India’s second-largest coal miner Singareni Collieries Company Limited (SCCL) is planning to diversify into iron ore mining starting with a reserve in the southern Indian state of Telengana, a government official said on Tuesday, October 3.
SCCL, a company owned and operated by the Telangana government along with the government of India, has been prompted by the state government to diversify into iron ore mining, leveraging its mining expertise, the official said.
SCCL produces about 60 million ton of coal per year, second only to India’s largest coal producer Coal India Limited.
To make a beginning in iron ore mining, the Telengana government is considering handing over the Bayyaram iron ore reserves to SCCL to commence its foray into other minerals, the official said.
The Bayyaram iron ore reserves were rejected by Indian state-owned steelmaker Steel Authority of India Limited (SAIL) for being low quality and for having insufficient extractable volumes, and so the steel producer declined to consider setting up a steel mill linked to it located in Telengana.