The lease renewal application of the company, which was stuck in the administrative tangle of the Orissa government for a long time, has reportedly been rejected by the authorities.
According to Sail sources, the increase of RSP capacity from the present 2.5 million tonne to 4.5 million tonne hinges on the opening of more iron ore blocks to meet the raw material demands of the expansion project.
Horomoto mine is crucial for the company as the development of the Sail's other mine Kiriburu-Meghahatuburu is linked to the opening of the mining at Horomoto.
Horomoto is contiguous with the Sail's already existing Kiriburu lease which has quite a good amount of iron ore deposit.
Besides, Sail's major mining establishment including water pumps and reservoir are installed in this lease, which are the life line for Kiriburu and Meghahatuburu iron ore mines.
Apart from Horomoto, the renewal of other leases like Barsua-Taldihi-Kalta (ML-130) and Barsua ML-162 are also pending with the Orissa government raising the fears of short supply of ore for the expanded capacity of RSP.
