Sunday, May 31, 2009

Jindal Granted Orissa Prospecting Licence

The government in the Indian state of Orissa has recommended the prospecting license for Horomoto iron ore mines in favor of Jindal Stainless Limited, which is setting up a 1.6 million tonnes per annum integrated stainless steel project at Kalinganagar in Jajpur district at an investment of more than INR 10,000 crore.

The recommendation has been sent to the Union ministry of mines along with comments from the publicly-owned Steel Authority of India Limited, which held the lease of the property before it was notified for the grant of a prospecting licence (PL) in 1991.

Though JSL had applied for a PL for 1052 hectares, the recommendation is for 892 hectares. The total area of the Horomoto iron ore mines is 1700 to 1800 hectares and out of it, 1000 hectares are known to have good reserves.

Meanwhile, JSL has spent about INR 4600 crore on its stainless steel plant at Kalinga Nagar and committed another INR 3500 crore of investment in the project. The work on the stainless steel melting shop, cold rolling mill, hot rolling mill are in progress and the project is scheduled to go on stream in mid 2010.

Source: Steel Guru/Business Standard

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