CAG rap prompts SAIL to turn fines into pellets

After the Comptroller and Auditor General of India (CAG) reprimanded the state-run Steel Authority of India Ltd (SAIL) for stockpiling iron ore reserves at its Gua mines in Jharkhand, which led to a loss of Rs 1,507 crore, the public sector giant is planning to consume these iron ore fines as pellets.

In its report, the CAG had not only criticised the loss of revenue, but said that the stockpile would lead to environmental hazards in Jharkhand. Besides, it went against economic logic as Gua is located near both Bokaro and Durgapur plants, which chiefly depend on other mines in the region for the mineral, the CAG report said.

"Out of the average production of 1.78 million tonnes per annum during 2000-01 to 2004-05, only 0.71 million tonnes, which constitutes a mere 40 per cent, was dispatched and the balance 1.07 million tonnes was being added every year to the accumulated stock of 12.16 million tonnes dumped in the stock yard," it added.

A company official from SAIL said that the board had recently approved a proposal for the conversion of fines into pellets for internal consumption.

"The feasibility study for the conversion of these fines into pellets is on. Pellets will be used with sinters to ease the iron ore burden. This will lead to the utilisation of low grade fines and the conservation of environment simultaneously," he added.

When asked about the plant where this conversion is planned, the official said that it would be decided in due course.