SAIL scales up iron ore production

Production of iron ore at the Steel Authority of India Ltd (SAIL) mines in Jharkhand has risen sharply despite the Naxalite menace and poor law and order situation in the state.

The success has led to fresh interest in the state's mining sector. In response, the Jharkhand government may grant some fresh incentives to attract potential mining sector investors. Prices of iron ore in domestic and global market have shot up and were still rising.

SAIL mines produced 9.26 million tons of iron ore, including lumps and fines, during the first three quarters of this fiscal, recording a growth of 7.9 per cent over the previous best performance.

Production at the Kiruburu mines in Jharkhand was 2.64 million tons while the Bolani mine in adjoining Orissa was 2.38 million tons of iron ore in the first three quarters of 2003-04. This was the highest output reported by these mines since inception.

Bolani iron ore mines created an all time monthly production record by lifting 0.34 million tons of iron ore in December 2003. The Kiruburu mines produced 2.55 million tons.

SAIL's Kalta mines produced 0.83 million tons of iron ore in the third quarter of the current fiscal year. Similarly, SAIL's Barsuan mines reported a rise in production of about 19 per cent during the period.

Sources in the SAIL raw materials division (RMD) said iron ore prices and freight charges across the globe had shot up. Iron ore in the global market rose from $28 per ton in February last to above $120 per ton at present.

The price of coke has gone up from $120 per ton to $465 per ton in the past few months. Ocean freight charges for iron ore had escalated from $12 per ton to $45 per ton.

Bokaro Steel Plant of SAIL and Tata Steel were the two major plants which were self sufficient in terms of raw materials.

SAIL had faced a crisis recently following abduction of some managers by the outlawed Maoist Communist Centre (MCC) terrorists for ransom.