India-based steelmaker Steel Authority of India Ltd (SAIL) has decided to double its output of iron ore to 38 million mt by the end of the next Indian fiscal year to meet increasing demand for raw material, according to media sources.
SAIL intends to double ore production by a three-pronged strategy. Firstly, constraints in production at its existing mines will be addressed through investments in heavy earth-moving equipment. Secondly, the capacity of existing mines at Kiriburu, Meghataburu, Bolani and Gua will be expanded. Finally, the company will open new mines at Chiria in Jharkhand and at Taldih in Chhattisgarh.
After expansion, the capacity of the Kiriburu mine will rise to 5.5 million mt from 4.2 million mt, the capacity of the Meghataburu mine will increase to 6.5 million mt from 4.3 million mt, and the capacity of the Bolani mine will rise to 10 million mt from 4.1 million mt. The capacity of the Gua mines will be increased to 10 million mt from 2.4 million mt, with beneficiation and pelletizing units also being built.
SAIL chairman C.S. Verma had previously stated that the company would invest INR 102.6 billion ($2.18 billion) to develop the mines in order to meet demand for iron ore in the future