Tata Steel has received mineral concession approvals from the Ministry of Mines for two large mines - one for iron ore in Jharkhand and the other for chrome ore in Manipur.
Both concessions are prospecting licences (PLs) at this stage and the company would have to apply to the Ministry for mining leases after completion of prospecting work and outlining estimated reserves.
The concession for Jharkhand mine was granted on April 16 and has a total area of 1,808 hectare. The chromite concession in Manipur has a total area of 55.445 sq km. and was granted on April 24.
"Getting a prospecting licence does not necessarily mean that we have won the mine now,” said a company official “even at this point of time, these can be awarded to others, as well. No doubt, since PLs have been awarded to us, we get little priority. We have to submit the prospective reserves in those mines to the Ministry,"
Tata Steel currently sources 100 per cent of its iron ore requirement from its existing captive mines in Jharkhand. However, industry sources pointed out that the Jharkhand iron ore-prospecting lease holds promise of one billion tonnes of high-grade iron ore.
The company is expanding its Jamshedpur plant capacity in Jharkhand to 7 million tons from 5 million tons. Subsequently, it would be raised to 10 mtpa by 2010.
"The iron from the Jharkhand mine, if allocated to us, would be used to feed the brownfield expansions of the firm," he said.
Source: Economic Times
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