Essar Steel received the “Consent to Establish” its Ghoraburhani-Sahasahi iron block in Odisha from the Indian Pollution Board. It was the first iron ore mine to be auctioned in the country.
Essar Steel outbid Tata Steel and Jindal Steel & Power. The block has approximately 100 million mt deposits. The mineral concession area is spread over 139.16 hectares (ha) including 20.88 ha forest land, 110.69 ha government land and the balance 7.58 ha private land. Survey of the mineral block was completed by the Geological Survey of India (GSI). The board has approved an annual mining iron ore capacity of 7.16 million mt annually.
The “Consent to Establish” is followed by the “Consent to Operate” which is subject to all the provisions in all other statutory approvals necessary from the local state and national Government of India. The order is valid for five years during which Essar Steel is required to commence mining activities.
Essar Steel, which is in insolvency proceedings and restructuring discussions, cannot develop the iron ore mine until the resolution process is completed, but it will begin the statutory approvals.