Tata Steel to start operations at chromite mines soon

Tata Steel will soon start operation of its Sukinda chromite mine in Jajpur district following the third renewal of the mining lease by the state government recently.

"Now all our mines are operating. In the next few days hopefully, we will start the operation (of chrome mine). The state government has been supportive", TV Narendran, MD, Tata Steel, told media persons on the sidelines of an event here.

The state steel and mines department has issued the order for lease renewal pursuant to the recommendations of a high-level committee chaired by the development commissioner.Since the Odisha High Court (HC) had directed to dispose off the matter by November 16, the committee had accordingly recommended the renewal of the mining lease over an area of 406 hectares.

The tenure of the renewal will be for 20 years, subject to fulfilment of certain terms and conditions.

The lease, originally granted in 1973, has been renewed twice with the last lease term expiring in January 2013.

Tata Steel's bid for renewal of the chromite mines was challenged by ferro-chrome maker Indian Metals & Ferro Alloys Ltd (IMFA) and others before the HC. But the HC had dismissed the petitions, saying there was no merit in them.

In its judgement dated September 26 this year, the court held that the state government was free to proceed with the steel maker's application for third renewal.

The renewal of the chromite mine is expected to come to the rescue of Tata Steel's Baminpal ferroalloys plant, which was shut down in August because of want of chrome ore, apart from ensuing raw material security for the company's upcoming ferrochrome units at Gopalpur. Total chrome ore requirement for the two plants proposed there by the steel firm has been projected at 18.42 million tonne for 30 years against a reserve of 19.16 million tonne.

Narendran said, "the expenditure at phase -1 of Kalinga Nagar steel project is about Rs 25000 crore and we are waiting for the consent to operate as there are some technicalities between us, state and the Centre which we are sorting out. Once we have the permission we will start the production in March- April with capacity of 3 million tonne in the first phase".

On the ordinance for auction of mines of iron ore and other minerals, he said, "We will go through the auctions when the time comes. We are operating all our mines for last 80-90 years. It is fair that we allowed to run them for another 10-15 years".