The Karampada deposit will be able to meet part of the iron ore needs of its proposed 12-mtpa greenfield steel project being set up in Jharkhand by the company.
"We are very pleased that the Government of India and Jharkhand have allocated the mining lease in Karampada to the company and reaffirm our commitment to fast track the construction of our new steel plant in the region," ArcelorMittal CFO and member of the Group's Management Board Aditya Mittal said.
The company had earlier announced that it would develop a 12-mtpa green field steel plant in the state at an investment of over $10 billion.
The company's iron ore requirement for the first 30 years of operation has been pegged at 600 MT, a statement issued by the company said.
More From This Section
Earlier, the steel giant had applied for Karampada mines and had requested the government for necessary support and permission for developing the infrastructure in the area.
The Karampada iron ore deposit is located in West Singhbhum district of Jharkhand with an estimated reserve of 65 million tonnes.
"ArcelorMittal is committed to ensure this site is developed in accordance with its worldwide Corporate Responsibility strategy which focuses on the socio-economic and cultural development of the communities in which it operates," Mittal said.