The delay in reopening the Gua mines has taken a toll on SAIL’s monthly iron ore output.
Production data for iron ore mines in the first two months of the current fiscal show lower than targeted figures.
The SAIL mines of Kiriburu, Meghahatuburu, Bolani, Barsua, Kalta, and Monoharpur produced a total of 1.08 million tonnes (mt) of iron ore in April, against a target of 1.325 mt.
In May, the output was 1.213 mt while the target was 1.436 mt.
SAIL’s iron ore mines at Gua, in Jharkhand, are yet to reopen after a year of closure.
The mines were closed on June 15 last year, in the absence of both environment and forest clearances.
Biodiversity plan
The Gua mines, among the oldest mechanised facilities of SAIL, produce 2.4 million tonnes a year. The mines employ around 550 regular workers and about 500 contract labours.
A senior Jharkand Government official told Business Line that the State was given to understand that the submission of a comprehensive wildlife and biodiversity management plan for the Saranda forest region as also Gua, located within the area, to the Union Ministry of Forests and Environment would be enough to sort out problem.
SAIL is seriously considering its options for outsourcing mine development and operation for some of its iron-ore assets.
According to sources, it has decided to opt for contract mining for two of its coal assets — Ramnagar in West Bengal and Tasera in Jharkhand.
Contract mining
For the proposed two-phase and 15 mtpa Chiria mines project in Jharkhand, SAIL may take a hard look at the comparative advantages of in-house mining vis-à-vis contract mining.
The consultant, Hatch Associates of Australia, has recently submitted its draft detailed project execution report.
“The SAIL Board is likely to take a view on the subject in the next quarter,” a SAIL source said. Four Chiria leases — Dhobil, Ajitaburu, Sukri-Latur and Budhaburu — would be part of the over-Rs 5,000-crore project, which has received stage I MoEF clearance.
The Rowghat iron ore project in Chhattisgarh may also be handed over to a mine developer and operator through a global tender.