SAIL hopeful of mining in Chiria by 2012-13

Asserting that mineral rich Chiria reserves belongs to it, state-owned SAIL today said it is hopeful starting mining iron ore from Chiria reserves in Jharkhand by 2012-13 for which it has got forest clearance.

"Our plans are ready to mine iron ore from Chiria reserves in Jharkhand. We have already appointed Hatch Consultancy for a detailed project report. We hope to start production by 2012-13," SAIL Chairman C S Verma told PTI.

Earlier in the day, the Environment Ministry gave forest clearance to the Maharatna firm for mining iron ore with 13 specific conditions that include SAIL earmarking "at least 2% of the net profits" for corporate social responsibility works in the extremist-hit backward area there.

"I am very happy. Chiria Mines belong to SAIL and this nod would ensure raw material security to us," he said.

He added that SAIL is a lawful claimant of Chiria mines and the three mining leases for which the forest clearance has been granted contain 60% of the total reserves.

SAIL had sought permission for diversion of 595 hectares of land, which is 25% of the total Chiria mining area.

Chiria mines, which are home to 2 billion tonnes of rich deposits, can meet about 40% of ore requirement of the PSU for 50 years.

SAIL has undertaken an ambitious Rs 70,000-crore expansion plan to increase its capacity to 23.5 million tonnes by 2012-13 from the present 14.6 million tonnes for which it requires iron ore.

SAIL and the Jharkhand government have locked horns for more than five years now over renewal of leases in the PSU's favour.

At present, out of the six leases that SAIL has at Chiria, renewal of three -- Ajitaburu, Sukri-latur and Tatiburu -- are under dispute and two -- Dhobil and Ankua -- are under deemed extension.

The government of Jharkhand has conveyed in-principle approval on October 23, 2009  for renewal of Budhaburu (Mc-Lellan) lease of Chiria iron ore mine containing around 800 million tonnes of iron ore.

Total estimated reserves with SAIL in the leases of Chiria iron ore mines are about 1,840 million tonnes, the government had said in December 2010.