 "Tata Steel looks at e-auction to secure iron ore")
Tata Steel has commenced buying of iron ore from OMC. At the latest round of e-auctions, the steel firm has procured more than 90 per cent of the high-grade ore offered by OMC from its flagship Daitari mines. OMC had offered 50,000 tonnes of iron ore fines with iron content of 62-64 per cent.
“We are looking to participate at OMC’s e-auctions as and when required. Iron ore supplies need to be firmed up as Tata Steel aims to reach the rated capacity of three MT (metric tonnes),” said a company source.
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OMC has been struggling to find takers for its iron ore because of high floor price. But with Tata Steel's participation, its iron ore off-take is expected to go up. The next round of e-auctions of iron ore by OMC is likely to be held towards the end of August.
Tata Steel has no exclusive iron ore mine for the Kalinganagar project. Iron ore requirement for the first phase of the steel plant is pegged at five million tonnes per year.
To firm up raw material supplies, Tata Steel has drawn up a plan to invest Rs 2,300 crore on scaling up capacity of its captive mine, Khandabandh's, iron ore deposits to five million tonne per annum (MTPA). But lack of statutory clearances has impeded the progress of the mine’s expansion.
Khandabandh is slated to meet the requirement of the Kalinganagar project for three to four years. As Tata looks to expand steel capacity beyond three MTPA, it needs more mines to feed the plant.
Tata Steel has invested Rs 25,000 crore on the first phase of the Kalinganagar steel project. The company has been allotted 3,470 acres. The plant would roll out high-end flat steel products.