| Steel Authority of India (SAIL) will be investing between Rs 4,000 crore and Rs 5,000 crore to increase production from existing mines through pelletisation of lumps and opening up new mines and blocks.
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| The PSU has also engaged Mecon to prepare a detailed project report (DPR) for Chiria mines. T K Guharoy deputy general manager- projects, SAIL, said the steel major would engage an international consultant to study the DPR once completed.
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| Currently, SAIL produces 70 per cent iron ore fines and 30 per cent lumps. To increase production, the company will float tenders for technology support in converting 50 per cent of the lumps into pellets from where further extraction of fines is possible.
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| At Bolani mines, production is expected to increase to five million tonne per annum (mntpa) by 2012 from the present three million tonne.
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| Production at Barsua mines is also expected to increase to 4.25 mntpa per annum from two million tonne.
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| However, this would be done through development of new mine at Taldih and from two million tonne pellets.
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| The Gua ore mines would also get an additional two million tonnes of pellets that will be used for extracting fines.
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| SAIL is contemplating setting up pelletisation plant centrally at either Kiriburu iron ore mines, Meghahatburu or Bolani.
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| The company will also increase production by opening new mines or blocks. Rowghat, with a starting output capacity of 10 mntpa, Chiria with seven mntpa, Thakurai with two mntpa and Taldih with a capacity of 4.25 mntpa, are expected to contribute substantially to the company’s total production. |
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