ArcelorMittal Nippon Steel starts operations at iron ore mine in Odisha

Spread over 139.165 hectares, the block has estimated resources of 98.61 million tonnes and was the first to be auctioned under the Mineral Auction Rule, 2015

ArcelorMittal Nippon Steel India (AM/NS India) said on Thursday that it has commenced operations at the Ghoraburhani- Sagasahi iron ore mine in the district of Sundargarh in Odisha.

Spread over 139.165 hectares, the block has estimated resources of around 98.61 million tonnes and was the first to be auctioned under the Mineral Auction Rule, 2015.

The captive mine is set to produce two million tonnes of high-quality iron ore in the current calendar year and production will gradually be ramped up to its rated capacity of 7.16 million tonnes per annum, the company said.

It will initially operate with direct employment of about 600 people and indirect employment of nearly 2,500 people. The iron ore will be supplied to the beneficiation plant in Dabuna from where the feed will reach the pellet plant at Paradeep.

Earlier this month, AM/NS India commissioned the second 6 million tonne pellet plant in Odisha, doubling capacity to 12 million tonnes at the Paradeep complex.

Commenting on the commencement of Sagasahi iron ore mine, Dilip Oommen, chief executive officer, AM/NS India, said that it strengthens raw material self-sufficiency efforts.

“ArcelorMittal has significant experience in operating mines that support steelmaking operations across the globe and AM/NS India will draw on the industry leading practices to apply them here,” he said.

“This is yet another step by us towards enabling Odisha to achieve the one trillion-dollar economy target it has set,” Oommen added.

Nikhil Pavan Kalyan, collector and district magistrate, Sundargarh, said, “The entry of the biggest names in manufacturing at a massive scale such as this is an encouraging sign. The government of Odisha has been very strong on its priorities, in its commitment towards industries and the country. AM/NS India has our support in this new endeavour.”

Ahead of its massive expansion, AM/NS India is strengthening its raw material security. The company has set a target of increasing its  steelmaking capacity to 30 million tonnes. It includes a 12-million tonne greenfield steel plant at Kendrapara in Odisha. At Hazira in Gujarat, the plan is to increase capacity to 18 million tonnes from a current achievable capacity of around nine million tonnes.