SAIL's expansion may jeopardise

Long-term expansion plans of Steel Authority of India(SAIL) would be seriously affected if the PSU does not get valuable iron ore reserves from Chiria Mines in Jharkhand, a top official of the steel giant said.      "SAIL's very existence will be at stake sans Chiria.

The present iron ore reserves under SAIL's possession cannot meet its future requirements given the massive expansion plans it has in the offing," SAIL's Raw Material Division Executive Director Kiran Kapoor told PTI.Country's leading steel producer SAIL plans to augment its hot metal production to 26.13 million tons (MT) by 2010 and thereafter to 60 MT by 2020.For achieving 26.13 MT production target, SAIL will need around 42 MT of iron ore, whereas for 60 MT the requirement is pegged at about 100 MT.

SAIL has already apprised the Centre that its total iron ore requirement for a span of 50 years will be over 3 billion tons.At present, total iron ore available with SAIL from its mines in Orissa and Jharkhand is approximately 26.33 MT. In view of its 2010 expansion plan, the steel major has envisaged capacity expansion of its mines in Jharkhand and Orissa.

While production of iron ore from Gua, Kiriburu and Meghataburu mines in Jharkhand will be scaled up to 10, 5.5 and 6 MT respectively by 2010, that of Bolani in Orissa will go up to 10 MT.

RMD's chief of communication A K Singh, however, feared that even the augmentation of mining capacity will not help SAIL achieve its long-term expansion plans unless it got the possession of iron ore reserves from Chiria Mines.