Steel Authority of India Limited, fighting for about a decade to retain its tenuous control over Asia’s largest iron ore deposit at Chiria, has decided to go ahead with a two phased, INR 3,500 crore plan to produce more ore and set up a beneficiation plant.
The plan envisages expanding mining from a mere 1 million tonnes per annum at Dhobil to 7 million tonnes in two to three years by tapping new areas within Chiria such as Mclellan and Ajitaburu. Subsequently, output will be raised to 15 million tonnes by tapping the remaining leases such as Sukri in this forested zone.
The SAIL board has advertised for global consultants who will help it to develop the new mines and the iron ore beneficiation plant as well as a new township where a workforce numbering in thousands will be housed.
Sources said the total cost of the project would be about INR 3,500 crore. The first phase, which involves taking mining operations to 7 million tonnes per annum will itself cost more than INR 2,000 crore.
In this phase, SAIL will set up its first ore beneficiation plant.
Till now, it has only set up washeries at its mines, which do some minor beneficiations work.
With the Jharkhand government now in favour of letting SAIL continue its lease in Chiria, quick development of the area has become a necessity for the public sector steel behemoth.
Source: Steel Guru
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