Locked in protracted wrangles to secure rights over some of the richest iron ore assets in the country, Steel Authority of India (SAIL) is planning to expand its existing mines to meet the company’s rising demand as output grows, a senior company executive said today.
The company’s current mining capacity is 26 million tonnes and it will need 43 million tonnes by the end of 2009-10, when its hot metal capacity nearly doubles to 26 million tonnes.
“We have already begun seeking statutory clearances for brownfield expansion of our mines,” the official said.
SAIL is fighting a court battle with the Jharkhand government over Chiria iron ore mines in the state.
Mining rights over Chiria, which has estimated reserves of 2 billion tonnes, will feed the company’s four integrated plants in the eastern region.
The Jharkhand government wants SAIL to share the mines with some private investors, particularly ArcelorMittal, which plans to set up a 12-million tonne plant in the state.
“We have submitted our expansion plan to the Jharkhand government. It justifies our need for Chiria reserves,” the executive said.
The company has also offered to set up a new plant of 6 to 12 million tonnes capacity in the state, besides expanding the Bokaro plant’s capacity.
Yet so far, the state government has refused to budge from its stance. Raoghat mines in Chhattisgarh are crucial for the Bhilai plant, SAIL’s biggest facility. The company is expecting environment and forest clearance from the Supreme Court.
Besides, the company plans to develop mines in Taldih and Thakurani in Orissa.
The SAIL stock today closed at Rs 152 rupees on the National Stock Exchange, up 1.5 per cent from the previous close.
