SAIL plans to raise iron ore output capacity to 43 MT by FY16

Company is in the process of investing Rs 70,000 crore on its mines and steel plants

In sync with the expansion of its steel-making capacity, state-owned SAIL plans to raise the iron ore production capacity to 43 million tonne per annum by 2015-16 from the existing 28 mtpa.

The country's largest steel maker, which is also the second-largest iron ore producer after NMDC, also believes that with the ongoing and proposed expansion at the mines, it would be able to achieve 58 mtpa iron ore production by 2020.

SAIL plans to raise production capacity of its Kiriburu mines to 5.5 mtpa from 4.25 mtpa now. Plans are also there to jack up production capacity at Meghataburu and Bolani mines to 6.5 mtpa and 10 mtpa, from 4.3 mtpa and 4.1 mtpa respectively.

The Steel Authority of India Ltd also plans to raise its Gua mine's production capacity to 10 mtpa from 2.4 mtpa now. It also proposes to raise capacity of its Barsua, Kalta and Taldih mines to 6.5 mtpa from 3.3 mtpa.

The major boost in iron ore production might come from the Rowghat mine, where the company plans to produce 12 mtpa iron ore. SAIL has already received all statutory clearances for the mine to develop.

However, much work could not be done at the ground level as a result of Maoists' threats.

SAIL also plans to raise the iron ore production capacity at its Chiria mine to 7.45 mtpa from 1.5 mtpa now.

The company does get all its iron ore needs from captive sources. It generally takes 1.6 tonne iron ore to produce one tonne of steel.

SAIL is in the process of investing Rs 70,000 crore on its mines and steel plants.