Web Exclusive | February 2013
SAIL to invest Rs 102 bn to raise ore mining capacity
Steel Authority of India (SAIL) aims to raise its captive iron ore mining capacity to 45 million tonne at an investment of Rs 10,284 crore.
Of the total investment, around Rs 6,500 crore has been earmarked for the company's Rowghat mines in Chhatisgarh and on the Gua mines in Jharkhand.
SAIL has decided to spend Rs 3,500 crore on Rowghat, a prized greenfield property which has faced Maoist threats but is critical to serve captive needs of its Bhilai Steel Plant.
The above plan is in line with the firm's target to increase hot metal capacity by 2015-16. By 2019-20, the firm plans to raise its iron ore mining capacity further to 56 million tonne. This, according to some reports, may enable the firm to become the country's largest iron ore miner.
The Rowghat mine is expected to produce 7 mn t of ore initially and this is slated to go up to 15 mn t. As per standard international practice for such large scale mines, the firm decided to appoint a mine developer and contractor (MDO) for those mines.