Comments
SAIL’s Bhilai Steel Plant (BSP) will soon be spared some of the worry over raw material uncertainty. The Chhattisgarh State government and the Centre plan to allocate an iron ore block, with estimated deposits of around 80 million tonnes, for BSP’s captive use. BSP, which needs 9.5 million tonnes of iron ore a year, is facing the dual problem of iron ore security — with dwindling reserves at its Dalli-Rajhara mine in Chattisgarh — and the lack of progress in developing the Rowghat deposits in the State.
According to SAIL sources, the proposed allocation within the unexplored Eklama iron ore complex area will help BSP tide over the problem for a few years before the Rowghat asset can be made operational.
The Eklama complex is expected to yield high-grade hematitic iron ore. Geological studies have discovered 39 ore occurrences with total probable reserves of 200 mt and of a grade containing 65 per cent iron.
“This may not be a substitute for the delayed Rowghat project. But it will bridge the crucial time gap between complete exhaustion of Dalli-Rajhara reserves and production at Rowghat,” said a Steel Ministry source. Rowghat remains a non-starter because of Naxalite opposition.
The 14 mtpa Rowghat (deposit-F, located in the Malta reserve forest area of Kanker and Bastar districts), under the previous plan, was to cost Rs 2,500 crore. The plan was to begin open cast mine production some time in 2015, around the time when the Dalli-Rajhara area would have been mined out.
Last week SAIL signed an MoU with Chhattisgarh Mineral Development Corporation Ltd (CMDC) for joint development of the Eklama iron ore deposit (in Kabirdham district), nearly 85 km from Bhilai. A joint venture between CMDC and SAIL is to be formed for the purpose.
SAIL has also undertaken to carry out developmental and welfare activities for the neighbouring areas of Kabirdham and Rajnandgaon districts. For the proposed Rs 3,000-crore iron ore mining project, SAIL will have to invest in 65 km of railway infrastructure connecting the deposit area with the Howrah-Mumbai main line. SAIL will set up ore processing, beneficiation and pellet plants and construct a road between Sahaspur-Lohara and Eklama.
jayanta.mallick@thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.