SAIL gains on plans to start production from Chiria mines

Steel Authority of India (SAIL), has gained 1% at Rs 110, after it announced its plans to start production from Chiria mines— its future raw material lifeline located in the Naxal-prone deep-south Jharkhand, in 2014. The public-sector steel major is set to finalise an investment roadmap for the project after the completion of a detailed project report this month.

SAIL is fully dependent on Chiria for all our future expansions, according its chairman, C S Verma. "The mine will be our lifeline as the reserves in the other mines we operate are depleting. Chiria mine will become operational in around three years with a likely investment of around Rs 3,500 crore," he told Business Standard.

Meanwhile, the company has also signed a Memorandum of Understandings (MoU) with the Rajasthan government to ensure supply of Manganese Ore required for manufacture of ferro alloys in its various units. The move is meant to help it meet the raw material requirement for its plants located across the country.

The stock opened at Rs 109 and touched the day's high at Rs 111. Around 45,000 shares have exchanged hands on the BSE counter so far.