Despite the confidence expressed by Steel Authority of India (Sail) of meeting its entire requirement of iron ore for producing 20 million tonnes of steel by 2011-12 internally, the company might face problems if production from the mines of Rowghat in Chattisgarh and Chiria in Jharkhand was delayed.Sources in raw materials division of Sail here said that as per the company's corporate plan, RMD mines have planned to increase production of iron ore to around 20 million tonnes by 2011-12 from 12.94 million tonnes now to meet the requirements of its steel plants in Durgapur, Bokaro and Rourkela while Bhilai group of mines would meet the need of Bhilai Steel plant.By 2011-12, the company would need 32 million tonnes of iron ore while its requirement in 2006-07 would be over 24 mt to produce nearly 15 mt of hot metal, the sources said adding it would involve an expenditure of Rs 500 crore over a period to jack up iron ore production in its various mines.RMD was in the process of developing Taldih mine in Barsua-Taldih-Kalta area through joint venture with Kudermukh iron ore company. Sail had a mining lease of 2486.39 hectares in that area where two mines were already working.Mecon was assigned the job of preparing the feasibility report for Taldih mine. RMD has also sent a proposal to Orissa government for dereservation of the forest area.But what was worrying the steel major was the inordinate delay in getting mining blocks at Rowghat in Bastar area in Chhatisgarh since the reserve at Dalli-Rajhara which currently supplied iron ore to Bhilai steel plant, would last for about six years. R P Singh, managing director of BSP said the survival of the plant, going for expansion, depended on getting the Rowghat mine.The proposal for development of Rowghat was pending for over two decades and the company was yet to get clearance for developing the mine.The only positive aspect was that the state government has recently forwarded the new report prepared by the Indian Bureau of Mines to the union environment and forest ministry.The company has to spend about Rs 1,500 crore for developing the Rowghat mine having a capacity of 14 million tonnes.The cancellation of three mining blocks of Chiria mine by the Jharkhand government was another cause of worry for Sail.Jharkhand chief minister Arjun Munda had recently said that his government would give consideration if Sail made a fresh application and if there was merit in it.Besides the three blocks, other blocks of Chiria were with Indian iron and steel company, a subsidiary of Sail.RMD sources said that to ensure availability of iron ore in the coming years, various mine development projects have been taken up, including the capacity expansion of Bolani ore mine to five million tonnes per annum.
