SAIL lines up big plans for mines

The Centre for Engineering and Technology (CET) has advised Steel Authority of India Limited (SAIL) to take up the expansion of its Chiriya mines in Jharkhand in three phases.

SAIL planned to invest Rs 3000 crore to raise the production of iron ore from Chiriya. The mines were owned by Indian Iron and Steel Company (IISCO), a sick subsidiary of SAIL awaiting revival.

SAIL had engaged CET to prepare a preliminary report on the expansion project. "CET recently submitted a preliminary report to SAIL suggesting the expansion programme should take in three phases," sources said.

CET said the expansion programme was viable. "CET said in the first stage the mines should be expanded to raise production to 10 million tons per annum (mntpa). In the second phase, production should be increased to 15 mntpa and in the final stage to 20 mntpa," the source added.

Phase-wise expansion will deliver better results and allow more scientific and methodical exploration. SAIL was now planning to engage a second consultant to prepare the detailed project report (DPR) for the expansion.

"The search is on to rope in a consultant to prepare the DRP. SAIL is in touch with consultants for the purpose and will take a decision in this regard soon," officials said.

IISCO executive director T K Dutta Ray refused to discuss the expansion plans. "We cannot comment on this as it is an internal matter of the company," he said.

A decision on the mines was expected soon. A team of senior SAIL and IISCO officials has met the Jharkhand chief minister Arjun Munda to seek the state government's help in implementing the expansion project at Chirirya.

"Munda requested SAIL to furnish the government with a report on the proposed expansion programme and promised state government help," sources said.

SAIL will also invest Rs 60 crore at its other mines at Kiriburu and Meghataburu in the current fiscal to purchase new equipment and machinery. The new hardware will lead to higher iron ore production.

In the last fiscal, the mines had done extremely well in terms of production after SAIL invested nearly Rs 30 crore on equipment at Meghataburu and Kiriburu.

Iron ore from Meghataburu and Kiriburu was used for steel production primarily at the Bokaro Steel Plant. Apart from Bokaro, some iron ore was also used at Rourkela Steel Plant, Orissa, and Durgapur Steel Plant in West Bengal.