SAIL to invest Rs 255 cr to expand capacity of Bolani mines

The capacity is proposed to be augmented to 10 million tonne per annum by 2020 from five mtpa

Maharatna steel PSU Steel Authority of India Ltd (SAIL) has committed to an investment of Rs 255 crore for modernisation and capacity expansion of its flagship Bolani iron ore mines in Odisha.

The capacity of Bolani mines is proposed to be augmented to 10 million tonne per annum (mtpa) by 2020 from five mtpa and this is part of SAIL's larger plan to secure raw material supplies from its captive mines to cater to its steel capacity expansion.

The current iron ore requirement of SAIL owned steel units is 29.15 mtpa but this is expected to shoot up to 39 mtpa as the steel maker eyes hot metal output of 23.46 mtpa. Though the original plan was to achieve this production level by 2020, it may get delayed as a tepid steel market and obtaining regulatory clearances would weigh on.

Bolani mines forms the crucial captive operations of SAIL as it feeds iron ore to the plants at Rourkela, Durgapur, Bokaro and Burnpur.

"Modernisation (of Bolani mines) includes new beneficiation plant, higher capacity heavy earth moving equipment, loading capacity expansion. SAIL is introducing state of the art technology for eco-friendly mining", said a source at SAIL.

Apart from Bolani, SAIL's other two captive mines in Odisha- Barsuan and Kalta are also undergoing capacity expansion and modernisation. Post expansion, the rated capacity of Barsuan and Kalta mines would go up to four mtpa and 2.3 mtpa respectively.

The raw material division, the mining unit of SAIL, operates seven captive iron ore mines and three flux mines concentrated in the eastern region. In addition to Odisha, SAIL runs captive mines at Dalli-Rajhara, Nandini, and Hirri in Chhattisgarh, which is under its Bhilai Steel Plant.

Under its CSR (corporate social responsibility) activities, SAIL has spent Rs 22 crore in the last five years on developmental work in villages in Odisha. Of this, Rs 15 crore has been spent on villages located at the periphery of Bolani mines, enabling villagers to get access to health care facilities, education facilities, pucca road, potable drinking water, good sanitation and electricity.