State-run steel maker Rashtriya Ispat Nigam (RINL) is looking at swapping two coal blocks in Jharkhand with other such reserves, citing difficulties in developing the mines to meet its growing raw material needs.
Also, the firm is considering forming joint ventures with state mineral entities to mine iron ore and feed its expanding production line.
"RINL has proposed to surrender Mahal and Tenughat-Jhirki coal blocks in Jharkhand as these mines are very difficult to mine. It has sought two new blocks in the region in lieu of these blocks," a top Steel Ministry official told PTI.
The company has already sent the proposal to the Steel Ministry which is expected to forward the request to the Coal Ministry for replacing the mines with other such rich reserves. While Mahal has an estimated coal reserve of about 1,100 million tonnes (MT), Tenughat-Jhirki blocks contain about 215 MT of coking coal.
Also, "RINL is actively looking to form JVs with mining firms of different states for iron ore as the company lacks in captive reserves of the raw material," he added.
The firm's appetite for vital raw materials, iron ore and coking coal is set to surge by the next year as RINL would commission the expanded production line at its Vishakhapatnam facility.
RINL is undertaking about Rs 12,000-crore project to almost double its annual production capacity to about 6 MT by March 2011, for which trial runs are expected start later this year.
