ArcelorMittal's holding firm starts ops at Odisha's Thakureni iron ore mine

ArcelorMittal India Private Limited (AMIPL), the holding company of ArcelorMittal on Thursday announced that it has commenced mining operations at its Thakurani iron ore mine in the district of Keonjhar, Odisha.

The Thakurani block, with estimated reserves of around 179 million tonne, will make a valuable contribution to AM/NS India’s long-term raw material requirements.

The block has an annual production capacity of 5.5 million tonne, which can be scaled up to 8 million tonne and its mineral reserves are expected to increase once detailed exploration is complete.

AMIPL subsequently signed a Mine Development and Production agreement, executed a lease deed with the state government and has since acquired all valid rights, approvals, clearances and licenses.

In February 2020, AMIPL was selected as the preferred bidder for the Thakurani iron ore mine license following an auction process conducted by the Odisha state government, in which AMIPL agreed to pay a 107.55% per cent premium per tonne, as well as other royalty and duties, ensuring strong revenue contribution to the state of Odisha.

“The ore produced at Thakurani will feed AM/NS India’s steel manufacturing facilities and support our long-term ambition to significantly grow our production capacity in India with a secure, integrated supply chain. Over time, our plan is to connect Thakurani to our plants in Odisha through a slurry pipeline, which ensures both a cost effective and environmentally friendly mode of mineral logistics. We recognise our responsibility to the local communities around the mine and are committed to safe, sustainable operations to earn their trust,” Dilip Oommen, chief executive officer at AM/NS India was quoted as saying.

AM/NS India and AMIPL are ensuring that all necessary health and safety precautions are taken at the mine site to protect people from the Covid-19 pandemic.