Tata Steel chrome mine gets green nod for 2.4 MTPA production

Company may take two years to reach the approved output limit

The chromite mines of Tata Steel at Sukinda under Jajpur Road mining circle has received environment clearance from the Union ministry of environment and forest (MoEF) for upgradation of production limit upto 2.4 million tonne per annum (MTPA) from existing 0.95 MTPA limit.

“The company received environment clearance to step up production earlier this month. Though Sukinda mine is now technically allowed to produce 2.4 MTPA chrome ore, it may not reach the targeted output as the approval is for run-of-mines, which contain soil wastes and impurities along with ore”, said a company official.

Till March 2013, the Sukinda mine had approval to produce about 800,000 tonne chrome ore from Indian Bureau of Mines (IBM) though it had environment clearance for 0.95 MTPA, according to the company’s mining plan submitted to the state government.  

Similarly, the current output will not rise significantly, notwithstanding the updated MoEF clearance, unless steps are expedited to start underground mining, said a company source.

“Chrome output will increase only after operationalisation of underground mining at the site. This is expected to take about two years. As of now, the clearance means output would go up marginally,” the source said.

In May 2012, the company had started preparatory work to take up underground mining at Sukinda.

Since its lease validity expired in January this year, Tata Steel has been operating the mine with deemed extension permit with the same production limit.

While allowing the mine to operate under deemed extension clause, the state mines department had directed it to restrict chromite production to the extent of its captive need. However, this order of the government being challenged by the miner, there is no restriction on output currently, said a company official.

The environment clearance is valid till the mine receives forest clearance for the mining site, which also expired along with lease validity. Currently, Tata Steel is operating the mines via a temporary working permit issued by MoEF, which is valid till January 2014. The company must get forest clearance before January to avoid invalidation of the EC.

“We hope to get all the necessary clearances before due date,” said the company official. Tata Steel has entered into conversion agreement with a couple of ferroalloy units to produce ferrochrome. Ferrochrome is used in making stainless steel. The Sukinda chromite mine covers 406 hectares area, including 106 acres of forest land. The lease period, which was valid for 20 years, expired on January 11, 2013.