SAIL has appointed ACB Mining Private Ltd as developer and operator for its 14 mtpa iron ore block at Rowghat in Chhattisgarh, an official of the state-run steelmaker said.
SAIL's Bhilai Steel Plant has signed an agreement with ACB Mining Private Ltd for the development and operation of Rowghat iron ore mines, the official, who did not wish to be named, said.
Under the agreement signed on September 25, ACB Mining will develop the iron ore mines for a period of 30 years and commercial production would begin from 2022.
The Rowghat iron-ore project has been a crucial and important for Bhilai Steel Plant in view of iron ore security for the plant, as ore in existing mines would be exhausted in another 4 to 5 years period, the official said.
SAIL had perceived the Rowghat project 25 years back as future source for iron ore for Bhilai Steel Plant. However, the progress was hampered for some time for want of clearances from department of environment and forests. The steelmaker received final clearances for the project in 2009.
The company is also investing Rs 1,142 crore to create logistics infrastructure such as building Rail Line network from Dalli-Rajhara to Rowghat for transporting iron ore and the work would be completed by 2022.
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