SAIL-BSP eyes small mines to meet raw material demand

Iron ore reserve in Bhilai Steel Plant's mines is reportedly fast depleting that has propelled the management to eye small mines

The flagship entity of the Steel Authority of India Limited (SAIL), Bhilai Steel Plant (BSP), is looking to develop and explore small mines to meet its iron-ore requirement.

The BSP, which now produces 4.6 million tonnes per annum (mtpa) of hot metal, is getting raw material from the Dalli Rajhara mines. The iron ore reserve in the mines is reportedly fast depleting that has propelled the management to eye small mines.

The state-owned steel maker had been allotted deposit-F in the Rowghat that had been endowed with high grade of iron ore. The SAIL’s reserve is spread over 2028.79 hectares in the Naxal-infested pocket straddling between Kanker and Narayanpur districts. The deposit has an estimated iron-ore reserve of 511 million tonnes.
 

Despite the insurgency, the work on Rowghat project is going on at a fast pace. But still, it would take a couple of years before SAIL-BSP start mining. The Rowghat mine had been crucial for the SAIL in general and BSP in particular that plans to enhance capacity to 7.5 mtpa.

A senior SAIL official associated with the mining operation told Business Standard that the company planned to develop Dulki mine near Dalli Rajahara. The mine contain high grade of iron ore but the reserve was limited and would last for hardly a year.

Similarly, the Mahamaya mine in the same vicinity is also in the list. The official, however, did not reveal the estimated reserve stating that it could not be ascertained as the company would be requiring the high grade of iron ore that could be identified once the digging started. “The small mines would be a breather to meet the raw material demand at the time of emergency,” the official said.

The BSP would require 14 mtpa iron ore once the modernisation and expansion programme, which is already delayed by two years, was completed.