist of 1.37 crore tonnes of raw and semi-processed sand and 3.01 lakh tonnes of processed minerals.

The court, in its February 17, 2025, order, directed the Tamil Nadu government to transfer the seized materials to IREL’s Manavalakurichi facility and recover ₹5,832 crore in lost revenue from eight private miners involved in the illegal mining case. The court also ordered a CBI probe into the scam.

The price has been tentatively fixed by a state-appointed high-level committee at ₹241 per tonne for raw and semi-processed sand, and ₹2,416 per tonne for processed minerals. The estimated total cost—₹331.52 crore for raw and semi-processed sand and ₹72.87 crore for processed minerals—includes material under a “status quo” stay by the Supreme Court.

Four miners, who reportedly hold over half the total seized stock, have obtained interim relief from the apex court, halting the transfer of their stock to IREL.

Despite the legal hurdle, Tamil Nadu’s Natural Resources department issued a government order on April 18 to implement the court’s directive. Tirunelveli Collector R. Sukumar confirmed that efforts are underway to shift the minerals from six stockyards to IREL. IREL and Atomic Minerals Directorate (AMD) experts have begun sample testing on-site.

IREL sources confirmed they are prepared to take over the minerals at the approved rate, pending final clearance of stocks covered by the status quo.

The case continues to be closely watched as the state attempts to clean up years of unchecked beach sand mining and bring accountability to the sector.