Arcelor-Mittal launches drilling in coal block for revised 3 MT steel project in Jharkhand

Downsizing project size from 12 million tones per annum (MTPA) to 6 MTPA in Jharkhand, Aecelor-Mittal, has started searching forest and private land to produce steel from 2014.

Shifting the project site from Khunti and Gumla districts to Latehar district in Jharkhand, the steel giant has started drilling operations on its allocated coal block at Seregarha, where the proposed 6 MTPA steel project will be set up.

It may be noted that the former Mittal Steel Company (now Arcelor-Mittal) had applied on October 8, 2005 to Jharkhand government for establishment of a 12 MTPA integrated steel plant with acquisition of 25,000 acres of land in suitable areas in Khunti and Gumla districts.

However, the state government delayed many years in publishing notification of the project site of the steel company (Arcelor-Mittal).

In January 2008 the notification was published, resulting in widespread agitation against land acquisition of both forest and private land of Khunti and Gumla districts.

Prospective licenses for coal and iron ore blocks were also delayed for a number of years. Whrn all hopes were failed in getting forest and private lands for the project, Arcelor-Mittal decided to shift their plant site from Khunti-Gumla to Latehar district of the state, downsizing the production rate from 12 MTPA to 6 MTPA.

The revised plan will enable Arcelor-Mittal to acquire 2,500 acres land, sources said.

According to an official of Arcelor-Mittal drilling operations of coal block would be completed by January, 2012 followed by submission of geophysical report and mining plan to the government to get mining lease.

He said that Arcelor-Mittal had also submitted application for permission to start drilling operations for the iron ore mine allocated in Karampada in West Singhbhum district.